Issue 46 for the week of December 22, 1995

The Dealmakers Issue Number 46 for the week of December 22, 1995.

My Way by Ted Kraus

Well it's getting to that time of the year when everyone starts wishing everyone else a happy and prosperous New Year and foolish writers make predications on what the future holds for all of us. Not to be left out on this great tradition (and anyway, no matter what I write, no one will remember six months from now, so I might as well give it a shot) here's my predications for '96.

On the minor points, Billy Clinton will be re-elected President, not because he's competent or that the public wants him, but because the Republicans will shoot themselves in both feet, so the lessor evil will prevail again. The stock market will drop by 15-20% and interest rates will be 1 to 1-1/2 points lower than they are today. Congress and the President will claim they will balance the budget by the year 2002, but in reality, it won't happen. We'll pull out of Bosnia after hundreds of American casualties, but we'll remain in Haiti for what reason no one knows.

OK, enough predications on the easy stuff; now here's the harder points. In late January, early February, several large national retailers will go "11;" Target will begin acquiring competing chains, and during '96, twenty-five percent of the wholesale clubs will close. Also, over the coming year there will be more retail bankruptcies than occurred in the last two (and personal bankruptcies will start to increase again). Now I know that sounds extremely fatalistic, but it's not, it's realistic. On the positive side, we'll see companies like TJ Maxx showing substantial increases in profit and comparable sales, and while we'll see the end of catalog showrooms as we know 'em, they'll be taken over by those electronic retailers that survive the year. Local hardware chains like Ace will learn how to compete and survive against the Home Depots and Lowes of the world. Those retailers that are still around will become more profitable, due to a lack of competition, thereby allowing the retailer to work on a higher margin.

We'll see three or four new concepts take over and succeed in abandoned "anchor" locations. Cap rates for purchasing centers will go up at least one point from where they are today (maybe even two) and several REITS will be liquidated.

Regional brokerage firms will develop alliances with brokers in neighboring states so they can better compete (and survive) and offer additional services. Also, there will be an increased escalation of firms developing a distinct specialty, either representing retailers, representing developers, sales or liquidation of surplus property. They will "need" this specialty to survive. The number of local "ma/pas" who are everything to everyone will continue to slip.

Regional enclosed malls will have the most difficult time of their "life." Why go to the Gap in the mall when you can go to your local, more convenient strip center for the same Gap product?

There will be an increased demand for small shop space, more so than we've seen in years. The demand will come because of the enormous base of middle management personnel that are being laid off during our nation's ongoing downsizing, and many of these people will decide to start their own businesses. While most will fail, a decent number will succeed and prosper. The next Home Depot or Bed Bath & Beyond will be born in the next 12 months... Also, with less "spec" space built these last few years, demand will finally exceed supply.

Most of the problems facing us, as I have said on numerous occasions, is caused by ourselves. (We have met the enemy and he is me). I've spoken to a number of friends lately who are VP/Director of Real Estate of retail chains and they are extremely frustrated. Now in fairness, five of the six companies I'm thinking of are apparel chains and while retailing in general is hurting, apparel retailing really stinks. Their biggest complaint isn't that business is bad, but that their operation's division isn't doing anything to correct the problem. One friend in particular is an officer of a public apparel chain whose sales are down over 20%.

The company's problem of poor sales isn't due to the economy, but to buying wrong. The "look and feel" of merchandise their buyers bought is not the "look and feel" the customer wants. However, the company won't take big enough markdowns necessary to sell off the inventory because they don't want to show the loss on the books, and since they can't sell what they have, they do not have the money to buy what the customer wants. It's only a matter of time until they go bye-bye.

Everyone in the company knows what the problems and solutions are, but because of their "accounting" needs, the problems can't be solved

In a conversation along a similar line a few months ago, a friend of mine was saying that Today's Man was in major trouble and might go "11," be liquidated or sold in the coming months (that's now public, so I can discuss it without using "insiders information." FYI, my friend isn't with them). Anyway, I respect his opinion, besides being president of a chain, he's astute when it comes to retailing. He said they (Today's Man) had two problems. One, they failed to recognize or address properly the change in office dress today from "suits" to casual wear, and therefore were too heavily inventoried with suits and second, more importantly, (because this problem effects dozens of other chains as well) they started out as a retailer that sold name brand clothing that consisted of overruns, returns, etc. and could offer the consumer brand name merchandise at 50-60% off what the department stores offered.

However, as the number of stores/chains operating on this philosophy increased, the amount of true branded goods available decreased and the retailer's margin became smaller. To increase margin and selection, retailers started either purchasing "silhouette" merchandise (it looks like a branded item, but is usually of cheaper quality) or became their own manufacturer and started selling their own goods, claiming "comparable value" instead of "true value." Today's Man and numerous other retailers have gone that route and most/many are failing. Hit or Miss, Fashion Bug, Filene's Basement and Marshalls are just some examples of companies that have taken that approach and we know how well they're doing today.

During 1996, we'll see numerous offprice/outlet/value oriented retailers downsizing or being liquidated which leads to the next problem facing us. With so many developers being eliminated and the reduction in the number of retail chains, salaries for most of us will be under pressure. Making matters worse, many of the people eliminated will become brokers, so there will be more people trying to eat a smaller pie. Of course, the exception to all of this is the "producers." Those individuals who can lease more space and cut the best deal will always make the most money. But the majority of the industry will see minimum increase (if any) in pay.

Anyway, enough of this. 1995 was a healthy and happy year for my family, hopefully it was for yours. More importantly, my family wishes your family a healthy, happy and prosperous New Year.

P.S. Because we do not publish the weeks of December 25 and January 1, your next issue will be dated January 12, 1996.

