Issue 9 for the week of March 15, 1996

The Dealmakers Issue Number 9 for the week of March 15, 1996.

My Way by Ted Kraus

While it's still a little under two months away, every indication is that the Las Vegas ICSC show should be decent, not great but decent. Attendance should be high (the good news), but because of bankruptcies and mergers there are fewer tenants to lease to, and more importantly, fewer tenants wanting to lease and a totally different environment than there was just a year ago.

Making matters worse, many centers are beginning to encounter a cash flow crunch because of the increase in Chapter 11 filings, meaning brokers, suppliers and mortgagees get paid slower (with the broker being paid the slowest).

Further complicating matters, while there's more money available for financing than ever, obtaining a permanent mortgage is becoming more difficult because the lender wants the "perfect deal." Having Bradlees and a regional supermarket just won't cut it anymore. That's making it extremely difficult to expand existing projects or replace a mini-perm. In other words, everyone wants to loan you money as long as you don't need it.

Oh, before I forget, we're setting up a special display at our booth at the Vegas show (612 Sixth Avenue) for our sister publication, Real Estate Investor's Classified, where we'll be distributing complimentary copies of the publication. If you have any commercial property for sale, provide financing or want to list your acquisition requirements, fax a request to 609-587-3511 or send e-mail to ted.kraus@dealmakers.net and we'll send you the free listing form. It's totally free to list, no obligation or cost, so what do you have to lose? We need the forms back by April 15th.

I often wonder, "if I'm as smart as I think I am, than why aren't I rich?" A long, long time ago in a different life, I did work for or represented various outlet/offprice retailers, such as Bed Bath & Beyond and Hit Or Miss. (FYI, we're talking 14 to 18 years ago). In both cases, I got into "debates" with the principals of both companies, with my position being the future of their companies was NOT in outlet/off-price centers but in regional enclosed malls or strip centers across from the mall. (In those days, there was no such thing as a "Power Center.")

None would listen to me and since they were rich and I was not, I started to suspect that maybe I was wrong (but down deep I knew I wasn't). Because I had a tendency to get into major debates, it was decided one of us had to leave and it always ended up being me elected to go. Bed Bath & Beyond did decide against expanding into the outlet industry and instead went the megastore route; the rest of that story is history. Hit or Miss didn't listen, they wanted to continue doing what they always did in the past instead of changing with the times and their story too is history.

Anyway, "what is he talking about?" is probably crossing your mind. Well, I just received the March issue of Value Retailing News and the cover "shouted" "Power Outlets New Close-In Projects Combine Outlet, Big Box And Entertainment Concepts". The headline gave the impression they had just discovered the Holy Grail. Hell, I've been ranting and raving for years that the future in not in outlet, offprice, value, discount or traditional centers but in combinations thereof. I also have been known to say that the days of the outlet center being developed in the middle of nowhere are also numbered. This article proclaimed that this new concept of "Power Outleting" is bringing the center closer to the population base... what a revolutionary concept, make the center convenient for the customer.

It took nearly 20 years, but history is proving me right. What's even more interesting is the ICSC just completed the acquisition of Value Retailing News and their conferences. So the industry has come full circle and the mainstream retailing association is promoting value retailing. Here's my next prediction, within four years (more likely two to three) the ICSC will "fold" Value Retailing News Conferences into their shows and it will cease to be a separate entity; but that's alright, Terry is a great guy and is entitled to be a millionaire. Hopefully the ICSC will be able to persuade some of the outlet retailers to attend our regular dealmaking events and we'll all come out ahead.

I must be on every seminar mailing list known to man and a day doesn't pass when I don't receive a seminar flier stating "Learn about the latest and best trend ever in retailing: Entertainment Centers, Restaurant Centers, Barmitzvah Centers, or whatever." What I have learned by attending some of these seminars is they usually don't know what they are talking about and in a high percentage of the cases, by the time the seminar is held, the trend is passe.

Of course, the king topic of seminars today is the Internet and they're not cheap to attend, running anywhere from $495 to $1,395 not including airfare, hotel, etc. These seminars make the real estate/retailing seminars look brilliant. Besides having speakers that speak a different language (computerese) than the attendees, they contend the Internet can cure everything including cancer. It can't, never will and the Internet will come into its own only when either the cable companies or phone companies start to provide inexpensive, high speed access to the WEB. I won't bore you with the details, but most of you will be bored out of your mind going to most Home Pages, not because of the content, but because "downloading" the graphics take so long. Real estate people are not known for their patience and there are some Pages that can take five to seven minutes to download one "page," which means you can stare at a blank computer screen for five minutes bored out of your mind. The Internet is great, but it's still not "there" yet.

As many of you know, we now do Home Pages (but not windows) and I was talking to one person who had questions about doing a Home Page. He basically wanted to take ads that he had placed in our publication and others and "put'em up." I tried to explain that was a waste of time and money and candidly, was stupid (I think that's when he got offended, since he stopped talking after I said that). Stagnant ads do not belong on the Internet, or I should say, the WWW. The term "Net" refers to e-mail, FTP, WWW, Home Pages, mailing lists, etc., but most people think of the Internet and WWW as the same, it's not. Anyway, Home Pages are meant to be interactive, not stagnant, i.e. after viewing a site plan on a center for sale/lease, click a button and download the P&L statement, demographics, etc. Click another icon and view an aerial, click another and download the operating numbers in a Lotus database.

I think everyone should be on-line, but don't have expectations it's the "end-all;" it's just another tool, an important tool, but a tool.

Retailers Seeking Locations in North & South Carolina

Hamrick's, Inc. trades as Hamrick's at 22 locations in NC, SC and TN. The stores, selling family apparel, shoes and accessories, occupy spaces of 15,000 sq.ft. to 40,000 sq.ft. in outlet, power and strip centers. Growth opportunities are sought in NC, SC and GA.

