Issue 14 for the week of April 19, 1996

The Dealmakers Issue Number 14 for the week of April 19, 1996.

My Way by Ted Kraus

Being a broker is a frustrating job, you get no respect, you beg to get paid and you're rarely in control; so the "deal" can fall apart right before your eyes and there's nothing you can do about it. Every now and then a broker comes across a tenant or buyer to represent that's easy to work with and reasonable with demands or needs and you end up shouting to yourself, "hallelujah, I'm finally going to make the big bucks."

I had that happen recently when I came across both a retailer and a buyer of property that were reasonable in their demands and willing to pay market price for what they wanted (but you can't give 'em for free what they don't want).

Anyway, within a week of starting work for them I generated a few deals they were interested in. I did the primary discussions to set the stage and then set up a meeting between tenant and landlord and then buyer and seller.

In both cases the clients were professional, reasonable and willing to respond quickly. Both made an excellent starting offer on the properties they were looking at, I almost had the commissions spent (but fortunately, after all these years, I've learned better).

I had letters of intent to the seller and landlord within a day of our meetings, waited two days and then did the usual follow up call. These discussions did not go well, to say the least. With the landlord, our client had offered market rent plus bumps and wanted to be in by August or September of this year. The problem the landlord had with the deal was he intended to expand and upgrade the property within two to three years, so the value of his property would increase substantially then, maybe, and if he was locked into a 10-year lease (discounting the bumps) at today's rent, he would lose money (in his mind only). I tried to explain there was no guarantee he would/could expand the center, and he gave no value to the $400,000 in rent, forgetting CAM and taxes the tenant would pay in the meantime before the center was redeveloped. That didn't matter, he was going to "lose money," so the retailer either pays the market rate that he thinks it will be in three years or no deal.

The deal died. I blame the problem on the landlord being a PHG or to translate, "Papa Has Gelt." Daddy gave him the center and he's going to prove what a great negotiator he is and how much smarter he is than daddy (after all, dad was a poor immigrant that came to this country to make his million, the son had a college degree). The son must be smarter, daddy didn't even graduate from high school. The only thing he proved was that he's an idiot. He didn't negotiate, he said do it my way or don't do it. Now if he had a great center, maybe I could understand, but it's run down, has numerous vacancies and the only reason he's not in trouble is not only did daddy give him the center, but there's no mortgage, so cash flow is good. I'm willing to bet within two or three years he figures a way to lose money on the project and possibly the center.

In the case of the buyer who's a client, we came across a large problemed center that is owned by an institution who wants out of retail. The good news is they're are willing to sell at 11% CAP, the bad news is several of their mini anchors are leaving within a year to go to a new, competing center being developed. The 11% CAP represented income on 100,000 sq. ft. that would be vacant within a year. While in the ideal world my client would want to purchase the property based on the income after the tenants leave, therefore dropping the price by $5 million, give or take, he was smart enough to know that wouldn't fly, so he offered various counter offers providing some value to the space. The seller wouldn't budge (oh, the property has been on the market for almost a year and been turned down by everyone and his mother, this was the most concrete offer they have gotten to date).

On one hand the seller claimed the property has to be closed on by the end of the year, on the other they acted like it's take it or leave it. I'm willing to bet they won't sell it, the mini anchors leave, the center's income drops, they can't replace the anchors and they sell it in two years for $4 to $5 million less than what my client is offering.

I accept that in this industry, expecting people to be fair, reasonable and honest is unrealistic, but that doesn't stop me from becoming frustrated every time I come across stupidity.

Now don't get me wrong, I understand that many/most centers are leased or sold at a price that makes no economic sense, there always appears to be a sucker born every minute. We had one seller that had 15 properties for sale and when we got into analyzing the sales packages, none of 'em made sense (99% of our clients are entrepreneurs; they're willing to take risks, they just want a good return so these properties weren't for them). When I commented to the seller that the properties were substantially over priced and wouldn't sell, they, of course, disagreed and said, "Wait and see." I did and they were right. Yes, 100 people turned them down for each property, but they managed to find 15 "live ones" who did the deal.

Two parting comments. First, the convention is two weeks off and while attendance should be good, I don't expect dealmaking results to do as well as last year, at least not based on the signs I see. More and more of the big box users are stopping or slowing down their expansion. Everytime I talk to someone they tell me about PetStuff, Best, Barnes & Noble, Computer City, Electronic Ave. or whoever just backed out of a deal at the last minute, citing company losses or lack of profits as the reason. One tenant had a signed lease and told the owner they wanted out. When the landlord refused to release 'em, they set up a meeting, showed them their P&L and explained they probably would be bankrupt within the year. Does he want to build 'em a store and then have them disavow it two months after they open? The landlord decided for $150,000 he could let them out. They agreed.

An article in Shopping Center World, titled "Internal Leasing Makes A Comeback" got my attention. To make a long story short, it interviewed various developers on the pros and cons of using their own leasing people versus that of an outside brokerage company. Jay Wiston, my old boss from CBL, summed up my feelings with, "It's not a function of dollars...We're simply more comfortable with using our own people."

It was Jay at Arlen (Now, for all practical purposes CBL) that provided most of the insight I have into leasing today (I don't know if that's a compliment or insult to Jay). One thing the company was strongly committed to was having their people do the leasing and provide substantial feedback every week on the trials and tribulations of leasing the centers the agent was responsible for. The department heads understood the strengths and weakness of every property and the agent knew the company's philosophy, "Lease or Leave." That attitude kept the centers leased and the company in business during the bad times. We were all expected to canvas our markets, meet with the locals and produce; sometimes the deals we did stunk, but that's all the center could justified. When an outside firm is hired to do the leasing, you can bet they don't canvas, ownership does not have as good of insight into the property nor does the broker bust his hump to make a deal that doesn't pay a big commission.