Furniture Retailers Expanding

La-Z-Boy Chair Co. trades as La-Z-Boy Furniture Gallery at 180 locations nationwide. The furniture stores occupy spaces of 13,500 sq.ft. in freestanding facilities and strip centers. Plans call for 36 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Tom Sprenger, La-Z-Boy Chain Co., 1284 North Telegraph, Monroe, MI 48161; 313-242-1444, Ext. 2332, Fax 457-4900.

Summit Naked Furniture, Inc. trades as Naked Furniture at 41 locations nationwide. The stores, selling ready to finish furniture and custom furnishings, occupy spaces of 5,000 sq.ft. to 6,000 sq.ft. in strip centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place east of the Mississippi River,

For more information, contact Bruce MacGowan, Summit Naked Furniture, Inc., PO Box F, Clark Summit, PA 18411; 717-587-7800, Fax 586-8587.

H. Brian Convertible Sofas operates six locations in IL. The home furnishings stores occupy spaces of 5,000 sq.ft. to 10,000 sq.ft. in freestanding facilities, regional malls and strip centers. Growth opportunities are sought in the Chicago metropolitan area.

For more information, contact H. Krader, H. Brian Convertible Sofas, 2840 North Halsted Street, Chicago, IL 60657; 312-281-7650.

Art Van Furniture operates 23 locations in MI. The furniture stores occupy spaces of 60,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market. The company prefers to own its sites.

For more information, contact Jim Rastello, Art Van Furniture, 6500 14 Mile Road, Warren, MI 48092; 810-939-0800, Fax 939-8252.

Ikea, Inc. trades as Ikea at 113 locations nationwide. The stores, selling European-style contemporary home furnishings, occupy spaces of 100,000 sq.ft. to 300,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Patrick Smith, Ikea, Inc., 496 Germantown Pike, Plymouth Meeting, PA 19462; 610-834-0180, Fax 834-0872.

Pepper's Waterbeds operates 22 locations in IL. The stores, selling home furnishings, occupy spaces of 10,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market.

For more information, contact Larry Bartell, Pepper's Waterbeds, 2755 West Thomas Avenue, Melrose Park, IL 60160; 708-343-1177, Fax 343-2070.

Homeworks, Inc. does business as Arhaus Furniture at 11 locations in NY and OH. The stores, selling upscale Scandinavian and Southwestern furniture and furnishings, occupy spaces of 10,000 sq.ft. in freestanding facilities and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in OH.

For more information, contact Hal Reisenfeld, Homeworks, Inc., 3659 Green Road/ Suite 315, Beachwood, OH 44122; 216-765-8080, Fax 765-8843.

Buyers & Sellers of Commercial Properties

The Brookhill Group recently acquired North Adams Center in North Adams, MA on behalf of a trustee of Chase Manhattan Bank of New York City. The 142,000 sq.ft. project, anchored by Kmart, Brook's Drugs, Fashion Bug, Burger King and Radio Shack, was purchased for $12 million.

For more information, contact Ronald Bruder at (212-753-3123).

Property Resources brokered the sale of Beacon Plaza Shopping Center in Raleigh, NC. The 127,368 sq.ft. project, which is anchored by Henredon Furniture and Club Fit, was sold by Peoples Southeast Real Estate Partnership to a local investor for $3.5 million. The investor simultaneously sold portions of the center to Beacon Plaza Investment Trust and Beacon Investments, LLC. The company also brokered the sale of Cumberland Square Shopping Center in Dunn, NC. The 112,000 sq.ft. project was sold by United Dominion Realty Trust, Inc. to James Lockamy.

For more information, contact Brian Grabowski at (919-831-9090).

Metro Commercial Real Estate, Inc. represented Barnes & Noble Bookstores in its purchase of 3.4 acres of land in Marlton, NJ. Barnes & Noble recently opened a 25,000 sq.ft. bookstore on the site.

For more information, contact Daniel Hughes at (609-866-1900).

Mid-Atlantic Realty Trust sold McRay Plaza, a 35,000 sq.ft. unanchored strip center in Phoenix, AZ, to an affiliate of Cole Partnerships, Inc. for $1.9 million.

For more information, contact F. Patrick Hughes at (410-684-2000).

Price Associates, Inc. has the listing to sell Fairway Plaza in Evergreen Park, IL. The 25,000 sq.ft. project is 100% leased with 86% of the GLA occupied by national chains. The asking price is $3.15 million.

For more information, contact Jim Ehrlich at (312-641-1800).

Lease Signings

United Commercial Realty (214-526-6262) leased 52,000 sq.ft. to Hobby Lobby in Woodlands, TX and 53,500 sq.ft. to Hobby Lobby in Lake Jackson, TX.

Aries Deitch & Endelson, Inc. (914-949-2800) leased 8,700 sq.ft. to Revco Drugs, Inc. at Dutchess Park Shopping Center in Fishkill, NY; 1,540 sq.ft. to Vegetopia at Wykagkl Shopping Center in New Rochelle, NY; 2,500 sq.ft. to Java Centrale at Central Plaza in Yonkers, NY; 1,500 sq.ft. to Dunkin Donuts at Goldens Bridge Shopping Center in Goldens Bridge, NY; 3,000 sq.ft. to Northridge Bagel in New Rochelle, NY; 7,000 sq.ft. to Outback Steak House at Westchester Pavilion in White Plains, NY and 2,500 sq.ft. to Boston Chicken in Scarsdale, NY.

Charter Realty & Development Corp. (203-629-3939) leased 11,800 sq.ft. to Boat US at Benny's Shopping Center in Old Saybrook, CT.

