Issue Number 6 for the week of February 21, 1997
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The Dealmakers Issue Number 6 for the week of February 21, 1997.

 

My Way by Ted Kraus

Lately every time I read the newspapers or trade publications there's an article on some real estate company or retailer out-sourcing something or the other. It could be leasing, taxes, management, whatever. Recently, a large national retailer announced they were farming out its real estate tax management thereby being able to lay off an entire department that had decades of experience and did a decent job, replacing them with a "Property Tax Consulting" firm working solely on a contingency basis. Being the capitalist pig that I am, I'm not opposed to layoffs if they save the company money and make sense, but this was a true case of stupidity, since the company they gave the contract to has a minimum amount of experience in tax appeals (somehow giving a company with minimum experience a hundred million dollar account doesn't make sense). While we (TKO) use tax consultants whenever we manage a property (Rule #3 in real estate, taxes are always too high), "we" control the tax appeal process, not the consultants hired. We have "policies" that keep us in control, such as not allowing tax bills to go to their office, it comes to ours. You're looking for trouble when you allow legal notices to be sent anywhere but your office. Even if the outside company is great, we always want to be in the "loop."

This is not a case of payoff or part of the "good old boy" network, it's a case of a company not understanding what they're doing. The company pays hundreds of millions of dollars in taxes, so even a 10% savings amounts to big bucks. Why would you want anyone but your own people to control that much money. The company used tax consultants in the past, but their people also did some of the appeals, in addition to supervising the outside firms. Now it's all out of their control. In theory, they claim this will save millions of dollars in lower payroll, phone, overhead, etc; in reality it will cost 'em tens of millions of dollars since there will be no experienced in-house personnel to understand the history of the property or community or truly understand if the tax reduction is appropriate or too low. An outside "commissioned" company, that makes its money by saving the retailer taxes, in reality, will settle for almost any savings so they can go onto the next property if there is no one prodding 'em. The outside company will do a great job in year one, after that the retailer is up the creek.

I see the same problem occurring when companies farm out their leasing or management, they lose in 95% of the cases. Now don't get me wrong, I'm not opposed to exclusive brokers, management companies or use of real estate tax companies, that makes sense, but too many companies that utilize these firms end up giving them complete responsibility without proper supervision. It always amazes me when we get involved in a management assignment how little the person I report to at a client's office knows about what I'm doing, yet I'm involved in a multi-million dollar project that can sometimes cost (or make) the company hundreds of thousands to millions of dollars. I "trust" my 11-year-old son, but you better believe I also provide lots of supervision.

On a different topic, the end of the outlet industry is closer than I thought. In a recent issue of Value Retailing News, the "Bible" of the outlet industry (800-669-1020), Steven Tanger, President and COO of the Tanger Factory Outlet Centers (a REIT), one of the larger outlet developers, talked about the future of the industry with the focus of his entire discussion being on Wall Street and its perception of the business. He said that the biggest challenges facing the outlet industry was gaining credibility on Wall Street. When a company starts to worry more about Wall Street than its customers (the outlet retailers) or his customers' customers (the consumer) you know that's the end of the company and possibly the industry. He wasn't the least bit concerned that many outlet retailers no longer offer the customer value or that most centers are boring, only how will Wall Street's perception affect the value of his stock.

The retailers and developers that will survive and prosper into the 21st century (only three years away) are the ones that practice and implement the fundamentals of the business, such as customer service, selection, having items in stock, etc. How many retailers really have a formal training program in place for their new employees? Few, very few. How many executives in development firms spend time at their centers, walking the property and talking to their tenants? Few, very few. How many developers will turn down a $17 psf rent from tenant "A" to make a lower rent deal with tenant "B" who is better for the tenant mix? Few, very few. How many centers have you visited in the last year that impressed you with the quality of stores, layout and design? Few, very few I'm willing to bet.

Parting comments... 500, 1,000 or 1,500 retailer's leads are not enough. Over the last few weeks I've been talking to the "tech" support people at some major development firms. Most of the conversation was "nerd talk" and unless you're into computers, very boring, but because these are support people, not leasing people, they tend to say more than they should. The first MIS person I spoke to informed me they had a data base of 500 retailers their leasing department uses. I was shocked to hear it, since this is a rather large company and I assumed they have thousands of potential leads, 500 is nothing. This company spends tens of thousands of dollars a year on advertising, has a humongous booth in Vegas, maintains a beautiful office and yet does not spend the time, effort or money to maintain a decent database of potential tenants. They should have every retail directory published and a CD-ROM of the Nation's Business Yellow Pages. They should also have someone in-house coordinating the database between all their leasing personal.

After that conversation, I started to ask the MIS person in other companies about the size of their databases. They all responded with numbers between 500 and 1,500. I couldn't believe it. RD Management, a company I work with, maintains a database of 20,000 +/- retailers that is networked between all their leasing people. The information is updated every time a company is called for everyone's benefit. In addition, notes explaining when the person was called and their interest in a particular property is noted. Whenever MaryAnn Saverese, their VP of Leasing, wants an "update" on leasing, she can just log onto the network and see what her people are doing. That's the way it should be. Sure, there many are other companies that do it as well or better than RD, but they're the exception, not the rule. It makes no sense to me how a company expects to fill vacancies if they don't have potential tenants to call.

In the '60s and '70s deals were done on a handshake, construction was started with without an executed lease and it worked, there were few lawsuits and 99% of the people, both developer and retailer kept their word. Today, it's a different world and I highly recommend that no one believe a deal is "deal" until the lease is signed, the tenant moves in and pays rent (and for brokers, the commission is paid). But the amount of unprofessionalism in our industry seems to be increasing. A friend of mine told me they had made a deal with a national tenant, negotiated the lease and sent it out for a signature. They waited a week, followed up and were assured it would be signed. The same was said two weeks, six weeks and four months later. Needless to say, the lease was never executed nor did the retailer ever have the courtesy or was professional enough to call and say the deal was "dead" (unfortunately deals die, that we all accept). Well it's been a year since it all started and the low life who heads the retailer's real estate hired an assistant who ends up calling the developer and says they now want to do the deal.

Well, to say the least, the developer was not a happy trooper, explained the history to the assistant and while still willing to do a deal (let's not get carried away with principle), wanted a premium for the space (a different location than the original deal, the original space was leased. The center is good, but does have turnover). When the vice president for the retailer heard what the developer wanted, he went berserk, complaining about the "unprofessionalism" of the developer and how they won't deal with a company that acts that way. This a 2,000 sq.ft. tenant, and while all retailers are desirable, they won't make or break a center. So it looks like no deal will be done. It's a shame the moron couldn't have just picked up the phone in the first place, none of this would have transpired.

 

Retailers Seeking Midwestern Sites

Elek-Tek, Inc. trades as Elek-Tek at eight locations in CO, IL, IN and KS. The computer stores occupy spaces of 3,500 sq.ft. in strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Mike Martinez, Elek-Tek, Inc., 7350 North Linder, Skokie, IL 60077; 847-677-7660.

