The Dealmakers Issue Number 3 for the week of February 2, 1996.

 

My Way by Ted Kraus

 

This issue is being distributed at the ICSC Dealmaking Show being held in New York City, it is also our largest "regular" issue ever.  I'd love to tell you it's this big because we're #1, read by seven trillion people in 36 countries, etc. but that's not the reason.  It's because, short of a blizzard, fire or locust, this has always been an excellent show and will continue to be so.  In addition, as the economy weakens, companies are beginning to promote more to attract business (you gotta do something and now with all companies "downsizing," marketing is even more important) and the last reason, Ann is an excellent salesperson (if she ever decides to terminate both our business and personal partnership, she'll make some real money).  Anyway, this is an ideal time to network, gossip and hopefully pick up some new business, god knows we all need it.

 

One trend I've noticed is that more and more companies are becoming "specialists" (that means they set up a separate division) in leasing surplus space.  Unfortunately, while there is an increasing demand for this service, most of the specialists don't know what they are doing; leasing surplus space is totally different than conventional leasing.  It's a lot like all of the developers who couldn't make a living developing so they became management companies, that way they would lose their client's money, not theirs.  Same is true for surplus property.  Several companies have set up Home Pages specializing in surplus property (in fact, so are we).  With more companies becoming "surplus space specialists" and less companies expanding, it should be an interesting year.

 

In the last My Way, I briefly mentioned the indictment of Michael Dowdle, Kmart's former VP who appears (but remember we're all innocent until proven guilty) to have taken a $750,000 bribe from one developer during the course of selling some Kmart property.  Now, if this is the case, we know that it must have cost Kmart millions, and it wasn't the only bribe he took and more importantly he's probably not alone.  I'm willing to bet that if the case against him is strong enough, he'll be making deals and turning in other Kmart people.  Unfortunately, Kmart is not alone, many of the largest big box users have this type of garbage going on in their companies today, yesterday and unfortunately probably tomorrow and it's getting worse all of the time.

 

While I am in no way condoning it, it's easy to understand a real estate person who's making $50,000-$150,000 a year and sees a "broker" (those low lifes) making a $50,000-$200,000 commission for just one deal and "he" (the company's employee) was making it all possible.  "Why not share in the commission? it's not doing anyone any harm."  It's a good deal for the company, he would have done the deal anyway, and no one is hurt.  Well, that's how it starts out.  Then, one day, that same broker he had gone partners with brings a deal that is okay but not great, or the rent is a higher number than the tenant would normally pay for that type of site.  The company representative doesn't like it but he (or she, women are as big as crooks as men) has tuition due for their child, so a "man's gotta do what a man's gotta do."  Each time it gets easier to "compromise" and soon the rents are high and the locations are poor for all sites.  Remember, that's how W.T. Grant went "7",  Atlantic Department Stores and Korvetts were not known for their "moral ways" and their future became limited.

 

However, I don't blame the employees entirely for taking the bribe (but they should go to jail) I blame management.  The fish stinks from the head down.  Real estate is the single most important long term decision any retailer makes, yet either top management neglects it, doesn't understand it, is stupid or corrupt.  Rumors have it that both of the major discounters laid off--within the last two years--substantial numbers of personnel that got caught with their hands in the cookie jar, but they did nothing to prevent it from happening again.  I know one real estate VP who makes $135,000 a year and no one at his company wonders how he can afford all those great vacations, an expensive home or "toys," and they're doing nothing to check out "how"... duh!

 

Now that many retailers in their "infinite wisdom" have decided to outsource their real estate department, corruption and bad real estate deals will become even more common.  Once a retailer gives a broker an exclusive he loses control.  In these difficult times retailers must be prudent in selecting their sites.  If a broker holds back on a site because he is not getting sufficient compensation who loses, not the broker because he'll give the tenant any location in order to get his commission, both the developer and the retailer are the losers.  However, the retailer is the biggest loser since he will take a secondary location and have to work much harder to make his store produce.  Don't companies ever notice that their rep keeps using just one broker to do all their deals?  Doesn't this get suspicious?  The broker's loyalty is not to the retailer or developer, it's to the wife and kids; "Make the deal and let me get my commission."  This isn't a knock to brokers, I'm one and that's how I eat.  But no matter how much I "care," I'm more worried about me than the client.  But I think I keep my fiduciary responsibilities clear.  Of course, if I was put in a position to make $750,000 my morality might change, but I ain't no hooker for only $5,000.

 

Exclusive brokers are starting to hurt retailers, not as much as the corrupt employee, but in the same league.  One of the nation's largest retailers appointed a regional brokerage firm to represent them exclusively on the east cost (12 million customers in the market and they think that one firm knows everything and everyone, it's remarkable they made a comeback and didn't go bankrupt five years ago).  Anyway, the brokers have been working on one site for almost a year.  The "business terms" were done within a month, but the broker and developer are still fighting over the commission.  The broker has raised rent twice to get more money in commission, but not enough to get what they want.

 

I told the developer to tell the broker that he had another deal, so he'd let this one slide and within a week, the broker will be back (there is no other large box space available in the area), but he's scared to lose the deal, so they keep on negotiating.  It will be resolved someday, but the tenant will open a year later than they should have and they'll be paying an extra $1 or $2 in rent.  Is this good representation for the retailer?  I think not.

 

Numerous retailers appoint an exclusive broker who then appoints a sub-exclusive who then works with local brokers.  Everyone ends up splitting the commission and while the total dollars involved might be big, when it is divided by four or six companies, no one makes that much.  A "deal" might be worth $2 per sq.ft. in commission but because there are so many people involved, the broker "needs" $4 a foot and the developer complains that he can't afford it.  To justify the deal, rent ends up higher, the location is inferior or the good location deal is never done.

 

Now don't get me wrong, most brokers are decent and care, but the few whores screw it up for the rest of us.  A friend of mine represents a major apparel chain and while he "quotes" a high commission, that's his easiest negotiation, he's more concerned the site is good than maximizing commission.  He once even cut his commission to get a lower rent for the client.  Now that's a broker.

 

 

Retailers Seeking Northeastern Locations

 

CVS Pharmacy operates 1,375 locations in CT, GA, ME, MD, MA, NH, NJ, NY, PA, RI, VA, VT and Washington, D.C.  The drug stores occupy spaces of 8,000 sq.ft. to 11,000 sq.ft. in freestanding facilities.  Plans call for as many as 150 openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 18,000 within one mile.

  For more information, contact Dennis McMullen, CVS Pharmacy, One CVS Drive, Woonsocket, RI 02895; 401-765-1500, Ext. 4310, Fax 769-6593.

 

Foozles, Inc. does business as Foozles, An Extraordinary Bookstore at five locations in MA, PA, TN, TX and WA.  The book stores, selling books, computer software, magazines, stationary items, games, puzzles, compact discs, calendars and books on cassette, occupy spaces of 10,000 sq.ft. to 25,000 sq.ft. in freestanding facilities and strip centers.  Preferred co-tenants include Bed Bath and Beyond, Old Navy Clothing Co., Saks Off 5th concept and other category killers.  Plans call for as many as 12 openings in the coming 18 months.  Expansion will take place in the Mid-Atlantic and New England regions.  The company will also consider growth opportunities nationwide and typically signs leases running 10 years with three five-year options.