CB Commercial Real Estate Group (708-706-4925) leased 9,500 sq.ft. to Baby Town at Buffalo Grove Towne Center in Buffalo Grove, IL.

Metro Commercial Real Estate, Inc. (609-866-1900) leased 21,149 sq.ft. to A.C. Moore Arts and Crafts at The Centre at Dover in Dover, DE.

Morbitzer Group, Inc. (407-539-1000) leased 18,212 sq.ft. to Thriftko at Silver Hills Shopping Center in Orlando, FL; 15,496 sq.ft. to Chamberlin's Market & Cafe at Winter Park Mall in Winter Park, FL; 3,150 sq.ft. to Las America Grocery and Deli at Longwood Shopping Center in Longwood, FL; 2,496 sq.ft. to Feng Ling at Avenue Shoppes at Florida Mall in Orlando, FL; 1,000 sq.ft. to Homes 'R Us at Bridge Plaza in Port St. Lucie, FL; 700 sq.ft. to Wellington Vac and Sew at Wellington Market Place in Wellington, FL; 1,200 sq.ft. to Crystal River Cleaners at Crystal River Shopping Center in Crystal River, FL; and 3,300 sq.ft. to Nova Trading Company and 1,200 sq.ft. to Sobiks at Cypress Park Plaza in Orlando, FL.

Property Resources (919-831-9090) leased 3,200 sq.ft. to Thrift Shops of Granville County, Inc. at Hilltop Village Shopping Center in Oxford, NC; and leased space to Carolyn A. Myers Dress Shop at Beacon Plaza in Raleigh, NC and Blumberg Audio Visual Communication Services at Village Square Shopping Center in Myrtle Beach, SC.

Divaris Real Estate, Inc. (804-497-2113) leased 1,284 sq.ft. to Chanello's Pizza at Laburnum Green Shopping Center in Richmond, VA and 1,600 sq.ft. to Photo X-citement at Victory Center at Kiln Creek in Newport News, VA.

Judson Realty, Inc. (212-974-1900) leased 400 sq.ft. to Judith Leiber for a jewelry store at the Carlyle Hotel in New York City, NY.

Summit Realty Leasing and Management Corporation (407-368-2043) leased 4,692 sq.ft. to Boca Ballet Theater Company in Boca Raton, FL.

Neal Realty & Investments, Inc. (954-568-0530) leased 2,800 sq.ft. to Star Furniture at University Shoppes in Lauderhill, FL; 1,734 sq.ft. to Kenneth David Apparel at Lauderdale Market Place in Lauderdale Lakes, FL and 2,000 sq.ft. to Michele's Boardwalk Restaurant at Delray West Plaza in Delray Beach, FL.

KLNB, Inc. (410-321-0100) leased 6,193 sq.ft. to Trak Auto at Odenton Shopping Center in Odenton, MD; 3,575 sq.ft. to MAB Paints & Coatings in Bel Air, MD; 3,000 sq.ft. to The Canopy in Owings Mills, MD; 2,800 sq.ft. to Simply Fashions at Waverly Towers in Baltimore, MD; 1,711 sq.ft. to American Personal Communications at Plaza America in Reston, VA; 1,568 sq.ft. to Burgeons Beauty & Barber Supply, Inc. in Columbia, MD; 1,350 sq.ft. to Great Clips at 40 West Plaza in Catonsville, MD; 1,344 sq.ft. to Zi Rin Zhang at Stavlas Center in Linthicum, MD and 1,280 sq.ft. to Great Clips at Belair Beltway Plaza in Overlea, MD.

Garrick-Aug Associates Store Leasing, Inc. (212-557-9090) leased 22,000 sq.ft. to American Fitness Center in Manhattan, NY.

RJS/Jackson Management Corp. (407-395-1200) leased 977 sq.ft. to Hard Bodies of the Palm Beaches and 1,453 sq.ft. to Nail Depot at Cross Creek Shopping Center in Boynton Beach, FL; 1,639 sq.ft. to General Nutrition Center, 1,407 sq.ft. to Bostocks Shoes, 1,633 sq.ft. to Reef Hallmark, 400 sq.ft. to Lake Worth Hearing Aids, 1,217 sq.ft. to The Hoover Company, 1,593 sq.ft. to Sally Beauty Supply, 1,055 sq.ft. to My Jewelers and 1,207 sq.ft. to Domino's Pizza at Greenwood Shopping Center in Palm Springs, FL and 1,350 sq.ft. to Xcentric Salon, 1,350 sq.ft. to Book Rack, 750 sq.ft. to LeBeau Visage, 1,000 sq.ft. to All World Travel, 1,810 sq.ft. to Hollywood Collectibles and 1,830 sq.ft. to Sara's of Hollywood at Emerald Woods Plaza in Hollywood, FL.

Grubb & Ellis (714-937-0881) leased 10,913 sq.ft. to Westwood Brewing Company at Westwood Village in Westwood, CA.

Paster Enterprises (612-646-7901) leased 10,200 sq.ft. to Ben Franklin Crafts at Northway Shopping Center in Lexington/Circle Pines, MN.

Equity Properties and Development Limited Partnership (305-944-7132) leased 2,922 sq.ft. to Kids Footlocker; 1,484 sq.ft. to The Athlete's Foot; 5,555 sq.ft. to N.C. Butterfly; 1,070 sq.ft. to Amethyst and 1,877 sq.ft. to Boccia at The Mall at 163rd Street in North Miami Beach, FL.

Breslin Realty Development Corp. (516-741-7400) leased space to S&C Siding & Windows in North Bellmore, NY.

