Issue 32 for the week of September 11, 1996

The Dealmakers Issue Number 32 for the week of September 11, 1996.

My Way by Ted Kraus

It's Tuesday, Do You Know Who Your Tenant Is?

I recently had a client call with an interesting question. It seems he made a deal a number of years ago with a tenant at a decent rent. The chain was later sold to another company (the new entity has over 350 stores), who sent our client a letter saying they had assumed the lease in their acquisition and all future correspondence should be sent to the "ABC Company." So far, so good. Three years later they send my client a letter demanding a substantial rent reduction or they would be leaving. The client checked all his lease correspondence and wasn't sure if he had anyone with a real net worth on the "hook." He called me and wanted to know if I knew if the tenant on the lease had a net worth (that way he could decide if he should cave in or stand firm). I didn't know, so I called a few landlords that had that tenant to find out. They checked their records and weren't sure (but they had gotten financing based on telling the lender the tenant was AAA, which the parent is).

After lots of investigation, it appears the tenant has been using, for lack of a better description, a shell corporation on all their leases. That in itself isn't wrong, we represent several retailers who won't provide a real signature, it's that the tenant doesn't tell the developer the lease isn't worth a dime but they imply the company is financially secure. The developer (nor, in most cases, the lender) didn't check it out. Now they have all the disadvantages of having a lease with none of the advantages.

Ann and I attended the ICSC's Florida Dealmaking Show in Orlando and as I have reported on all the previous events in the last few months, attendance set a record and everyone was upbeat. (I heard the same for the Pittsburgh show.) In fact, the Florida show was the most upbeat event we've attended. It seems the South (and Florida in particular) has recovered faster than most of the country, tie that in with little development going on for the past few years and that space that is available is being eagerly sought. The exhibitors are becoming more "upscale," renting two booths to have more exposure, the displays are more elaborate and there were several cocktail parts hosted by several developers (a mini Vegas). The local events are all going so well that perhaps (but I wouldn't bet on it) Kansas City will also be a good show. If you're not attending these events, you're making a major mistake. There appears to be a lot of "action" going on.

In the South, it appears that there is less of a distinction between brokers and developers. Many of the local brokers also are developers and they have learned how to operate lean and mean, so they're making a decent dollar. However, one developer summed up what I consider a major problem. Two years ago the market rent in his area was $12 to $14 psf. Today the market rent is $16 to $18. However, the retailers are not reporting higher sales. Something is wrong with this picture. How long can this continue without even more retailers going under. There were five developers at our booth that got into the "Who's going bankrupt next" game. We came up with 10 likely candidates. If you want to submit your input on what major chain is going "11" next, send me e-mail at ted.kraus@dealmakers.net.

Another indication that the economy is improving (at least until November) is that people are asking me if I know of anyone looking for a job. For the last few years, its been the opposite, everyone has been asking me if I know of a position available.

Sometimes I feel I'm totally stupid (and yes, I know there are a lot of people who'd agree with that all the time). In my former life when we had a large brokerage firm, I used to spend a lot of time with our agents on prospecting. One of the first rules I tried to teach 'em was to never make a decision for a client. Present it and let them decide. I just made that mistake and it cost me a bundle. About a year ago we marketed for a very short period of time a center for sale. After doing my due diligence as a broker, I decided the center was a high risk, low return investment and none of our clients would be interested. When I discussed the project with Ann, she suggested I offer it to a specific client who has similar property. I said, "No, this isn't their type of deal." Guess who just bought the center? Yep, I'm an idiot. So I'll repeat this for all the brokers and leasing agents out there, don't make a decision for a client/tenant.

Talking of one man's opinion, here's another, a friend of mine works for a relatively large REIT, he's in charge of leasing. Within the last year his company has bought seven centers, none of which were shown or discussed with him or his four person staff before acquiring the property. Bean Counters made all the decisions. The return was right, that's all that counted. The fact that they might not be able to lease the vacant space or stores that become vacant is immaterial. If the space can't be leased or leased at its projected rent (which always amazes me, the projected rent is either grabbed from thin air or they use the number the broker who sold 'em the property claims is market rent. The broker trying to make a $250,000 commission would never lie, would he?) why would you purchase the center? The bad news for my friend is if the property can't be leased, it's "his" fault, not the Bean Counters'.

Now I admit the many of the people responsible for acquisitions aren't overly bright, but how stupid can you be to totally ignore the fact that they have an in-house staff of experts on leasing who can provide excellent information. Either they're stupid or they're scared "leasing" would end up nixing their "deal." Scared and stupid is a dangerous combination.

Here's a commentary on my favorite subject, the Internet and On-line services. I recently received a phone call from an Internet company saying my free listing on their Home Page for a shopping center we're leasing has expired and if I wanted to continue they have a great offer for me at a reduced price. I said that since I didn't receive one call off the Web listing, it would be difficult to justify continuing. The "salesperson" said that seemed to be the case for everyone he called. Let me try and explain the Net (in my humble opinion) as it relates to real estate. We have a Home Page (over 1.2 million hits a year), an On-line service, five e-mail forums and an `e-mail' on demand service. We've been doing it for about four years and have developed some degree of expertise. Without being a wise whatever, I probably have a better understanding of the Internet as it relates to real estate than 99% of the people out there. Our five e-mail forums (which are free) have 6,200 "members." Using some rules of thumb on traditional publishing, we've probably captured five percent of the commercial real estate universe on the Internet, which means there are roughly 124,000 commercial real estate people surfing the Net (residential is another story). Only an extremely small percentage are retailers, most users are either brokers or investors, the two groups that have to be extremely aggressive in order to survive. On our Home Page we list property for sale and lease. The "For Sale" gets 1,000 hits a day while the "For Lease" receives only 100 to 125. Big difference. Since it's free, there's no downside to listing, but don't be overly optimistic. Leasing is not yet important on the net. "Special Events" make sense. For example, Keen Realty has a banner on our HP that when it first went up listing the property of a bankrupt retailer, was getting 500 to 750 hits a day. It should (who knows) have provided them with some leads. But that isn't leasing, it's "sales." Before you get carried away with putting up a HP for leasing or commit to spending considerable dollars on posting your available space, be careful.

