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The Dealmakers Issue Number 24 for the week of July 11, 1997. My Way by Ted Kraus Ann and I were having dinner the other day and got into a conversation about who went bankrupt recently and who will shortly. As I mentioned a company, she'd say the name of the VP of Leasing and then added "What a moron." She would then say the name of another "11" company and I'd call the real estate guy a schmuck. It then dawned on us that there might be a correlation between the intelligence of a company's real estate department and the probability of the company going under. When we got back to the office, we did a computer search of all the times "11" or bankrupt were discussed in The Dealmakers. Every time a named popped up, we'd name the real estate head and discuss what type of person he/she is (believe it or not, we do have a life, it's just that when you're both in the same industry, "crazy" conversations do occasionally come up). Probably in 70% of the cases, the bankrupt company had an incompetent idiot in charge, and this isn't just mine or Ann's opinion, it was commonly accepted thoughts throughout the entire industry. Now don't get me wrong, I'm not blaming the real estate department for bankrupting the chain, that honor usually falls to operations, but the arrogance and stupidity of the leasing department provides great insight into where top management's "head" is. Keep this in mind when you talk to some imbecile and he turns down your great center, you can feel better knowing he's going to be looking for a job shortly when his company files "11." (FYI, a number of my friends have worked for bankrupt companies and they are extremely competent, unfortunately they are the exception to the rule.) On a different note, I was doing some market analysis/leasing for a retailer last week and driving the market that we "think" they wanted to be in. It's predominantly a blue-collar, middle class area with a combination of really old centers and new power projects. After mapping the area, I started calling developers on vacancies so I could get a feel for rents and extras. While I expected the newer centers to command a higher rent, that difference really was tremendous. I was being quoted $8 to $10 psf plus $1.75 to $2.50 for extras in the older centers and right next store (in the new center), they (landlords) were asking, and later I learned, were getting $20 psf and in some cases, $22 psf plus $2.50 to $4.00 in extras. The area did not have a high percentage of vacancies, and altogether I surveyed 20 centers, 11 being 10 years or older, five less than two years old and four were five years old. Yes, the newer centers had all the sexy players; Barnes & Noble, Noodle Kidoodle, PetsMart, etc., but in order to get to the sexy center you had to pass the old maids. It doesn't take Einstein to say, why not upgrade these centers and while they won't command $22 psf, I'd bet they could get $15 psf easily. We'll probably end up making a $9 deal, since this client doesn't require or need to be in the high rent district. They're close enough by being next door, but we would have paid a lot more rent if the owner had 1) a better looking center, and 2) asked for more. We were "quoted" $10 and they quickly dropped to $9. If they knew the market conditions for the area and understood tenants were paying $22 psf for the newer centers, they should have started at $13 psf. Oh well, it's only money. I read that DeBartolo and the Chelsea Group have agreed to a "strategic alliance" whereby DeBartolo will purchase $38 million +/- of Chelsea's stock and then they will be 50-50 partners on acquiring or developing outlet centers of a least 500,000 sq ft. Sounds like Chelsea is a better negotiator than DeBartolo to me. I'd be their partner and put up half of the money if you purchase enough of my stock so I can afford to. Now I'm not going to be an "I told you so," but the regular readers of this column should remember that for years I've been saying the future of outlet retailing is limited when it comes to "pure" outlet centers and the future will be in malls that are off-price, outlet and "traditional." The "Mills" concept to some extent started the trend. Although they are not "true" outlet, the pricing policies, no matter what their marketing material says, is not that great. It's an indication of where the industry is going. There was a Wall Street Journal article last week that spoke about the Mills concept and discussed with Laurence Siegel, the Mills president, about the public's perception that there was not great value in the centers. Siegel, while not agreeing with the reporter, didn't deny it either. He contended that if the shopper shopped enough stores, they'd find value. What they are doing, which has merit, is bringing together a variety of retailers that offer some discount off department store pricing (whatever that means) and that appears to be the trend. Anyway, back to the DeBartolo-Chelsea "alliance." The two companies, I have to assume, are trying to find the future of retailing and hope it's a combination of Chelsea's expertise in outlet centers and DeBartolo's in traditional malls. Since Simon-DeBartolo put up a lot of money to buy into Chelsea, I have to assume they think they will learn more than Chelsea. Parting thoughts....business is better than I thought. Because it's summer, Ann and I were planning a vacation and unfortunately, because it's summer, almost everyone else is planning a trip as well. Not only does that make it