The Dealmakers Issue Number 13 for the week of April 11, 1997.

My Way by Ted Kraus

It took me 51 years to discover why I'm not rich. Originally, I thought (this is when I was young and stupid and believed in "Truth, Justice and the American Way") and all that it took to succeed in this country was a good idea, a lot of hard work and a little luck. I also thought that if I believed in something, I'd back it with my own money. Well I just learned it's OPM (Other People's Money) that makes you rich and you never invest your own cash.

I was at a client's office the other day going over a leasing strategy when they asked me to sit in and provide some input on a potential investment. The "presenters" were two of the slickest people I've ever met, they made Clinton envious. Long story short, they (the promoters) put together a package (with options, no real money ever passed through their hands) on five centers for sale they wanted to bring to "Wall Street" on the 80/20 basis. The package they claimed was worth $100 million, therefore they were seeking $20 million from my clients. They made a great presentation (mostly lies, but a great presentation) and showed enormous upside to an investor.

I happened to have leased and partially developed one of the centers in my former life at Arlen, so I knew that particular property well and one of the others I had done a feasibility study for a potential buyer a few years ago (I recommended against acquiring it). They of course, disagreed with everything I said that was negative and I'm sure were wondering why this #$%^&** was sitting in on the meeting. At the end they asked for $20 million dollars for a preferred return of 12% and lots of upside (there was over one million sq.ft. in the portfolio, with 200,000 sq.ft. being vacant, therefore, according to them, the vacancies were pure profit, the fact that it had been vacant for nearly five years was immaterial). My clients asked the promoters how much of their own money was being invested and they replied "none." When asked why not (they would be the managing partners and get 35% of any upside plus management, marketing, redevelopment and whatever fees), they replied they don't operate that way. (Huh?)

The clients offered to loan 'em $5 million (personally guaranteed of course, my clients aren't stupid) to put into the deal. They declined. Well, my clients turned the deal down, but I'm sure some idiot with $20 million to spare (or two morons with $10 million each) will invest, lose most of their investment, but the promoters will make millions. What really frustrates me is I never thought of doing this, because if I had done it years ago, I'd be rich by now and retired.

On another topic, business has been slow lately, since for the last few years I've been "pushing" the sale of centers and for a while, business was great, but the price of centers has become so costly, none of our "regulars" are interested, so out of desperation, I made a cold call and met with a small REIT regarding their acquisition requirements (they don't subscribe to Dealmakers, so they have no idea what I've written about in the past regarding REITS). During our meeting and discussion of cap rates, "philosophy," etc., we regressed into a discussion on the future of REITS. Their executive VP said the prices currently being paid is insane and many of the REITS have to fail, but right now they're raising lots of cash from the market and paying their executives extremely well, so why worry, since he's one of the well paid executives. It's scary when the buyer doesn't believe in what they are buying.

OH, before I forget, I said it in the last "My Way" and I'll say it again, this year's Vegas show will set a record and should be extremely productive, so plan on attending now. The cheap airfares are selling out and the hotels are filling up, so don't delay or it will cost you a lot more. Anyone involved in this industry full time who doesn't attend is nuts.

Parting thoughts, Ann & I attended New York University's seminar/exhibit on "Technology in Real Estate" recently and while not well attended, anyone with just a little bit of vision could see the future as they walked the floor, whether it be doing demographics on-line, well beyond what's currently available, lease negotiations, management or tenant prospecting. I know a lot of you are bored of hearing so much about "technology and real estate," but it's our future. For example, right now for free, at Home Page http://www.cityguide.lycos.com you can get basic information on 400 U.S. metropolitan areas. It's a great way to do preliminary research on new markets. Soon, there will be paid service providing aerials, demographics, plot plans, etc. available on the Net when you need to do serious research. At http://www.worldpages.com you can retrieve detailed graphical views of selected cities as well as look for information about specific sites. And let's not forget our site at http://www.dealmakers.net where you can view hundreds of properties for sale. There are thousands of other free sites providing every imaginable sort of information. By the end of this century (three years from now), we'll be able to "call up" all of Simon's portfolio on the Net, see vacancies, sales and tenant mix. You'll be able to send a "robot" out on the Net finding all shopping centers listed for sale in Phoenix, AZ or see the physical condition of a center submitted for lease without leaving your desk.

Conventional retailing will also change drastically, virtual shopping at your favorite supermarket or apparel shop will become common for the top third of the nation's population (the ones with the money for a computer and modem). Many (not all) stores will become showrooms for walk-ins, but the bulk of their business will be via the "modern mail order companies" now forming on the Net and I think the value of centers will stabilize or drop in value because of this (i.e. Wal*Mart is setting up a Home Page with over 300,000 items to purchase on-line, some cheaper than in their stores). But retailing isn't the only aspect of real estate that will be affected. Office buildings will also drop in value as more people "tele-commute" and work out of their home/car.

