Issue 44 for the week of December 11, 1996

The Dealmakers Issue Number 44 for the week of December 11, 1996.

My Way by Ted Kraus

I was reading an article in a computer trade publication the other day reporting on Compuserves's new strategy to "survive" now that the on-line universe has become so competitive. Without going into the details of what, where and why regarding Compuserve's new philosophy, it reported that they had hired a high powered and extremely expensive management consulting firm to "poke holes in their new strategy." They're going to spend hundreds of thousands of dollars to prove themselves wrong before spending millions to implement the programs...smart company.

That got me thinking, business has been slow lately and I've been trying to find a new niche to market our consulting firm. This is it, professional "hole puncher/nit picker." Now here's a field where I'm truly an expert, especially with my personality. I can easily find all the negative aspects of a deal. I've been preparing myself for this venture my entire life and I won't require hundreds of thousands of dollars as a consulting fee, $5,000 to $10,000 will be just fine, thank you.

Think about it, our industry truly needs this type of professional. Everyone else is a "seller" (except the lawyers, of course, they're my only real competition for professional deal killers). The developer "sells" the retailer's rep or broker. The broker "sells" the retailer's real estate person. The companies' real estate rep "sells" his committee and the committee "sells" the president. Or, in the case of acquisitions, the seller "sells" the buyer who then "sells" his money partners who then "sells" their financing source. Everyone is selling someone to make the deal...which is good, but we as an industry might need an objective Hole Puncher. That way there be a lot less "bad" deals around.

The companies' leasing person isn't that objective, they "need" the deals, since they've been told to open "X" stores this year or they're in trouble. The operations people "need" the deals to grow their staff, have more power and justify raises, and the president "needs" the deals to show Wall Street they're growing and going. Of course Wall Street has to "sell" the investors, but that's easy most of the time, at least right now. The same is true in acquisitions, the buyer "needs" the deals to either pay for their last mistake, cover their overhead or keep their money partners happy and "loyal."

Now this is where the professional "Hole Puncher" comes in, (who's paid by either Wall Street, the financial institution, retailer or money partners. This would be the person protecting their best interests). Unfortunately, while a lot of what I just said is with "tongue in cheek" it's all true, but it won't happen. Our industry wants deals, good, bad or indifferent, it doesn't matter as long as a deal is in process. That's how we earn our living, eat and develop our self worth. Without "deals," we're dead. So better to do a bad deal than no deal seems to be our standard operating procedure. (In case you haven't guessed, I was just involved in a deal that makes no sense.)

On a different topic, one that I have addressed numerous times but still upsets me whenever I encounter this type of greed/stupidity I just got off the phone with another broker representing a potential retailer for a center we're marketing. After the initial discussion of who the tenant is and the rent, I said that our commissions is $2.50 psf, which we'll split. I was told that was unacceptable. The retailer has an exclusive broker in Texas, who gets half the commission (with a minimum of $2 psf). That broker appointed an exclusive broker for the state, who gets half of the remaining commission and that exclusive broker for the state appointed an exclusive broker for a section of the state and they get half the remaining commission. So under my offer, (forgetting that the "main" exclusive broker wants a minimum of $2. psf which would take almost all the money in the deal) the commission I'm offering him is 25 cents a foot (his share) or $8,150 which he considered unacceptable (and I agree).

I'm not anti-exclusive brokers, but this is insanity. First, why would a public company appoint an exclusive broker in Texas to handle Connecticut? (Candidly, there is really no need for a national exclusive broker for larger chains, all they do is coordinate deals, the regional does the work so the appointment is not made because of need, but because of friendship). It can't be that they feel he knows the market intimately. And it isn't that they don't have their own people, they do, three to be precise. Then to further complicate matter; the TX broker, because he, she or it doesn't want to work, appoints a state broker, which makes sense, but the state broker appoints two other exclusive brokers and the retailer only wants five deals for the entire state. One firm could easily do the entire market. Connecticut is not Texas or California where it's physically impossible to cover the entire state, Connecticut is small (nothing personal CT).

The broker I dealt with said I'd have to add more commission to the rent. Since I had already quoted a rent that was $3 higher than it "had" to be, I asked if the tenant would live with a $19 rent (that's $4 higher than it should be)? I was told yes. Now let's figure this out. The tenant wants five stores in the state, saying I'm not better or worse than the next guy when it comes to rent negotiations, that means they are paying roughly $120,000 per year per store or $1.2 million in unnecessary rent over the initial term per store (not counting bumps). Multiply this times five (for the state) and that's six million dollars for one state. Using the same formula, the retailer contends they want 35 stores this year alone. That's 27 million dollars in extra rent they don't have to pay. That's just for this year's expansion. Keen Realty has a future customer in the making.

So I don't get the exclusive brokers totally upset, yes, I admit and concede there's some extremely competent exclusive brokers out there that know their market inside and out and beat up the developer for the best deal they can get for the client (which is the way it should be). In most cases, their commission is "fair" (whatever that means), but they are becoming a smaller minority everyday. While every indication is that we'll have an excellent Christmas (retailers I'm talking to are up in comparable sales for the year so far, 5% to 10%), I'm willing to bet the country will be in a recession by May (Clinton and Congress are no longer campaigning and therefore not pumping the economy). With higher rents than their volumes can justify, in less than a year we'll see a lot of bankruptcies and more store closings, so to PMA, if I was a retailer I'd be fighting for lower rents and some exclusive brokers don't accomplish that.

Parting thought...While I normally don't comment on rumors, by the time this is printed (two weeks from when I'm writing it) the validity of the rumor that KKR is trying to buy Kmart should be known. Normally, I'm opposed (not that anyone cares) to takeovers by companies like KKR (they rarely add value to what they acquire, just fees), but in this case, it might make sense. Kmart, as a retailer, needs a kick in the butt. It was great and has the potential to be great again (a lot like Congress), but it can't seem to get its act together. KKR by its very nature will force them to do it, maybe just the "threat" of a KKP will be enough.