Now don't get me wrong, I believe in brokers, some of my best friends are brokers and I wouldn't even object if Josh married one, but they have a role, a limited role when it comes to leasing. An announcement in another publication told how a major REIT just appointed a brokerage firm to be its exclusive leasing representative for all its property. Now there's stock to sell short (and to be fair, I am not a great believer in the leasing ability of most REITS to begin with). Brokers should be used but understand when and how. If the property is in trouble, they quite often have skills your in house staff doesn't or they can concentrate on the problems without distracting from the staff's regular leasing. The same problem of outside brokers for retailers exists, they depend on individual brokers or companies to be responsible for probably what is their single most important decision, yet that person does not have a long term commitment to the company's health and viability.

Drug Store Tenants Looking for Sites

Snyder Brothers Drug Stores trades as Snyder Drugs at 74 locations in IA, MI, MN and WI. The drug stores, selling prescription and over-the-counter drugs as well as cosmetics, gifts, greeting cards, candy and newspapers, occupy spaces of 9,000 sq.ft. to 10,000 sq.ft. in strip centers. Plans call for three openings in the coming 18 months. Expansion will take place within the existing markets.

For more information, contact Mike Pan, Snyder Brothers Drug Stores, 14525 Highway 7, Minnetonka, MN 55345; 612-935-5441, Fax 936-2512.

Medicine Shoppe International, Inc. trades as The Medicine Shoppe at 1,150 locations worldwide. The drug stores, featuring prescription and over-the-counter drugs, occupy spaces of 1,000 sq.ft. in downtown store fronts, freestanding facilities, specialty and strip centers. Plans call for 80 openings in the coming 18 months. Expansion will take place worldwide.

For more information, contact Mike Rice, Medicine Shoppe International, Inc., 1100 North Lindbergh Boulevard, St. Louis, MO 63132; 314-993-6000, Fax 872-5500.

Discount Drug Mart operates 41 locations in OH. The deep discount drug stores occupy spaces of 23,500 sq.ft. in strip centers. Plans call for as many as six openings in the coming 18 months. Expansion will take place in the existing market.

For more information, contact Bill Malin, Discount Drug Mart, 211 Commerce Drive, Medina, OH 44256; 216-725-2340, Fax 722-2990.

Nash, Inc. trades as Harmon Drugs at 21 locations in NJ, NY and SC. The drug stores occupy spaces of 6,000 sq.ft. in power and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Newton Sheldon, Nash, Inc., 20 Sand Park Road, Cedar Grove, NJ 07009; 201-239-7773.

Wayne Oakland Drug Pharmacy Management does business as Action Drugs at 12 locations MI. The drug stores occupy spaces of 1,200 sq.ft. in strip centers. Growth opportunities are sought in the existing market.

For more information, contact Neil Tubben, Wayne Oakland Drug Pharmacy Management, 25862 West Six Mile Road, Redford, MI 48240; 313-537-1848, Fax 537-5230.

Super D Drugs, Inc. trades as Super D Express at 100 locations in AR, MO, MS, OK, TN and WI. The drug stores, which also sell beauty aids, occupy spaces of 12,000 sq.ft. to 30,000 sq.ft. in freestanding facilities. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place in AR, MO, MS and TN.

For more information, contact Wayne Henley, Super D Drugs, Inc., 4895 Outland Center Drive, Memphis, TN 38118-6517; 901-366-1144, Fax 367-3750.

Food Tenants Hungry for Sites Nationwide

Carousel Snack Bars trades as A&W Hot Dogs & More at 197 locations nationwide. The fast food restaurants occupy spaces of 150 sq.ft. to 600 sq.ft. in regional malls. Plans call for two openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Anthony Dammicci, A&W Hot Dogs & More, 9549 Penn Avenue South, Minneapolis, MN 55431; 612-887-5256, Fax 887-5298.

Crepe Cafe operates one location in NY. The restaurant, specializing in Cajun cuisine, occupies a 500 sq.ft. space at a food court in a regional mall. Plans call for five openings in the coming 18 months. Expansion will take place in CT, NJ and NY. Preferred demographics include a population of 250,000 within 10 miles earning $35,000 as the average income. Leases running 10 years are typical.

Alberto's operates one location in PA. The Italian Bistro occupies a 2,500 sq.ft. space in a regional mall. Plans call for 10 openings in the coming 18 months. Expansion will take place in NJ, NY and PA.

Red Robin Restaurant operates six locations in NJ and NY. The casual dining restaurants occupy spaces of 5,000 sq.ft. to 7,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls and strip centers. Plans call for six openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 150,000 within five miles earning $35,000 as the average income. Leases running 20 years are typical.

Major Steakhouse operates two locations in NY. The restaurants occupy spaces of 7,000 sq.ft. in downtown storefronts and freestanding facilities. Plans call for as many as six openings in the coming 18 months. Expansion will take place in CT, NJ and NY.

Wok 'N Roll operates 15 locations in HI, NJ, NY, OH and PA. The fast food restaurants occupy spaces of 600 sq.ft. to 1,400 sq.ft. in food courts of regional malls. Plans call for 10 openings in the coming 18 months. Expansion will take place in MA, CT, NJ, NY, RI, PA, GA, OH, TX and HI. Preferred demographics include a population of 150,000 within three miles earning $35,000 as the average income. Leases running 20 years are typical.

For more information on the above five companies, contact Paul Fetscher, c/o Great American Brokerage, 630 Third Avenue, 18th Floor, New York, NY 10017; 212-557-7272, Fax 557-1685.