For more information, contact Dennis Tate, Hamrick's, Inc., 742 Peachoid Road, Gaffney, SC 29342; 803-489-6095, Fax 489-9514.

Griffin 88 Stores, Inc. does business as Hi-Lites at 45 locations in NC and SC. The stores, selling women's and junior apparel at price points of $15 and below, occupy spaces of 3,000 sq.ft. in outlet, 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 Todd Griffin, Griffin 88 Stores, Inc., 400 Martin Street, Polkton, NC 28135; 704-272-8021, Fax 272-8028.

Ahold, Inc. trades as Bi-Lo at 260 locations in NC, SC, TN and GA. The supermarkets occupy spaces of 32,000 sq.ft. to 46,000 sq.ft. in freestanding facilities, 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 Jeff Powers, Ahold, Inc., PO Drawer 99, Maudlin, SC 29662; 803-234-1600, Fax 675-5480.

Discount Auto Parts, Inc. trades as Discount Auto Parts at 281 locations in AL, FL, GA and SC. The automotive parts stores occupy spaces of 6,000 sq.ft. in freestanding facilities and end-cap spaces of strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Cliff Wiley, Discount Auto Parts, Inc., 4900 Frontage Road South, Lakeland, FL 33801; 813-687-9226, Fax 284-2052.

Creative Hairdressers trades as Hair Cuttery at 525 locations in DE, FL, GA, IL, MD, NC, NJ, PA, SC and VA. The hair salons occupy spaces of 1,000 sq.ft. to 1,200 sq.ft. in regional malls, power and strip centers. Plans call for 150 openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact John Colvin, Creative Hairdressers, 2815 Hartland Road, Falls Church, VA 22043; 703-698-7090, Fax 876-2897.

The Shoe Show, Inc. trades as The Shoe Department at 150 locations in 23 Eastern states. The family shoe stores occupy spaces of 4,000 sq.ft. to 5,000 sq.ft. in regional malls. Plans call for as many as 30 openings in the coming 18 months. Expansion will take place throughout the Southeastern region.

For more information, contact Leon Lacky, The Shoe Show, Inc., PO Box 648, Concord, NC 28026; 704-782-4143, Fax 782-3411.

Ruff Hewn Outlet Store operates 10 locations in AL, FL, GA, MO, NC, NV, PA and TN. The stores, selling men's and women's ready-to-wear apparel at discount price points, occupy spaces of 3,000 sq.ft. in upscale outlet centers. Plans call for as many as four openings in the coming 18 months. Expansion will take place throughout the Southeastern region.

For more information, contact Terry Yeager, Ruff Hewn Outlet Store, 827 Herman Court, High Point, NC 27261; 910-861-7000, Fax 861-4403.

Carlyle & Co. Jewelers does business as Jewel Box at 41 locations, Carlyle & Co. at 34 locations and J.E. Caldwell at seven locations in AL, DE, FL, GA, KY, NC, PA, SC, TN, VA and WV. The Jewel Box stores occupy spaces of 1,000 sq.ft. to 1,500 sq.ft.; the Carlyle & Co. store occupy spaces of 1,200 sq.ft. to 2,000 sq.ft. and the J.E. Caldwell units occupy spaces of 2,500 sq.ft. to 4,500 sq.ft. in freestanding facilities and regional malls. Plans call for seven openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Martin Bernstein, Carlyle & Co. Jewelers, P.O. Box 21768, Greensboro, NC 27420-1768; 910-218-7290, Fax 294-2679.

Briar Patch Management Corp. trades as Briar Patch at 31 locations in FL, GA, NC and SC. The home decor stores, selling domestics, lamps, frames, prints, housewares and gifts, occupy spaces of 3,200 sq.ft. to 3,500 sq.ft. in regional malls. Growth opportunities are sought in the existing markets.

For more information, contact Jim Buchman, Briar Patch Management Corp., 2280 West Victory Drive, Savannah, GA 31404-3957; 912-352-8181, Fax 352-7689.

U.S. Factory Outlets, Inc. trades as U.S. Factory Outlets at 24 locations nationwide. The stores, selling general merchandise, apparel and closeouts at discount price points, occupy spaces of 30,000 sq.ft. to 55,000 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.

Colonial Ice Cream Stores, Inc. does business as Baskin-Robbins Ice Cream at 306 locations in AL, FL, GA, NC and SC. The stores, selling ice cream and frozen yogurt, occupy spaces of 1,200 sq.ft. in freestanding facilities and end-caps of strip centers. Plans call for as many as 60 openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Harry Saye, Colonial Ice Cream Stores, Inc., 100 Crescent Center Parkway #400, Tucker, GA 30804; 770-270-0314, Fax 270-1800.

Restaurant Management Group does business as Malone's Grill & Bar at five locations in GA. The restaurants with bars occupy spaces of 5,000 sq.ft. to 6,000 sq.ft. in downtown store fronts, freestanding facilities and regional malls. Plans call for as many as two openings in the coming 18 months. Expansion will take place in NC, SC, AL, FL, GA or TN.

For more information, contact Ashiq Delawalla, Restaurant Management Group, 5300 Oakbrook Parkway #200, Norcross, GA 30093; 770-381-5300, Fax 381-8070.

Schiano's Enterprises, Inc. trades as Schiano's Italian Restaurant at 17 locations in NC, SC, NJ and NY. The Italian fast food restaurants occupy spaces of 1,200 sq.ft. to 2,400 sq.ft. in strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in NC and SC.

For more information, contact Frank Schiano, Schiano's Enterprises, Inc., 7201 Two Notch Road, Columbia, SC 29223; 803-788-8100.

