|
The
Dealmakers Issue Number 35 for the week of October 2, 1996. My Way
be Ted Kraus Business
may be almost too good, leasing is active, everyone seems to be hiring and most developers
are anxious to purchase more "product." This
activity has caused rents to increase too aggressively, in my humble opinion, and while
there's plenty of centers for sale, few make real economic sense (of course that doesn't
stop a lot of people from buying 'em; they may not make money off the center but they make
it up with volume). We
have one client that made an offer to purchase a $12 million center and entered into
contract negotiations without ever looking at the property, he trusted both the broker and
the "numbers" he was presented with. God
does that scare me. Now, don't get me wrong,
I'm not telling the 25,000 sq.ft. apparel store not to pay $17 psf or the 100,000 sq.ft.
"category killer" not to pay $15 psf, that's their business and they won't
listen to me anyway, but this does remind me of a mini 1980's revisited and we all know
what happened in the 90's. I was
with one client who makes lots of sense, so he probably won't succeed, but when we were
talking about rents and TI (tenant improvement), his position (when possible, he sticks
"to principles," but he's a realist, so he does what he has to do to make a
deal) is he'd rather make a $9 net, "as is" deal, than do a deal at $14 but
provide $30 in TI. His logic being that all
tenants will eventually fail, the ones that pay the highest rents and require the most TI
will fail faster and first. Therefore, when
he gets the property back, if it's at $9, he can make a realistic deal with the
"next" tenant, but at $14 the numbers become substantially more difficult to
replace. However, since he can "finance
out" most of the TI with a non-recourse loan, a 13.6% return is hard to turn down, so
he does do the $13, $30 TI deals also. However,
I really shouldn't complain, as a broker I make more on a higher rent. On a
different subject, I've gotten considerable feedback on my "Alternate Uses" My
Way a few issues back. In addition, since I
wrote it, I've received numerous flyers/notices on "Entertainment"
retailing/leasing and Airport retailing/leasing seminars.
First, I'm sorry I didn't think of putting on these seminars; at an attendance
charge of $900-$1,295 per person, there's a lot of money to be made for the promoter, it's
the attendees that have problems. However,
like most topics, it's more hype than reality. How
many developers "out there" have the resources, need or desire to put together a
200,000 sq.ft. to 300,000 sq.ft. entertainment complex with many of the tenants not being
credit worthy, therefore requiring more of their capital?
How many people in our industry are actively involved in actually leasing to
entertainment retailers (of course if you count making a 40,000 sq.ft. movie theater as
"entertainment," then I have an entertainment center near my house that is also
anchored by Kmart, Foodtown and Rite Aid) or leasing space in airports? When it comes to leasing in airports, I only know
of four companies involved with leasing to the retailer and while entertainment is a
larger segment, it's the big boys that are doing the leasing in both airports and
entertainment centers. Sure Simon is big, but
there are more "retail" brokers in Indianapolis than there are leasing people in
Simon, so this type of business represents a small segment of our total industry, but
seems to get most of the "PR." I'm
not saying we shouldn't be interested in these developments, I'm just saying they are over
hyped. As an industry, we seem to want to
make everything sexier than it really is. Just
because in 25 years of leasing I've done a movie theater, food court, book store, game
room, etc. deal doesn't make me an entertainment expert, it just makes me someone who did
a movie theater deal, but everyone with similar experience is claiming to be an expert. Further
complicating matters is that most entertainment complexes fail. Look at Ocean One in Atlantic City, the
entertainment complex that went bankrupt at Franklin Mills in Philly, Trump has closed his
amusement complex in Trump Castle, Faneuil Hall in Boston, MGM Entertainment Park in Vegas
and South Street Seaport in New York are only marginally successful for the actual owners
and all have a higher than normal turnover. Making
entertainment work is still unproven. Many of
the 'core' tenants fail, i.e. Discovery Zone, Q-Zar stores often close within a few years
of opening and the book chains such as Borders and Barnes & Noble still haven't made a
profit; most of the "indoor golf courses" have failed as have many of the
smaller entertainment courts that mall developers have attempted to date. 50,000 to 70,000 sq.ft. movie theaters are
unproven (but Sony has great credit) and most of the food tenants require big TI to make a
deal ($80-200 psf) and I don't personally believe they add that much to a center. Sure, most centers need food to be successful
(hungry customers spend less time and money at the center), but what does a Planet
Hollywood do for the project. I can't see Ann
going to buy a dress (or book) before going to All-Star Cafe for dinner. We'll go there, get drunk and go home, no or
little cross shopping involved. Sure the
parking lot is filled, but the other tenants besides the restaurant are starving. That
doesn't mean you shouldn't do deals with these tenants, if the demographics and site make
sense, do it, but it doesn't have to be an entertainment center to succeed, it can be a
shopping center that has a movie theater or Planet Hollywood or whatever as a tenant along
with Target and Piggly Wiggly. Regarding
airports, no profession knows better than ours how poorly run airports, and their food and
retail shops have been and to some extent, still are.
