Issue 25 for the week of July 24, 1996

The Dealmakers Issue Number 25 for the week of July 24, 1996.

My Way by Ted Kraus

Below is a fax handed to me a few days ago. I deleted the sender's name to protect the "innocent." My "defense" is at the end.

FAX TO ANN O'NEAL:

"Well, we were sailing along just fine... I was reasonably convinced that your publication could be of some value to me, even though I do not part with $239 without a great deal of thought, when along came last week's issue, and here's this first class jerk!!! voicing his smart ass, ill conceived editorial debasing "exclusive brokers." Well, I'm an exclusive broker, and I'm not a relative of any of my clients, and I know the market well enough to get good deals for my clients... and I was very offended by that editorial.

Then I looked up the mast head, and saw that Ted Kraus is the president of the company, and that you're the publisher.

Well, I'm not going to subscribe to any publication that views my profession with such disdain, and I feel very sorry for anyone who has to work with Mr. Kraus. If he's that rude and inconsiderate on a daily basis, you and the entire staff, have my sincere sympathy."

Needless to say, Ann was ticked at me for "costing" her a customer (Josh's tuition is due shortly and she always gets uptight at the prospect of parting with a lot of money). She also wanted to send a fax back saying that if she feels sorry for anyone who has to work with me, then pity her, since she lives with me, but my pride prevented her from trying to invoke pity just to keep a sub.

Anyway, since numerous other people have commented on my position regarding exclusives, I believe I should clarify what I've said in the past (i.e. Richard Nixon, "Just because you heard me say it doesn't mean I meant it"). I am not anti-brokers or anti-exclusives, I am saying that exclusives are often abused and that the abuses can seriously hurt the company granting the exclusive. It's like our government, in concept it's great, but the vast majority of politicians are either so corrupt or incompetent that the public is constantly getting the shaft. The same is true for exclusives. Yes they make sense, it's just that it's too often a vehicle for abuse. I blame the company's management more for the problem than the individual who took the bribe, settled for a second best location to do a favor or whatever. The top management should have been aware of the corruption, if they weren't then they should not be top management. It's like the Phar-Mor fiasco, yes their president was a crook, but you better believe there were a lot more people involved and even more who knew about it, but the full truth will never be known. No one who was a decision maker for that company should have been allowed to remain (that's also how to cure the rash of bankruptcies we're having, if all management is fired when a company goes "11," I'd bet that bankruptcies would drop in half).

I was talking recently to the reporter for the Wall Street Journal who's been doing the follow up stories for the Kmart bribery charges. He admitted that while he "knows" there's a lot of people involved, the truth, once again, will never be known since no one will cooperate/talk. (Wouldn't Nixon, Agnew or Clinton have loved the shopping center industry on their side). Now don't get me wrong, I don't wake up in the morning and straighten my halo, but there are problems in our industry that have to be discussed. The ICSC takes a position of not writing editorials, they are neutral on this type of subject matter and that's neither right or wrong, they're a trade organization not a social conscience. Most of the other publications tend to editorialize either on how great a seminar of theirs will be, how much everyone loves their publication or why advertising with them is smart (FYI, advertising with us is brilliant). We, or least me, when it comes to the editorial aspect of this publication take a different position. Candidly, I don't care if you agree with me or not, I'm a 51-year-old, white, of European descent male, have a wife and son who love me (at least most of the time) have a few good friends and earn enough money that while we're not rich, the bills for now are being paid and life is decent, therefore I can afford to say what I feel and more importantly, get our readers to think/react about a particular subject. Your reaction, agreeing or disagreing is the important thing. If I can get just a few people to think address the problem of corruption, I've done my job.

The reactions to doing an editorial is a problem I've learned to live with. I've been called anti-Semitic because of my opinions (that's real stupidity), accused of trying to be the conscience of the industry, not knowing what I'm talking about (Ann agrees there) and a dozen other names (one weirdo occasionally cuts out my picture, pastes it on a woman's body and places it next to a picture of Elvis). A dozen times a year I receive a faxed copy of "My Way" with grammatical corrections made (they must be really bored). So overall, I get people to react and in most cases, that's good. But again, exclusives are not bad, it's not keeping a "handle" on the situation I object to.

Two parting thoughts. Recently I received a fax offering T.J. Maxx's and Marshall's surplus property. It listed the location, square footage and rent. Reading it was interesting and insightful. Marshall's, overall, paid more rent than TJ and did less volume. While it is true that both companies had "favored" brokers/developers, TJ seems to have had better cost control, top management was involved both from the real estate and operations viewpoint. This is reflected in who "survived" the merger. Show me a constantly high rent payer and I'll show you a company that will be in trouble shortly.

Next, I'm confused on one of my predictions. A few months ago, when the ICSC acquired Value Retailing News, I predicted that within a few years, the Outlet and the conventional shopping center Industry would end up having one convention instead of two distinct ones. Well, the other day I received a fax from Value Retailing News announcing they will be holding its Fall Convention at the same time as the ICSC's Dealmaking Show in Kansas City. As an exhibitor, I think that's great. Kansas City has traditional been slow, so throw in another retail real estate event, even if it's being held in a separate exhibit area, and attendance, therefore potential deals, should be up. I give the ICSC lots of credit for putting this together. Then today I received a postcard from DOC (Developers of Outlet Centers) announcing its annual Fall Convention. (DOC is a trade association that has traditionally been closely involved with VRN and its conventions.) Talk about being confused. I spoke to DOC and at press time, they were proceeding full steam ahead and expecting 500 to 600 attendees. It ends up, making a long story short, that while DOC is closely associated with VRN, it is not part of it, and the Kansas City show is the "Official" VRN convention. Now to further complicate matters, MIE (Manufactures Ideas Exchange, a trade association of manufactures involved in outlet retailing) recently sent its members a letter saying in essence "We're mad at DOC, do you want to boycott their fall convention?" (Could you imagine retailers wanting to boycott an ICSC function?) This whole mess makes no sense. Oh, I forgot, the Prime Group (one of the largest outlet developers) is having its own "dealmaking" in August. To hold two, three or possibly four competing shows at almost the identical time is stupid, but logic doesn't always prevail. From a selfish point of view, I'd prefer that Kansas City win. The more people there, the better for all the attendees. I don't know why DOC, MIE, Prime and VRN have decided to compete, but I do know that if they don't co-operate the biggest losers will be outlet retailers and developers. The outlet industry is small, if it becomes disenfranchised, it becomes ineffective.