  National Book Warehouse, Inc. trades as Book Warehouse at 91 locations nationwide.  The stores, selling books, computer software, magazines, stationary items, games, puzzles, compact discs, calendars and books on cassette, occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in manufacturers outlet centers.  Preferred co-tenants include Polo, Spiegel and Liz Claiborne.  Plans call for as many as 15 openings in the coming 18 months.  Expansion will take place nationwide.  Leases running five years with options are typical.

  For more information on the above two companies, contact David Hinkle, 5915 Casey Drive, Knoxville, TN 37909; 423-558-8187, Ext. 29, Fax 558-6249.

 

The Book Market, Inc. trades as Book Market at 50 locations nationwide.  The book stores, which operate on a temporary basis, occupy spaces of 7,000 sq.ft. to 30,000 sq.ft. in freestanding facilities, regional malls and strip centers.  Plans call for 70 openings in the coming 18 months.  Expansion will take place nationwide.  Leases running two-to-three months with month-to-month options are typical.

  For more information, contact John Raines, The Book Market, Inc., 5915 Casey Drive, Knoxville, TN 37909; 423-558-8187, Ext. 30, Fax 558-6249.

 

Entertainment Management Corp. does business as Entertainment Cinemas at 12 locations in CT, MA, NH and RI.  The first run movie theaters occupy spaces of 20,000 sq.ft. to 30,000 sq.ft. in freestanding facilities, regional malls and strip centers.  Plans call for seven openings in the coming 18 months.  Expansion will take place in CT, ME, MA, NH, NY, RI and VT.  The company also retrofits former supermarkets.

  For more information, contact Harmon Lewis, c/o National Commercial Broker, Inc., 675 Massachusetts Avenue, Cambridge, MA 02139; 617-864-8887, Fax 491-8887.

 

U.S. Factory Outlets, Inc. trades as U.S. Factory Outlets at 23 locations nationwide.  The discount stores, selling general merchandise, apparel and closeouts at bargain prices, occupy spaces of 30,000 sq.ft. to 52,000 sq.ft. in regional malls, power and strip centers.  Growth opportunities are sought nationwide.

  For more information, contact Frederic Raiff, U.S. Factory Outlets, Inc., Seven Penn Plaza, New York, NY 10001; 212-563-3650, Fax 967-9872.

 

Nathan's Industries does business as Children's World at eight locations in NJ and NY.  The children's apparel stores occupy spaces of 6,000 sq.ft. to 18,000 sq.ft. in downtown store fronts, regional malls and strip centers.  Plans call for two openings in the coming 18 months.  Expansion will take place in NY.

  For more information, contact Nathan Chera, Nathan's Industries, 991 Southern Boulevard, Bronx, NY 10459; 718-589-3447, Fax 617-7533.

 

Edwards Super Food Stores operates 78 locations in CT, MA, NY and RI.  The supermarkets occupy spaces of 47,000 sq.ft. to 55,000 sq.ft. in freestanding facilities and strip centers.  Plans call for two openings in the coming 18 months.  Expansion will take place within the existing markets.

  For more information, contact Joyce Hamilton, Edwards Super Food Stores, 500 North Street, Windsor Locks, CT 06096; 203-627-2043, Fax 627-2047.

 

Windsor Card Shops, Inc. trades as Windsor Card at nine locations in NJ and PA.  The Hallmark card and gift stores occupy spaces of 3,500 sq.ft. in regional malls, power and strip centers.  Plans call for one opening in the coming 18 months.  Expansion will take place in DE.

  For more information, contact David Ricci, Windsor Card Shops, Inc., 1839 Hance Bridge Road, Millville, NJ 08332; 609-825-7755, Fax 825-4434.

 

Transmission USA trades as Mr. Transmission at 90 locations in AL, FL, GA, IL, IN, KY, MS, MO, NC, SC, OK, TN and VA.  The transmission repair and service units occupy spaces of 4,000 sq.ft. in freestanding facilities.  Plans call for as many as 15 openings in the coming 18 months.  Expansion will take place in Eastern and Southern regions.  The company is franchising.

  The company also trades as Dr. Nick's Transmissions at 17 locations in CT and NY.  The transmission repair and service units occupy spaces of 4,000 sq.ft. in freestanding facilities.  Plans call for as many as 15 openings in the coming 18 months.  Expansion will take place in Eastern region.  The company is franchising.

  Transmission USA also trades as Atlas Transmission at 29 locations in TX.  The transmission and service units occupy spaces of 4,000 sq.ft. in freestanding facilities.  Plans call for as many as 15 openings in the coming 18 months.  Expansion will take place in CA and TX.  The company is franchising.

  For more information on the above three companies, contact Barb Koutsky, Transmission USA, 4444 West 147th Street, Midlothian, IL 60445; 708-389-5922, Fax 389-9882.

 

Evans Group, Inc. trades as Evans Expressmart at 10 locations in NH and VT.  The convenience stores, which also sell gasoline, occupy spaces of 1,500 sq.ft. to 2,400 sq.ft. in freestanding facilities.  Preferred locations include interstate frontage.  Plans call for two openings in the coming 18 months.  Expansion will take place in the existing markets.  The company, which typically signs leases running 20 to 30 years, is looking for a location in southern NH along Route 101.

  For more information, contact Doug Evans, Evans Group, Inc., PO Box 246, Lebanon, NH 03766; 603-448-3400, Fax 448-2407.

 

Longhorn Steaks, Inc. trades as Longhorn Steaks at 62 locations in AL, FL, GA, NC, OH, SC, TN and VA.  The restaurants occupy spaces of 5,300 sq.ft. in freestanding facilities.  Plans call for 15 openings in the coming 18 months.  Expansion will take place in NJ, PA and MN.  The company, which will retrofit existing locations, prefers sites with a land area of one and a half acres and parking for 125 cars.

  For more information, contact Sandy Comer, Longhorn Steaks, Inc., 8215 Roswell Road, Atlanta, GA 30350; 770-551-5432, Fax 551-6686.

 

Ski Market, Inc. trades as Ski Market at 26 locations in CT, ME, MA, NH, NY and RI.  The stores, selling sporting goods, ski equipment, bicycles and sportswear, occupy spaces of 6,000 sq.ft. to 8,000 sq.ft. in freestanding facilities and strip centers.  Plans call for two openings in the coming 18 months.  Expansion will take place within the existing markets.

  For more information, contact Andrew Ferguson, Ski Market, Inc., 135 Second Avenue, Waltham, MA 02154; 617-890-1212, Fax 890-1811.

 

U.S. World, Inc. trades as U.S. World at two locations in NJ.  The men's apparel stores occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in regional malls.  Growth opportunities are sought in the existing market.