With the recent growth of airports and their expansion/redevelopment, cities are
bringing these complexes into the 20th century (of course, the 21st Century is only four
years away, but that's besides the point). Now
most offer decent food or at least edible food, and have a fair selection of goods to
purchase while stuck in the airport for two or four hours, but the phenomenal growth won't
continue. First, the easy growth is over. Pittsburgh built their new airport, it went from
being a piece of crap to something decent, so next year's growth will be pale in
comparison to the year the new airport opened. Complicating
matters further is the unknown effect of terrorism on flying and while I can see
McDonald's opening and doing great, Home Depot won't be opening a 110,000 sq.ft. store and
if Borders decides to open in an airport, I doubt it will be a 25,000 sq.ft. unit, try
2,500 sq.ft. If Toys 'R Us decides to open,
it won't be a 50,000 sq.ft. super store, it will be a 3,000 sq.ft. toy store. So
when you look at the total footage involved, it's zilch in comparison to the amount of
square footage even Kmart will add this year. It's
giving too much credit to an extremely small segment of retailing. Retailers
Seeking Southeastern Sites United
Equities trades as Garden Ridge at 15 locations in FL, KY, NC, OK, TN and TX. The home decor stores, selling crafts, housewares,
pottery, party supplies, floral arrangements, candles, baskets, pictures and seasonal
items, occupy spaces of 140,000 sq.ft. in freestanding facilities and power centers. Plans call for 12 openings in the coming 18
months. Expansion will take place in the
Southeastern region. Leases running 15 to 20
years are typical. For more information, contact Buster Freedman,
United Equities, 6909 Ashcroft, Suite 200, Houston, TX 77081; 713-772-6262, Fax 981-4035. Brody's
Co. operates six locations in NC. The men's
and women's apparel stores occupy spaces of 50,000 sq.ft. to 70,000 sq.ft. in regional
malls. Growth opportunities are sought in the
existing market. For more information, contact Hyman J. Brody,
Brody's Co., The Plaza, Greenville, NC 27858; 919-756-3140, Fax 355-6858. Bi-Lo,
Inc. trades as Bi-Lo Supermarkets at 262 locations in GA, NC, SC and TN. The supermarkets occupy spaces of 30,600 sq.ft. to
46,000 sq.ft. in freestanding facilities and strip centers.
Plans call for as many as 10 openings in the coming 18 months. Expansion will take place in the existing markets. for more information, contact Bart Coleman, Bi-Lo,
Inc., PO Drawer 99, Mauldin, SC 29662; 864-234-1600, Ext. 1656, Fax 675-5480. Grand
Furniture Discount Store operates nine locations in VA.
The home decor stores occupy spaces of 30,000 sq.ft. in freestanding facilities,
outlet and strip centers. Plans call for
three openings in the coming 18 months. Expansion
will take place in MD, NC and VA. For more information, contact Gerald Stein, Grand
Furniture Discount Store, 836 East Little Creek Road, Norfolk, VA 23518; 804-456-0365, Fax
490-9310. Scotty's,
Inc. trades as Scotty's at 152 locations in AL, FL and GA.
The home improvement stores occupy spaces of 10,000 sq.ft. to 60,000 sq.ft. in
freestanding facilities and strip centers. Growth
opportunities are sought in the existing markets. For more information, contact Richard Flora,
Scotty's, Inc., PO Box 939, Winter Haven, FL 33882-0939; 941-297-6075, Fax 291-4838. Federated
Department Stores trades as Macy's East at 89 locations in AL, CT, DE, FL, GA, LA, ME, MD,
MA, NH, NJ, NY, PA, RI and VA. The department
stores occupy spaces of 51,000 sq.ft. to 588,000 sq.ft. in freestanding facilities and
regional malls. Plans call for one opening in
the coming 18 months. Expansion will take
place in FL. The company trades as Goldsmith's at five
locations in TN. The department stores occupy
spaces of 132,000 sq.ft. to 340,000 sq.ft. in regional malls. Plans call for one opening in the coming 18
months. Expansion will take place in the
existing market. The company also trades as Burdines at 47
locations in FL. The department stores occupy
spaces of 45,000 sq.ft. to 628,000 sq.ft. in freestanding facilities and regional malls. Plans call for one opening in the coming 18
months. Expansion will take place in the
existing market. For more information, contact Paula Coffey,
Federated Department Stores, 7 West 7th Street, Cincinnati, OH 45202; 513-579-7905, Fax
579-7185. Kux
Jewelers & Distributing Co. operates two locations in MS. The jewelry and gift stores occupy spaces of
15,000 sq.ft. in strip centers. Growth
opportunities are sought in the existing market. For more information, contact David Kux, Kux
Jewelers & Distributing Co., 1509 West Fourth Street, Laurel, MS 39440; 601-428-0674,
Fax 428-0677. Autry
Greer & Sons, Inc. trades as Greers at 38 locations in AL, FL and MS. The supermarkets occupy spaces of 12,000 sq.ft. to
28,000 sq.ft. in freestanding facilities and strip centers.
Growth opportunities are sought in the existing markets. For more information, contact Barton Greer, Autry
Greer & Sons, Inc., 2850 West Main Street, Prichard, AL 36612; 334-457-8655, Fax
456-3744. U.S.
Factory Outlets, Inc. trades as U.S. Factory Outlets at 24 locations nationwide. The outlet stores, offering general merchandise,
apparel and closeouts at bargain price-points, 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. Fashions
Direct, Inc. does business as Euro Collections and Fashions Direct at six locations in AL,
FL and GA. The women's apparel stores occupy
spaces of 2,500 sq.ft. in outlet and power centers. Growth
opportunities are sought in the Southern region. For more information, contact Steve Prince,
Fashions Direct, Inc., 67 Liberty Church Road, Carrolton, GA 30116; 770-854-5488, Fax
854-8464. Arkansas
Craft Guild trades as Arkansas Galleries at five locations in AR. The card and gift stores occupy spaces of at least
1,000 sq.ft. in downtown store fronts and freestanding facilities. Growth opportunities are sought in the existing
market. For more information, contact Linda Van Trump,
Arkansas Craft Guild, PO Box 800, Mountain View, AR 72560; 501-269-3897, Fax 269-3030. HN
Funkhouser & Co. trades as NAPA at four locations in VA. The automotive parts and accessories stores occupy
spaces of 5,500 sq.ft. in freestanding facilities. Growth
opportunities are sought in the existing market. For more information, contact Robert Clayton, HN
Funkhouser & Co., PO Box 2030, Winchester, VA 22604; 540-662-9000, Fax 662-8165. On The
Shore, Inc. trades as On The Shore at five locations in FL.