Retailers Seeking Sites Throughout PA, NJ and DE

CVS trades as CVS Pharmacy at more than 1,400 locations in CT, GA, ME, MA, MD, NH, NJ, NY, PA, RI, VA and VT. The drug stores occupy spaces of 8,000 sq.ft. to 11,000 sq.ft. in freestanding facilities. Plans call for 115 openings in the coming 18 months. Expansion will take place within the existing markets. Preferred demographics include a population of 18,000 within one mile. The company also recently announced plans to enter the Charlotte, NC and Columbia, SC markets during late 1997. As many as 50 stores are planned for the Charlotte market and as many as 20 stores are planned for the Columbia market.

For more information, contact Dennis McMullen, CVS, One CVS Drive, Woonsocket, RI 02895; 401-765-1500, Fax 769-6593.

Boscov's Department Stores trades as Boscov's at 28 locations in DE, MD, NJ, NY and PA. The department stores occupy spaces of 130,000 sq.ft. to 160,000 sq.ft. in regional malls. Growth opportunities are sought in the existing markets.

For more information, contact Dan Hurwitz, Boscov's Department Stores, 4500 Perkiomen Avenue, Reading, PA 19606; 610-779-2000, Fax 370-3770.

Archie Jacobson of NJ, Inc. trades as Quails and Archie Jacobson at 22 locations in NJ, NY and PA. The men's apparel stores occupy spaces of 3,500 sq.ft. to 4,500 sq.ft. in regional malls. Growth opportunities are sought in the existing markets.

For more information, contact Peter Jacobson, Archie Jacobson of NJ, Inc., 900 Corporate Court, South Plainfield, NJ 07080; 908-755-9400, Fax 755-9827.

Bryn Mawr Stereo & Video operates 13 locations in DE, MD, NJ and PA. The electronics stores, specializing in audio and video equipment for the home and car, occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in freestanding facilities and strip centers. Plans call for at least four openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Steve Lokoff, Bryn Mawr Stereo & Video, 320 Henderson, King of Prussia, PA 19406; 610-878-3700, Fax 878-3000.

Aid Auto Stores, Inc. trades as Aid Auto Stores at 80 locations in NJ and NY. The automotive parts and accessories stores occupy spaces of 4,000 sq.ft. to 7,000 sq.ft. in freestanding facilities and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Bruce Zisken or Greg Stephen, Aid Auto Stores, Inc., 275 Grand Boulevard, Westbury, NY 11590; 516-338-7889, Fax 338-4643.

U.S. Factory Outlets, Inc. trades as U.S. Factory Outlets at 24 locations nationwide. The stores, selling closeout merchandise, occupy spaces of 30,000 sq.ft. to 52,000 sq.ft. in regional malls, power and strip centers. Plans call for six openings during 1997 and eight openings during 1998. Expansion will take place 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.

Bunnies Children's Department Store operates six locations in NJ and NY. The stores, selling children's apparel and shoes as well as juvenile furniture, occupy spaces of 15,000 sq.ft. to 25,000 sq.ft. in regional malls, power, speciality and strip centers. Preferred anchors include Caldor, Kmart, Marshalls and T.J. Maxx. Growth opportunities are sought in the existing markets. Preferred demographics include a population of 125,000 within five miles earning $25,000 as the average income.

For more information, contact Alan Goldstein, Bunnies Children's Department Store, c/o Goldstein Group, 2100 Route 208, Fairlawn, NJ 07410; 201-703-9700, Fax 703-9678.

Convenient Food Mart Development Corp. trades as Convenient Food Mart at 38 locations in OH, PA and WV. The convenience stores occupy spaces of 3,500 sq.ft. in freestanding facilities. Plans call for six openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Greg Desantis, Convenient Food Mart Development Corp., 3642 Jacob Street, Wheeling, WV 26003; 304-232-3060, Fax 233-4686.

Weiss Markets does business as Mr. Z's at 18 locations in PA. The supermarkets occupy spaces of 32,000 sq.ft. in neighborhood strip centers. Growth opportunities are sought in the existing market.

For more information, contact Stanley Zuba, Weiss Markets, PO Box 668, Stroudsburg, PA 18360; 717-421-4411, Fax 421-4690.

Charles Becker & Brother trades as Teacher's Showroom at six locations in NJ and PA. The stores, selling school supplies and educational toys, occupy spaces of 6,000 sq.ft. to 7,000 sq.ft. in power centers. Preferred anchors include national tenants. Plans call for as many as seven openings in the coming 18 months. Expansion will take place in the existing markets as well as in MD and Washington, D.C. Preferred demographics include a population of 200,000 within five miles earning $50,000 as the average income. Leases running five years are typical.

For more information, contact David Vender, c/o Equity Properties, 1990 Sproul Road, Broomall, PA 19008; 610-353-6300, Fax 353-9256.

Bagelsmith Convenience Stores operates 23 locations in NJ and PA. The convenience stores occupy spaces of 1,800 sq.ft. to 2,000 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 in the existing markets.

For more information, contact Wayne Smith, Bagelsmith Convenience Stores, 37 Van Syckel Road, Hamton, NJ 08827; 908-730-8600, Fax 730-8165.

Simons Millinery Marts, Inc. does business as Knit Wit at four locations in NJ and PA. The apparel stores occupy spaces of 2,000 sq.ft. in regional malls and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Robert Brandt, Simons Millinery Marts, Inc., 128 South 17th Street, Philadelphia, PA 19103; 215-569-9511, Fax 963-0111.

Busy Beaver Building Centers trades as Busy Beaver at 12 locations PA. The home improvement stores occupy spaces of 32,000 sq.ft. in freestanding facilities and strip centers. Plans call for one opening in the coming 18 months. Expansion will take place in the Pittsburgh, PA market.

For more information, contact Chuck Bender, Busy Beaver Building Centers, 3130 William Pitt Way, Building A6, Pittsburgh, PA 15238; 412-828-2323, Ext. 313, Fax 828-2430.

International Flea Market operates four locations in NJ and PA. The indoor flea markets occupy spaces of 85,000 sq.ft. to 125,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 300,000 within five miles earning $40,000 as the average income. Leases running 10 years are typical.

For more information, contact Ted Kraus, International Flea Market, c/o TKO Real Estate Advisory Group, Inc., PO Box 2630, Mercerville, NJ 08690; 609-587-6200, Fax 587-3511.