Retailers Looking To Expand in The Midwestern Region

Randall Stores, Inc. trades as Cub and County Markets at 27 locations in IL, IA, MN, NE, SD and WI. The supermarkets occupy spaces of 50,000 sq.ft. to 70,000 sq.ft. in freestanding facilities and strip centers. Plans call for as many as four openings in the coming 18 months. Expansion will take place within the existing markets.

For more information, contact William Bell, Randall Stores, Inc., 101 West 23rd Avenue, Mitchell, SD 47301; 605-996-7511, Fax 996-1167.

Dayton Hudson Corp. trades as Dayton's, Hudson's and Marshall's on The Mall at 63 locations throughout the upper Midwest region. The department stores occupy spaces of 200,000 sq.ft. in freestanding facilities, regional malls and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Michael Litwin, Dayton Hudson Corp., 700 On The Mall, Minneapolis, MN 55402; 612-375-2200, Fax 375-6533.

Marsh Supermarkets, Inc. trades as Marsh Supermarkets and Lo Bill at 90 locations throughout IN and OH. The supermarkets, which feature deep discount price-points, occupy spaces of 40,000 sq.ft. to 82,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Lennie Hayes, Marsh Supermarkets, Inc., 9800 Cross Point Boulevard, Indianapolis, IN 46256; 317-594-2100, Fax 594-2704.

Self Serve Lumber Co. trades as Self Serve Lumber at 14 locations in MI. The home centers occupy freestanding facilities running 12,000 sq.ft. to 30,000 sq.ft. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market.

For more information, contact William Schwannecke, Self Serve Lumber Co., 1621 South Wheeler Street, Saginaw, MI 48602; 517-790-9510, Fax 790-9585.

Thingsville, Inc. trades as Thingsville at 11 locations in CO, IA, KS, MO and NE. The stores, selling t-shirts, sunglasses, watches and gifts, occupy spaces of 800 sq.ft. to 2,500 sq.ft. in regional malls. Plans call for one opening in the coming 18 months. Expansion will take place in IL.

For more information, contact Jeff Bausback, Thingsville, Inc., 4504 South 133rd Street, Omaha, NE 68137; 402-330-8234, Fax 330-8755.

Loeks Star Partners does business as Loeks Star Theaters at eight locations in MI. The movie theaters occupy spaces of 40,000 sq.ft. to 60,000 sq.ft. in power centers. Growth opportunities are sought in the existing market.

For more information, contact Joyce Storm, Loeks Star Partners, 711 Fifth Avenue, New York, NY 10022; 212-833-6301, Fax 833-6222.

Woods Super Markets operates seven locations in MO. The supermarkets occupy spaces of 20,000 sq.ft. in freestanding facilities and strip centers. Plans call for as many as two openings in the coming 18 months. Expansion will take place in the existing market.

For more information, contact Donald Woods Sr., Woods Super Markets, 703 East College, Bolivar, MO 65613; 417-326-7603, Fax 326-7609.

Frames Unlimited, Inc. trades as Frames Unlimited at 33 locations throughout IN, MI and OH. The stores, offering art work and custom framing services, occupy spaces of 2,500 sq.ft. in strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Mark Lovett, Frames Unlimited, Inc., 3343 Lousma Drive, Wyoming, MI 49548; 616-452-8737, Fax 452-6981.

Inter City Oil Company trades as ICO at 38 locations in MI, MN and WI. The convenience stores occupy spaces of 1,800 sq.ft. to 3,000 sq.ft. in freestanding facilities. Preferred locations include high-traffic street corners. Growth opportunities are sought in the existing markets.

For more information, contact Jay Weber, Inter City Oil Company, 1921 South Street, Duluth, MN 55812; 218-728-3641.

Dueber's, Inc. trades as Dueber's at 25 locations in MN. The junior department stores occupy spaces of 7,000 sq.ft. in downtown store fronts. Growth opportunities are sought in the existing markets.

For more information, contact Chuck Dueber, Dueber's, Inc., 300 Industrial Boulevard, Young America, MN 55397; 612-467-3085, Fax 467-3001.

U.S. Factory Outlets, Inc. trades as U.S. Factory Outlets at 24 locations nationwide. The factory outlet stores, selling general merchandise, apparel and closeouts at bargain prices, occupy spaces of 30,000 sq.ft. to 52,000 sq.ft. in regional malls, power and strip centers. Growth opportunities are sought nationwide.

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

Mergers & Acquisitions

Mrs. Fields Cookies (801-649-1304) plans to merge with Original Cookie Company, which includes Hot Sam's Company, to create a company that will operate more than 1,000 units nationwide. Both companies initially plan to continue operating the units under their present names with the headquarters at the existing Mrs. Fields corporate offices.

Sears, Roebuck and Co. (847-286-2500) recently signed a definitive merger agreement with Orchard Supply Hardware Stores Corporation in which Sears will acquire Orchard for approximately $415 million. The 61 Orchard stores, which are located in CA, will continue to operate under their present name. The acquisition allows Sears to expand its 115-unit stand-alone hardware stores chain, most of which are located east of the Mississippi River.

