The
Dealmakers Issue Number 1 for the week of January 17, 1997.
Book Retailers Seeking New Locations Nationwide
Barnes
and Noble, Inc. trades as Barnes and Noble Superstores, Bookstar and Bookstop at 408
locations nationwide. The stores, selling
books at discount price-points, occupy spaces of 10,000 sq.ft. to 60,000 sq.ft. in
freestanding facilities, power and strip centers. Plans
call for 100 openings in the coming 18 months. Expansion
will take place nationwide.
The company also trades as B. Dalton, Booksellers,
Doubleday Book Shops and Scribners at 611 locations nationwide. The general book stores occupy spaces of 2,800
sq.ft. to 5,000 sq.ft. in enclosed malls. Growth
opportunities are sought nationwide.
For more information, contact Mitchell Klipper,
Barnes and Noble, Inc., 105 5th Avenue, New York, NY 10003; 212-633-3512, Fax 633-3403.
Association
of Logos Book Stores trades as Logos Bookstores at 34 locations throughout North America
and the Bahamas. The book stores, which
specialize in theology, philosophy, inspirational and children's books while catering to
an upper-middle to upper income level, occupy spaces of 1,200 sq.ft. to 5,000 sq.ft. in
regional malls and strip centers. Growth
opportunities are sought nationwide.
For more information, contact Maureen Cole,
Association of Logos Book Stores, 1949 State Route 59, Suite 203, Kent, OH 44240;
330-677-8086, Fax 677-8049.
Books
A Million trades as Books A Million and Bookland at 146 locations in AL, AR, FL, GA, IL, IN, KY, LA, MI, MO, NC, ND,
OH, SC, TN, VA and WV. The bookstores, which
also sell magazines and newspapers, occupy spaces of 4,000 sq.ft. to 20,000 sq.ft. in
freestanding facilities, regional malls, power and strip centers. Plans call for 25 openings in the coming 18
months. Expansion will take place in the
existing markets.
For more information, contact Lyle Darnell, Books
A Million, 402 Industrial Lane, Birmingham, AL 35211; 205-942-3737, Fax 942-2147.
Half
Price Books, Records, Magazines trades as Half Price Books at 56 locations in CA, IN, IA,
MN, OH, TX, WA and WI. The stores, selling
new and used books, magazines, records, tapes, videos, compact discs and computer
software, occupy spaces of 6,000 sq.ft. in strip centers.
Growth opportunities are sought in the existing markets as well as in the Denver,
CO area, the St. Louis, MO area and the Washington, D.C. area.
For more information, contact Robert Schirmer,
Half Price Books, Records, Magazines, 5915 East N.W. Highway, Dallas, TX 75231;
214-360-0833, Fax 360-0187.
Dickens
Books Ltd. trades as Dickens Books at six locations in IL and WI. The bookstores occupy spaces of 2,000 sq.ft. to
5,000 sq.ft. in freestanding facilities, regional malls and strip centers. Growth opportunities are sought in the existing
markets.
For more information, contact Avin Dominitz,
Dickens Books Ltd., 219 North Milwaukee Street, Milwaukee, WI 53202; 414-270-3434, Fax
270-8685.
Who's
Opening and Where...
Rainforest
Cafe, Inc. (612-945-5400) recently opened a 19,500 sq.ft. restaurant/retail center at
Tysons Corner Center in McLean, VA and a 19,800 sq.ft. unit at Sawgrass Mills in Fort
Lauderdale, FL. The company plans to open a
23,000 sq.ft. unit in Chicago, IL during Fall 1997. The
company also recently entered into a letter of intent to form a joint venture with
Elephant & Castle Group, Inc. to develop Rainforest Cafe units in Canada. The first unit is expected to open within a year.
Circuit
City Stores, Inc. (804-527-4000) recently opened its first CarMax location in Orlando, FL.
Marco's
Pizza (419-885-4844) recently opened a store in South Bend, IN, the 100th of the
restaurant chain. The company plans to open
25 units this year.
West
Coast Entertainment Corp. (215-677-1000) recently entered into a franchise area
development agreement with HB Associates to open 20 West Coast Video stores in NH, ME and
MA in the coming three years.
Wal*Mart
Stores (501-273-4000) plans to open a 200,000 sq.ft. supercenter at Maconda Park Shopping
Center in Austin, TX later this year.
J.C.
Penney (214-431-1000) plans to open a 100,000 sq.ft. store at a former Leggett Department
Store space at Francis Scott Key Mall in Frederick, MD during July 1997. The company is also rumored to be in negotiations
with Mervyn's to take over the space Mervyn's currently occupies at Shannon Southpark,
Gwinnett Place and Town Center in the Atlanta, GA area.
Good
Times Restaurants, Inc. (303-427-4221) plans to open four Good Times Drive Thru
restaurants in Arvada, Aurora, Fort Collins and Silverthorne, CO before June. An additional three units are planned for the
remainder of this year.
Silver
Diner, Inc. (301-770-4186) recently opened restaurants in Arlington and Merrifield, VA. It is the company's seventh and eighth units. Two more restaurants are planned to open in the
Reston and Springfield, VA areas during Spring.
Michaels
Stores, Inc. (972-409-1500) plans to convert five of its Chicago, IL stores into its new
prototype format during the first half of this year.
Buyers
& Sellers of Commercial Properties
Equity
Investment Group is the market to acquire retail properties with upside potential in the
Eastern half of the U.S. The company does
short due diligence work, is a cash buyer and has the ability to close a deal quickly.
For more information, contact Robert Sutton at
(219-426-4704), Fax (424-3615).
Taubman
Centers, Inc. recently acquired La Cumbre Shopping Center in Santa Barbara, CA. The 477,700 sq.ft. project, which is anchored by
Robinson-May and Sears, was purchased for $22.25 million.
For more information, contact Christopher Tennyson
at (810-258-7519).