Stewart's Ice Cream Co., Inc. trades as Stewart's Shops at 253 locations in NY and VT. The fast food restaurants occupy spaces of 2,400 sq.ft. in freestanding facilities. Plans call for as many as 15 openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Graham Fleish, Stewart's Ice Cream Co., Inc., PO Box 435, Saratoga Springs, NY 12866; 518-581-1200, Fax 581-1209.

Fenton, Inc. does business as Cara Chocolates at four locations in UT. The gourmet chocolate stores occupy spaces of 500 sq.ft. to 1,200 sq.ft. in regional malls and strip centers. Growth opportunities are sought in CO and ID.

For more information, contact Steve Peterson, Fenton, Inc., 418 South 1325 West, Orem, UT 84058; 801-226-3003, Fax 224-9588.

D'Angelo, Inc. trades as D'Angelo Sandwich Shop at 250 locations in CT, FL, ME, NH, VT, MA, RI, NY and TX. The restaurants, serving submarine sandwiches, salads, ice cream and frozen yogurt, occupy spaces of 2,000 sq.ft. to 2,500 sq.ft. in freestanding facilities and power centers. Plans call for as many as 30 openings in the coming 18 months. Expansion will take place throughout the Northeastern region.

For more information, contact Stephen MacLaughlin, D'Angelo, Inc., 321 Manley Street, West Bridgewater, MA 02379; 508-583-2116, Fax 588-3462.

M.T.C. Management, Inc. trades as Togo's Eatery at 180 locations in AZ, CA, CO, NV, OR and WA. The restaurants, serving submarine sandwiches, soups and salads, occupy spaces of 1,200 sq.ft. to 1,600 sq.ft. in power and strip centers. Plans call for 30 openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Marcelline Mahern, M.T.C. Management, Inc. 900 East Campbell Avenue, Suite 1, Campbell, CA 95008; 408-377-1754, Fax 377-4130.

Bickfords Family Restaurants trades as Bickford's Family Fare, Abdows and Howard Johnson at 60 locations in CT, MA, NH and RI. The restaurants occupy spaces of 3,500 sq.ft. to 6,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing markets. The company prefers to lease existing buildings.

For more information, contact James Shine, Bickfords Family Restaurants, 1330 Soldiers Field Road, Boston, MA 02135; 617-782-4010, Fax 783-2554.

The Manhattan Bagel Co. trades as Manhattan Bagel at 160 locations along the East Coast and in OH and TX. The bagel stores occupy spaces of 2,000 sq.ft. in downtown store fronts, freestanding facilities, power and strip centers. Plans call for 160 openings in the coming 18 months. Expansion will take place in CA, FL, TX, SC, MD, OH and Canada.

For more information, contact William Dentato, The Manhattan Bagel Co., 245 Industrial Way West, Eatontown, NJ 07724; 908-544-0155, Fax 544-1315.

Italian Express Franchise Corp. trades as Pizzas By Marchelloni at 52 locations in AZ, IL, IN, PA and WI. The restaurants, serving pizza, sandwiches, pasta and chicken wings, occupy spaces of 1,000 sq.ft. to 3,000 sq.ft. in strip centers. Plans call for 15 openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Hass Aslami, Italian Express Franchise Corp., 1051 Essington Road, Suite 270, Joilet, IL 60435; 815-729-4494, Fax 729-4508.

Ole Tacos, Inc. trades as Ole Tacos at seven locations in MI. The Mexican fast food restaurants occupy spaces of 450 sq.ft. to 1,800 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 Leo Vicari, Ole Tacos, Inc., 1775 28th Street SW, Wyoming, MI 49509; 616-534-8558, Fax 534-4859.

Deli Management, Inc. does business as Jason's Deli at 44 locations in AZ, CO, LA, OK and TX. The delicatessens occupy spaces of 3,500 sq.ft. to 4,500 sq.ft. in strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Joe Tortorice, Deli Management, Inc., 2400 Broadway, Beaumont, TX 77702; 409-838-1976, Fax 838-1906.

Auntie Anne's, Inc. trades as Auntie Anne's at 325 locations nationwide. The concept, selling fresh hot handrolled pretzels and soft drinks, occupy spaces of 200 sq.ft. to 800 sq.ft. in regional malls and outlet centers. Plans call for 67 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Marjorie Shaw, Auntie Anne's, Inc. PO Box 529, Gap, PA 17527; 717-442-4766, Fax 442-4139.

Consolidates Products, Inc. trades as Steak-N-Shake at 183 locations in KS, MO, IL, IN, OH, KY, GA and FL. The restaurants occupy spaces of 3,600 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing markets. The company is franchising.

For more information, contact Jim Richmond, Consolidated Products, Inc., 500 Century Building/36 South Pennsylvania, Indianapolis, IN 46204; 317-633-4100, Fax 633-4105.

Lenny's Bagels operates seven locations in NY. The bagel stores occupy spaces of 1,500 sq.ft. to 2,000 sq.ft. in freestanding facilities and strip centers. Plans call for three openings in the coming 18 months. Expansion will take place in CT and NY.

For more information, contact Michael Burke, Lenny's Bagels, c/o Oxford Real Estate Services Group, 830 Post Road East, Westport, CT 06880; 203-222-3939, Fax 222-3944.

Water Ice Systems, Inc. trades as Morrone's Water Ice & Treat Center at three locations in PA. The stores, selling Italian water ice, occupy spaces of 400 sq.ft. to 1,500 sq.ft. in freestanding facilities and end caps of strip centers. A walk-up service window is required. Plans call for as many as 12 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 earning $25,000 as the average income. The 71-year-old company, which is franchising, typically signs leases running three to five years with options.

For more information, contact Stacey Insel, Water Ice Systems, Inc., 117 South 69th Street, Upper Darby, PA 19082; 610-753-4327, Fax 753-4327.