Fred's, Inc. (901-365-8880) announces that its proposed merger with Rose's Stores, Inc. has been canceled due to Rose's declining financial condition. During the second quarter, Rose's posted a loss of $2.7 million on sales of $165.8 million, a two percent drop off from last year's second quarter sales. Rose's operates 105 discount stores while Fred's operates and franchises 239 stores.

K&G Men's Center, Inc. (404-351-7987) recently acquired two Menswear Mega Center stores in Baileys Crossroads, VA and New Carrollton, MD from S&K Famous Brands, Inc. K&G Men's Center is assuming the lease obligations and did not purchase the merchandise inventory in the stores. The stores are K&G Men's Center's first in the Washington, D.C. market.

Cooker Restaurant Corp. (407-615-6000) plans to purchase five former China Coast restaurants in Grand Rapids and Saginaw, MI; Cincinnati, OH; Chesapeake, VA and Tampa, FL from Darden Restaurants and open Cooker units at the sites. Cooker has previously purchased former China Coast units from Darden and opened restaurants in Boardman, OH; Murfreesboro, TN and Sterling Heights, MI.

Financial News...

Kmart Corporation (810-643-1000) reported that its second quarter net income from continuing operations was $34 million as compared to $22 million last year. Total sales for the quarter fell 1.5% to $8.312 billion from $8.44 billion last year. Comparable store sales increased 1.6% and sales for U.S. Kmart stores increased 2.2%. The company operates 2,143 Kmart stores, 168 Builders Square units and 134 stores internationally.

OfficeMax, Inc. (216-295-6411) reported that its net income for the second quarter increased 97.7% to $2.358 million from $1.193 million during the same quarter last year. Second quarter sales increased 28.9% to $622.132 million from $482.46 million last year with comparable store sales up 13.3%.

Boston Chicken, Inc. (303-278-9500) reported that its second quarter company revenue increased 86% to $64.561 million form $34.8 million; its operating income increased 107% to $29.86 million from $14.412 million and its net income increased 115% to $15.916 million from $7.42 million. At the end of the quarter, the company operated and franchised 957 Boston Market restaurants and 188 bagel stores.

TJX Companies, Inc. (508-390-3000) reported that its second quarter net sales from continuing operations increased 93% to $1.64 billion, up from $848 million last year. Income from continuing operations was $36.1 million, up from $7.7 million last year. The company operates 582 T.J. Maxx stores, 464 Marshall's stores, 57 Winners Apparel Ltd. stores and 23 HomeGoods stores.

Wal*Mart Stores, Inc. (501-273-4000) recently withdrew its option on a 19-acre parcel of land in Gig Harbor, WA where the company had planned to construct a 133,000 sq.ft. store. However, the company has not totally given up on the site and may explore the possibility of working with any developers interested in purchasing the land.

Woolworth Corporation (212-553-2000) reported that its second quarter net income was $22 million, up from a second quarter net loss of $11 million last year. Second quarter sales were $1.856 billion, a 3.4% decline from last year's results. During the second quarter, the company opened 70 stores and closed 227 stores and currently operates 7,951 stores.

Filene's Basement Corp. (617-348-7156) reported that its second quarter net income was $1.2 million as compared to a net loss of $400,000 during the same period last year. Total sales fell eight percent to $120.1 million from $130.2 million last year with comparable store sales up three percent. The company operates 43 stores.

Ames Department Stores, Inc. (203-257-2659) reported that its second quarter net income increased to $4.5 million from $3.2 million last year. Net sales for the quarter were $499.1 million, slightly down from $500.2 million reported last year. Comparable store sales for the quarter fell 1.2%. The company currently operates 301 stores throughout the Northeastern region.

Lowe's Companies, Inc. (910-651-4223) reported that its second quarter sales increased 24% to $2.459 million from $1.978 million last year. Net earnings increased 34% to $114,279 from $85,007 last year and comparable store sales increased eight percent. During the second quarter, the company opened 12 stores and ended the quarter with 380 home improvement stores. The company plans to open 20 more units before the end of its fiscal year in January 1997.

CompUSA, Inc. (214-982-4000) reported that net sales for fiscal 1996 increased 30% to $3.83 billion from $2.94 billion during FY95. Net income for FY96 was $59.7 million as compared to $24.3 million during FY95. Comparable store sales increased 12.6% for the year. The company currently operates 106 computer superstores in 50 major markets nationwide.

Pep Boys-Manny, Moe & Jack (215-229-9000) reported that its second quarter sales increased 16% to $476.673 million from $410.838 million last year. Comparable store sales increased three percent. Second quarter earnings increased 20% to $30.235 million from $25.234 million last year. During the quarter, the company opened 22 stores and currently operates 540 stores trading as Pep Boys and Parts USA.

Borders Group, Inc. (313-913-1323) reported a net loss of $2.2 million during the second quarter compared to a net loss of $4.9 million during last year's second quarter. Consolidated sales for the quarter were $414.3 million, a 13.9% increase over last year's sales of $363.8 million. The results reflect a 46.4% sales increase for the Borders superstores to $206.9 million from $141.3 million last year and a 5.9% decrease in Waldenbooks sales to $201.8 million from $214.5 million. Comparable store sales at Borders increased 10.7% and fell 1.8% at Waldenbooks. The company currently operates 127 Borders units and 966 Waldenbooks units nationwide.

The Cato Corporation (704-554-8510) reported that its second quarter net income fell to $2.339 million from $2.963 million during the second quarter last year. Revenues for the quarter decreased two percent to $116 million from $117.9 million last year. The company operates 688 women's apparel stores in 22 states trading as Cato Fashion/Cato Plus and It's Fashion!