JDN
Realty Corporation recently acquired Southland Plaza Shopping Center in Decatur, AL for
$6.8 million. The 123,031 sq.ft. project is
anchored by a 49,000 sq.ft. Food World.
For more information, contact JDN Realty Corp. at
(404-262-3252).
Allen
Fuller Co. Realtors represented a European investment group in its purchase of a new
Borders Books & Music store in Tampa, FL. The
27,500 sq.ft. store was sold by a Midwest group, represented by Zeitz Properties, Inc.,
for $5.623 million.
For more information, contact David Mufson at
(305-532-0881), Fax (532-0882).
Mainardi
Management Co. represents two real estate owners in the market to acquire shopping centers
within a two and half hour drive from northern NJ. Preferred
projects are anchored by supermarkets, drug stores or national retailers and priced
between $3 million and $8 million. The
company recently acquired Greentree Square Shopping Center in Marlton, NJ for $10 million. The 106,000 sq.ft. project is anchored by Eckerd
Drugs and TGI Friday's. A 30,000 sq.ft.
former IGA Supermarket is available for lease.
For more information, contact Paul Gronroos at
(201-696-9265), Fax (696-1880).
Federal
Realty Investment Trust is in the market to acquire strip shopping centers having GLAs of
at least 100,000 sq.ft. in major metropolitan areas of CA, CT, DE, IL, MD, MS, NJ, NY, NC,
VA and PA. Preferred projects are older
properties with expansion, renovation and/or remerchandising potential.
For more information, contact Robert Wennett at
(301-998-8308), Fax (998-3703).
Stoltz
Realty Co. has the listing to sell approximately 44 acres in New Castle County, DE. The site is located at the intersection of Route
13 and Boyd's Corner Road and is adjacent to Route 1.
A full interchange to Rt. 1 is planned. The
site has approval for the development of a 210,000 sq.ft. shopping center to be built
after the completion of the interchange. 60,000
sq.ft. can be developed immediately.
For more information, contact Jim O'Hara at
(302-658-6681), Fax (658-1434).
The
Macerich Company recently acquired three malls in CA for a total purchase price of $125.1
million. The properties include the 882,000
sq.ft. Fresno Fashion Fair in Fresno, CA. The
project is anchored by JC Penney, Gottschalks and two Macy's stores. The second project is the 808,000 sq.ft.
Buenaventura Plaza in San Buenaventura, CA. The
project is anchored by JC Penney, Macy's and Montgomery Ward. The third project is the 814,000 sq.ft. Huntington
Center in Huntington Beach, CA. The 814,000
sq.ft. project is anchored by Montgomery Ward, Mervyn's, Burlington Coat Factory, Barnes
& Noble, Circuit City and Staples.
For more information, contact Arthur Coppola at
(310-394-6911).
Scotmar
Properties Associates, Inc. is in the market to acquire shopping centers having GLA
running 10,000 sq.ft. to 500,000 sq.ft. along the East Coast.
For more information, contact Barry Borsky at
(610-825-7494).
CB
Commercial Real Estate Group brokered the sale of Hobson West Plaza in Naperville, IL. The 99,950 sq.ft. project, which is anchored by
Eagle Country Market, was sold by an IL-based pension fund to RD Capital, Inc. The company also brokered the sale of The Route 34
Auto Service Mall in Naperville, IL. The
53,000 sq.ft. project was sold by The Union Labor Life Insurance Co to a local investor.
For more information, contact Nick Peters at
(708-573-7082).
Ramco-Gershenson
Properties Trust recently acquired the 106,530 sq.ft. Holcomb Center in Alpharetta, GA for
$6.7 million.
For more information, contact Dennis Gershenson at
(810-350-9900).
Georgia
Developer Joins Retailers in Catering to The Needs of Children
While
there are many retailers that cater to the needs of children, in Georgia, there is a
developer who caters to the needs of children. Watkins
Retail Group, which has been building Publix Supermarket anchored shopping centers in the
Atlanta, GA area since 1979, recently opened its first children's only shopping center
called Abbotts Kids Village at Ocee in North Fulton County, GA. The 50,500 sq.ft. project is located adjacent to a
Publix-anchored project.
Neal
Freeman, executive vice president of Watkins Retail Group, came up with the idea after
studying the demographics of the area and found that 20% of the population was in the zero
to nine-year-old range. "We also saw
that the services for children in the area were limited so we decided to build a shopping
center strictly for children," Watkins said. In
developing the concept, Freeman envisioned an entertainment-retail complex, but as it
evolved it became a retail-educational center instead.
Retailers
found at the project include Clothes Horse, a children's apparel store; My Storyhouse, a
store selling children's books and toys; Plaster Palace, a store where children purchase
pre-made plaster molds, paint them and take them home; Kuts 4 Kids, a children's hair
salon; Gym Zone & Cheerleaders, a children's gymnastic and dance center; Dynamo Swim
Center, a children's swimming center; Childtime Daycare; a children's photography studio;
and soon to open KidsWay, a school-to-work training center operated by kids. KidsWay will feature a soda fountain, an
environmental products department, an area selling books, tapes, videos, software and
other educational items, and a section called the Caring Corner which is dedicated to
children's charity organizations. The project
is designed with a children's theme complete with painted sidewalks, hopscotch blocks and
a walkable race track.
"The
project has only been open for five months, but the response has been great," Freeman
said. "We didn't know what to expect,
but so far it has been great." Freeman
said that a contract with Radio Disney was recently signed that calls for Radio Disney to
broadcast from Abbotts Kids Village every Saturday morning.
Freeman added that the financial rewards, so far, have been okay, but that the
other rewards have been better. "It has
been a decent investment vehicle, very rewarding and a lot of fun," Freeman said. In discussing about the drawing power of the Kids
Village, Freeman said that the Publix shopping center is only drawing from a three-mile
radius while the adjacent Kids Village is drawing from a 10 to 15-mile radius.
Although
it is still a little too early to pronounce Kids Village a complete success, Watkins
Retail Group is currently developing a second Kids Village, expected to open during Fall
1997, in Gwinnett County, GA with plans to develop a third Kids Village in Cobb County,
GA.