The Video Connection operates 105 stores throughout IN, MI and OH. The video stores occupy spaces of 3,000 sq.ft. to 8,000 sq.ft. in freestanding facilities, power and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Bob Estridge, The Video Connection, 3123 West Sylvania Avenue, Toledo, OH 43613; 419-472-7727, Fax 472-2655.

D.I.Y. Home Warehouse, Inc. trades as D.I.Y. Home Warehouse at 16 locations in OH. The home improvement stores occupy spaces of 83,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market.

For more information, contact Scott Eynon, D.I.Y Home Warehouse, Inc., 5811 Canal Road, Suite 180, Valley View, OH 44125; 216-328-5100, Fax 328-5134.

Thrifty White Stores trades as Thrifty Drug and White Drug Stores at 50 locations in IA, MN, MT, ND and SD. The drug stores occupy spaces of 10,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Kevin Hoffman, Thrifty White Stores, 10700 Highway 55, Minneapolis, MN 55441; 612-513-4300, Fax 513-4380.

Kittle's Home Furnishing Center, Inc. trades as Kittle's and Kittle's Ethan Allen at 12 locations throughout IN and OH. The furniture stores occupy spaces of 25,000 sq.ft. to 100,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Kathy Kish, Kittle's Home Furnishing Center, Inc., 8600 Allisonville Road, Indianapolis, IN 46250; 317-849-5300, Fax 577-2485.

Braude Jewelry Corp. does business as Page Jewelers at 21 locations in IL, IA, MI, MN and WI. The jewelry stores occupy spaces of 900 sq.ft. in regional malls. Plans call for two openings in the coming 18 months. Expansion will take place within the existing markets.

For more information, contact Ken Braude, Braude Jewelry Co., 211 East Ontario, Chicago, IL 60611; 312-988-4520, Fax 988-9759.

Kirlin's, Inc. trades as Kirlin's Hallmark at 95 locations in IL, IN, IA, KY, MI, MO, OH, OK, TN and WI. The stores, selling cards, gifts and candy, occupy spaces of 3,000 sq.ft. to 5,500 sq.ft. in regional malls and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Dale Kirlin, Jr., Kirlin's, Inc., 532 Maine Street, Quincy, IL 62301; 217-224-8953, Fax 224-9400.

Speedy Lube operates nine locations in IL, IN and WI. The automotive service centers, offering 10 minute oil changes, occupy spaces of 1,200 sq.ft. in freestanding facilities and pad sites at strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Larry Boe, Speedy Lube, c/o Site Finders, Ltd., PO Box 1385, Waukesha, WI 53187-1385; 414-574-0088, Fax 524-7950.

Myron's Hallmark trades as Myron's Hallmark and Evenson's Hallmark at 32 locations in IA, MN, SD and WI. The stores, selling cards and gifts, occupy spaces of 4,500 sq.ft. in regional malls, power and strip centers. Plans call for five openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Clayton Johnson, Myron's Hallmark, 4653 Chatsworth Street, Shoreview, MN 55126; 612-482-8511, Fax 482-8680.

U.S. Factory Outlets, Inc. trades as U.S. Factory Outlets at 24 locations nationwide. The stores, selling apparel and general merchandise, occupy spaces of 30,000 sq.ft. to 52,000 sq.ft. in regional malls, outlet, power and strip centers. Plans cal 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.

 

Who's Opening and Where...

Tiffany & Co. (212-605-4696) plans to open a 6,000 sq.ft. store at Stanford Shopping Center in Palo Alto, CA during Spring.

Coldwater Creek, Inc. (208-263-2265), an apparel catalog retailer, plans to open its first Coldwater Creek retail store in Jackson Hole, WY during Spring. The company is planning to open as many as 10 retail stores.

Auto Palace (508-587-8400), which currently operates 100 Auto Palace automotive parts stores in New England, plans to open an additional 100 stores within five years.

Wal*Mart Stores, Inc. (501-273-4000) plans to open a 120,000 sq.ft. store at a former HomeBase location at Delta Oaks Shopping Center in Eugene, OR during early Summer.

Bed Bath & Beyond (201-379-1750) plans to enter the Pittsburgh, PA market this year with a store near Village Square Mall in the South Hills section of the city. A second store is planned for the North Hills section of city as well.

Circuit City Stores, Inc. (804-527-4000) plans to open a 23,652 sq.ft. store at a former Silo location near Tacoma Mall in Tacoma, WA during Summer.

Checkers Drive-in Restaurants, Inc. (813-441-3500) plans to open 50 restaurants this year.

White Castle System, Inc. (614-228-5781) and Churchs Chicken, a division of America's Favorite Chicken Co. (404-391-9500), plan to open 30 dual-branded restaurants nationwide this year.

Goddard School for Early Childhood Education (800-272-4901) recently opened a child-care center in Columbia, MD. The company is planning to open as many as five units in Montgomery County, MD and Fairfax County, VA this year.

Paper Warehouse (612-936-1000) opened 10 corporate and seven franchised stores during the fourth quarter last year. Plans call for the opening of two corporate and 15 franchised stores this year.

Muvico Theaters, Inc. (954-564-6550) plans to build an 18-plex movie theater at the site of its present six-plex theater in Pompano, FL. The theater is expected to open during Fall. In addition, the company is developing Muvico Pointe 21 Theaters in Orlando, FL. The complex features 20 auditoriums plus a 500-seat IMAX 3D PSE theater. The project is expected to open during Summer.

Lowe's Companies, Inc. (910-651-4223) recently opened home improvement stores in Richmond, VA; Frankfort, KY; Vero Beach, FL and Carbondale, IL. The openings increase the company's store count to 402 units nationwide. The company's goal is to be operating 600 stores by the year 2000.

Home Depot (770-433-8211) plans to open a store in Santiago, Chile during the first half of 1998. It will be the company's first unit outside of North America. To facilitate the company's entry into South America, Home Depot has signed a letter of intent to form a joint venture with Falabella, a leading department store retailer in Chile. Home Depot's controlling share of the venture will be 66.67 percent. The company also recently opened its first two St. Louis, MO area stores in Brentwood and O'Fallon, MO. Both stores average 113,000 sq.ft. with 18,000 sq.ft. garden centers.

 

New Construction

Developers Diversified is currently constructing an addition to Apple Blossom Corners in Winchester, VA. The addition will house a 92,621 sq.ft. Kohl's store, a 23,350 sq.ft. OfficeMax and a 20,000 sq.ft. Books-A-Million store. These stores join a 53,836 sq.ft. Martins Foods and 43,016 sq.ft. of miscellaneous retail space. The new anchors are expected to open during Spring. The company also plans to remodel the existing shopping center beginning this Spring.

For more information, contact Susan Schaaf at (216-247-1740).