Huddle House, Inc. trades as Huddle House Restaurants at 274 locations in AL, AR, FL, GA, KY, LA, MS, NC and SC. The 24-hour, full-service restaurants occupy spaces of 1,500 sq.ft. to 1,800 sq.ft. in freestanding facilities. Plans call for as many as 25 openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Mike McCormack, Huddle House, Inc., 2969 East Ponce De Leon Avenue, Decatur, GA 30030; 404-377-5700, Fax 377-0497.

Triton Marketing, Inc. trades as Triton at 23 locations in NC, SC and GA. The convenience stores occupy spaces of 2,000 sq.ft. in strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Jim Paton, Triton Marketing, Inc., 8255 Dunwoody Place, Building 17, Suite 100, Atlanta, GA 30350-3302; 770-992-7088, Fax 992-8537.

Tee Pee Food Stores, Inc. trades as Tee Pee Food Stores at five locations in NC. The convenience stores, which also sell gasoline, occupy spaces of 1,500 sq.ft. to 2,000 sq.ft. in freestanding facilities. Plans call for as many as two openings in the coming 18 months. Expansion will take place in NC.

For more information, contact Tom Potter, Sr., Tee Pee Food Stores, Inc., PO Box 729, Morehead City, NC 28557; 919-726-6101, Fax 726-9183.

Smile Gas, Inc. trades as Smile Gas at 65 locations in FL, GA, NC, SC and VA. The convenience stores, which also sell gasoline, occupy spaces of 2,200 sq.ft. in freestanding facilities. Plans call for as many as nine openings in the coming 18 months. Expansion will take place in the existing markets. The company prefers to purchase open ground, running 3/4 of an acre to six acres, and build its own sites.

For more information, contact Henry Colley, Smile Gas, Inc., PO Box 3366, Augusta, GA 30904; 706-736-2695, Fax 736-6404.

Country Food Stores operates six locations in NC. The convenience stores, which also sell gasoline, occupy spaces of 2,400 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 Benjamin Pace, Country Food Stores, PO Box 880, Candler, NC 28715; 704-667-0801.

Young's Food Stores, Inc. trades as Young's Food Stores at 40 locations in SC. The convenience stores occupy spaces of 1,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market.

For more information, contact Hugh Jackson, Young's Food Stores, Inc., 447 North Main Street, Sumter, SC 29151; 803-775-5337, Fax 775-5800.

When Reviewing A Lease Begin with The Site Plan

by Abe J. Schear

Recently, I was asked an intriguing question, one which truly made me ponder (as opposed to blurting out my first stray thought). "What is the first thing one should look at when negotiating a retail lease?" After some reflection, I believe my answer is that the place to begin is with the site plan.

This solution came to me having recently concluded a lease in a single anchored, "L-shaped" family center, one in which my tenant/client was taking the soon-to-be-built end space nearest the street. The landlord was likely going to be agreeable to most reasonable comments, however, the trick was to identify the most relevant and deal specific issues, ones which are not routinely addressed by the standard lease form. Below, in no particular order of importance, is a list of issues raised by my site plan review:

Outparcels: In front of "my" space, there are two parcels listed, the first as "Out" and the second as "Outparcel 2." It is important to determine what is on these parcels, whether they are owned by the same landlord, if there are reciprocal easements from and through all of the properties, whether there are height restrictions on the outparcels and whether any of the charges associated with the other parcels (i.e. CAM, taxes, insurance) will be picked up by the remainder of the center. The issue of what "use" was on the outparcel was particularly important given the sensitivity of my client to competition.

Signage: Given that my tenant/client was going to occupy the end space, what signage rights did the tenant want and what would the landlord allow? Did we want one storefront sign or two? Did we want there to be a sign on the rear of the building, a side which was visible from the street?

Equally important, the site plan notes two pylons. Would we be on either of those signs? If not at the commencement of our lease, could we be a replacement? Were either of the pylons to include an electronic message which could, from time to time, include our advertising?

Condition of the Property: The site plan indicated that we were to be in "Phase II." However, nowhere did the site plan indicate whether the parking shown was already in place or, for that matter, what existed between my client's space and the street. Despite their aesthetic appeal, my client did not want beautiful, fast growing flowery trees in front of his space, ones which beautify the center while wholly blocking the consumer's view of his premises. I did not want to have to advise my client in the future whether "self help" included necessary pruning.

Condition of Adjacent Space: It was not clear from the site plan whether the construction of an additional contiguous building was a possibility. Normally passive issues, such as excavation and landlord entry, obviously would be of greater concern if such expansion was contemplated, as my client's exterior wall could at some point become a common wall. This possibility needed to be addressed. As a corollary, in the event of additional construction, the lease needed to address where the construction trailer(s), equipment and supplies would be located. Surely, not in front of my client's space. When it was determined that additional space could and might be added, my client became interested in (and ultimately obtained) a right of first refusal upon the potentially contiguous space, thus assuring the opportunity to expand should conditions so warrant.

Ingress/Egress: The site plan notes three curb cuts on my client's side of the property. Did they in fact exist and was there any likelihood of closure, through eminent domain or otherwise? Again, given the problem(s) previously discussed with the outparcels, access to the premises is critical and certain minimum assurance would be needed in the lease.

Adjacencies: The site plan, drawn in a rough form, noted various tenants in different spaces in the center. Was the site plan accurate? Did the relatively modest retailer adjacent to my client's space still remain in occupancy? What were the remaining terms of the adjacent tenant leases and, more importantly, was adjacent space used as a restaurant? A use of that type not only will have a material impact on parking during its peak hours, but may give rise to trash, odor and noise issues. Although the landlord is not likely to give me much control over the identity of future tenants (i.e. those found to fill vacancies), I can minimize my client's risks by at least knowing who the initial "neighbors" will "likely" be and making sure the uses are compatible.