Home Improvement Tenants Seeking Sites Nationwide

Dykes Lumber Company, Inc. trades as Dykes Lumber Company at six locations in NJ and NY. The home improvement stores occupy spaces of 18,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing markets.

For more information, contact Charles Kreyer, Dykes Lumber Company, Inc., 1899 Park Avenue, Weehawken, NJ 07087; 201-867-0391, Fax 867-2981.

The Strober Organization, Inc. trades as Strober's at 10 locations in CT, NJ, NY and PA. The home centers occupy spaces of 10,000 sq.ft. to 59,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in NJ and PA.

For more information, contact Richard Young, The Strober Organization, Inc., 550 Hamilton Avenue, Brooklyn, NY 11232; 718-832-1212, Fax 788-3614.

Eagle Hardware & Garden, Inc. trades as Eagle Hardware & Garden at 24 locations in AK, CO, HI, MT, OR, UT and WA. The home improvement stores occupy spaces of 120,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought nationwide.

For more information, contact David Heerensperger, Eagle Hardware & Garden, Inc., 981 Powell Avenue Southwest, Renton, WA 98055; 206-227-5740, Fax 204-5169.

Home Depot, Inc. trades as Home Depot at 423 locations throughout North America. The home improvement stores occupy spaces of 80,000 sq.ft. to 120,000 sq.ft. in freestanding facilities. Plans call for 100 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Bryan Fields, Home Depot, Inc., 2455 Paces Ferry Road, Atlanta, GA 30339-4024; 770-433-8211, Fax 431-2917.

Pelican Building Centers operates 32 locations in AL, GA, NC, SC and TN. The home improvement stores occupy freestanding facilities on land areas running five acres. Plans call for as many as 25 openings in the coming 18 months. Expansion will take place in the Southeastern region.

For more information, contact Frank Chambers, Pelican Building Centers, PO Box 260001, Conway, SC 29526; 803-347-4235, Fax 347-6009.

Finnaren & Haley operates 22 locations in DE, NJ and PA. The paint stores occupy spaces of 2,000 sq.ft. in freestanding facilities and strip centers. Plans call for two openings annually. Expansion will take place within the existing markets.

For more information, contact Regina Pakradooni, Finnaren & Haley, 915 Washington Street, Conshohocken, PA 19428; 610-825-1900, Ext. 163, Fax 397-0645.

Mergers & Acquisitions

BAB Holdings, Inc. (312-380-6100) recently entered into a letter of intent to acquire the assets of Chesapeake Bagel Bakery. Chesapeake Bagel Bakery operates 137 units in 26 states, while BAB operates 131 Big Apple Bagel units in 26 states and Canada. The merger will create the nation's second largest bagel chain with both companies retaining their name. A definitive agreement is expected to be executed next month.

Barnes & Noble, Inc. (212-633-3300) plans to purchase a 20% minority stake in Chapters, Inc., Canada's largest bookseller. Barnes & Noble is taking a passive position in Chapters consistent with Canadian restrictions on foreign control and does not plan to rollout Barnes & Noble superstores in Canada. Chapters operates 375 traditional bookstores trading as SmithBooks and Coles Bookstores and five superstores trading as Chapters and World's Biggest Bookstore throughout Canada.

Whole Foods Market, Inc. (713-661-7753) recently signed a definitive agreement to acquire the 22-unit Fresh Fields, Inc. The deal, which is expected to be completed during September, will give Whole Foods Market 69 natural foods supermarkets in 16 states.

CompUSA, Inc. (214-982-4000) recently acquired a 10% interest in InfoSource, Inc., a FL-based software development company. Part of the deal calls for InfoSource to create customized software and license its skills-assessment software for CompUSA's computer training classes.

Modell's Sporting Goods (718-956-8600) recently acquired 16 former Herman's Sporting Good stores in MD, NJ, NY, PA and Washington, D.C. at a lease auction of the bankrupt company.

Rite Aid Corp. (717-975-5800) recently acquired 34 Taylor Drug Stores in KY and IN.

Diamond Shamrock (210-641-6800) plans to sell 27 of its convenience stores located in the San Antonio, TX area to Coastal Corp. Terms of the deal, which is expected to close by the end of the month, were not announced, but speculated to be between $15 million and $20 million. Diamond Shamrock, which recently acquired the 661 National Convenience Store chain, decided to sell some of its stores to help reduce the company's debt. Of the stores being sold, 14 units trade as Stop N Go and 13 trade as Diamond Shamrock.

Ground Round Restaurants, Inc. (617-380-3100) plans to sell as many as 16 of its restaurants to Lone Star Steakhouse & Saloon, Inc. (316-264-8899). Until the deal is finalized, Ground Round will not say which units will be sold. Ground Round currently operates 191 units primarily throughout the Northeastern region. Lone Star currently operates 175 units, including 29 restaurants in the Mid-Atlantic states, excluding NY. The company does not operates any units in New England.

Shaw Industries, Inc. (706-275-3126) recently completed its acquisition of New York Carpet World, Inc., a chain of 200 stores operating in 15 states.

Manhattan Bagel Company, Inc. (908-544-0155) recently completed a transaction in which it added 23 Bagel Brothers stores in the Buffalo, NY and Cleveland, OH markets. Under terms of the agreement, Manhattan Bagel purchased the company's bagel dough factories for cash and shares of common stock. The 23 Bagel Brother stores will be renamed and the former owners will continue to operate them as franchises. The transaction gives Manhattan Bagel Co. 247 franchised and company-owned units in 15 states and Canada.

New Construction

Courtelis Company recently broke ground on Sabal Pointe Plaza in Merritt Island, FL. The 85,959 sq.ft. project, which is located across from Merritt Square Mall, will be anchored by a 30,724 sq.ft. Toys 'R Us, a 20,000 sq.ft. Barnes & Noble, an 8,025 sq.ft. Pier 1 Imports and a 5,230 sq.ft. Long Horn Steakhouse. The site is expected to open during October.