Ben Franklin Retail Stores, Inc. (708-462-6100) reported a net loss of $11.4 million for its first fiscal quarter of 1997, as compared to a net loss of $1.5 million during its first quarter last year. Net sales for the quarter fell 48% to $46.5 million as compared to $89.3 million last year. The company recently filed for bankruptcy protection and plans to close its 33 company-owned craft superstores and focus on its core franchising and wholesaling business. The company franchises more than 300 craft stores and more than 500 variety stores and wholesaler to holders or more than 700 merchandise agreements throughout the U.S.

Claire's Stores, Inc. reported that its second quarter sales increased 30% to $100.719 million from $77.296 million during the same quarter last year. Comparable store sales increased nine percent for the quarter. The company also reported that its net income for the quarter increased 90% to $7.892 million from $4.15 million last year. The company currently operates 1,495 women's accessories stores in 49 states, the Caribbean, Canada, Japan and the United Kingdom.

The Limited, Inc. (614-479-7000) reported that its second quarter net sales increased 10% to $1.896 billion from $1.719 billion during the second quarter last year. Operating income increased 14% to $81.5 million from $71.4 million last year and net income increased 16% to $33.2 million from $28.7 million. The company currently operates 4,024 stores trading as Express, Lerner New York, Lane Bryant, Limited Stores, Henri Bendel, Structure, Abercrombie & Fitch, Limited Too and Galyan's. The company also owns 83% of Intimate Brands, Inc. which operates 1,430 stores trading as Victoria's Secret, Bath & Body Works, Cacique and Penhaligon's.

New Construction

Developers Diversified recently began the demolition work at Merriam Town Center in Merriam, KS, with construction expected to begin during Fall. The 436,087 sq.ft. project will be anchored by AMC Theaters, PetsMart, Hen House, three additional anchors and 55,000 sq.ft. of specialty stores and restaurants. The project is expected to open during Summer 1997.

For more information, contact Developers Diversified at (216-247-4700), Fax (247-1118).

The Mills Corporation and Empire Ltd. are planning to develop a 2.1 million sq.ft. value-oriented mall on a 592 acre site contiguous to the Meadowlands Sports Complex in Carlstadt, NJ. In addition to the retail complex, the project will contain 2.2 million sq.ft. to office space; 50,000 sq.ft. of restaurant space; 1,000 hotel rooms and 150,000 sq.ft. of light industrial space. The mall is expected to open during 1999.

For more information, contact Ken Parent of The Mills Corporation at (703-526-5054).

The Hahn Company recently completed construction and opened Park Meadows Mall in Denver, CO. The 1.5 million sq.ft. "retail resort" combines a mix of retail and entertainment concepts housed in a mountain lodge atmosphere. The project is anchored by a 225,000 sq.ft. Nordstrom's and a 250,000 sq.ft. Dillard's Department Store. A 75,276 sq.ft. United Artists Starport, multi-screen cinema is expected to open during November and a 200,000 sq.ft. Foley's and a 200,000 sq.ft. Joslins are expected to open during Spring 1997. A 22,262 sq.ft. Grand Dining Hall and 100 specialty stores occupying 565,935 sq.ft. round out the complex. An additional 53,000 sq.ft. of peripheral pad sites and parking for 7,200 vehicles are also found at the project.

For more information, contact Terri Powers, Vice President of Leasing at The Hahn Company, at (619-546-3210).

The Rouse Company is planning to develop The Marketplace Oviedo Crossing in Oviedo, FL. The 1.2 million sq.ft. project will be anchored by a 200,000 sq.ft. Dillard's Department Store, a 180,000 sq.ft. Gayfers Department Store and a 14-screen, 50,000 sq.ft. United Artists Theater. Also planned for phase I of the project are three superstores occupying between 60,000 sq.ft. and 90,000 sq.ft.; 210,000 sq.ft. of small shop space; 10,000 sq.ft. of restaurant space; a 5,000 sq.ft. food court and parking for 3,400 vehicles. Phase II expansion can accommodate three additional department stores as well as mall space GLA. The project is expected to open during Spring 1998.

For more information, contact The Rouse Company at (410-992-6000), Fax (992-6147).

Who's Opening and Where...

Micro Center-The Computer Department Store (614-481-5452) plans to open a 46,000 sq.ft. store at the site of a former Handy Andy's in Chicago, IL before Christmas.

Manhattan Bagel Co. (908-544-0155) recently opened its second bagel store in Canada in Edmonton, Alberta through franchisee Comac Food Group, Inc. The company also recently opened three stores in Charlotte, NC at Arboretum Shopping Center, Sharon Corners Shopping Center and Tower Place Shopping Center. In addition, the company recently signed an agreement with The Vons Companies, Inc. to open Manhattan Bagel bakeries inside Vons and Pavilions supermarkets in southern CA. The in-store units will be operated by Manhattan Bagel franchisees in space leased from Vons. The agreement calls for seven units in San Diego, Laguna, Niguel, Carlsbad, Rancho Santa Margarita, Long Beach and Simi Valley. Negotiations for additional sites are continuing. Vons operates 325 supermarkets in CA.

Starbucks (206-447-1575) recently opened a store in Tokyo, Japan, the first of 15 units plans for that country by the end of 1997.

Lowe's (910-651-4223) recently announced that it has signed co-branding agreements with Krispy Kreme, Subway and Blimpie to open restaurants inside select stores.

Delchamps, Inc. (334-433-0431) recently opened a 16,236 sq.ft. supermarket in downtown Mobile, AL. The store is the company's 119th unit.

