Issue Number 9 for the week of March 14, 1997
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Dealmakers Issue Number 9 for the week of March 14, 1997.

My Way by Ted Kraus

I attended the Chicago, IL Idea exchange February 25th and 26th and while it's becoming repetitive and boring to say, another record attendance was set (but I'm not complaining, mind you). There was no formal dealmaking program, but with or without the formality of a dealmaking event everyone networked, which is what our industry does best. Overall, there were many "Happy Troopers" at the show. I attended several of the sessions and roundtable discussions, most of which were excellent, not that I agreed with all that was said, but the ideas were well represented. One of the sessions was on whether or not co-tenancy was still important. Well, before I comment on that, let me say that I enjoy the Chicago events the most out of the 15 to 20 shows per year I attend because the attendees in Chicago appear to be closer to my age than the other regions where I'm usually one of the ultacockhas. Fifty in Chicagoland appears to be a prime age, not an old age.

Anyway, at the co-tenancy table there were 12 people, six developers, five brokers and a retailer. Unfortunately, I think I've been in the business longer than most present had been alive. Anyway, the "developers" (young whippersnappers) present couldn't understand why a tenant required a co-tenancy; they built 'em a store, provide a clean parking lot with lights that come on most days and a roof that usually doesn't leak, what more could they possibly want from a developer. The retailer should be grateful, plus, they (the developer) have difficulty getting financing if there's a co-tenancy clause and nothing is more important than financing, is there? All the developers whined that tenants were unreasonable in this demand. So what if the anchors go dark, traffic is cut in half and the image of the center goes to hell, this should not be part of the owner's concern. Now in fairness, most of the people at the table were young (under 40) and had no real idea of what it takes to make a center great, but they understood financing and Wall Street far better than I ever could.

For whatever reason, these developers can't seem to walk a mile in the retailer's shoes and understand what makes a store great and that spells trouble for the industry in the long run. They also complained about tenants wanting exclusives and restrictions on the type of tenants that could come into the center (i.e. no porno shops, health clubs, billiards, etc.). They feel the tenants are too restrictive and demanding more than they really need to protect themselves. They have no idea of what restrictions and exclusives are really like. I know I'm sounding old, but way back when, say 15 to 25 years ago, heavy duty restrictions were put into almost all leases, just ask John Stec what he used to command/demand.

I also attended a session on "Overbuilt" and while everyone seemed in agreement that retailing was overbuilt, it wasn't in their category if they were a retailer or area if they were a developer, just the "other" guy's market or use. Barnes & Noble felt that there was enough differences between them and Borders that they both could survive across the street from one another. Yeah, right.

Two statements made were scary. One was said during the "Overbuilt" session and the other on "Malls versus Strips" session. At the Overbuilt discussion, a great deal of time was spent on the "Market's" perception of retailing and REITS and at no time during the discussion did the concept of the consumers' needs or wants come into play, just how do we get the Stock Market to provide more money. Greatness does not come from greed, greatness comes from wanting to do something right and that's not the road a lot of companies in the industry are taking right now. At the Mall versus Strips forum, one of the retailers said that his company is obligated and forced into expanding because they want the "Market" to maintain its 28 Times Earnings ratio. He didn't say that his company wants to serve the consumer better or be the best retailer, just maintain the ratio. I'm sure Sam Walton was turning over in his grave when that was said. (No, it wasn't a Wal*Mart person who said it, but I consider Sam one of the great retailers of our generation).

Tying into this same obsession with Wall Street, during a coffee break with six or seven people, of which four worked for REITS, the entire conversation was around Wall Street and the street price of their stock. We're becoming an industry of stock brokers, not developers or retailers. We're not contributing to our society with great new forms of distribution or providing exciting ways for the public to shop. Chains are now started so that after two or three years they can go public, cash in and go onto the next concept. The truly great retailers of our time wanted more than money, they had a vision, a dream of what they wanted their company to be. The original developers, from Arlen to Glimcher to DeBartolo and Simon put everything they had (and quite often what they didn't have) on the line every time they built. They were building the pyramids of the 20th century and they felt pride in their accomplishments. Today's retailers and developers want a "cash out" position before the first store opens or the center is built.

Now to explain the title of this "My Way," the Mirror Has Two Faces. While in Chicago, I bumped into several friends who work for a REIT. I mentioned to them that it was their company that inspired the editorial "REITS Are Stupid And That's on A Good Day." One of them said he thought it was them, but wanted to know what I claimed they did that I was on their case so much (We've know each other long enough that they don't take my ranting and raving personal).

I repeated the story that I was told, but supplied some of the information that was not disclosed in the editorial (I have to protect my sources). They were all familiar with the deal and then went on to tell the "true" story. Except for the name of the tenant and town, there was little in common between what the broker and REIT said about the deal. Now I don't know which story is correct (my daddy always said: "There's your side of the story, my side of the story and the truth), but saying there's truth on both sides, my statement that "REITS are stupid and that's on a good day" was not totally correct. I don't know if I'd go as far as to apologize (I still have problems with how REITS work), but I do promise I'll check out a story more when I hear it second hand before I start bitching. Since I've known these "guys" (REITs) for a long, long time, I tend to believe what they are saying, especially since they all were telling the same story at the same time. It appears the broker didn't like what he was told and changed the facts to get a charge out of me.