For more information, contact Rod Casten of Courtelis Company at (305-379-8467).

Lehigh Housing Development Corp. is developing East Windsor Place in East Windsor, NJ. The 300,000 sq.ft. project will be anchored by a SuperFresh Supermarket, Hoyts Cinema and Sears Hardware. Space is available for one additional anchor tenant as well as small shop tenants. The project is expected to open during December 1997.

For more information, contact Lehigh Housing Development Corp. at (908-741-7441).

CBL & Associates Properties, Inc. recently broke ground on Bonita Lakes Mall in Meridian, MS. The 650,000 sq.ft. project will be anchored by Dillard's, J.C. Penney, McRae's, Sears and Goody's. Plans also call for the development of a 65,000 sq.ft. associated center adjacent to the mall and the development of several outparcels on the periphery. An October 1997 opening is planned. The company also recently broke ground on Salem Crossing Shopping Center in Virginia Beach, VA. The 289,382 sq.ft. project will be anchored by a 196,928 sq.ft. Wal*Mart Supercenter and a 54,884 sq.ft. Hannaford Food & Drug Superstore. Additional retailers will include Pet Warehouse Stores, Cato & Cato Plus, Dollar Tree Stores, Friedman Jewelers, Soccer City, GNC and Haircrafters Salons. Moovies plans to open a freestanding store on an outparcel of the site. The project is expected to open during early 1997.

For more information, contact CBL & Associates Properties, Inc. at (423-855-0001), Fax (490-8662).

The Schultz Organization recently broke ground on phase I of Raritan Village Shopping Center in Raritan Township/Flemington, NJ. The 63,000 sq.ft. project will be anchored by a 50,000 sq.ft. Edwards Super Food Store. The balance of the space will be occupied by a bank and specialty tenants.

For more information, contact Harvey Schultz or Gene Blackman of The Schultz Organization at (908-855-0001).

Faison Retail recently broke ground on Oxford Oaks in Lower Makefield, PA. The 198,800 sq.ft. project will be anchored by a Super G supermarket, Kohl's Department Store and Blockbuster Video. Other retailers will include Starbucks, Einstein Bros. Bagels and Norman's Hallmark. The project, which is located one-half mile north of the Oxford Valley Mall, is expected to open during April 1997.

For more information, contact Roger Gerst, Director of Leasing of Faison's Mid-Atlantic/Northeast office at (301-718-0330).

Breslin Realty Development Corp. in conjunction with John Loeffler and Royal Ahold, plan to develop Crystal Plaza in West Babylon, NY. The 190,000 sq.ft. project will be anchored by a 50,000 sq.ft. Edwards Super Food Store.

For more information, contact Wilbur Breslin of Breslin Realty Development Corp. at (516-741-7400).

Lease Signings

The Mall at 163rd Street (305-944-7132) leased space to Watch It and Auto Sound at The Mall at 163rd Street in North Miami Beach, FL.

Jack Lupo Realty Company, Inc. (407-391-8244) leased 3,007 sq.ft. to Donigan Nutrition Center in Boca Raton, FL and 1,200 sq.ft. to North Ridge Diagnostic, Inc. in Pompano Beach, FL.

Judson Realty, Inc. (212-974-1900) leased the entire 12th floor to Tibor De Nagy Gallery at 724 Fifth Avenue in New York, NY.

Sigma National, Inc. (804-320-6100) leased 36,460 sq.ft. to OfficeMax at Yoder Farms Shopping Center in Newport News, VA and 30,000 sq.ft. to OfficeMax at The Colonnades West in Richmond, VA.

Divaris Real Estate, Inc. (804-497-2113) leased 19,600 sq.ft. to Aaron Rents, Inc. in Newport News, VA; 1,024 sq.ft. to Pizza Hut of America, Inc. at Acredale Shoppes in Virginia Beach, VA; 6,000 sq.ft. to Video Update at Mitchell Point Shopping Center in Newport News, VA; 23,641 sq.ft. to Autozone at Marketplace Square in Chesapeake, VA; 1,875 sq.ft. to Dragon Palace at Westgate Square Shopping Center in Dinwiddie, VA; 1,337 sq.ft. to Cho Hon & Man Ho Han for an Oriental restaurant at the site of a former Taco Bell in Newport News, VA; 1,170 sq.ft. to Lynnhaven Custom Computers at Todds Lane Shopping Center in Hampton, VA and 1,000 sq.ft. to Hair Legends at Shady Banks Shopping Center in Yorktown, VA.

Schultz Foster Addison Real Estate, Inc. (904-354-1789) leased 1,135 sq.ft. to Unique Nail Salon in Jacksonville, FL and 16,880 sq.ft. to Mas II Mas, Inc. for a PowerHouse Gym at Regency Square Shopping Center in Mobile, AL.

Glimcher Group (412-562-9000) leased 1,300 sq.ft. to General Nutrition Center at Seeger Square in St. Paul, MN and 10,000 sq.ft. to Autozone at Sharon City Center in Sharon, PA.

Metro Commercial Real Estate, Inc. (609-866-1900) leased 80,000 sq.ft. to Burlington Coat Factory at University Plaza in Christiana, DE.

Levey & Company (330-253-6958) leased three spaces to Blockbuster Video at North Main Plaza in North Canton, OH; Eastwood Square Shopping Center in Akron, OH and a freestanding space in Wadsworth, OH. The company leased an outparcel to Carrol's Corp. for a Burger King at Eastwood Square Center in Akron, OH and a 2,800 sq.ft. space to Kentucky Fried Chicken in Wadsworth, OH.

Capital Realty Advisors, Inc. (407-744-1088) leased 2,200 sq.ft. to Sierra Bakery at Plaza 50 in Carson City, NV; 2,250 sq.ft. to Milne & Nicholls, Inc. at Sandtree Plaza in Palm Beach Gardens, FL; 1,320 sq.ft. to Monette's Family Hairstylists at Magnolia Plaza Shopping Center in Daphne, AL and 1,600 sq.ft. to Rehabilitation Therapy Center, Inc. at Spring Park Plaza in Denham Springs, LA.