  For more information, contact Jay Jeong, U.S. World, Inc., 2858 Kennedy Boulevard, Jersey City, NJ 07306; 201-653-9577, Fax 653-5558.

 

Food City Markets, Inc. trades as Food City Markets at three locations in NY.  The supermarkets occupy spaces of 10,000 sq.ft. to 20,000 sq.ft. in freestanding facilities and strip centers.  Plans call for five openings in the coming 18 months.  Expansion will take place in the existing market.

  For more information, contact Paul Berger, Food City Markets, Inc., 500 Mamaroneck Avenue/ Suite 320, Harrison, NY 10528; 914-698-9400, Fax 698-9448.

 

Christy's Markets, Inc. trades as Christy's Markets at 150 locations in CT, ME, MA, NH, RI and VT.  The convenience stores occupy spaces of 2,400 sq.ft. to 3,000 sq.ft. in freestanding facilities.  Growth opportunities are sought in the existing markets.

  For more information, contact Peter Andrew, Christy's Markets, Inc., 22 Christy's Drive, Brockton, MA 02401; 508-586-0474, Ext. 209, Fax 586-4787.

 

PC Warehouse, Inc. trades as PC Warehouse at 87 locations nationwide.  The computer stores occupy spaces of 4,000 sq.ft. in freestanding facilities and strip centers.  Plans call for 10 openings in the coming 18 months.  Expansion will take place in CT, ME, MA, NH, NJ, NY, PA and VT.

  For more information, contact Mark Du, PC Warehouse, Inc., 174 Route 17 North/ Suite C, Rochelle Park, NJ 07662; 201-587-0910, Ext. 165, Fax 587-1734.

 

Big Y Foods, Inc. trades as Big Y Foods at 35 locations in CT and MA.  The supermarkets occupy spaces of 55,000 sq.ft. to 65,000 sq.ft. in strip centers.  Plans call for as many as 12 openings in the coming 18 months.  Expansion will take place in the existing markets.

  For more information, contact Stephen Hurwitz, Big Y Foods, Inc., PO Box 7840, Springfield, MA 01102-7840; 413-784-0600, Fax 781-2881.

 

Maxi Drug, Inc. trades as Douglas Maxi Drugs and Brooks Maxi Drug at 273 locations in CT, MA, NH, RI and VT.  The deep discount drug stores occupy spaces of 10,000 sq.ft. in freestanding facilities and strip centers.  Plans call for 30 openings in the coming 18 months.  Expansion will take place throughout the New England region.

  For more information, contact Peter Schmitz, Maxi Drug, Inc., 50 Service Avenue, Warwick, RI 02886; 401-825-3931, Fax 825-3996.

 

Syms operates 37 locations in NJ, NY, PA, MD, VA, MA, FL, IL, OH, MI, GA, MO, TX and NC.  The stores, selling family apparel at discount prices, occupy spaces of 35,000 sq.ft. to 45,000 sq.ft. in freestanding facilities, power and strip centers.  Plans call for three openings in the coming 18 months.  Expansion will take place in NY, OH and PA.

  For more information, contact Mr. Syms, Syms, Syms Way, Secaucus, NJ 07094; 201-902-9600.

 

CN Brown Co. does business as Big Apple Food Stores at 70 locations in ME, NH and VT.  The convenience stores occupy spaces of 700 sq.ft. to 2,000 sq.ft. in freestanding facilities and strip centers.  Plans call for as many as eight openings in the coming 18 months.  Expansion will take place in the existing markets.

  For more information, contact Mark Cyr, CN Brown Co., PO Box 200, South Paris, ME 04281; 207-743-9212, Fax 743-8357.

 

Lindt & Sprungli, Inc. trades as Lindt Chocolate Factory Stores at seven locations in NH and VT.  The stores, selling pre-packaged and specialty gift boxed chocolates, occupy spaces of 1,800 sq.ft. to 2,200 sq.ft. in freestanding facilities and strip centers.  Preferred co-tenants include women's specialty retail stores.  Plans call for 20 openings in the coming 18 months.  Expansion will take place in CT, ME, MA, NH, NY and RI.  Leases running three to five years, with options, are typical.

  For more information, contact Rene Bernard, c/o The Kane Company, 1 Mill Street, Dover, NH 03820; 603-749-1700, Fax 742-8156.

 

Holyoke Auto Parts & Equipment, Inc. trades as Hapco Auto Parts at 14 locations in MA.  The automotive parts stores occupy spaces of 4,000 sq.ft. to 8,000 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 Richard Halpern, Holyoke Auto Parts & Equipment, Inc., PO Box 311, Holyoke, MA 01041; 413-538-8225, Fax 535-2061.

 

Orloski Service Stations trades as Orloski Quik Marts at 43 locations in PA.  The convenience stores and service stations, occupy spaces of 1,500 sq.ft. in freestanding facilities.  Growth opportunities are sought in the existing market.

  For more information, contact Frank Orloski, Jr., Orloski Service Stations, 508 Blackman Street, Wilkes-Barre, PA 18702; 717-829-0888, Fax 829-4390.

 

Uncle Tony's Restaurant & Bar operates nine locations in MA and RI.  The Italian restaurants occupy spaces of 5,000 sq.ft. in freestanding facilities, specialty and strip centers.  Plans call for two openings in the coming 18 months.  Expansion will take place in MA and RI.

  For more information, contact Mark Shair, c/o M&J Associates, Inc., 450 Washington Street/ Suite 207, Dedham, MA 02026; 617-326-7370, Fax 326-2827.

 

Modells Sporting Goods operates 52 locations in NJ, NY and PA.  The sporting goods stores occupy spaces of 15,000 sq.ft. to 20,000 sq.ft. in downtown store fronts, power and strip centers.  Plans call for as many as 10 openings in the coming 18 months.  Expansion will take place in the existing markets.

  For more information, contact Aaron Fleshaker, Modells Sporting Goods, 34-24 Vernon Boulevard, Long Island City, NY 11106-5100; 718-956-8600, Fax 956-9635.

 

Moe's To Go Corp. trades as Moe's Italian Sandwich Shop at 15 locations in ME, MA and NH.  The restaurants, serving Italian sandwiches, occupy spaces of 200 sq.ft. to 1,200 sq.ft. in a variety of real estate settings.  Growth opportunities are sought along the Eastern seaboard.

  For more information, contact Mary Jane Keane, Moe's To Go Corp., 160 Winnicutt Road, Stratham, NH 03885; 603-778-6000.

 

Shaw's Supermarkets, Inc. trades as Shaw's Supermarkets at 94 locations in CT, ME, MA, NH and RI.  The supermarkets occupy spaces of 50,000 sq.ft. to 60,000 sq.ft. in freestanding facilities and strip centers.  Plans call for as many as 10 openings in the coming 18 months.  Expansion will take place in the existing markets.

  For more information, contact John Kelleher, Shaw's Supermarkets, Inc., PO Box 300, South Easton, MA 02375; 508-0293, Fax 580-0435.