Vector Properties, Inc. recently broke ground on a 352,000 sq.ft. power center in downtown Tulsa, OK that will connect a new Sears store with an existing Target store. Construction of the 180,000 sq.ft. bi-level Sears store is underway as is the construction of a 77,000 sq.ft. Reasor's Foods store adjacent to Target. A 58,000 sq.ft. retail space will be constructed between Target and Sears. The existing Sears store, which will remain open until the new building is ready, will be demolished to create a parking lot. In addition to the department stores and supermarket, space for four restaurants will also be constructed. The project is expected to be completed during Spring 1998.

For more information, contact Vector Properties at (918-587-1700).

L.F. Jennings, Inc. recently received the contract for the construction of an addition to Seven Corners Shopping Center in Falls Church, VA. The contract calls for replacing the vacant Woodworth and Lothrop store with a two level facility. The top level, facing Route 7, will house a Shoppers Food Warehouse and the lower level, facing Route 50, will house a Home Depot. The company also recently received a contract for the redevelopment of The Hamlets at Mark Center in Alexandria, VA. Plans for the new center, which will be renamed The Shops at Mark Center, include the demolition of the existing CVS store, an adjacent retail building and the canopy facade at Giant Food. After the demolition is complete, an 8,800 sq.ft. CVS store and a 3,700 addition to the Giant Food store will be constructed, along with 22,000 sq.ft. of additional retail space and a new bank building.

For more information, contact Mike Killelea at (703-241-1200).

Trammell Crow Central Texas Ltd. recently broke ground on Alamo Quarry Market in San Antonio, TX. The 530,000 sq.ft. project, which is being built on the former site of Alamo Cement Co. and will incorporate the former buildings and landmark smokestacks, will be anchored by Borders Books and Music, Whole Foods Market, Whole Earth Provision Co., OfficeMax and a 16-screen Act III movie theater. The top floors of the four-story Clinker Building, so named for the clinking sound pebbles make when they are mixed with cement, will house the movie theater with the bottom floors occupied by Borders and Bally Total Fitness Health Club. The Rock Crusher Building will contain Canyon Cafe, a Southwestern-style restaurant and the former power generator building will be rebuilt for other retail uses. Alamo Cement first occupied the site in 1908 and moved to its present location on the north side of San Antonio in 1982. In recent years, the area around the old plant has started to develop into an upscale retail district. The former plant office is home to a trendy restaurant and the former quarry contains the back nine of Quarry Golf Club.

For more information, contact Bob Barnes at (214-979-5100).

Forest City Development California plans to develop a two-level, enclosed mall and entertainment complex in Temecula, CA. Scheduled to open during Fall 1998, phase I will encompass 782,000 sq.ft. and will be anchored by Sears, J.C. Penney, Robinson-May and an unnamed fourth anchor. Space for 100 specialty shops will also be constructed. A second phase adjacent to phase I will include additional retail shops and restaurants as well as a 255,000 sq.ft. power center.

For more information, contact Brian Jones at (213-488-0010).

 

Store Closings

Old America Stores, Inc. (903-532-6645) took a fourth quarter charge of $4.6 million to write down the costs associated with closing or relocating 16 stores and discontinued merchandise. The company, which sells floral and craft items, recently repositioned its stores and developed a new store format in an effort to boost sales.

Jacobson Stores, Inc. (517-764-6400) plans to close its stores in Dearborn, Jackson and Kalamazoo, MI. The three stores account for less than seven percent of the company's annual sales and have not been profitable.

Petrie Retail, Inc. (201-866-3600) plans to close its 13 Resource stores in the Indianapolis, IN market. The stores, which were former Stuart stores, have been open for less than a year and are part of a group of 116 stores scheduled to close nationwide. Petrie, which is operating under Chapter 11 protection, currently operates 526 stores. At the time of its bankruptcy filing the company was operating 1,675 stores.

Shoney's, Inc. (800-626-5630) recently closed its restaurants in Merrillville and Valparaiso, IN. The two IN units are part of the company's plan to close 55 under performing restaurants nationwide.

Revco D.S., Inc. (216-425-9811) plans to close 24 former Big B drug stores in GA. In announcing the closures, Revco said that the former Big B stores do not meet Revco's guidelines for profitability and return on investment. Stores targeted for closing are located in Atlanta, Cumming, Macon, Milledgeville, Lawrenceville, Hephzibah, Stone Mountain, Martinez, Riverdale, LaFayette, East Point, Perry, Lithonia, Buford, College Park, Augusta, Winder, Jonesboro and Carrollton.

Pizza Hut (817-545-3495) recently closed a company-owned restaurant in downtown State College, PA. The unit, which opened in 1983, was closed because it was not profitable. The store, which has limited parking, was forced to rely on walk-in traffic.

Egghead, Inc. (509-922-7031) plans to close 77 of its 156 stores nationwide as part of its restructuring.

 

Discovery Zone Plans To Exit Chapter 11 Next Month

Discovery Zone, Inc. (305-627-2400), which filed for bankruptcy on March 25, 1996, was recently granted an extension to assume or reject its unexpired leases at its remaining stores. The new date set by the bankruptcy court is April 15, 1997 and the company anticipates emerging from Chapter 11 during late next month.

At the time of its Chapter 11 filing, the company operated and franchised 303 Discovery Zone FunCenters in 34 states and Puerto Rico and the book value of its assets were approximately $164 million. Between the original petition date and late December, the company had rejected more than 75 leases and closed those stores. In addition, the company, through its retail consulting company, Retail Consulting Services, Inc., has renegotiated approximately 60 leases which has resulted in a $375,000 per month savings. Also, many of the leases were renegotiated without having to assume most of those leases. However, some lessors have refused to grant the company any rent relief, and depending on the financial performance of the stores, some were closed and had their leases rejected. The company has assumed the leases of certain stores, especially those that generated above average revenue or where the company determined that there was a risk that the leases would be considered to have been terminated pre-petition.

Discovery Zone also retained the services of DJM Asset Management, Inc. to evaluate the leases for any assignment or subletting opportunities. DJM reviewed approximately 15 leases and found them all to be either at or above market. Subsequently, Discovery Zone concluded that the assumption of those leases for the sole purpose of assignment or subletting would not benefit the company's estates or creditors. The company is looking to DJM to maximize the value of its remaining leases.

In an attempt to maximize its enterprise value for the benefit of the unsecured creditors and parties in interest, Discovery Zone has been engaged since late Summer in a two-pronged process concerning a plan of reorganization which involved (1) negotiating with the company's largest unsecured creditor, Birch Holdings, LLC, with respect to a plan of reorganization sponsored by Birch, and (2) identifying and negotiating with potential strategic partners, acquirors and investors with respect to a transaction which would serve as the foundation of a plan of reorganization, also known as the M&A Process. So far the M&A Process has not been successful due to the fact that no written offers or bids from any third party have been received.

The company is studying its remaining 200+ leases to determine whether the stores would be profitable and viable. Assumption of these leases would require payment of pre-petition charges and other cure claims, which the company estimates would cost approximately $3.9 million.