Now on a note that I do know firsthand, I received a certified package last week that had a complete set of demographics, photos, lease and site plans but no cover letter or indication it was being submitted for either the tenants we represent or offering the property for sale for one of our clients. Why would anyone who I don't know send a package certified without a cover letter or any form of explanation? It doesn't make sense. It also doesn't make sense to mail out a complete package like that, especially certified, unless the person expressed a prior interest. We do lots of broadcast faxing, direct mail, phone solicitations and Internet postings to find likely prospects, then we'll follow up with a phone call and then a complete package. This was a total waste of money.

P.S. I just learned Irv Maizlish died. Irv was a former ICSC Chairman, former President of Leo Eisenberg of Shawnee Mission, KS and former President of The Maizlish Co. in Naples, FL and in my humble opinion, one of the true greats of our industry. He taught the first ICSC leasing class I ever attended (25 years ago) and helped inspire me to lease and enjoy this business. The shopping center industry, his friends and family are better today because of him, we're all saddened with his death.

 

Retailers Expanding in The Rocky Mountain States

Crescent Jewelers trades as Crescent Jewelers and J. Burton Jewelers at 115 locations in AZ, CA, NV, NM, OR and WA. The jewelry stores occupy spaces of 1,200 sq.ft. in regional malls and strip centers. Growth opportunities are sought in the existing markets as well as in CO, TX and UT.

For more information, contact John Wynton, Crescent Jewelers, 315 11th Street, Oakland, CA 94607; 510-836-2810, Fax 835-0906.

Shopko Stores, Inc. trades as Shopko at 130 locations in CA, CO, ID, IL, IA, MI, MN, MT, NE, NV, OR, SD, UT, WA and WI. The stores, selling name brand apparel, accessories and housewares at discount price-points, occupy spaces of 93,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Tom Sowa, Shopko Stores, Inc., 700 Pilgrim Way, Green Bay, WI 54307; 414-497-2211, Fax 496-7180.

Sun Valley Waterbeds, Inc. does business as The Bedroom Superstore at 33 locations in AZ, CA, CO, NV, OR, UT, WA and WI. The stores, selling bedroom and assorted home furnishings, occupy spaces of 10,000 sq.ft. to 35,000 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include Home Depot, Kmart and Wal*Mart. Plans call for the opening of four units in the coming 18 months. Expansion will take place in AZ, ID, NV, NM, OK, TX and WA. Preferred demographics include a population of 500,000 within 75 miles earning $40,000 as the average income. Leases running five years, with options, are typical.

For more information, contact Danny Bean, Sun Valley Waterbeds, Inc., 5015 North 19th Avenue, Phoenix, AZ 85015-3202; 602-242-2379, Fax 242-6664.

Paccar Automotive trades as Grand Auto and Al's Auto at 125 locations in AK, CA, ID, NV and WA. The stores, which sell auto parts and offer repair services, occupy spaces of 7,000 sq.ft. in freestanding facilities and strip centers. Plans call for as many as five openings in the coming 18 months. Expansion will take place within the existing markets.

For more information, contact David Cree, Paccar Automotive, 1400 North Fourth Street, Renton, WA 98055; 206-251-7086, Fax 251-7763.

Miller International trades as Miller Stockman at 40 locations in CA, CO, NV and UT. The stores, selling family western apparel at upper-moderate price-points, occupy spaces of 3,500 sq.ft. to 5,000 sq.ft. in regional malls, outlet and power centers. Preferred anchors include J.C. Penney, Mervyn's, Macy's, Nordstrom, Wal*Mart and supermarkets. Plans call for five openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical.

For more information, contact Steve Posten, Miller International, 8500 Zuni Street, Denver, CO 80221; 303-428-5696, Fax 430-1130.

Rubio's Restaurants, Inc. trades as Rubio's Baha Grill at 32 locations in AZ, CA, CO, NV, OR, UT and WA. The Mexican restaurants occupy spaces of 2,200 sq.ft. in end caps of strip centers. Plans call for 30 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years, with two five-year options, are typical.

For more information, contact Ted Frumkin, Rubio's Restaurants, Inc., 5151 Shoreham Place, Suite 260, San Diego, CA 92122; 310-451-8171, Fax 452-0181.

Ample Boutique operates seven locations in CO, NV and NM. The stores, selling plus size women's apparel, occupy spaces of 2,500 sq.ft. to 4,000 sq.ft. in strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Stuart King, Ample Boutique, 1402 South Parker Road #A100, Denver, CO 80231; 303-462-0722, Fax 232-8896.

Conlin's Furniture, Inc. trades as Conlin's Furniture at 18 locations in MT, ND, SD and WY. The furniture stores occupy spaces of 20,000 sq.ft. in freestanding facilities. Plans call for as many as two openings annually. Expansion will take place within the existing markets.

For more information, contact Bob Anderson, Conlin's Furniture, Inc., 680 Carbon Street, Billings, MT 59102; 406-656-7706, Fax 652-6092.