 

Essentials trades as Essentials Plus at six locations in CT, NJ and NY.  The stores, selling professional and nationally branded beauty products, occupy spaces of 1,700 sq.ft. to 3,000 sq.ft. in regional malls.  Plans call for two openings in the coming 18 months.  Expansion will take place within the existing markets.

  For more information, contact Stephanie Greco, c/o Greco Consulting, 22 Brook Road, Tenafly, NJ 07670; 201-567-0477, Fax 567-7770.

 

Richdale Dairy Stores operates 50 locations in MA and NH.  The convenience stores occupy spaces of 1,000 sq.ft. to 4,000 sq.ft. in freestanding facilities.  Plans call for three openings in the coming 18 months.  Expansion will take place in the existing markets.

  For more information, contact Al Di Janni, Richdale Dairy Stores, 626 Lynnway, Lynn, MA 01905; 617-599-1995, Ext. 207, Fax 598-1377.

 

Fun Shop, Inc. trades as Fun Shop at five locations in PA.  The card and gift stores occupy spaces of 3,000 sq.ft. in regional malls, power and strip centers.  Plans call for one opening in the coming 18 months.  Expansion will take place in the existing market.

  For more information, contact Robert Lorrey, Fun Shop, Inc., 30 West Commerce Street, Shamokin, PA 17872; 717-644-3932, Fax 644-3935.

 

Restaurant Systems International trades as Everything Yogurt & Salad Cafe at 125 locations nationwide.  The restaurants, serving frozen yogurt and salads, occupy spaces of 500 sq.ft. to 1,200 sq.ft. in downtown store fronts and regional malls.  Plans call for 10 openings in the coming 18 months.  Expansion will take place in the Northeastern and West Coast regions.

  For more information, contact Ray Habib, Restaurant Systems International, 1000 South Avenue, Staten Island, NY 10314-3403; 718-494-8888, Fax 494-8776.

 

Sloan's Supermarkets, Inc. trades as Red Apple, Gristedes and Sloan's at 53 locations in NY.  The supermarkets occupy spaces of 8,500 sq.ft. in freestanding facilities.  Plans call for three openings in the coming 18 months.  Expansion will take place in the existing market.

  For more information, contact John Catsimatides, Sloan's Supermarkets, Inc., 823 11th Avenue, New York, NY 11119; 212-956-5803, Fax 247-4509.

 

Elangy Corporation does business as Barclay Jewelers and Littman Jewelers at 131 locations in CT, DE, FL, GA, MA, MD, NJ, NY, OH, PA and VA.  The jewelry stores occupy spaces of 800 sq.ft. to 1,500 sq.ft. in regional malls.  Plans call for 10 openings in the coming 18 months.  Expansion will take place in the existing markets.

  For more information, contact Leonard Littman, Elangy Corporation, PO Box 3100, Edison, NJ 08818-3100; 908-248-1100, Fax 248-9220.

 

Bargain Land trades as Deal Town Discounts at seven locations in NY.  The variety stores occupy spaces of 4,000 sq.ft. in freestanding facilities, power and strip centers.  Plans call for three openings in the coming 18 months.  Expansion will take place in the existing market.  The company is seeking spaces running 6,000 sq.ft. to 10,000 sq.ft. for its new Deal Town stores.

  For more information, contact Charles Gelo, Bargain Land, 260 Prospect Park West, Brooklyn, NY 11215; 718-965-4680, Fax 965-0083.

 

N. Siperstein, Inc. operates 17 locations in NJ.  The stores, selling paints, wallpaper and related accessories, occupy spaces of 10,000 sq.ft. in freestanding facilities.  Growth opportunities are sought in the existing market.

  For more information, contact Oscar Siperstein, N. Siperstein, Inc., 415 Montgomery Street, Jersey City, NJ 07302; 201-333-2215.

 

R.H. Kuhn Company, Inc. trades as Freight Liquidators Furniture Showroom at 14 locations in OH, PA and WV.  The home furnishing stores occupy spaces of 25,000 sq.ft. to 30,000 sq.ft. in freestanding facilities, power and strip centers.  Plans call for two openings in the coming 18 months.  Expansion will take place in NY and OH.

  For more information, contact Michael Kuhn, R.H. Kuhn Company, Inc., 923 Bidwell Street, Pittsburgh, PA 15233; 412-323-1300, Fax 323-2016.

 

Dick's Clothing & Sporting Goods operates 40 locations in CT, KY, MA, NY, OH and PA.  The stores, selling sporting goods, clothing and related equipment, occupy spaces of 45,000 sq.ft. to 60,000 sq.ft. in regional malls.  Growth opportunities are sought in PA and MI.

  For more information, contact Joe Queri, Dick's Clothing & Sporting Goods, 400 Cherrington Parkway, Coreopolis, PA 15108; 412-269-4400, Fax 269-4492.

 

Frankie's Franchise Systems trades as Frankie's at seven locations in CT.  The restaurants occupy spaces of 2,500 sq.ft. in freestanding facilities and strip centers.  Growth opportunities are sought in CT and MA.  The company is franchising.

  For more information, contact Van Dicorpo, Frankie's Franchise Systems, 643 Lakewood Road, Waterbury, CT 06704; 203-756-2935.

 

Lechter's, Inc. trades as Lechter's Housewares at 478 locations nationwide.  The stores, selling housewares, occupy spaces of 3,000 sq.ft. to 7,000 sq.ft. in downtown store fronts, regional malls and strip centers.  Plans call for 10 openings in the coming 18 months.  Expansion will take place in MA, NJ, FL, OH, NV and TX.

  For more information, contact Frank O'Neill, Lechter's, Inc. 1 Cape May Street, Harrison, NJ 07029; 201-481-1100, Fax 482-5680.

 

Monroe Muffler operates 260 locations in CT, DE, IN, MA, MD, ME, NC, NH, NJ, NY, OH, PA, RI, SC, VA, VT and WV.  The publicly held company provides all under car care services while using freestanding facilities running 4,500 sq.ft. on at least one-half an acre on outparcels of shopping centers.  Plans call for 60 openings in the coming 18 months.  Expansion will take place in the existing markets.

  For more information, contact Joe Pacera, Monroe Muffler, 401 Whitehorse Pike, Oaklyn, NJ 08107; 609-858-5337, Fax 858-1174.

 

Family Toy Warehouse operates 25 locations in PA, OH and IN.  The toy stores occupy spaces of 20,000 sq.ft. in freestanding facilities and strip centers.  Plans call for as many as eight openings in the coming 18 months.  Expansion will take place within the metropolitan areas of Philadelphia, PA; Pittsburgh, PA and Cleveland, OH.

  Charles J. Becker and Brother trades as Teacher-Parent Showroom at six locations in NJ and PA.  The stores, offering educational toys and school supplies, occupy spaces of 6,000 sq.ft. in power centers with at least three national anchor tenants.  Plans call for the opening of four units in the coming 18 months.  Expansion will take place in the New York and Philadelphia metropolitan areas.  Preferred demographics include a population of 200,000 within five miles earning $50,000 as the average income.  Leases running five years are typical.