Target Stores (612-370-6073) is looking to build a 120,000 sq.ft. store near Nicollet Mall in downtown Minneapolis, MN.

Pudgie's Chicken, Inc. (516-222-8833) recently signed a franchise agreement with Ultimate Food Concepts to open a minimum of six Pudgie Restaurants in the Los Angeles, CA area with the first unit expected to open during October.

Friday's Hospitality Worldwide, Inc. (214-450-5400) plans to launch a new concept called Friday's American Bar at the Dallas/Fort Worth International Airport this month. The company is planning to open two more units at the airport during 1997 and as many as 150 American Bar units worldwide in the coming five years. American Bar units will be about one-third the size of a regular TGI Friday's restaurant and feature a limited menu while attempting to recreate the corner bar atmosphere.

Saks (212-940-5700) plans to open a 20,000 sq.ft. Off 5th-Saks Fifth Avenue Outlet at Gulfport Factory Shops in Gulfport, MS during the Fall.

Cambridge SoundWorks, Inc. (617-332-5936) recently opened five stores and relocated four others. New stores were opened at West Farms Mall in Hartford, CT; Solomon Pond Mall in Malboro, MA; Maine Mall in Portland, ME; Stone Ridge Mall in Pleasanton, CA; and Great Mall in Milpitas, CA. Stores being relocated include the Concord, CA store from a freestanding facility to Sun Valley Mall; the downtown San Francisco, CA store to a larger downtown site; a freestanding store in Danvers, MA to North Shore Mall in Peabody, MA; and a freestanding Burlington, MA store to Burlington Mall in Burlington, MA. The company operates 28 stores selling stereo and home theater electronic equipment.

Kohl's Corp. (414-783-5800) plans to open department stores at Windsor Square, Carolina Pavilion and on U.S. 29 in the Charlotte, NC area this month.

PC Richard & Sons (516-843-4300) plans to open a 30,000 sq.ft. computer store at Somerville Circle Shopping Center in Raritan, NJ this month.

Kohl's Food Stores (414-771-8000) plans to open three Kohl's Food Emporium supermarkets in Madison, WI next year. One store is planned for Prairie Towne Shopping Center.

Wal*Mart Stores (501-273-4000) plans to open a 132,600 sq.ft. store at Delta Oaks Shopping Center in Eugene, OR during Spring 1997.

Long's Drug Store, Inc. (510-210-6763) plans to open a 20,000 sq.ft. store at WestWind Marketplace in Colorado Springs, CO during March 1997. Long's operates 330 drug stores throughout the western region, including five in Colorado Springs.

Checkers Drive-In Restaurants, Inc. (813-441-3500), through franchisee Specialized Restaurants, Inc., recently opened its first restaurant that is co-branded with a British Petroleum service station. The project is located in Eufaula, AL. The Checkers unit occupies an 800 sq.ft. space and includes seating for 22 customers and a single drive-thru lane. Specialized Restaurants is planning to open more dual-branded units.

Exclusives: Leasing & Management Assignments

Equity Properties, Inc. (610-645-7700) has been named the exclusive leasing agent and property management firm of Sharon Hill Shopping Center in Sharon Hill, PA. The 80,000 sq.ft. project is anchored by Acme Supermarket and Rite Aid. Spaces of 2,000 sq.ft., 2,800 sq.ft. and 24,000 sq.ft. is available for lease. The company has been named the exclusive leasing agent for Leslie's Poolmart for its expansion in the DE, NJ and PA markets. Space requirements include 3,500 sq.ft. to 5,000 sq.ft. pad sites, end-caps or visible in-line spaces. The company has also been named the exclusive leasing agent for The Coffee Beanery for the Philadelphia, PA region. Space requirements include 1,500 sq.ft. to 2,000 sq.ft. freestanding or end-cap spaces.

PM Realty Group, Midwest/Northeast Division (312-944-2800) was recently awarded the leasing and managing contracts for three Chicago, IL area shopping centers by Kmart Corporation. The properties, located in Chicago, IL; Crystal Lake, IL and West Chicago, IL, total 467,464 sq.ft. with two of the centers anchored by Kmart and the third anchored by Dominick's.

The Katsias Company (757-490-3585) has been appointed the exclusive representative for The Barbers Hairstyling for Men & Women, Inc., trading as Cost Cutters for the Hampton Roads, VA and eastern NC markets.

The Levey Companies (201-533-1100) have been named the exclusive leasing agent for Downtowne at Roseland in Roseland, NJ. The 45,000 sq.ft. project is anchored by Ace Hardware. Spaces from 1,440 sq.ft. are available for lease.

Friedland Realty, Inc. (914-968-8500) has been appointed the exclusive leasing agent for The Mall at Cross County in Yonkers, NY; High Ridge Plaza in Yonkers, NY; Village Square Shopping Center in Larchmont, NY; and North Ridge Shopping Center in New Rochelle, NY. The total GLA of the centers is 370,000 sq.ft. and spaces from 1,000 sq.ft. to 10,000 sq.ft. are available at each location. The Mall at Cross County, which is anchored by T.J. Maxx, Sports Authority and Kids 'R Us, will be expanded 40,000 sq.ft. to accommodate a Circuit City store which is expected to open during November 1997.

Buyers & Sellers of Commercial Properties

Benj. E. Sherman & Sons has the listing to sell Bald Eagle Factory Outlets in McElhattan, PA. The 109,529 sq.ft. project is anchored by Bass Apparel, Reebok, Carter's, Corning, Danskin and London Fog. An expansion area of up to 90,000 sq.ft. is also available. The asking price is $3.75 million.