Round Table Franchise Corp. trades as Round Table Pizza at 573 locations in CA, OR, NV, WA, ID, AZ, CO, WY, MT and AK. The restaurants occupy spaces of 3,000 sq.ft. to 4,000 sq.ft. in strip centers. Plans call for seven openings in the coming 18 months. Expansion will take place in AZ, CA and WA.

For more information, contact Leslie Young, Round Table Franchise Corp., 655 Montgomery Street, 7th Floor, San Francisco, CA 94111; 415-392-7500, Fax 362-7967.

Jackie's International, Inc. trades as various names at 75 locations in AL, AR, MS and TN. The restaurants occupy spaces of 6,500 sq.ft. in freestanding facilities. Plans call for six openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact S.L. Sethi, Jackie's International, Inc., Highway 7 North, Greenwood, MS 38930; 601-453-6601, Fax 453-8835.

Pizza Hut of America, Inc. trades as Pizza Hut at 7,500 locations nationwide. The restaurants occupy spaces of 1,200 sq.ft. to 3,600 sq.ft. in freestanding facilities and strip centers. The freestanding units use a land area of 40,000 sq.ft. Plans call for 150 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Rick Hoving, Pizza Hut of America, Inc., 3229 Harwood Road, Bedford, TX 76021; 817-545-3495, Ext. 231, Fax 354-0145.

Seattle's Best Coffee operates 32 locations in CA, IL, MA, OR and WA. The coffee houses occupy spaces of 1,200 sq.ft. in a variety of real estate settings. Plans call for 30 openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Art Wahl, Seattle's Best Coffee, 1321 Second Avenue, Suite 200, Seattle, WA 98101; 206-624-8858.

Valley Dairy operates 13 locations in PA. The family restaurants occupy spaces of 2,400 sq.ft. to 3,500 sq.ft. in freestanding facilities, regional malls and strip centers. Plans call for as many as two openings in the coming 18 months. Expansion will take place in the existing market.

For more information, contact Joe Greubel, Valley Dairy, 1914 Ligonier Street, Latrobe, PA 15650; 412-537-7111.

Help-Ur-Self operates 13 locations in MA, NH, NY, OH and PA. The stores, selling bulk candy, snacks and related gift items, occupy spaces of 1,800 sq.ft. in regional malls. Plans call for five openings in the coming 18 months. Expansion will take place East of the Mississippi River.

For more information, contact Stephen Silverman, Help-Ur-Self, 2301 Duss Avenue, Suite 19, Ambridge, PA 15003; 412-251-2103, Fax 251-2108.

Restaurants Unlimited trades as Cinnabon at 301 locations nationwide. The restaurants, featuring soups, salads, pastas and a bakery with walk-up service, occupy spaces of 400 sq.ft. to 1,000 sq.ft. in regional malls. Plans call for 20 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Stuart Young, Restaurants Unlimited, 936 North 34th Street, Fourth Floor, Seattle, WA 98103; 206-548-1032, Fax 634-2355.

Russell Stover Candies operates 50 locations nationwide. The candy stores occupy spaces of 1,200 sq.ft. to 1,800 sq.ft. in freestanding facilities, power and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Brett Stone, Russell Stover Candies, 1000 Walnut Street, Kansas City, MO 64106; 816-842-9240, Fax 842-7972.

Scotto Pizza operates 64 locations in AZ, CA, CO, FL, GA, IL, OH, NY, NJ, IN, IL, SC, TN, KY and LA. The Italian fast food restaurants occupy spaces of 700 sq.ft. to 2,000 sq.ft. in regional malls, power and strip centers. Plans call for one opening in the coming 18 months. Expansion will take place in OH.

For more information, contact Anthony Bruce, Scotto Pizza, 1895 Greentree Road, Cherry Hill, NJ 08003; 609-424-4260, Fax 424-9278.

Steak-Out Franchising, Inc. trades as Steak-Out at 82 locations in AL, GA, FL, TN, NC, SC, TX, MO, KS, IL, MD, MS, LA and KY. The fast food restaurants, serving steak sandwiches, chicken and hamburgers, occupy spaces of 1,500 sq.ft. in freestanding facilities and strip centers. Plans call for as many as 20 openings in the coming 18 months. Expansion will take place in AL, GA, FL, TX, TN, NC, SC and MO.

For more information, contact Shannon Blue, Steak-Out Franchising, Inc., PO Box 12713; Huntsville, AL 35815; 205-883-2300, Fax 883-4300.

U.S. Restaurants, Inc. does business as Burger King, Ponderosa, Rib-It and East Side Mario's at 60 locations in PA and NJ. The restaurants occupy freestanding facilities on 1.2 acres of land. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Henry White, Jr., U.S. Restaurants, Inc., 1780 Swede Road, Blue Bell, PA 19422; 610-277-4200, Fax 277-5160.

Abbott's Frozen Custard, Inc. trades as Abbott's Frozen Custard at 17 locations in NY. The stores, selling custard and frozen yogurt, occupy spaces of 1,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. The company is franchising.

For more information, contact Gail Drew, Abbott's Frozen Custard, Inc., 4791 Lake Avenue, Rochester, NY 14612; 716-865-7400, Fax 865-6034.

Davco Restaurants, Inc. does business as Wendy's at 223 locations in IL, MD, MO, TN and VA. The fast food restaurants occupy spaces of 3,200 sq.ft. in freestanding facilities, power centers and regional malls. Plans call for as many as 15 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 30,000 within two miles. Leases running 20 years are typical.

For more information, contact Ms. L. Mallan Kelbaugh, Davco Restaurants, Inc., 1657 Crofton Boulevard, Crofton, MD 21114; 410-721-3770, Fax 793-0754.

