Issue Number 11 for the week of March 28, 1997
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The Dealmakers Issue Number 11 for the week of March 28, 1997.

My Way by Ted Kraus

Same Tune, Different Singer... It's Simon Instead of McDonald's

Many years ago when I was young and innocent, outparcels were a side line for developers; it was found money, not big money, but still a decent income producer. You leased/sold your parcel to a fast food chain, if you were lucky a bank (they paid a little more) or a gas station (this is before the gestapo organization now called the EPA came in to being). Then McDonald's came into play. They realized before most other companies the importance a good freestanding site could have on their sales and in turn, bottom line, so they went on a major expansion program with the "heart" of it being tying up/acquiring as much prime outparcels as possible. They had a good real estate department and did an excellent job. However, in their drive to acquire, they became the prime reasons for the explosive growth in the cost of outparcels.

Before they came into the picture, a parcel might sell for, say $50,000, but if they wanted it, they would go as high as $100,000 to assure its ownership (to be fair, if they didn't want the property, then you couldn't give it to 'em, they knew what they were doing). Well, while not overly bright, developers and leasing agents are not stupid and starting saying to Burger King, Burger Queen, whatever, if McDonald's thinks my property is worth $100,000, then that's the cost to you too, even if the location is not as prime and within a few years, the cost of outparcel leasing/acquisition doubled (beyond inflation and in-line rents). Now I'm not saying they were wrong (I should have been so stupid), but their needs affected, for the better for some and worse for others, the entire industry.

Anyway, I was reading the Wall Street Journal recently and came across an article on Simon and its acquisition plans for the year. It said in 1996, Simon spent $3.2 billion (that's the big "B", not the little "m") on acquisitions, mostly for DeBartolo. This year they plan on spending between $500 million and $1 billion for new acquisitions. I'm sure that the same is true for New Plan, Kranzco and almost all other REITS, which means the overpriced cost of acquiring shopping centers will become even higher. Now I'm not overly bright either, but it seems to me if an investor (these REITS are no longer developers/builders/creators, they are investors who occasionally develop on the side) pays a high price to acquire a center, then they will need higher rents to justify the price (the substantial cost savings which REITS claim, rarely materialize). I'm not going to say that the retailer can't afford it, that's irrevelent, but we all learned over the last few years that retailers bitch and moan a lot but then pay the rent. No one liked or trusted Clinton, but guess who's President. That means there will be even more failures in the years to come. Just as every year, consumer bankruptcy sets records, so will retailers. Yes, the stock market for reasons only known to God is hot right now and the GNP is increasing at a steady rate, but for every retailer reporting record profits/sales, there's at least one reporting poor sales and profits and the good is not strong enough to wipe out the impact of the bad.

I don't know what the answer is, but if I was a "Simon" and could make millions, perhaps billions, by overpaying for the acquisition of shopping centers, you better believe I would. I do "know" or belive this is a great time to sell if you're a mid-size developer, because I doubt if the value of your centers will be worth more anytime in the near future. A lot of owners who managed to hold onto their property during the "great recession" of the late '80's and early '90s will come out of this smelling like roses and like the bank fiasco I am also willing to bet that the public will end up holding the bag with a lot of overpriced REIT stock, but that seems to be how life works.

On a happier note, I was in Charlotte, NC for its DealMaking event and yes, another record was set. While I'm a great believer in these local events, they do become a drag after awhile if you try to attend the majority of them. In the last six to eight weeks or so, I've been to five shows, all of 'em productive and well attended. I'd guestimate that between 20% to 25% of those in attendance were also at all the shows and that percentage is increasing. I'm beginning to see Dennis McMullen of CVS so much, Ann is getting jealous. Of course, attending the "locals" allows me to see old friends like Ed Paster more than just in Vegas (I'm willing to bet big money that Vegas sets a big record attendance this year, so unless you're nuts, plan on attending) when we're both running our tails off and have no time to do real socializing. These rubber chicken luncheons can start to wear on you, but they do pay off in the long run.

The only negative I can say is at the last five events, when I asked people how they're doing, many responded: "As you said, last year was my best year ever." This year for many has been weak, not bad, but weak and they are not overly optimistic for the near future. Some feel confident that they will make their retirement money off the stock market (God help 'em) some are young enough, it doesn't really matter (they, however, at 33 think they are old) and the vast majority are taking a wait and see attitude. I think we'll see a recession occurring by the end of the year. There also appears to be more companies at each event promoting the "surplus" property of some retailer. If this continues, I expect the ICSC to start offering a CSPM degree (Certified Surplus Manager Certificate).

What I really don't understand is in Charlotte (the same holds true for all the events), I got into discussions with several mid to large size developers/management companies with lots of space to lease who did not have a booth at the event. When asked why they don't exhibit, I was told they have a big booth in Vegas and promote then, but otherwise feel they can do more good walking the floor. Well, unless ICSC president John Riordan has been lying to me all these years, Vegas only comes once a year, but the vacancies are with us year round. So why not market year round? Yes, Vegas is great, but these locals have a great deal of social redeeming value and for the $100 it costs for a booth, it's almost a sin not to have one. Sure walking the floor pays, but since it's a local event for only one or two days, why not bring a secretary, your controller or whoever, let them gain some insight into the industry and "man" the booth.

The only thing I know for a fact is that there will be major changes, some good, some bad, but permanent changes in the next few years. This is not the industry I entered 25 years ago and it won't be the same in another five years. If you don't change with the times, whether that means becoming more high tech oriented (use of the Internet, have computerized databases of prospects, do broadcast faxing, etc.), become more niche oriented (brokers becoming exclusives for retailers were one of the first groups to adapt), and keep your overhead low, you're not long for this industry. If you can adapt however, the sky's the limit.

 

Furniture Retailers Expanding Nationwide

Waterbed Emporium, Inc. trades as Bedroom Superstore at 13 locations in CA. The stores, selling waterbeds and other bedroom furniture, occupy spaces of 8,000 sq.ft. to 12,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in Southern CA.

For more information, contact Dan Dean or Rick Haux, Waterbed Emporium, Inc., 6540 Lusk Boulevard #C250, San Diego, CA 92121; 619-450-6343, Fax 450-6350.