The Goldstein Group (201-703-9700) leased 5,800 sq.ft. to Bell Atlantic Nynex Mobile at a site located adjacent to Annie Sez in Paramus, NJ.

CB Commercial Real Estate Group, Inc. of Los Angeles, CA (818-810-6447) leased 30,500 sq.ft. to Centennial Supermarket at Hacienda Center in Hacienda Heights, CA and two 3,078 sq.ft. sites to Boston West LLC for Boston Market restaurants in San Dimas and La Verne, CA.

K. Hovnanian Investment Properties, Inc. (908-741-7810) leased 1,819 sq.ft. to General Nutrition Center and 3,540 sq.ft. to Encore Books at Piscataway Towne Center in Piscataway, NJ.

Devcon Enterprises, Inc. (860-233-2114) leased 24,456 sq.ft. to Sears Hardware at Torrington Fair in Torrington, CT.

Goldman Retail Associates (310-235-0444), representing Payless ShoeSource, Inc. leased 4,500 sq.ft. to 98 Cent Outlet in Montecello, CA.

Courtelis Company (305-379-8467) leased 32,074 sq.ft. to Publix at Briar Bay Shopping Center in Miami, FL; 1,200 sq.ft. to GNC at Lakewood Mall in Margate, FL; 2,829 sq.ft. to Bike Works at Wekiva River Walk in Apopka, FL; 1,200 sq.ft. to Cheng's Chinese Restaurant at Town & Country Plaza in Kissimmee, FL; 1,120 sq.ft. to Supercuts at The Marketplace in Gainesville, FL and 6,750 sq.ft. to One Up Golf and 2,800 sq.ft. to Pearle Vision at Glengary Shoppes in Sarasota, FL.

Morbitzer Group, Inc. (407-539-1000) leased 1,200 sq.ft. to Contemporary Upholstery at Semoran Business Center in Apopka, FL and 1,400 sq.ft. to Suzy's Hair Designers at Lancaster Square in Orlando, FL.

RMC Realty Companies, Ltd. (813-960-8154) leased 10,800 sq.ft. to The Signature Group and 3,400 sq.ft. to CiCi's Pizza at Palm Center Shopping Center in Lakeland, FL; 2,060 sq.ft. to Computer Nuts, 1,145 sq.ft. to Paradise Bookstore, Inc. and 1,600 sq.ft. to Ron's Pub & Grill at Rena's Plaza in Orlando, FL; 3,000 sq.ft. to Main Street Bagel at Ocala Shopping Center in Ocala, FL and 1,940 sq.ft. to Minneapolis Print Shop in Tampa, FL.

Mid-America Asset Management Co. (708-954-7300) leased 15,000 sq.ft. to MC Mages Sporting Goods at Woodgrove Festival Shopping Center in Woodridge, IL and 1,440 sq.ft. to Scott's Pets at Westbrook Commons Shopping Center in Westchester, IL.

The David Cronheim Company (201-635-2180) leased 10,250 sq.ft. to Waistline 24, Inc. in West New York, NY.

McClinton & Company, Inc. (334-270-9653) leased 12,500 sq.ft. to Ryan's Family Steak House at Premiere Place Shopping Center in Pratville, AL.McClinton & Company, Inc. (334-270-9653) leased 12,500 sq.ft. to Ryan's Family Steak House at Premiere Place Shopping Center in Pratville, AL.

Store Closings

Ikea (610-834-0180) recently closed its Quebec City, Quebec, Canada store. The company had operated the location for 14 years.

Discovery Zone (305-627-2400) recently closed its units at Scottsdale Pavilions in Scottsdale, AZ and in Phoenix, AZ. The company's Tucson, AZ store will remain open.

Standard Brands Co. (310-214-2411) plans to close its 38 paint stores in AZ and CA by September.

IBM (800-426-3333) recently closed its lone outlet store, a 6,500 sq.ft. unit in Morristown, NC. The company plans to continue to sell its refurbished and discontinued products via telephone.

Buyers & Sellers of Commercial Real Estate

Auerbach Associates, Inc. has the listing to sell Presidential Plaza in Fort Lauderdale, FL. The 88,334 sq.ft. project is anchored by Winn-Dixie Marketplace and Eckerd Drugs. The asking price is $5.5 million. The company has the listing to sell Pembroke Plaza in Hollywood, FL. The 20,250 sq.ft. project is anchored by Colortyme TV Rental. The asking price is $2.1 million. The company has the listing to sell Springtree Center in Fort Lauderdale, FL. The 46,759 sq.ft. project is anchored by Payless Shoes and Party Supermarket. The asking price is $4.5 million. The company also has the listing to sell Emerald Plaza in Fort Lauderdale, FL. The 13,650 sq.ft. project is anchored by Circle K and eight local tenants. The asking price is $1.2 million.

For more information, contact Stuart Auerbach at (305-672-0492), Fax (534-6643).

Sun Management Corp. is in the market to acquire strip centers nationwide. States of particular interest include AR, CT, FL, KY, NH, NY, PA and TX. Properties with upside potential are preferred.

For more information, contact Barry Davis at (212-996-1300), Fax (410-4790).

Johnson Development Corporation participated in the acquisition of Ladera Shopping Center in Los Angeles, CA. The 184,684 sq.ft. project is anchored by Ralphs Market, Ross Dress for Less, Sav-On Drugs and Service Merchandise. Other partners in the acquisition include The California Urban Investment Partnership, Burnham Pacific Properties, Inc., California Public Employees Retirement System and MacFarlane Urban Retail Company LLC. The purchase price was $20.125 million.

For more information, contact Ken Lombard at (310-247-1994).

Moody Rambin Interests, Inc. brokered the sale of .606 acre of land at The Concourse to Whataburger, Inc. in San Antonio, TX. Other retailers at The Concourse include Target, Wal*Mart, CompUSA and Baby Superstore.

For more information, contact Ed James at (713-773-5545), Fax (773-5595).