I personally believe that with the next 10 years, over one third of the working population will not go into an office on a daily basis, which means less square footage required and location will not be as important. Right now for $425 you can add a camera and phone to a laptop and with wireless communications about to become reality, the employer can see their employee and maintain a "bond." This cost will probably drop to less than $100 within two years. So why maintain an office for a lot of your people if they could operate out of their home and instead of dropping into their office, click a button and you'll see 'em, making it acceptable to the company.

The most radical change will be where we live (and what we pay for a home). Why live in North Jersey in a $300,000 home because of its close proximity to NYC when you can live in South Padre Island, TX in a $100,000 home overlooking the Gulf of Mexico and commute to your office via a computer. Homes in South Padre will increase in value while homes in North Jersey will decrease, the world will change drastically in the near future, hopefully we're all ready.

P.S. I was talking to David Hinkle of the Book Market and Tama Shor of Directory of Major Malls about the Temporary Tenant show that recently attended in Nashville, TN. Both raved about the attendance and energy level of the entrepreneurs involved in this mini-industry, which seems to be growing at an increasing rate, and while still a "mall thing," strips are also benefiting from the growth of temporary tenants. A friend of mine, Jim Starr, is holding "The Greatest Sale on Earth!," putting together dozens of retailers on a temporary basis in 200,000 sq.ft. of the 1.8 million sq.ft. Forest Fair Mall in Cincinnati, OH. It will be interesting to see how it works.

Home Improvement Retailers Planning To Add Stores

Menards operates 126 locations in IL, IN, IA, MI, MN, NE, ND, SD and WI. The home improvement stores occupy spaces of 160,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for as many as 15 openings annually. Expansion will take place in the existing markets.

For more information, contact Marvin Prochaska, Menards, 4777 Menard Drive, Eau Claire, WI 54703; 715-876-2207, Fax 876-2555.

Hechinger Company trades as Hechingers at 64 locations in AL, AR, DE, GA, IL, IN, KY, ME, MD, MA, MI, MS, MO, NH, NJ, NY, OH, PA, TN, VA and Washington, D.C. The home improvement stores occupy spaces of 110,000 sq.ft. in freestanding facilities and strip centers. Plans call for three openings in the coming 18 months. Expansion will take place within the existing markets.

The company also trades as Home Quarters at 54 locations in AL, AR, DE, GA, IL, IN, KY, ME, MD, MA, MI, MS, MO, NH, NJ, NY, OH, PA, TN, VA and Washington, D.C. The home improvement stores occupy spaces of 110,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

For more information on the above two companies, contact Roger Wright, Hechinger Co., 1801 McCormick Drive, Largo, MD 20774; 301-925-3006, Fax 925-3936.

Wallpaper Atlanta/Dwoskin's trades as Wallpaper Atlanta at six locations in GA. The home improvement stores, selling wallpaper and window treatments, occupy spaces of 3,000 sq.ft. to 4,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market.

For more information, contact Bobby Williams, Wallpaper Atlanta/Dwoskin's, 5903 Peachtree Ind'l Boulevard, Norcross, GA 30092; 770-449-5180, Fax 446-6237.

Brookhart, Inc. trades as Brookhart Building Center at 11 locations in CO. The home improvement stores occupy spaces of 34,000 sq.ft. to 36,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market. The company also operates one Brookhart Lumber Yard.

For more information, contact Tom Watt, Brookhart, Inc., 3105 North Stone, Colorado Springs, CO 80907; 719-471-4500, Fax 471-4505.

Miller Bros. Wallpaper & Paint operates 11 locations in KY and OH. The stores, selling paints and supplies, wallcoverings and window treatments, occupy spaces of 2,500 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Bob Schmank, Miller Bros. Wallpaper & Paint, PO Box 12210, Cincinnati, OH 45212; 513-531-1517, Fax 458-5060.

Buyers & Sellers of Commercial Properties

Pyramid Brokerage Company, Inc. brokered the sale of a 30,000 sq.ft. building on Syracuse, NY. The buyer was Walt's Auto and the sellers was JP Byrne.

For more information, contact John Sposato or Michael Kalet at (315-445-1030).

First Capital Realty announces the sale of the 98,016 sq.ft. Northway Shopping Center in Anne Arundel County, MD. The company also brokered the sale of the 96,720 sq.ft. Four Mile Fork Shopping Center in Fredericksburg, VA.

For more information, contact First Capital Realty at (301-907-3200).

Kelly Consulting Group, Inc. represented Aaron Rents, Inc. in its acquisition of a 20,000 sq.ft. freestanding building in Orlando, FL.