For more information, contact Kelly Frank at (312-220-9000).

Coldwell Banker Mountain West Real Estate has the listing to sell Hot N Now restaurants in Klamath Falls, Medford and Salem, OR.

For more information, contact Bill Frey at (503-588-3522, Ext. 326).

Robert R. Bunn & Associates represents a convenience store chain that is seeking an investor for a sale/leaseback transaction. The company also represents an investment company seeking 15-year NNN leases.

For more information, contact Robert E. Bunn at (573-335-3351), Fax (335-3351).

Allen Fuller Co. Realtors represents investors in the market to acquire single tenant NNN leased properties. Preferred properties are tenanted by Eckerd, Walgreens, Winn-Dixie or Borders. Preferred locations are FL and other strong growth areas. Leases with at least 15 years remaining on the lease term are also preferred. The company also represents investors in the market to acquire anchored (food, drug or discount) shopping centers in FL, the Southeastern and Midwestern regions. Preferred properties have GLAs of at least 75,000 sq.ft., value added opportunities and upside potential. Properties with vacancies will be considered.

For more information, contact David Mufson at (305-532-0881), Fax (532-0882).

Cushman & Wakefield of Florida, Inc. has the listing to sell two parcels of land in East Tampa, FL. The parcels, which are located side-by-side, are 49.98 acres and 39.3 acres in size and located across from Brandon Town Center Mall. Other retailers in the area include Home Depot, Circuit City, Waccamaw, Sports Authority, Michael's, T.J. Maxx, Staples, Target, Service Merchandise, Ross, Sears, Dillard's and Burdines.

For more information, contact Bruce Erhardt at (813-223-6300).

The Brookhill Group is in the market to acquire underperforming strip shopping centers and small malls located east of the Rocky Mountains with a preference for Atlantic Coast sites. Preferred properties are distressed-turnaround candidates that have neglected maintenance or tired appearance, high vacancy rates or dark anchors, over leveraged or maturing debt and environmental contamination. Preferred properties also have GLAs of at least 100,000 sq.ft. and trade area populations of at least 250,000.

For more information, contact Charles G. Smail at (212-753-3123), Fax (371-9515).

Developers Diversified is in the market to acquire power centers nationwide. Preferred properties have GLAs between 250,000 sq.ft. and 600,000 sq.ft., with small shop GLA running between 20,000 sq.ft. to 50,000 sq.ft., and at least two strong national anchors, such as Wal*Mart, Target, Home Depot, Lowe's or major regional or national supermarkets. Prices between $10 million and $75 million will be considered. All cash deals are preferred.

For more information, contact James A. Schoff or Loren F. Henry at (216-247-4700), Fax (247-1118).

Lincoln Property Company has the listing to sell Hillsborough Galleria in Tampa, FL. The 121,700 sq.ft. project is anchored by Sports Authority, Bally's and Kenny Rogers' Roasters. The asking price is $11.95 million. The company has the listing to sell Sunset Plaza in Lutz, FL. The 128,732 sq.ft. project is anchored by Winn Dixie and Walgreens. The asking price is $6.85 million. The company has the listing to sell Parsons Village Square in Brandon, FL. The 81,294 sq.ft. project is anchored by Kash 'N Karry which owns its lot. The asking price is $3.85 million. The company has the listing to sell Marina Village in St. Petersburg, FL. The 54,613 sq.ft. project is anchored by Frank's and Gold's Gym. The asking price is $3.65 million. The company has the listing to sell Central Plaza North. The 73,200 sq.ft. project is 92% occupied. The asking price is $2.95 million. The company has the listing to sell Central Plaza Central in St. Petersburg, FL. The 31,284 sq.ft. project is anchored by Walgreens. The asking price is $2.975 million. The company also has the listing to sell Oakmont Terrace in Bradenton, FL. The 56,539 sq.ft. project is anchored by Cobb Theater. The asking price is $4.1 million.

For more information, contact Bob White at (813-286-4001).

Real Estate Professionals Making News

HomeTown Buffet, Inc. (619-546-9096) announces that Glenn E. Glasshagel, vice president, chief financial officer and treasurer, has resigned his positions with the company.

The Mills Corporation (703-526-5000) announces that the following people have joined the company: Cary G. Adams has joined the company as a vice president, national accounts. He formerly served as vice president real estate at Hechinger Company and The May Department Stores Company; Rod Chisessi as vice president, national accounts. He formerly served as principal of Rod Chisessi Commercial Real Estate and as senior real estate manager at Mervyn's/Dayton Hudson Corp.; Bill Montgomery as vice president, peripheral development. He formerly served as director of real estate with United Artists Theatre Circuit, Inc. Joining the leasing team were: Melody Brandon, Donn L. Davids, Scott M. Fox, Susan J. Germack, Richard Hatem, Tad Johnson, Stuart Lieberman, Zoltan L. Nagy, Tyler Oliver, Scott S. Sarti and Lisa Snead. The company also announces that the following people were promoted to senior leasing executive: Bill Berry, leasing for Arizona Mills in Phoenix, AZ; Jay Buckey, leasing for Ontario Mills in Los Angeles, CA; Donn Davids, leasing for Franklin Mills in Philadelphia, PA and Gurnee Mills in Chicago, IL; Andrew Pelmoter, leasing for Grapevine Mills in Dallas, TX; Scott Sarti, leasing for Franklin and Gurnee Mills; and Lisa Snead, leasing for Potomac Mills in VA and Sawgrass Mills in FL.

Store Closings

Edison Bros. Stores (314-331-6000) plans to close 140 additional stores, including its last 10 in Mexico, during its fiscal second quarter.