Futon Of North America operates 21 locations in WA. The stores, selling futons and frames, occupy spaces of 2,200 sq.ft. to 3,000 sq.ft. in downtown store fronts, regional malls, power, specialty and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in OR and WA. Leases running five years, with options, are typical.

For more information, contact Tim Weber, Futon Of North America, c/o 1st Western Properties, PO Box 111148, Tacoma, WA 98411-1148; 206-472-0404, Fax 472-0541.

Rhodes, Inc. trades as Rhodes Furniture and Crossroads Furniture at 108 locations in AL, CO, FL, GA, IL, IN, KS, KY, MO, MS, NC, OH, SC and TX. The furniture stores occupy spaces of 35,000 sq.ft. to 40,000 sq.ft. in freestanding facilities, power and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Jim Techman, Rhodes, Inc., 4370 Peachtree Road, Atlanta, GA 30319; 404-264-4600, Fax 264-4707.

Royal Waterbeds does business as Boyd Bedrooms Direct at 12 locations in LA, MO and TX. The stores, selling bedroom furniture, including mattresses, occupy spaces of 3,500 sq.ft. to 5,000 sq.ft. in outlet and specialty centers. Growth opportunities are sought in the existing markets.

For more information, contact David West, Royal Waterbeds, 2440 Adie Road, Maryland Heights, MO 63043; 314-997-3202, Fax 432-3542.

The Bedroom, Inc. trades as Total Bedroom and Home Oak & Leather at 16 locations in IA, MN, ND and SD. The furniture stores occupy spaces of 25,000 sq.ft. to 50,000 sq.ft. in freestanding facilities, outlet, power and specialty centers. Plans call for three openings in the coming 18 months. Expansion will take place in the Midwestern region.

For more information, contact Wayne Johansen, The Bedroom, Inc., 79-32 Main Street N.E., Fridley, MN 55432; 612-780-4238, Fax 780-9602.

Wolf Furniture Enterprises, Inc. trades as Wolf Furniture at five locations in MD and PA. The furniture stores occupy spaces of 30,000 sq.ft. to 50,000 sq.ft. in freestanding facilities, power centers and regional malls. Growth opportunities are sought in south central PA, panhandle WV, northern VA, and MD, with the exception of the eastern shore.

For more information, contact Doug Wolf, Wolf Furniture Enterprises, Inc., 1501 11th Avenue, Altoona, PA 16601; 814-946-1601, Fax 946-3637.

 

Apparel Tenants Seeking Sites in New York

Right On Casuals, Inc. trades as Charade at seven locations in NY. The stores, selling women's apparel, shoes and accessories, occupy spaces of 4,000 sq.ft. in downtown store fronts, regional malls and strip centers. Growth opportunities are sought in CT, NJ and NY.

The company trades as Lots To Love at four locations in NY. The stores, selling plus-size ready-to-wear apparel for women as well as accessories, occupy spaces of 3,000 sq.ft. in regional malls and strip centers. Growth opportunities are sought in CT, NJ and NY.

The company trades as New Woman Fashions at four locations in NY. The stores, selling plus-size ready-to-wear apparel for women as well as accessories, occupy spaces of 3,000 sq.ft. in regional malls and strip centers. Growth opportunities are sought in CT, NJ and NY.

The company also trades as Right On Casuals at one location in NY. The 3,000 sq.ft. store sells plus-size ready-to-wear apparel for women as well as accessories. Growth opportunities are sought in CT, NJ and NY.

For more information on the above four companies, contact David Wroclawski, Right On Casuals, Inc., 5 Odell Plaza, Yonkers, NY 10701; 914-968-0048, Fax 968-0559.

Lonny's Wardrobe, Inc. trades as Lonny's Wardrobe at 16 locations in NY. The stores, selling women's contemporary sportswear, occupy spaces of 1,000 sq.ft. in regional malls, power, specialty and strip centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in the existing market.

For more information, contact Walter Goldstein, Lonny's Wardrobe, Inc., 2031 Merrick Road, Merrick, NY 11566; 516-223-4420, Fax 223-4428.

Daffy's, Inc. does business as Daffy's New York at 11 locations in NJ, NY, PA and VA. The stores, selling better and designer apparel at off price-points, occupy spaces of 25,000 sq.ft. in downtown store fronts, freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Vance Wilson, Daffy's, Inc., 350 Secaucus Road, Secaucus, NJ 07094; 201-902-0800, Fax 902-9016.

 

Who's Opening and Where...

Rio Bravo Cantina (913-967-4000) recently opened a restaurant at a former Chi-Chi's Restaurant location at Rivergate Mall in Nashville, TN. The company is planning to open units in Clarksville and Murfreesboro during Summer.

Borders, Inc. (313-913-1323) plans to open a 42,600 sq.ft. bookstore in the Ritz Tower at 465 Park Avenue in Manhattan, NY during Fall.

Factory Card Outlet (708-238-0010) plans to open as many as 35 party supply stores before the end of June.

Victoria's Secret, a division of The Limited, Inc. (614-479-7000), is currently testing freestanding hosiery stores. Bath & Body Works, another Limited division, is planning 200 stores throughout the United Kingdom after a successful five store test.

Walgreens (847-940-2500) recently opened the first of five drugs stores in the Las Vegas, NV market. Additional stores in the Las Vegas area are planned for the future.

Target (612-304-6099) recently opened a 125,000 sq.ft. store in Madison, WI. The company recently opened its first NJ store in Menlo Park. The company is also testing its SuperTarget concept, which combines its discount store with a supermarket, at three locations in UT. The test is being expanded in UT with new store openings in Riverdale and Orem. A sixth SuperTarget is planned for Layton, UT during Fall.

Coffee People, Inc. (503-238-1958), which operates 24 coffee cafes in CA, CO and OR, plans to open two stores in Chicago, IL and one unit in Los Angeles, CA next month. The new units are part of the company's plan to open 30 stores before the end of the year.

Golden Corral Corp. (919-781-9310) is looking to franchise 13 restaurants in Broward and Dade counties in FL before the end of the year.