West Star Marketing Group has the listing to sell Calhoun Plaza Shopping Center in Port Lavaca, TX. The 178,102 sq.ft. project is anchored by H.E.B. Grocery, Beall's, Weiner's, Eckerd Drugs, Family Dollar and Payless Shoes. The asking price is $2.1 million.

For more information, contact Tom Clarkson at (713-784-8265), Fax (784-0538).

Ramsey Real Estate Group and Pacific Properties, Inc. recently completed the acquisition of Prospect Square in La Jolla, CA. The 45,000 sq.ft. project has a mixture of retail, restaurants and offices. The sales price was $3.6 million.

For more information, contact Jeffrey Ramsey at (619-550-0060).

Sigma National, Inc. represented CBL & Associates Properties, Inc. in its acquisition of 8.89 acres of land in Richmond, VA. The company plans to develop a 62,000 sq.ft. Hannaford Supermarket to open during Spring 1997. Retailers adjacent to the site include Wal*Mart and Lowe's. The company also represented CBL & Associates Properties, Inc. in its acquisition of 45 acres of land in Virginia Beach, VA. CBL plans to develop a 200,000 sq.ft. Wal*Mart Supercenter and a 55,000 sq.ft. Hannaford Supermarket to open during Spring 1997.

For more information, contact Tred Spratley at (804-320-6100).

CB Commercial Real Estate Group, Inc. brokered the sale of a 21,800 sq.ft. parcel of land to Boston West LLC in Upland, CA. The seller was Albertson's, Inc. Boston West LLC plans to construct a 3,078 sq.ft. Boston Market restaurant on the site. The company also brokered the sale of Central Plaza in Camarillo, CA. The 219,000 sq.ft. project, which is anchored by Kmart, Ralphs and Longs Drugs, was purchased by Investec for $10.7 million.

For more information, contact Brian McDonald (Boston West purchase) at (818-810-6447) or Bill Dennis (Central Plaza) at (714-939-2100).

Petroplus & Associates, Inc. brokered the sale of a 30,000 sq.ft. building in Martinsburg, WV to Heilig Meyers Furniture Company.

For more information, contact Petroplus & Associates, Inc. at (304-598-3300).

Gelcor Realty has the listing to sell Cedar Cliff Mall in Camp Hill, PA. The 48,459 sq.ft. project is anchored by People's Drug. The asking price is $3.4 million.

For more information, contact Kenneth Cohen or Asher Hyman at (215-627-5858), Fax (627-5812).

KFS Properties brokered the sale of two former Kinney Shoe stores in Bell Gardens and South Gate, CA to Stanley Black. Mr. Black plans to lease both sites to Chief Auto Parts.

For more information, contact Ken Simon at (310-576-6666).

AJ Properties, Inc. has the listing to sell one-half acre of land in Odenton, MD. The site is located on Nevada Avenue and is zoned Town Center. The asking price is $175,000.

For more information, contact Stuart Title at (410-551-9116), Fax (551-9040).

Midland Group represented Midland Crossroads Plaza Development Company, L.L.C. in the sale of Crossroads Plaza in Granite City, IL. The 145,292 sq.ft. project is anchored by Heilig-Meyers Furniture, Big Lots, Walgreens, Ace Hardware, Radio Shack and a J.C. Penney Catalog Store.

For more information, contact David Reif at (314-576-1900), Fax (576-7005).

Regency Realty Group, Inc. has the listing to sell an 8,640 sq.ft. Eckerd Drug Store in DeKalb County, GA. The site has a 20-year absolute net lease (tenant is responsible for all expenses including roof and structure) with four options running five years each with five percent increases in each five year option. The annual minimum rent in years one to five is $124,146; $130,353 in years six to 10; $136,871 in years 11 to 15; and $143,715 in years 16 to 20. The company also has the listing to sell a 9,504 sq.ft. Eckerd Drug Store in Tucker, GA. The site has a 20-year absolute net lease (tenant is responsible for all expenses including roof and structure) with four options running five years each with $.50 per square foot increases in year one of each option term. The annual minimum rent in years one to five is $171,936; $176,688 in years six to 10; $181,440 in years 11 to 15 and $186,192 in years 16 to 20.

For more information, contact William Parham, Jr. at (904-356-7000), Fax (634-3428).

Who's Opening and Where...

Children's Concepts, Inc. (610-896-1500) recently opened a 12,800 sq.ft. Zany Brainy store at Sports Authority Plaza in Springfield, NJ.

CompUSA, Inc. (214-982-4000) recently opened a 16,000 sq.ft. store at The Market at Chapel Hills West Shopping Center in Colorado Springs, CO and a 25,200 sq.ft. unit at Sunrise Plaza in San Jose, CA. The company is planning to open a 33,600 sq.ft. two-level store on Broadway in New York City, NY during the Fall.

Battery One (905-479-5683) recently opened Powerful Stuff stores at Pittsburgh Airport Airmall in Pittsburgh, PA and Square One Shopping Center in Toronto, Ontario, Canada. In the coming five years, the company is looking to open more than 1,000 units throughout North America.

Darden Restaurants (407-245-4000) plans to open a 5,600 sq.ft. Red Lobster restaurant in Lawrence, KS during February 1997.

Arbor Drugs, Inc. (810-643-9420) plans to open a drug store in Flint, MI next month. The company is also planning to open stores in Macomb, Oakland and Wayne counties in MI this year and as many as 20 stores next year. Currently, the company operates 180 units in MI.

Wal*Mart Stores, Inc. (501-273-4000) recently opened a supercenter in Richmond, VA. The store is the company's largest superstore, surpassing the 233,000 sq.ft. supercenter in Murfreesboro, TN. The new supercenter's grocery department alone is 76,000 sq.ft.

Tandy Corp. (817-390-3011) plans to open Radio Shack and Computer City stores at Fort Worth Outlet Square in Fort Worth, TX, a 155,000 sq.ft. project owned by the company, next month.

General Cinema Companies, Inc. (617-277-4320) plans to open a 69,514 sq.ft. 16-screen movie complex at The Galleria at South Bay in Redondo Beach, CA during Summer 1997.