For more information, contact Kelly Consulting Group at (813-281-2525).

CB Commercial is hosting an auction of Southtown Mall in Fort Wayne, IN. The 910,317 sq.ft. project, which is 87% occupied, is anchored by Sears, J.C. Penney, L.S. Ayres, Kohl's and Service Merchandise. Demographics include a trade area population of 194,521 earning $45,952 as the average household income. Bids are due on or before April 17.

For more information, contact CB Commercial at (770-951-7895).

U.S. Restaurant Properties recently acquired the land and building of 21 restaurant properties in five separate transactions for a combined purchase price of $13 million. The properties include two Pizza Huts, one Chi Chi's, two Schlotsky's and 16 Bruegger's Bagels in three states. These acquisitions bring total properties owned by U.S. Restaurant to 346.

For more information, contact U.S. Restaurants Properties at (972-387-1487).

Simon DeBartolo Group (317-636-1600) plans to spend between $500 million and $1 billion on acquisitions, $300 million on expansion of existing properties and $200 million on new developments this year. During 1996, the company spent $3.2 billion on acquisitions, $200 million on new developments and $200 million on expansion of existing properties.

Holliday Fenoglio Dockerty & Gibson represented GE Investments in the sale of two supermarket-anchored shopping centers. The first project is the 268,854 sq.ft. Preston Park Village in Plano, TX and the second project is the 126,247 sq.ft. Mills Pointe in Carrollton, TX.

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

The R.H. Johnson Company represented American Drug Stores, Inc. (dba Osco Drug) in its acquisition of three acres of land in Topeka, KS.

For more information, contact Owen Buckely at (816-561-5111).

Property Resources brokered the sale of Little River Square Shopping Center in Goldsboro, NC. The 118,120 sq.ft. project is anchored by Food Lion, Revco and Big Lots.

For more information, contact Brian Grabowski at (919-831-9090), Fax (856-2530).

CB Commercial Real Estate Group represented Metropolitan Life Insurance Company in its sale of Town & Country Shopping Center in San Jose, CA. The 320,324 sq.ft. project is anchored by AMC Theatres, Chili's Grill & Bar, Togo's, Hobee and Country Inn restaurants, Eli Thomas Menswear, Patio World and Mail Boxes, Etc. The site was acquired by Federal Realty Investment Trust for $42 million.

For more information, contact Jim Randolph at (408-453-7440) or Peter Van Meter at (415-772-0492).

Renaissance Properties brokered the sale of a 30,000 sq.ft. former Foodtown supermarket in Plainfield, NJ. The new owners have converted the facility into a shopping center anchored by Drug Fair and Blockbuster Video. Approximately 6,000 sq.ft. remains available.

For more information, contact Darrin Hiban at (908-972-2900).

H. Stephen Kirschner, Inc. represents an investment group in the market to acquire food/drug anchored or discount department store anchored shopping centers located from ME to SC.

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

Sources of Financing

CBL & Associates Properties, Inc. (423-855-0001) recently closed long-term, fixed-rate loans totaling $127 million on two of its regional malls. A 10-year loan in the amount of $75 million with an interest rate of seven percent was secured for Hamilton Place in Chattanooga, TN and a $52 million loan with an interest rate of 6.95% and a five-year term was secured for Westgate Mall in Spartanburg, SC. Both loans are non-recourse to the company and are based on 25-year and 20-year amortization schedules, respectively. The proceeds from these two loans were used to refinance existing fixed rate debt on Hamilton Place at a lower interest rate, eliminate the floating-rate debt on Westgate Mall, pay off fixed-rate debt on Hamilton Crossing in Chattanooga, TN and reduce outstanding amounts on CBL's lines of credit.

Mergers & Acquisitions

U.S. Office Products Co. (202-339-6700) recently completed the acquisition of 11 office supply stores from 11 independent retailers for a total purchase price of $22.9 million in cash and stock. The businesses acquired include: Discount Desk Center of Canoga, CA; Expert Office Services of Beltsville, MD; G&L VBJ Office Products of Austin, TX; IQ 2000 of Atlanta, GA; Kruger's of Stevens Point, WI; Office Supply Division of Lee Graphics of Chicago, IL; Office Supply Division of Little's Office of Seattle, WA; Office Supply Division of Marco Business Products of St. Cloud, MN; Portland Supply & Printing of Portland, OR; Poor Richard's Almanac of Salinas, CA and Way Office of Dubois, PA. U.S. Office Products operates more than 150 office supply stores nationwide, as well as in Australia, Canada, New Zealand and the United Kingdom.