Dave & Buster's, Inc. (214-357-9588) plans to open a 63,000 sq.ft. restaurant/entertainment complex at Tri County Commons, which is adjacent to Tri County Mall, in Springdale, OH during the third quarter of this year. The company currently operates nine locations nationwide and recently opened its 10th location at Ontario Mills in Ontario, CA. D&B also has a seven store licensing agreement with Bass Plc for a chain of D&B's in the United Kingdom. The first unit is expected to open during May.

 

Retailers Scouting New York Area for New Sites

Wegmans Food Markets operates 53 locations in NY and PA. The supermarkets, which also feature a pharmacy, occupy spaces of 75,000 sq.ft. to 100,000 sq.ft. in freestanding facilities, 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 Ralph Uttaro, Wegmans Food Markets, 1500 Brooks Avenue Box 844, Rochester, NY 14692-0844; 716-328-2550, Fax 464-4636.

Wegman Food Markets, Inc. does business as Chase-Pitkin Home & Garden at 15 locations in NY. The home improvement stores occupy spaces of 44,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market.

For more information, contact Bill Strassburg, Wegman Food Markets, Inc., 3131 Winton Road South, Rochester, NY 14623; 716-427-8100, Fax 272-4771.

Somerset Tire Service, Inc. trades as STS Tire & Auto Center at 60 locations in NJ, NY and PA. The automotive service centers occupy spaces of 5,200 sq.ft. in freestanding facilities. Plans call for 10 openings in the coming 18 months. Expansion will take place in NJ, NY and the greater Philadelphia, PA area. Preferred demographics include a population of 30,000 within three miles earning $50,000 as the average income. Leases running 15 years, with options, are typical.

For more information, contact Ted Haase, Somerset Tire Service, Inc., PO Box 2001, Bound Brook, NJ 08805; 908-356-8500, Ext. 353, Fax 356-8821.

The Grand Union Co. trades as Grand Union at 231 locations in CT, MA, NH, NJ, NY, PA and VT. The supermarkets occupy spaces of 30,000 sq.ft. to 65,000 sq.ft. in downtown store fronts, freestanding facilities and strip centers. Plans call for six openings in the coming 18 months. Expansion will take place within the existing markets.

For more information, contact Raymond Ayers, The Grand Union Co., 201 Willowbrook Boulevard, Wayne, NJ 07470; 201-890-6000, Fax 890-6568.

Huffman Koos, Inc. operates 15 locations in CT, NJ and NY. The furniture stores occupy spaces of 15,000 sq.ft. to 55,000 sq.ft. in freestanding facilities. Plans call for as many as two openings in the coming 18 months. Expansion will take place in NJ, NY and PA.

For more information, contact Joseph Albanese, Huffman Koos, Inc., Route 4 & Main Street, River Edge, NJ 07661; 201-343-4300, Fax 343-1142.

M. Steuer Hosiery trades as Value Hosiery at eight locations in NY. The stores, selling hosiery, lingerie and activewear, occupy spaces of 600 sq.ft. to 1,100 sq.ft. in downtown store fronts. Growth opportunities are sought in the existing market.

For more information, contact Ed Schwartz, M. Steuer Hosiery, 31 West 32nd Street, New York, NY 10001; 212-563-0052, Fax 268-7549.

Weis Markets operates 155 locations in MD, NJ, NY, PA, VA and WV. The supermarkets occupy spaces of 40,000 sq.ft. to 50,000 sq.ft. in freestanding facilities and strip centers. Plans call for 15 openings in the coming 18 months. Expansion will take place in the existing markets. Some new stores will occupy 60,000 sq.ft.

For more information, contact Rusty Graber, Weis Markets, 1000 South Second Street, Sunbury, PA 17801-0471; 717-286-4571, Fax 286-3286.

 

Lease Signings

United Commercial Realty (214-526-6262) leased 11,617 sq.ft. to Factory Card Outlet at Hulen Fashion Center in Fort Worth, TX.

Carr Real Estate Services (202-686-5335) leased 7,000 sq.ft. to Canyon Cafe at Chevy Chase Pavilion in Chevy Chase, MD.

Equity Investment Group, L.L.C. (404-364-2984) leased 25,000 sq.ft. to Beall's Outlet Stores at Beach Boulevard Shopping Center in Jacksonville, FL; 5,731 sq.ft. to Hibbetts Sporting Goods at Conway Towne Centre in Conway, AR and 3,800 sq.ft. to Schlotzsky's Deli in Elkhart, IN.

Erwin L. Greenberg Commercial Corp. (410-837-2500) leased 3,000 sq.ft. to Crafters Showcase Outlet, a unique marketplace offering one-stop shopping for quality, handmade crafts and furniture direct from the artisans, at White Marlin Mall in Ocean City, MD.

Flocke & Avoyer Commercial Real Estate (619-280-2600) leased 1,695 sq.ft. to SAS Shoes at Rio Vista Shopping Center in San Diego, CA.

Western Investment Real Estate Trust (916-791-0600) leased 5,373 sq.ft. to Blockbuster Video at Country Gables Shopping Center in Granite Bay, CA; 4,539 sq.ft. to Boston Market and 1,600 sq.ft. to Manhattan Bagel at Commonwealth Square Shopping Center in Folsom, CA.

Metro Commercial Real Estate, Inc. (609-866-1900) leased 30,000 sq.ft. to Barnes & Noble Bookstore at East Gate Square Shopping Center in Moorestown, NJ and 18,000 sq.ft. to Sneaker Stadium at Concord Square at Talleyville in Concord, DE.

Vanguard Realty, Inc. (201-443-9700) leased 2,000 sq.ft. to Starbucks Coffee and 5,100 sq.ft. to Marty's Shoes at West Caldwell Plaza in West Caldwell, NJ and 4,500 sq.ft. to Everything 99 Cents at Cardiff Circle Shopping Center in Pleasantville, NJ.

Jeffrey Realty (908-668-9600) leased 3,000 sq.ft. to Boston Market at Troy Hills Shopping Center in Parsippany, NJ; 4,000 sq.ft. to Visiting Nurse Association of Central NJ at a former Publix Pharmacy Building Center in Woodbridge, NJ; 2,000 sq.ft. to Fast Sign at Willow Square in Wayne, NJ; 9,700 sq.ft. to Powerhouse Health Club, 3,700 sq.ft. to Quick N Fresh Food Store and 1,408 sq.ft. to AVI One Hour Photo at Raritan Plaza Shopping Center in Bridgewater, NJ.