The stores, selling women's beach cover-ups, t-shirts and accessories at high-end
price-points, occupy spaces of 800 sq.ft. to 1,500 sq.ft. in upscale regional malls,
specialty and strip centers. Preferred
anchors include Neiman Marcus, Saks and Cache. Plans
call for six openings in the coming 18 months. Expansion
will take place in FL, GA, NC, SC, Washington, D.C. and Puerto Rico. Preferred demographics include a population of
750,000 in the metropolitan or tourist area earning at least $50,000 as the average
household income. Leases running at least
seven years are typical. For more information, contact Nick Robbins, On the
Shore, Inc., c/o NHR, P.A., Village Green Unit 1402, 3671 Collins Street, Sarasota, FL
34232-3111; 941-365-8888, Fax 954-9020. Skinner
Group does business as Skinner Furniture Stores at 15 locations in AL, FL and GA. The stores, selling home furnishings, appliances
and electronics, occupy spaces of 10,000 sq.ft. to 12,000 sq.ft. in freestanding
facilities and strip centers. Plans call for
two openings in the coming 18 months. Expansion
will take place within the existing markets. For more information, contact Steve Curry, Skinner
Group, PO Box 629, West Point, GA 31833; 706-645-6445, Fax 645-6401. Winn-Dixie
Stores, Inc. trades as Winn-Dixie at 1,175 locations in AL, FL, GA, IN, KY, LA, MS, NC,
OH, OK, SC, TN, TX and VA. The supermarkets
occupy spaces of 35,000 sq.ft. to 50,000 sq.ft. in freestanding facilities and strip
centers. Growth opportunities are sought in
the existing states. For more information, contact J.D. Dismuke,
Winn-Dixie Stores, Inc., 5050 Edgewood Court, Jacksonville, FL 32254; 904-783-5000, Fax
783-5294. Stone's,
Inc. operates nine locations in FL and GA. The
hardware stores occupy spaces of 10,000 sq.ft. in freestanding facilities. Space for a lumber yard is required. Plans call for one opening in the coming 18
months. Expansion will take place within the
existing markets. For more information, contact Laura Bridges,
Stone's, Inc., PO Box 974, Bainbridge, GA 31718-0974; 912-246-2929, Fax 246-9083. Variety
Wholesalers does business as Allied Department Stores, Max Way, Bargain Town and Super 10
at 620 locations in AL, FL, GA, LA, MS, NC, SC, VA and WV.
The Allied Department Stores, which sell family apparel, occupy spaces of 6,000
sq.ft. in downtown store fronts and strip centers; the Super 10 stores, which sell general
merchandise, occupy spaces of 8,000 sq.ft. in downtown store fronts and strip centers and
the Max Way and Bargain Town stores, which also sell general merchandise, occupy spaces of
16,000 sq.ft. in downtown store fronts and strip centers.
Growth opportunities are sought in the existing markets. For more information, contact Jim Cartlidge,
Variety Wholesalers, PO Box 17800, Raleigh, NC 27619; 919-876-6000, Ext. 306, Fax
790-9572. Delchamps,
Inc. trades as Delchamps at 118 locations in AL, FL, LA and MS. The supermarkets occupy spaces of 35,000 sq.ft. to
55,000 sq.ft. in strip centers. Plans call
for 10 openings in the coming 18 months. Expansion
will take place in the Southern region of the existing markets. For more information, contact Larry Griffin,
Delchamps, Inc., 305 Delchamps Drive, Mobile, AL 36633; 334-433-0437, Ext. 297, Fax
433-0431, Ext. 287. Lease
Signings AmCap
Properties, Inc. (303-321-1500) leased 3,920 sq.ft. to Castle Rock Payless Liquors, 1,560
sq.ft. to Cozzoli's Pizza Cafe, 1,200 sq.ft. to Cost Cutters and 1,314 sq.ft. to
Dependable Cleaners at Milestone Shopping Center in Castle Rock, CO; and 1,800 sq.ft. to
Mail Boxes, Etc. at Market Square Center in Lakewood, CO. Steiner
Management (305-441-8989) leased 15,000 sq.ft. to Iguana Cantina and 8,000 sq.ft. to
Sticky Fingers at the Streets of Mayfair in Coconut Grove, FL. Charter
Realty and Development Corp. (203-629-3939) leased 5,003 sq.ft. to Little Blessings for a
children's clothing store at Westport Plaza in Westport, CT. Island
Associates Real Estate (516-587-5050) leased 1,800 sq.ft. to GNC in Central Islip, NY. The
Hausman Companies (216-464-5900) leased two spaces to Bruegger's Bagels in Medina, OH and
at Middleburg Town Square in Middleburg Heights, OH. Capital
Realty Advisors, Inc. (407-744-1088) leased 900 sq.ft. to Tanco at The Village Shopping
Center in Austin, TX; 1,716 sq.ft. to Beepers Plus at Spring Park Plaza in Denham Springs,
LA; 1,680 sq.ft. to Southside Laundromat at Southside Shopping Center in Leesburg, FL;
1,400 sq.ft. to Palm Beach Center for Living at Shops at Palm Coast in West Palm Beach,
FL; and 1,403 sq.ft. to Tickle My Fancy at Crystal Tree Plaza in North Palm Beach, FL. Mortbitzer
Group, Inc. (407-539-1000) leased 2,543 sq.ft. to Transformations International at Lee
Road Shopping Center in Orlando, FL; 1,250 sq.ft. to Enterprise Leasing Company at
Magnolia Layne Shopping Center in Green Cove Springs, FL; 2,958 sq.ft. to Video Gametrader
at The Avenue Shoppes in Orlando, FL; 1,338 sq.ft. to The Haircut Shop and 790 sq.ft. to
Blue Ribbon Cleaners at Oviedo Shopping Center in Oviedo, FL and 4,500 sq.ft. to U.S.