 

New Construction

The Mills Corporation and Simon DeBartolo Group recently announced that the two companies will form a partnership to build a 1.5 million sq.ft. super-regional value and entertainment mall in Concord, NC. The two companies plan to invest $180 million in the project. Due diligence studies relating to traffic, engineering and economic feasibility are underway. Typical Mills projects include 15 to 20 anchor stores and as many as 200 specialty retailers, restaurants and themed entertainment uses.

For more information, contact Lawrence Winkler of The Mills Corp. at (703-526-5039) or Billie Scott of Simon DeBartolo Group at (317-263-7148).

Simon DeBartolo Group plans to break ground late this year on Waterford Lakes Mall in Orange County, FL. The 1.2 million sq.ft. project will be anchored by Burdines, Dillard's, Parisian and Sears. Negotiations are continuing with a fifth department store anchor. Other tenants will include a 24-screen movie complex, three specialty superstores and a 90,000 sq.ft. entertainment center that will feature twin NHL-regulation ice rinks. The project is expected to open during Fall 1999.

For more information, contact Simon DeBartolo Group at (317-263-7148).

Developers Diversified Realty Corporation recently acquired 22 acres of land for the development of a 220,000 sq.ft. phase II at Peach Street Square in Erie, PA. Construction on phase II, which will be anchored by Best Buy, is expected to begin during Spring. Phase I, encompassing 405,262 sq.ft., was opened in 1995 and is anchored by Wal*Mart, Lowe's Home Improvement, Kohl's, Media Play, Cinemark Theaters and T.G.I. Friday's. When completed, Peach Street Square will have a total GLA of 625,262 sq.ft.

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

Universal Property Group recently received approval to develop Centre of New England/Commerce Park near Providence, RI , a six million sq.ft. project encompassing two million sq.ft. of retail space with the balance occupied by office, distribution and R&D. Tax incentives in place include the elimination of retail and wholesale inventory tax, elimination of personal property tax and no property tax for the first year with 10% increases over the next ten years. Any size building can be constructed.

For more information, contact John Morgan of Universal Property Group at (401-828-3500), Fax (823-7329).

Ellis Gibson Development Group recently broke ground on Hampton Towne Centre in Hampton, VA. The 260,000 sq.ft. project will be anchored by an 89,290 sq.ft., 24-screen AMC theater, Winn-Dixie, Revco, Dollar Tree and Video Update. The AMC theater is expected to open during November and the rest of the project is expected to open during late 1997 or early 1998.

Fore more information, contact John Gibson III at (804-497-2672).

Pan Pacific Development, Inc. recently broke ground on phase II of Laguna Village Shopping Center in Sacramento, CA. The expansion will be anchored by a 35,700 sq.ft. 24-hour fitness gym. Other tenants will include Original Pete's Pizza, Espresso Yourself Coffee House, Maui Tan and Kim's Total Salon. Phase I of the project opened in May 1996 with a 12-screen United Artists Theater as the anchor. Phase II is expected to open during Summer.

For more information, contact Terry Bortnick, senior leasing representative for Pan Pacific Development at (619-727-1002, Ext. 112), Fax (727-1430).

 

Who's Opening and Where...

Woodroast Systems, Inc. (810-646-3690) plans to open a 3,100 sq.ft. Shelly's Back Room cigar parlor and tavern in Washington, D.C. during April. The company also plans to open a 2,000 sq.ft. Shelly's Back Room cigar parlor and tavern at Grand Casino Tunica in Robinsonville, MS during the third quarter this year.

Taco Mayo (405-691-826) recently opened its 100th Mexican fast-food restaurant. Expansion opportunities are sought in the markets of Oklahoma City and Tulsa, OK.

Warner Bros. Studio Stores (818-954-3809) has entered into a joint venture with Shinsegae to development Warner Bros. Studio Stores throughout South Korea.

Planet Hollywood (407-363-7827) recently opened a retail store at Disney's MGM Studios in Orlando, FL. The store sells a variety of clothing and merchandise that feature the Planet Hollywood logo. It is the company's eighth retail unit worldwide. The company also recently opened a 12,000 sq.ft. restaurant at NorthPort Marketplace in Fort Lauderdale, FL.

Charming Shoppes (215-245-9100) recently launched its International Exchange concept in Princeton, NJ. The stores are designed to compete with Old Navy Clothing Company stores and will sell value-priced casual clothing for men, women and children in stores ranging in size from 13,000 sq.ft. to 15,000 sq.ft. As many as 15 units are planned for this year.

J.C. Penney Co. (214-431-1000) plans to open a 147,000 sq.ft. department store at The Woodlands Mall in Houston, TX. The store is expected to open during July 1998.

Disney Co. (818-265-3382) recently opened its first Club Disney store at The Promenade at Westlake in Thousand Oaks, CA. The company also announced that it plans to open the first ESPN-The Store, a 4,000 sq.ft. unit, at Glendale Galleria in Glendale, CA during Fall. ESPN-The Store, a new divsion of The Disney Store, Inc., will feature a collection of gifts for the sports enthusiast including authentic sports merchandinse, regulation team apparel, memorabilia, electronics and an assortment of ESPN-branded items. Also found at the store will be video monitors and interactive kiosks and shoppers will be able to access ESPN's website ESPNET.SportsZone. Three additional ESPN-The Store are planned for 1998 with several hundred to follow in the coming year.