High Tech Burrito operates 11 locations in CA. The Mexican fast food restaurants occupy spaces of 1,000 sq.ft. to 1,400 sq.ft. in specialty and strip centers. Preferred anchors include upscale supermarkets. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 35,000 within two miles earning $50,000 as the average income.

For more information, contact Craig Semmelmeyer, High Tech Burrito, c/o Terranomics Retail Services, 455 North Point, San Francisco, CA 94133; 415-474-6100, Fax 771-1115.

Caribou Coffee Company, Inc. trades as Caribou Coffee Company at 46 locations in GA, IL, MI, MN, NC and OH. The specialty coffee shops occupy spaces of 1,500 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Collin Barr, Caribou Coffee Company, Inc., 615 North Third Street, Minneapolis, MN 55401; 612-359-2700, Fax 359-2730.

Cici's Pizza operates 175 locations in AL, AR, FL, GA, LA, MS, MO, NC, NM, SC, TN and TX. The restaurants, serving pizza and pasta, occupy spaces of 3,900 sq.ft. in freestanding facilities and strip centers. Plans call for as many as 65 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 15,000 within one mile. Leases running 10 years are typical and the company is seeking spaces running 3,400 sq.ft.

For more information, contact Robert Baker, Cici's Pizza, c/o Karns Commercial Real Estate, Inc., 1620 Rafe Street, Suite 114, Carrollton, TX 75006; 214-466-2040, Fax 466-2041.

Jake's Pizza International operates 57 locations in AZ, CA, FL, IL, IN, NV and WI. The restaurants occupy spaces of 1,000 sq.ft. to 2,400 sq.ft. in strip centers. Growth opportunities are sought nationwide. Preferred demographics include a population of 20,000 within three miles. Leases running five years are typical and the company is franchising.

For more information, contact Robert Wallen, Jake's Pizza International, 16 Official Road, Addison, IL 60101; 708-543-0022, Fax 543-2220.

Godfather's Pizza operates 400 locations nationwide. The pizza restaurants occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in outlet and strip centers. Growth opportunities are sought nationwide. The company is franchising.

For more information, contact Pam Fox or Bruce Cannon, Godfather's Pizza, 9140 West Dodge Road, Omaha, NE 68114; 800-456-8347, Fax 255-2687.

Schlotzsky's Deli operates more than 500 locations nationwide and internationally. The fast food restuarants, serving sandwiches, occupy spaces of 1,800 sq.ft. to 4,000 sq.ft. in downtown store fronts and freestanding facilities. Plans call for 12 openings in the coming 18 months. Expansion will take place in NJ and NY. Preferred demographics include a population of 50,000 within three miles earning $50,000 as the average income. Leases running 15 years are typical and the company prefers a vanilla box.

For more information, contact Jonathan W. Burke, c/o J.W. Burke & Company, 350 Lexington Avenue, New York, NY 10016; 212-682-4300, Fax 682-9828.

Buyers & Sellers of Commercial Properties

Blitzer-Rosenblum Realty Group brokered the sale of a 3 1/4-acre site in Hazlet, NJ for the construction of a freestanding Lone Star Steakhouse restaurant.

For more information, contact Steven Blitzer at (908-679-8686).

Grubb & Ellis Company has the listing to sell Commerce Court in Pittsburgh, PA. The 370,000 sq.ft. project is a mixed-use facility containing retail and office space. The asking price is $37 million.

For more information, contact Grubb & Ellis at (412-281-0100).

Keen Realty Consultants, Inc. has the listing to dispose of 79 former Merry-Go-Round stores in AZ, CA, CO, CT, FL, GA, IL, IN, KY, MA, MD, MI, MN, NC, NJ, NM, NY, OH, PA, TX, UT, VA and WI. Various size units are available.

For more information, contact Keen Realty Consultants at (516-482-2700).

Sevo Miller, Inc. brokered the sale of Mission Trace II Shopping Center in Lakewood, CO. The 86,401 sq.ft. project was sold by G.E. Capital Corporation to Matterhorn One Ltd. for $3.47 million. The company has the listing to sell 19.05 acres of land in Westminster, CO. The site, zoned commercial, is priced at $4 psf. The company also has the listing to sell Virginia Village Shopping Center in Denver, CO. The 46,339 sq.ft. 100% leased project in anchored by Hugh M. Wood Home Improvement Center. The asking price is $3.05 million.

For more information, contact Ray Perry or Ira Shwartz (Mission Trace), Chris Arnold (land) or Steve Sebern at (303-721-1000), Fax (721-7249).

Midland Development Group, Inc. brokered the sale of 7.5 acres of land to AMC Theaters at the West Park Complex in St. Louis, MO. AMC plans to build a 16-screen movie complex on the site.

For more information, contact Joseph Apter at (314-576-1900).

Grenadier Realty Corp. has the listing to sell a one-story retail building in Brooklyn, NY. The project has eight storefronts, 120 feet of frontage on Mermaid Avenue and is 7,500 sq.ft. The asking price is $850,000.

For more information, contact Craig Slosberg at (718-240-4175), Fax (942-2631).

Mark Properties, Inc. represents an equity fund in the market to acquire anchored shopping centers in the Eastern time zone. Properties of interest have GLAs between 40,000 sq.ft. and 150,000 sq.ft. and have cap rates of 10.5% of existing income. Properties in second and third tier locations are also of interest.

For more information, contact Todd Zapolski at (919-688-8006), Fax (688-7055).

Starbare Associates has the listing to sell Round Valley Plaza in Lebanon, NJ. The 16,800 sq.ft. project is tenanted by a restaurant, a health club and a chiropractor's office. A 26,000 sq.ft. expansion has recently been approved. The asking price is $1.3 million.

For more information, contact Max Spann, Jr. at (1-800-88-STARBARE).