Hiffman Shaffer Associates, Inc. (312-332-3555) leased 2,020 sq.ft. to Seattle's Best Coffee in Chicago, IL; 2,000 sq.ft. to Bacino's on Clinton, Inc. in Chicago, IL; 13,407 sq.ft. to Crown Books at Spring Hill Fashion Corner in West Dundee, IL; 3,400 sq.ft. to Dunkin Donuts in East Dundee; 2,100 sq.ft. to National Karate Schools at Roselle Towne Center in Roselle, IL; 3,600 sq.ft. to Kim's Black Belt Karate at Lake Mill Plaza in Addison, IL; 1,320 sq.ft. to Postnet International at County Line Square in Burr Ridge, IL; 975 sq.ft. to Towne Travel Agency at Liberty Square in Wauconda, IL and 2,100 sq.ft. to Big Apple Bagels at McHenry Commons in McHenry, IL.

Who's Opening and Where...

Dow Stereo/Video (619-566-9600) recently opened an 18,000 sq.ft. store in San Diego, CA. The unit is the largest in the chain.

Austins Steaks & Saloon, Inc. (402-466-2333) recently opened a restaurant in Scottsdale, AZ and is planning to open a unit in Omaha, NE next month.

Sun Television and Appliances, Inc. (614-846-4200) recently opened a 41,000 sq.ft. superstore at River Valley Plaza in Lancaster, OH. The company currently operates 46 stores.

Bruegger's Bagel Bakery (802-862-4700) recently opened a store in Plano, TX through its franchisee Ciatti's, Inc. Ciatti's plans to open as many as 30 Bruegger's units in the Dallas/Fort Worth, TX market within the coming five years.

Kaos Skateparks (800-757-5059) plans to open a skateboard park in Costa Mesa, CA next month. The 15,000 sq.ft. facility will include a skating area complete with a spine ramp, a bowl, a pyramid and street course as well as a game room, concession area and retail shop offering skateboards, in-line skates, snowboards and related merchandise. Kaos plans to open additional skateparks in undetermined cities during 1996.

Sears, Roebuck and Co. (708-286-2500) plans to open a 109,000 sq.ft. store during Fall 1997 at Coralville Mall in Coralville, IA. The new store will have a special emphasis on apparel and will include home fashions, home appliances, electronics and home improvement products.

MJ Designs (214-929-8595) recently opened a 30,000 sq.ft. arts and crafts store at The Crossing in Clifton Park/Halfmoon, NY.

Acme Markets, Inc. (610-889-4214), a division of American Stores Company, recently opened Acme Supermarkets in Mount Holly, Runnemede, Washington Township, Cross Keys, Glassboro and Bridgeton, NJ; Prices Corner, DE and Philadelphia, PA. Many of the new stores are open 24 hours and feature pharmacies, banking facilities, bakeries, floral departments, video rentals, one-hour photo processing services, dry cleaning services and expanded meat, seafood, deli, dairy and produce departments. Since October, the company has opened 10 supermarkets and currently operates more than 190 units in DE, MD, NJ and PA.

Unocal's 76 Products Company (714-572-7114) recently opened a new retail concept in City of Industry, CA that includes a Unocal 76 service station, a FastBreak convenience store, a ProWash car wash and a Carl's Jr. Express restaurant. The restaurant, which is located within the FastBreak store, offers a limited menu of hamburgers, fries, chicken sandwiches and breakfast items on both a walk-in and drive-thru setting. The restaurant is the first of 10 units that will be tested at Unocal 76 service stations within the coming year.

Manhattan Bagel Company (908-544-0155) recently opened its first store in TX, a 1,700 sq.ft. unit in Houston, TX. Five additional units are expected to open in the Houston area during the first quarter of next year.

Albertson's (208-385-6200) plans to open a 53,000 sq.ft. supermarket in Miami, FL next month and is planning to open units in Pembroke Pines and Kendall, FL during 1996. The company currently operates 82 stores in FL and 720 units overall.

Big Planet Video, Inc. (617-932-9008) plans to open three 5,500 sq.ft. video stores in MA during the first quarter of 1996 and an additional eight units during the remainder of the year.

Health & Fitness Tenants Expanding

Weight Watchers International does business as Weight Watchers at 1,200 locations nationwide. The weight loss and control centers occupy spaces of 2,300 sq.ft. in power and strip centers. Plans call for 50 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Lou Mancuso, Weight Watchers International, 175 Crossways Park West, Woodbury, NY 11797; 516-949-0682, Fax 949-0699.

Lady of America operates 152 locations nationwide. The fitness clubs occupy spaces of 2,400 sq.ft. to 10,000 sq.ft. in freestanding facilities, power, specialty and strip centers. Plans call for 30 openings in the coming 18 months. Expansion will take place nationwide. The company is franchising.

For more information, contact Gary Larson, Lady of America, c/o Landco Realty Group, 3300 Chimney Rock/ Suite 204, Houston, TX 77056; 713-952-9988, Fax 952-1828.

Spa Lady operates 12 locations in FL and OH. The women's fitness centers occupy spaces of 10,000 sq.ft. to 15,000 sq.ft. in freestanding facilities and anchored strip centers. Plans call for six openings in the coming 18 months. Expansion will take place in FL. Preferred demographics include a population of 150,000 within five miles earning $25,000 as the median income. The company, which is franchising, prefers a vanilla shell with $5 psf in a tenant allowance and typically signs a 10-year lease.

World Gym Fitness & Aerobics Center trades as World Gym at three locations in FL. The fitness centers occupy spaces of 10,000 sq.ft. to 15,000 sq.ft. in freestanding facilities and anchored strip centers. Plans call for as many as three openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 200,000 within five miles earning $30,000 as the median income. The company, which is franchising, prefers a vanilla shell with $5 to $10 in tenant allowances and typically signs a 10-year lease.