A&W Restaurants, Inc. (313-462-0029) recently signed an agreement to acquire Carousel Snack Bars of Minnesota, Inc., owner of 175 restaurants trading as A&W Hot Dogs & More. Carousel units are located in regional malls in 40 states. A&W Restaurants plans to continue to operate the units as if they were a wholly-owned subsidiary, while continuing to franchise the A&W Restaurant concept. Currently, A&W Restaurants operates more than 800 restaurants in 46 states and nine foreign countries. During 1996, 139 units were opened and plans call for an additional 200 units during 1997.

Alrenco, Inc. (812-949-3370) recently acquired 12 rental-purchase stores in three separate transactions and the signing of letters of intent to acquire two additional stores. Nine of the stores were acquired from Monterey TV Center, Inc. and are located in FL, NC and SC. Three of the stores were acquired from Whitaker Partners Ltd. and are located in TX and VA. Letters of intent were signed to acquire two stores in Dallas, TX.

VF Corporation (212-782-0276) recently signed a letter of intent to acquire Maidenform Worldwide, Inc. The transaction is subject to approval and the execution of a definitive agreement.

Video Update, Inc. (612-222-0006) recently signed a letter of intent to acquire the assets of Superior Video, a 27-unit chain based in British Columbia, Canada. The acquisition is subject to Canadian regulatory approval and other conditions. Once the acquisition is completed, Video Update will operate 331 video stores, including 123 in Canada.

The Maxim Group, Inc. (770-590-9369) recently executed non-binding letters of intent to acquire McSwain Carpets, Inc. and The Flooring Center, Inc. McSwain operates stores in the Cincinnati, Columbus, Dayton and Toledo, OH markets and The Flooring Center operates stores in the Orlando, FL market. The Maxim Group, which operates and franchises 600 stores throughout North America, plans to use the acquisitions as the basic infrastructure to support a full scale roll out of its Flooring Idea Gallery stores throughout OH and the Orlando markets. As many as 30 stores are expected to be opened.

Checkers Drive-In Restaurants, Inc. (813-441-3500) and Rally's Hamburgers, Inc. (502-245-8900) recently announced that they have agreed in principle to merge the two companies. Under terms of the letter of intent, each share of Rally's common stock will be converted on completion of the merger into three shares of Checkers common stock. Rally's outstanding warrants will become exercisable for three shares of Checkers common stock. Upon completion of the merger, Rally's will become a wholly owned subsidiary of Checkers. The transaction is expected to be completed during the second or third quarter of this year. The completion of this merger will result in a combined total of 949 Checkers and Rally's restaurants, including 473 company-owned units and 476 franchise-operated units. The companies' combined revenues for 1996 were $327.8 million and systemwide sales for 1996 of the combined companies were $661.7 million.

Financial News...

The Home Depot (770-433-8211) recently announced that it plans to decline the opportunity to purchase Reno-Depot, Inc., an 11-unit home improvement retailer operating in Quebec province in Canada. Home Depot held the first right of refusal if the chain was sold by its majority owner Molson Companies. In rejecting the opportunity to acquire the chain, Home Depot said that Reno-Depot did not fit the current investment criteria for Home Depot's Canadian division. The Home Depot also reported that its fiscal 1996 net earnings increased 28% to $938 million from $732 million during FY95. Sales for the year increased 26% to $19.535 billion from $15.47 billion the previous year and comparable store sales were up seven percent for the year. At the end of its fiscal year, the company operated 512 stores in the U.S. and Canada.

T. Eaton Company (416-343-2332), which operates 120 department stores throughout Canada, recently filed for protection under Canada's Companies' Creditor Arrangement Act. The company has been in business for 127 years.

The Wet Seal, Inc. (714-583-9029) reported that its 1996 earnings were $15.252 million, compared to 1995 earnings of $5.815 million. Sales for 1996 were $374.94 million, compared to sales of $266.69 million during 1995. Comparable store sales increased 8.8% for the year. The company, which operates 364 young women's apparel stores in 34 states and Puerto Rico, plans to open 30 stores during fiscal 1997.

Gantos, Inc. (616-949-7000) reported that its fiscal year net income was $2.3 million, down from $3.7 million during its 1995 fiscal year. Net sales for the year were $184.36 million, down from $192.79 million during FY95. The company operates 114 women's apparel and accessories stores in 23 states.

Ross Stores, Inc. (510-505-4400) reported that its net earnings for the year increased 87% to $80.9 million from $43.3 million during 1995. Sales for the year were up 19% to $1.69 billion from $1.426 billion during 1995. Comparable store sales increased 13% for the year. The company operates 309 stores nationwide.