Safety Shoes at Cypress Park Plaza in Orlando, FL. RJS/Jackson
Group (561-395-1200) leased 1,581 sq.ft. to H&R Block, 5,189 sq.ft. to Humana Medical
Plan and 1,218 sq.ft. to Mail Boxes, Etc. at Greenwood Shopping Centre in Palm Springs,
FL; and 1,760 sq.ft. to Lev's New York Bagels at Crosscreek Shopping Center in Boynton
Beach, FL. Equity
Properties, Inc. (610-645-7700) leased 2,100 sq.ft. to Frankford Associates for a
drycleaning store at The Pavilion in Jenkintown, PA; 1,000 sq.ft. to Petrucci's Ice Cream
at Upland Shopping Center in Upland, PA; and 1,000 sq.ft. to Bruegger's Bagels at Valley
Plaza in Allentown, PA. CB
Commercial Real Estate Group of City of Industry, CA (818-810-7600) leased 4,988 sq.ft. to
Applebee's Grill & Bar at Huntington Oaks Shopping Center in Monrovia, CA. Mid-America
Asset Management Co. (630-954-7300) leased 2,324 sq.ft. to The Better Back Store at
Village Crossings Shopping Center in Niles, IL; 1,518 sq.ft. to General Nutrition Center
at Westbrook Commons Shopping Center in Westchester, IL; 1,050 sq.ft. to Eddie Z's Blinds
Express at The Quarry Shopping Center in Hodgkins, IL; 2,720 sq.ft. to Bed Mart at
Brentwood Commons Shopping Center in Bensenville, IL; 1,425 sq.ft. to Great Lakes Shoes
Co. trading as Mephisto Shoe at Bannockburn Green Retail Center in Bannockburn, IL; 8,625
sq.ft. to Hollywood Video in Chicago, IL; 7,713 sq.ft. to SpinCycle in Chicago, IL and
1,320 sq.ft. to Garden Botanika in Chicago, IL. Sigma
National, Inc. (804-320-6100) leased 5,000 sq.ft. to Rack Room Shoes at Janaf Shopping
Center in Norfolk, VA. The
Ireland Companies (305-891-6806) leased 7,000 sq.ft. to Ciao Baby Cucina at NorthPort
Marketplace in Fort Lauderdale, FL. Litvin/LaRue/Greenfield
Commercial Real Estate, Inc. (630-773-1555) leased spaces of 10,000 sq.ft. in Evanston,
IL; 7,000 sq.ft. in Waukegan, IL; 8,000 sq.ft. in Orland Park, IL and 5,000 sq.ft. in
Chicago, IL to Hollywood Video. Summit
Realty And Development Corp. (407-889-5700) leased 1,000 sq.ft. to Raiza Fashions in
Orlando, FL. Who's
Opening and Where... Sony
Theaters (212-833-6160) plans to open an 11-screen, 125,000 sq.ft. Magic Johnson Theater
in the Jamaica section of Queens, NY by Christmas 1998. Office
Depot (407-265-4258) plans to open a 31,266 sq.ft. store at Siegen Village Shopping Center
in Baton Rouge, LA. Bed
Bath & Beyond (201-379-1750) plans to open a 33,000 sq.ft. store at Fox River Commons
in Naperville, IL. Woolworth
Corp. (212-553-2000) plans to open Footquarters stores at Woodfield Greens Shopping Center
in Schaumburg, IL; at Westridge Court Shopping Center in Naperville, IL and a store
adjacent to Kohl's in Hodgkins, IL. Barnes
& Noble, Inc. (212-633-3300) plans to open a 23,500 sq.ft. bookstore in Bakersfield,
CA during July 1997. Staples,
Inc. (508-370-8967) plans to open a 24,000 sq.ft. store at Delta Oaks Shopping Center in
Eugene, OR during the first quarter of 1997. The
Wedding Ring Company (770-565-5956), which specializes in rings for every occasion, with
an emphasis on engagement and anniversary rings, recently opened its first two stores at
Gwinnett Place and Town Center Malls in Atlanta, GA.
The company plans a nationwide rollout of the concept. Let's
Talk Cellular & Wireless (305-477-8255) recently opened a 450 sq.ft. store at Beach
Place in Fort Lauderdale, FL. It is the
company's fourth store in Broward County. Gateway
2000, Inc. (605-232-1371) plans to open retail outlets in New Haven, CT and Charlotte, NC
during Fall. Customers will be able to select
and order computers which will be shipped to their homes.
Prior to opening the stores, the company sold its computers through direct sales. Supervalu
(800-346-7008) recently opened a 160,000 sq.ft. bigg's "hyperstore" at
Governor's Pointe in Cincinnati, OH. Papa
John's International, Inc. (502-266-5200) recently opened a restaurant in Indianapolis,
IN, the company's 1,000th unit nationwide. Buyers
& Sellers of Commercial Properties Exchange
Partners, Inc., Grubb & Ellis and Banyan Management Corporation have the listing to
sell six development sites in CA, FL, VA and Washington, D.C. The properties include a 565 acre site at Laguna
Seca Ranch in Monterey, CA; a 270 acre site at Rancho Malibu in Malibu, CA; an 8.4 acre
site at Lindfields in Osceola, FL; a 69 acre site at Southbridge Clark in Prince William
County, VA; a 43 acre site at Hampstead Landing in Prince William County, VA and a 73,000
sq.ft. site on H Street in Washington, D.C. The
bid deadline for the site is October 9. For more information, contact Exchange Partners'
National Sales Center at (800-243-2246). Grubb
& Ellis Commercial Real Estate Services brokered the sale of a 25 acre site in Laguna
Hills, CA to Home Depot USA, Inc. Home Depot
plans to develop a 131,000 sq.ft. store on the site.
The total project's GLA is 215,000 sq.ft. and will include a 41,000 sq.ft. Stater
Bros. supermarket. The project is expected to
open during Spring 1997. For more information, contact Bryon Ward or Jim
Clarkson at (714-937-0881). HRE
Properties recently announced that it has exercised an option to acquire a 117,500 sq.ft.
triple net leased property in Jonesboro, GA for $1. The
property is leased to Value City Department Stores at a starting annual rent of $323,000,
under a long-term lease expiring in January 2012. In
1974, as part of a real property transfer and mortgage transaction, HRE negotiated an
option to purchase the property upon the occurrence of certain non-default related events. There is also a $2 million mortgage recorded
against the property. This claim is being
contested by the property's record owner and is being challenged in court. For more information, contact James Moore at
(203-863-8200). Spectrum
Realty Advisors represented Nationwide Life Insurance Company in the sale of Alpharetta
Square Shopping Center in Alpharetta, GA. The
106,084 sq.ft. project, which is anchored by Bruno's, was acquired by James Creek
Development for $5.555 million. For more information, contact Jon Barry or Joe
Montgomery at (404-252-2288). Food
Tenants Looking for Southeastern Sites Restaurant
Management Services, Inc. trades as Popeye's, Shoney's and Fazoli's at 124 locations in FL
and GA. The restaurants occupy spaces of
1,500 sq.ft. to 6,000 sq.ft. in freestanding facilities.