Garrick-Aug Associates (212-557-9090) leased 2,500 sq.ft. to Travel 2000 at 380 Madison Avenue in Manhattan, NY.

Equity Properties (610-645-7700) leased 4,680 sq.ft. to Leslie's Poolmart in Cinnaminson, NJ; 5,300 sq.ft. to Leslie's Poolmart at Triangle Plaza in Wilkes-Barre, PA and 1,700 sq.ft. to Tinder Box Internationale-Upscale Cigar, Tobacco and Related Gifts at Town Place in Marlton, NJ.

Mid-America Asset Management Co. (630-954-7300) leased 2,700 sq.ft. to T-USA at Westbrook Commons Shopping Center in Westchester, IL and 4,500 sq.ft. to IHOP at Rivercrest Shopping Center in Crestwood, IL.

 

Real Estate Professionals Making News

Modell's Sporting Goods (212-822-1000) announces that Aaron Fleishaker has been named senior vice president of real estate and construction and will continue as general counsel. Fleishaker was formerly vice president and director of real estate for the company.

Quality Dining, Inc. (219-271-4600) announces that the two founders of Bruegger's Bagels, Nordahl Brue and Michael Dressell have resigned their positions as directors of Quality Dining.

Federal Realty Investment Trust (301-998-8211) announces that Ron Kaplan has been promoted to chief investment officer.

Midland Group (314-576-1900) announces that Craig S. Wielansky has joined the company as vice president/tenant representation. Wielansky's responsibilities will include representing a number of retailers on a national and international basis, as well as supervising the company's tenant representation division.

 

Financial News...

Greenberg Stores Ltd. (514-428-6700), which operates 169 department stores throughout Canada trading as Metropolitan, Met, MetMart, Greenberg and Red Apple/Pomme Rouge, recently filed for protection under Canada's Companies' Creditors Act.

Claire's Stores, Inc. (305-433-3900) reported that its income for FY97 increased 46% to $45.13 million from $30.915 million during FY96. Sales increased 28% to $440.16 million from $344.88 million with comparable store sales up 10% for the year. At the end of its fiscal year the company operated 1,547 stores in 49 states, Canada, the Caribbean, England, Japan, Scotland and Wales.

Wal*Mart Stores, Inc. (501-273-4000) reported that sales for its fiscal year increased 12% to $104.859 billion. Net income for the year also increased 12% to $3.056 billion from $2.74 billion during FY95. In its Wal*Mart division, including Supercenters, the company posted an operating profit of $5.548 billion, an 11% increase over $5.02 billion last year. In its Sam's division the company posted an operating profit of $864 million, an eight percent increase over $800 million reported last year. In its international division, an operating profit of $24 million was reported this year compared to a loss of $16 million last year. During its fiscal year, the company opened 57 discount stores, closed two and relocated or expanded 14 others; opened 105 Supercenters (including 92 discount store replacements); opened 38 international units in Argentina (3), Canada (5), China (2), Indonesia (2) and Mexico (26); and opened nine Sam's Clubs, closed six and relocated two. At the end of its fiscal year, the company operated 1,960 Wal*mart stores, 344 Supercenters, 436 Sam's Clubs, 152 Mexican units, 136 Canadian units, 11 Puerto Rico units, six Argentina stores, five Brazilian stores, two China stores and two Indonesian stores.

Staples (508-370-8500) and Office Depot's (561-265-4258) proposed merger may have escaped being blocked by the Federal Trade Commission (FTC) when the two companies reached an agreement to sell 63 stores to OfficeMax, Inc. for $108.75 million cash. The FTC had planed to block the merger claiming that the deal would increase prices to consumers. In making its decision to block the merger, FTC's director of the bureau of competition William Baer, said that in communities where Staples faces competition from Office Depot prices are significantly lower than where it does not. Based on that finding, the FTC ruled that competition will be reduced or eliminated and consumers will face higher prices. A similar view is shared by Ralph Nader's research group which asked the FTC to block the merger based on the reduced competition/higher prices factor. According to the FTC, the companies compete in 40 cities and that a merger would reduce competition in 18 states and Washington, D.C. However, officials from Staples and Office Depot contend that the merger will mean lower prices for consumers in all markets because of the reduced costs incurred by the joint company. At press time, it was learned that Staples and Office Depot planned to sell 63 stores to OfficeMax in an attempt to win FTC approval. Many of the stores being acquired by OfficeMax are located in markets where the company does not have a presence including Baltimore, MD; San Diego, CA, Tampa and St. Petersburg, FL; Louisville, KY and Washington, D.C. OfficeMax is also acquiring 14 stores in the Los Angeles, CA market where the company entered last year. Stores in 11 other markets are also being acquired. At press time, the FTC had not made a decision as to whether or not it would approve this deal or if this deal would remove the commission's opposition to the Staples-Office Depot proposed merger. However, early indications pointed toward approval of both deals. Both Staples and Office Depot have said they plan to fight the FTC's opposition.

 

Food Tenants Expanding into NY State

Wenco Food Systems Corp. trades as Wendy's at 41 locations in NJ and NY. The fast food restaurants occupy spaces of 3,100 sq.ft. in freestanding facilities. Plans call for as many as six openings in the coming 18 months. Expansion will take place in the existing market.

For more information, contact Wayne Thomlin, Wenco Food Systems Corp., 110 Bi-County Boulevard, Suite 109, Farmingdale, NY 11735; 516-694-7500, Ext. 111, Fax 694-7540.

Herbert Candies operates eight locations in MA, NH and ME. The candy stores occupy spaces of 1,500 sq.ft. to 3,000 sq.ft. in freestanding facilities fronting highways. Plans call for as many as six openings in the coming 18 months. Expansion will take place in MA, NY and RI.

For more information, contact Ronald Herbert, Herbert Candies, 577 Hartford Pike, Shrewsbury, MA 01545; 508-845-8051, Fax 842-3065.