The Cato Corporation (704-551-7201) reported that its net income for 1996 was $7 million, down from $12 million during 1995. Sales for the year increased slightly to $477 million from $476.6 million during 1995 with comparable store sales down two percent for the year. During the year, the company opened 28 stores and closed 44 to end the year with 655 stores in 20 states. The women's specialty apparel stores trade as Cato Fashion/Cato Plus and It's Fashion!

The Mills Corporation (703-526-5000) recently announced that it will not pursue a Mills-type project in Monee, IL. The decision was made following a five month period of due diligence, which involved traffic, engineering and overall feasibility studies. In November 1996, the company announced its intent to study the feasibility of the development of a 582 acre site, located adjacent to I-57, approximately eight miles south of I-80. The company chose not to develop the site based on this delay in the construction of the extension of I-355. The company's management determined this indefinite postponement affected the infrastructure required to support a Mills project. However, the company still believes that Chicago is a strong market for a second Mills project and will continue to evaluate alternate sites in the market.

Lead Sheet

Ashland Oil, Inc.

dba Valvoline Instant Oil Change

Joe Graddy

PO Box 14046

Lexington, KY 40512

800-622-6846, Fax 606-264-7049

Automotive

The 493-unit chain operates locations nationwide. The automotive service centers, specializing in quick-service oil changes, occupy spaces of 15,000 sq.ft. in freestanding facilities. Plans call for 60 openings in the coming 18 months. Expansion will take place nationwide.

Multimedia Replay

Steve Moriarty

910 West Lake Street

Minneapolis, MN 55408

612-823-2205

Computers

The company operates one location in MN. The store, selling both new and used computers and software, occupies a 3,500 sq.ft. space in a freestanding facility. Plans call for as many as five openings in the coming 18 months. Expansion will take place in the Twin Cities area of MN. Spaces in strip centers are also being sought.

Cochran Brothers Co., Inc.

dba Friendly Gus

Benjamin Cochran

320 South Jefferson Street

Dublin, GA 31021

912-272-2143

Convenience Store

The 15-unit chain operates locations in GA. The convenience stores, which also sell gasoline, occupy spaces of 2,275 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market.

The May Department Stores Co.

dba Lord & Taylor

R. Dean Wolfe

601 Olive Street

St. Louis, MO 63101

314-342-6300, Fax 342-6497

Department Store

The 66-unit chain operates locations in CO, CT, DE, FL, GA, IL, LA, MD, MA, MO, NJ, NY, PA, TX, VA and Washington, D.C. The upscale department stores occupy spaces of at least 100,000 sq.ft. in downtown store fronts, freestanding facilities and regional malls. Plans call for as many as five openings in the coming 18 months. Expansion will take place within the existing markets.

Reel Entertainment

Dale Reese

PO Box 130

Veradale, WA 99037

509-924-7514, Fax 922-3735

Entertainment

The 10-unit chain operates 32 movie screens in NJ, NY, OR, PA, VA and WA. The movie theaters, featuring movies for an admission price of $1.50, occupy spaces of 10,000 sq.ft. to 17,000 sq.ft. in power and strip centers. Plans call for as many as five openings in the coming 18 months. Expansion will take place in PA and WA and possibly in other existing markets.

The Robert Organization

dba Lucille Roberts Health Clubs

Rick Greenberg

10 East 80th Street

New York, NY 10021

212-734-0500, Fax 628-0809

Fitness

The 30-unit chain operates locations in NJ and NY. The fitness clubs occupy spaces of 6,000 sq.ft. to 10,000 sq.ft. in downtown store fronts, freestanding facilities, specialty and strip centers. Plans call for 12 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 150,000 within five miles. Leases running 15 years, with two options running five years each, are typical and the company is licensing its concept.

Renee Beauty Salon, Inc.

dba Beauty Bar

Daniel Coniglio

PO Box 600

Pottsville, PA 17901

717-429-1800, Fax 429-1143

Hair Salon

The three-unit chain operates locations in PA. The upscale hair salons occupy spaces of 1,500 sq.ft. to 2,000 sq.ft. in regional malls. Growth opportunities are sought in the existing market.

Art's Diamond Jewelers

dba Allan's Jewelers

Alan Meltzer

201 Market Street North

Canton, OH 44702

330-455-5348, Fax 455-4155

Jewelry

The company operates one unit in OH. The stores, selling jewelry at moderate price-points, occupies a 1,200 sq.ft. space in a downtown store front. Regional malls spaces are also preferred. Growth opportunities are sought in the existing market.

Sam Ash Music Corp.

dba Sam Ash Music

Jerome Ash

278 Duffy Avenue

Hicksville, NY 11801

516-932-6400, Fax 931-3881

Music

The 15-unit chain operates locations in CT, FL, NJ and NY. The stores, selling musical instruments and sound systems, occupy spaces of 20,000 sq.ft. to 25,000 sq.ft. in freestanding facilities, regional malls and strip centers. Preferred anchors include Kmart and Wal*Mart. Plans call for five openings in the coming 18 months. Expansion will take place in AZ, NE, TX and WA. Preferred demographics include a population of 1 million within 15 miles earning $50,000 as the average income. Leases running 10 years are typical and the company prefers a vanilla shell.