hectic on the road, hotels, airports and resort areas, but it means business will be slow 'till September. In anticipation of a slow summer and Josh's tuition being due shortly, I got together with a few friends and decided to do a broadcast fax to 4,000 of my closest retail friends offering our services for their new store selections and/or dispositions. While I can't say if it will make us any money, because the faxes are still going out, I've already received 20 inquiries from throughout the country, which means the end result should be 70-90 responses. The vast majority are from small chains (under 25 stores) who want strips predominately. And fortunately for them, but unfortunately for me, they know their markets and while wanting to expand are not willing to pay ridiculous rents. Ninety percent of those who responded were the president of the company and every potential location I mentioned, whether it be in New Jersey or Colorado, they were familiar with, but wouldn't pay the rent being asked. Almost all said "We're not public companies that have to show growth and paying $22 psf for space that's worth $15 psf only means I'll go out of business." So if I can figure out how to find great locations at reasonable rents, I've got it made and Josh can go to school next year. Last thought, recently two entertainment centers went out of business near where I live. They had an arcade, indoor golf, food, batting cages, go-karts, etc. They were 25 miles apart, so their failure had nothing to do with competition, however, both were five years old. Their closing made me think. I've probably done more roller rink deals than anyone else in the country, dozens of flea markets, lots of tennis courts, a few bowling alleys, Discovery Zone type stores, theaters and god knows what else that's considered "entertainment," so I consider myself somewhat knowledgeable on the subject. It dawned on me that few of these types of uses last longer than five years before closing; with flea markets probably having the longest life span. The reason I mention this is one of the "buzz" words in our industry today is "entertainment." Everyone is doing it, so it must be right, right? No, no, a thousands times no. Most will fail. Recently the Reichtman family of Canada announced they were developing a multi hundred million dollar entertainment complex in Rockaway, NY (what should be interesting is part of the complex is a year round indoor ski slope) and one in Canada. I have nothing but respect for the Reichtman's, they are to a certain extent, visionaries, but I lack faith in their concept, as I do in most of these types of ventures. Sure, if you spent enough megabucks to build a Forum in Vegas, have enough tourists and high rollers, it will work, but that's the exception not the rule. When they (developers in partnership with a retailer) build these "mini-amusement parks" in middle or even major markets, they fail. It may take five years, but they fail and there's no way they can recoup their investment that quickly. Oh well, like I said before, it's only money.
Retailers Seeking Sites Throughout New England PC Warehouse, Inc. trades as PC Warehouse at 87 locations nationwide. The computer stores occupy spaces of 4,000 sq.ft. in freestanding facilities and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in CT, ME, MA, NH, NJ, NY, PA and VT. For more information, contact Mark Du, PC Warehouse, Inc., 174 Route 17 North, Suite C, Rochelle Park, NJ 07662; 201-587-0910, Ext. 165, Fax 587-1734. Maurice Corp. trades as Maurice The Pants Man at nine locations in MA. The men's apparel stores occupy spaces of 6,000 sq.ft. in strip centers. Preferred anchors include supermarkets. Plans call for six openings in the coming 18 months. Expansion will take place throughout New England. Preferred demographics include a population of 18,000 within five miles. Leases running five years are typical and the company prefers a vanilla shell. For more information, contact Stanley Adler, Maurice Corp., 175 Heritage Avenue, Portsmouth, NH 03801; 603-436-0023, Fax 436-0470. Perfecta Camera Corp. trades as Perfecta Camera and Adler's at 25 locations in ME, MA, NH, NY and VT. The camera stores, which also feature one-hour film processing services, occupy spaces of 1,000 sq.ft. to 3,000 sq.ft. in strip centers. Plans call for at least six openings in the coming 18 months. Expansion will take place in CT, ME, MA, NH, NY, RI and VT. For more information, contact Charles Zoulias, Perfecta Camera Corp., 49 Harvey Road, Londonberry, NH 03053; 603-432-0501, Fax 434-2689. MVP Sports Stores, Inc. trades as MVP Sports at 15 locations in ME, MA and NH. The sporting goods stores occupy spaces of 30,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for three 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 earning $40,000 as the average income. Leases running 10 years are typical and the company cites Sports Authority as competition. For more information, contact Douglas Barron, MVP Sports Stores, Inc., 326 Ballardvale Street, Wilmington, MA 01887-1012; 508-657-0100, Fax 658-4854. Golub Corporation trades as Price Chopper and Mini Chopper at 101 locations in CT, MA, NY, PA and VT. The supermarkets occupy spaces of 38,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for eight openings in the coming 18 months. Expansion will take place in MA, NY, PA and VT. Preferred demographics include a population of 20,000 within three miles earning $25,000 as the average income. Leases running 20 years are typical and the company prefers a building