For
more information on the Kids Village concept, contact Neal Freeman at Watkins Retail
Group, 1946 Monroe Drive N.E., Atlanta, GA 30324; 404-872-8666, Fax 872-8806.
Retailing
giant Toys 'R Us has been continuing its strong presence in the children's retailing world
by opening two KidsWorld stores in Elizabeth, NJ (visible from the NJ Turnpike and
adjacent to an Ikea store) and Fairfax, VA. The
95,000 sq.ft. superstores, which combine a Toys 'R Us store, a Kid 'R Us store and a
Babies 'R Us store under one roof, feature toy departments, clothing departments, infant
and juvenile furniture departments, kids' hair salons called Cartoon Cuts, and an
entertainment and food section called Jeepers! Jr. where shoppers can stop for a bite to
eat or children's birthday parties can be hosted. A
third KidsWorld store is planned to open in Nyack, NY during the Spring.
The
three KidsWorld stores joined the more than 1200 Toys 'R Us toy stores, Kids 'R Us
children's clothing stores and Babies R' Us infant clothing and furniture stores that the
company operates worldwide. The stores occupy
spaces of 16,500 sq.ft. to 98,000 sq.ft. in freestanding facilities, power centers and
regional malls. Plans call for more than 100
openings in the coming 18 months. Expansion
will take place nationwide.
For more information, contact Gayle Aertker, Toys
'R Us, Inc., 461 From Road, Paramus, NJ 07652; 201-599-7850, Fax 262-9097.
In
addition to opening new stores, the company also has plans to remodel more than 50 stores
into its new Concept 2000 format, a colorful layout arranged into a racetrack format which
features larger signs, sectionalized layout of merchandise, a central information area and
more lighting.
In
an attempt to grab a larger share of the baby retailing market, Toys 'R Us has agreed to
acquire Baby Superstore in a deal valued at $376 million.
Baby Superstore, which operates 73 stores in 23 states, will be merged into the
Babies 'R Us division to create the nation's largest infant and toddler retailer with
sales expected to be in excess of $450 million annually.
The deal is expected to close during the end of this month.
During
its fiscal third quarter, which ended November 2, 1996, Toys 'R Us posted a sales increase
of 10% to $1.9 billion from $1.7 billion during the previous year's third quarter. Net earnings increased to $33 million from $21
million the year before. Comparable store
sales increased four percent for the quarter.
Other
children's retailers looking to expand include: Burlington Coat Factory Warehouse does
business as Baby Depot at four locations in NJ, NY, PA and TX, in addition to
incorporating the concept in its full line stores nationwide. The stores, selling both soft and hardline goods
for infants through children age 12, occupy spaces of 25,000 sq.ft. to 40,000 sq.ft. in
freestanding facilities, regional malls, power, specialty and strip centers. Growth opportunities are sought nationwide.
The company also trades as Totally 4 Kids at five
locations in CA, NJ, TN and VA. The stores,
which are billed as "the world's first interactive superstore for kids," are
specialty stores targeted to the upscale children's market.
They offer a mix of children's merchandise for newborns through pre-teen including
name-brand clothing, shoes, furniture, educational toys, games, books, audio and video
tapes, electronic learning aids, educational computer software, indoor and outdoor play
equipment, newborn and toddler furniture and equipment, gifts and party supplies. In addition, the stores offer a community learning
room, a theater area, a refreshment area, a private nursing area and a fully-stocked
diaper changing room. These stores occupy
spaces running 50,000 sq.ft. in strip centers. Growth
opportunities are sought for the concept.
For more information, contact Mrs. Lee Kilcollum,
Burlington Coat Factory Warehouse, 1830 Route 130 North, Burlington, NJ 08016;
609-387-7800.
The
Gap, Inc., which has made its mark in retailing by selling men's and women's jeans and
other clothing, also caters to children through its GapKids and BabyGap stores at 486
locations throughout North America, France and the United Kingdom. The stores occupy spaces in a variety of real
estate settings, including downtown store fronts and regional malls. Growth opportunities are sought in the existing
markets. For its fiscal third quarter, which
ended November 2, 1996, the company's net earnings increased 15% to $134.3 million from
$116.9 million during FY95's third quarter. Net sales increased 20% to $1.383 billion from
$1.156 billion the previous year. Comparable
store sales were up one percent for the quarter.
For more information, contact Steve Kaplan, The
Gap, Inc., 900 Cherry Avenue, San Bruno, CA 94066; 415-952-4400, Fax 876-1865.
Gymboree
Corp. trades as Gymboree at more than 354 locations throughout North America. The company designs, manufacturers and sells its
own line of apparel and accessories for children from birth through age seven. Its stores occupy spaces of 1,500 sq.ft. in
regional malls. Plans call for 60 openings in
the coming year with expansion taking place nationwide.
Net sales for the 43-week period, which ended December 1, 1996, sales increased 15%
to $243 million from $211.4 million. However,
comparable store sales fell nine percent over the period.
For more information, contact Jo Anne Davis,
Gymboree Corp., 700 Airport Boulevard, Suite 200, Gurlingame, CA 94010; 415-579-0600, Fax
696-7550.
Noodle
Kidoodle, which sells educational toys and related items, operates 31 stores in CT, IL,
MA, MI, NJ and NY. The stores occupy spaces
of 12,000 sq.ft. in freestanding facilities and end-caps of strip centers. Plans call for 20 openings in the coming year and
expansion will take place in the existing markets. Third
quarter sales from continuing operations increased to $11.8 million from $6.3 million
during the previous year's third quarter. Net
loss from continuing operations was $2.5 million, compared to a net loss of $3 million the
previous year. For the first nine months of
its fiscal year, the company posted a sales increase to $30.5 million from $13.5 million
and had a net loss of $8.2 million compared to a net loss of $5.9 million in 1995.