The Tavel Optical Group

dba Vision Values, Shade,

Dr. Tavel's One Hour Optical

Larry Tavel

2839 Lafayette Road

Indianapolis, IN 46222

317-924-1300, Fax 924-3741

Optical

The 33-unit chain operates locations in IL, IN and OH. The optical stores occupy spaces of 1,000 sq.ft. to 3,200 sq.ft. in regional malls. Preferred anchors include Lord & Taylor and other upscale tenants. Growth opportunities are sought in the existing markets. Leases running five to 12 years, with options, are typical.

Party City

Valerie Szymaniak

400 Commons Way

Rockaway, NJ 07866

201-983-0888, Fax 983-1333

The 207-unit chain operates locations in AL, AK, AR, AZ, CA, CO, CT, DE, FL, GA, HI, IL, KS, LA, MD, MI, NJ, NY, NC, OH, OR, PA, TN, TX and Puerto Rico. The stores, selling party supplies, occupy spaces of 9,000 sq.ft. to 12,000 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for 90 openings in the coming 18 months. Expansion will take place nationwide. The company is franchising.

Eagle Pacific

dba Scamps Pet Centers

Michael Twain

203 S.E. Alder #202

Portland, OR 97214

503-239-4266, Fax 239-4268

Pet Store

The 14-unit chain operates locations in OR and WA. The pet stores occupy spaces of 2,000 sq.ft. to 10,000 sq.ft. in power centers and regional malls. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets. Leases running seven years are typical.

Cord Camera Centers, Inc.

dba Cord Camera Video, 55 Minute Photo

Steve Cordle

PO Box 44406

Columbus, OH 42304

614-276-5000, Fax 276-7686

Photography

The 28-unit chain operates locations in OH and IN. The stores, selling cameras, camcorders and offering photo processing services, occupy spaces of 800 sq.ft. to 5,000 sq.ft. in freestanding facilities and strip centers. Plans call for five openings in the coming 18 months. Expansion will take place in the existing markets.

Marty Shoes, Inc.

dba Marty Shoes

Robert Schmidt

60 Enterprise Avenue North

Secaucus, NJ 07094

201-319-0500, Fax 319-1446

Shoes

The 62-unit chain operates locations in CT, FL, NJ, NY, NV and PA. The stores, selling shoes, handbags and hosiery, occupy spaces of 7,500 sq.ft. in freestanding facilities, outlet and strip centers. Plans call for 10 openings annually. Expansion will take place in the existing markets.

MVP Sports Stores, Inc.

dba MVP Sports

Jim Ryan

326 Lisle Road, Ste 100

Braintree, MA 02184

617-848-6994

Sporting Goods

The 15-unit chain operates locations in MA and NH. The sporting goods stores occupy spaces of at least 25,000 sq.ft. in a variety of real estate settings. Plans call for two openings annually. Expansion will take place in ME, MA and NH.

Haggen's, Inc.

dba Haggen Foods, Top Foods

Tom Kenny

PO Box 9704

Bellingham, WA 98227

360-733-8720, Fax 650-8235

Supermarket

The 17-unit chain operates locations in OR and WA. The supermarkets occupy spaces of 45,000 sq.ft. to 80,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

Video U.S.A. Entertainment, Inc.

dba Video U.S.A.

Hans Trinler

10 Fifth Street

Valley Stream, NY 11581

Video

The 19-unit chain operates locations in FL, GA, LA, MS, PA and WI. THe video stores occupy spaces of 3,500 sq.ft. to 4,500 sq.ft. in freestanding facilities, specialty and strip centers. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for the opening of four units in the coming 18 months. Expansion will take place in FL, LA and MS. Preferred demographics include a population of 25,000 within three miles earning at least $25,000 as the average income. Leases running five to 10 years are typical and the company cites Blockbuster Video, Movie Gallery and supermarkets with video departments as competition.

Who's Opening and Where...

Aaron's Rental Purchase (404-231-0011) recently opened its second store in Montgomery, AL.

Starbucks (206-447-1575) recently opened its first five South FL units when it opened coffee shops in Plantation, Coral Gables, Kendall, Miami and Fort Lauderdale. The company is also planning to open a 1,500 sq.ft. store in part of a former Thrifty Drug store in Visalia, CA. The company plans to open 325 stores this year and plans growth throughout the Pacific Rim, including China and Japan, in the coming years.