allowance. For more information, contact, Ron Schleich, Golub Corporation, 501 Duanesburg Road, Schenectady, NY 12306-1014; 518-356-9283, Fax 356-4097. Papa Gino's, Inc. trades as Papa Gino's-Pizza & More at 175 locations throughout New England. The Italian fast food restaurants occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in freestanding facilities and strip centers. Preferred anchors include supermarkets and movie theaters. Plans call for 12 openings in the coming 18 months. Expansion will take place in the Boston, MA and Providence, RI markets. Leases running five years are typical. For more information, contact Richard Douglas, Papa Gino's, Inc., 600 Providence Highway, Dedham, MA 02026-6804; 617-461-1200, Fax 461-1896. CWT Specialty Store does business as Cherry & Webb at 49 locations in CT, MA, NH, RI and VT. The stores, selling apparel, cosmetics, jewelry and shoes, occupy spaces of 15,000 sq.ft. to 20,000 sq.ft. in regional malls, specialty and strip centers. Growth opportunities are sought in the existing markets through 1998 and in the existing markets and NJ and NY during 1999. For more information, contact Art Burak, CWT Specialty Store, c/o Burak & Associates, 271 Route 46 West, Suite A104, Fairfield, NJ 07004; 201-227-8023, Fax 227-0904. R.H. Reny, Inc. trades as R.H. Reny at 15 locations in ME. The department stores occupy spaces of 20,000 sq.ft. in downtown store fronts. Plans call for as many as two openings in the coming 18 months. Expansion will take place in the existing market. For more information, contact John Reny, R.H. Reny, Inc., 1 School Street, Damariscotta, ME 04543; 207-563-3177, Fax 563-5681. Putnam Card & Gift Shoppes, Inc. operates 18 locations in CT, MA and RI. The card and gift stores occupy spaces of 5,000 sq.ft. in downtown store fronts, regional malls, specialty and strip centers. Preferred anchors include Barnes & Noble, Borders, Filene's, JC Penney, Sears, T.J. Maxx and supermarkets. Plans call for as many as five openings in the coming 18 months. Expansion will take place throughout New England. Preferred demographics include a population of 60,000 within three to five miles earning $50,000 to $70,000 as the average household income. Leases running 10 years are typical and the company cites chain drug stores and mass merchandisers as competition. For more information, contact Doug Bowen, Putnam Card & Gift Shoppes, Inc., PO Box 5090, Westboro, MA 01581; 508-389-1800, Fax 389-1810. Robbins Auto Parts, Inc. trades as Robbins Auto Parts at 11 locations in ME, MA and NH. The automotive parts stores occupy spaces of 6,000 sq.ft. to 12,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in ME and NH. Leases running 10 years are typical and the company cites NAPA as competition. For more information, contact Robert Weisner, Robbins Auto Parts, Inc., 110 Washington Street, Dover, NH 03820-3749; 603-742-2414, Fax 742-3057. Tedeschi Food Shops, Inc. trades as Tedeschi Food Shop at 70 locations in MA, NH and RI. The convenience stores occupy spaces of 2,500 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in southern NH. For more information, contact Robert McGann, Tedeschi Food Shops, Inc., 14 Howard Street, Rockland, MA 02370-1998; 617-878-8210, Fax 878-0476. Kinney Drugs, Inc. trades as Kinney Drugs at 47 locations in NY and VT. The drug stores occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets. For more information, contact Richard Cognetti, Kinney Drugs, Inc., 29 East Main Street, Gouverneur, NY 13642; 315-287-1500, Fax 287-4291. Furniture Discount operates five locations in MA. The furniture stores occupy spaces of 10,000 sq.ft. in freestanding facilities. Plans call for one opening in the coming 18 months. Expansion will take place in the existing market. For more information, contact Bernard Rubin, Furniture Discount, 308 East Main Street, Norton, MA 02766-2520; 508-286-4000, Fax 286-4040. Lynn's Card & Gift operates four locations in MA. The card and gift stores occupy spaces of 4,000 sq.ft. in regional malls. Plans call for one opening in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 60,000 within five miles earning $45,000 as the average income. Leases running seven to 10 years are typical. For more information, contact Ronald Sacchetti, Lynn's Card & Gift, Independence Mall, Kingston, MA 02364; 617-585-5996, Fax 585-5250. Honey Farms, Inc. trades as Honey Farms at 37 locations in MA. The convenience stores occupy spaces of 3,000 sq.ft. in freestanding facilities. Plans call for six openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 5,000 within three miles earning $30,000 as the average income. Leases running five years, with three five-year options, are typical. For more information, contact Wilfred Iandoli, Honey Farms, Inc., 505 Pleasant Street, Worcester, MA 01609-1821; 508-753-7678, Fax 753-5388. Pizzeria Management Systems, Inc. does business as Ronzio Pizza at 18 locations in MA and RI. The pizza restaurants occupy spaces of 1,000 sq.ft. in downtown store fronts, outlet and strip centers. Plans call for six openings in the coming 18 months. Expansion will take place in CT and MA. Preferred demographics include a population of 10,000 within two miles earning at least $30,000 as the average income. Leases running five years, with a five-year option, are typical and the company, which cites Domino's Pizza as competition, is franchising. For more information, contact Julian Angelone, Pizzeria Management Systems, Inc., 194 Waterman Street, Providence, RI 02906; 401-751-4470, Fax 331-4720.