  Windshields America operates 300 locations nationwide.  The automotive glass replacement centers occupy spaces of 2,000 sq.ft. in freestanding facilities.  Preferred co-tenants include Pep Boys and NAPA.  Growth opportunities are sought in the Philadelphia, PA metropolitan area and central NJ.  Preferred demographics include a population of 150,000 within five miles earning $40,000 as the average income.  Leases running five years are typical and the company prefers a vanilla shell with drive-in doors.

  For more information on the above three companies contact, David Vender, c/o Equity Properties, 1990 Sproul Road, Bromall, PA 19008; 610-353-6300, Fax 353-9256.

 

Wegmans Food Markets operates 50 locations in NY and PA.  The supermarket and drug store combination stores occupy spaces of 75,000 sq.ft. to 100,000 sq.ft. in freestanding facilities, power and strip centers.  Plans call for five openings in the coming 18 months.  Expansion will take place in the existing markets.

  For more information, contact Ralph Uttaro, Wegmans Food Markets, 1500 Brooks Avenue, Rochester, NY 14692-0844; 716-328-2550, Fax 464-4636.

 

The Breadstick Baker, Inc. trades as The Breadstick Baker at two locations in PA.  The stores, selling breadstick snacks, occupy spaces of 300 sq.ft. to 500 sq.ft. in food courts of regional malls.  Plans call for eight openings in the coming 18 months.  Expansion will take place in DE, NJ and PA.  Preferred demographics include a population of 50,000 within three miles.  The company, which is franchising, typically signs leases running three to five years with options.

  For more information, contact Mitchell Insel, The Breadstick Baker, 1362 Naamans Creek Road, Boothwyn, PA 19061; 610-497-1447, Fax 485-6439.

 

 

Buyers & Sellers of Commercial Properties

 

Shoe-Town, Inc. is selling retail sites in CT, NY, NJ, MD and VA.  The stores range in size from 4,000 sq.ft. to 8,000 sq.ft. and are located in strip centers and freestanding facilities.

  For more information, contact Cindy Haller or Steve Albert at (201-785-1900).

 

DJM Asset Management, Inc. is conducting a bankruptcy auction on February 12 for 32 El Bee Shoe locations in OH, PA, MI, IL, IN and KY.  The stores range in size from 3,000 sq.ft. to 7,000 sq.ft. and properties can be withdrawn from auction for prior sale.  The company is conducting a bankruptcy auction on February 12 on Margo's locations in TX, OK, LA, AR, NM and TN.  The stores range in size from 3,000 sq.ft. to 6,500 sq.ft. and properties can be withdrawn from auction for prior sale.  The company is also liquidating SaveMart, Inc. locations throughout New York City, NY.  Properties are located in proven retail neighborhoods in primary, high traffic locations in shopping centers and regional malls.  Long term leases with below market rents are available.  The company also has the listing to sell 125 former Fashion Bug stores nationwide.  The stores range in size from 6,000 sq.ft. to 12,000 sq.ft. and are located in major strip centers and regional malls.

  For more information, contact Andrew Graiser, Rick Damico or James Avallone at (212-922-1200), Fax (922-9155).

 

Kin Properties, Inc. is in the market to acquire single tenant properties nationwide.  Retailers of interest include Kmart, Target, Wal*Mart and supermarkets.  Industrial properties will also be considered.

  For more information, contact Lee Cherney at (914-683-8080), Fax (683-8088).

 

H. Stephen Kirschner, Inc. has the listing to sell regional and community shopping centers with GLAs ranging from 10,000 sq.ft. to two million sq.ft.  A total of over 70 million sq.ft. is available for sale.  The company is also selling more than 24 million sq.ft. of net leased assets.  Both individual and portfolios are being offered with short and long term leases.  Tenants are rated BBB+ and higher by S&P.  The company also represents a pension fund in the market to acquire power centers having GLAs of at least 200,000 sq.ft. and regional malls having GLAs of at least 400,000 sq.ft.  Portfolios are preferred as are value added opportunities.

  For more information, contact H. Stephen Kirschner at (516-462-2200), Fax (499-3322).

 

Acadia Management Company LLC is seeking acquisition and investment opportunities nationwide.

  For more information, contact Acadia Management Company at (800-227-5570), Fax (516-767-8834).

 

Letovsky Real Estate Corporation has the listing to sell a new 20-year net lease in MA.  The asking price is $8 million and financing is available.  The company also has the listing to sell a new 20-year net lease of a drug store in Atlanta, GA.  The asking price is $1.5 million. and financing is available.

  For more information, contact Clifford Letovsky at (514-933-4300), Fax (933-5430).

 

Coldwell Banker Mountain West has the listing to sell 21.38 acres of land in Salem, OR.  The site, which is ready for development, is zoned retail/commercial/office/residential.  Up to 10,000 sq.ft. of single retail use is permitted.  The asking price is $4.2 million and financing is available.  The company has the listing to sell a build-to-suit space in Salem, OR.  The site, which is zoned retail/commercial/office and is located at an intersection with traffic counts in excess of 30,000 cars per day, has 363 feet of frontage.  Up to 30,000 sq.ft. of space can be constructed.  The asking price will be determined by construction type and T.I.'s.  The company also has the listing to sell a 20,000 sq.ft. retail building in Salem, OR.  The project features easy access to parking and I-5 and has dock and grade level shipping and receiving doors.  The asking price is $1.1 million and financing is available.

  For more information, contact E. William Fry, Jr. at (503-588-3522), Fax (588-3514).

 

McCoon Commercial Real Estate has the listing to sell 125 acres of land in Turlock, CA.  The site will be developed for big box retail uses.  The asking price is $8.1 million.  The company also represents a buyer in the market to acquire NNN properties in Northern CA.  Prices up to $1.5 million will be considered.

  For more information, contact Don McCoon at (209-667-1196), Fax (667-1197).

 

CB Commercial has the listing to sell Scandia Plaza in San Diego, CA.  The 38,000 sq.ft. project is 100% leased to four tenants and has an NOI of $320,000.  The asking price is $3.3 million.

  For more information, contact David Hagglund at (619-546-4614), Fax (546-3985).

 

Lion Properties LLC is in the market to acquire supermarket anchored shopping centers with upside potential in Southern CA.  Prices ranging between $5 million and $15 million are preferred and all cash transactions are possible.

  For more information, contact Leonard Hortizk at (303-444-7400), Fax (444-7489).

 

The Prudential Florida Realty represents a client in the market to acquire shopping centers having GLAs ranging between 25,000 sq.ft. and 200,000 sq.ft. in the Southeast and Southwest.  Preferred properties are in need of rehab or management.

  For more information, contact John Yatsco at (813-367-2793), Fax (367-8733).