For more information, contact Brian Gordon, Noodle
Kidoodle, c/o Gordon Real Estate, 31550 Northwestern Highway, Farmington Hills, MI 48334;
810-932-2100, Fax 932-2124.
Lexington
Stores trading as Kid City at seven locations in MD, PA and Washington, D.C. The children's apparel stores occupy spaces of
5,000 sq.ft. in downtown store fronts, regional malls, outlet and power centers. Growth opportunities are sought in the existing
markets.
For more information, contact Leon Silvera,
Lexington Stores, 1 East 33rd Street, New York, NY 10016; 212-685-7640, Fax 685-3321.
Suzette
Stores trades as Young World and Suzette Stores at 31 locations in MD, NJ, NY and PA. The stores, selling children's apparel and
furniture, occupy spaces of 15,000 sq.ft. to 20,000 sq.ft. in downtown store fronts,
regional malls, power and strip centers. Growth
opportunities are sought in the existing markets.
For more information, contact Haim Chera, Suzette
Stores, 59 Hook Road, Bayonne, NJ 07002; 201-436-8800, Fax 436-9826.
The
Right Start, Inc. trades as The Right Start at 28 locations in CA, MN, GA, MA, NJ, IL, PA,
NY, CT, MI, WA, CO, MO, VA and MD. The
stores, selling infant and toddler apparel and specialty products, occupy spaces of 2,400
sq.ft. in regional malls. Preferred anchors
include Bloomingdale's and Nordstrom's. Plans
call for 25 openings in the coming 18 months. Expansion
will take place in the existing markets. Leases
running 10 years are typical.
For more information, contact Ron Blumenthal, The
Right Start, Inc., 5334 Sterling Center, West Lake Village, CA 91361; 818-707-7100, Fax
707-7132.
Color,
Inc. trades as Destination at 40 locations nationwide.
The children's apparel stores, selling imprinted sportswear and gift items, occupy
spaces of 400 sq.ft. to 800 sq.ft. in downtown store fronts, regional malls and specialty
centers. Growth opportunities are sought
nationwide.
For more information, contact Al Shameklis, Color,
Inc., 490 Boston Post Road, Sudbury, MA 01776; 508-443-1970, Ext. 911, Fax 443-1712.
Nathan's
Industries does business as Children's World at eight locations in NJ and NY. The children's apparel stores occupy spaces of
6,000 sq.ft. to 18,000 sq.ft. in downtown store fronts, regional malls and strip centers. Plans call for two openings in the coming 18
months. Expansion will take place in the
existing markets.
For more information, contact Nathan Chera,
Nathan's Industries, 991 Southern Boulevard, Bronx, NY 10459; 718-589-3447, Fax 617-7533.
Cartoon
Cuts operates 18 locations in FL, GA, MD, NJ, PA and VA.
The children's hair salons, featuring Sega games in the waiting area, occupy spaces
of 1,000 sq.ft. to 1,200 sq.ft. in regional malls. Plans
call for six openings in the coming 18 months. Expansion
will take place within the existing markets.
For more information, contact Kathleen Perkal,
Cartoon Cuts, 5501 Backlick Road, Suite 115, Springfield, VA 22151; 703-354-3801, Fax
354-4431.
House
of Bargains, Inc. trades as Kid Spot and House of Bargains at 54 locations in DE, IL, IN,
MI, NJ and PA. The stores, selling children's
apparel and related accessories for infants through girls size 14 and boys size 20, occupy
spaces of 4,000 sq.ft. to 5,000 sq.ft. in strip centers.
Growth opportunities are sought in the Chicago, IL and Detroit, MI metropolitan
areas.
For more information, contact Sue Fafara, House of
Bargains, Inc., 70 Portland Road, West Conshohocken, PA 19428; 610-834-1600, Fax 834-0942.
The
Washington Post Company trades as Score @ Kaplan at 14 locations in CA and CT. The educational centers occupy spaces of 1,700
sq.ft. to 2,100 sq.ft. in downtown store fronts and strip centers. Preferred anchors include GapKids, family oriented
stores, ice cream restaurants and toy stores. Plans
call for as many as 50 openings in the coming 18 months.
Expansion will take place in the New York City metropolitan area; Boston, MA;
Philadelphia, PA; Washington, D.C.; Chicago, IL; southern CA and San Francisco, CA area. Preferred demographics include a population of
5,000 children within 2.5 miles earning $60,000 as the average family income. Leases running five years are typical and the
company cites Sylvan Learning Centers as competition.
For more information, contact Mark Friedberg or
Michael Sokolow, The Washington Post Company, 810 7th Avenue, New York, NY 10019;
212-492-5848, Fax 492-5888.
Cricket's/Teacher's
Pet operates 14 locations in AR, KS and Canada. The
stores, selling children's apparel at 25% to 60% off manufacturer's suggested prices,
occupy spaces of 2,000 sq.ft. to 2,500 sq.ft. in a variety of real estate settings. Plans call for as many as 12 openings in the
coming 18 months. Expansion will take place
nationwide. Leases running five years are
typical.
For more information, contact Arthur Uram,
Cricket's/Teacher's Pet, Cookstown Factory Outlet Unit A@, RR1, Cookstown, Ontario, Canada
L0L 1L0; 705-458-0711, Fax 458-0831.
Gorton
Group, Inc. trades as Primages International at 100 locations nationwide. The concept features coin operated kiddie rides
and giant gumball machines while occupying spaces of 120 sq.ft. in regional malls, outlet
and specialty centers. Growth opportunities
are sought nationwide. Leases running one to
five years are typical.
For more information, contact Chris Youngs, Gorton
Group, Inc., 203 Charles Street, Coopersburg, PA 18036; 610-282-5566, Fax 282-1240.
KinderCare
Learning Centers, Inc. trade as KinderCare Learning Centers, KinderCare at Work and Kid's
Choice at 1,148 locations nationwide. The
child care centers occupy spaces of 10,000, sq.ft. to 12,000 sq.ft. in freestanding
facilities. Plans call for as many as 100
openings in the coming 18 months. Expansion
will take place nationwide. The company has
also recently agreed to be acquired by Kohlberg Kravis Roberts & Co. (KKR) in a deal
valued at $576 million.