Host Marriott Looking To Expand Its Food Court Operations Host Marriott Services Corporation, a leading food, beverage and retail concessionaire at nearly 200 travel and entertainment venues in five countries, recently began turning its attention to the management of food courts at mega-malls with its signing as the concessionaire at Ontario Mills Mall in Ontario, CA and Grapevine Mills Mall located outside of Dallas, TX. In addition, the company recently signed a master lease with Simon DeBartolo Group to operate and manage the 6,100 sq.ft. food court at the 1.3 million sq.ft. Independence Mall in Kansas City, MO. Host Marriott plans to complete the change over by early 1998. The company, which has been in business for more than 65 years, has identified three areas for the growth of its business in the retail sector: mega malls, regional/super-regional malls and factory outlet centers. In fact, in the coming year Host Marriott is looking to open as many as 12 food courts at mega malls; as many as 10 food courts at regional/super-regional malls and as many as six food courts at factory outlet centers nationwide. According to Carlos Bernal, vice president of business development, the company currently has 20 projects at various levels in the works. Host Marriott helps developers with food courts by master leasing the entire food court space, operating and managing it themselves. Host Marriott is either a franchisee or licensee for more than 60 food and beverage companies which include fast food, pizza, bagels, donuts, and ice cream as well as several sit-down restaurant concepts. Before deciding which restaurants to place at a particular location, Host Marriott conducts customer surveys asking which brands, styles and types of food they would like to see at the mall. After the research is completed, Host Marriott then does its own tenant improvements and fitouts for the chosen brands and opens for business. In addition, the company recently announced that it has signed an agreement with CyberFlyer Technologies, LLC to test up to 30 public Internet access sites at selected Host Marriott restaurants located in airports nationwide. The CyberFlyer units, which are modeled after the original Philco television set, is a tabletop unit that offers paid Internet access via credit card. Using a T1 phone line, users will be able to access services such as online entertainment and games, audio and video Web sites, receive, send and forward personal e-mail, check travel information, and much more. For more information, contact Carlos Bernal of Host Marriott Services at (805-230-1100), Fax (230-1111).
Closings Clothestime (714-779-5881) recently asked the bankruptcy court for permission to close 58 of its underperforming stores. Old America (903-532-5547) plans to close as many as 25 of its 102 stores during the second quarter and reporting a first quarter net loss of $2.99 million. Barney's, Inc. (212-886-1410) plans to close its stores in Manhattan, NY; Troy, MI and Dallas and Houston, TX by the end of September. The Manhattan store, which opened in 1923, was the company's first retail location.
Buyers & Sellers Flocke & Avoyer Commercial Real Estate represented Bruce MacDonald, Trustee UTA in its acquisition of a 40,000 sq.ft. PetsMart store in Chula Vista, CA. The seller was Paseo Corners, Ltd. and the purchase price was $5.165 million. For more information, contact Brian Quinn at (619-280-2600). James E. Hanson, Inc. is in the market to acquire single tenant sale/leasebacks which can be with below investment grade tenants, existing or to be built with construction funding. For more information, contact Pete Kellner at (201-488-5800), Fax (488-0246). Hiffman Shaffer Associates, Inc. represented the seller in the sale of Lake Mill Plaza in Addison, IL. The 94,439 sq.ft. project is anchored by Frank's Nursery and Armanetti Liquors. The property was sold to a private investor. For more information, contact Edward Zifkin at (312-332-3555). Adams-Nelson & Associates, Inc. brokered the sale of a 9,500 sq.ft. freestanding CVS Drug store in Randallstown, MD. The purchase price was $1.4 million. For more information, contact Jonathan Hipp at (540-667-2441). Koll/Crowley Retail Group brokered the sale of Gateway Town Center in Riverside, CA. The buyer was American Stores Properties and the seller was Norco Corona Associates. American Stores plans to develop a 65,476 sq.ft. Lucky/Sav-On supermarket on part of the site. For more information, contact Vince Bueti or Mike Jordan at (714-833-7590). Palladian Realty, Inc. has the listing to sell a freestanding CVS/pharmacy in Atlanta, GA. The 10,125 sq.ft. building is triple net leases for 20 years with a seven percent rental increase every five years. The lease commences during November. The asking price is $1.968 million. For more information, contact Paul Marotte at (404-847-0342), Fax (845-4007). JP Realty, Inc. recently acquired Silver Lake Mall in Coeur d'Alene, ID. The 300,000 sq.ft. project is anchored by JC Penney, Sears, Emporium and Lamont's. The purchase price was $27 million. For more information, contact John Price or Rex Frazier at (801-486-3911). General Growth Properties recently acquired Town East Mall in Mesquite, TX. The 1.25 million sq.ft. project is anchored by Dillard's, Foley's, J.C. Penney and Sears. The purchase price was $56.5 million. In other news, General Growth Properties is rumored to be looking to acquiring IBM's pension fund portfolio of shopping centers worth $1 billion. The portfolio contains 13 properties representing approximately 12 million sq.ft. of space. For more information, contact John Bucksbaum at (312-551-5005). The Swiss Group, Inc. has the listing to sell Champaign Village in Champaign, IL. The 145,000 sq.ft. project is anchored by Hobby Lobby and County Market. The projected NOI for 1997 is $410,052. The asking price is $4.6 million, which includes two undeveloped outlots. For more information, contact Frank Swiss at (317-816-9270), Fax (816-9271), E-mail (swiss_group@iquest.net). CB Commercial Real Estate Group represented Canica Properties, Inc. in its sale of Desert Square Shopping Center in Tucson, AZ. The 97,700 sq.ft. project, which is anchored by Safeway, was acquired by Weingarten Realty Management Co. For more information, contact Mike Sandahl, Pete Villaescusa or Pat Darcy at (520-323-5100). Eagle Realty Group has the listing to sell nine Winn-Dixie anchored projects in the greater Cincinnati, OH market. The sites include six freestanding stores, two anchored retail centers and one strip center. The total portfolio size is 513,920 sq.ft. and the 1997 pro forma NOI is $4.066 million. For more information, contact Jeffrey Johnston or Steven Timmel at (513-361-7777).