Lanard & Axilbund Colliers has the listing to sell a 54-acre site approved for a shopping center and professional office site in Lower Providence Township, PA. Approximately 19.5 acres is zoned retail, with 1,300 feet of frontage on Ridge Pike and 400 feet on Eagleville Road. The site offers the potential for the development of 200,000 sq.ft. of retail space. The remainder of the site is zoned for office development. The seller is Peco Energy.

For more information, contact Lanard & Axilbund Colliers at (215-925-4600), Fax (925-1040).

McCollom Realty Ltd. has the listing to sell Coventry Plaza in Crystal Lake, IL. The 25,000 sq.ft. project is tenanted by White Hen Pantry, Leap N' Lizards and Summer Academy for Dance. The asking price is $795,000. The company also has the listing to sell 100 acres of land in Crete, IL. The site has utilities and is zoned commercial & residential. The asking price is $1.5 million.

For more information, contact Peg Miller or Terry McCollom at (708-383-6450).

Lease Signings

Anthony Realty, Inc. (908-935-1144) leased 3,400 sq.ft. to Contemporary Institute of Dance and 1,500 sq.ft. to Head Quarters Hair Salon at Nine North Plaza in Howell Township, NJ.

Grenadier Realty Corp. (718-240-4175) leased 5,200 sq.ft. to Blockbuster Video and 12,000 sq.ft. to Thriftway Drugs at Starrett at Spring Creek Shopping Center in Brooklyn, NY.

Scotmar Property Associates, Inc. (610-825-7494) leased 1,700 sq.ft. to Tinder Box International at Bethlehem Square in Bethlehem, PA; 4,850 sq.ft. to The Sly Fox at Pikeland Village Square in Kimberton, PA; and 1,100 sq.ft. to Smartbeep at Loehmann's Plaza at Pilgrim Gardens in Drexel Hill, PA.

Divaris Real Estate, Inc. (804-497-2113) leased 6,800 sq.ft. to The Rowe Showplace, Inc. at Columbus Square in Virginia Beach, VA.

Ross Realty Group (813-725-2800) leased 1,150 sq.ft. to Belleair Pets at Belleair Place Shopping Center in Clearwater, FL; 1,160 sq.ft. to Tam Van Tran at Plaza 66 in Kenneth City, FL; and 28,800 sq.ft. to Scotty's at East Bay Plaza in Largo, FL.

Morbitzer Group, Inc. (407-539-1000) leased 750 sq.ft. to Merlin's One Hour Photo at Village Marketplace in Port Charlotte, FL; 750 sq.ft. to Heads Above The Rest at Magnolia Layne Shopping Center in Green Cove Springs, FL; and 1,650 sq.ft. to Ms. Janet's Dance and Fitness at Lancaster Square in Orlando, FL.

Paster Enterprises (612-646-7901) leased space to Linder's Greenhouse at Moundsview Square in Moundsview, MN; Northway Shopping Center in Circle Pines, MN; and Southview Shopping Center in South St. Paul, MN.

Exclusives: Leasing & Management Assignments

Oxford Real Estate Services Group, Inc. (203-222-3939) is the exclusive tenant representative for Caffino, Inc., the largest drive-thru gourmet coffee chain in the United States. The company is looking to open 24 sites throughout CT and is seeking 12,000 sq.ft. on a freestanding lot for a land lease.

Mid-America Asset Management Co. (708-954-7300) has been appointed the exclusive leasing agent for Westbrook Commons Shopping Center in Westchester, IL. The 121,558 sq.ft. project is anchored by Dominick's Finer Foods and Walgreens. Spaces from 1,250 sq.ft. to 2,700 sq.ft. are available for lease and the center has a three-mile population of 93,000 earning $73,455 as the average household income.

Paul Lawrence Realty Associates, Inc. (908-757-4900) has been named the exclusive leasing agent of Gateway Shopping Center in Old Bridge, NJ. The 230,000 sq.ft. 95% occupied project is anchored The Wiz, Marshalls, Old Navy and Drug Emporium.

The Linder Company Ltd. (513-792-0040) is the exclusive tenant representative for All About Sports. The company is seeking sites running 30,000 sq.ft. to 35,000 sq.ft. within a 250 to 300 mile radius of Cincinnati, OH.

Harvey Lindsay Commercial Real Estate (804-640-8700) has been named the exclusive leasing and managing agent for Fairfield Shopping Center, a 231,000 sq.ft. project in Virginia Beach, VA; Washington Square Shopping Center, a 176,000 sq.ft. project in Grafton, VA and James York Plaza in Williamsburg, VA.

Who's Opening and Where...

Wal*Mart (501-273-4000) is building a 201,000 sq.ft. Supercenter in Bradenton, FL. The store, which will be open 24-hours-a-day, will feature 36 general merchandise departments, a full grocery department, a McDonald's restaurant, a Cost Cutters hair salon and a Blowout Video store. The company is also planning to build a 199,000 sq.ft. Supercenter in Manatee County, FL and a regular-sized Wal*Mart store in Sarasota, FL.

Home Depot (404-433-8211) is seeking approval to build a 130,000 sq.ft. store in Edmond, OK.

AMC Theaters (816-221-4000) plans to open an 11,000 sq.ft., two-screen movie theater in Celebration, FL this year. Celebration is a 4,900-acre town being built from the ground up by the Walt Disney Company. A total of 68,000 sq.ft. of retail and restaurant space is planned.

He-Ro Group Outlet (201-330-1880) recently opened a 10,000 sq.ft. store at the Supermall of the Great Northwest in Auburn, WA.

CompUSA, Inc. (214-982-4000) plans to open a 30,000 sq.ft. store at The Village at Collin Creek Shopping Center in Plano, TX during the Fall. The company is also planning to open a 30,000 sq.ft. store in New York City, NY. It would be the company's second in the city.