The Sports Authority (954-735-1710) is planning to open 15,000 sq.ft. to 20,000 sq.ft. stores in downtown areas of New York, NY; Chicago, IL; Los Angeles, CA and Philadelphia, PA in the near future. The company recently acquired two 12,000 sq.ft. former Herman's Sporting Goods locations in Manhattan, NY. The company is planning to open apparel and footwear only stores. A new name for the units is currently being discussed.

QVC Network, Inc. (610-701-1000) recently opened a 10,000 sq.ft. outlet store at Loehmann's Plaza in Virginia Beach, VA. The store opened in the former Herman's Sporting Goods space.

Barnes & Noble, Inc. (212-633-3300) recently opened a 25,000 sq.ft. bookstore at Westgage Shopping Mall in San Jose, CA and a 19,945 sq.ft. store at Consumer Square Mall in Elmira, NY. The company is planning to open a 16,000 sq.ft. store in Bellingham, MA during the Fall.

Warner Brothers (818-954-3809) recently opened a Studio Store in Sydney, Australia and is planning to open a store in Melborune, Australia during November. The company is also planning to open a 10,000 sq.ft. store in Djakarta, Indonesia during 1997.

Hibbett Sporting Goods (205-956-0036) plans to open 17 stores during fiscal 1997 and an additional 27 units during fiscal 1998.

Dillard's Department Stores (501-376-5200) plans to open a 190,000 sq.ft. store at Coddington Mall in Santa Rosa, CA during Fall 1997; a 200,000 sq.ft. store at Weberstown Mall in Stockton, CA during Fall 1997 and an anchor store at Broadstone Mall in Folsom, CA during Spring 1999.

Planet Hollywood (407-363-7827) recently opened a restaurant in Seattle, WA. The company, in a joint venture with Caesars World, also plans to open a 3,200 room, 100,000 sq.ft. casino, called Las Vegas Planet Hollywood Hotel and Casino, in Las Vegas, NV and a 1,000 room, 100,000 sq.ft. casino in Atlantic City, NJ. Both units are expected to open during 1998.

Brinker International (214-770-9652) recently signed a franchise agreement with RDC Enterprises to open three On The Border restaurants in San Antonio and south TX during the next two years.

Lowe's Companies, Inc. (910-651-4223) plans to open two 180,000 sq.ft. stores with garden centers in Jacksonville, FL.

Save Mart (209-577-1600) plans to open a Food Maxx warehouse-style grocery store at the site of a former Kmart in Bakersfield, CA during late this year or early next year.

Michigan Brewery, Inc. (517-731-0401) plans to build a 325-seat Big Buck Brewery and Steakhouse in Auburn Hills, MI.

Bruegger's Bagel Bakery (802-862-4700) and Starbucks (206-447-1575) recently opened a 3,900 sq.ft. combination unit which features separate entrances and a shared "Great Room," in Denver, CO.

The Disney Store (818-543-3382) recently opened a store at Metrocenter in Phoenix, AZ. The company, which currently operates 501 units worldwide, is planning to open stores in Italy and Australia before the end of the year.

Imax Corporation (310-571-1800) plans to open IMAX 3D Theaters at Grapevine Mills in Grapevine, TX and Tempe Mills in Tempe, AZ during late 1997.

Home Base (714-442-5000) is looking to build a 109,000 sq.ft. home improvement store with a 25,000 sq.ft. garden center in Elk Grove, CA. The company is currently seeking a zoning change to allow it to build the unit and is planning to begin construction in early 1997.

Thrifty Payless, Inc. (503-682-4100) plans to open drug stores running 3,000 sq.ft. to 10,000 sq.ft. inside five oversized Wells Fargo bank branches in CA. If the experiment proves successful, the companies plan to expand to other locations throughout the Western region.

Toys 'R Us, Inc. (201-599-7850) plans to open toy stores in Italy through a franchise agreement with Toy Service of Turin. The company was also granted permission by the Appellate Division of the Supreme Court to build a two-story 38,000 sq.ft. Toys 'R Us store at 80th Street and Third Avenue in Manhattan, NY. The company plans to have the store open by Christmas.

American Multi Cinema (816-221-4000) plans to open a 55,000 sq.ft., 20-screen movie theater at Tallahassee Mall in Tallahassee, FL by the end of the year.

Q-Zar (214-741-1376) plans to open a two-level entertainment center, which will feature games for children on one level and games for adults on another level, at Tallahassee Mall in Tallahassee, FL.

Roberds (513-859-5127) recently opened a 314,000 sq.ft. store which features appliances, computers, consumer electronics and furniture, in Springdale, OH.

Lead Sheet

Lucia, Inc.

dba Lucia That's Me! Factory Outlet

Michael Greenberg

PO Box 12129

Winston-Salem, NC 27117

910-788-4901, Fax 784-9148

Apparel

The nine-unit chain operates locations in CA, DE, MA, NV, NC and VA. The stores, which sell missy and junior apparel, occupy spaces of 2,500 sq.ft. to 2,800 sq.ft. in outlet and strip centers. Growth opportunities are sought in NC and SC.

Neighborhood Variety Stores, Inc.

dba Crafts & Stuff

Ron Lewis

1904 Drew Street

Clearwater, FL 34625

813-442-9918, Fax 447-7720

Arts & Crafts

The 14-unit chain operates locations in FL and GA. The stores, selling arts, crafts and hobby supplies, occupy spaces of 20,000 sq.ft. in power and strip centers. Plans call for 12 openings in the coming 18 months. Expansion will take place in FL.

Gilbert Ortega Indian Arts & Crafts

Gilbert Ortega

7237 East Main Street

Scottsdale, AZ 85251

602-949-0436, Fax 949-7913

Cards & Gifts

The 13-unit chain operates locations in AZ. The stores, selling cards and gifts as well as a variety of Indian arts and crafts, Western wear and leather goods, occupy spaces of 2,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market.

Beall's, Inc.