Sources of Financing Pine Street Development L.L.C. (206-340-9897) recently completed the construction financing for its Pacific Place project, a 335,000 sq.ft. retail, restaurant and entertainment center currently under construction in downtown Seattle, WA. The site is expected to open during September 1998. Construction financing was assembled by Seafirst Bank. Participants included Seafirst, Washington Mutual Bank and Multi-Employer Property Trust, together providing $127 million in loans. Approximately one-half of the project is leased, tenants include General Cinema Theatres, Pottery Barn, Williams-Sonoma Grande Cuisine, Il Fornaio restaurant, Helly Hanson outdoor apparel, Jeremiah Tower's Stars Restaurant, Gordon Biersch Brewing Company, Canyon Cafe and Starbucks. Liberty Mortgage Acceptance Corporation (916-568-0100) recently placed permanent financing in the amount of $3.747 million for a Wal*Mart Center in Colorado Springs, CO. The loan is for 15 years at a fixed rate. Berkshire Mortgage Finance (800-662-5787) announces the closing of a $3.6 million loan to purchase Landmark Village Shopping Center in Arlington, TX. The 10-year loan carries a rate of 9.32% and amortizes over 25 years with a loan value of 72%. Landmark Village is a 72,822 sq.ft. project containing 22 tenants. The company announces that its Capital Markets Group announces the closing of a $9.1 million loan to refinance five retail buildings totaling 220,565 sq.ft. within the Burlington Manufacturers Outlet Center in Burlington, NC. Financed under Berkshire's Commercial Program, the 10-year loan amortizes over 25 years and has a loan value of 75%. Burlington Manufacturers Outlet Center consists of 22 buildings, comprising 449,000 sq.ft. containing approximately 75 outlet shops and restaurants. Three of the largest tenants include Burlington Coat Factory, WestPoint Pepperell and Mikasa. The company also announces the closing of a $3.9 million loan to refinance the Marketplace at Tamarac in Tamarac, FL. The loan has a rate of 9.16% and a 72% loan to value. The 67,445 sq.ft. project is anchored by Walgreens, Georgia Carpet Outlet, Sherwin Williams and Advest. David Cronheim Mortgage Corporation (201-635-6800) recently arranged first mortgage financing in the amount of $8.4 million for AmCap Inc.'s Pacesetter Park Shopping Center in Ramapo, NY. The 76,922 sq.ft. project is anchored by Grand Union, which is undergoing a rehabilitation and expansion of 20,845 sq.ft. to bring the center's total GLA to 97,767 sq.ft.
Mergers & Acquisitions Kmart Corp. (810-643-1000) recently announced that it has completed the sale of Kmart Canada Co. to an investor group which includes York Management Services, Inc., Capital d'Amerique CDPG Inc. and Cherokee Ventures Canada, Inc. Kmart Corp. will receive $185 million (Cdn.) in cash and a three-year note, and will retain a 12.5% equity interest in Kmart Canada. The company currently operates 123 stores throughout Canada which posted 1996 sales of more than $1.1 billion (Cdn.). Frederick's of Hollywood, Inc. (213-466-5151) recently signed a definitive merger agreement to sell its company to an investor group led by Chicago-based Knightsbridge Capital Corp. The stockholders of Frederick's will receive all cash, in the amount of $6.14 per share, in exchange for each share of Class A and Class B Capital Stock. Following the merger, Frederick's will be privately held and will continue to operate its retail and mail order businesses under its present name. The merger is expected to close by the end of this month.