A small point, but one of convenience: the site plan did not denote where the garbage containers would be spotted. This information would have been helpful.

The above examples are hardly exhaustive of the issues which might be raised by a site plan review. If, for instance, the tenant was immediately adjacent to a supermarket or other anchor, it would be important to focus on issues related to the landlord's right to relocate the tenant, given the likelihood that the anchor may one day want to expand, forcing the landlord to relocate any store within the current (or future) configuration of the center.

It is hard enough to draft a good lease, but even more difficult when the reader assumes that the space is like every other, failing to focus upon the deal specific, salient issues and, ultimately, ignoring issues which could in fact have severe negative consequences. The "site plan" provides the reader with a wealth of information. I would recommend that it be reviewed and if needed, additional information gathered, before reading the lease.

Abe J. Schear is an attorney at the law offices of Arnall Golden & Gregory, 2800 One Atlantic Center, Atlanta, GA 30309; 404-873-8752, Fax 873-8753.

Financial News...

Baby Superstore, Inc. (864-968-2506) reported that its sales for fiscal year 1995 increased 66% to $291.2 million from $175.3 million during FY94. Net income jumped 64% to $11.655 million from $7.109 million and comparable store sales increased 16% for the year. During the fourth quarter, the company opened 10 stores and currently operates 63 units in 18 states.

Bed Bath & Beyond, Inc. (201-379-1750) reported that net sales for fiscal 1995 increased 36.6% to $601.3 million from $440.3 million during its last fiscal year. Comparable store sales increased 3.8% for the year. The company operates 80 stores in 21 states and is looking to open as many as 26 stores during its current fiscal year.

Gottschalks, Inc. (209-434-4744) reported a net loss for fiscal 1995 of $5.6 million compared to net income of $1.5 million during FY94. The company also reported that sales increased 10.3% to $401 million from $363.6 million, but that comparable store sales fell 3.1% for the year. The company currently operates 34 department stores and 25 specialty apparel stores in CA, NV, OR and WA.

The Dress Barn, Inc. (914-369-4500) reported that net sales for its fiscal second quarter were $119.1 million, a two percent increase over last year's second quarter results of $116.7 million. Second quarter net income decreased to $1.7 million from $2.4 million and comparable store sales fell five percent. The company is planning to close 55 underperforming stores this year and currently operates 759 units nationwide.

Gap, Inc. (415-952-4400) reported that net sales for its fiscal year, ended February 3, increased 18% to $4.395 billion from $3.723 billion during its last fiscal year. Net income increased 11% to $354 million from $320.2 million but comparable store sales were flat. During 1995, the company opened 225 stores and closed 53. During 1996, the company plans to open as many as 200 units. Currently, the company operates 902 Gap stores, 210 Banana Republic units, 437 GapKids stores and 131 Old Navy Clothing stores.

Manhattan Bagel Company (908-544-0155) reported that its net income for 1995 increased 175% to $2.047 million from $743,424 during 1994 and that its revenues increased 97% to $19.153 million from $9.724 million during 1994. During 1995, the company opened 102 stores and currently operates 160 locations in 15 states. During 1996, the company plans to open 160 stores.

Viacom, parent company of Blockbuster Music (305-832-3000) is seeking a buyer or merger partner for the 518-unit chain. Viacom decided to put the music chain up for sale after it posted weak quarterly results during the fourth quarter of 1995.

Wal*Mart Stores, Inc. (501-273-4000) reported sales of $93.627 billion for 1995, an increase of 13% over last year's results. The company also reported a two percent gain in net income to $2.74 billion from $2.681 billion last year. By division, the Wal*Mart division had an operating profit of $5.02 billion, a seven percent increase over last year's results of $4.706 billion. Sales for the division increased 14% to $66.271 billion compared to $57.919 billion last year. The Sam's division operating profit increased 10% to $800 million from $728 million with sales increasing one percent to $19.068 billion from $18.908 billion. The international division had an operating loss of $16 million compared to a loss of $17 million last year. However, international sales increased 146% to $3.712 billion from $1.511 billion last year. During its fiscal year, the company opened 93 discount stores, closed two and relocated or expanded 70 others; opened 92 Supercenters, including 80 discount store replacements; opened 51 international units; and opened 11 Sam's Clubs, closed two and relocated three. At the end of its fiscal year, the company operated 1,955 Wal*Mart stores, 239 Supercenters, 493 Sam's Clubs, 131 Canadian Wal*Marts, 126 Mexican, 11 Puerto Rico, five Brazilian and three Argentina units.

The May Department Stores Company (314-342-6300) reported fiscal 1995 net earnings from continuing operations of $700 million compared to FY94 net earnings of $650 million. Sales from continuing operations increased 7.7% to $10.5 billion from $9.8 billion during 1994. Comparable store sales increased 2.5%. During the year, the company opened 37 stores, 14 through acquisitions, and ended the year with 346 department stores nationwide.

Revco D.S., Inc. (216-425-9811) reported fiscal 1996 third quarter sales of $1.243 billion, a 9.7% increase over FY95 third quarter results of $1.133 billion. Net income for the third quarter was $24.7 million, an increase of 39.5% from $17.7 million last year. Comparable store sales for the quarter rose 7.8%. Accounting for 56.3% of net sales for the quarter were prescription sales which increased 13.6% to $83.6 million. During the quarter, the company opened 46 stores and closed four. Currently, the company operates 2,100 drug stores in 14 states.

Lease Signings

Mark Centers Trust (717-288-4581) leased 30,000 sq.ft. to Dunham's Sporting Goods at East End Shopping Centre in Wilkes-Barre, PA.