For more information, contact Mark Hoffman,
KinderCare Learning Centers, Inc., 2400 President's Drive, Montgomery, AL 36116;
334-277-5090, Fax 270-0122.
However,
not all retailers who cater to the needs of children are doing well. Discovery Zone, Inc., for example, has been
struggling with its pay-to-play concept and eventually sought voluntary Chapter 11
protection during March 1996. The company,
which only three years ago operated 347 Discovery Zone play centers nationwide, has closed
87 stores and terminated 25% of its work force.
Many
factors contributed to the demise, but the more popular include too many stores too close
together, bored parents waiting for their children to finish playing, clones and the
"what happens when the kids are in school" problem. The company is trying to right its ship by testing
two concepts which may see nationwide rollout this year.
The first concept is called NiteZones and features an evening dance club for older
children at $8.99 per night. The second
concept is called FunSitters and features a babysitting program for children aged four and
up for $12 an hour. Additional changes being
pondered include the addition to peanut butter and jelly sandwiches to the menu and the
installation of security gates for the extra-cautious parents. A change in the marketing of the fun centers is
also being considered as is the development of relationships with other businesses such as
supermarkets, convenience stores, malls and youth organizations.
There
is no doubt that Discovery Zone still has tough days ahead, and those days will be tougher
because McDonald's restaurants continues to add PlayPlaces at its more than 12,000 U.S.
restaurants. Currently more than 6,000
PlayPlaces exist. Burger King also features
a play park at many of its restaurants. While
not as large as a Discovery Zone, the play centers at both McDonald's and Burger King
feature much of the same equipment with some located outdoors. Adults can eat lunch while their children play and
the cost is usually a Happy Meal, which is less than Discovery Zone's $5.99 admission fee.
However,
the biggest challenge to Discovery Zone's future corporate health will arrive next month
when the Walt Disney Company enters the family play center business with its Club Disney
concept. The first center is expected to open
in a 25,000 sq.ft. freestanding facility in Thousand Oaks, CA with a nationwide rollout to
follow. In addition to offering equipment for
physical play for children infants through age 10, the concept will also offer art
workshops, educational programs, computers, party rooms, a restaurant, Disney theme rooms
and a retail store. In addition, Walt Disney
Co. is developing a new entertainment concept that combines video, virtual reality and
other new technologies into one large arcade called Disney Quest. A mid-1998 launch is being planned with the first
likely site to be at Walt Disney World in FL. Plans
to take the concept nationwide are in the works.
Lease
Signings
Divaris
Real Estate (757-497-2113) leased 1,325 sq.ft. to Tanning Resources at Parkside
Marketplace Shopping Center in Richmond, VA; 4,000 sq.ft. to Entre Computer Centers in
Newport News, VA; 1,200 sq.ft. to Gems Unlimited at Dunlop Village Shopping Center in
Colonial Heights, VA; 45,000 sq.ft. to Food Lion at Merchant's Walk Shopping Center in
Richmond, VA; 11,000 sq.ft. to Factory Card Outlet Store at Southpark Square Shopping
Center in Colonial Heights, VA; 5,555 sq.ft. to Video Update at Hampton Towne Center in
Hampton, VA; 3,464 sq.ft. to Duron Paints at Sherwood Shopping Center in Newport News, VA;
1,770 sq.ft. to Cathy's Creations at Gallery Shoppes in Lightfoot, VA and 3,200 sq.ft. to
GTE Mobilnet at Greenbrier Market Center in Chesapeake, VA.
Breslin
Realty Development Corp. (516-741-7400) leased space to The Commack Merchandise Mart at
The Port Plaza Shopping Center in East Northport, NY; 8,500 sq.ft. to Trader Joe's at T.J.
Maxx Plaza in Commack, NY; space to American Fitness at Sun-Vet Mall in Holbrook, NY and
4,015 sq.ft. to Leslie's Poolmart at Levittown Mews Shopping Center in Levittown, NY.
Levin
Management Corporation (800-488-0768) leased 35,000 sq.ft. to Jo-Belle's at Hickory Plaza
in Hickory, NC.
Developers
Diversified (216-247-4700) leased 24,982 sq.ft. to OfficeMax at Country Club Mall in Idaho
Falls, ID; 23,484 sq.ft. to OfficeMax at Stow Community Shopping Center in Stow, OH;
23,500 sq.ft. to OfficeMax at Brook Highland Plaza in Birmingham, AL and 13,000 sq.ft. to
Factory Card Outlet at Belden Park Crossings in Canton, OH.
Devcon
Enterprises, Inc. (860-233-2114) leased 19,674 sq.ft. to Pep Boys at Silver Hill Business
Center in Meriden, CT.
Kranzco
Realty Trust (610-941-9292) leased 60,140 sq.ft. to Ames Department Stores at a former
Jamesway space at Valley Forge Mall in Phoenixville, PA.
Sigma
National, Inc. (804-320-6100) leased 53,500 sq.ft. to HomePlace at Brookhollow Shopping
Center in Richmond, VA.
CBL
& Associates Properties, Inc. (423-855-0001) leased 30,000 sq.ft. to T.J. Maxx, 4,000
sq.ft. to Hallmark Cards, 4,500 sq.ft. to Shoe Dept., 1,800 sq.ft. to Sally Beauty, 1,200
sq.ft. to Day & Nite Cleaners, 1,330 sq.ft. to Elegant Nails and 6,000 sq.ft. to
Movietown at Massard Crossing Shopping Center in Fort Smith, AR.
Goldman
Retail Associates (310-235-0444) exclusively representing Sav-On subleased 9,035 sq.ft. to
Thrift Store in Covina, CA for the remainder of the lease.
Financial
News...