Bealls Department Stores, Outlooks

Seth Layton

1806 38th Avenue East

Bradenton, FL 34208

941-747-2355, Ext. 330, Fax 747-5741

Department Store

The 58-unit chain (57 Bealls Department Stores and one Outlooks store) operates locations in FL. Bealls Department Stores, selling family apparel at moderate price-points, occupy spaces of 35,000 sq.ft. to 70,000 sq.ft. in strip centers. Preferred anchors include general merchandise stores and supermarkets. Plans call for one opening during 1997 and two openings during 1998. Expansion will take place in the existing market. Outlooks, selling junior and young men's clothing, occupy spaces of 5,000 sq.ft. to 8,000 sq.ft. in regional malls. Plans call for one opening in the coming 18 months. Expansion will take place in the existing market.

Mr. Subb, Inc.

dba Mr. Subb

Gary Sheehan

601 Columbia Street

Cohoes, NY 12047

518-783-0276, Fax 783-0294

Food

The 27-unit chain operates locations in NY. The restaurants, serving submarine sandwiches, soups and salads, occupy spaces of 1,100 sq.ft. to 1,500 sq.ft. in freestanding facilities and strip centers. Plans call for 20 openings in the coming 18 months. Expansion will take place in CA, CT, FL, MA, NJ, NY and VT.

Bellini Juvenile Designer Furniture

Ida Ruggiero

155 North Main Street

New City, NY 10956

914-638-4111, Fax 638-3878

Furniture

The 54-unit chain operates locations nationwide. The stores, which specialize in upper-end furniture and accessories for juveniles, occupy spaces of at least 2,500 sq.ft. in freestanding facilities, power and strip centers. Plans call for 12 openings in the coming 18 months. Expansion will take place nationwide.

Odd-Job Trading

Lionel M. Levey

c/o The Levey Companies, Inc.

70 South Orange Avenue/ Suite 110

Livingston, NJ 07039

201-533-110, Fax 533-1288

General Merchandise

The 20-unit chain operates locations within a 200-mile radius of New York City, NY. The general merchandise stores occupy spaces of 12,000 sq.ft. to 25,000 sq.ft. in downtown store fronts and strip centers. Plans call for eight openings in the coming 10 months. Expansion will take place in the existing markets.

Headstart Hair Care Salons

Charles Bruno

248 Cahaba Valley Parkway North

Pelham, AL 35124

205-988-4995, Fax 988-3046

Hair Salon

The 37-unit chain operates locations in AL. The hair salons occupy spaces of 1,400 sq.ft. in regional malls, power and strip centers. Preferred anchors include Kmart, T.J. Maxx and Wal*Mart. Growth opportunities are sought in the existing market. Preferred demographics include a population of 30,000 within three miles earning $28,000 as the average income. The company prefers a vanilla box plus a $12,000 tenant allowance and typically signs a five-year lease.

International Cutlery

Joel Silver

127 West 25th Street, Fifth Floor

New York, NY 10001

212-924-7300, Fax 627-5952

Housewares

The 15-unit chain operates locations in CT, NJ and NY. The stores, selling cutlery and gifts, occupy spaces of 400 sq.ft. to 600 sq.ft. in regional malls. Plans call for 10 openings in the coming 18 months. Expansion will take place along the East Coast.

Fletcher Music Centers, Inc.

dba Fletcher Music Centers

Larry Hager

3966 Airway Circle

Clearwater, FL 34622-4206

813-571-1088, Fax 572-7769

Music

The 31-unit chain operates locations in AZ, FL and NC. The music stores, specializing in hi-tech pianos, keyboards, organs, electric pianos and portable keyboards, occupy spaces of 1,900 sq.ft. to 3,100 sq.ft. in regional malls. Growth opportunities are sought nationwide.

Vision Corp.

dba Sears Optical

Lon Weiss

18903 South Miles Road

Cleveland, OH 44128

216-475-8925, Ext. 3697, Fax 475-8862

Optical

The 1,000-unit chain operates locations nationwide. The stores, which offer optical goods and services, occupy spaces of 1,200 sq.ft. in power and strip centers. Preferred anchors include supermarkets, discount and fashion tenants. Plans call for 60 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 50,000 within three miles earning $40,000 as the average income.

Mark's Aquarium & Pet World

Mark Sakowitz

7019 Third Avenue

Brooklyn, NY 11209

718-745-4001, Fax 680-2013

Pet Store

The 15-unit chain operates locations in NJ and NY. The pet stores occupy spaces of 2,500 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

Cord Camera Centers, Inc.

dba 55 Minute Photo

Steven Cordle

745 Harrison Drive

Columbus, OH 43204

614-276-0033, Ext.215, Fax 276-7686

Photo

The 28-unit chain operates locations in OH and IN. The stores, which offer photographic supplies and services, occupy spaces of 1,800 sq.ft. in freestanding facilities. Plans call for three openings in the coming 18 months. Expansion will take place throughout IN.

Relax The Back Franchising Co.

dba Relax The Back

Terry Lebreton

900 Congress Avenue/ Suite 400

Austin, TX 78701

Specialty

The 54-unit chain operates locations in AZ, CA, CO, FL, GA, MA, MN, NE, NC, OR, TN and TX. The stores, which specialize in products that help prevent back problems, occupy spaces of 1,800 sq.ft. to 3,000 sq.ft. in freestanding facilities and strip centers. Preferred anchors include Blockbuster Video and Kinko's. Growth opportunities are sought nationwide. Preferred demographics include a population of 250,000 within three miles earning $45,000 as the average income.

Prestige Golf Ltd.

dba Larry's Golf

Al Meindel

3553 Merrick Road

Seaford, NY 11783

516-785-8166, Fax 785-3878

Sporting Goods

The four-unit chain operates locations in NY. The stores, selling golf equipment, occupy spaces of 6,000 sq.ft. in regional malls and strip centers. Growth opportunities are sought in NJ, NY and PA.

Ball's Food Stores

dba Price Chopper Foods,

Hen House Markets

William White

5300 Speaker Road

Kansas City, KS 66106

913-321-4223, Fax 321-3237

Supermarket

The 19-unit chain (12 Price Choppers and seven Hen House Markets) operates locations in KS and MO. The supermarkets occupy spaces of 45,000 sq.ft. to 70,000 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include Sam's Club, Target and Wal*Mart. Growth opportunities are sought in the existing markets.