Plans call for two Shoney's openings, four Popeye's openings and 15 Fazoli's
openings in the coming 18 months. Expansion
will take place in the existing markets. For more information, contact Bill Hickman,
Restaurant Management Services, Inc., 1031 East Fowler Avenue, Tampa, FL 33612;
813-977-2977, Fax 978-1330. Philly
Franchising Co. trades as Philly Connection at 45 locations in FL, GA, KY and NC. The restaurants, which feature cheesesteak
sandwiches and hoagies, occupy spaces of 1,200 sq.ft. in freestanding facilities and strip
centers. Plans call for 20 openings in the
coming 18 months. Expansion will take place
in the existing markets as well as in SC. The
company is franchising. For more information, contact John Pollock, Philly
Franchising Co., 120 Interstate North Parkway East, Atlanta, GA 30339; 404-365-0581, Fax
952-3168. Padow's
Hams and Deli, Inc. trades as Padow's Hams and Deli at four locations in VA. The stores, offering a full line of ham and deli
items, occupy spaces of 2,500 sq.ft. in freestanding facilities, regional malls and strip
centers. Plans call for as many as 25
openings in the coming 18 months. Expansion
will take place in Southeastern region. The
company is franchising. For more information, contact Sidney Padow,
Padow's Hams and Deli, Inc., 4925 West Broad Street, Richmond, VA 23230; 804-358-4267, Fax
355-3213. Prime
Sirloin, Inc. trades as Sirloin Buffet and Western Steer at 98 locations in FL, NC and TN. The restaurants occupy spaces of 10,000 sq.ft. to
11,000 sq.ft. in freestanding facilities and strip centers.
Plans call for 10 openings in the coming 18 months.
Expansion will take place in the Southeastern region. For more information, contact Jim Templeton, Prime
Sirloin, Inc., 101 WSMP Drive, Claremont, NC 28610; 704-459-7626, Fax 459-0733. Giff's
Sub Franchise System, Inc. trades as Giff's Subs at seven locations in FL. The fast food restaurants, featuring steak
sandwiches, soups and salads, occupy spaces of 800 sq.ft. to 1,000 sq.ft. in strip
centers. Growth opportunities are sought in
the existing market. For more information, contact Rick Arnette, Giff's
Sub Franchise System, Inc., 634 Eglin Parkway, Fort Walton Beach, FL 32547; 904-863-9011. Clyde
Bruner Enterprises trades as Krispy Chic at 13 locations in GA. The fast food restaurants occupy spaces of 1,800
sq.ft. to 2,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing
market. For more information, contact Clyde Bruner, Clyde
Bruner Enterprises, Route 3 Box 197A, Metter, GA 30439; 912-354-1197. Biscuitville,
Inc. trades as Biscuitville at 38 locations in NC and VA.
The fast food restaurants, serving breakfast, occupy spaces of 2,400 sq.ft. in
freestanding facilities. Plans call for nine
openings in the coming 18 months. Expansion
will take place in NC. Leases running 15
years are typical. For more information, contact Burney Jennings,
Biscuitville, Inc., PO Box 2600, Burlington, NC 27216; 910-229-6671, Fax 229-5246. Mr.
Gatti's, Inc. trades as Mr. Gatti's at 210 locations in AL, AR, GA, IN, KY, LA, MS, MO,
NC, OH, SC, TN, TX and WV. The restaurants
occupy spaces of 10,000 sq.ft. in freestanding facilities and in-line spaces of strip
centers. Growth opportunities are sought in
the Southeastern region. For more information, contact Tom Ratcliffe, Mr.
Gatti's, Inc., 444 Sidney Baker South, Kerrville, TX 78028; 210-257-2000, Fax 257-2003. Sub
Station II, Inc. trades as Sub Station II at 95 locations throughout the Southeastern
region and in CA. The restaurants, serving
submarine and deli-style sandwiches, occupy spaces of 1,500 sq.ft. to 1,800 sq.ft. in
freestanding facilities, regional malls and strip centers.
Plans call for 20 openings in the coming 18 months.
Expansion will take place in the existing markets.
The company is franchising. For more information, contact Susan Vaden, Sub
Station II, Inc., PO Drawer 2260, Sumter, SC 29150; 803-773-4711, Fax 775-2220. Zesto
Snack Shops, Inc. does business as Zesto's at eight locations in GA. The fast food restaurants occupy spaces of 3,100
sq.ft. in freestanding facilities. Plans call
for one opening in the coming 18 months. Expansion
will take place in the existing market. For more information, contact Lee J. Livaditis,
Zesto Snack Shops, Inc., 2963 Piedmont Road, Atlanta, GA 30305; 404-261-4497, Fax
261-1409. Lead
Sheet Michael's
Stores, Inc. dba
Michaels Arts & Crafts Becky
Palko 8000
Bent Branch Irving,
TX 75063 214-409-1477,
Fax 409-1576 Arts
& Crafts The
446-unit chain operates locations throughout North America and in Puerto Rico. The stores, selling arts, crafts, silk floral
arrangements, wedding supplies, party supplies, home decor items as well as offering
custom framing services, occupy spaces of 18,500 sq.ft. to 23,000 sq.ft. in freestanding
facilities, power and strip centers. Plans
call for as many as 45 openings in the coming 18 months.