Blimpie (212-673-5900) and Bridgeman's (612-931-3099) plan to open as many as 20 dual-branded units throughout MN before the end of the year. Six co-branded units are currently open. Bridgeman's operates 32 full-service family restaurants and soda fountains in IA, MN and WI and Blimpie's operates more than 1,600 submarine sandwich shops in 47 states and five countries.

CKE Restaurants, Inc. (714-774-5796) recently amended its dual-brand agreement with GB Food Corp., operator of the Green Burrito Mexican restaurants. Under the original agreement, CKE agreed to convert a minimum of 140 Carl's Jr. restaurants to Carl's Jr./Green Burrito dual-brand restaurants over a five-year period. The modified agreement calls for a minimum conversion of 60 units per year for the next four years, including the 66 locations already converted, to bring the total commitment to 306 units.

Kohl's Department Stores (414-783-5800) recently opened nineteen department stores in Ellicott City, Laurel, Bowie, Waldorf and Germantown, MD; Woodbridge, Fredericksburg and Springfield, VA; Evansville, IN; Philadelphia, Whitpain Township, Exton, Havertown, Springfield, Delaware County, Allentown, Lower Makefield and Oxford Valley, PA; Brandywine and Kirkwood, DE and Cherry Hill and Marlton, NJ. Nine of the locations in the Philadelphia market are former Clover stores.

Thrifty-Payless, Inc. (503-685-6125) plans to open a 17,253 sq.ft. pharmacy with a drive-thru, the first Payless in Southern CA to have a drive-thru, by the end of this month. The unit is the first of 100 planned openings along the West Coast this year.

Pottery Barn (415-421-7900) and Banana Republic (415-952-4400) recently opened a 12,331 sq.ft. store and 6,668 sq.ft. store, respectively, at the former QFC grocery store space at University Village in Seattle, WA.

Old Navy Clothing Co. (415-952-4400) recently opened a 14,000 sq.ft. store at Northland Square Shopping Center in Cedar Rapids, IA.

Raley's (916-373-3333) plans to open a Bel Air supermarket at a proposed shopping center in Elk Grove, CA.

Saks (212-753-4000) recently opened a Saks Fifth Avenue department store at The Mall at Shelter Cove in Hilton Head, SC and is planning to open a 25,000 sq.ft. Saks Off Fifth Avenue Outlet Store at Tanger Outlet Center in Riverhead, NY next month.

Gateway 2000 (605-232-2000) plans to open an 8,000 sq.ft. Gateway 2000 Country Store in Tampa, FL this month. The store will feature demonstration computers from the company's catalog and a limited line of software.

Home Depot (770-433-8211) plans to open a 105,704 sq.ft. store with a 24,103 sq.ft. garden center in the Spokane Valley area in WA.

CompUSA, Inc. (972-982-4000) recently opened a 22,200 sq.ft. store at Prairie Towne Center in Madison, WI. The company is planning to open a 22,700 sq.ft. store at Market Place Shopping Center in Knoxville, TN during Summer and a 28,300 sq.ft. store at Baybrook Gateway Shopping Center in Webster, TX during Fall.

Let's Talk Cellular & Wireless (305-477-8255), which currently operates 67 stores in CA, CO, FL, GA, MD, NJ, NY, PA, VA, Washington, D.C. and Puerto Rico, plans to open as many as 15 stores in each of those markets. Another 100 openings are planned for 1998.

Harold's Stores, Inc. (405-329-4045) plans to open a 5,500 sq.ft. upscale men's and women's apparel store at Bradley Fair Shopping Center this month.

Sears, Roebuck & Co. (847-286-6254) plans to consolidate its Tire America and National Tire Warehouse stores into a new format called National Tire and Battery beginning next month. All 275 stores are expected to be converted by August. Sears is also planning to open 100 National Tire and Battery stores annually with a goal of operating more than 700 NTB units by 2001.

Hoyts Cinema Corporation (617-267-2700) plans to open a 30,000 sq.ft., 10-plex movie theater at Laurel Mall in Hazelton, PA during early 1998.

Edwards Theatres Circuit, Inc. (714-640-4600) plans to open a 92,500 sq.ft., 22-screen movie complex at Huntington Center in Huntington Beach, CA during Spring 1998.

Winn-Dixie (904-783-5000) plans to open a 48,468 sq.ft. supermarket in Tallahassee, FL.

Lease Signings

Harding & Associates (804-282-1590) leased 13,000 sq.ft. to Hanover County Library System at Atlee Square Shopping Center in Richmond, VA and 2,000 sq.ft. to Commercial Credit at Arch Village Shopping Center in Richmond, VA.