For more information on the above two companies, contact Scott Richards, RG Partners, 245 North Ocean Boulevard, Deerfield Beach, FL 33441; 305-428-1100, Fax 428-4638.

Physicians Weight Loss Centers of America, Inc. trades as Physicians Weight Loss Centers at 80 locations nationwide. The medically supervised weight loss clinics occupy spaces of 1,200 sq.ft. in strip centers and professional buildings. Plans call for 16 openings in the coming 18 months. Expansion will take place nationwide. The company is franchising.

For more information, contact Dennis Kline, Physicians Weight Loss Centers of America, Inc., 395 Springside Drive, Akron, OH 44333; 216-666-7952, Fax 666-2197.

Diet Center World Wide, Inc. trades as Diet Center at 500 locations nationwide. The weight control programs and products centers occupy spaces of 1,000 sq.ft. in strip centers and semi-professional buildings. Plans call for as many as 55 openings in the coming 18 months. Expansion will take place in CA, MO, KS, NC, SC, TX, OR and WA. The company is franchising.

For more information, contact Dennis Kline, Diet Center World Wide, Inc., 395 Springside Drive, Akron, OH 44333; 800-656-3294, Fax 666-2197.

Lead Sheet

American Eagle Outfitters, Inc.

dba American Eagle Outfitters

Bill Matsko

150 Thorn Hill Drive

Warrendale, PA 15095

412-776-4857, Fax 776-6160

Apparel

The 276-unit chain operates locations nationwide. The men's and women's apparel stores occupy spaces of 4,200 sq.ft. in outlet centers and regional malls. Plans call for 25 openings in the coming 18 months. Expansion will take place nationwide.

Aamco Transmission, Inc.

dba Aamco Transmission

Rick Fuller

1 Presidential Boulevard

Bala Cynwyd, PA 19004

610-668-2900, Fax 664-4570

Automotive

The 650-unit chain operates locations nationwide. The automotive service centers occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in freestanding facilities. Plans call for 30 openings annually. Expansion will take place nationwide.

Papyrus/Papyrus Franchise Corp.

dba Papyrus

Margrit Schurman

954 Sixtieth Street

Oakland, CA 94608

510-428-0166

Cards

The 81-unit chain operates locations nationwide. The stores, selling cards, gift wrap and upscale merchandise, occupy spaces of 1,000 sq.ft. in downtown store fronts and regional malls. Plans call for 20 openings in the coming 18 months. Expansion will take place nationwide. The company, which is franchising, prefers to locate its stores in markets drawing an affluent, educated clientele.

Benton Service Oil Co.

dba Y'Alls

Blake Anderson

Box 510, 307 North Main Street

Benton, KY 42025

502-527-3218, Fax 527-1999

Convenience Store

The 17-unit chain operates locations in KY. The convenience stores, which also sell gasoline, occupy spaces of 1,500 sq.ft. in freestanding facilities. Plans call for one opening in the coming 18 months. Expansion will take place in the existing market.

U Pak Discount Foods

dba U Pak

David Heater

915 Riverside Drive

Gassaway, WV 26624

304-364-8000, Fax 364-4690

Convenience Store

The 82-unit chain operates 80 convenience stores and two supermarkets in WV, OH and KY. The convenience stores occupy spaces of 2,500 sq.ft. in freestanding facilities and the supermarkets occupy spaces of 35,000 sq.ft. in freestanding facilities. Plans call for the opening of four units in the coming 18 months. Expansion will take place within the existing markets.

Jack Godfrey & Sons, Inc.

dba Comet 1 Hour Cleaners

Sandy Gregory

406 West Division

Arlington, TX 76011

817-461-3555, Fax 861-4779

Dry Cleaners

The 305-unit chain operates locations in AR, TX, TN, NM, CA, CO, OH, GA, KS, KY, MO and OK. The stores, offering dry cleaning and laundry services, occupy spaces of 1,800 sq.ft. to 2,000 sq.ft. in freestanding facilities and end caps of strip centers. Plans call for as many as 80 openings in the coming 18 months. Expansion will take place in AL, AR, GA, LA and TX. The company is franchising.

Best Buy Company, Inc.

dba Best Buy, Concept II

Marilyn Williams

7075 Flying Cloud Drive

Eden Prairie, MN 55344

612-947-2000, Fax 947-2316

Electronics

The 251-unit chain operates locations nationwide. The stores, selling appliances and electronics, occupy spaces of 45,000 sq.ft. to 58,000 sq.ft. in freestanding facilities and strip centers. Plans call for as many as 40 openings in the coming 18 months. Expansion will take place nationwide. The company prefers new construction for its Concept II warehouse superstore format.

Q-Zar

Neil Farren

1701 North Market Street/ Suite 200

Dallas, TX 75202

214-741-1376

Entertainment

The 275-unit chain operates locations worldwide. The concept features indoor electronic laser tag games while using spaces of 6,000 sq.ft. to 12,000 sq.ft. in end caps of strip centers. Plans call for as many as 40 openings in the coming 18 months. Expansion will take place worldwide.

Einsteins Bagels

David Stanchak

1526 Cole Boulevard/ Suite 200

Golden, CO 80401

303-202-3326, Fax 202-3360

Food

The 53-unit chain operates locations in CA, CO, FL, KS, MO, UT, IL and MI. The bagel stores occupy spaces of 2,200 sq.ft. in downtown store fronts, freestanding facilities and end cap and in-line spaces of strip centers. Preferred anchors include supermarkets, drug stores, dry cleaners and health clubs. Plans call for as many as 400 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a combined day and residential population of 50,000 within two miles in a suburban trade area and within one mile in an urban trade area earning more than $33,000 as the median household income.