The company's reorganization plan provides, as a condition of its effectiveness, that all administrative claims, including cure claims for leases that have been assumed, must be satisfied and they are working to obtain the necessary financing. However, if the company is required to assume the leases before the effective date of the plan, they will not have sufficient financing to assume the leases for those FunCenters which the reorganized company will operate under its business plan. Assumption of those leases at this time will require a cash payment totalling several million dollars, something which the company is not in a financial position to do at this time. Currently, the company continues to meet its post-petition obligations under the leases and have paid the stub portions of the rent due post-petition for March 1996 and the rent and CAM charges for April through December 1996. The company also intends to continue fulfilling its post-petition obligations under the leases.

Despite these efforts, the company has not generated revenue comparable, on a store-by-store basis, to that generated during 1995. The company's losses increased between September and December and they required additional post-petition financing to meet its obligations due last month. However, the company remains confident that the cash advances received under its loan agreement will permit continued operations pending its planned emergence from Chapter 11 late next month.

 

Edison Brothers Opens 74 Stores during 1996

Edison Brothers Stores, Inc. (314-331-6000), which has been operating under Chapter 11 protection since November 1995, opened 74 new stores during 1996 and invested $13 million in relocation, remodeling and upgrading efforts on its existing stores. Continued expansion and existing store improvements are planned for this year, although exact numbers are still undetermined. However, the company said that expansion plans will focus primarily on its 5-7-9 Shops, REPP Ltd. Big & Tall menswear stores and Wild Pair footwear stores. The company also plans to expand its successful experimental concept, Shifty's, which sells fashion apparel, footwear and accessories to teenage boys and girls.

Edison Brothers, which in addition to the 5-7-9 Shops, REPP Ltd. Big & Tall, Wild Pair and Shifty's stores, also operates the chains trading as JW/Jeans West, Coda, Oaktree and J. Riggings apparel stores; Bakers, Leeds and Precis footwear stores and Terrasystems, an experimental concept. The company formerly operated Edison Brothers Mall Entertainment and Horizon Entertainment, a chain of mall-based arcades trading as Time-Out/Space Port, which was sold to Namco Cybertainment, Inc. a year ago. Additionally, since November 1995, the company has closed 750 underperforming stores and currently operates approximately 1,500 mall-based stores.

The company's overall bottom line has been improving and during its second quarter, which ended October 1996, the company lost $5.8 million which was a 53% improvement over the $12.3 million loss it posted just prior to entering Chapter 11 protection. Helping to lead the company back to profitability is its 5-7-9 Shops and REPP Ltd. stores. The 5-7-9 Shops, which sell fashions and accessories to teenage girls, has achieved 16 consecutive months of increased same-store sales and its profitability is up significantly. This year the company plans to add footwear to select stores on a test basis. REPP Ltd. stores has converted 50 of its stores to a new "showcase" concept which has helped the chain become a dominant figure in the men's big and tall category. The showcase concept includes new lifestyle departments featuring denim, American khaki and dress up, in addition to enhanced lighting and furniture. Plans call for the conversion of the remaining 100 REPP stores this year. The company plans to emerge from Chapter 11 during mid-1997.

 

Buyers & Sellers of Commercial Properties

MBK Northwest, a division of MBK Real Estate Ltd., recently acquired SeaTac Village in Federal Way, WA and Meridian Village in Bellingham, WA. The 153,000 sq.ft. SeaTac Village is anchored by Payless Drugs, T.J. Maxx and Big 5 Sporting Goods. It is located across from the 737,000 sq.ft. SeaTac Mall and was acquired for $10.84 million. The 145,637 sq.ft. Meridian Village is anchored by Circuit City and Payless Drugs. It is located across from the 900,000 sq.ft. Bellis Fair Mall and was acquired for $6.9 million.

For more information, contact MBK Real Estate at (714-789-8300), Fax (789-8345).

Bradley Real Estate, Inc. recently acquired four shopping centers in the Midwest for a total of $25 million. The acquisitions include: Martin's Bittersweet Plaza, a 78,000 sq.ft. project anchored by Martin's Supermarket and Osco Drug in Mishawaka, IN; Santa Fe Square, a 134,000 sq.ft. project anchored by Schnucks Grocery in Olathe, KS; Warren Plaza, a 90,000 sq.ft. project anchored by Hy-Vee Foods in Dubuque, IA and Roseville Center, a 77,000 sq.ft. project anchored by Rainbow Foods Supermarket in Roseville, MN.

For more information, contact Thomas D'Arcy at (847-272-9800).

Onmi Equities Ltd. is in the market to acquire shopping centers, enclosed malls, power and strip centers having GLAs of at least 100,000 sq.ft. nationwide, with an emphasis on CA, CT, FL, NJ, NY, PA and TX.

For more information, contact David Silberstein at (718-972-9191), Fax (972-9110).

Quadrelle Realty Services has the listing to sell a 90,000 sq.ft. neighborhood shopping center in upstate NY. The project is anchored by a supermarket and drug store.

For more information, contact Lisa Loscalzo at (914-834-2600, Ext. 105), Fax (834-2002).

U.S. Equities Realty, Inc. represented a public real estate limited partnership in its sale of Sunrise Mall in Brownsville, TX to Dillard's. The 420,000 sq.ft. project is anchored by Beall's, Kmart and Sears. Under its acquisition plan, Dillard's will open a store at the mall as well as redevelop and expand the project.

For more information, contact U.S. Equities Realty, Inc. at (312-456-7000).

Realty Executives Commercial Broker represents a buyer in the market to acquire anchored shopping centers nationwide. Properties of interest have GLAs of at least 100,000 sq.ft. The buyer also prefers to purchase older centers with ups in leases.

For more information, contact Robert Hansen at (602-933-4337), Fax (933-0695).

Raymond Betz Brokerage represents a client actively seeking net leased retail properties nationwide. Leases having 10+ years remaining are preferred and prices from $2 million to $100 million are preferred. The company also represents an investor looking to acquire performing first lien notes on commercial properties. Prices from $2 million to $100 million are preferred.

For more information, contact Larry Marks at (713-892-5015, Ext. 228), Fax (892-5300).

CB Commercial Real Estate Group brokered the sale of Southfield Plaza in Bridgeview, IL. The 207,000 sq.ft. project, which is anchored by Dominick's Finer Foods, Walgreens and Value City Furniture, was sold to New Plan Realty Trust by General American Life Insurance Company. The asking price had been $7.9 million.

For more information, contact Bob Mahoney at (847-706-4949).

Woodmont Companies is in the market to acquire shopping centers nationwide. Properties of interest have nine percent cap rates with upside potential and must include credit anchor tenants or potential to draw credit anchors. Portfolios are also preferred.

For more information, contact J.C. Burciaga at (817-377-7794), Fax (735-4738).