Safeway (510-467-3000) plans to open a 40,000 sq.ft. store and Thrifty Payless plans to open a 17,953 sq.ft. store at Oak Shade Town Center in South Davis, CA.

Bubba Gump Shrimp Company Restaurant (714-366-6260), a joint partnership between Rusty Pelican Restaurants and Viacom Consumer Products, recently opened a restaurant at Pier 39 in San Francisco, CA. It is the company's second unit of the planned 23 openings. The first unit opened in Monterey, CA last Spring.

The Great Train Store Co. (314-965-4512) plans to open its first store in RI at Providence Place in Providence, RI during March 1998.

 

Mergers & Acquisitions

Applebee's International, Inc. (913-967-4000) recently agreed to acquire 11 Applebee's restaurants in the St. Louis, MO area from its franchisee Apple Partners Limited Partnership. Under the agreement, the units will be acquired for $36.1 million with closing expected to take place during the second quarter. Apple Partners is also the Applebee's franchisee for the Portland, OR market and has recently signed an agreement to sell its five existing units and units under development to another Portland-area Applebee's franchisee.

Java Centrale, Inc. (916-568-2310) recently sold its 14-unit Oh La La! division, which features espresso bars and bakeries, to The Good Food Fast Cos. for $2.7 million.

BAB Holdings, Inc. (773-380-6100) recently entered into a letter of intent to merge with My Favorite Muffin Too, Inc., My Favorite Muffin, Inc. and Muffin Holdings of PA, operators of 64 muffin and bagel cafes in 15 states along the East Coast.

Blockbuster Entertainment Group (954-832-3000) recently acquired all of the retail operations of its franchisee Video Invest Espanola S.A. The acquisition of 15 franchised units brings all of Blockbuster's 40 Spanish units under company ownership.

Men's Wearhouse (510-657-9821) recently acquired 20 C&R Clothiers stores in CA for $13.5 million. Men's Wearhouse plans to keep the C&R Clothiers name and launch a new division selling lower-priced men's clothing at the stores. The company currently operates 321 stores in 32 states and plans to open as many as 50 Men's Wearhouse stores this year and roll out additional C&R stores in the near future.

Kmart Corporation (810-643-1000) and El Puerto de Liverpool, S.A. de C.V. recently agreed to sell their respective interests in their 50/50 joint-venture company, Kmart Mexica, S.A. de C.V., to Controladora Comercial Mexicana, S.A. de C.V., Mexico's second largest retail chain. Under the terms of the agreement, Controladora Comercial will purchase 100% of the share of Kmart Mexico for $148.5 million in cash and assume operations for four hypermarkets, three in Mexico City and one in Cuernavaca. The company will also operate a fifth store in Puebla which is expected to open during the second quarter. Kmart is selling its Mexican interest in order to concentrate on its core operations. The deal is expected to be completed next month.

Stage Stores (713-667-5601) and C.R. Anthony Co. (405-278-7435) recently announced that the two companies have been holding merger discussions, but so far, no agreement has been reached. Stage currently operates 316 department stores trading as Stage, Bealls and Palais Royal and C.R. Anthony operates 224 stores.

AFC Enterprises (404-391-9500) recently signed a letter of intent to purchase Chesapeake Bagel Bakery. Under terms of the agreement, AFC will purchase 163 units with eight units being converted to franchised stores owned and operated by Chesapeake founders Michael Robinson, Alan Manstof and David Lavine. Chesapeake Bagel Bakery is located in 32 states and has development agreements to open 650 stores, including 60 during 1997. AFC currently operates 2,300 Churchs Chicken and Popeyes Chicken & Biscuits in 22 countries. AFC is looking to acquire additional bagel companies to convert to the Chesapeake brand in addition to acquiring complimentary concepts such as specialty coffee stores.

Rite Aid Corp. (717-975-5800) recently completed the sale of Bi-Mart Membership Discount Stores to Bi-Mart Acquisition Corp. The 46-unit chain plans to open stores in Eugene, Corvallis, Sutherlin and Portland, OR later this year.

 

Exclusives: Leasing & Management Assignments

Boyd, Page & Associates (713-877-8400), which exclusively represents Starbucks Coffee Company in the Houston, TX area, recently secured locations for Starbucks at Meyerland Plaza, Woodway/Augusta Plaza, Sage Plaza, Copperwood Shopping Center, Colony Plaza and Baybrook Gateway in the Houston, TX metropolitan area.