Expansion will take place nationwide. Baptist
Book Store Mark
Miller 127
Ninth Avenue North Nashville,
TN 37234 615-251-2039,
Fax 251-3677 Books The
63-unit chain operates locations nationwide. The
stores, selling religious books, occupy spaces of 4,000 sq.ft. to 12,000 sq.ft. in
freestanding facilities, regional malls and strip centers.
Plans call for five openings annually. Expansion
will take place nationwide with a concentration in the Southeastern and Southwestern
regions. Hastings
Books, Music and Video Tim
Hoelscher PO Box
35350 Amarillo,
TX 79120-3530 806-351-2300 Books The
110-unit chain operates locations west of the Mississippi River. The stores, selling books, music, videos and
computer software, occupy spaces of 18,000 sq.ft. to 30,000 sq.ft. in freestanding
facilities and strip centers. Growth
opportunities are sought nationwide. E-Z
Shop Co., Inc. dba
E-Z Shop Susie
Frisby 1414
West Sixth Street Lawrence,
KS 66044-1701 913-838-9400,
Fax 838-9066 Convenience The
29-unit chain operates locations in KS and MO. The
convenience stores occupy spaces of 2,400 sq.ft. to 3,500 sq.ft. in freestanding
facilities and strip centers. Plans call for
eight openings in the coming 18 months. Expansion
will take place in IA, KS, MO and NE. Circuit
City Stores, Inc. dba
Circuit City Ben
Cummings 9950
Mayland Drive Richmond,
VA 23233 804-527-4000,
Fax 527-4186 Electronics The
400-unit chain operates locations nationwide. The
consumer electronics stores occupy spaces of 32,000 sq.ft. in freestanding facilities,
regional malls and strip centers. Growth
opportunities are sought nationwide. Graham
Brothers Entertainment, Inc. dba
Denim And Diamonds, Rocking Rodeo, Grand
Central Station, Park Place Jimmy
Cooper 6201
Andrews Highway Odessa,
TX 79762 800-554-4372,
Fax 915-362-9456 Entertainment The
25-unit chain operates locations in AZ, FL, LA, OK, TN and TX. The restaurants and entertainment facilities
occupy spaces of 20,000 sq.ft. in freestanding facilities, regional malls and strip
centers. Parking for 1,000 cars is required. Plans call for six openings in the coming 18
months. Expansion will take place in the
existing markets. Regal
Cinemas Keith
Thompson 7132
Commercial Park Drive Knoxville,
TN 37918 423-922-1123,
Fax 922-3188 Entertainment The
117-unit chain operates locations nationwide. The
movie theaters occupy spaces of 30,000 sq.ft. in freestanding facilities. Growth opportunities are sought nationwide. Dollar
Tree Stores, Inc. dba
Dollar Tree, Only $1, Dollar Bills David
Thomas 2555
Ellsmere Avenue Norfolk,
VA 23501-2500 804-857-4600,
Fax 857-5240 General
Merchandise The
740-unit chain operates locations from NY to FL and from MN to TX. The stores, selling general merchandise at the
fixed price-point of $1, occupy spaces of 4,000 sq.ft. in regional malls, power and strip
centers. Plans call for 100 openings during
1996 and 140 openings during 1997. Expansion
will take place in the existing markets. Diet
Center World Wide, Inc. dba
Diet Center Greg
Vosler 395
Springside Drive Akron,
OH 44333 800-656-3294,
Fax 216-666-2197 Health
& Fitness The
500-unit chain operates locations nationwide. The
concept, offering weight control programs and products, occupy spaces of 1,000 sq.ft. in
strip centers and semi-professional buildings. Growth
opportunities are sought nationwide. The
company is franchising. All
American Sign Shops dba
American Sign Shop Jeff
Fox 208
Snow Avenue Raleigh,
NC 27603 800-966-2700,
Fax 919-834-5333 Service The
38-unit chain operates locations throughout the Eastern region and in CO. The stores, offering computer generated vinyl
signs, occupy spaces of 1,200 sq.ft. in freestanding facilities and strip centers. Plans call for 10 openings in the coming 18
months. Expansion will take place in the
Eastern region with plans to move west toward the Rocky Mountains. The company is franchising. Mail
Boxes Etc. USA, Inc. dba
Mail Boxes Etc. Sight
Selection Department 6060
Cornerstone Court West San
Diego, CA 92121 619-455-8972,
Fax 546-7488 Service The
3,000-unit chain operates locations nationwide. The
stores, offering postal, business and communication services and supplies, occupy spaces
of 900 sq.ft. to 1,500 sq.ft. in downtown store fronts, freestanding facilities and strip
centers. Plans call for 400 openings in the
coming 18 months. Expansion will take place
worldwide. Fleet
Feet, Inc. dba
Fleet Feet Sports Tom
Raynor 2311 J
Street Sacramento,
CA 95816 916-557-1000,
Fax 557-1010 Shoes The
30-unit chain operates locations in CA, GA, MD, NV, OR, TX, VA and WA. The stores, selling sports-oriented shoes and
apparel, occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in strip centers. Growth opportunities are sought in the existing
states. Beverages
& More Matthew
Alexander 1470
Enea Circle, Suite 1600 Concord,
CA 94520 415-474-6100,
Fax 771-1115 Specialty The
eight-unit chain operates locations in CA. The
stores, selling alcoholic beverages, occupy spaces of 16,000 sq.ft. to 18,000 sq.ft. in
freestanding facilities and power centers. Plans
call for 15 openings in the coming 18 months. Expansion
will take place in FL, LA and NV. Preferred
demographics include a population of 350,000 within 10 miles. Leases running 10 years are typical. Earl
May Seed & Nursery Larry
Gore 208
North Elm Street Shenandoah,
IA 51603 712-246-1020,
Fax 246-2210 Specialty The
54-unit chain operates locations in IA, KS, MO and NE.