Madison Realty Group, Inc. recently acquired Great Woods Marketplace in Norton, MA. The 120,043 sq.ft. project is anchored by CVS Pharmacy and Roche Bros. Supermarkets. The company is also in the market to acquire retail centers located east of the Mississippi River. Properties of interest have a regional or national credit anchor tenant and a GLA between 50,000 sq.ft. and 350,000 sq.ft.

For more information, contact Sean Barnes at (412-281-1880), Fax (281-5772).

Bennett Williams, Inc. has the listing to sell 5.4 acres of land in Lancaster, PA. The site is located near a proposed Wal*Mart store just off Route 222. The asking price is $395,000. The company also has the listing to sell 3.1 acres of land in Lancaster, PA. The site is located across from a new Wal*Mart just off Route 30. The asking price is $795,000.

For more information, contact Rich Wolman at (717-390-9858), Fax (390-9860).

Duke Realty Investments, Inc. is in the market to acquire strip shopping centers having GLAs of at least 75,000 sq.ft. in primary and secondary metropolitan markets of IL, IN, KY, MO and OH. Projects having expansion, renovation and remerchandising upside are preferred.

For more information, contact Larry Myrvold at (800-875-3366), Fax (317-574-4013).

Hiffman Shaffer Associates represented Sparkle Car Wash in its acquisition of eight former National Pride car wash facilities in the Chicago, IL market. The eight properties total 249,536 sq.ft. and were acquired for $2.46 million. The sites acquired include: a 51,705 sq.ft. site in Schaumburg; a 39,680 sq.ft. site in Villa Park; a 34,402 sq.ft. site in Niles; a 31,515 sq.ft. site in Palatine; a 24,700 sq.ft. site in Chicago; a 23,739 sq.ft. site in Chicago; a 23,739 sq.ft. site in Lombard and a 20,056 sq.ft. site in Evanston.

For more information, contact Marc Rubin at (312-332-3555).

Holliday Fenoglio Dockerty and Gibson represented Ameresco Advisors, Inc. in its sale of Oakbrook Square Shopping Center, a 211,569 sq.ft. project located in Palm Beach Gardens, FL.

For more information, contact Jack Crews, Barry Brown or Jim Batjer at (214-265-0880).

 

Financial News...

Hi-Lo Automotive, Inc. (713-663-6700) reported that its sales for 1996 fell 5.3% to $248.6 million from $262.5 million during 1995. Last year's net loss was $53.7 million, primarily attributed to store closings and charges, compared to 1995's net income of $1.7 million. Comparable store sales were down seven percent for the year. The company currently operates 190 auto parts stores in CA, LA and TX.

Mothers Work, Inc. (215-625-9917) reported that its first quarter net sales increased 22.3% to $61.2 million from $50.1 million during the first quarter last year. The increase was primarily due to sales generated from the acquisition of Episode America stores last year. Comparable store sales for the quarter increased 6.2%. During the quarter, the company opened 29 stores, including 15 leased departments, closed one store and converted one store to end the quarter with 496 stores, including 41 leased departments. The company trades as Motherhood Maternity, Maternite, Mimi Maternity, Maternity Works, A Pea in A Pod and Episode.

PepsiCo., Inc. (914-253-2000) recently announced that it plans to spin-off its restaurant business into a publicly-traded company. The new company will include Pizza Hut, Taco Bell and Kentucky Fried Chicken and will rank number one in units with approximately 29,000 restaurants worldwide generating more than $20 billion in sales annually. The formation of the new company is expected to take place before the end of the year.

Boston Chicken, Inc. (303-384-5172) reported that its company revenues for 1996 increased 66% to $264.5 million from $159.4 million during 1995. Net income for the year increased 100% to $66.9 million from $33.5 million. At the end of the year, the company operated 1,087 Boston Market restaurants in 38 states. The company's goal is to be operating more than 3,600 locations within five to seven years.

CompUSA, Inc. (972-982-4000) reported that net sales for its second quarter increased 22% to $1.2 billion from $983 million during the second quarter last year. Net income was up to $23.7 million from $18.7 million and comparable store sales increased 1.5% for the quarter. The company currently operates 122 stores in 55 major metropolitan markets nationwide.

OfficeMax, Inc. (216-295-6411) reported that its 1996 sales increased 25% to $3.179 billion from $2.543 billion during 1995. Comparable store sales for the year were up 11%. During the year, the company opened 96 OfficeMax superstores, 410 CopyMax units and 70 FurnitureMax stores to end the year with 564 superstores, 418 CopyMaxes and 94 FunitureMaxes. Expansion plans for 1997 include the opening of as many as 150 superstores, eight superstores in Mexico and the creation of an infrastructure to open the first of 200 stores planned for Japan.

Kmart Corp. (810-643-1000) plans to refinance approximately $400 million in corporate debt through a single cross-collateralized mortgage on 90 unencumbered properties nationwide. The move will help the company's balance sheet, which is loaded down by $3.7 billion in debt.

 

Convenience Stores Looking for New Sites

Consun Food Industries, Inc. trades as Convenient Food Mart at 32 locations in OH. The convenience stores, some of which also sell gasoline, occupy spaces of 5,000 sq.ft. in neighborhood strip centers. Growth opportunities are sought in the existing market.

For more information, contact Roger McVetta, Consun Food Industries, Inc., 123 North Gateway Boulevard, Elyria, OH 44035; 216-322-6301.

Crystal Flash Petroleum Co. trades as Crystal Flash at 26 locations throughout IN. The convenience stores, which also sell gasoline, occupy spaces of 1,500 sq.ft. to 3,500 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market.

For more information, contact Debra Baker, Crystal Flash Petroleum Co., 5221 Ivy Tech Drive, Indianapolis, IN 46268; 317-879-2849, Fax 879-2855.

The Rhodes Companies does business as Rhodes 101 Stop and Rhodes Travel Stop at 15 locations in MO. The convenience stores, which also sell gasoline, occupy spaces of 3,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market.

For more information, contact Paul Dirnberger, The Rhodes Companies, 3140 Nash Road, Scott City, MO 63780; 573-334-7733, Fax 334-2578.

Schmuckal Oil Co. trades as Shell Mini-Mart at 21 locations in MI. The convenience stores, which also sell gasoline, occupy spaces of 1,800 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market.

For more information, contact Paul Schmuckal, Schmuckal Oil Co., 1516 Barlow, Traverse City, MI 49684; 616-946-2800, Fax 941-7435.

Welsh Oil, Inc. trades as Welsh Oil at 85 locations in MI, IN and VA. The convenience stores, which also sell gasoline, occupy spaces of 1,800 sq.ft. in freestanding facilities. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact John Howard, Welsh Oil, Inc., 800 East 86th Avenue/ Box 10725, Merrillville, IN 46411; 219-791-4300, Fax 791-4329.

 

Lead Sheet

BC Clothing Co.

dba Sharky's

Susan Savalle

175 South Saginaw

Pontiac, MI 48342

810-335-5300, Fax 335-3282

Apparel

The eight-unit chain operates locations in MI. The stores, selling junior apparel, occupy spaces of 1,500 sq.ft. in regional malls. Plans call for three openings in the coming 18 months. Expansion will take place in the existing market.