New England Retail Leasing Company (860-529-9000) has been appointed the exclusive leasing agents for five Kranzco Realty Trust shopping centers, two Phillips International shopping centers and one FNS Association shopping center. The Kranzco properties include: Golfland in Orange, CT, a 48,258 sq.ft. project with spaces from 5,000 sq.ft. to 48,000 sq.ft. available for lease; Stratford Square in Stratford, CT, a 191,000 sq.ft. project with spaces from 1,300 sq.ft. to 79,000 sq.ft. available for lease; Groton Square in Groton, CT, a 191,000 sq.ft. project with spaces from 1,800 sq.ft. to 4,500 sq.ft. available for lease; Kmart Plaza in Manchester, CT, a 161,000 sq.ft. project with spaces from 2,000 sq.ft. to 40,800 sq.ft. available for lease; and Parkway Plaza in Hamden, CT, a 200,000 sq.ft. project with spaces from 2,600 sq.ft. to 48,000 sq.ft. available for lease. The Phillips properties include Wallingford Plaza in Wallingford, CT, a 151,000 sq.ft. project with spaces from 1,500 sq.ft. to 71,000 sq.ft. available for lease and Elm Plaza in Enfield, CT, a 158,893 sq.ft. project with spaces from 3,500 sq.ft. to 4,000 sq.ft. available for lease. The FNS-owned property is Putnam Plaza in Hamden, CT, a 167,711 sq.ft. project with a 45,000 sq.ft. space and a pad site available for lease. New England Retail Leasing Company has also been appointed the exclusive broker to sublease the following Pathmark stores in CT: a 48,000 sq.ft. former Rickels in Manchester; a 48,876 sq.ft. former Pathmark in Stratford; a 46,930 sq.ft. former Pathmark in Orange; a 48,794 sq.ft. former Pathmark in Hamden; a 45,000 sq.ft. former Rickels in Hamden; a 29,500 sq.ft. former Heartland in Newington; and a 42,315 sq.ft. former Pathmark in East Haven.

The Katsias Company (757-490-3585) has been appointed ths exclusive real estate representative for Ruby Tuesday in Southeastern, VA.

 

Buyers & Sellers of Commercial Properties

Ziff Propertries, Inc. is in the market to acquire retail properties in the $1 million to $15 million price range in NC, SC, eastern GA and northern FL. The company is an all cash buyer and its goal is to double its current portfolio.

For more information, contact Andrea Ziff at (803-724-3500).

The Cotswold Group is in the market to acquire shopping centers in the Northeastern, Mid-Atlantic and Southeastern regions. Properties of interest have GLAs between 75,000 sq.ft. and 500,000 sq.ft., are supermarket/drug anchored with a number of credit tenants and are located in densely populated area with high traffic and a trade area population of at least 100,000. Other requirements include centers where rents are slightly below market and where the company does not "pay for" the vacant space; properties in need of renovation, improvement in management, leasing, additional equity, etc. The company must be able to get financing of up to 70% of the purchase by either seller financing, assumable financing or by going to the market for financing. Properties must also have real and realizable potential for improvement and adding value.

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

Baita Property Services, Inc. represented Alafaya Commons Ltd. in its sale of Alafaya Commons Shopping Center in Orlando, FL to IRT Property Company. The 123,151 sq.ft. project is anchored by Publix, JoAnn's Fabrics and Radio Shack. Two outparcels are occupied by Arby's and Taco Bell.

For more information, contact T. Neal Pringle, Jr. at (404-634-7445).

Raymour & Flanigan Furniture recently purchased the former Gestav-Fisher property in West Hartford, CT, located across from Hartford Place. The company is planning a complete rehabilitation of the property which will include a 50,000 sq.ft. Raymour & Flanigan Furniture Store with 23,000 sq.ft. available for lease. The company also recently purchased the former Kmart Shopping Center in Springfield, MA. The company is planning a complete facade renovation with site upgrades. Raymour & Flanigan will occupy 40,000 sq.ft. of the 120,000 sq.ft. project with the remaining 80,000 sq.ft. and a 2.3 acre outparcel available for lease.

For more information, contact Tom Hornstein at (315-453-2500), Fax (453-2570).

R.L. Worth has the listing to sell Woodstone Shopping Center in San Antonio, TX. The 23,000 sq.ft. project is 84% occupied. The asking price is $925,000.

For more information, contact Rick Littleton at (210-822-5220), Fax (822-5224).

Forest Company has the listing to sell West Covina Parkway Plaza in West Covina, CA. The fully-leased project is anchored by Good Guys, Pier 1 Imports and Petco. The asking price is $13.35 million and existing financing of $9 million is available. The company also represents clients in the market to acquire value added retail property in southern CA and single tenant NNN retail property leased to credit tenants.

For more information, contact Dean Curci at (714-852-9400), Fax (852-8475).

Told Development recently sold its Meridian retail complex in downtown Seattle, WA to Rosche Finanz, a German investment firm, for $78 million. The 161,000 sq.ft. project is anchored by Planet Hollywood, NikeTown and a 16-screen Cineplex Odeon movie theater. GameWorks, a Steven Spielberg virtual realty entertainment center, is expected to open next month at the project.

For more information, contact Told Development at (612-420-9000).