The stores, selling pet, garden and feed supplies, occupy spaces of 8,000 sq.ft. to
10,000 sq.ft. in freestanding facilities. Plans
call for two openings in the coming 18 months. Expansion
will take place within the existing markets. United
Check Cashing Co., Inc. Seth
Schonberg 325
Chestnut Street, Suite 1005 Philadelphia,
PA 19106 215-238-0300,
Fax 238-9056 Specialty The
69-unit chain operates locations in DE, FL, GA, MD, MA, NJ, OH and PA. The stores, offering check cashing and money order
services, occupy spaces of 1,200 sq.ft. in freestanding facilities and strip centers. Preferred anchors include Kmart and Wal*Mart. Plans call for 36 openings in the coming 18
months. Expansion will take place in KY, IN,
TN and VA. Preferred demographics include a
population of 75,000 within three miles earning $50,000 as the median household income. The company, which is franchising, typically signs
leases running five years, with two options running five years each. The
Great Train Store Corp. Mike
Glazer 11726
Serama St.
Louis, MO 63131 314-965-4512,
Fax 821-5072 Toys The
29-unit chain operates locations in CA, NV, TX, MO, IN, OH, LA, NC, SC, VA, MA, PA, NY and
Washington, D.C. The stores, selling model
trains, occupy spaces of 1,800 sq.ft. in regional malls and specialty centers. Plans call for 24 openings in the coming 18
months. Expansion will take place nationwide. Preferred demographics include a population of
500,000 within 10 miles earning $40,000 as the average income. Big
Planet Video, Inc. dba
Big Planet Video R.
Westbrook c/o
Milestone Assoc. 2150
Washington Avenue Newton,
MA 02162 617-964-0066,
Fax 964-8844 Video The
five-unit chain operates locations in MA. The
video stores occupy spaces of 5,000 sq.ft. to 7,000 sq.ft. in freestanding facilities and
end cap spaces of strip centers. Preferred
anchors include supermarkets. Plans call for
at least 15 openings in the coming 18 months. Expansion
will take place throughout New England. Preferred
demographics include 10,000 households within three miles earning $30,000 as the average
income. Space
Place Alabama Mobile- Theodore Dawes Plaza Shopping Center is anchored
by Delchamps, K&B and Family Dollar. The
122,650 sq.ft. project has a total of 8,800 sq.ft. available for lease. For details, contact Brandywine Real Estate
Management Services Corp. at (334-476-2003). Florida Arcadia- U.S.A. Shoppes is anchored by Wal*Mart, Food Lion,
Scotty's and Dollar Tree. The 130,000 sq.ft.
project has spaces available for lease. In
Pensacola- Forest Oaks Plaza is anchored by
Food World and Dollar General. The 115,000
sq.ft. project has spaces available for lease. For details, contact Thomas Mirandi of Win
Properties, Inc. at (203-861-7788). Fern
Park- A 116,805 sq.ft. freestanding building
is available for lease at Fern Park Shopping Plaza which is anchored by Fabri-Centers. In Tampa- Columbus
Plaza Shopping Center is anchored by Kash 'N Karry and Eckerd Drug. The 155,000 sq.ft. project has spaces available
for lease. In Temple Terrace- Temple Terrace Shopping Center is anchored by
Kash 'N Karry and T.J. Maxx. The 106,767
sq.ft. project has spaces available for lease. For details, contact MaryAnn Savarese of RD
Management Corp. at (212-265-6600). Georgia Augusta- A 4,830 sq.ft. space is available for lease. In Madison- An
8,450 sq.ft. space is available for lease. In
Perry- A 7,500 sq.ft. space is available for
lease. For details, contact Jim Matthews of Prime
Locations at (214-991-7000). Kentucky Ashland- Greenup Shopping Center is anchored by Watson's
and Kroger. The 268,000 sq.ft. project has an
anchor position available for lease. In
Richmond- Richmond Plaza is anchored by
Blockbuster Video and Ace Hardware. The
89,740 sq.ft. project has spaces available for lease. For details, contact MaryAnn Savarese of RD
Management Corp. at (212-265-6600). Covington- A 15,625 sq.ft. space is available for lease. In Owensboro-
A 10,069 sq.ft. space is available for lease.
In Princeton- A 7,500 sq.ft. space is
available for lease. For details, contact Jim Matthews of Prime
Locations at (214-991-7000). North
Carolina Cary- Crossroads Plaza Shopping Center is anchored by
Toys 'R Us, Service Merchandise and Marshalls. The
650,000 sq.ft. project has a 43,005 sq.ft. former Hechinger store with a 26,082 sq.ft.
yard/expansion area available for lease. In
Greensboro- A 104,170 sq.ft. former
Hechinger store with a 15,300 sq.ft. yard/expansion area is available for lease on
Highpoint Road and Merritt Drive. In
Winston-Salem- A 104,200 sq.ft. former
Hechinger store with an 18,200 sq.ft. yard/expansion area is available for lease in North
Point Boulevard and University Parkway. For details, contact Roger Wright of Hechinger's
at (301-925-3006). Raleigh- North Raleigh Retail Center has an anchor position
available for lease. The 90,500 sq.ft.
project is located across from a future regional mall site. For details, contact Thomas Mirandi of Win
Properties, Inc. at (203-861-7788). South
Carolina Little
River- Little River Shopping Center is
anchored by Food Lion. The 46,000 sq.ft.
project has a pad site and a 12-acre expansion area available for lease. For details, contact David Rosen of Rosen
Associates Management Corp. at (516-822-5350). Real
Estate Professionals Making The News PM
Realty Group (312-944-2800) announces the appointment of Terrell R. Marks as vice
president of retail operations in FL. Marks
will be responsible for developing and expanding the retail operations in FL. This includes securing retail centers for leasing
and management, representing national retail tenants for site selection and evaluating
retail development and asset acquisition opportunities.
The company also announces the appointment of Dolores Reis as general manager of
retail properties in the Midwest/Northeast Division.