Franchise Associates, Inc.

dba Arby's, Arby's/Sbarro

Doug Kennedy

5354 Parkdale Drive/ Suite 100

St. Louis Park, MN 55416

612-546-3391, Fax 546-8342

Food

The 44-unit chain operates 36 Arby's and eight Arby's/Sbarro units in MN and WI. The restaurants occupy spaces of 3,500 sq.ft. in power and strip centers. Growth opportunities are sought in MN.

Family Bargain Corp.

dba Factory To You

Donna Lewis

4000 Ruffin Road

San Diego, CA 93123

619-627-1800, Fax 637-4199

General Merchandise

The 31-unit chain operates locations in AZ, CA, NM, NV, OR, TX and WA. The stores occupy spaces of 15,000 sq.ft. to 20,000 sq.ft. in power and neighborhood centers. Plans call for 12 openings in the coming 18 months. Expansion will take place nationwide.

Americuts Franchise Systems, Inc.

dba Americuts

Michael Perrone

41 Durant Avenue/ Suite 103

Bethel, CT 08601

203-792-9955, Fax 792-3990

Hair Salon

The two-unit chain operates locations in CT and MI. The family barber shops occupy spaces of 1,000 sq.ft. to 2,000 sq.ft. in strip centers. Preferred anchors include Discovery Zone, Toys 'R Us, Kids 'R Us and other child-related tenants. Plans call for 15 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a trade area population of 50,000 earning $25,000 as the average income. The company, which is franchising, typically signs a three-year lease, prefers a vanilla shell and cites Supercuts and Costcutters as its competition.

Oneida, Ltd.

dba Oneida Factory Store

Richard Tudman

Kenwood Avenue

Oneida, NY 13421

315-361-3244, Fax 361-3330

Housewares

The 68-unit chain operates locations nationwide. The stores, selling Oneida housewares and tableware, occupy spaces of 2,100 sq.ft. to 2,600 sq.ft. in outlet centers. Plans call for as many as five openings in the coming 18 months. Expansion will take place nationwide.

Petpeople

Steve Lewis

3131 Camino Del Rio North #190

San Diego, CA 92018

619-280-2600, Fax 280-3311

Pet Store

The seven-unit chain operates locations in CA. The pet stores occupy spaces of 3,000 sq.ft. in strip centers. Preferred anchors include supermarkets. Growth opportunities are sought in the existing market.

Auto Photo Systems

Gary Gulley

1123 West North Carrier Parkway

Grand Prairie, TX 75050-1104

800-877-3545, Fax 214-606-0661

Photo

The company operates 17,000 photo booths worldwide. The booths occupy spaces of 13 sq.ft. in downtown store fronts, regional malls, strip centers and theme parks. Plans call for as many as 400 openings in the coming 18 months. Expansion will take place worldwide.

Check Express, Inc.

dba Check Express, Check Exchange

Rudy Frederico

101 East Kennedy Boulevard/ Suite 3800

Tampa, FL 33602-5154

813-223-3338

Service

The 198-unit chain operates locations nationwide. The stores, offering check cashing, money order services and money transfer services, occupy spaces of 1,200 sq.ft. to 2,000 sq.ft. in freestanding facilities and strip centers. Plans call for 30 openings in the coming 18 months. Expansion will take place nationwide. The company is franchising.

Foot Action USA

Chuck Albert

3940 Pipestone Road

Dallas, TX 75212

214-634-7755, Fax 637-5104

Shoes

The 446-unit chain operates locations nationwide. The stores, selling athletic shoes, occupy spaces of at least 1,000 sq.ft. in regional malls and strip centers. Plans call for 50 openings in the coming 18 months. Expansion will take place nationwide.

Nine West Group, Inc.

dba Nine West, 9 West & Co., Company 9,

Easy Spirit & Co., Steinmart,

Burlington/Cappezio

Brenda Wurtz

9 West Broad Street

Stamford, CT 06902

203-324-7567, Fax 328-4275

Shoes

The 916-unit chain operates locations nationwide. The stores, selling women's shoes, occupy spaces of 2,000 sq.ft. in downtown store fronts, regional malls, outlet and specialty centers. Plans call for 110 openings in the coming 18 months. Expansion will take place nationwide.

Monotag Corp.

dba Signs First

Suzanne Cunningham

813 Ridge Lake Boulevard/ Suite 390

Memphis, TN 38120

800-852-2163, Fax 901-682-2475

Signs

The 29-unit chain operates locations in AR, CO, MS, TN and TX. The stores, offering computer generated signs, banners and vehicle lettering, occupy spaces of 1,000 sq.ft. to 2,000 sq.ft. in strip centers. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place in the existing markets. The company is franchising.

Tractor Supply Co.

Lee Haberer

320 Plus Park Boulevard

Nashville, TN 37217

615-366-4646

Specialty

The 185-unit chain operates locations in the Eastern, Midwestern and Southern regions. The stores, offering farm, home and automotive supplies, occupy spaces of 18,750 sq.ft. in freestanding facilities and strip centers. Plans call for as many as 25 openings in the coming 18 months. Expansion will take place in PA, MD, VA, KY, TN, NC, OH, IN, MI and TX.

Nordic Advantage, Inc.

dba Nordic Track Fitness At Home

John Viszlay

11 Peavey Road

Chaska, MN 55318

612-448-6987, Fax 368-2595

Sporting Goods

The 112-unit chain operates locations nationwide. The stores, selling home fitness equipment, occupy spaces of 1,500 sq.ft. to 2,000 sq.ft. in regional malls. Plans call for seven openings in the coming 18 months. Expansion will take place nationwide.