RioCan Real Estate Investment Trust recently completed its acquisition of three shopping centers from Orlando Corporation for a combined purchase price of $47.5 million. The projects include Midtown Mall in Oshawa, Ontario, a 144,000 sq.ft. project anchored by Canadian Tire, Shoppers Drug Mart and Bank of Nova Scotia; Oakridge Mall in London, Ontario, a 210,000 sq.ft. project anchored by Wal*Mart, Loblaws and Pharma Plus Drugs and Elgin Mall in St. Thomas, Ontario, a 258,000 sq.ft. project anchored by Kmart, A&P and Shoppers Drug Mart. RioCan has also entered into an agreement to acquire the 268,000 sq.ft. 1000 Island Mall in Brockville, Ontario and the 274,000 sq.ft. Frontenac Mall in Kingston, Ontario for a combined price of $39.4 million. Anchors at the projects include Wal*Mart, National Grocers and A&P.

For more information, contact Edward Sonshine at (416-866-3018).

 

Lead Sheet

Charming Shoppes, Inc.

dba Fashion Bug, Fashion Bug Plus

Jonathon Graub

450 Winks Lane

Bensalem, PA 19020

215-245-9100, Fax 638-6919

Apparel

The 1,170-unit chain operates locations nationwide. The women's apparel stores occupy spaces of 12,000 sq.ft. in strip centers. Growth opportunities are sought nationwide. The company recently launched its International Exchange concept, which is designed to compete with Old Navy Clothing Company, in Princeton, NJ. The stores, which sell value-priced casual clothing for men, women and children, will occupy 13,000 sq.ft. to 15,000 sq.ft. spaces. As many as 15 openings are planned for 1997.

First Trading Corp.

dba Group USA

Ali Amirniroumand

25 Enterprise Avenue

Secaucus, NJ 07094

201-867-6005, Fax 867-5020

Apparel

The 20-unit chain operates locations in CA, CO, CT, FL, IL, MD, NV, NJ, PA, SC, TX, VA and WA. The stores, selling missy apparel, occupy spaces of 3,500 sq.ft. in outlet centers. Plans call for at least four openings in the coming 18 months. Expansion will take place in AZ, KS, SC and TX.

Maaco Enterprises, Inc.

dba Maaco Auto Painting & Bodywork

Richard Mina

381 Brooks Road

King of Prussia, PA 19406

610-265-6606, Fax 337-6176

Automotive

The 487-unit chain operates locations throughout North America, Mexico and Puerto Rico. The automotive service centers occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in freestanding facilities and strip centers. Plans call for 40 openings in the coming 18 months. Expansion will take place in the existing markets.

Book Management, Inc.

dba Atlantic Book Warehouse

Warren Weiner

9401 Blue Grass Road

Philadelphia, PA 19114

215-676-6000, Fax 698-8664

Books

The 14-unit chain operates locations in DE, MD, NJ and PA. The book stores occupy spaces of 15,000 sq.ft. to 18,000 sq.ft. in freestanding facilities and outlet centers. Plans call for six openings in the coming 18 months. Expansion will take place in DE, MD, NJ, NY, PA and VA.

Klein's Associates

dba Klein's Hallmark

Jacob Klein

26 Columbia Turnpike

Florham Park, NJ 07932

201-301-2323, Fax 301-2219

Cards & Gifts

The three-unit chain operates locations in NJ and NY. The stores, selling greeting cards and gifts, occupy spaces of 3,000 sq.ft. in regional malls. Growth opportunities are sought in the existing markets.

Leading Child Care Centers

Tim Minnette

c/o Prudential Real Estate

4111 Washington Avenue

Evansville, IN 47714

812-474-7000, Fax 474-7014

Child Care

The 200+-unit chain operates locations nationwide. The child care centers occupy spaces of 8,000 sq.ft. to 12,000 sq.ft. in freestanding facilities on one to two acres of land. Preferred neighboring tenants include office complexes, medical complexes and residential developments. Plans call for 20 openings in the coming 18 months. Expansion will take place in NJ, NY and the Chicago, IL market. Preferred demographics include a population of 50,000 within three miles earning $50,000 as the average income. Leases running 10 years are typical. The company is also interested in purchasing land running one to two acres.

The Mercantile Stores

dba McAlpin's

Bruce Quismo

9450 Seward Road

Fairfield, OH 45014

513-881-8000, Fax 881-8689

Department Store

The 105-unit chain operates locations in 17 states. The department stores occupy spaces of 160,000 sq.ft. to 170,000 sq.ft. in regional malls. Growth opportunities are sought in the existing markets.

Medicap Pharmacies, Inc.

dba Medicap Pharmacy

John Pittocelli

4700 Westown Parkway #300

West Des Moines, IA 50266-6730

515-224-8400, Fax 224-8415

Drug Store

The 160-unit chain operates locations nationwide. The drug stores, specializing in prescription drugs, occupy spaces of 1,000 sq.ft. to 1,200 sq.ft. in freestanding facilities, strip and specialty centers. Plans call for 16 openings in the coming 18 months. Expansion will take place nationwide.

Leisure Entertainment Corp.

dba Laser Quest

Randy Iaboni

12 MacPherson Avenue #4

Toronto, ON, CN M5R 1W8

416-925-7767

Entertainment

The 39-unit chain operates locations in AZ, CA, CO, IL, KY, MI, NY, NC, OH, OK, PA, TN, TX, UT, VA, WA and Canada. The concept, offering laser tag games, occupies spaces of 8,500 sq.ft. to 10,000 sq.ft. in freestanding facilities and strip centers. Plans call for 24 openings annually. Expansion will take place nationwide. Preferred demographics include a population of 250,000 within five to seven miles earning $40,000. Leases running 10 years are typical.