American Specialty Corp. (414-436-7300) plans to close its 98 Id women's apparel stores by the end of October. The decision to liquidate was made because of the company's cash constraints and limited success since last year. The company is also attempting to close without filing for bankruptcy.

Rickel Home Centers, Inc. (908-668-7000), which is operating under Chapter 11, plans to close 18 additional stores before the end of the year. The company is planning to close its stores in Audubon, Cinnaminson, East Brunswick, Edgewater Park, Ocean Township, Phillipsburg, South Brunswick, West Berlin, Woodbridge and Woodbury Heights, NJ; Bristol, Brookhaven, Glenolden, Philadelphia (3), and Shillington, PA and Monsey, NY.

Food Tenants Seeking Sites in The Midwest

Pizza Ranch, Inc. trades as The Pizza Ranch at 74 locations in IA, MI, MN, NE, ND and SD. The restaurants, which serve pizza and chicken, occupy spaces of 4,000 sq.ft. in downtown store fronts, freestanding facilities and regional malls. Plans call for as many as 30 openings annually. Expansion will take place throughout the Midwestern region. The company is franchising.

For more information, contact Lawrence Vander Esch, Pizza Ranch, Inc., 1112 Main Box 823, Hull, IA 51239; 800-321-3401, Fax 712-439-1125.

MCL Cafeterias, Inc. trades as MCL Cafeterias at 28 locations throughout IL, IN and OH. The cafeteria-style restaurants occupy spaces of 8,500 sq.ft. in power, specialty and strip centers. Plans call for one openings in the coming 18 months. Expansion will take place within the existing markets.

For more information, contact Mark Lawrence, MCL Cafeterias, Inc., 2730 East 62nd Street, Indianapolis, IN 46220; 317-257-5425, Fax 252-8504.

Price Candy does business as Price's Fine Chocolates at 46 locations in IL, IN and WI. The stores, selling chocolate confections, soft serve yogurt and gourmet coffees, occupy spaces of 1,000 sq.ft. in regional malls and specialty centers. Growth opportunities are sought throughout the Midwestern region.

For more information, contact Dave Mastricola, Price Candy, 8300 Northeast Underground Drive, Kansas City, MO 64161; 816-455-6000, Fax 455-6004.

Lloyd's Ice Cream trades as Lic's at 13 locations in KY and IN. The restaurants, selling deli sandwiches and ice cream, occupy spaces of 1,500 sq.ft. in freestanding facilities, regional malls and strip centers. Growth opportunities are sought throughout IN.

For more information, contact Don Smith, Lloyd's Ice Cream, 11 Northwest Fifth Street, Evansville, IN 47708; 812-424-3066, Fax 424-3055.

Embers Restaurants, Inc. trades as Embers Restaurants at 27 locations in IA, MN, ND, SD and WI. The family restaurants occupy spaces of 5,000 sq.ft. to 5,500 sq.ft. in freestanding facilities. Preferred anchors include major retailers. Growth opportunities are sought in the existing markets. Preferred demographics include a population of 35,000 within three miles earning $30,000 as the average income. The company prefers to own its locations.

For more information, contact Henry Kristal, Embers Restaurants, Inc., 1664 University Avenue, St. Paul, MN 55104; 612-645-6473, Fax 645-6866.

Marco's, Inc. trades as Marco's Pizza at 95 locations throughout IN, MI and OH. The pizza restaurants occupy spaces of 1,200 sq.ft. to 1,400 sq.ft. in freestanding facilities and strip centers. Plans call for as many as 30 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running three to five years are typical and the company is franchising.

For more information, contact Larry Howard, Marco's, Inc., 5254 Monroe Street, Toledo, OH 43623; 419-885-4844, Fax 882-4730.

Hall Road Corporation does business as Dawn Donuts and Dunkin' Donuts at 66 locations in MI and IN. The stores, selling donuts, convenience items and gasoline, occupy spaces of 3,000 sq.ft. in freestanding facilities, regional malls and specialty centers. Plans call for six openings in the coming 18 months. Expansion will take place in MI, IN and OH.

For more information, contact Winfield Cooper, Hall Road Corporation, 3487 Linden Road, Flint, MI 48507; 810-732-6000, Fax 732-6003.

Irving's For Red Hot Lovers operates 12 locations in IL and OH. The fast food restaurants, serving hamburgers, hot dogs, fish and chicken sandwiches, occupy spaces of 1,000 sq.ft. to 1,600 sq.ft. in regional malls and strip centers. Plans call for as many as six openings in the coming 18 months. Expansion will take place in IL.

For more information, contact Irving Greenspan, Irving's For Red Hot Lovers, 436 Frontage Road, Northfield, IL 60093; 847-446-2855, Fax 446-2860.

River Restaurants does business as Barn'rds and Lansky's at four locations in IA, KS and NE. The restaurants occupy spaces of 3,500 sq.ft. in strip centers. Plans call for one opening in the coming 18 months. Expansion will take place in NE.

For more information, contact Samuel Marvin, River Restaurants, 500 West Broadway, Suite 412, Council Bluffs, IA 51503; 712-323-2484, Fax 323-9211.

Lease Signings

DiMucci Development Corp. (847-991-4400) leased 33,000 sq.ft. to Bed, Bath & Beyond at Fox River Commons in Naperville, IL.

Litvin/LaRue/Greenfield Commercial Real Estate, Inc. (630-773-1555) leased two spaces to Hollywood Video in downtown Chicago, IL as well as spaces at Schaumburg Market Place in Schaumburg, IL; Baker Hill Shopping Center in Glen Ellyn, IL; Deer Grove Shopping Center in Palatine, IL; Mallard Crossing Shopping Center in Elk Grove Village; The Landings in Lansing, IN; Michigan City Town Center in Michigan City, IN; and Highland Grove Shopping Center in Highland, IN.