Pudgie's Pizza trades as Pudgie's Pizza & Sub Shops at 37 locations in NY and PA. The restaurants, specializing in pizza and submarine sandwiches, occupy spaces of 2,000 sq.ft. in downtown store fronts. Growth opportunities are sought in the existing markets.

For more information, contact David Cleary, Pudgie's Pizza, PO Box 1243, Elmira, NY 14902; 607-734-4869, Fax 734-4983.

Restaurant Sites trades as Chili's Restaurants at 450 locations nationwide. The Mexican restaurants occupy spaces of 6,000 sq.ft. in freestanding facilities. Preferred co-tenants include regional malls. Plans call for five openings in the coming 18 months. Expansion will take place in Westchester, NY and throughout New England. Leases running 15 years are typical.

The company trades as Dakota Steakhouse at eight locations in CT, NY and VT. The steakhouses occupy spaces of 10,000 sq.ft. in freestanding facilities and strip centers. Plans call for three openings in the coming 18 months. Locations are being sought in CT, MA, NJ, NY and PA.

The company also trades as Old Country Buffet and Hometown Buffet at 350 locations nationwide. The buffet-style restaurants occupy spaces of 10,000 sq.ft. in freestanding facilities, regional malls and strip centers. Plans call for 40 openings in the coming 18 months. Expansion will take place in NJ, NY and throughout New England.

For more information on the above three restaurant chains, contact Rich Gallivan, Restaurant Sites, 28 Somers Road, Hampden, MA 01036; 413-566-0216, Fax 566-2227.

 

Buyers & Sellers of Commercial Properties

Holland Metro Inc., Realtors brokered the sale of a one acre parcel of land in Erie, PA to AutoZone. AutoZone plans to construct a store that is expected to open during April. The company also has the listing to sell a 2.4 acre parcel of land adjacent to the AutoZone tract in Erie, PA. The site is zoned commercial and has all utilities available.

For more information, contact Bill Bucceri at (800-840-5901, Ext. 140).

Sigma National, Inc. brokered the sale of Stein Mart Festival in Richmond, VA. The 174,398 sq.ft. project is anchored by Stein Mart, MJ Designs, Linen's N Things and OfficeMax. The project was sold by Midlothian Festival Limited Partnership/Trammell Crow to Sauer Properties, Inc.

For more information, contact Tred Spratley at (804-320-6100).

Benj. E. Sherman & Sons represented the National Bank of Canada in its sale of Norwood Square in Park Forest, IL. The 150,000 sq.ft. project, which is anchored by Dominick's and Walgreen's, was acquired by an East Coast developer who plans to redevelop the center. The purchase price was not disclosed, but the asking price had been $5.5 million.

For more information, contact Daniel Hyman at (312-220-9000).

H. Stephen Kirschner, Inc. represents an overseas bank looking to acquire "A" grade, national credit anchored power centers in the $10 million to $50 million range. The client will acquire projects on an all cash basis at an 8%+ cap.

For more information, contact H. Stephen Kirschner at (516-462-2200), Fax (499-3322).

Equity Investment Group, L.L.C. announces the acquisition of Sun Plaza in Fort Walton Beach, FL. The 166,340 sq.ft. project is anchored by Circuit City, Office Depot, Phar Mor and Delchamps Supermarkets. The project was purchased from Sun Plaza Limited Partnership for $6 million. Equity plans an expansion and renovation of the center.

For more information, contact Equity Investment Group at (404-364-2984).

 

New Construction

Monticello Marketplace Associates LLC plans to break ground during late Spring or early Summer on Monticello Marketplace in James City, VA. The 300,000 sq.ft. project will be anchored by a 63,000 sq.ft. Ukrop's Supermarket. Negotiations are ongoing to make Target a second anchor at the project. In addition, the project will include a variety of in-line tenants and space for five outparcels. The project is expected to open during Summer 1998.

For more information, contact Jim Gresock of S.L. Nusbaum, the leasing and managing agents of the center, at (804-627-8611).

The Linder Company is redeveloping Keystone Square Mall in Indianapolis, IN, which will be renamed Merchants' Square. The 311,000 sq.ft. project is anchored by Target, which plans to vacate the mall next month. Phase I of the redevelopment, encompassing 140,000 sq.ft., will be anchored by an 81,000 sq.ft. Marsh, Inc. supermarket as well as a video store, health club, party store and gift store. Phase I of the project is expected to be completed by the end of this year. Phase II will include the conversion of the existing Target space into four or five stores ranging in size from 15,000 sq.ft. to 60,000 sq.ft. and prospective tenants include books & music, an upscale home store, apparel stores and sporting goods stores.

For more information, contact Ernie Reno of The Linder Company at (317-844-5313).

DS Shopping Centers, Inc., a subsidiary of Donahue Schriber, recently acquired 60.11 acres of land at the intersection of Interstate 80 and Truxel Road in Sacramento, CA for the development of a 590,000 sq.ft. power center. Construction is expected to begin during May and the project will feature as many as eight large-format discount tenants. A Spring 1998 opening is planned.

For more information, contact Judi Lapin of Donahue Schriber at (714-854-2100).

Pine Tree Chicago LLC recently broke ground on Gladstone Corners Shopping Center in Chicago, IL. The 47,700 sq.ft. project, which is 90% pre-leased, will be tenanted by Blockbuster Video, Radio Shack, Hair Cuttery, Dollar Tree Stores, Once Upon A Child and American Mattress. The site is expected to open during July.

For more information, contact Pine Tree Commercial Realty at (847-735-0600).

Koll Co. is looking to acquire land, mostly abandoned factory and railway land, in downtown Osaka, Japan in order to develop a 300-tenant mall on the site. The potential deal is looked upon as a chance for American companies to get a foothold in Japan's real estate market and develop additional "American-style" regional malls. A second company, American Malls International, is planning to spend $165 million over the next three years to develop retail theme parks near Tokyo, Japan.

For more information, contact Koll at (714-833-3030).