Harding Dahm & Company (219-423-4311) leased 6,200 sq.ft. to Dollar General, 2,200 sq.ft. to Open View MRI and 1,800 sq.ft. to Blimpies at Parkwest Center in Fort Wayne, IN.

CB Commercial Real Estate Group (847-948-5510) leased 6,750 sq.ft. to Blockbuster Video at Highland Square Shopping Center in Morton Grove, IL; 3,600 sq.ft. to Ameritech Cellular at Yorktown Commons in Waukegan, IL; 3,200 sq.ft. to Bedding Experts at Riverside Square in Chicago, IL; 3,000 sq.ft. to Bed Mart at McHenry Grounds Shopping Center in McHenry, IL; 2,660 sq.ft. to Bed Mart at Prairie Town Shopping Center in Schaumberg, IL; 1,800 sq.ft. to Household Finance at Southpoint Shopping Center in Arlington Heights, IL; 1,700 sq.ft. to Honey Bee Health Spa in Westmont, IL and 1,200 sq.ft. to One Hour Moto Photo at Scharrington Square Shopping Center in Schaumburg, IL.

U.S. Equities (312-456-7000) leased 13,000 sq.ft. to Rochester Big & Tall at 840 N. Michigan Avenue in Chicago, IL.

Exclusives: Leasing & Management Assignments

Levin Management Corporation (908-755-2401) has been named the exclusive managing, leasing and construction agent for North Village Shopping Center in North Brunswick, NJ. The company is planning a total redevelopment of the 135,000 sq.ft. project and is marketing a 120,000 sq.ft. space. Services already in place include a dry cleaner, Chinese restaurant and a liquor store as well as a diner in a freestanding building.

J.J. Herman & Associates (216-663-0088) has been named the exclusive agent for Golden Griddle Restaurants in northern OH and Erie, PA. The 50+-unit chain is seeking sites running 3,500 sq.ft. to 6,000 sq.ft., preferably in hotels/motels. The company has also been named the exclusive agent for Red, Hot and Blue Restaurants in northern OH. The company is seeking sites running 4,000 sq.ft. to 6,000 sq.ft.

Prudential Commercial Services (503-371-1234) has been named the exclusive leasing agent for The Salem Center Mall in Salem, OR. The 658,000 sq.ft. project is anchored by Nordstrom, Mervyns, J.C. Penney and Meier & Frank. Other tenants include Gap, The Limited, Eddie Bauer and Victoria's Secret. The company is seeking both large and small tenants, including local, regional and national chains. Food court spaces are also available.

Retail Consulting Services, Inc. (212-239-1100, e-mail: RCS460@AOL.com) has been retained as special real estate, business and bankruptcy consultant by Linen Supermarket, Inc. a 107-unit chain based in south FL. The stores range in size from 8,000 sq.ft. to 18,000 sq.ft. and are located in FL, GA, TX, OH and MI. RCS specializes in analysis and restructuring of store leases and other real estate in or out of the bankruptcy environment.

Bennett Williams, Inc. (717-795-1070) has been named the exclusive leasing agent of Broadcasting Square in Spring Township, PA. The proposed 550,000 sq.ft. project, which is being developed by Harrison & Grass, will be anchored by national tenants in the categories of discount retail, department store, supermarket and others.

CB Commercial Real Estate Group, Inc. (305-381-6462) represented Busy Body Fitness Warehouse in its entry into the south FL market. Leases were signed at Colonial Palms Plaza in Miami; The Fountain Shopping Center in Plantation; Somerset Shops in Boca Raton and for a freestanding building in West Palm Beach.

Starr & Associates Hosts "Greatest Sale on Earth!"

Starr & Associates, Inc., a national brokerage company, will host "The Greatest Sale on Earth!" beginning July 4 at Forest Fair Mall in Cincinnati, OH. For three months, the 1.8 million sq.ft. mall, which is anchored by Bigg's, Kohl's, Elder Beerman and Comp USA, will feature approximately 200,000 sq.ft. of manufacturers outlet stores and off-price tenants in a variety of categories on a temporary basis. The sale is expected to run for three months and will be highlighted by fireworks, music and other special events. Demographics of the mall include a five-mile population of 145,850 earning $56,842 as the average household income. The event is being conducted by Starr & Associates, Inc. which has been successfully organizing similar events, on a somewhat smaller scale, for more than three years.

To participate in "The Greatest Sale on Earth!" or for more information, contact Jim Starr, Starr & Associates, Inc., 7508 East Independence Boulevard, Suite 118, Charlotte, NC 28227; 704-532-2350, Fax 532-2545.

The Dealmakers Issue Number 13 for the week of April 11, 1997.

My Way by Ted Kraus

Home Improvement Retailers Planning To Add Stores

Buyers & Sellers of Commercial Properties

Sources of Financing