 

 

Conversions, Expansions & Renovations

 

Massachusetts Mutual Life Insurance Company and its subsidiary Cornerstone Real Estate Advisers, Inc. recently started phase I construction at Baystate West, a 1.5 million sq.ft. mixed-use project in Springfield, MA.  Phase I includes the renovation of the retail spaces which will feature a 56,000 sq.ft. U.S. Factory Outlet store on two levels.  The store is expected to open during August.  Other retailers at the site include Rave, Petrie Stores, Stuart, Weathervane, M. Wear, Casual West and Edward's Books.  Negotiations are underway to bring a 40,000 sq.ft. junior department store and a 15,000 sq.ft. furniture retailer to the project.  Other uses at the site include a 29-floor office building, a 16-floor Marriott Hotel, a campus branch of Western New England College and radio station WNNZ.  Phase II of the project will include up to 180,000 sq.ft. of retail and entertainment tenants.

  For more information, contact Paul Bacon of Cornerstone Real Estate Advisers at (413-788-3419).  For leasing information, contact Carol Todreas of Todreas/Hanley Associates, Inc. at (617-482-7008).

 

Tanger Factory Outlet Centers, Inc. recently opened phase II at its Tanger Outlet Center in Terrell, TX.  Phase II includes 12 stores and brings the project's GLA to 177,435 sq.ft.  Stores that opened in phase II include Aileen, American Tourister, Avia, Big Dog, Casual Corner, County Seat, Factory Brand Shoes, Perfumania, Rockport, SAS Shoes, Westport Ltd. and Vineyard Outlet.  The company also recently opened phase III of its outlet center in Locust Grove, GA, giving the project a total GLA of 214,700 sq.ft.  Stores opening in phase III include Aileen, Adolfo II, Bon Worth, Casual Corner Woman, Country Clutter, Jockey, Leather Loft, Lovable, Music for A Song, New York Jewelry, Perfumania, Rue 21, Toy Liquidators, Norty's, Pro Image and Westport, Ltd.

  For more information, contact Tanger Factory Outlet Centers, Inc. at (910-274-1666).

 

Heitman Retail Properties plans to begin a $100 million renovation and expansion at Lloyd Center in Portland, OR during the third quarter of this year.  The 1.2 million sq.ft. project, which is anchored by a 297,997 sq.ft. Meier & Frank store, a 141,000 sq.ft. J.C. Penney Department Store, a 132,614 sq.ft. Nordstrom Department Store, a 78,600 sq.ft. J.J. Newberry store, a 31,000 sq.ft. Safeway and a 12-theater movie complex.  The plan calls for the redevelopment of an eight-square block area immediately north of Lloyd Center which will create a pedestrian plaza of food, entertainment and mini-anchor tenants.  Also planned is a two-level, 100,000 sq.ft. anchor space connecting the existing mall to the southern end of the pedestrian plaza and a 250 room hotel.  Construction is expected to be completed by Fall 1997.

  For more information, contact Heitman Retail Properties at (312-855-5700).

 

 

The Changing Face of Management

 

by Alan Alexander, SCSM, CPM

In a recent My Way, Ted made many observations regarding the likely changes in the shopping center industry in the coming year.  Even if the predictions are not 100% on target, there is little doubt that the industry is facing many challenges in the coming year and many of those opportunities will require a greater flexibility in the management approach.

 

  As the management role in shopping centers has evolved over the years, it has changed dramatically.  Twenty or so years ago, most of our shopping centers were owned by local developers who owned or assembled the land, negotiated with the tenants, oversaw the construction of the center and oversaw the management once it was up and running.  We have moved away from that form of ownership to the ownership by institutions which requires a completely different approach to the operation of shopping centers.

 

  First, and most important, the newer approach is much more sophisticated and analytical.  In past years we often managed shopping centers for entrepreneurs who had done it all with their shopping centers.  They did not operate from budgets, leases were not analyzed for rate of return and they did not have contracts for the services.  These centers were well developed, well leased and well managed, but without much of the paper work that we require today.  This approach would not work in the complex environment of the institutional owner and we, as managers, must be aware of those changes and be prepared to be responsive to the new needs.

 

  Today's sophisticated management approach starts with a complete and thorough understanding of the market place in which the shopping center operates.  We are, after all, in the retailing business, not the shopping center business.  Our shopping centers must serve the public needs within the trade area.  We cannot shape the market place or bend the people's desires to what we have to offer, but rather we must fully understand those needs and do everything that we can do to be sure that our shopping center and our merchants do all that is possible to serve that need.

 

  We must be competitive within our market place.  Most shopping centers need more income that is produced by market rents and lease terms, but the reality is that the market place dictates.  We must be fully aware of who our competition really is and we must know what rent they are charging, what their extra charges amount to and what kind of job they are doing in that market.  If we decide we are clearly better than the competition and up the ante in terms of rents and lease terms, we had better be right.

 

  We must be thinking "tenant retention" with every decision we make every day.  It was too easy in past years to take the position that the tenant was only an income stream and if this one left there was a better one waiting and one who would pay more rent and be a better tenant.  Some centers still have the power to ignore the tenant and still be successful, but most sophisticated owners and managers realize the value of a good tenant and are working very hard, day in and day out, to treat the tenant like the client and/or customer of the center that he or she is.  We are not suggesting that leases not be enforced in an effort to gain tenant cooperation, but rather treating the tenant in a courteous and fair manner.

 

  In addition to all of the obvious management activities, the 90s have added to our list of "things to do" with much more concern for security in even our smallest of shopping centers.  We must be heavily involved in conservation of water, electricity and gas not only to be a good citizen in the community, but to keep our operating costs at the optimum level for the benefit of landlord and tenant alike.  We have to be involved in recycling in our centers.  Again, there are economic incentives for recycling, but one also has to set a good example.  We have to be concerned with hazardous substances.  We may well have pre-existing conditions within our shopping center site, we may have contractors that can cause hazardous substance problems at any time, and we all have many tenants who's uses can well become hazardous materials problems if not looked after.  We must be concerned by CFC's in our air conditioning equipment.  We have to meet the requirements of the ADA (American Disabilities Act), we have to be sure that we are not discriminating in leasing and/or hiring of employees.  We have to be sure that our employees and contractors understand and comply with sexual harassment guidelines.  Tenant audits have put our administrative activities under the microscope.  It is a very complex environment that we operate within today.

 

  In addition to all of the "new" activities, we have seen management fees and salaries either decline or stagnate during the recent difficult economic times.  Most shopping center managers are carrying a much bigger load than they did five years ago, their salaries have not increased proportionally and they have many more things to worry about.  On the other side of that coin, those that are still employed in the field are happy to be there as there are many that are now outside of the business through no choice of their own.

 

  Managing shopping centers is one of the most exciting fields that one can imagine.  It can be frustrating, exciting, exhilarating, exhausting, but it is never dull or boring.  The effective shopping center manager today will not only be aware of the changes in the industry, but will be anticipating those changes and will be working on solutions in a pro active fashion rather than waiting until they happen and then wondering what to do about them.  The industry faces many problems in the coming year, but to the astute manager the word "problem" is just a synonym for "opportunity."