Who's Opening & Where Grill Concepts, Inc. (310-820-5559) plans to open The Grill restaurant at The San Jose Fairmont in San Jose, CA during early 1998. It is the company's first entry into a hotel venue and its first entry into Northern CA. Watermare Food Management Co. (713-783-0500) plans to open Original Pasta Co. franchised stores in Austin, Dallas, San Antonio and throughout western TX. Future plans call for franchises nationwide. IncrediPet (606-269-7377) plans to expand its chain through franchises. The stores sell pet food and supplies. Kohl's Corp. (414-783-5800) plans to open an 86,000 sq.ft. department store at Northcross Community Shopping Center in Huntersville, NC during August 1998. Wal*Mart (501-273-4000) recently held its annual shareholders meeting and announced plans to open 50 new discount stores and 100 new supercenters, 70 of which will be upgrades to existing stores, nationwide this year. In addition, the company plans to open as many as 10 Sam's Clubs nationwide and as many as 35 Wal*Mart stores in its international division. Home Depot, Inc. (770-433-8211) plans to enter the Kansas City, MO market before the end of the year. The company also announces that it recently signed an agreement with S.A.C.I. Falabella to open Home Depot stores throughout Chile. The first unit is expected to open in Santiago, Chile during 1998. May Department Store Co. (314-342-6300) plans to open a Robinson-May Department Store at Inland Center in San Bernardino, CA during November 1998. The company also plans to open Lord & Taylor department stores at Owings Mills Town Center, White Marsh Mall and The Mall in Columbia in the Baltimore, MD-Washington, D.C. market and at Mall St. Matthews in Louisville, KY during Fall 1998. Schlotzsky's Deli (512-469-7500) plans to open a freestanding 3,000 sq.ft. restaurant on an outlot of Premiere Place Shopping Center in Prattville, AL during September. Western Auto Supply Co. (816-346-4420) recently announced plans to open at least 500 Parts America stores nationwide in the coming five years. Hallmark Cards (816-274-4721) recently opened a Hallmark Gold Crown Showcase store at The Commons Shopping Center in Memphis, TN and is planning to open a second Memphis unit at Cross Creek Center next month. The company plans to open as many as 30 units during the remainder of this year. Ralph's Grocery Co. (310-884-9000) plans to open a 51,028 sq.ft. supermarket at Corona Village in Corona, CA during mid-1998. Fabri-Centers of America, Inc. (216-656-2600) recently opened a Jo-Ann Etc. mega-store in Jackson Township, OH. The company is planning to open additional mega-stores in Franklin, TN; Las Vegas, NV; Saginaw, MI and Minneapolis, MN. Applebee's Neighborhood Grill & Bar (913-967-4000) plans to open a restaurant through its franchisee Apple American, L.P. at SuperMall of the Great Northwest in Auburn, WA during December. J.C. Penney (214-431-1000) plans to open a 31,000 sq.ft. J.C. Penney Catalog Outlet Store at 100 Oaks Mall in Nashville, TN during Fall. Best Buy (612-947-2000) plans to open a 45,000 sq.ft. store in St. Petersburg, FL this month. Developers Diversified Realty Corp. (216-247-4700) announces that the following retailers plan to open stores in its shopping centers: Goody's Family Clothing plans to open a 27,000 sq.ft. store next month at Rivertowne Square in New Bern, NC; A.C. Moore plans to open a 24,560 sq.ft. store during Fall at Shoppers World in Framingham, MA; Stein Mart plans to open a 34,000 sq.ft. store, Coomer's Craft plans to open a 14,500 sq.ft. store, Blockbuster Video plans to open a 7,000 sq.ft. store and Wendy's Bridal plans to open a 4,400 sq.ft. store next month at Towne Center Prado in Marietta, GA; and Kroger plans to open a 47,285 sq.ft. store this month and OfficeMax plans to open a 23,500 sq.ft. store during September at Liberty Fair Mall in Martinsville, VA.