Goldman Retail Associates (310-235-0444) subleased 7,000 sq.ft. from Thrifty Payless, Inc. to Paul Jardin U.S.A. at Sherman Square Shopping Center in North Hollywood, CA.

Metro Commercial Real Estate, Inc. (609-866-1900) leased 23,500 sq.ft. to OfficeMax across from the Exton Square Mall in Exton, PA.

CB Commercial Real Estate Group (818-810-6411) leased 27,200 sq.ft. to Canned Foods Warehouse at Uptown and Country Shopping Center in Upland, CA and 2,700 sq.ft. to Sally Beauty Supply at Mountaingreen Shopping Center in Upland, CA.

Excell Fund LLC (303-320-0003) leased 7,054 sq.ft. to Family Dollar Stores, Inc. at JCRS Shopping Center in Denver, CO.

Sevo Miller, Inc. (303-721-1000) and SullivanHayes Properties (303-534-0900) leased 5,723 sq.ft. to Fazoli's Restaurant at Edgewater Market Place in Edgewater, CO.

Mid-America Real Estate Group (708-954-7300) leased 35,000 sq.ft. to House of Blues at Marina City in Chicago, IL; 10,000 sq.ft. to SuperTrak, 4,000 sq.ft. to Ellen's Hallmark and 1,340 sq.ft. to Subway at Civic Center Plaza Shopping Center in Niles, IL; 2,015 sq.ft. to Alphagraphics at Bannockburn Green Retail Center in Bannockburn, IL; 2,500 sq.ft. to Kids Mart and 2,000 sq.ft. to BoRics Hair Care Salon at Downers Park Plaza Shopping Center in Downers Grove, IL; and 1,200 sq.ft. to Domino's Pizza and 900 sq.ft. to Top Half at Chase Plaza Shopping Center in Buffalo Grove, IL.

The Mills Corporation (909-481-5800) leased space to Vans Outlet, Converse Outlet, American Tourister, Gloria Jean's, Pacific Sunwear, Crazy Shirts, Boston Traders, Fila, Rocky Mountain Chocolate, Vitamin World, Banister Shoe Studio, Sunglass Hut Fashion, Sunglass Hut Outlet and Sunglass Hut Sport at Ontario Mills in Ontario, CA.

New Construction

CBL & Associates Properties, Inc. recently broke ground on Massard Crossing in Fort Smith, AR. The 290,000 sq.ft. project will be anchored by a 202,307 sq.ft. Wal*Mart Supercenter and a 27,750 Goody's Family Clothing store. Small shop space has been leased to Cato (4,800 sq.ft.), Dollar Tree (3,000 sq.ft.), Friedman's Jewelers (1,500 sq.ft.) and Cost Cutters Hair Salon (1,200 sq.ft.). An additional anchor space of 30,000 sq.ft. as well as approximately 20,000 sq.ft. of small shop space is available for lease. Additionally, four freestanding outparcels are included in the plan. The project is expected to open during March 1997.

For more information, contact Bill Jensen, project manager, of CBL & Associates Properties at (800-333-7310).

Kitchell Development Company recently broke ground on Rainbow Promenade in Las Vegas, NV. The 230,000 sq.ft. project will be anchored by a 40,000 sq.ft. United Artists Theatre, a 34,800 sq.ft. Linens 'n Things, a 30,000 sq.ft. OfficeMax, a 25,000 sq.ft. Barnes & Noble Superstore, an 18,900 sq.ft. Cost Plus and a 13,000 sq.ft. Petco. Space for specialty shops and pad restaurants is also included. The project is expected to open during October.

For more information, contact John Griggs, Senior Development Director, at Kitchell Development Company at (714-261-1227).

S.A.P. Associates L.L.C., a partnership comprised of Lazarus Property Corp. and San Antonio Partners L.P., is constructing La Plaza del Norte in San Antonio, TX. The 297,900 sq.ft. power center, which is located across from North Star Mall and adjacent to San Antonio Crossing, will be anchored by a 65,000 sq.ft. Oshman's SuperSports USA store, a 58,000 sq.ft. Best Buy, a 53,000 sq.ft. HomePlace, a 20,000 sq.ft. Cost Plus World Market and a 13,650 sq.ft. Petco Animal Supplies store. An unidentified family clothing store has agreed to occupy 28,000 sq.ft. at the project as well. The project, which is 86% leased, also has space for 20,000 sq.ft. of specialty stores. The project is expected to open during August.

For more information, contact Guyla Sineni, leasing agent, of United Commercial Realty at (210-822-5000).

Uniwest Development, Inc. recently completed construction and opened phase I of Jefferson Crossing Shopping Center in Charles Town, WV. The 93,650 sq.ft. project is anchored by a 45,800 sq.ft. Martins Supermarket, a 12,000 sq.ft. Fashion Bug Superstore and an 8,450 sq.ft. Revco Drug Store. Currently being constructed are three outlot buildings that will be occupied by Taco Bell and Payless ShoeSource. Another national fast food restaurant chain will occupy the third building. A phase II development on 27 adjacent acres is in the planning stages.

For more information, contact Les Sax of Uniwest Realty, Inc. at (703-671-2880).

Olympic Realty & Development plans to break ground next month on Hampden Commons Shopping Center in Hampden Township, PA. The project is expected to be anchored by a 103,195 sq.ft. Home Depot, a 40,261 sq.ft. Circuit City, a 26,115 sq.ft. PetsMart and a 24,573 sq.ft. Staples. If the project receives the necessary approvals and construction begins next month, it could be open by the end of this year.

For more information, contact David Schwartz of Olympic Realty & Development at (212-753-9333).

What Can The Internet Do for You?