Martin & Bayley

dba Circus Video

Ben Eddie

PO Box 385

Carmi, IL 62821

618-382-2334, Ext. 5, Fax 382-8956

Video

The 35-unit chain operates locations in AR, IL, IA, KY, MO and MS. The video stores, which also feature a play area for children and serve pizza, occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in freestanding facilities. Growth opportunities are sought in IL, IA and MO.

Exclusives: Leasing and Management Assignments

David Cronheim Company (201-635-2180) has been named the exclusive leasing agent for Stratton Meadows, an approved 25,500 sq.ft. retail/office center to be developed in Bridgewater, NJ.

Uniwest Realty, Inc. (703-671-2880) is the exclusive representative for P.F. Chang's China Bistro which is seeking spaces running 6,000 sq.ft. to 7,000 sq.ft. in freestanding facilities, regional malls or central business districts in the Baltimore, MD and Washington, D.C. metro areas. The company is the exclusive representative for Fresh Fare Enterprises, a family restaurant featuring soups, salads and pastas, which is seeking spaces running 6,000 sq.ft. to 8,000 sq.ft. in freestanding facilities and downtown store fronts in the Baltimore, MD and Washington, D.C. areas. The company also represents Nobel Education Dynamics, Inc., a pre-school facility, which is seeking spaces running at least 7,500 sq.ft. in the Washington, D.C. area and in NC.

Levin Management Corporation (908-755-2401) has been named the exclusive leasing and managing agent for a multi-tenant retail building at 37-23 Route 112 in Coram, NY.

Heitman Retail Properties (312-855-5700) has been named the leasing, managing and marketing agent for Blue Mountain Mall in Walla Walla, WA. The 348,000 sq.ft. project is anchored by Sears, Emporium, ShopKo and J.C. Penney.

Breslin Realty Development Corp. (516-741-7400) has been appointed the exclusive broker for the area developer for Nassau, Suffolk and Queens, NY and Northern NJ for Country Kitchen Restaurants. Country Kitchen Restaurants, a division of Carlson Corp., prefers freestanding buildings or end cap spaces at upscale strip centers running 3,000 sq.ft. to 4,000 sq.ft. Plans call for as many as 12 openings this year and as many as 15 next year.

Financial News...

Walgreen Co. (847-914-2920) reported that sales for its fiscal third quarter increased 14.2% to $2.99 billion with net earnings increasing 15.9% to $91.6 million. Comparable store sales increased 9.3% for the quarter. During the quarter, the company opened 34 stores and currently operates 2,149 units in 31 states.

Homeland Stores, Inc. (405-879-6600) plans to emerge from bankruptcy protection as a publicly traded company by issuing up to 7.5 million shares of common stock. The plan needs approval of bondholders. Homeland plans to cut back its store count to 65 supermarkets from the 111 units it operated at the beginning of last year.

Hamburger Hamlet Restaurants, Inc. (818-995-7333) was recently informed by Nasdaq that as a result of the company's bankruptcy filing and failure to provide financial statements since the time of the filing, its common stock was delisted from the Nasdaq Small Cap Market.

The Limited (614-479-7000) plans to file a registration statement with the Securities and Exchange Commission for an initial public offering of stock for Abercrombie & Fitch.

National Record Mart, Inc. (412-276-6200) reported that its fiscal 1996 net sales were $99.1 million, a 3.5% increase over FY95 net sales of $95.7 million. Comparable store sales fell 2.7% for the year. During the year, the company opened 16 stores and closed six to end with 151 units.

Strouds, Inc. (818-912-2866) reported a net loss of $678,000 for its first quarter compared to net income of $275,000 during its first quarter last year. Net sales for the quarter were $46.4 million compared to $43 million last year. Comparable store sales increased 0.6% for the quarter. The company, which specializes in bed, bath, tabletop and home textiles products, currently operates 62 units in four states.

The Finish Line (317-899-1022) reported that its first quarter income was $3.18 million on revenue of $71.74 million, a 56% increase over last year's first quarter results of income of $2.03 million on revenue of $52.22 million. Comparable store sales increased 13%. During the first quarter, the company opened 11 stores with another 24 planned for the balance of its fiscal year. Currently, the company operates 229 stores in 25 states.

Wal*Mart (501-273-4000) has decided not to open a store at the proposed Golden Triangle Center in Murrieta, CA citing that the new store would possibly take away sales from an existing Wal*Mart in Lake Elsinore, CA, less than 10 miles away.

Levitz Furniture, Inc. (407-994-5151) reported that its fiscal 1996 net sales were $986.6 million, a 5.8% decrease from FY95 results of $1.047 billion. The company reported a net loss of $23.753 million compared to net income of $2.386 million last year. During FY96, the company recorded restructuring charges totalling $9 million. The company currently operates 134 units in 26 states.

The Great Atlantic & Pacific Tea Company, Inc. (201-930-4236) reported that its first quarter net income was $21.879 million, a 50% increase over last year's results of $14.55 million. First quarter sales were $3.092 billion compared to $3.135 billion last year and comparable store sales fell 0.4% for the quarter. During the first quarter, the company opened 13 stores and closed 34 stores and currently operates 993 supermarkets.

Family Dollar Stores, Inc. (704-847-6961) reported that its third quarter sales increased 12.7% to $427.941 million from $379.836 million during the third quarter last year. Net income increased 14.5% to $18.78 million from $16.405 million last year. Comparable store sales increased 5.8% for the quarter. During the quarter, the company opened 50 stores and closed 18 and ended the quarter operating 2,535 units in 38 states.

Tuesday Morning Corporation (214-387-3562) reported that its second quarter sales increased 13.2% to $54.3 million compared to $48 million last year. Comparable store sales for the quarter increased 6.7%. The company operates 271 deep discount closeout gift stores nationwide that open four times a year in six to ten week increments during the retail industry's peak selling seasons.

Real Estate Professionals Making The News

CB Commercial Real Estate Group, Inc. (213-613-3039) recently appointed Susan J. Rorison as vice president, retail portfolio manager, western division.&