The Sports Authority

Mark Walker

3383 North State Road 7

Fort Lauderdale, FL 33319

954-735-1701, Fax 730-4288

Sporting Goods

The 135-unit chain operates locations nationwide. The sporting goods stores occupy spaces of 43,000 sq.ft. in freestanding facilities and power centers. Plans call for as many as 60 openings in the coming 18 months. Expansion will take place nationwide.

Family Video Movie Club

dba Family Video

Charles Hoogland

1022 East Adams

Springfield, IL 62703

217-544-2001, Fax 544-8416

Video

The 63-unit chain operates locations in IL, IN, MI and WI. The stores, offering the rental and sales of video tapes and Nintendo games, occupy spaces of 3,000 sq.ft. to 4,500 sq.ft. in freestanding facilities. Plans call for up to 20 openings in the coming 18 months. Expansion will take place in the existing markets.

Space Place

Colorado

Colorado Springs- Rustic Hills Shopping Plaza is anchored by Gart Bros. Superstore and TJ Maxx. Build-to-suit spaces ranging from 30,000 sq.ft. to 80,000 sq.ft. are available for lease. The site fronts Academy Boulevard and Palmer Park.

For details, contact Todd Okum of Portland Investment Co. of America at (310-441-8411), Fax (475-9112).

Connecticut

Bridgeport- A 1/4 acre build-to-suit site is available for lease. The site is located one mile from Trumbull Shopping Park. In Norwalk- 3,500 sq.ft. is available for lease on North Main Street. The site is located adjacent to Crown Theaters and has 700 parking spaces. In Orange- Spaces from 4,000 sq.ft. to 25,000 sq.ft. are available for lease. The site fronts Post Road and is located across from Loehman's Plaza. Tenants in the area include Circuit City, Home Depot, Sam's Club, Sears, Service Merchandise and OfficeMax.

For details, contact Michael Berke of Oxford Real Estate Services Group, Inc. at (203-222-3939).

Milford- Milford Shopping Center is anchored by a pharmacy and a video store. The 23,000 sq.ft. project has spaces of 1,300 sq.ft., 2,600 sq.ft. and 3,888 sq.ft. available for lease. The site is located at the intersection of Route 1 and Landsdale Avenue, which generates a daily traffic count of 21,600 vehicles. The project is located near Kmart and Waldbaums. Demographics include a three-mile population of 53,524 earning $43,432 as the average income.

For details, contact Vicky Chastain of Levey Miller Maretz at (203-389-5377), Fax (389-6302).

Florida

Key Largo- Tradewinds Shopping Center is anchored by Kmart, Publix Supermarket, Beall's Outlet and Payless Shoes. The 158,914 sq.ft. project has spaces of 1,200 sq.ft. and 1,238 sq.ft. available for lease. In Lake Worth- Palm Springs Plaza is anchored by Eckerd Drugs, The Gap, Pier 1 and Oshman's Sporting Goods. The 185,060 sq.ft. project has spaces of 488 sq.ft., 700 sq.ft., 740 sq.ft., 780 sq.ft., 781 sq.ft., 940 sq.ft., 980 sq.ft., 1,500 sq.ft., 2,450 sq.ft., 4,547 sq.ft., 4,560 sq.ft., 5,513 sq.ft. and 6,860 sq.ft. available for lease.

For details, contact Len Gold (Tradewinds) or Brian Boker (Palm Springs) of Philips International at (212-951-3848).

Indiana

Plymouth- Pilgrim Place Shopping Center is anchored by Kmart, J.C. Penney and Sears. Space is available for a third anchor tenant. Demographics include a 15-mile population of 62,654 earning $34,245 as the average income.

For details, contact Chase Properties at (216-464-6626).

West Lafayette- Market Square Shopping Center is anchored by L.S. Ayres Department Store, L.S. Ayres Home Center, T.J. Maxx and Jewel-Osco. Outlot spaces of 25,000 sq.ft., 30,000 sq.ft. and 35,000 sq.ft. are available. Demographics include a five-mile population of 105,079 earning $38,782 as the average family income.

For details, contact DK/Carlson at (800-736-8999).

Kansas

Arkansas City- A 39,797 sq.ft. freestanding former Kmart is available for lease. The site fronts US Highway 77. Demographics include a five-mile population fo 16,632 earning $32,923 as the average household income. In Emporia- A 39,797 sq.ft. freestanding former Kmart is available for lease. The site fronts US Highway 50. Demographics include a five-mile population of 27,341 earning $31,437 as the average household income. In Great Bend- A 55,552 freestanding former Kmart is available for lease. The site fronts 56-156 Highway and MacArthur Boulevard. Demographics include a five-mile population of 16,513 earning $30,931 as the average household income.

For details, contact David Darling of Malan Realty Investors, Inc. at (810-644-7110), Fax (644-7880).

Missouri

Grandview- The Meadows Shopping Center is anchored by Kmart. The project has spaces from 1,332 sq.ft. to 5,830 sq.ft. available for lease. Demographics include a trade area population of 104,912 earning $43,269 as the average income. In Liberty- Liberty Commons Shopping Center is anchored by Kmart and Liberty 8 Theaters. The project has spaces of 1,050 sq.ft. and two spaces of 1,400 sq.ft. each available for lease.

For details, contact Licausi-Styers Company at (913-681-5888), Fax (681-7869).