MBK Construction Ltd., a division of MBK Real Estate Ltd., recently completed construction on four AMC theater projects. They include: AMC Ontario Mills, a 110,000 sq.ft., 30-screen theater in Ontario, CA; AMC Ahwatukee, an 85,000 sq.ft., 24-screen theater in Chandler, AZ; AMC Lennox, an 85,000 sq.ft., 24-screen theater in Columbus, OH and AMC Tallahessee, a 70,000 sq.ft., 20-screen theater in Tallahassee, FL. To date, MBK Construction has completed 27 projects for AMC and is currently working on an additional 26 theaters which are scheduled to open as early as this Summer.

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

Equity Investment Group, L.L.C. recently opened Elkhart Market West in Elkhart, IN. The 81,651 sq.ft. project, which was 100% leased before construction was completed, is anchored by Martin's Super Markets and Revco Drugs. Outparcel tenants include Fazoli's Italian Restaurant and Q-Lube.

For more information, contact Linda Kotasek of Equity Investment Group at (404-364-2984), Fax (364-2985).

 

Store Closings

Winn-Dixie (904-783-5000) plans to close its supermarket at Northland Shopping Center in Lexington, KY early next month. The company has operated the 25,000 sq.ft. store for 33 years. Although sales at the store were down, the primary reason for the closing is the fact that the store is too small.

Oshman's Sporting Goods (713-928-3171) recently closed seven of its small sporting goods stores in Orange County, CA and replaced them with a 60,000 sq.ft. superstore at Irvine Specturm in Irvine, CA.

 

Mergers & Acquisitions

Stage Stores, Inc. (713-667-5601) plans to acquire C.R. Anthony Co. for $93 million in cash and stock. The deal is expected to be completed during the Summer. C.R. Anthony operates 224 stores in 13 southwestern and Rocky Mountain states and the merger will give Stage Stores more than 550 stores in 23 states. It is expected that the Anthony's stores will be renamed Stage or Bealls over time.

Koo Koo Roo, Inc. (310-479-2080) plans to acquire 14 Hamburger Hamlet restaurants, which is in Chapter 11, in a cash and stock deal worth $11.45 million. Ten of the units are located in CA and the remaining four are located in Washington, D.C. The deal needs approval from the bankruptcy court.

The Kroger Company (513-762-4000) recently completed its acquisition of 11 supermarkets formerly owned by Harvest Foods in AR. Kroger plans to renovate the stores and reopen them as Kroger units.

Byerly's (612-831-3601) plans to merge its gourmet supermarket chain with Lund's Food Store in a deal expected to close late next month. Terms were not disclosed. Byerly's operates 10 units in the St. Paul, MN area and Lund's operates eight.

Men's Wearhouse, Inc. (510-657-9821) has formed Value Priced Liquidators, Inc. to acquire the Kuppenheimer Men's Clothiers chain of 43 stores. Kuppenheimer has been operating under Chapter 11 protection since August 1996. After all of the merchandise has been sold, Men's Wearhouse will select which leases it wants to keep.

Deck The Walls, Inc. (713-775-5263) plans to acquire Framing & Art Centre, a 60-unit chain of franchised stores in Canada. The acquisition is the company's first international venture.

 

Lead Sheet

T.G. Hat Company

dba The Hat Company

Jim Trueworthy

7400 South Las Vegas Boulevard #45

Las Vegas, NV 89123

702-897-1666, Fax 897-8882

Accessories

The four-unit chain operates locations in AZ, CA and NV. The stores, selling headwear, occupy spaces of 1,200 sq.ft. to 2,000 sq.ft. in outlet and specialty centers. Preferred co-tenants include specialty clothing stores. Plans call for two openings in the coming 18 months. Expansion will take place in AZ, CA, CO or NV. Leases running seven years are typical and the company is franchising.

Coopers, Inc.

dba Western Warehouse

Donald Midciff

11205 Montgomery N.E.

Albuquerque, NM 87111

505-296-8344, Fax 296-0278

Apparel

The 29-unit chain operates locations in AZ, CA, CO, NM and WA. The stores, selling Western apparel, hats and boots, occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in freestanding facilities, regional malls, power and strip centers. Plans call for five openings in the coming 18 months. Expansion will take place in the existing markets.

Tuffy Associates Corp.

dba Tuffy Auto Service Center

David Schak

1414 Baronial Plaza Drive

Toledo, OH 43615

419-865-6900, Fax 865-7343

Automotive

The 192-unit chain operates locations in FL, IL, IN, IA, MI, OH, PA, VA and WI. The automotive service centers occupy spaces of 3,680 sq.ft. in freestanding facilities having five to seven service bays. Plans call for 25 openings in the coming 18 months. Expansion will take place in the existing markets as well as in MN.

Putnam Card & Gift Shoppes, Inc.

dba Putnam Card & Gift Shoppes

Jean Jones

PO Box 5090

Westboro, MA 01581

508-389-1800, Fax 389-1810

Cards & Gifts

The 18-unit chain operates locations in CT and MA. The stores, selling cards and gifts, occupy spaces of 5,000 sq.ft. in regional malls and strip centers. Growth opportunities are sought in the existing markets.

Dairy Mart Convenience Stores

dba Dairy Mart

Patty Motis

210 Broadway East

Cuyahoga Falls, OH 44222

330-923-0421, Fax 922-7110

Convenience Store

The 950-unit chain operates locations in CT, IN, KY, MA, NY, NC, OH, PA, RI and TN. The convenience stores, some of which sell gasoline, occupy spaces of 2,500 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

Proffitt's, Inc.

dba Proffitt's, McRae's, Parisian,

Herberger's, Younker's

Eric Faires

5810 Shelby Oaks Drive

Memphis, TN 38134

901-372-4300, Fax 386-4594

Department Store

The 181-unit chain operates locations in 24 states located throughout the Midwestern and Southeastern region. The department stores occupy spaces of at least 100,000 sq.ft. in regional malls. Growth opportunities are sought in the existing markets.

Just A Buck

Ron Sommers

c/o Sommers Consulting

155 North Main Street

New City, NY 10956

914-638-4111, Fax 638-3878

Discount

The 25-unit chain operates locations in CT, FL, NJ, NY, PA, TN and VA. The stores, selling general merchandise at the fixed price-point of one dollar, occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in regional malls, outlet, power and value centers. Plans call for 15 openings in the coming 18 months. Expansion will take place along the East Coast.