Petco
Animal Supplies, Inc. (619-453-7845) reported that its third quarter net sales increased
52% to $107.9 million from $71.1 million during the third quarter last year. Comparable store sales increased 17% for the
quarter. The company operates 325 stores in
21 states.
Fred
Meyer, Inc. (503-797-7900) reported that its third quarter net sales increased 11.5% to
$835.1 million from $749 million during the third quarter last year. Comparable store sales increased 4.1% during the
quarter. Net income for the quarter was $6.3
million, compared to a net loss of $2.3 million last year.
The company currently operates more than 300 stores that feature general
merchandise, food, apparel, jewelry and home improvement products.
ShopKo
Stores, Inc. (414-497-2211) reported that its third quarter consolidated sales increased
20.4% to $591 million from $491 million during the third quarter last year. Retail comparable store sales increased 4.5% for
the quarter. Third quarter net income
increased 7.9% to $10.9 million from $10.1 million last year. The company currently operates 130 stores in 15
states.
Darden
Restaurants, Inc. (407-245-4000) reported that its second quarter sales increased 2.4% to
$748.8 million By division, Red Lobster
reported sales of $437.6 million, which were approximately the same as last year's sales. Comparable store sales for the quarter fell 3.5%. During the quarter, the company opened four units
and closed one to end with 733 restaurants. The
Olive Garden posted a six percent sales increase to $309.6 million with comparable store
sales up 2.5%. During the quarter, the
company opened two units and closed one to end with 491 restaurants.
AutoZone,
Inc. (901-495-6500) reported that its first quarter net income increased nine percent to
$38 million from $34.8 million last year. Sales
for the quarter increased 23% to $569.1 million from $463 million. Comparable store sales increased seven percent. During the quarter, the company opened 54 stores
with plans to open 335 stores during FY97. The
company operates more than 1,475 auto parts and accessories stores in 29 states.
J.C.
Penney (972-431-1000) has been asked by the Federal Trade Commission to sell 161 drug
stores in the Carolinas as part of its acquisition of the Eckerd Drug chain and selected
stores from the Rite Aid store chain. In the
settlement, Penney must sell the Carolina stores by March otherwise it will be barred from
acquiring the Rite Aid stores. The FTC's
ruling said that a single buyer for the 161 stores must be found in order to maintain
adequate competition in the two states. The
divestitures include 127 Rite Aid stores in NC, 34 Thrift stores in NC and 17 Rite Aid
stores in SC.
Pier
1 Imports, Inc. (817-878-8000) reported that its third quarter sales increased 18.6% to
$225.598 million, up from $190.185 million last year.
Comparable store sales increased 12.1% for the quarter. Net income increased 55% to $10.628 million from
$6.854 million. The company currently
operates 725 home furnishing stores in 47 states, Canada, Puerto Rico, Japan, Mexico and
the United Kingdom.
Circuit
City Stores, Inc. (804-527-4000) reported that its third quarter net earnings were $19.8
million, down from $31.5 million during the third quarter last year. Total sales increased five percent to $1.86
billion from $1.78 billion last year. However,
comparable store sales fell 10%. During the
quarter, the company opened 36 stores and currently operates 429 superstores, 47
mall-based stores and six CarMax units.
Revco
D.S., Inc. (216-425-9811) reported that its second quarter sales increased 7.9% to $1.227
billion from $1.137 billion last year. Comparable
store sales increased six percent. Net income
for the quarter was $16 million, up 41.2% over last year's results. The company, which is in the process of acquiring
Big B, Inc., operates more than 2,200 drug stores in 14 states.
Wherehouse
Entertainment, Inc. (310-538-2314) recently announced that the Bankruptcy Court has issued
a Confirmation Order approving the company's reorganization and that the company expects
to emerge from Chapter 11 protection by the end of this month. The company, which operates 265 stores selling
home entertainment products in AZ, CA, CO, NV, OR, UT and WA, has been operating under
Chapter 11 protection since August 1995.
Best
Buy Co., Inc. (612-947-2000) reported a third quarter loss of $10.973 million, compared to
earnings of $17.8 million during the third quarter last year. The decline reflects a $15 million pre-tax charge
for the write-down of personal computer inventories and decision to narrow the office
supply product assortment. Comparable store
sales for the quarter fell eight percent. During
the quarter, the company opened 10 stores and currently operates 272 units nationwide.
Laser
Quest Corp. (416-633-2000) reported that its third quarter revenues doubled to $7.2
million from $3.6 million last year. Net
income increased to $229,432 from a net loss of $117,100 reported last year. The company recently opened nine Laser Quest
Centers, offering indoor laser tage games, and plans to open 14 more this year. Currently, the company operates more than 17
centers in 17 countries.
Bed
Bath & Beyond, Inc. (201-379-1750) reported that its third quarter net earnings
increased 38.7% to $13.9 million from $10 million last year. Net sales increased 32.8% to $214.8 million from
$161.8 million last year. Comparable store
sales increased 6.4% for the quarter. During
the quarter, the company opened 18 stores and currently operates 108 stores in 25 states.
Drug
Emporium, Inc. (614-548-7080) reported that its third quarter net sales increased to
$206.2 million from $171 million last year. Net
income fell to $271,000 from $347,000 last year. The
company operates and franchises 236 drug stores trading as Drug Emporium, F&M Super
Drug Stores, I Got It at Gary's and Big D.
Lead
Sheet
Specialty
Retailers, Inc.
dba
Palais Royal, Beall's, Stage, Fashion Bar
Mel
Ward
10201
South Main Street
Houston,
TX 77025
713-669-2761,
Fax 669-2852
Apparel
The
250+-unit chain operates locations in AR, IL, IA, KS, LA, MS, MO, OK and TX. The stores, selling apparel and shoes for the
family, occupy spaces of 18,000 sq.ft. to 20,000 sq.ft. in regional malls and strip
centers. Growth opportunities are sought in
the existing markets.
Midas
Realty Corp.
dba
Midas International Corp.