  Alan Alexander is a Senior Vice President at Woodmont Real Estate Services, Inc. in Belmont, CA.

 

 

Isn't It Time You Started Surfing The Net?

 

by Stewart F. Gross, CLS

Can you imagine negotiating a cap rate or breakpoint using long division?  Well, that's what you are doing if you're not putting on your wetsuit, waxing up your board and surfing the Net.

 

  The wondrous Internet... by now, unless you've been living in the back woods (or a cave) you've heard about it.  It's pretty intimidating stuff.  Finally, after I learned to be somewhat proficient with my computer I now have to learn something new.

 

  After spending the bulk of my free time (typically 10 free hours) on a host of servers (CompuServe, Prodigy, America Online), I felt lost; almost like I felt when my computer crashed for the very first time.  Only after reading books like Modem for Dummies and Internet for Dummies, various computer and Internet magazines and newspaper articles did I realize that like learning to use the computer to help me with my business, the Internet needs to be studied and experimented with, very much like any new program that you load into your computer.

 

  Believe me, I'm still in a kneeling position as I surf the Net and like surfing the ocean, sometimes you fall off the board, take in some water and need to start over again. Fortunately, it doesn't hurt your body as much when you loose your modem connection or when you have to turn off your computer and start over again.

 

  Surfing the Net is very much like surfing in the ocean only we are substituting water with information.  The Internet, only three short years ago, was exclusively used by academia and the military, unable to be accessed by you or me.  Just think of the Internet as a network or networks.  As of year end 1995, there were over 70,000 networks interlinked around the world.  Every 30 minutes of everyday a new network is added.  With accessibility to everyone, the Net has mushroomed to nearly 6.6 million users in over 159 countries.  It is truly amazing.

 

  Many organizations and companies are using the Net for E-mail for their inter and intra office communications.  It's fast, efficient and cheap.  Everyone is only a local call away, no matter where you are in the world (henceforth the name World Wide Web).  Through the use of "home pages", companies can update information for use by their employees, and even more importantly, their customers.

 

  Our challenge as retail professionals is to create a forum (a type of "RetailNet") to access the information that we need to service our clients better and more efficiently.  The Net, although not at this point in time a substitute for the marketing of real estate, will over time become as acceptable and accessible as your telephone, fax or mail.  The sooner that you take the time to experiment and learn about it, the sooner you will be able to bring your business into the 21st century.

  Stewart F. Gross, CLS, can be reached at Florida Shopping Center Group at (305-262-8877) or via E-Mail at 144out@icanect.com.

 

  The following are some retailers and real estate owners that are gettimh their feet wet by surfing the Net:

 

The National Association of Real Estate Investment Trusts (202-785-8717) recently established a World Wide Web page on the Internet.  The page was developed to further advance the understanding of the REIT concept.  It can be accessed at http://www@nareit.com.

 

Shaw's Supermarkets, Inc. (508-378-7211) recently opened a home page on the World Wide Web on the Internet.  The company is the first supermarket chain in the Northeast to do so.  The home page features recruiting information and job listings; store locations, new products and recipes, editorials and information on food retailing and links with home pages of products available at Shaw's.  Beginning in 1997, shoppers will be able to shop at home, order groceries via phone or fax and have them delivered.  The page can be accessed at http://www.shopat.com.shaw's.

 

Drone & Mueller and Associates (314-434-3141) recently launched interShop America, a World Wide Web site dedicated to promoting malls, strip centers and outlet centers on the Internet.  The home page allows shoppers to explore and shop at malls around the world.  Unlike a typical cybermall which houses various retailers, interShop America features actual malls.  When "entering" a mall, customers are greeted by a mall directory and list of services and features offered.  Products at various malls are also available through e-mail.  To access the page, type: http://www.intershopamerica.com.

 

Spiegel, Inc. (708-769-2596) plans to release its 1996 Spring/Summer catalog, featuring over 3,000 items, on CD-ROM this month.  The CD-ROM will allow shoppers to view various sections at a glance, browse through an editor's choice section, zoom in for a closer look at an item, create a "shopping cart" to make purchases, and custom search for items, seizes, brands and price ranges.  The CD also allows shoppers to connect to Spiegel's Internet site.  The program will be available in both Windows and Macintosh formats and costs $12.

 

TKO Real Estate Advisory Group (609-587-6200) recently created a temporary Home Page for Jamesway Corporation so it could market its properties for liquidation and TKO also created home pages for DJM Asset Management, Inc. on behalf of its clients El-Bee Shoes, Margos, Save-Mart and Fashion Bug.

 

 

Who's Opening and Where...

 

The Gap, Inc. (415-952-4400) plans to open as many as 75 Old Navy Clothing Co. stores this year.

 

Dollar Tree (804-857-4600), which operates more than 450 discount stores in 21 states, is looking to open 100 units this year.

 

Weathervane Seafood Restaurants (207-439-0335) plans to open a unit in ME this year.  The company currently operates 16 restaurants in MA, ME, NH, NY and VT.

 

Office Depot (407-265-4258) recently opened three 45,000 sq.ft. stores in Westbury, NY; North Brunswick, NJ and Totowa, NJ.

 

Home Depot (404-433-8211) recently filed a permit to build a 130,000 sq.ft. store in Downey, CA.  If the plans are approved, the store could be opened before the end of this year.

 

Barnes & Noble, Inc. (212-633-3512) plans to open a 25,000 sq.ft. Barnes & Noble Superstore at The Terrace at Hamilton Place in Chattanooga, TN during Spring 1997; a 41,000 sq.ft. unit at The Foothills Mall in Tucson, AZ during the summer and a 28,000 sq.ft. store in Seattle, WA.

 

The Limited, Inc. (614-479-7000) plans to open a 6,338 sq.ft. Limited, a 6,601 sq.ft. Campagnie Internationale Express, a 5,757 sq.ft. Lane Bryant, a 5,547 sq.ft. Victoria's Secret, a 1,883 sq.ft. Bath and Body Works and a 5,413 sq.ft. Structure Men's Store at Logan Valley Mall in Altoona, PA.

 

Ralphs Grocery Company (310-884-9000) recently opened a 46,000 sq.ft. supermarket in West Hollywood, CA.  The store includes expanded produce, floral, dairy and grocery departments and offers a European-style seafood department, an in-store bakery and a full-service delicatessen.

 

Darden Restaurants, Inc. (407-245-4000) plans to open a chain of Caribbean-food restaurants called Bahama Breeze Caribbean Grille.  The first unit is expected to open this month in Orlando, FL and the company plans to open 30 units a year by 1999.  The concept will feature plantation architecture and Caribbean food.  The company is hoping that the new venture can fill the void created by the failure of its China Coast restaurant chain.  The company also operates The Olive Garden and Red Lobster concepts.