Provide Information & Networking

Home Page Sampler

Here's just a few of the listings of real estate oriented Home Pages on the Internet we "link" to. To see our entire list of 500, visit our Home Page at http://www.dealmakers.net. If you have a Home Page you want listed, send the information to deal.makers@dealmakers.net.

http://www.realworks.com

High tech solutions on real estate.

http://www.vossnet.co.uk

Property for sale in UK and Europe.

http://turnpike.net/metro/kthompso.index.html

Information on foreclosures.

http://www.macom.co.il/think-first/index.html

Israel real estate.

http//www.winseg.com/~dimsl/oroville.html

Mobile home parks for sale.

http://www.fractals.com/spencer/html/intro.html

Mortgage Rates.

http://www.mindspring.com/!green/welcom.html

Commercial real estate.

http://www.neosoft.com/~infowell/loans/loanfinal.html

Loans on real estate.

http://www.mki.co.jp/mitsui.html

Real estate in Japan.

http://www.the-matrix.com/aptmgr/

Property management software.

http://www.southwind.net/~hnewsome/bstein

Chicago commercial real estate.

http://www.libertynet.org/~pbr

Philadelphia real estate Board of Realtors.

http://www.onthenet.com.au/~impact/

Austria's real estate.

http://www.haven.uniserve.com/~morfinn

Canadian real estate.

http://www.minicom.com/minicom

Asset management.

http://www.ccsnet.com/reo/ - REO.

Buyers & Sellers of Commercial Properties

Kin Properties is selling a former Kmart in Mindelein, IL. The project is located on 10.74 acres of land at the intersection of Routes 45 and 60. The average household income of the trade area is over $80,000. The asking price is $3 million.

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

All Pro Realty Group, Inc. has the listing to sell a Wal*Mart anchored shopping center in Salem, MO. The project has leases totaling $167,805 as well as seven acres of land that can be developed. The asking price is $1.75 million and owner financing is possible.

For more information, contact John Watson at (573-729-6462), Fax (729-4411).

CB Commercial Real Estate City of Industry, CA brokered the sale of 101,700 sq.ft. at Mountaingreen Shopping Center in the City of Upland, CA. The project, which totals 203,756 sq.ft., is anchored by Mervyn's and Longs Drug Stores, which own their locations and were not part of the sale. The portion sold is anchored by Edwards Cinemas, Trader Joe's, Radio Shack and Denny's. DMP Properties purchased the center from Heitman Properties for $9 million.

For more information, contact Nelson Wheeler at (818-810-6411).

The Winfield Group, Inc. has the listing to sell 2.9 acres of land in Manassas, VA. The site, which is located on Grant Avenue and within walking distance of the Manassas rail station, is zoned for a variety of retail and commercial uses. The asking price is $785,000. The company has the listing to sell a 14,000 sq.ft. auto care center in Capitol Heights, MD. The project is anchored by Jiffy Lube, Meineke and All Tune & Lube. The asking price is $1.425 million. The company also has the listing to sell a 37,000 sq.ft. parcel of land at Commerce Court in Manassas, VA. The site has all public utilities available and the zoning allows a variety of retail and commercial uses. The asking price is $162,000.

For more information, contact Steve Tate at (703-760-8990), Fax (790-0057).

CB Commercial Real Estate San Diego, CA brokered the sale of Costa Verde Shopping Center in San Diego, CA. The 178,000 sq.ft. project is anchored by Albertson's, Bookstar, Pier One Imports, Men's Warehouse, DOW Stereo and McDonald's. The center was sold to Pacific Retail Trust by Asahi Urban Development for $34.6 million.

For more information, contact CB Commercial at (619-696-8400).

Metro Commercial Real Estate, Inc. brokered the sale of the Levitz/Best Products Building in King of Prussia, PA. The 158,000 sq.ft. building was sold to Goodman Properties by Norman Associates for $11.5 million.

For more information, contact Dennis McCarthy, Paul Rumley or Tom Londres at (609-866-1900), Fax (866-1611).

H. Stephen Kirschner, Inc. represents a foreign investment fund in the market to acquire existing shopping centers having GLAs of at least 200,000 sq.ft. Preferred properties also are tenanted by at least 60% credit tenants. The investment group will also fund new shopping centers.

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

The Great Atlantic & Pacific Tea Company, Inc. is selling former supermarkets and development land in AL, CT, FL, GA, MA, MI, NJ, WI, ME, LA, MD, NH, NY, NC, PA and Canada. Equipment is available at many of the former supermarket locations.

For more information, contact The Great Atlantic & Pacific Tea Company, Inc. at (800-927-7368), Fax (201-930-8072).

Grubb & Ellis Company has the listing to sell a 20,000 sq.ft. former State Movie Theatre at Journal Square in Jersey City, NJ. The site may be used for a mini mall, single "big box" retailer, movie theatre or supermarket. The company also has the listing to sell a 10,000 sq.ft. retail/professional building on Route 27 in Edison, NJ.

For more information on the former movie theater, contact Jerry Putterman at (201-669-3311); for more information on the building, contact Ben Shapiro at (609-987-0004).

Kranzco is in the market to acquire strip shopping centers with at least one anchor in the Northeastern region, from ME to VA. Properties of interest have a minimum GLA of 125,000 sq.ft. All cash or leverage transactions are possible.

For more information, contact Kranzco at (610-941-9292), Fax (941-9193).

Mergers & Acquisitions

Fred's (901-365-8880) and Rose's Stores recently entered into an agreement in which Fred's will acquire Rose's. The deal is subject to shareholder approval from both companies. Fred's operates 201 discount and general merchandise stores and Rose's operates 105 units throughout the Southeastern region.

Staples, Inc. (508-370-8967) recently announced that its Canadian subsidiary, The Business Depot, has acquired five Club Biz stores in Quebec City and Montreal, Quebec, Canada. The stores will be renamed and restocked with Staples inventory.