Cogo's Co. trades as Cogo's Stores at 58 locations in PA. The convenience stores occupy spaces of 2,400 sq.ft. in freestanding facilities and strip centers. Plans call for one opening in the coming 18 months. Expansion will take place in the existing market. Leases running five to 10 years are typical.

For more information, contact Bob Helmstadter, Cogo's Co., 2589 Boyce Plaza Road, Pittsburgh, PA 15241; 412-257-1550, Fax 257-8114.

Allied Hobbies, Inc. trades as Allied Hobbies at 10 locations in NJ and PA. The stores, selling hobby kits, arts and crafts, trains, etc., occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in regional malls. Plans call for one opening in the coming 18 months. Expansion will take place within the existing markets.

For more information, contact Bernard Cohen, Allied Hobbies, Inc., 3195 Tucker Road, Bensalem, PA 19020; 215-639-7247, Fax 639-0703.

U.S. World operates two locations in NJ. The men's apparel stores occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in regional malls. Growth opportunities are sought in the existing market.

For more information, contact Jay Jung, U.S. World, 2858 Kennedy Boulevard, Jersey City, NJ 07306; 201-653-9577, Fax 653-5558.

Carlos R. Leffler, Inc. does business as CR's Friendly Markets at 54 locations in PA. The convenience stores occupy spaces of 2,800 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market.

For more information, contact John Byler, Carlos R. Leffler, Inc., 225 East Main Street, Richland, PA 17087; 717-866-2105, Fax 866-7291.

Easy Pickins, Inc. trades as Easy Pickins at 20 locations in NJ, NY and PA. The women's apparel stores, which also sell shoes and accessories, occupy spaces of 3,500 sq.ft. in regional malls and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Alan Warshak, Easy Pickins, Inc., 160 West 34th Street, New York, NY 10001; 212-695-4540, Fax 239-4735.

Big V Supermarkets, Inc. trades as ShopRite at 32 locations in NJ, NY and PA. The supermarkets occupy spaces of 32,000 sq.ft. to 60,000 sq.ft. in freestanding facilities, power, specialty and strip centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Timothy Flanagan, Big V Supermarkets, Inc., 176 North Main Street, Florida, NY 10921; 914-651-4411, Fax 651-8354.

New Construction

Fidelity Land Development Corp. is currently developing East Windsor Towne Center in East Windsor, NJ. The 200,000 sq.ft. power center is anchored by a 75,000 sq.ft. ShopRite supermarket and a 16 plex Magic Cinema. Spaces up to 20,000 sq.ft. are available. The company plans to develop Watchung Square in Watchung, NJ. The 750,000 sq.ft. project will be anchored by Home Depot, Target and Regal Cinemas. Spaces from 5,000 sq.ft. to 45,000 sq.ft. are available.

For more information, contact Charles Louria, Vince Casiero or Joseph Morris at Fidelity Land Development Corp. at (201-966-2800).

Wolfson Group, Inc. recently opened Hilltown Crossings in Hilltown Township, PA. The 260,000 sq.ft. project is anchored by Wal*Mart, Super G, Encore Books, Fashion Bug and McDonald's. The company is developing The Bridge in Abington Township, PA. The 150,000 sq.ft. project is anchored by Acme Market, HomePlace, Thrift Drug and Applebees Restaurant. An April 1997 opening is planned. The company is developing Richland Crossings at Richland Township, PA. The 300,000 sq.ft. project is anchored by Wal*Mart, Acme Markets, Magic Cinemas and Applebees Restaurant. A Fall 1997 opening in planned. Wolfson Group is also developing Almonesson Crossings in Deptford Township, NJ. The 202,500 sq.ft. project is anchored by Wal*Mart and a bookstore. A Fall 1997 opening is planned. Lastly, the company is also developing Exton Crossings in Exton Township, PA. The project is anchored by Wal*Mart and Sam's Club. A Fall 1998 opening is planned.

For more information, contact Thomas Verrichia of Wolfson Group, Inc. at (610-277-8899).

The Mills Corporation recently signed an agreement with Monee Associates, LLC to develop Monee Mills in Monee, IL. The project will be situated on 528 acres of land adjacent to I-57 and will be similar to the The Mills Corporation's 1.7 million sq.ft. Gurnee Mills in Gurnee, IL. The mall will feature up to 20 anchors, 200 specialty stores, a movie theater and restaurants. Off 5th-Saks Fifth Avenue Outlet is the first tenant to commit to the project. The mall is expected to open during late 1998 or Spring 1999. The company plans to break ground next month on City Mills at Orange in Orange, CA. The 811,909 sq.ft. project will be anchored by a 110,000 sq.ft., 30-screen AMC Theater, a 35,000 sq.ft. Off 5th-Saks Fifth Avenue Outlet and Sports Authority. Space for approximately 200,000 sq.ft. of additional anchor tenants as well as more than 225,000 sq.ft. of specialty tenant space will also be constructed as will 79,000 sq.ft. of space for restaurants and a food court. A Fall 1998 opening is planned. The company also announced several anchors for its Meadowlands Mills project it plans to develop. Announcing plans to anchor the project were Off 5th-Saks Fifth Avenue Outlet, The Sports Authority, Burlington Coat Factory, Bed Bath & Beyond, Group USA, Off Rodeo Drive Beverly Hills, T.J. Maxx, Waccamaw and The Wiz. In addition, Ogden Entertainment, DeBartolo Entertainment and Virgin Entertainment Group plan to jointly develop an entertainment concept that will occupy 600,000 sq.ft. at the project. In addition, Rainforest Cafe announced plans to open a restaurant at the site. Recently, Mills Corp. opened its 1.7 million sq.ft. Ontario Mills project in Ontario, CA. The supermall is anchored by AMC 30 Theaters, American Wilderness Experience, Bed Bath & Beyond, Burlington Coat Factory, Dave & Buster's, Foozles, Group USA, iWERKS Theater, J.C. Penney Outlet Store, Marshalls, Mikasa Factory Store, Off 5th-Saks Fifth Avenue Outlet, Off Rodeo Dr. Beverly Hills, The Sports Authority, TJ Maxx, Totally 4 Kids, Virgin Megastore and Wolfgang Puck Cafe. Space for more than 200 specialty stores was also constructed. The mall was constructed in a racetrack design that is nearly one mile around.