Fudgery

Jones Cottrell

PO Box 2395

Gainesville, GA 30501

770-287-1990, Fax 535-0045

Food

The 17-unit chain operates locations in IL, IN, LA, MD, MO, NJ, NC, PA, TX and VA. The stores, selling homemade fudge, occupy spaces of 600 sq.ft. to 1,000 sq.ft. in downtown store fronts, outlet and specialty centers. Plans call for as many as four openings in the coming 18 months. Expansion will take place nationwide.

Innovative Restaurant Concept

dba Rio Bravo Cantina, Green Hills Grill,

Ray's On The River, Rio Bravo Grill

David Gilbert

1640 Power Ferry Road

Marietta, GA 30067

770-956-1856, Fax 951-8237

Food

The 23-unit chain operates locations in AL, FL, GA, KS, MI, MN and TN. The restaurants occupy spaces of 2,500 sq.ft. in freestanding facilities and regional malls. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing markets.

Lamarick Beauty Systems

dba Beauty Unlimited

Mark Lorick

PO Box 32668

Charlotte, NC 28232

704-333-9286, Fax 358-0237

Hair Salon

The nine-unit chain operates locations in FL, GA, NC, SC, TN, VA and WV. The hair salons occupy spaces of 900 sq.ft. in regional malls. Growth opportunities are sought in the existing markets.

Potters Kashway Home Center

dba Potters Kashway Shopping Center

Doyle Nance

101 Livingston Avenue

Jamestown, TN 38556

615-879-5823, Fax 879-6212

Home Center

The eight-unit chain operates locations in TN. The home centers occupy spaces of 12,500 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market.

Brodkey Jewelers, Inc.

dba Brodkey Jewelers

Ron Brodkey

12165 West Center Road, Suite 73

Omaha, NE 68144

402-330-9800, Fax 697-0603

Jewelry

The 10-unit chain operates locations in IA and NE. The jewelry stores occupy spaces of 1,000 sq.ft. to 1,200 sq.ft. in regional malls. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets.

McWhorter Stationery

Tom Smith

621 Tully Road

San Jose, CA 95111

408-494-1214, Fax 293-1968

Office Supply

The 19-unit chain operates locations in CA. The office supply stores occupy spaces of 8,500 sq.ft. to 11,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market.

Prechtel Optical

dba Binghamton, Eyemaster,

Waldert, Lockport, Rochester

William Camp

111 Main Street

Lockport, NY 14094

716-434-6900, Fax 434-0342

Optical

The 34-unit chain operates locations in NY and PA. The optical stores occupy spaces of 2,200 sq.ft. to 4,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

PetsMart

Doug Walrod

10000 North 31st Avenue, Bldg 300, Ste C100

Phoenix, AZ 85051

602-944-7070, Fax 395-6512

Pet Store

The 326-unit chain operates locations throughout North America. The stores, selling pet supplies, occupy spaces of at least 20,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for 100 openings in the coming 18 months. Expansion will take place throughout North America.

GKM Enterprises, Inc.

dba Hooper Camera & Video Centers

Gary Williams

5059 Lankershim Boulevard

North Hollywood, CA 91601

818-762-0454, Fax 766-9436

Photography

The nine-unit chain operates locations in CA. The stores, selling photography equipment as well as offering one-hour processing services, occupy spaces of 1,800 sq.ft. in outlet and strip centers. Plans call for one opening in the coming 18 months. Expansion will take place in the existing market.

Tobmer Investment, Inc.

dba Gateway Newsstands

Terry Samuels

30 East Beaver Creek Road #206

Richmond Hill, ON, CN L4B 1J2

905-886-8900

Service

The 295-unit chain operates locations throughout North America. The stores, selling newspapers, magazine, tobacco products and candy, occupy spaces of 200 sq.ft. in regional malls, office buildings and transportation hubs. Plans call for as many as 40 openings in the coming 18 months. Expansion will take place throughout North America. Leases running 10 years, with options, are typical.

Remington Products, Inc.

dba Remington Stores

Gary Acton, Tim Kupetz

60 Main Street

Bridgeport, CT 06604

203-332-4693, Fax 336-9231

Specialty

The 80-unit chain operates locations nationwide. The stores, selling cutlery and shavers, occupy spaces of 800 sq.ft. to 1,500 sq.ft. in outlet centers and regional malls. Growth opportunities are sought nationwide.

Dick's Clothing & Sporting Goods

Joe Queri

400 Cherrington Parkway

Coreopolis, PA 15108

412-269-4400, Fax 269-4492

Sporting Goods

The 51-unit chain operates locations in CT, KY, MA, NY, OH and PA. The stores, selling sporting goods and sports related clothing and accessories, occupy spaces of 45,000 sq.ft. to 60,000 sq.ft. in freestanding facilities, regional malls and strip centers. Growth opportunities are sought in the existing markets as well as MI.