Cotton Island Clothing Co.

dba Cotton Island Clothing

Susan Savalle

175 South Saginaw

Pontiac, MI 48342

810-335-5300, Fax 335-3282

Apparel

The 60-unit chain operates locations in FL, IL, IN, MI and OH. The company operates seasonal kiosks, occupying 100 sq.ft. in regional malls, primraily during Summer and the Christmas season. Plans call for 100 temporary openings in the coming 18 months. Expansion will take place in the existing markets.

Gilmore Brothers, Inc.

dba The Acorn

Steve Phillips

143 South Kalamazoo Mall

Kalamazoo, MI 49007

616-373-2540, Fax 345-0212

Apparel

The 28-unit chain operates locations in MI, IN, OH, KY, WI, NC and SC. The stores, selling apparel, accessories and cosmetics, occupy spaces of at least 3,000 sq.ft. in regional malls and specialty centers. Growth opportunities are sought in the existing markets.

Glik Stores

dba Glik's, $10 and Less, Glik Sports

Joe Glik

3248 Nameoki Road

Granite City, IL 62040

618-876-6717, Fax 876-7819

Apparel

The 52-unit chain operates locations in IL, IN and MO. The company operates three concepts; Glik's sells men's and women's sportswear; $10 and Less sells one price clothing; and Glik Sports sells athletic sportswear, while occupying spaces running 3,000 sq.ft. to 5,000 sq.ft. in strip centers. Preferred anchors include Wal*Mart. Plans call for seven openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 12,000 within five miles earning $25,000 as the average family income. The company prefers a vanilla shell with typical leases running five years. The company cites Fashion Bug, Maurice's and Cato as competition.

The Hang Up Shoppes, Inc.

dba Man Alive

Jeff Bublick

5745 West 80 Street

Indianapolis, IN 49022

317-337-2121, Fax 337-2127

Apparel

The 30-unit chain operates locations in IL, IN, MI and OH. The stores, selling young men's fashion apparel, occupy spaces of 2,500 sq.ft. in regional malls. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing markets as well as in KY.

RCC Western Stores, Inc.

dba RCC Western Stores

Jeff Pooley

PO Box 1139

Rapid City, SD 57709

605-342-5223

Apparel

The 20-unit chain operates locations in IA, IN, KY, MN, ND, SD and WI. The stores, selling Western-style apparel, boots, hats and saddles, occupy spaces of 2,500 sq.ft. to 4,000 sq.ft. in regional malls. Growth opportunities are sought in IL, IN, MN, MO and WI.

Saffee's, Inc.

dba Saffee's

Mark Mercurio

397 Highway 54, Suite B

Osage Beach, MO 65065

573-348-4755, Fax 348-6185

Apparel

The six-unit chain operates locations in KS and MO. The stores, selling ladies apparel, accessories and cosmetics, occupy spaces of 3,000 sq.ft. in downtown store fronts. Growth opportunities are sought in the existing markets.

Top Hat Tuxedo

Tom Mavris

938 East Georgia

Indianapolis, IN 46202

317-639-6060, Fax 639-6709

Apparel

The eight-unit chain operates locations throughout IN. The apparel stores occupy spaces of 1,200 sq.ft. in freestanding facilities and regional malls. Growth opportunities are sought in the existing market.

Lee's Beauty & Barber Supply

Su-Myong Lee

14777 West Seven Mile Road

Detroit, MI 48235

313-272-4000, Fax 272-4005

Cosmetics

The 15-unit chain operates locations in MI. The stores, selling health and beauty supplies for men and women, occupy spaces of 4,000 sq.ft. to 5,000 sq.ft. in strip centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in MI with a possibility of expansion into IN and OH.

Castle Rose, Inc.

dba Mickey Finn's Sports Cafe

John Vonnes

207 Galvin Road North

Bellevue, NE 68005

402-291-2174, Fax 291-2345

Food

The seven-unit chain operates locations in NE. The restaurants occupy spaces of 4,000 sq.ft. in strip centers. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place in the Midwestern region.

Consolidated Products, Inc.

dba Steak-N-Shake

Jim Richmond

500 Century Building 36 S. Penn

Indianapolis, IN 46204

317-633-4100, Fax 633-4105

Food

The 216-unit chain operates locations in FL, GA, IL, IN, KS, KY, MO, OH and TN. The family restaurants occupy spaces of 3,600 sq.ft. in freestanding facilities. Plans call for as many as 25 openings in the coming 18 months. Expansion will take place in existing markets.

Italian Express Franchise Corp.

dba Pizzas By Marchelloni

Allen Mairkani

1051 Essington Road, Suite 270

Joilet, IL 60435

815-729-4494, Fax 729-4508

Food

The 49-unit chain operates locations in AZ, IL, IN, PA and WI. The restaurants, serving pizza, sandwiches, pasta and chicken wings, occupy spaces of 1,000 sq.ft. to 3,000 sq.ft. in strip centers. Plans call for 15 openings in the coming 18 months. Expansion will take place in the existing markets.

The Manhattan Bagel Co.

dba Manhattan Bagel

William Dentato

246 Industrial Way West

Eatontown, NJ 07724

908-544-0155, Fax 544-1315

Food

The 294-unit chain operates locations nationwide and in Canada. The bagel stores occupy spaces of 1,600 sq.ft. in downtown store fronts, freestanding facilities and strip centers. Plans call for 180 openings in the coming 18 months. Expansion will take place nationwide with an emphasis on OH and other Midwestern markets. The company is franchising.

National Coney Island, Inc.

dba National Coney Island

James Giftos

27947 Groesbeck Highway

Roseville, MI 48066

810-771-7744, Fax 775-9609

Food

The 12-unit chain operates locations in MI. The fast food restaurants, serving hot dogs and chili, occupy spaces of 500 sq.ft. to 3,000 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 market.

Roselyn Bakeries, Inc.

dba Roselyn Bakeries

Jeff Clark

2425 East 30th Street

Indianapolis, IN 46218

317-925-8901

Food

The 41-unit chain operates locations throughout IN. The full-line bakeries occupy spaces of 1,200 sq.ft. in freestanding facilities and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market.

Valentino's, Inc.

dba Valentino's

Michael Alesio

PO Box 83089

Lincoln, NE 68501

402-434-9380, Fax 434-9385

Food

The 45-unit chain operates locations in IA, KS, MN, MO, NE and ND. The restaurants occupy spaces of 5,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets. The company is franchising.

Albrecht, Inc.

dba Acme Stores Fresh Market

Jack Juron

PO Box 1714

Akron, OH 44309

330-733-6611, Fax 733-6564

Supermarket

The 33-unit chain operates locations in OH. The supermarkets occupy spaces of 12,000 sq.ft. to 100,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market.