For more information, contact The Mills Corporation at (703-526-5000).

National Realty & Development Corp. recently broke ground on Pohatcong Plaza in Phillipsburg, NJ. The 300,000 sq.ft. project will be anchored by a 124,000 sq.ft. Wal*Mart, a 60,000 sq.ft. Giant Supermarket and a 30,000 sq.ft. Toys 'R Us. Space for additional retailers and restaurants will also be constructed. The site is expected to open during Fall 1997.

For more information, contact National Realty & Development Corp. at (1-800-932-7368).

Financial News...

Mothers Work, Inc. (215-873-2200) reported that net sales for its fiscal year increased 88% to $199.18 million from $106 million last year. Net income for the year was $903,766 compared to a net loss of $6.6 million last year. The company ended its fiscal year with 494 stores trading as Motherhood Maternity, Mothers Work, Mimi Maternity, Maternity Works, A Pea in The Pod and Episode.

Pep Boys--Manny, Moe & Jack (215-229-9000) reported that sales for its third quarter increased 16% to $478.819 million from $411.787 million during the third quarter last year. Earnings increased 30% to $27.777 million from $21.436 million and comparable store sales increased five percent. During the quarter, the company opened 15 Supercenters and eight Parts USA stores and currently operates 561 stores, 59 of which are Parts USA stores, nationwide. The company plans to open 43 stores during its fourth fiscal quarter.

Manhattan Bagel Company, Inc. (908-544-0155) reported that its third quarter sales were $23.9 million, a 111% increase over last year's results of $11.1 million. Revenues increased 47.9% to $9.414 million from $6.365 million last year. The company currently operates and franchises 271 units in 15 states and Canada.

Charming Shoppes, Inc. (215-245-9100) reported a third quarter net loss of $3.604 million, down from a net loss of $24.7 million reported during the third quarter last year. Third quarter sales fell to $242.368 million from $267.772 million with comparable store sales up three percent. The company ended the quarter with 1,168 stores, trading as Fashion Bug and Fashion Bug Plus, down from 1,417 at the end of the quarter last year.

Deb Shops, Inc. (215-676-6000) reported that its third quarter net sales increased to $46.386 million from $41.671 million last year. The company also reported a third quarter net loss of $2.458 million, compared to a net loss of $2.793 million last year. The company currently operates 289 specialty apparel stores in 37 states and 13 book stores in three states.

Circuit City Stores, Inc. (804-527-4000) plans to sell as much as 20% of its CarMax chain to the public via a stock offering. The company is looking to raise as much as $300 million through the public offering to help it open as many as 90 used-car dealerships and 25 new-car dealerships nationwide by 2002.

Who's Opening and Where...

U.S. Factory Outlets (212-563-3650) plans to open a 28,000 sq.ft. store at Casa Grande Shopping Center, located between Tuscon and Phoenix, AZ, during February 1997. The store, which will feature a 50/50 mix of apparel and general merchandise, is co-anchoring the FAC project with West Point Peppermill. U.S. Factory Outlets plans to sign a lease to open another store in the Western region soon.

Borders, Inc. (313-913-1323) recently opened a bookstore in Lewisville, TX, a 27,000 sq.ft. store in Los Angeles, CA; a store in Eau Claire, WI; a store in Columbus, OH and a store in Strongsville, OH. The company is planning to open a 25,000 sq.ft. store in Highland, IN.

Trader Joe's (602-955-6000) recently relocated its Long Beach, CA store from Marina Pacifica Mall to a former Irvine Ranch Market location at Marketplace Long Beach.

Sears, Roebuck and Co. (847-286-6254) recently opened 19 Sears Hardware Stores on November 16, the largest number of Sears stores to open in one day in the company's 109 year history. The company plans to open 29 more hardware stores before the end of the year and is looking to open 50 hardware stores during 1997. The overall company goal is to be operating 500 hardware stores by the year 2000. The comapny also plans to open a 124,000 sq.ft. department store at Citrus Mall in Tampa, FL during Spring 1999.

Global Directmail Corp. (630-357-7300), one of the largest direct mail catalog retailers of computer hardware and supplies, recently opened a 12,000 sq.ft. Global Computer Outlet Store near Fox Valley Mall in Naperville, IL.

Hollywood Entertainment Corp. (503-677-1600) plans to open as many as 10 Hollywood Video stores in the Jacksonville, FL area in the coming two years. The first unit is expected to open at a former Checkers restaurant site during April 1997.

Wal*Mart Stores (501-273-4000) recently converted it store in North Lebanon Township, PA into a Supercenter by adding a 76,912 sq.ft. grocery area.

National Record Mart, Inc. (412-276-6200) recently opened the first of four prototype music stores based on the development of a proprietary Internet/Intranet-based customer information and entertainment system. The system allows customers to access and listen to music related web sites through an interactive search center.

Men's Wearhouse, Inc. (510-657-9821) plans to open a 5,000 sq.ft. men's apparel store at The Colonnades West Shopping Center in Richmond, VA during Summer 1997.

Toys 'R Us (201-599-7850) recently opened a 95,000 sq.ft. KidsWorld store in Elizabeth, NJ. The store features toys, clothing and infant and juvenile furnture in addition to a kid's hair salon, entertainment and food. A second KidsWorld store also recently opened in Fairfax, VA and a third Kidsworld store is expected to open in Nyack, NY during Spring 1997.

Costco (206-313-6360) recently opened a 140,000 sq.ft. membership warehouse store in Gwinnett County, GA and a unit near Perimeter Mall in Atlanta, GA. The company is planning to open a third store near Town Center in the Atlanta area during Spring 1997.

Woolworth Corp. (212-553-2000) plans to open a 2,500 sq.ft. Footlocker store on 34th Street in Manhattan, NY during Spring 1997.

Space Place

Delaware

Wilmington- F&N Shopping Center is anchored by Acme and Rite Aid. The 75,000 sq.ft. project has spaces available for lease.

For details, contact R.J. Waters & Associates, Inc. at (610-444-6000).