Quality Dining, Inc. (219-271-4600) recently entered into an agreement to acquire Bruegger's Corp. for $112.9 million in stock. The deal, which is expected to be completed during May, will make Bruegger's a wholly-owned subsidiary of Quality Dining. Bruegger's currently operates 275 units nationwide with commitments to reach 500 units by the end of this year and 800 units by 1998. Quality Dining operates 145 restaurants trading as Burger King, Grady's American Grill, Chili's Grill & Bar and Spageddies Italian Kitchen restaurants as well four Bruegger's units in Indiania.

Family Restaurants, Inc. (714-852-5708) recently entered into a definitive agreement with a wholly-owned subsidiary of Flagstar Companies, Inc. to sell 157 Carrows and 187 Coco's/jojos restaurants in CA and the Southwestern states. The transaction, consisting of cash and notes and the assumption of certain capital leases obligations, is valued at $306.5 million. The deal also includes the sale of the licensing rights for approximately 240 Coco's restaurants that operate in Korea and Japan. The deal is expected to close during May. After the sale is completed, Family Restaurants will operate 319 units in CA, OH, PA, IL, IN, MI, WI, MD, MO and VA trading as Chi-Chi's, El Torito, Casa Gallardo and Charley Brown's.

Diedrich Coffee Corp. (714-438-2282) recently entered into separate agreements to purchase 10 Brothers Gourmet Coffee

units in Denver, CO and two in Houston, TX as well as seven units from Java City in Denver, CO. After the deals are completed, the company will operate 33 locations in CA, CO and TX.

Lead Sheet

Big "M", Inc.

dba Afaze

Kenneth Mandelbaum

12 Vreeland Avenue

Totowa, NJ 07512

201-890-0021, Fax 890-4075

Accessories

The four-unit chain operates locations in NJ and NY. The stores, selling accessories for men, women and children, occupy spaces of 800 sq.ft. to 1,000 sq.ft. in downtown store fronts and regional malls. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets or CT.

Ridgefield Corp.

dba French Novelty

Jack Mizrahi

1910 Wells Road

Orange Park, FL 32073

904-269-4050, Fax 269-4050

Apparel

The three-unit chain operates locations in FL and GA. The stores, selling missy and junior apparel and accessories at upper price-points, occupy spaces of 2,500 sq.ft. in regional malls, specialty and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets.

HH Gregg, Inc.

dba HH Gregg

Jack Esselman

c/o JF Esselman, Inc.

9000 Keystone Crossing #730

Indianapolis, IN 46240

317-844-6833, Fax 574-0481

Appliances & Electronics

The 17-unit chain operates locations in KY, IN and TN. The stores, selling appliances and consumer electronics, occupy spaces of 20,000 sq.ft. to 40,000 sq.ft. in freestanding facilities and power centers. Plans call for two openings in the coming 18 months. The company, which prefers second generation space, is seeking locations in Cool Springs, TN and Evansville, IN.

Maaco Enterprises, Inc.

dba Maaco Auto Painting & Bodyworks

Richard Mina

381 Brooks Road

King of Prussia, PA 19406

610-265-6606, Fax 337-6176

Automotive

The 469-unit chain operates locations throughout North America, Mexico and Puerto Rico. The units, offering automotive body repairs and painting services, occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in freestanding facilities. Plans call for 40 openings in the coming 18 months. Expansion will take place in the existing markets.

W.W. Fowler Oil Co.

dba Econo Flash Food Stores

Glenn Brannon

7514 Lee Road

Lithia Springs, GA 30057

770-948-9414, Fax 739-1852

Convenience Store

The three-unit chain operates locations in GA. The convenience stores, which also pump gasoline, occupy spaces of 2,400 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market.

Dollar Discount Stores of America, Inc.

dba Dollar Discount

Mitchell Insel

1362 Naamans Creek Road

Boothwyn, PA 19061

Fax 610-485-6439

Discount

The 42-unit chain operates locations in PA, NJ, DE, MD, CT, VT, LA, SC, GA, MI and CA. The stores, selling merchandise for $1, occupy spaces of 2,000 sq.ft. to 3,500 sq.ft. in strip centers. Preferred anchors include supermarkets. Plans call for as many as 24 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 50,000 within three miles earning $25,000 to $50,000 as the average income. The company, which is franchising, typically signs leases running three to five years and prefers a vanilla shell.

Fabri Centers of America, Inc.

dba Clothworld, Joanne Fabrics, NY Fabric

John Stec

5555 Darrow Road

Hudson, OH 44236

216-656-2600, Fax 463-6675

Fabric

The 950-unit chain operates locations nationwide. The fabric stores occupy spaces of 10,000 sq.ft. to 12,000 sq.ft. in power and strip centers. Growth opportunities are sought nationwide.

Gorins Homemade, Inc.

dba Great Wraps

Mark Kaplan

158 Oak Street

Avondale Estates, GA 30002

404-299-5081, Fax 292-0081

Food

The 70-unit chain operates locations nationwide. The units, serving Mediterranean fast food, occupy spaces of 1,200 sq.ft. in outlet centers and community malls. Plans call for as many as 30 openings in the coming 18 months. Expansion will take place nationwide. The company is franchising.

Haverty Furniture Companies, Inc.

Barb LaBoy

866 West Peachtree Street NW

Atlanta, GA 30308

404-881-1911, Fax 870-9458

Furniture

The 94-unit chain operates locations in AL, AR, FL, GA, LA, NC, SC, TN, TX and VA. The furniture stores occupy spaces of 40,000 sq.ft. to 50,000 sq.ft. in freestanding facilities. Plans call for six openings in the coming 18 months. Expansion will take place in FL and TX.