Jim Adams, Inc.

dba IGA, Save Alot

Mark Coley

PO Box 909

Paris, TN 38242

901-642-2752, Fax 642-6012

Supermarket

The 36-unit chain operates locations in IL, IN, KY and TN. The supermarkets occupy spaces of 12,000 sq.ft. to 30,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

John's Food Stores

John Hagenbrock

PO Box 127

Black River Falls, WI 54615

715-284-9431, Fax 284-9632

Supermarket

The seven-unit chain operates locations in WI. The supermarkets occupy spaces of 6,000 sq.ft. to 35,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market.

Kirby Foods, Inc.

dba Buraglio's IGA

Vic Buraglio

4102-B Fieldstone Road

Champaign, IL 61826

217-352-2600, Fax 352-9394

Supermarket

The nine-unit chain operates locations in IL. The supermarkets occupy spaces of 23,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market.

Knowlan's Super Markets, Inc.

dba Knowlan's Super Markets, Festival Foods

Marie Aarthun

111 East County Road F

Vadnis Heights, MN 55127

612-483-9242, Ext. 11, Fax 483-0622

Supermarket

The eight-unit chain operates locations in MN. The supermarkets (6) and warehouse format style stores (2) occupy spaces of 35,000 sq.ft. to 45,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market. Plans call for expansion of both concepts.

Seaway Food Town, Inc.

dba Seaway Food Town/The Pharm

Clifford Sasfy, Jr.

1020 Ford Street

Maumee, OH 43537

419-891-4212, Fax 891-4211

Supermarket

The 66-unit chain operates locations in MI and OH. The supermarkets and deep discount drug stores occupy spaces of 38,000 sq.ft. to 55,000 sq.ft. in strip centers. Plans call for as many as nine openings in the coming 18 months. Expansion will take place in the existing markets.

Dollar Video

John Caesar

228 Florence Street

Crystal Lake, IL 60014

815-477-4335, Fax 477-4375

Video

The 10-unit chain operates locations in IL. The video stores occupy spaces of 7,000 sq.ft. to 8,000 sq.ft. in freestanding facilities. Plans call for three openings in the coming 18 months. Expansion will take place in the existing market.

 

Exclusives: Leasing & Management Assignments

Equity Properties, Inc. (610-645-7700) has been named the exclusive agent for Bargain Brakes & Mufflers and Engine World. The automotive uses are seeking sites running 3,000 sq.ft. to 7,000 sq.ft. (minimum of three bays) from northern NJ to DE. The company is interested in opening 10 franchise locations immediately.

CB Commercial Real Estate Group (708-948-6907) has been awarded the leasing assignment for three Trident Development, Inc.-owned shopping centers. They include: The Oaks, a 136,000 sq.ft. project anchored by Dominick's Finer Foods in Des Plaines, IL; Riverside Square, a 134,000 sq.ft. project anchored by Dominick's in Chicago, IL; and Rivers Edge Plaza, a 30,000 sq.ft. project anchored by Ace Hardware in Chicago, IL.

First Washington Management, Inc. (301-907-7800) recently received property management assignments for Kingstowne Shopping Center, a 94,000 sq.ft. project anchored by Giant Food in Alexandria, VA and Ashburn Farm Village Center, an 89,000 sq.ft. project anchored by SuperFresh Supermarket in Ashburn, VA.

CM Commercial Realty, Inc. (410-515-0531) has been named the exclusive agent for Video King, Inc. The 30-unit chain does business as Movie King and is looking to expand in DE, MD and PA. Preferred sites are end caps and freestanding facilities in grocery anchored neighborhood strip centers.

Jeffrey Realty, Inc. (908-668-9600) has been appointed the tenant representative for Hollywood Video's expansion in NJ. The company is seeking sites running 6,000 sq.ft. to 10,000 sq.ft. in end caps and freestanding facilities with strong demographics and excellent highway visibility. The company plans to open 30 new stores throughout NJ.

DJM Asset Management, Inc. (212-922-1200) has been selected as the disposition agent of 20 former Giant Carpet leases in CT, NJ and NY. The CT sites include a 9,025 sq.ft. store in Orange and an 11,000 sq.ft. store in Norwalk. The NJ sites include a 5,906 sq.ft. store in Iselin, a 6,000 sq.ft. store in Springfield, a 6,656 sq.ft. store in West Patterson, an 8,016 sq.ft. store in East Brunswick, a 7,995 sq.ft. store in Eatontown, a 6,000 sq.ft. store in Hazlet, an 8,500 sq.ft. store in Toms River, a 9,200 sq.ft. store in Somerville, a 7,545 sq.ft. store in Paramus and a 7,400 sq.ft. store in Parsippany. The NY sites include a 12,000 sq.ft. site (6,000 sq.ft. ground floor and 6,000 sq.ft. basement) in New York City, a 4,700 sq.ft. site in Brooklyn, a 5,200 sq.ft. site in Bayside, a 5,517 sq.ft. site in Yonkers, a 5,879 sq.ft. site in Nanuet, an 8,255 sq.ft. site in Carle Place, a 4,900 sq.ft. site in Lake Grove and a 5,445 sq.ft. store in Farmingdale.

Divaris Real Estate, Inc. (757-497-2113) has been named the exclusive real estate representative for 360 Degree Communications. The assignment includes leases negotiations, site location and build to suit negotiations in PA, TN and VA.

 

Lease Signings

The Sansone Group (314-727-6664) leased 1,486 sq.ft. to Gulian Bros. Jewelry, Inc. and 4,600 sq.ft. to The Little Gym of South County at South Lakeview Plaza in St. Louis, MO; 12,000 sq.ft. to Party City and 3,415 sq.ft. to Sprint Spectrum at The Plaza at Sunset Hills in Sunset Hills, MO; 2,000 sq.ft. to St. Louis Eye Clinic and 2,500 sq.ft. to Cybertell Cellular Telephone Co. at Dierbergs Clocktower Place in St. Louis, MO; 1,920 sq.ft. to Couples Pizza & Deli and 5,520 sq.ft. to Softball and Baseball USA at Ronnie's Plaza in St. Louis, MO; 1,050 sq.ft. to Subway and 2,800 sq.ft. to Greater Memo at Mid River Center in St. Louis, MO; 1,400 sq.ft. to Olympic Cleaners at Olympic Oaks Center in St. Louis, MO and 1,600 sq.ft. to J&K Delivery Service at Mid County 7 in St. Louis, MO.

CB Commercial Real Estate Group (708-948-6907) leased 3,000 sq.ft. to Bed Mart at McHenry Ground Shopping Center in McHenry, IL and 2,660 sq.ft. to Bed Mart at Prairie Town Center in Schaumburg, IL.