New Jersey

Allendale- Allendale Shopping Plaza is anchored by A&P Supermarket, Dress Barn, GNC, McDonald's and Blimpie's. The 80,000 sq.ft. project has spaces from 2,889 sq.ft. to 3,600 sq.ft. available for lease. Demographics include a five-mile population of 175,000 earning $100,000 as the annual income. In Oak Ridge- Milton Shopping Center is anchored by A&P Supermarket. The 58,000 sq.ft. project has a 2,500 sq.ft. space available for lease. In Ringwood- Fieldstone Park Shopping Center is anchored by Grand Union, Dunkin' Donuts, Mailboxes Etc. and Dairy Queen. The 90,000 sq.ft. project has spaces from 1,200 sq.ft. to 2,880 sq.ft. available for lease.

For details, contact John Azarian of Azarian Management and Development Company at (201-444-9888).

Bayonne- South Cove Shopping Center is anchored by Pathmark Supermarket. The 210,000 sq.ft. project, which is under construction, has spaces from 1,000 sq.ft. to 140,000 sq.ft. available for lease. Demographics include a five-mile population of 247,351 earning $44,103 as the average income. In Lakewood- CVS Plaza is anchored by CVS and Quick Check. The 24,325 sq.ft. project, which is under construction, has spaces of 1,500 sq.ft., 3,000 sq.ft., 3,200 sq.ft. and 4,000 sq.ft. available for lease. Demographics include a five-mile population of 153,733 earning $48,453 as the average income.

For details, contact Howard Wein of Jeffrey Realty at (908-668-9600), Fax (668-5225).

Marlton- Tri Towne Plaza is anchored by Kmart and SuperFresh Supermarket. The 176,519 sq.ft. project has spaces available for lease. In Mount Olive- An outlot is available for lease. In Vineland- Kmart Shopping Center is anchored by Kmart. The 90,000 sq.ft. project has a 100,000 sq.ft. expansion area with spaces available for lease. In Williamstown- Williamstown Shopping Center is anchored by CVS and DE Jones. The 72,000 sq.ft. project has an anchor position and two outlots available for lease.

For details, contact MaryAnn Savarese of RD Management Corp. at (212-265-6600).

Pennsylvania

Bethlehem- Kmart Shopping Center is anchored by Kmart, Thrift Drug and Piece Goods. The 166,609 sq.ft. project has spaces available for lease. In Walnutport- Walnutport Shopping Center is anchored by SuperFresh Supermarket. The project has a 28,000 sq.ft. space available for lease.

For details, contact MaryAnn Savarese of RD Management Corp. at (212-265-6600).

Burnham- A 1,750 sq.ft. space is available for lease at a strip center. In Lewisburg- A 5,660 sq.ft. space is available for lease at a strip center. In Mansfield- A 45,000 sq.ft. freestanding building is available for lease. In Pottsville- A 4,680 sq.ft. space is available for lease at Cressona Mall. In Waynesboro- A 3,909 sq.ft. space is available for lease at a strip center.

For details, contact Jim Mathews of Prime Locations at (214-991-7000).

Chadds Ford- Painters Crossing is anchored by Happy Harry's and AMC 9 Plex. The 95,000 sq.ft. project has space available for lease in an expansion area as well as pad sites available for lease. In Doylestown- Cross Keys Place is anchored by Kmart and SuperFresh Supermarket. The 210,000 sq.ft. project has a pad site available for lease. In Exton- Fairfield Place is anchored by Toys 'R Us, Sports Authority, Giant, Ross, Staples and Pier 1. The 300,000 sq.ft. project has spaces available for lease. In Kennett Square- Shoppes at Longwood Village is anchored by SuperFresh, CVS and T.J. Maxx. The 140,000 sq.ft. project has a pad site available for lease. In Lancaster- Centerville Square is anchored by Giant and CVS. The 97,000 sq.ft. project has spaces available for lease in an expansion area as well as a pad site available for lease. In New Hope- Logans Square is anchored by Giant and Thrift. The 70,000 sq.ft. project has space available for lease. In Reading- Rockland Plaza is anchored by Giant, Revco and Fashion Bug. The 90,000 sq.ft. project has spaces available for lease. In Warminster- Center Point Place is anchored by Giant, Caldor and T.J. Maxx. The 240,000 sq.ft. project has spaces available for lease.

For details, contact R.J. Waters & Associates, Inc. at (610-444-6000).

Dunmore- A freestanding 61,000 sq.ft. building, which is divisible, is available for lease at O'Neill Plaza. The site is located adjacent to Price Chopper, Parts America, CVS and Radio Shack.

For details, contact Bob Huhem or Stuart Fagen of Majestic Property Affiliates, Inc. at (516-466-3100).

Feasterville- T.J. Maxx Marketplace is anchored by T.J. Maxx, Value City, Thrift Drug and Acme. The project has up to 40,000 sq.ft. of space, which can be divided, available for lease.

For details, contact Brandon Famous of Ripco Real Estate at (610-834-8000), Fax (834-1793).

Harrisburg- A 100,000 sq.ft. build-to-suit site is available for lease.

For details, contact Joseph Baranowski of Developers Realty Inc. at (860-233-6221), Fax (232-2227).

Scranton- Steamtown Commons is anchored by Old Navy Clothing. The project, which is being developed and expected to open during Fall 1997, has spaces up to 50,000 sq.ft. available for lease. The site is located adjacent to The Mall at Steamtown, which is anchored by Boscov's Department Store, and Steamtown National Park.

For details, contact Joe Barilla of Shopco at (212-594-9400, Ext. 341).

Lead Sheet

The Alliance Stores, Inc.

dba 1928 Designer Brand Accessories

Barry Hamm

PO Box 1548

Palm Springs, CA 92230

909-922-1928, Fax 922-0998

Accessories

The 41-unit chain operates locations in AZ, CA, CO, FL, HI, IL, IN, KA, MI, MO, NV, NY, OH, OR, PA, TX and UT. The stores, selling nationally branded women's accessories at moderate to upper-moderate price points, occupy spaces of 1,200 sq.ft. to 1,900 sq.ft. in outlet centers. Plans call for 50 openings in the coming 18 months. Expansion will take place nationwide. Leases running five years are typical and the company requires a vanilla shell.