Reis will be responsible for overseeing and coordinating all property management
and leasing activity for five Kmart shopping centers, totaling 650,000 sq.ft., located in
the Springfield, MA area. Grubb
& Ellis of Metropolitan Washington, D.C. (703-918-0250) recently promoted Candice
Fazakerley, Thomas Rogers, Jr. and John Asadoorian to senior vice presidents and named
them members of the executive committee. Hiffman
Shaffer Associates (312-332-3555) announces that Robert J. Swierbut has joined the company
as an associate in the retail brokerage group. Prior
to joining HSA, he was an account supervisor for NutraSweet at Ogilvy & Mather in
Chicago, IL. As a senior account executive at
DiMeo Rosen Partners, Inc. in Chicago, he worked on special projects involving advertising
and marketing strategies for Motorola, Jiffy Lube, Wendy's, Chicago White Sox and the
Chicago Bears. He currently represents Video
Update, Heilig Meyers and Sears Hardware. The
Coffee Beanery, Ltd. (810-733-1020) recently appointed Julius L. Shaw as Chairman of the
Board; Michael O. Foy as regional vice president of operations and Mark Jameson as vice
president of operations. Faison
Orlando (407-425-9700) has promoted John Crossman to director of retail leasing. In 1995, he was cited for handling the most
transactions at Faison Orlando. Bayer
Properties (205-939-3111) announces that Jason Stanley has joined the company as an
associate broker. The company also announces
that Stephen Phillips has joined the company as vice president of design and construction. Nordstrom's
(206-628-2111) announces the retirement of Raymond A. Johnson, co-chairman. He has been with the company since 1969. The
Cato Corporation (704-554-8510) announces the appointment of John P. Derham as vice
chairman and chief operating officer. The
company also announces the promotion of Alan E. Wiley to senior executive vice president,
chief financial and administrative officer. J.J.
Herman & Associates (216-663-0088) announces that it has merged with Kopper Associates
Realty with Paul E, Kopper, principal, joining J.J. Herman & Associates as a senior
account executive. Levin
Management Corp. (908-755-2401) announces that Matthew K. Harding has been appointed
senior vice president/deputy chief operating officer for the company. Harding's responsibilities include directing all
marketing and leasing activities for the company's 55 retail projects. His new position also involves supervising
management and administration of the company. Financial
News... Shoe
Carnival, Inc. (812-867-4105) reported that its second quarter net income increased 42% to
$891,000 from $625,000 during the second quarter last year.
Net sales for the quarter increased four percent to $57.6 million from $55.5
million last year, and comparable store sales fell three percent. During the quarter, the company opened two stores
and closed two stores and currently operates 93 units throughout the Midwestern and
mid-southern regions. Garden
Ridge Corporation (713-579-7901) reported that its second quarter net sales increased 69%
to $45.116 million from $26.65 million last year. However,
comparable store sales fell two percent. Net
income increased 50% to $679,000 from $453,000 last year.
The company, which currently operates 16 stores in FL, KY, MO, NC, OK, TN and TX,
plans to open six stores during the next nine months. Deb
Shops, Inc. (215-676-6000) reported that its second quarter net sales increased to $48.459
million from $42.316 million. The company
also reported a net loss of $1.651 million as compared to a net loss of $1.652 million
last year. The company currently operates 299
specialty apparel stores in 37 states as well as 13 book stores in three states. Phar-Mor,
Inc. (216-746-6641) reported that its fiscal 1996 net income was $3.33 million, down from
$7.61 million reported for FY95. Sales were
$1.056 billion, down from $1.107 billion last year with comparable store sales down 4.6%
for the year. The company currently operates
102 drug stores in 18 states. Lechters,
Inc. (201-481-1100) reported a net loss of $2.828 million for its second quarter compared
to a net loss of $1.866 million during the second quarter last year. Second quarter sales increased 4.6% to $92.727
million, with sales in its Lechters Housewares division up four percent and sales in its
Famous Brands Housewares Outlets up 6.3%. On
a comparable store basis, Lechters comp store sales increased 0.6% while declining 4.4% in
the Famous Brands Housewares division. During
the second quarter, the company opened three stores and closed one. The company currently operates 485 Lechters
Housewares stores and 158 Famous Brands Housewares Outlets. Sports
& Recreation, Inc. (813-886-9688) reported that sales for its second quarter increased
35% to $169 million from $124.9 million during the second quarter last year. Comparable store sales increased eight percent for
the quarter. The company currently operates
85 large-format sporting goods stores in 29 states. Jitney-Jungle
Stores of America, Inc. (601-949-5468) reported that its first fiscal quarter sales
increased slightly to $282.2 million from $280.2 million during the first quarter last
year. Comparable store sales fell 0.7% for
the quarter. The company currently operates
104 supermarkets and 49 gasoline stations throughout AL, AR, FL, LA, MS and TN. Jay
Jacobs (206-622-5400) recently announced that it has put its expansion plans to hold due
to declining sales which are putting the company's liquidity under pressure. Eckerd
Corporation (813-399-6355) reported that its second quarter earnings increased 36.3% to
$16.5 million from $12.1 million during the second quarter last year. Second quarter sales increased 10% to $1.3 billion
from $1.1 billion last year with comparable store sales up 7.1% for the quarter. The company currently operates 1,725 drug stores
in 13 states and 533 Eckerd Express one-hour photo labs in 11 states. Bob
Evans Farms, Inc. (614-492-4954) reported that its first fiscal quarter sales increased
four percent to $213.1 million from $205.9 million during its first quarter last year. However, net income decreased 38% to $8.9 million
from $14.4 million. Comparable restaurant
sales fell 3.2% for the quarter. During the
quarter, the company opened five "small-town" restaurants and currently operates
390 units nationwide. Plans call for as many
as 30 openings during the remainder of its fiscal year. Fred
Meyer, Inc. (503-232-8844) reported that net sales for its second quarter increased 10.2%
to $853.9 million from $774.7 million during the second quarter last year. Comparable store sales increased 2.9% overall,
with comparable food sales up 5.1% and comparable non-food sales up 1.3%, for the quarter. Second quarter net income increased 42.2% to $15.2
million from $10.7 million. The company
currently operates 213 stores, 100 of which are multi-department stores with food
departments and the balance are specialty stores (including 100 jewelry stores) in AK, CA,
ID, MT, OR, UT and WA. |