New Jersey

Budd Lake- Village Green is anchored by A&P Foodstores. The 90,000 sq.ft. project has spaces of 1,500 sq.ft., 3,000 sq.ft. and 6,000 sq.ft. available for lease. In Old Bridge- Gateway Shopping Center is anchored by Marshall's, The Wiz and Drug Emporium. The 335,000 sq.ft. project has a 5,500 sq.ft. space available for lease. In Somerville- Downtown Somerville Shopping Center is anchored by Pathmark. The 135,000 sq.ft. project has spaces of 3,000 sq.ft. and 6,000 sq.ft. available for lease. In Washington- Washington Shopping Center is anchored by A&P. The 85,000 sq.ft. project, which is under construction, has spaces from 2,000 sq.ft. to 14,000 sq.ft. available for lease. In Wayne- West Belt Plaza is anchored by Service Merchandise. The 110,000 sq.ft. project has spaces of 1,800 sq.ft. and 4,809 sq.ft. available for lease. In West Caldwell- West Caldwell Center is anchored by TJ Maxx. The 105,000 sq.ft. project has spaces of 2,200 sq.ft. and 3,500 sq.ft. available for lease.

For details, contact Bruce Jeffrey of Jeffrey Realty at (908-668-9600, ext. 16), Fax (668-5225).

New York

Centerreach- Space is available for lease at a 100,000 sq.ft. shopping center anchored by Pathmark. The site is located at the intersection of Middle Country Road and Pleasant Avenue. In Patchogue- A 340,000 sq.ft. shopping center is anchored by Bob's Stores, Linens 'n Things, Service Merchandise, Marshalls, King Kullen and Michaels Crafts. A 15,000 sq.ft. end-cap space is available for lease. The site fronts Sunrise Highway.

For details, contact Alvin Neuman of Pergament Investments, Inc. at (516-484-8800, Ext. 3011), Fax (484-9170).

North Carolina

Wilkesboro- Wilkes Mall is anchored by Belks and J.C. Penney. The 358,929 sq.ft. project has spaces of 53,362 sq.ft. and 56,965 sq.ft. available for lease. Demographics include a trade area population of 85,326 earning $31,042 as the average income.

For details, contact First Union Management, Inc. at (216-781-4030).

Oregon

Corvallis- Timber Hill Shopping Center is anchored by Cub Foods, Emporium and Video Land. The 250,000 sq.ft. project has spaces of 2,290 sq.ft., 3,755 sq.ft. and 7,800 sq.ft. available for lease. Demographics include a five-mile population of 54,579 earning $38,015 as the average income.

For details, contact Bill Frey of Coldwell Banker at (503-588-3522, ext. 321), Fax (588-3514).

Renovations, Expansions & Conversions

Horizon Group, Inc. recently opened a 65,000 sq.ft. expansion at its Medford Outlet Center in Medford, MN. The addition brings the total GLA of the project to 188,060 sq.ft. Added to the tenant mix were Casual Corner & Co., Van Heusen, Fashion Ventures, American Eagle Outfitters, Westport Ltd., Claire's Boutique, Sunglass Source Outlet and County Seat. The company also recently opened a 70,000 sq.ft. phase V expansion at the Outlets at Gilroy in Gilroy, CA. The expansion brings the project's total GLA to 600,000 sq.ft. Stores opening in the expansion include Birkenstock, Bose, Country Clutter, Essentials, Flapdoodles, Fossil, Guess Classics, Nordic Track, Reebok, The Gap, Van Heusen, Laurel Birch and Card America.

For more information, contact the Horizon Group at (616-798-9100).

Forest City Development plans to build a 65,000 sq.ft. 16-screen movie theater at the Galleria at South Bay Mall in Santa Monica, CA. Construction of the theater, which will be built directly above the mall's five-level parking structure, will begin during June 1996 and open during Spring 1997. The movie theater will be one of the first to be built directly over a parking structure. To accommodate the theater addition, the existing parking structure will be retrofitted in part by wrapping all the existing columns with carbon mesh matting material to form a stronger superstructure. Other renovations at the mall will include the construction of escalators and elevators to the mall's third level to help increase the foot traffic on that floor. The 485,000 sq.ft. mall is anchored by Mervyns, Robinson/May and Nordstrom's.

For more information, contact Forest City Development at (216-267-1200).

American Heritage Corporation is currently renovating and expanding the 400,000 sq.ft. Centennial Plaza in Addison, IL. The company recently sold a section of the project to Marcus Theatre Corporation who plans to construct a 77,000 sq.ft. 20-screen movie complex. Construction will begin during June 1996 with a November 1996 opening planned. The company is also rehabbing a 120,000 sq.ft. former Kmart that will be subdivided for multi-tenant use. Also available at the project are several outlots and the company is looking for as many as five national restaurant chains, a book store, a sporting goods store or other entertainment-type uses for either build-to-suit or ground lease deals.

For more information, contact Ryan Murphy or Dan Murphy of American Heritage Corporation at (708-773-9000).

Financial News...

Kmart Corporation (810-643-1000) recently announced that following its strategic review of its 127-unit Canadian subsidiary, it has decided that it is in the best interest of the company to continue to operate the stores and has terminated discussions regarding the possible sale of its Canadian operations.

Spec's Music, Inc. (305-592-7288) reported that total revenues for its fiscal 1996 first quarter increased four percent to $17.973 million compared to $17.273 million last year. However, the company reported a first quarter loss of $1.005 million which was attributed to a decline in comparable store sales, lower margins on sales and costs associated with opening new stores. During the quarter, the company opened two stores and closed two stores and currently operates 57 units in FL and Puerto Rico.

Uni-Marts, Inc. (814-234-6000) announced that has withdrawn its offer to acquire Dairy Mart Convenience Stores, Inc. because the company believes that as a result of the transaction with Charles Nirenberg the equity of Dairy Mart has been substantially decreased while the debt level has been substantially increased further burdening Dairy Mart's already highly leveraged balance sheet.