TJX Companies, Inc.

dba T.J. Maxx, Marshalls

Bernie Galtman

770 Cochituate Road

Framingham, MA 01701

508-390-2230, Fax 390-3126

Apparel

The company operates 587 T.J. Maxx stores nationwide, except in AK and WY and 468 Marshalls stores nationwide, except in AR, ID, MS, MO, NM, ND, SD, UT, VT, WV and Washington, D.C. The stores, selling family apparel at off-price points, occupy spaces of 23,000 sq.ft. to 30,000 sq.ft. in strip centers. Plans call for as many as 25 T.J. Maxx openings in the coming 18 months and as many as 15 Marshalls openings in the coming 18 months. Expansion will take place within their respective existing markets.

The Bailey Group

dba Hand Car Wash

Bud Hill

6 Hutton Centre Drive, Suite 275

Santa Ana, CA 92707

714-432-0400, Fax 432-8541

Automotive

The five-unit chain operates locations in CA. The concept features a car wash, lube services, gasoline, detailing services and a convenience store while occupying spaces of 30,000 sq.ft. to 45,000 sq.ft. in freestanding facilities. Preferred anchors include large anchors and fast food restaurants. Plans call for 10 openings in the coming 18 months. Expansion will take place in AZ and NV. Leases running 30 years are typical.

Bed Bath & Beyond

Steven Temares

715 Morris Avenue

Springfield, NJ 07081

201-379-1750, Ext. 223

Bed & Bath

The 107-unit chain operates locations nationwide. The stores, selling bed, bath and home decor items, occupy spaces of 30,000 sq.ft. to 85,000 sq.ft. in freestanding facilities, regional malls, power and strip centers. Plans call for 55 openings in the coming 18 months. Expansion will take place nationwide.

Buck A Book

dba Books for Peants, Real Deal Software

William Stein

c/o Stein Investment Properties

103 Levbert Road

Newtown, MA 02159

617-244-6479, Fax 244-3689

Books

The 18-unit chain operates locations in CT, MA, NH and RI. The stores, selling publishers' overruns at the fixed price point of $1, occupy spaces of 2,500 sq.ft. to 4,000 sq.ft. in downtown store fronts, regional malls and power centers. Plans call for six openings in the coming 18 months. Expansion will take place in the existing markets. The company prefers to locate its stores in densely populated areas.

Angus I. Hines, Inc.

dba Centry Food Marts

Bob Story

1426 Holland Road

Suffolk, VA 23434

804-539-2358, Fax 539-8650

Convenience Store

The 59-unit chain operates locations in NC and VA. The convenience stores, which also sell gasoline, occupy spaces of 1,400 sq.ft. to 2,800 sq.ft. in freestanding facilities. Growth opportunities are sought in VA.

Sears, Roebuck and Co.

dba Sears

Director of Real Estate

3333 Beverly Road B2-212A

Hoffman Estates, IL 60179

847-286-0545, Fax 286-3803

Department Store

The 820-unit chain operates locations nationwide. The department stores occupy spaces of at least 80,000 sq.ft. in regional malls. Plans call for 20 openings annually. Expansion will take place nationwide.

Power Plus USA/Portronics

dba Powerful Stuff, Portronics, Power Plus

Robin Tosch

1575 Main Street

Sarasota, FL 34236

941-951-0414, Fax 951-1269

Electronics

The 40-unit chain operates locations in AL, FL, GA, PA, TN and Canada. The stores, selling pagers, cellular phones and related items as well as offering repair services, occupy spaces of 100 sq.ft. to 650 sq.ft. in kiosk locations within regional malls. The company plans an aggressive expansion and plans to operate 1,000 stores by the year 2000 nationwide.

Dollar Discount of America, Inc.

dba Dollar Discount

Mitchell Insel

1362 Naamans Creek Road

Boothwyn, PA 19061

610-497-1991, Fax 485-6439

General Merchandise

The 54-unit chain operates locations in CT, DE, GA, MD, MI, NJ, PA, SC and VT. The stores, selling general merchandise at the fixed price point of $1, occupy spaces of 2,000 sq.ft. to 3,500 sq.ft. in strip centers. Preferred anchors include supermarkets. Plans call for as many as 24 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 50,000 within three miles earning $25,000 as the average income. Leases running three to five years, with options, are typical and the company is franchising.

J.T.'s Home & Building Centers

Charlie Vernon

PO Box 399

Newport, RI 02840

401-848-7010, Ext. 107, Fax 847-0560

Home Center

The three-unit chain operates locations in RI. The home centers occupy spaces of 10,000 sq.ft. to 20,000 sq.ft. in freestanding facilities on five acres of land. Growth opportunities are sought in the existing market.

This End Up

Mail: Marie Trice

1309 Exchange Alley

Richmond, VA 23219

Phone: Jim Bieri

313-567-2700, Fax 567-2705

Home Furnishings

The 175-unit chain operates locations east of CO. The stores, selling home furnishings and window treatments, occupy spaces of 2,000 sq.ft. to 2,500 sq.ft. in regional malls. Plans call for 10 openings in the coming 18 months. Expansion will take place nationwide, with an emphasis on FL, the Midwest, the West and the Northeast. The company is also planning to open superstores with increased square footage.

Hear Music

Don McKinnon

560 Harrison Avenue, Suite 501

Boston, MA 02118

617-338-4488, Fax 338-5377

Music

The nine-unit chain operates locations in CA, CT, IL, MI and OR. The stores, selling compact discs and related merchandise, occupy spaces of 2,000 sq.ft. in freestanding facilities and regional malls. Growth opportunities are sought nationwide with an emphasis on Los Angeles and San Francisco, CA and New York, NY.

Office Depot, Inc.

dba Office Depot, Images,

Furniture at Work, Office Depot Express

Barry Ruzat

2200 Old Germantown Road

Delray Beach, FL 33445

561-265-4258, Fax 274-7970

Office

The company operates 543 Office Depot stores throughout North America as well as in Israel, Mexico, Colombia, France and Poland; three Furniture at Work stores in CA, FL and TX; four Images stores in FL and one Office Depot Express store in FL. The stores, selling office supplies and furniture, occupy spaces of 20,000 sq.ft. to 50,000 sq.ft. in freestanding facilities, power and strip centers. The Images stores occupy spaces of 5,000 sq.ft. to 7,000 sq.ft. in freestanding facilities and offer business services. Plans call for 80 Office Depot openings during 1997. Expansion will take place in the existing markets as well as in Japan and Thailand. Plans call for as many as five Furniture at Work openings with expansion nationwide. Growth opportunities are sought for the Images and Office Depot Express concepts with expansion nationwide.