Building Block Franchising Corp., Inc.

dba Building Blocks

Thomas Fihe

6209 Dee Side Drive

Dublin, OH 43107

888-654-8697

Educational Toys

The eight-unit chain operates locations in CT, IL, NY, OH and TX. The stores, selling educational toys, occupy spaces of 1,800 sq.ft. to 3,000 sq.ft. in strip centers. Preferred co-tenants include children's oriented retailers, movie theaters and supermarkets. Plans call for as many as 30 openings in the coming 18 months. Expansion will take place nationwide. Leases running five years, with options, are typical and the company is franchising.

Dow Stereo/Video

Frank Neumann

7929 Arjohns Drive

San Diego, CA 92126

619-566-9600, Fax 566-9762

Electronics

The 11-unit chain operates locations in CA. The electronics stores occupy spaces of 3,500 sq.ft. to 4,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market.

Great Earth Companies

dba Great Earth Vitamins

Steve Stern

San Vincente Boulevard, Suite 360

Brentwood, CA 90049

Written Proposals Only

Health

The 125-unit chain operates locations nationwide. The stores, selling specialty health products, occupy spaces of 650 sq.ft. to 850 sq.ft. in regional malls and strip centers. Plans call for 45 openings in the coming 18 months. Expansion will take place nationwide.

Dixieline Lumber Co.

Hamid Daudani

3250 Sports Arene Boulevard

San Diego, CA 92110

619-224-4120, Fax 225-8192

Home Center

The 11-unit chain operates locations in CA. The home improvement stores occupy freestanding facilities running 20,000 sq.ft. to 40,000 sq.ft. on land areas of three to five acres. Space for an outdoor area is required. Growth opportunities are sought in the existing market.

Rogers Ltd.

dba Diamonds Unlimited,

Rogers Jewelers, Andrews Jewelers

Len Schnieder

124 City Centre

Middletown, OH 45042

513-422-5407, Fax 422-5242

Jewelry

The 47-unit chain operates locations in AR, FL, IN, IA, KY, MO, NE, OH, PA, SD, TX and VA. The jewelry stores occupy spaces of 1,100 sq.f.t to 1,500 sq.ft. in regional malls. Plans call for three openings in the coming 18 months. Expansion will take place within the existing markets.

Dave's Soda & Pet City

Dave Ratner

11 Ramah Circle

Agawam, MA 01001

413-789-2259, Fax 789-2523

Pet Store

The three-unit chain operates locations in MA. The stores, selling pets and supplies, occupy spaces of 10,000 sq.ft. in strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in CT and MA. Leases running five years, with options, are typical and the company is franchising.

Expressly Portraits

Jeff Rawson

1157 Triton Drive #C

Foster City, CA 94404

415-578-9291, Fax 578-9881

Photo

The 185-unit chain operates locations in AZ, CA, CT, DE, IL, IN, IA, MD, MA, NH, NJ, NY, OH, OR, PA, VA, WA and WI. The stores, offering studio portrait services, occupy spaces of 1,500 sq.ft. to 2,000 sq.ft. in regional malls. Plans call for five openings during 1997 and 20 openings during 1998. Expansion will take place in the existing markets.

The Shoe Show, Inc.

dba The Shoe Department, Shoe Show, Burlington,

Altier, Rockport Stride Rite, Sugarfoot

Leon Lackey

PO Box 648

Concord, NC 28026

704-782-4143, Fax 782-3411

Shoes

The 426-unit chain operates locations in AL, DE, GA, IL, IN, KY, MD, MT, MS, NJ, NC, OH, PA, SC, TN, VA and WV. The shoe stores, selling shoes for the entire family, occupy spaces of 2,800 sq.ft. to 5,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls and strip centers. Plans call for as many as 30 openings in the coming 18 months. Expansion will take place throughout the Eastern, Midwestern and Southern regions.

Signs Now

Dewey Easton

4900 Manatee Avenue West, Suite 200

Bradenton, FL 34209

800-356-3373

Specialty

The 200+-unit chain operates locations throughout North America, Puerto Rico, Australia, England and Spain. The "instant" sign shops occupy spaces of 1,200 sq.ft. to 1,500 sq.ft. in strip centers. Plans call for 70 openings in the coming 18 months. Expansion will take place both nationwide and internationally.

Wild Oats Markets, Inc.

dba Wild Oats Markets

Bennett Bertoli

6025 South Quebec, Suite 330

Englewood, CO 80111

303-689-9258

Supermarket

The 43-unit chain operates locations in CA, CO, FL, KS, MO, NM, NV and Canada. The natural foods supermarkets occupy spaces of 10,000 sq.ft. to 34,000 sq.ft. in freestanding facilities and strip centers. Ideal spaces range from 20,000 sq.ft. to 25,000 sq.ft. Plans call for as many as 10 openings annually. Expansion will take place throughout North America.

 

Space Place

Connecticut

Brookfield- White Turkey Shopping Center is anchored by T.J. Maxx, Waldbaums, CVS, OfficeMax and The Wiz. The 147,396 sq.ft. project has a 3,500 sq.ft. space available for lease.

For details, contact CDC Commercial Real Estate at (203-222-8022), Fax (222-0690).

Massachusetts

Great Barrington- Barrington Plaza is anchored by Kmart and Price Chopper. The 134,768 sq.ft. project has spaces from 8,000 sq.ft. to 20,250 sq.ft. available for lease.

For details, contact Barry Milberg of Kimco Realty Corp. at (516-869-7180).

New Jersey

East Brunswick- Route 18 Shopping Center is anchored by Movie City V, Party Fair and Pelican Ski & Pool. The 132,000 sq.ft. project has spaces of 3,600 sq.ft. and 10,000 sq.ft. available for lease. In Hamilton- Whitehorse Plaza is anchored by ShopRite and Radio Shack. The 57,000 sq.ft. project has spaces of 1,900 sq.ft. and 2,500 sq.ft. available for lease. In Woodbridge- Colonia Shopping Center is anchored by JoAnne Fabrics and Lifestyle Fitness. The 60,000 sq.ft. project has spaces available for lease.