Montgomery Group Affiliates (610-825-7100) leased 1,200 sq.ft. to Do Nails at Bristol Plaza in Bristol, PA; 900 sq.ft. to Three Thirds Imaging Photography Studio at Chesterbrook Village Center in King of Prussia, PA; 2,663 sq.ft. to The Dollar Store at Collegeville Shopping Center in Collegeville, PA; 960 sq.ft. to Corrado's Pizza and 1,900 sq.ft. to Sports Locker Warehouse at Home Furnishings Factory Outlet in Morgantown, PA; 15,110 sq.ft. to Laurel Crafts (dba Ben Franklin Crafts) and 400 sq.ft. to Perfume Heaven at Laurel Mall in Hazleton, PA; 3,300 sq.ft. to Payless ShoeSource at Lincoln Court in Frazer, PA; 2,400 sq.ft. to Lam's House Chinese Restaurant, 347 sq.f.t to Sound of Tri State and 382 sq.ft. to Hot Diggity Dogs at MacDade Mall in Holmes, PA; 1,200 sq.ft. to Wagner's Dry Cleaners and 1,190 sq.ft. to Cellular Concepts at Newtown Square Shopping Center in Newtown Square, PA; 6,642 sq.ft. to Total Body Fitness and 1,500 sq.ft. to J. Henry Jewelers at North Penn Marketplace in Lansdale, PA; 3,264 sq.ft. to Blinds To Go at North Wales Plaza in North Wales, PA; 40,781 sq.ft. to Clemens Supermarket at Whitemarsh Shopping Center in Whitemarsh, PA; 375 sq.ft. to B.W. Eatery, 803 sq.ft. to Art's Nails and 2,511 sq.ft. to Pet Valu at Trexler Mall in Trexlertown, PA; 2,000 sq.ft. to HearX at Woodborune Shopping Center in Langhorne, PA; and 2,420 sq.ft. to HearX and 5,191 sq.ft. to Wine and Spirit Shoppe at Woodlyn Shopping Center in Woodlyn, PA.

Garrick-Aug (212-557-9090) leased 14,410 sq.ft. to Fresco at the Lombardy, 111 East 56th Street in Manhattan, NY; 14,410 sq.ft. to Fresco at the Lombardy, 111 East 56th Street in Manhattan, NY and 7,000 sq.ft. to Salute! at 270 Madison Avenue in Manhattan, NY.

National Realty & Development Corp. (914-694-4444) leased 21,751 sq.ft. to Sears Hardware and 2,604 sq.ft. to Expert Computer Store at Shrewsbury Plaza in Shrewsbury, NJ; 3,200 sq.ft. to Frank's Pizza & Italian Restaurant at Wal*Mart Plaza in Clinton, NJ and 34,000 sq.ft. to Toys 'R Us at Liberty Square Shopping Center in Burlington, NJ.

United Commercial Realty (214-526-6262) leased 12,321 sq.ft. to Tutor Time in Plano, TX.

 

Space Place

Illinois

Cahokia- An 11,000 sq.ft. space is available for lease. In Calumet City- A 15,000 sq.ft. space is available for lease. In Tinley Park- A 10,625 sq.ft. space is available for lease.

For details, contact Jim Mathews of Prime Locations at (972-991-7000).

Hazel Crest- Hazel Crest Center is tenanted by Baskin Robbins, a U.S. Post Office, Fitzsimmons Medical Supply, a personal finance tenant, a jewelry store, florist, nail salon, family restaurant, a unisex beauty salon, a nutrition and fitness center and a day care nursery school. The company is seeking a produce/meat market, a ladies boutique, a shoe store and other retailers to round out the center. Demographics include a population of 91,622 within four miles. The site is located at the intersection of 175th and Kedzie Avenue which generates a daily traffic count of 65,600 vehicles.

For details, contact James Matanky of Matanky Realty Group, Inc. at (312-337-1001).

Indiana

Fort Wayne- Two 7,500 sq.ft. spaces are available for lease. In Frankfort- An 8,125 sq.ft. space is available for lease. In Indianapolis- An 8,050 sq.ft. space is available for lease.

For details, contact Jim Mathews of Prime Locations at (972-991-7000).

Kentucky

Carrollton- A 22,000 sq.ft. freestanding former Kroger store is available for lease at Park Square Shopping Center. The site fronts S.R. 42 and I-71. In Louisville- Hillview Square is anchored by Wal*Mart and Revco. A 31,170 sq.ft. former Kroger store is available for lease. The site fronts I-65. In Richmond- A 30,000 sq.ft. freestanding former Kroger is available for lease. Retailers in the area include Wal*Mart, Kmart and Lowes. In Winchester- A 31,170 sq.ft. former Kroger is available for lease at a strip center anchored by Kmart.

For details, contact David Birdsall of Midland Group at (513-891-2323), Fax (891-2467).

Michigan

Ludington- A 9,000 sq.ft. space is available for lease.

For details, contact Jim Mathews of Prime Locations at (972-991-7000).

Nebraska

Omaha- Brookside Plaza is anchored by Festival Foods and Mailboxes Etc. The 91,000 sq.ft. project has a 1,200 sq.ft. space available for lease. Demographics include a five-mile population of 139,806 earning $60,727 as the average household income.

For details, contact David Rosen of Rosen Associates Management Corp. at (516-822-5350), Fax (433-3821).

Ohio

Cincinnati- A 10,000 sq.ft. space is available for lease. In Columbus- A 16,160 sq.ft. space is available for lease. In Dayton- Spaces of 25,200 sq.ft. and 36,000 sq.ft. are available for lease. In Kettering- Spaces of 9,096 sq.ft. and 27,839 sq.ft. are available for lease. In Middletown- A 10,069 sq.ft. space is available for lease.

For details, contact Jim Mathews of Prime Locations at (972-991-7000).

Youngstown- A 26,370 sq.ft. space is available for lease at a strip center.

For details, contact Mike Flynn of Kimsworth, Inc. at (516-869-7177), Fax (869-7117).

 

Mergers & Acquisitions

Caffe Appassionato (206-281-8040) recently acquired Austin Chase Coffee Co. in WA. The acquisition expands the company's store count to 16. Austin Chase will operate as a wholly owned subsidiary of Caffe Appassionato.

Frazier King Media (972-868-1525) recently acquired Prime Sports Merchandising, Inc.'s 70 company-owned and franchised locations nationwide. The stores sell licensed sports-related products.

CVS Corporation (401-765-1500) and Revco D.S., Inc. (216-425-9811) recently announced that the two companies have been discussing a merger. However, at press time, no agreement had been reached. The proposed merger would create a company operating more than 4,000 stores with an annual revenue of approximately $11 billion.

West Coast Entertainment Corp. (215-677-1000) recently signed a definitive purchase agreement with Movieland, a 108-unit chain of video stores in Australia. The acquisition marks West Coast's entry into the Australian market. West Coast currently operates and franchises 531 stores.

Sears Automotive Group (847-286-4682) recently completed the purchase of the last remaining NTW franchises. In the past year, the company acquired five franchisees operating 21 stores in six states. Sears plans to continue to operate the stores as NTW locations.

The 530,000 sq.ft. project, which is being built on the former site of Alamo Ce