The Athlete's Foot Group, Inc.

dba The Athlete's Foot

Norma Harrington

1950 Vaughn Road

Kennesaw, GA 30144

770-514-4500, Fax 514-4903

Shoes

The 700-unit chain operates locations throughout North America. The stores, selling athletic shoes and apparel, occupy spaces of 1,500 sq.ft. to 1,800 sq.ft. in regional malls, power and strip centers. Plans call for as many as 75 openings in the coming 18 months. Expansion will take place nationwide.

E&B Marine

Director of Real Estate

201 Meadow Road

Edison, NJ 08818

908-819-7400, Fax 819-4771

Specialty

The 62-unit chain operates locations in CT, FL, MD, NJ, PA and VA. The stores, selling boating supplies, occupy spaces of 12,000 sq.ft. in freestanding facilities, regional malls and strip centers. Plans call for as many as 15 openings in the coming 18 months. Expansion will take place in the Eastern and Southern regions.

Amherst Sportswear Company

Helen Gillian

254 Canal Street

Brattelboro, VT 05301

802-257-5520, Fax 257-5484

Sporting Goods

The company operates one store in VT. The store, selling men's and women's sportswear, occupies a 3,000 sq.ft. space in an outlet center. Growth opportunities are sought in NH and VT.

K-VA-T Food Stores, Inc.

dba Food City

Lou Scuderere

PO Box 1158

Abington, VA 24210

540-628-5503, Fax 628-6493

Supermarket

The 65-unit chain operates locations in KY, TN and VA. The supermarkets occupy spaces of 34,000 sq.ft. in strip centers. Plans call for as many as seven openings in the coming 18 months. Expansion will take place in the existing markets.

Exclusives: Leasing and Management Assignments

The David Cronheim Company (201-635-2180) has been named the exclusive leasing agent for a 7,500 sq.ft. strip center on Main Street in Pittston, PA. The project has vacancies ranging from 1,500 sq.ft. to 2,250 sq.ft. The company was also named the exclusive leasing agent for a two-story retail/office building in Summit, NJ. The project is anchored by Gwili Ann Bridal Shop on the first floor. A 2,300 sq.ft. space is available on the second floor and a 1,500 sq.ft. space is available on the lower level.

US Realty Associates, Inc. (215-557-9900) has been named the leasing and managing agent for Springhouse Village Shopping Center in Springhouse, PA. Phase I, consisting of 160,000 sq.ft., is 100% leased and phase II, consisting of 100,000 sq.ft., is 75% pre-leased.

Ripco Real Estate Corp. (610-834-8000) has been appointed the regional tenant representative for Crown Books in southeastern PA, southern NJ and northern DE. The company is seeking spaces between 10,000 sq.ft. to 15,000 sq.ft.

CB Commercial Real Estate Group, Inc. (818-502-6722) has been awarded the marketing and leasing contract for L'Plaza d'Northridge in Northridge, CA by American Diversified Properties, Inc. The 165,000 sq.ft. project, which is under construction, will be anchored by a 44,000 sq.ft. Linens 'N Things and a 36,000 sq.ft. Gelson's Market. A summer 1997 opening is planned. The company has been awarded the marketing and leasing contract for Glendale Marketplace in Glendale, CA by Regent Properties and Tolkin Group. The 170,000 sq.ft. project, which is expected to open during 1998, will be anchored by a 40,000 sq.ft. WOW! store, a 36,000 sq.ft. four screen Mann Theater, a 36,000 sq.ft. Linens 'N Things and Borders Books. The company has also been awarded the marketing and leasing contract for a 13-acre parcel of land in Torrance, CA where a 125,000 sq.ft. shopping center will be developed beginning in the third quarter of 1997; a 20-acre parcel of land in Long Beach where the 150,000 sq.ft. Town Square project will be developed beginning in the third quarter of 1997; an existing drive-in theater in Gardena, CA where the 80,000 sq.ft. South Bay Entertainment Center project will be developed beginning during the third quarter of 1997; a nine-acre parcel in Redondo Beach, CA where a 65,000 sq.ft. theatre-anchored project, with In-N-Out Burger and Hollywood Video, will be developed beginning in Summer 1997; and for Hawthorne Plaza in Hawthorne, CA. The project, which is in the pre-development planning stages with major redevelopment and repositioning planned, is anchored by J.C. Penney, Broadway and Montgomery Ward. Plans call for the addition of a major entertainment element, including theaters, a food court and family interactive entertainment. Plans also include the replacement of the Broadway store with another high volume retail store.

Lease Signings

Montgomery Group Affiliates (610-825-7100) leased 960 sq.ft. to Franklin Specs at Belair Shopping Center in Philadelphia, PA; 750 sq.ft. to Melitta Coffee World and 1,613 sq.ft. to Manhattan Bagel at Chesterbrook Village Center in King of Prussia, PA; 6,400 sq.ft. to Movie Gallery at Gilbertsville Shopping Center in Gilbertsville, PA; 2,500 sq.ft. to The Family Room Outlet Store and 7,500 sq.ft. to Graco Products at Home Furnishings Factory Outlet in Morgantown, PA; 3,200 sq.ft. Knights Deli and 1,100 sq.ft. Video Village at Knights Road Shopping Center in Philadelphia, PA; 2,734 sq.ft. to The Mustard Seed at Laurel Mall in Hazleton, PA; 720 sq.ft. to Lotus Flower Shop at Newtown Square Shopping Center in Newtown Square, PA; 2,736 sq.ft. to Casual Male, Big & Tall at North Wales Plaza in North Wales, PA; 1,200 sq.ft. to Sterling Optical at Strafford Shopping Center in Strafford, PA; 1,700 sq.ft. to Hair Express at Whitemarsh Shopping Center in Whitemarsh, PA; 1,000 sq.ft. Panda House Restaurant in Woodlyn Shopping Center in Woodlyn, PA; 3,528 sq.ft. to Team Thomas Sports, Conditioning and Fitness Center at Marlton Crossing in Marlton, NJ and 1,668 sq.ft. to Hearx at Rio Grande Plaza in Wildwood, NJ.