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

North Brunswick- Fashion Plaza Shopping Center is anchored by Wal*Mart, Burlington Coat Factory, Office Depot, HomePlace, Baby Superstore and Modell's. The 400,092 sq.ft. project has a 6,599 sq.ft. space available for lease.

For details, contact Barry Milberg of Kimco Realty Corp. at (516-869-7180).

New York

Greece- An 18,000 sq.ft. freestanding space is available for lease.

For details, contact Anthony Vita of Vita & Vita Realty Corp. at (201-227-5233).

Middletown- Dunning Farm Shopping Center is anchored by T.J. Maxx, Toys 'R Us, Kids 'R Us, Staples, Rx Place, Service Merchandise, Media Play, Linens 'N Things, JoAnne Fabrics and A.C. Moore. The 400,000 sq.ft. project has spaces from 1,000 sq.ft. to 30,000 sq.ft. available for lease. The site is located adjacent to Orange Plaza Mall.

For details, contact Peter Brawley of Chase Enterprises at (203-549-1674), Fax (293-4289).

Rochester- Henrietta Shopping Center, a 123,000 sq.ft. project, has 105,000 sq.ft. available for lease.

For details, contact Barry Milberg of Kimco Realty Corp. at (516-869-7180).

Ohio

Dayton- A shopping center anchored by Drug Emporium has spaces of 2,800 sq.ft. and 6,000 sq.ft. available for lease. The site is located near Kroger and Meijer. Also in Dayton- Pinewood Plaza is anchored by Kroger. The project has spaces of 2,400 sq.ft. and 7,500 sq.ft. available for lease.

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

Rhode Island

Providence- Shaw's Plaza is anchored by Super Shaw's Grocery, Fashion Bug, CVS and Chili's. The 121,700 sq.ft. project has two spaces running 2,000 sq.ft. each, two spaces running 2,500 sq.ft. each as well as a 4,000 sq.ft. space available for lease. In Warwick- Clocktower Square is anchored by D'Angelo's and Carpet City. The 31,151 sq.ft. project has a 4,400 sq.ft. space available for lease. Also in Warwick- Meadowbrook Shopping Center is anchored by CVS, Cost Plus, Picway Shoes and McDonald's. The 108,696 sq.ft. project has spaces of 1,500 sq.ft., 2,000 sq.ft. and 7,745 sq.ft. available for lease.

For details, contact John Culmone of Picerne Properties at (401-732-3700), Fax (736-5636).

Texas

Houston- Almeda Mall is anchored by Foley's and J.C. Penney. The 800,000 sq.ft. project has spaces from 800 sq.ft. to 30,000 sq.ft., as well as pad sites, available for lease. Also in Houston- Northwest Mall is anchored by Foley's and J.C. Penney. The 800,000 sq.ft. project has pad sites available for lease.

For details, contact Vincent Worley or Ed Farris of Partners Commercial Realty at (713-629-0500).

San Antonio- Spaces of 1,173 sq.ft., 1,200 sq.ft., 3,105 sq.ft., 3,240 sq.ft. and 8,800 sq.ft. are available for lease at The International Center along the city's Riverwalk on South St. Mary's Street.

For details, contact Terri Rubiolia of Centro Properties at (210-224-2213).

Virginia

Hampton- Langley Square Shopping Center, a 154,000 sq.ft. project, has anchor positions available for lease. In Virginia Beach- Holland Plaza Shopping Center is anchored by Food Lion and Revco. The 86,000 sq.ft. project is being expanded by 87,000 sq.ft. and spaces are available for lease in both sections of the project. An outparcel is also available for lease. Demographics include a three-mile population of 152,704 earning $45,527 as the average household income.

For details, contact John Katsias of The Katsias Company at (757-490-3585).

Richmond- Libbie Place Shopping Center, which is currently under development, is anchored by Target, Reading China & More!, Boston Market, Blockbuster Video, Einstein Bagels and Kinkos. Spaces from 1,189 sq.ft. to 17,155 sq.ft. area available for lease.

For details, contact Tred Spratley of Sigma National, Inc. at (804-320-6100, Ext. 320), Fax (320-6660).

 

Retailers Keeping Up with The Times

Blockbuster Entertainment (954-832-3000) plans to open a video store on the first floor of its new headquarters in Dallas, TX. The store will feature runners who will deliver tapes to customers in nearby office buildings. To expedite the return of the tapes, Blockbuster plans to place drop boxes around the downtown area.

Camelot Music, Inc. (330-494-2283) recently launched Camelot Music CD Genie (http://www.camelotmusic.com), which is the first web site owned and operated by a music retailer. The site is designed to take the guess work of buying music. The site provides the capability to preview every music track on a CD through a 30-second soundbite as well as an interactive ordering form to purchase the CD. Approximately 80,000 CDs with 1.2 million soundbites are available.

Scotty's (941-297-6075), a FL-based home improvement chain, recently expanded its product selection at 33 of its 95 stores to include linens, pillows, tablecloths, dinnerware, curtains, housewares, carpeting and playhouses. Another 30 stores are expected to be renovated and remerchandised during Summer. The company decided to expand its product selection in an effort to attract more women shoppers.

Costco (206-313-6360) has begun selling gasoline at its Albuquerque, NM and Scottsdale, AZ stores. Prices at the two Costco stores are up to 15 cents less per gallon than what the rest of the market is selling the gasoline. Costco is seeking permits to sell gasoline at its stores in Federal Way, Southcenter and Issaquah, WA, and Costco president and CEO James Sinegal guarantees that prices will come down if his company gets into the gasoline business.

ValueVision International, Inc. (612-947-5207), the nation's third largest television home-shopping network, recently entered into an agreement to acquire a 15% interest in NetRadio Network, a national distributor of music, computer software and interactive CD ROM products. Following the acquisition, ValueVision's 24-hour per day shopping program audio feed will be carried by NetRadio, which is one of the most popular music and entertainment sites on the Internet. NetRadio Network (www.netradio.net) specializes in using streaming technology that enables listening to audio--both music and news--while the computer users accesses the Internet of works on PC desktop applications