Richard
Nassa
61
Robert Paine Drive
Taunton,
MA 02780
508-824-1600,
Fax 824-1625
Automotive
The
2,700-unit chain operates locations nationwide. The
automotive service centers occupy spaces of 5,000 sq.ft. in freestanding facilities and
strip centers. Plans call for 150 openings in
the coming 18 months. Expansion will take
place nationwide.
Pit
Stop Convenience Centers
dba
Pit Stop
Katherine
Palmer
PO Box
2506
Peachtree
City, GA 30269
770-487-9997,
Fax 487-3379
Convenience
The
eight-unit chain operates locations in GA. The
convenience stores, which also sell gasoline, occupy spaces of 2,000 sq.ft. to 2,500
sq.ft. in freestanding facilities. Growth
opportunities are sought in the existing market.
Merle
Norman Cosmetics, Inc.
dba
Merle Norman
Marv
Landon
9130
Bellanca Avenue
Los
Angeles, CA 90045
310-641-3000,
Fax 641-7144
Cosmetics
The
2,200-unit chain operates locations throughout North America. The cosmetic stores occupy spaces of 600 sq.ft. in
regional malls and strip centers. Growth
opportunities are sought nationwide.
HH
Gregg, Inc.
dba HH
Gregg
Jack
Esselman
c/o JF
Esselman, Inc.
9000
Keystone Crossing #730
Indianapolis,
IN 46240
317-844-6833,
Fax 574-0481
Electronics
The
19-unit chain operates locations in KY, IN and TN. The
stores, selling appliances and consumer electronics, occupy spaces of 20,000 sq.ft. to
40,000 sq.ft. in freestanding facilities and power centers.
Plans call for two openings in the coming 18 months.
Expansion will take place in the Nashville, TN area and Evansville, IN. The company prefers second generation spaces.
Entertainment
Management, Inc.
dba
Champions, Challenges
Thomas
McAuliffe
Plymouth
Corp. Center Bldg. A, Suite 108
625
Ridge Road
Conshohocken,
PA 19428
610-941-4111,
Ext. 106, Fax 940-0111
Entertainment
The
24-unit chain operates locations in DE, GA, IL, LA, MD, PA, SC, SD, VA and WA. The entertainment areas, featuring arcade games,
occupy spaces of 2,000 sq.ft. to 4,000 sq.ft. in regional malls and food court areas. Growth opportunities are sought nationwide, with
an emphasis on the Mid-Atlantic region.
Fabric
Centers of America, Inc.
dba
Clothworld, Joanne Fabrics, NY Fabrics, Joanne Etc.
John
Stec, John Phillips (East), De Waine Angelletti (Southwest), Kevin Beegle (Midwest)
5555
Darrow Road
Hudson,
OH 44236
216-656-2600,
Fax 463-6675
Fabric
The
920-unit chain operates locations nationwide. The
stores, selling fabric, crafts and notions, occupy spaces of 14,000 sq.ft. to 18,000
sq.ft. in freestanding facilities, power and strip centers.
Growth opportunities are sought nationwide.
Nach-O
Fast, Inc.
dba
Nach-O Fast
Richard
Coles
563
West 500 South
Bountiful,
UT 84010
801-298-0199,
Fax 298-0299
Food
The
company operates one unit in UT. The concept,
offering Mexican snack foods such as nachos, churros and sopapillas, seeks spaces of 150
sq.ft. to 1,000 sq.ft. in regional malls and power centers.
Plans call for as many as 200 openings in the coming 18 months. Expansion will take place throughout North
America. Preferred demographics include a
population of 250,000 within 50 miles earning $40,000 as the average household income. Leases running five to 10 years are typical and a
vanilla shell is preferred. The company is
franchising and has sold more than 80 franchises at press time.
Ben
Franklin Retail Stores, Inc.
dba
Ben Franklin
Donald
Erikson
500
East North Avenue
Carol
Stream, IL 60188
630-462-6100,
Fax 690-1356
General
Merchandise
The
857-unit chain operates locations nationwide. The
stores occupy spaces of 12,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for five openings in the coming 18
months. Expansion will take place nationwide. The company is currently under Chapter 11
protection.
The
Container Store, Inc.
dba
The Container Store
John
Mullen
2000
Valwood Parkway
Dallas,
TX 75324
214-654-2000,
Fax 654-2004
Home
Decor
The
17-unit chain operates locations in CA, CO, GA, IL, MD, TX and VA. The stores, selling all types of home and office
organizational items including closet storage and multi use items as well as small gift
items, occupy spaces of 23,000 sq.ft. in freestanding facilities and end-cap spaces of
strip centers. Growth opportunities are
sought nationwide.
Hardman
Supply Co., Inc.
dba
Hardman Supply Co.
C.
Stan Hardman
102
Court Street
Spencer,
WV 25276
304-927-4701,
Fax 927-4702
Home
Improvement
The
seven-unit chain operates locations in WV. The
home improvement stores occupy spaces of 5,000 sq.ft. to 8,000 sq.ft. in freestanding
facilities and strip centers. A 5,000 sq.ft.
space for an outdoor garden area is required. Growth
opportunities are sought in the existing market.
Silver
& Gold Trading Company, Inc.
dba
Silver & Gold Connection
William
Englebrecht
PO Box
157
Gibbsboro,
NJ 08026
609-346-3005,
Ext. 37, Fax 346-9858
Jewelry
The
49-unit chain operates locations in CT, DE, MD, MA, NJ, NY, NC, PA, RI, VA, WV and
Washington, D.C. The jewelry stores occupy
spaces of 160 sq.ft. to 200 sq.ft. in kiosk locations in regional malls. Preferred anchors include women's apparel stores. Plans call for as many as five openings in the
coming 18 months. Expansion will take place
within the existing markets. Preferred
demographics include a population of 250,000 within five miles earning $35,000 as the
average income. Leases running three to five
years are typical.
Rosin
Eyecare, Inc.
dba
Rosin Optical Co.