Developers Diversified (216-247-1740) leased 30,000 sq.ft. to Saks Fifth Avenue for an Off 5th-Saks Fifth Avenue Outlet store at Woodfield Village Green in Schaumburg, IL.

CB Commercial Real Estate Group, Inc. (415-772-0241) leased 20,000 sq.ft. to Diesel Jeans at Union Square in San Francisco, CA.

Metro Commercial Real Estate, Inc. (609-866-1900) leased 28,500 sq.ft. to T.J. Maxx at Gateway Shopping Center in Devon, PA.

The Katsias Company (757-490-3585) leased 1,600 sq.ft. to Beneficial Management Corporation of America, 1,600 sq.ft. to Enterprise Rent-A-Car and 800 sq.ft. to Albano Cleaners at Holland Plaza Shopping Center in Virginia Beach, VA; and represented Chesapeake Bagel Bakery in leasing a 2,400 sq.ft. building in front of Hilltop East Shopping Center in Virginia Beach, VA.

Boyd, Page & Associates (713-877-8400) leased 19,400 sq.ft. to Cost Plus World Market at a new building adjacent to Willowbrook Mall in Houston, TX.

The Levey Companies (201-533-1100) leased 6,000 sq.ft. to Applebee's Restaurant, 6,200 sq.ft. to Harmon Drugs & Cosmetics and 2,000 sq.ft. to Choi Art Gallery at Fidelity Totowa Shopping Center in Totowa, NJ; 11,000 sq.ft. to Revco Pharmacy and 15,000 sq.ft. to Jacks Famous Furniture in Freehold, NJ; and 6,500 sq.ft. to Marty's Shoes at Loehmann's Plaza in Florham Park, NJ.

Space Place

Florida

Haines City- Heart of Florida Shopping Center is anchored by Wal*Mart and Kash 'N Karry. The 132,301 sq.ft. project has spaces of 1,240 sq.ft. and 4,692 sq.ft. available for lease.

For details, contact The Brookhill Group at (212-753-3123), Fax (371-9515).

Tampa- A 6,500 sq.ft. end-cap space is available for lease by a restaurant user on North Dale Mabry Highway. The highway has a daily traffic count of 67,000 vehicles. Demographics include a population of 181,114 within five miles earning $46,446 as the average household income.

For details, contact Vicki Anthony of Abaco Management, Inc. at (813-264-2440).

Illinois

Joilet- Wilderness Mall is anchored by Montgomery Ward and Menard's. The 500,000 sq.ft. project has spaces from 1,500 sq.ft. to 60,000 sq.ft. available for lease. Demographics include a trade area population of 125,000.

For details, contact David Berkson of Berkson & Sons at (847-498-6000).

Massachusetts

Springfield- Five Town Plaza is anchored by Caldor, Super Foodmart, Michael's Arts & Crafts, Fashion Bug, Strauss Auto, Payless Shoes and Radio Shack. The 292,660 sq.ft. project has spaces of 2,000 sq.ft., 2,850 sq.ft., 8,208 sq.ft. and 35,100 sq.ft. available for lease. Demographics include a five-mile population of 183,367 earning $43,288 as the average household income.

For details, contact SCS Retail Real Estate at (203-863-8219), Fax (861-6470).

Oregon

Klamath Falls- Klamath Mall is anchored by Gottschalks, Craft World, Radio Shack and Maurices. The 300,000 sq.ft. project has spaces up to 135,000 sq.ft. available for lease. Demographics include a trade area population in excess of 80,000.

For details, contact PTM Realty Investments at (800-215-2847).

Virginia

Charlottesville- York Place is anchored by a six-screen movie theater. The 44,000 sq.ft. project, which is being redeveloped, has spaces of 780 sq.ft., 1,060 sq.ft., 1,100 sq.ft. and 1,220 sq.ft. available for lease. Demographics include a five-mile population of 80,000 earning $31,500 as the average income. The site is located near Sears, Kmart, AnnTaylor, Gap and Nine West.

For details, contact Chuck Lewis of Mall Properties at (804-984-4517), Fax (984-3705).

Norfolk- Wards Corner Shoppes is anchored by ATC Fitness. The 14,757 sq.ft. project has a 6,665 sq.ft. end cap space available for lease.

For details, contact Mike Zarpas of Robinson Sigma Commercial Real Estate at (804-640-7130), Fax (640-7131).

Virginia Beach- Holland Plaza Shopping Center is anchored by Food Lion and Revco. The 86,000 sq.ft. project has spaces of 1,200 sq.ft. and 3,000 sq.ft. available for lease. Demographics include a three-mile population of 152,704 earning $39,804 as the average household income. An expansion of 87,000 sq.ft. with be available during Fall 1997.

For details, contact John Katsias of The Katsias Company at (757-490-3585), Fax (490-3676).

West Virginia

Teays Valley- Liberty Square Shopping Center is anchored by Big Bear Grocery, Hills Department Store and Stone & Thomas Department Store. The 270,000 sq.ft. project has spaces available for lease. Demographics include a trade area population of 91,000 earning $42,000 as the average household income.

For details, contact T.J. Summers of Four-S Development at (304-345-8700).

Correction

In the July 31, 1996 issue of The Dealmakers, the contact person and fax number for Bally Total Fitness were incorrectly reported. The correct contact person is Steven St. Peter, Bally Total Fitness, 8700 West Brynmaur, Chicago, IL 60631; 312-399-7600, Fax 380-7468.