Space Place Connecticut North Haven- Waldbaum's Shopping Center is anchored by Waldbaum, CVS and Fashion Bug. The 120,000 sq.ft. project has space available for lease. In Orange- Shaws Plaza is anchored by TJ Maxx and Shaw's Supermarket. The 162,000 sq.ft. project has space available for lease. For details, contact Mary Ann Savarese of RD Management Corp. at (212-265-6600). Florida Fort Walton Beach- Space is available for lease at Fort Walton Square Shopping Center. Demographics include a 10-mile population of 104,263 earning $32,418 as the average income. For details, contact Basil Bethea, III of Realty House Commercial Properties, Inc. (904-244-9117), Fax (664-6622). Maine Damariscotta- Spaces of 5,982 sq.ft. and 7,560 sq.ft. are available for lease. In Portland- Spaces of 6,851 sq.ft. and 7,375 sq.ft. are available for lease. In Presque Isle- Spaces of 5,175 sq.ft., 6,300 sq.ft. and 8,092 sq.ft. are available for lease. In Rockland- Spaces of 8,680 sq.ft. and 9,300 sq.ft. are available for lease. In South Portland- Spaces of 9,000 sq.ft. and 10,622 sq.ft. are available for lease. In Waterville- Spaces of 4,300 sq.ft. and 14,951 sq.ft. are available for lease. For details, contact Jim Matthews of Prime Locations at (972-991-7000). Massachusetts Holyoke- Holyoke Plaza is anchored by Kmart, Food Mart, CVS and East Coast MarketPlace. The 223,810 sq.ft. project has spaces of 1,560 sq.ft., 1,600 sq.ft., 2,000 sq.ft., 3,000 sq.ft., 6,250 sq.ft., 7,500 sq.ft. and 15,000 sq.ft. available for lease. Demographics include a five-mile population of 142,869 earning $33,986 as the average household income. For details, contact Russ Hire of Equity Investment Group at (404-364-2984), Fax (364-2985). New Hampshire Dover- A 13,700 sq.ft. space is available for lease. In Portsmouth- A 7,200 sq.ft. space is available for lease. For details, contact Jim Matthews of Prime Locations at (972-991-7000). New Jersey Lawrenceville- A 5,500 sq.ft. space is available for lease. The site fronts Route 1. In Princeton- A 4,250 sq.ft. space is available for lease. The site fronts Witherspoon Street. For details, contact Thomas Romano of Bushman Jackson Gross at (609-896-1600), Fax (896-1753). Rhode Island Pawtucket- An 8,200 sq.ft. space is available for lease. In Providence- Two spaces of 6,720 sq.ft. each are available for lease. For details, contact Jim Matthews of Prime Locations at (972-991-7000). Vermont Bennington- A 4,800 sq.ft. space is available for lease. In West Rutland- A 6,500 sq.ft. space is available for lease. For details, contact Jim Matthews of Prime Locations at (972-991-7000). West Virginia Clarksburg- Eastpointe Shopping Center is anchored by Kmart and Kroger. The project has a 3,360 sq.ft. space available for lease. Demographics include a five-mile population of 39,514 earning $32,420 as the average income. Also in Clarksburg- Gabriel Brothers Plaza is anchored by Gabriel Brothers and Big Lots. The 104,956 sq.ft. project has spaces of 1,562 sq.ft. and 1,584 sq.ft. available for lease. For details, contact Parry Petroplus of Petroplus & Associates, Inc. at (800-599-3001), Fax (598-3305).
Real Estate Professionals Making News U.S. Factory Outlets, Inc. (212-563-3650) announces the following management appointment: Mark A. Cole as vice president, general merchandise manager for all apparel and non-apparel departments. Most recently, Mr. Cole was vice president of apparel merchandising at U.S. Factory Outlets. He formerly held the position of v.p. of general merchandise manager for ready to wear and fashion accessories at McRae's, Inc., a division of Proffitts, Inc. Blockbuster Video (214-854-3198) recently named John Antioco as its chief executive officer. Antioco most recently was the head of Taco Bell. Wal*Mart Stores, Inc. (501-273-4000) recently named Mark Hansen president and CEO of Sam's Club and will also serve as executive vice president of Wal*Mart Stores. Hansen is currently president and CEO of PetsMart. Selig Enterprises, Inc. (404-876-5511) announces that Shirley Gouffon, vice president-retail leasing, has been appointed president of Commercial Real Estate Women (CREW).