Sanrio Surprise

Randall Patterson

570 Eccles Avenue South

San Francisco, CA 94080

415-952-2880, Fax 872-2730

Gifts

The 109-unit chain operates locations in CA, WA, HI, TX, LA, MS, FL, GA, NC, VA, TN, IL, CO and OK. The stores, selling children's gifts, accessories and school supplies, occupy spaces of 1,150 sq.ft. to 2,500 sq.ft. in regional malls, power centers and entertainment centers. Plans call for as many as 20 openings in the coming 18 months. Expansion will take place nationwide.

NHD Stores, Inc.

dba NHD Super Hardware Store

Sheldon Woolf

365 Washington Street

Stoughton, MA 02072

617-341-1810, Fax 341-2291

Hardware

The 32-unit chain operates locations in CT, MA, NH and RI. The hardware stores occupy spaces of 16,000 sq.ft. in freestanding facilities and strip centers. Plans call for as many as two openings in the coming 18 months. Expansion will take place within the existing markets.

Somers Corporation

dba Comfortables

William C. Somers

PO Box 531

Navesink, NJ 07752

908-291-5888

Home Decor

The 20-unit chain operates locations in NJ, OR, WA and WI. The stores, selling home decor items and furnishings, occupy spaces of 1,000 sq.ft. to 3,000 sq.ft. in regional malls. Plans call for as many as two openings in the coming 18 months. Expansion will take place within the existing markets.

Musicland Stores Corp.

dba On-Cue

Fred Karp

10400 Yellow Circle Drive

Minnetonka, MN 55343

612-931-8073

Music

The 153-unit chain operates locations nationwide. The stores, selling compact discs, videos, electronics and licensed music and movie apparel, occupy spaces of 6,000 sq.ft. in freestanding facilities and regional malls. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place nationwide.

Party World

Stanley Tauber

10701 Van Owen Street

North Hollywood, CA 91605

818-762-7717, Fax 509-8676

Party Supplies

The 20-unit chain operates locations in CA. The stores, selling party goods and related products, occupy spaces of 7,000 sq.ft. in outlet, power and strip centers. Growth opportunities are sought in CA, CO and UT. The company is seeking spaces running 10,000 sq.ft. for its new stores.

C&J Clark Retail, Inc.

dba Bostonian Shoes

Harvey Olsher

520 South Broad Street

Kennett Square, PA 19348

610-444-6550, Fax 444-0832

Shoes

The 80-unit chain operates locations nationwide. The stores, selling better quality men's shoes, occupy spaces of 1,200 sq.ft. in regional malls. Plans call for as many as 20 openings in the coming 18 months. Expansion will take place nationwide.

Cort Furniture Rental, Inc.

dba Cort Furniture Rental

Michael Connors

4401 Fair Lakes Court

Fairfax, VA 22033-3805

703-968-8500, Fax 968-8501

Specialty

The 100-unit chain operates locations nationwide. The stores, which specialize in furniture rental, occupy spaces of 3,500 sq.ft. to 4,500 sq.ft. in freestanding facilities and specialty centers. Plans call for as many as four openings in the coming 18 months. Expansion will take place nationwide. Leases running five to 10 years are typical.

Roundy's, Inc.

dba Pick N Save

Mike Schmidt

23000 Roundy Drive

Pewaukee, WI 53072

414-453-8200, Fax 547-4540

Supermarket

The 70-unit chain operates locations in OH and WI. The supermarkets occupy spaces of 30,000 sq.ft. to 70,000 sq.ft. in strip centers. Plans call for as many as four openings in the coming 18 months. Expansion will take place in WI.

Who's Opening and Where...

Shepherd Mall (405-946-9977) in Oklahoma City, OK plans to add a 65,000 sq.ft. America Online customer service center to its tenant mix during May. America Online plans to occupy the first floor of the former Dillard's Department Store at the 50% occupied project.

K&G Men's Center, Inc. (404-351-7987) plans to open an 18,000 sq.ft. store on Long Island, NY as well as units in Atlanta, GA and Baltimore, MD this year. After these stores are opened, the company will operate 14 units in 10 states.

The May Department Stores Co. (314-342-6300) plans to open 16 stores this year and as many as 128 by the end of 1999.

Noodle Kidoodle (516-293-5300) plans to open 15 stores this year, including as many as 10 in the Detroit, MI area. The company is also looking to enter the Boston, MA market. The company currently operates 18 stores in CT, IL, NJ and NY.

Tuesday Morning (214-387-3562) plans to open as many as 30 stores this year.

Fabri-Centers of America (216-656-2600) plans to open as many as 50 stores during its current fiscal year.

Garden Botanika (206-881-9603) plans to open as many as 220 stores in the coming two years with money raised from an initial public offering of its company stock.

H.E.B. (210-246-8000) plans to replace its supermarket in Castle Hills, TX with a 72,000 sq.ft. unit by the end of this year. The company is also planning to build a 60,000 sq.ft. unit at Westgate Mall in Austin, TX.

Rite Aid (717-975-5800) plans to open 28 drug stores in Manhattan, 20 on Staten Island, 14 in Brooklyn, nine in Queens and six in the Bronx, NY, for a grand total of 77 units, by the end of this year.

Darden Restaurants (407-245-4000) plans to open a 200-seat Red Lobster restaurant in Patton Township, PA.

Sunglass Hut International (305-461-6212) plans to open as many as 15 stores in Singapore, Indonesia and Malaysia during the next 11 months through a joint venture with Royal Sporting House.

Kroger (513-762-4000) plans to build a 63,000 sq.ft. supermarket at DuPont Village in Fort Wayne, IN. The unit is expected to open either late this year or early next year.<