 

Huffman/Koos (201-343-4300) recently opened a 62,500 sq.ft. furniture store at Home Furnishings Factory Outlet in Morgantown, PA.

 

Grill Concepts, Inc. (310-820-5559) plans to open a 5,600 sq.ft. Southern California Daily Grill restaurant at the Irvine Business Complex in Irvine, CA during the Summer.  The company, which operates six units, is planning to open two more restaurants this year.

 

Circuit City Stores, Inc. (804-527-4000) plans to open CarMax used car lots in Charlotte, NC; Orlando and Tampa, FL this year.  Additional lots are being planned for South Florida, Dallas-Fort Worth, TX area, Houston, TX and the Washington, D.C.-Baltimore, MD area for opening during 1997 and 1998.

 

Winn-Dixie (904-783-5000) is constructing a 45,000 sq.ft. supermarket in Gulfport, MS.  The store is expected to open during the summer.

 

The Italian Oven Restaurant (412-537-5380) recently opened a 164-seat restaurant at North Huntingdon Square in North Huntingdon, PA.

 

Wendy's International (614-764-3099) is building a restaurant in Fort Mill Township, SC.

 

 

New Construction

 

Devcon Enterprises, Inc. recently broke ground on Torrington Fair Shopping Center in Torrington, CT.  The 200,000 sq.ft. project will be anchored by a 98,511 sq.ft. Wal*Mart, a 62,525 sq.ft. Price Chopper Supermarket, a 2,150 sq.ft. McDonald's Restaurant and 35,814 sq.ft. of retail space.  The center is expected to open during late Fall.

  For more information, contact Scott LaBonte of Devcon Enterprises, Inc. at (203-233-2114), Fax (236-8181).

 

ARC Properties, Inc. is currently constructing South Brunswick Plaza in South Brunswick, NJ.  The 175,000 sq.ft. project features 1,500 feet of frontage on U.S. 1 which generates a daily traffic count in excess of 50,000 vehicles.  Spaces are available for lease.  The company is planning to break ground on Edison Cross Roads in Edison, NJ in early 1997.  The 270,000 sq.ft. power center will feature a 60,000 sq.ft. supermarket, five to seven big box retailers and space for as many as three restaurants on outparcels.  Turnover of the project is expected during late 1997.

  For more information, contact Ed Jaten of ARC Properties, Inc. at (201-345-1900, Ext. 114).

 

CBL & Associates Properties, Inc. recently broke ground on The Terrace Shopping Center at Hamilton Place in Chattanooga, TN.  The 160,000 sq.ft. project will be anchored by a 53,750 sq.ft. HomePlace store, a 43,548 sq.ft. Circuit City store and a 25,000 sq.ft. Barnes & Noble Superstore.  Space for additional retail tenants will also be constructed.  HomePlace is expected to open during November and Circuit City and Barnes & Noble are expected to open during 1997.

  For more information, contact Fox Johnston, Project Manager at CBL & Associates Properties, Inc. at (800-333-7310).

 

Horizon Group recently acquired 66 acres of land from Northern Lakes Development in Johnson Creek, WI and plans to construct a 300,000 sq.ft. factory outlet mall on the property.  No date for construction to begin has been set and no tenants have been signed.

  For more information, contact Horizon Group at (616-728-5170).

 

 

Store Closings

 

Venture Stores, Inc. (314-281-5500), as part of its repositioning from a discount general merchandise chain into a family value department store retailer, plans to close two stores in the suburban Chicago, IL area; two in Houston, TX; five in Indianapolis, IN and one unit in Champaign, IL by the end of next month.

 

Ames Department Stores, Inc. (203-257-2659) plans to close 17 underperforming stores in ME, NY and PA.  Stores planned to close are located in Caribou, Houlton, Madawaska, Presque Isle and Skowhegan, ME; Batavia, Greece, Lockport, Niagara Falls, Ogdensburg, Rochester (two stores), Rome, Warsaw, Waterloo and Webster, NY; and Mansfield, PA.  Ames is closing the underperforming stores in an effort to pursue potential growth opportunities.

 

House of Fabrics, Inc. (818-995-7000), which operates 361 House of Fabrics, SoFro Fabrics, Fabricland and Fabric King stores in 34 states, plans to close 86 stores and its distribution center in SC in an effort to raise money that will be used to reduce its debt to help the company emerge from bankruptcy.

 

 

Lease Signings

 

Pfeil & Company, Inc. (518-581-8280) leased 6,300 sq.ft. to Video World at The Crossing in Clifton Park and Halfmoon, NY.

 

Summit Realty Leasing and Management Corp. (407-368-2043) leased 7,000 sq.ft. to Don Olson Tire and Auto Centers in Lauderhill, FL and 718 sq.ft. to Nicole's Place, Ltd. in Fort Lauderdale, FL.

 

Divaris Real Estate, Inc. (804-497-2113) leased 7,100 sq.ft. to Scan World for a furniture store at Hilltop Plaza Shopping Center in Virginia Beach, VA; 29,115 sq.ft. to Regal Cinemas at York River Crossing Shopping Center in Gloucester, VA and 1,970 sq.ft. to Victoria's Fire restaurant at Festival Marketplace in Williamsburg, VA.

 

Boyd, Page & Associates (713-877-8400) leased 8,856 sq.ft. to Ulta3 Cosmetics and Salon and 4,500 sq.ft. to La Madeleine French Bakery & Cafe at The Market at Town Center in Sugar Land, TX; 8,400 sq.ft. to Ulta3 Cosmetics and Salon at Village at West Oaks in Houston, TX and 14,660 sq.ft. to Fabri-Centers of America in Houston, TX.

 

Robert Martin's Space Specialists, Inc. (914-347-4477) leased 5,000 sq.ft. to Woodworkers Warehouse in Port Chester, NY; 5,000 sq.ft. to Woodworkers Warehouse and 4,500 sq.ft. to Trend-lines Golf Day at Triangle Shopping Center in Yorktown Heights, NY.  The company also leased space to BJ's Wholesale Club in Yorktown Heights, NY; space to TJ Maxx in Mount Kisco, NY and space to Staples in Mount Kisco, NY.

 

Neal Realty & Investments, Inc. (954-568-0530) leased 4,310 sq.ft. to Moe's Gourmet Bagel at Cypress Run Square in Coral Springs, FL; 25,460 sq.ft. to Sam Ash Music Corporation at Pepper Tree Plaza Shopping Center in Margate, FL; 2,500 sq.ft. to Dolly Madison at Reef Plaza in Lauderdale Lakes, FL and 3,108 sq.ft. to Optical Outlets Express at Delray West Plaza in Delray Beach, FL.

 

Solomon Associates (215-564-8200) leased 43,000 sq.ft. to Baby Superstore at The Plaza at Oxford Valley in Oxford Valley, PA; 40,000 sq.ft. to Baby Superstore at Kmart Center in Deptford, NJ; 1,800 sq.ft. to Starbucks in Princeton, NJ; 3,000 sq.ft. to Rainbow in Upper Da