Starbucks Coffee (206-447-1575) recently opened a coffee shop at Southtown Center in Bloomington, MN.

Winn-Dixie Stores, Inc. (904-783-5000), which operates 1,180 supermarkets, is exploring the possibility of opening a store in the Butler Boulevard/Pablo Creek area of Jacksonville, FL.

The Good Guys! (415-615-5000) recently opened its second Generation 21 concept store, a 20,000 sq.ft. unit, at Pinole Vista Shopping Center in Pinole, CA.

The Coffee Beanery (810-733-1020) plans to open 25 stores in the coming year in FL. The company currently operates 175 locations in 31 states.

HomePlace (216-498-0555) recently opened three 50,000 sq.ft. stores in the Phoenix, AZ market. Stores were opened at Ahwatukee Foothills Towne Center and Metrocenter in Phoenix and at Mesa Pavilions in Mesa, AZ. The company currently operates 35 stores and is looking to have 100 by the end of next year.

Mergers & Acquisitions

The Rouse Company (410-992-6500) and The Hughes Corp. have approved a definitive merger agreement in which Rouse Co. will acquire through merger The Hughes Corp. for approximately $520 million. The Hughes Corp. will retain its name and management and become an operating division of Rouse. The assets Rouse is acquiring from Hughes include the 75% interest in the 840,000 sq.ft. Fashion Show Mall in Las Vegas, four masterplanned business parks, the new 22,500-acre masterplanned community of Summerlin, NV, and several commercial buildings and land parcels in NV and CA. The deal is expected to be completed next month.

Price Chopper Supermarkets (518-355-5000) recently acquired 12 Big D Supermarkets in the Worcester, MA area from the Wonder Market Cos., Inc. for $20 million. Price Chopper purchased the operating company and leased back the stores, which will be converted to Price Chopper supermarkets. Price Chopper operates 79 stores in MA, VT, NY and PA.

Peebles, Inc. (804-447-5200), a 65-unit department store chain, plans to merge with Carlisle Retailers, Inc., (216-998-1868) a seven-unit chain operating in OH and western PA. After the merger, which is expected to be completed next month, the Carlisle stores will continue to operate under that name.

Financial News...

International Dairy Queen (612-830-0200) announced that earnings for its first quarter increased to $5.088 million from $4.909 million during the first quarter last year. First quarter revenues increased to $75.533 million from $67.53 million last year. The company operates more than 5,500 Dairy Queen units in the U.S., Canada and other foreign countries; 430 Orange Julius units and 70 Karmelkorn units.

Restaurants Unlimited, Inc. (206-548-1032) recently spun off its Cinnabon World Famous Cinnamon Rolls division into a separate company. An initial public offering of stock in the newly-formed company is planned for later this year. Cinnabon operates more than 300 company-owned and franchised units in 37 states, Canada and Mexico. The company plans to grow at the rate of at least one new unit per week.

Lead Sheet

Cotton Island Clothing Co.

dba Cotton Island Clothing

Susan Savalle

35840 Beattie

Sterling Heights, MI 48312

810-268-3880, Fax 268-3846

Apparel

The 20-unit chain operates locations in FL, IL, IN, MI and OH. The apparel stores operate seasonal kiosks primarily during the summer months and around Christmas while using 100 sq.ft. kiosk spaces in regional malls. Plans call for 100 temporary kiosks in the coming 18 months. Expansion will take place in the existing markets.

Frank's Nursery & Crafts

dba Frank's Super Crafts,

Frank's Nursery & Crafts

Kristen Frohn

6501 East Nevada Avenue

Detroit, MI 48234

313-564-2169, Fax 564-2250

Arts & Crafts

The 267-unit chain operates locations nationwide. The stores, selling nursery items as well as arts & crafts supplies, occupy spaces of 40,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place nationwide.

Buck A Book

William Stein

c/o Stein Investment Properties

103 Levbert Road

Newton, MA 02159

617-244-6479, Fax 244-3689

Books

The 17-unit chain operates locations in CT, MA, NH and RI. The stores, selling publishers over-runs at the fixed price-point of $1 as well as regularly priced books, greeting cards and seasonal items, occupy spaces of 2,500 sq.ft. to 4,000 sq.ft. in downtown store fronts, power centers and regional malls. Plans call for six openings in the coming 18 months. Expansion will take place within the existing markets. The company prefers to locate its sites in densely populated areas.

Kirlin's, Inc.

dba Kirlin's Hallmark

Dale Kirlin

532 Maine Street

Quincy, IL 62301

217-224-8953, Fax 224-9400

Cards

The 82-unit chain operates locations in IA, IL, IN, KY, MI, MO, OH, OK, TN and WI. The stores, selling cards, gifts and candy, occupy spaces of 3,000 sq.ft. to 4,500 sq.ft. in regional malls and strip centers. Growth opportunities are sought in the existing markets.

Shareware City

Ted Kraus

c/o TKO Real Estate Advisory Group, Inc,

100 Youngs Road

Mercerville, NJ 08619

609-587-6200, Fax 587-3511

Computers

The seven-unit chain operates locations in the Northeastern region. The stores, selling computer software and shareware, occupy spaces of 500 sq.ft. to 1,000 sq.ft. in regional malls and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the Midwestern and Northeastern regions.

TOL Franchise Group

dba Top Of The Line Fragrances

Steven Ciaverelli

515 Bath Avenue

Long Branch, NJ 07740

908-229-0014, Fax 222-1762

Cosmetics

The five-unit chain operates locations in FL, NJ, PA and TN. The stores, selling cosmetics, fragrances and bath products, occupy spaces of 700 sq.ft. to 1,200 sq.ft. in outlet centers. Growth opportunities are sought nationwide.