Nob Hill General Store, Inc.

dba Nob Hill General Store

Jim Oteri

200 East 10th Street

Gilroy, CA 95020

408-842-6441, Fax 842-1583

Supermarket

The 27-unit chain operates locations in CA. The supermarkets occupy spaces of 31,000 sq.ft. to 40,000 sq.ft. in strip centers. Growth opportunities are sought in the existing market.

American Video Network

Robert Zlatkiss

3911 Orange Lake Drive

Orlando, FL 32817

407-677-8833

Video

The 17-unit chain operates locations in FL. The video stores occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market.

 

Real Estate Professionals Making The News

Duke Realty Investments (317-846-4700) announces the appointment of Dan Gibson to retail leasing representative for the OH market and Karen Laymon to retail leasing representative for the IL and IN markets.

Hick & Rotner Retail, Inc. (410-823-4250) announces that Jennifer Hagey has joined the company. Hagey will coordinate site selection, lease negotiation and landlord relations activities for a variety of national and regional retailers. She will also manage leasing efforts for several shopping centers in the Baltimore-Washington, D.C. area.

Esprit de Corp. (415-648-6900) has appointed Edward Kelloff to director of real estate, a new position within the company. His responsibilities will include identifying and evaluating new markets for the expansion of Esprit's retail store operation and negotiating financial terms for new store locations. Esprit currently operates three full-price retail stores and 21 discount outlet stores nationwide with plans to open 10 full-price units this year.

The Katsias Company (757-490-3585) announces the appointment of John Hawa as tenant representative specialist. Hawa will assist various firms with the leasing/sales process from site selection of occupancy throughout Southeastern VA and eastern NC. Currently, Hawa is working with Ruby Tuesday, The Barbers Hairstyling for Men & Women and Pierce's Barbecue.

REM Properties, Inc. (516-543-4281) announces that Ellen V. Carroll has joined the company as a sales associates responsible for marketing retail properties.

CB Commercial Real Estate Group (708-573-7082) announces the promotion of Nicholas Peters to first vice president in its Commercial Properties Group.

Hiffman Shaffer Associates, Inc. (312-332-3555) announces the promotion of Joseph M. Geisel to vice president of retail asset management. Geisel is responsible for the management of several shopping centers, in excess of two million sq.ft., in the Chicago, IL market. His responsibilities include administration of tenant leases, management of cash flow performance, budgeting and forecasting, and supervision of promotion and advertising. In other company news, Robert Du Chateau has been promoted to executive vice president and director of facilities management and Patrick A. Halverson has been promoted to vice president and director of accounting.

The Dartmouth Company (617-262-6620) announces that Don Petrie has joined the company's Boston, MA office.

 

Lease Signings

Aries Deitch & Endelson, Inc. (914-949-2800) leased 7,500 sq.ft to Dollar Heaven Discount Supermarket in New Haven, CT; 1,800 sq.ft. to KFC and 6,000 sq.ft. to Moovies at Post Road Plaza in Portchester, NY.

Moody Rambin Interests, Inc. (713-773-5512) leased 3,500 sq.ft. to Urbana Restaurant at Hawthorne Square Shopping Center in Houston, TX.

CB Commercial Real Estate Group-Orange County, CA (714-939-2272) leased 5,000 sq.ft. to Chicago West Pizza at Yorba Linda Center in Yorba Linda, CA.

Robinson Sigma Commercial Real Estate, Inc. (757-640-7130) leased 1,799 sq.ft. to The Money Store Auto Finance, Inc. at Corporate Center II in Norfolk, VA.

Levin Management Corp. (908-755-2401) leased 17,000 sq.ft. to Fit Zone at Somerset Shopping Center in Bridgewater, NJ.

Beitler Commercial Realty Services, Inc. (818-501-5001) leased 4,325 sq.ft. to The Leather Factory in Encino, CA.

Litvin/LaRue/Greenfield Commercial Real Estate, Inc. (708-773-1555) leased 1,170 sq.ft. to Caribou Coffee at Danada Square West Shopping Center in Wheaton, IL; 1,640 sq.ft. to Caribou Coffee and 7,000 sq.ft. to Hollywood Video at a center to be developed at 75th Street and Millbrook Lane in Naperville, IL.

Metro Commercial Real Estate, Inc. (609-866-1900) leased 45,000 sq.ft. to Best Buy at Wrangleboro Consumer Square in Atlantic City, NJ and 62,000 sq.ft. to G.F.S. Realty for a Super G Supermarket and 30,000 sq.ft. to Barnes & Noble at the site of the former Valley Forge Music Fair in Devon, PA.

Fidelity Land Development Corp. (201-966-2800) leased 20,500 sq.ft. to Kings Supermarket at Crescent Center in Florham Park, NJ.

Hiffman Shaffer Associates (312-332-3555) leased 6,500 sq.ft. to Blockbuster Video, 1,620 sq.ft. to All Cleaners, 900 sq.ft. to Hair Cuttery and 900 sq.ft. to Cigarettes Cheaper at Wood Dale Center-Phase II in Wood Dale, IL.