Ken
Monaco
6233
Cermal Road
Berwyn,
IL 60402
708-749-2020,
Fax 484-2139
Optical
The
nine-unit chain operates locations in IL. The
optical stores occupy spaces of 2,000 sq.ft. to 4,000 sq.ft. in strip centers. Growth opportunities are sought in the existing
market.
One
Hour Photo
Kathleen
Clagett
49
Rocheway/PO Box 3777
Youngstown,
OH 44513
330-758-0982,
Fax 758-0542
Photo
The
16-unit chain operates locations in FL, KY, OH and PA.
The stores, offering one hour photo processing services, occupy spaces of 1,200
sq.ft. in regional malls. Growth
opportunities are sought in the existing markets.
Boat
America Corp.
dba
Boat U.S. Marine Centers
Mark
Robinson
880
South Pickett Street
Alexandria,
VA 22304
703-823-9550,
Ext. 3317, Fax 461-4389
Specialty
The
42-unit chain operates locations nationwide. The
stores, which "sell everything but the boat itself," occupy spaces of 10,000
sq.ft. to 12,000 sq.ft. in freestanding facilities and strip centers. Plans call for as many as 15 openings during 1997. Expansion will take place nationwide.
Shaw's
Supermarkets, Inc.
dba
Shaw's Supermarkets
John
Kelleher
PO Box
942
South
Easton, MA 02375
508-894-7000,
Fax 894-7150
Supermarket
The
105+-unit chain operates locations in CT, ME, MA, NH and RI. The supermarkets occupy spaces of 50,000 sq.ft. to
60,000 sq.ft. in freestanding facilities and strip centers.
Growth opportunities are sought in the existing markets.
The
Dollar Tree Stores, Inc.
dba
Dollar Bills, Dollar Tree
Bob
Gurnee
2555
Ellsmee Avenue
Norfolk,
VA 23513
757-857-4600,
Fax 857-5240
Variety
The
737-unit chain operates locations in 26 states. The
stores, selling items at the fixed price point of $1, occupy spaces of 4,000 sq.ft. in
power and strip centers. Plans call for as
many as 150 openings in the coming 18 months. Expansion
will take place nationwide with the exception of the Northeast.
Exclusives:
Leasing & Management Assignments
Divaris
Group (757-497-2113) has been named the leasing and managing agent of Lakes Mall in
Lauderdale Lakes, FL. The 450,000 sq.ft.
power center is anchored by Sports Authority, Office Depot and Smart and Final. The company was also named the leasing and
managing agent of Severna Park Mall in Severna Park, MD.
The 252,300 sq.ft. project is anchored by Caldor and Giant.
Jeffrey
Realty (908-668-9600) has been named the exclusive tenant representative for Hollywood
Entertainment Corporation for its site selection in central and northern NJ. The company is seeking either end-cap or
freestanding 5,000 sq.ft. to 10,000 sq.ft. locations.
Sites must be in high traffic locations with supermarket or other
convenience-oriented neighboring tenants. Hollywood
Entertainment operates more than 450 locations nationwide.
The company has been named the exclusive tenant representative for Value Managment,
a Wendy's Franchisee, for its site selection in Middlesex and Monmouth counties in NJ. Land parcels of at least one acre are being sought
for a land lease, build to suit or purchase. Sites
must be in high-traffic locations with supermarket or other convenience-oriented
neighboring tenants. Value Management
currently operates more than 20 Wendy's restaurants.
The company has been named the exclusive tenant representative for El Rancho Foods,
Inc., a Taco Bell franchisee, for its site selection in central and northern NJ. Land parcels running at least one acre are being
sought for a land lease, build to suit or purchase. Sites
must be in high-traffic locations with supermarkets or other convenience-oriented tenants. The company is also the exclusive tenant
representative for Trader Joes for its site selection in central and northern NJ. Trader Joes is an upscale specialty food store
seeking sites of 5,000 sq.ft. to 10,000 sq.ft. in dense, upper income, highly educated
markets in close proximity to other supermarkets.
Mid-America
Real Estate Corp. (630-954-7300) has been retained by Service Merchandise for a fifth
subleasing/disposition of a 25,000 sq.ft. former Handy Andy space in Hoffman Estates, IL. The space is located at Golf Center which is
anchored by TJ Maxx and Harlem Furniture.
Michael
Salove Company (610-664-8100) is the tenant representative in the greater Philadelphia, PA
area for the following retailers: Bryn Mawr Stereo, seeking spaces running 8,000 sq.ft. to
12,000 sq.ft.; HMV Record Stores, seeking spaces running 8,000 sq.ft. to 25,000 sq.ft. in
regional locations anchored by national or entertainment-oriented tenants; Hollywood
Video, seeking freestanding or end cap spaces running 6,000 sq.ft. to 8,000 sq.ft. in
supermarket or other traffic generating tenants; NTW-National Tire Warehouse, seeking one
to two acres of land for a 9,000 sq.ft. to 12,000 sq.ft. building; Sears Auto Center,
seeking one to two acres of land for a 9,000 sq.ft. to 12,000 sq.ft. near Sears full-line
stores; Sears Homelife Furniture, seeking freestanding or end-cap spaces running 40,000
sq.ft. and Sears Hardware, seeking spaces running 25,000 sq.ft.
Terranomics
Retail Services, Inc. (415-474-6100) has been named the leasing and managing agent of
Preston Shepard Place Shopping Center in Plano, TX. The
363,000 sq.ft. project, which is expected to open during June, is anchored by MJ Designs,
Marshall's, Steinmart, Office Depot, Baby Superstore, Borders, HomePlace and Old Navy.
Metro
Commercial Real Estate, Inc. (609-866-1900) has been named the exclusive leasing agent of
Brandywine Town Center in Concord, DE. The
850,000 sq.ft. project is being developed by DelleDonne & Associates, Inc. on the site
of the former Brandywine Race Track and is expected to open during May 1997. Anchor tenants include Regal Theaters, Bed Bath
& Beyond and Nobody Beats The Wiz.