Building #19, Inc.

dba Building #19

Lee MacDonald

19 Shipyard Drive

Hingham, MA 02043

617-749-6900, Fax 749-3691

Discount

The 14-unit chain operates locations in MA, NH and RI. The stores, selling surplus and salvage items, occupy spaces of 60,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing markets.

Skyway Communications, Inc.

dba Totally Wireless

Michael Merrill

1062 De Anza Boulevard

San Jose, CA 95129

408-366-5950

Electronics

The five-unit chain operates locations in CA. The stores, selling cellular phones, pagers, modems and software, occupy spaces of 600 sq.ft. to 1,000 sq.ft. in freestanding facilities, regional malls and end-caps of strip centers. Growth opportunities are sought in CA, GA, MD, WA and Washington, D.C.

Just For Fun, Inc.

dba Just For Fun

Howard Alterson

1901 Raymond Drive, Suite 7

Northbrook, IL 60062-6739

708-559-8606

Entertainment

The seven-unit chain operates locations in FL, IL, LA, MI and TX. The entertainment centers occupy spaces of 5,000 sq.ft. in regional malls. Preferred co-tenants include movie theaters and food courts. Plans call for as many as two openings in the coming 18 months. Expansion will take place within the existing markets.

The Piece Good Shop

dba Piece Good Shop, Home Center

Greg Dobis

280 Charlois Boulevard

Winston-Salem, NC 27103

910-768-3930, Fax 760-1641

Fabric

The 205-unit chain operates locations in AL, DE, FL, GA, KY, MD, MA, MI, NC, OH, PA, SC, TN, VA and WV. The stores, selling fabrics, crafts and home decorating items, occupy spaces of 10,000 sq.ft. in freestanding facilities, power, specialty and strip centers. Growth opportunities are sought in the existing markets.

Deck The Walls

Charles Valles

PO Box 1187

Houston, TX 77251-1187

713-775-5263, Fax 775-5250

Gifts

The 208-unit chain operates locations nationwide. The stores, offering artwork and custom framing, occupy spaces of 1,800 sq.ft. to 2,000 sq.ft. in regional malls. Plans call for 15 openings in the coming 18 months. Expansion will take place nationwide.

Fantastic Sam's International, Inc.

dba Fantastic Sam's International

Dick Williams

1400 North Kellogg Drive, Suite E

Anaheim, CA 92807

714-779-3910, Fax 779-6864

Hair Salon

The 1,260-unit chain operates locations nationwide. The family hair salons occupy spaces of 2,500 sq.ft. in strip centers. Growth opportunities are sought nationwide.

Health Haus, Inc.

dba Health Haus

David Van Vlymen

6605 SW Dover Street

Portland, OR 97225-1005

503-244-8849, Fax 244-9572

Health

The seven-unit chain operates locations in OR. The stores, selling health products, occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in regional malls, power, specialty and strip centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in WA.

Euromarket Design, Inc.

dba The Crate And Barrel

Tony Garripo

725 Landwehr Road

Northbrook, IL 60062

708-272-2888, Fax 272-6841

Housewares

The 62-unit chain operates locations in CA, IL, MA, ME, MN, TX, VA, MD, FL, GA, MI, NY and Washington, D.C. The stores, selling housewares and home furnishings, occupy spaces of 13,000 sq.ft. in regional malls. Plans call for three openings in the coming 18 months. Expansion will take place in CA, CT, NJ or NY.

King Size Wash

Joe Delligatti

c/o J.W. Burke & Company

350 Lexington Avenue

New York, NY 10016

212-682-4300, Fax 682-1898

Laundromat

The two-unit chain operates locations in NY. The state laundromat and drycleaners occupy spaces of 2,000 sq.ft. to 4,000 sq.ft. in downtown store fronts and strip centers. Preferred anchors include supermarkets. Plans call for as many as six openings in the coming 18 months. Expansion will take place in the five boroughs of New York City as well as on Long Island, NY. Demographics include a population of 50,000 within five miles earning $20,000 to $25,000 as the average income.

Leather Loft Stores

Roger Healy

PO Box 1070

Exeter, NH 03833

603-778-8484, Fax 778-0374

Luggage

The 125-unit chain operates locations nationwide. The stores, selling luggage, small leather goods and jackets, occupy spaces of 2,250 sq.ft. in outlet centers. Plans call for 10 openings in the coming 18 months. Expansion will take place nationwide.

Virgin Retail Group

dba Virgin Megastore

Michael Townsend

8912 Burton Way

Beverly Hills, CA 90211

310-724-5967, Fax 724-5923

Music

The 66-unit chain operates locations in CA and NY as well as in 15 foreign countries. The music stores occupy spaces of 20,000 sq.ft. to 60,000 sq.ft. in downtown store fronts, freestanding facilities, power centers and regional malls. Growth opportunities are sought nationwide.

Pass Pets Ltd.

Art Stone

170 Boulder Industrial Drive

Bridgeton, MO 63044

314-739-8900, Fax 739-5533

Pet Store

The 36-unit chain operates locations in IL, IN, MI, MO and TN. The pet stores occupy spaces of 1,500 sq.ft. to 2,200 sq.ft. in regional malls. Growth opportunities are sought in TN.

Perfecta Camera Corp.

Charles Zoulias

49 Harvey Road

Londonderry, NH 03053

603-432-0501, Fax 434-2689

Photo

The 25-unit chain operates locations in ME, MA, NH, NY and VT. The stores, selling photographic equipment and offering one-hour film processing services, occupy spaces of 1,000 sq.ft. to 3,000 sq.ft. in regional malls, power and strip centers. Plans call for as many as six openings in the coming 18 months. Expansion will take place in the existing markets as well as in CT and RI.