Paragano Associates (201-376-1010) leased 3,500 sq.ft. to 40 Winks and 2,525 sq.ft. to Bike Line at Windsor-Heights Center in East Windsor, NJ.

Equity Properties, Inc. (610-645-7700) leased 7,200 sq.ft. to Dollar Express at Golden Triangle Shopping Center in Lancaster, PA.

Ripco PA (610-834-8000) and SiteWorks (410-309-9450) leased 45,000 sq.ft. to Phar-Mor, Inc. at the Court at Oxford Valley in Oxford Valley, PA; 50,000 sq.ft. to Phar-Mor at East Gate Square in Moorestown, NJ; 2,000 sq.ft. to Starbucks Coffee in Newtown, PA; 4,080 sq.ft. to Starbucks Coffee in Wayne, PA; 1,600 sq.ft. to Starbucks Coffee at Oxford Oaks Shopping Center in Lower Makefield, PA; 8,000 sq.ft. to Party Supermarket at Brandywine Square in Downington, PA and 43,000 sq.ft. to Baby Superstore in Deptford, NJ.

John A. Robbins Companies (610-668-6200) leased 22,500 sq.ft. to Staples and 6,063 sq.ft. to E.J. Essentials at Doylestown Shopping Center in Doylestown, PA; 1,750 sq.ft. to Mail Boxes Etc. in the Prices Corner Shopping Center in Wilmington, DE and 2,000 sq.ft. to General Nutrition Center in Town Center of New Britain Shopping Center in New Britain.

Metro Commercial Real Estate, Inc. (609-866-1900) leased 86,000 sq.ft. to Kohl's at Cherry Hill Center in Cherry Hill, NJ.

National Realty & Development Corp. (914-694-4444) leased 4,000 sq.ft. to Golden Fashion, Inc., 2,300 sq.ft. to Einstein Bros. Bagels and 1,300 sq.ft. to Bayshore Academy of Dance at Holmdel Plaza in Holmdel, NJ; 8,067 sq.ft. to Parts America at Plaza 59 in Dunkirk, NY; 6,837 sq.ft. to Family Dollar at Lions Head Plaza in Somerdale, NJ; 16,844 sq.ft. to Aldi Supermarket at Caldor Plaza in Wallingford, CT; 8,856 sq.ft. to KB Toy Works and 4,000 sq.ft. to Dollar Tree at Hadley Shopping Center in South Plainfield, NJ.

Buyers & Sellers of Commercial Properties

Metro Real Estate has the listing to sell more than 20 outparcels nationwide. The sites range in size from one to 10 acres and are located adjacent to manufacturers outlet centers. Asking prices vary. The company also represents clients in the market to acquire retail development opportunities nationwide. Preferred projects have site approvals in place and are 60% pre-leased.

For more information, contact Al Errato, Jr. at (203-269-8721, Ext. 215), Fax (949-7719).

Rosen Associates Management Corp. is in the market to acquire shopping centers nationwide. Preferred projects are neighborhood and community centers in heavily populated areas.

For more information, contact Robert Rosen at (516-822-5350), Fax (433-3821).

LRA Realty Advisors, Inc. has the listing to sell two Food Lion anchored shopping centers in Shippensburg and Chambersburg, PA. Both projects can be expanded. The asking prices are $2.2 million and $1.7 million and financing is available.

For more information, contact Robert Rush at (215-957-1999), Fax (957-6570).

Roberts Equities is in the market to acquire shopping centers and retail buildings in the New York City metropolitan area. Properties of interest include suburban strip centers with expansion possibilities in the $3 million to $15 million price range.

For more information, contact Richard Greenberg at (212-734-0616), Fax (628-0809).

Divaris Real Estate, Inc. represented Hannaford Bros. in its acquisition of approximately 15 acres of land in Virginia Beach, VA. Hannaford Bros. plans to develop a shopping center at the site which will include a 54,000 sq.ft. Hannaford Food and Drug store, a second anchor and specialty store space. Two outparcels will also be developed. The project is expected to open during September 1997. The company also brokered the sale of Sherwood Shopping Center in Newport News, VA. The 118,000 sq.ft. project was formerly anchored by Ames. The project was sold by RI Waterman Properties, Inc. to Sherwood Associates.

For more information, contact Gerald Divaris at (757-497-2113).

Kin Properties, Inc. is in the market to acquire single tenant properties nationwide. Properties of interest are tenanted by Kmart, Target, Wal*Mart or supermarkets.

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

Developers Realty, Inc. is in the market to acquire shopping centers nationwide.

For more information, contact Joseph Baranowski at (860-233-6221), Fax (232-2227).

The Cotswold Group is in the market to acquire new and older shopping centers within a 75 mile radius of Philadelphia, PA, which includes the Allentown/Reading area as well as the Lancaster/Harrisburg/York area. The criteria for acquiring new shopping centers includes supermarket/drug-anchored projects having GLAs up to 500,000 sq.ft. that are located in densely populated areas with high traffic. In addition, new centers should have rents slightly below market where the company does not "pay for" vacant space. Projects in need of some finishing, improvement in management and tenant mix, additional equity, etc. are of interest. The criteria for acquiring older shopping centers includes projects having GLAs up to 500,000 sq.ft. that are located in densely populated areas with high traffic. Projects of interest should also have below market rents or be in need of rehab, improvement in tenant mix, additional equity, etc. For all acquisitions, the company prefers to acquire centers at about 50% of replacement cost and must be able to secure financing of up to 70% of the purchase by either seller financing, assumable financing or market financing.

For more information, contact Robert Shasha at (914-654-0035), Fax (654-0188).

F.C. Tucker Company, Inc. has the listing to sell a 102,433 sq.ft. Big R store in Kokomo, IN. A 1.8 acre parcel of land adjacent to the project is also available for sale.

For more information, contact Dean Almas at (317-639-0495).