Lead Sheet De Janeiro Stores, Inc. dba De Janeiro Arthur Djmar 420 Lexington Avenue New York, NY 10170 212-983-8933, Fax 983-4829 Apparel The five-unit chain operates locations in NY. The women's apparel stores occupy spaces of 2,500 sq.ft. to 3,500 sq.ft. in downtown store fronts and strip centers. Plans call for one opening in the coming 18 months. Expansion will take place in NJ or NY. Fulton & Sons, Inc. dba Sagesport Corky Fulton 119 West Mountain Kings Mountain, NC 28086-3447 704-739-2366, Fax 739-7059 Athletic Apparel The seven-unit chain operates locations in NC and SC. The stores, selling athletic apparel, footwear and equipment, occupy spaces of 2,800 sq.ft. to 3,600 sq.ft. in regional malls and strip centers. Plans call for one opening in the coming 18 months. Expansion will take place within the existing markets. The Pep Boys-Manny, Moe and Jack dba The Pep Boys, Parts USA James Kilberg 3111 West Allegheny Avenue Philadelphia, PA 19132-1116 215-229-9000, Fax 229-5076 Automotive The company operates 552 Pep Boys locations and 70 Parts USA stores nationwide and Puerto Rico. The automotive parts stores (Pep Boys stores also feature service bays) occupy spaces of 8,300 sq.ft. to 20,000 sq.ft. in freestanding facilities and power centers. Preferred anchors include Home Depot, Target and other big box users. Plans call for 200 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 75,000 within three miles earning $45,000 as the average income. The company cites AutoZone, Trak Auto and Western Auto as competition. Sherman's, Inc. dba Sherman's Hallmark Shop 5335 South Sheridan Road Tulsa, OK 74145-7521 918-664-0022, Fax 664-0303 Cards & Gifts The five-unit chain operates locations in OK. The card and gift stores occupy spaces of 4,000 sq.ft. in regional malls, specialty and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in AR, KS, MO, OK or TX. Leases running 10 years are typical. Kmart Corp. dba Kmart, Super Kmart Lorrence Kellar 3100 West Big Beaver Road Troy, MI 48084 810-643-1000, Fax 643-2689 Discount The 2,400-unit chain operates locations throughout North America. The traditional Kmart stores occupy spaces of 96,000 sq.ft. to 123,000 sq.ft. and the Super Kmart stores occupy spaces of 140,000 sq.ft. to 182,000 sq.ft. in freestanding facilities, regional malls and strip centers. Growth opportunities are sought nationwide. Deep Discount Drug, Inc. dba Drug Emporium Dale Rogers 13802 North Scottsdale Road Scottsdale, AZ 85254-3458 602-948-2266, Fax 951-9145 Drug Store The nine-unit chain operates locations in AZ. The drug stores occupy spaces of 20,000 sq.ft. to 25,000 sq.ft. in power and strip centers. Plans call for as many as three openings in the coming 18 months. Expansion will take place in the Phoenix and Tucson, AZ markets. Leases running 10 years, with two five-year options, are typical. Circuit City Stores, Inc. dba Circuit City Superstores, Circuit City Express, Circuit City Benjamin Cummings 9950 Mayland Drive Richmond, VA 23233-1463 804-527-4000, Fax 527-4186 Electronics The 480-unit chain operates locations nationwide. The consumer electronics stores occupy spaces of 3,000 sq.ft. to 39,000 sq.ft. in freestanding facilities, regional malls, power and strip centers. Preferred co-anchors include promotional retailers. Plans call for 90 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 200,000 within seven miles earning $32,000 as the average income. Leases running 20 years are typical. Mountasia Entertainment International, Inc. dba Mailibu Grand Prix, Mountasia Entertainment Gene Eisenberg 5895 Windward Parkway #200 Alpharetta, GA 30202 770-663-1280, Fax 663-1284 Entertainment The 53-unit chain operates locations nationwide. The entertainment centers, which offer arcades, batting cages, miniature golf, racing tracks and other attractions, occupy freestanding facilities on land areas running one to 12 acres. Preferred co-tenants include movie theaters and restaurants. Plans call for eight openings in the coming 18 months. Expansion will take place in CA, GA and TX. Preferred demographics include a population of 400,000 within 10 miles earning $40,000 as the average income. Leases running 35 years are typical. Gold's Gym Enterprises dba Gold's Gym Paul Grymkowski 358 Hampton Drive Venice, CA 90291 310-392-3005 Fitness The 500-unit chain operates locations worldwide. The fitness centers occupy spaces of at least 12,000 sq.ft. in freestanding facilities. Growth opportunities are sought worldwide. CiCi Enterprises, Inc. dba CiCi's Pizza Mike Karns 1620 Rafe #114 Carrollton, TX 75006-6642 972-466-2040, Fax 466-2041 Food The 240-unit chain operates locations in AL, AR, FL, GA, KY, LA, MS, MO, NM, NC, OK, SC, TN, TX and VA. The pizza restaurants occupy spaces of 3,600 sq.ft. to 3,900 sq.ft. in strip centers. Preferred co-tenants include movie theaters and video stores. Plans call for 75 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 50,000 within three miles earning $50,000 as the average income. Leases running 10 years, with two five-year options, are typical. The company, which is franchising, cites Pizza Hut and Mr. Gatti's as competition. Kelly and Cohen Bedrooms Tom Reed 6570 Interstate 85 Court Norcross, GA 30093 770-449-6631, Ext. 15, Fax 242-6340 Furniture The four-unit chain operates locations in GA. The stores, selling waterbeds, futons, mattresses and bedroom furnishings, occupy spaces of 6,500 sq.ft. to 8,500 sq.ft. in freestanding facilities, specialty and strip centers. Plans call for at least two openings in the coming 18 months. Expansion will take place in the existing market. Dollar Discount of America, Inc. dba Dollar Discount Mitchell Insel 1362 Naamans Creek Road Boothwyn, PA 19061 610-497-1991, Fax 485-6439 General Merchandise The 62-unit chain operates locations in CT, DE, GA, MD, MI, NJ, PA, SC and VT. The stores, selling general merchandise at the fixed price-point of $1, occupy spaces of 2,000 sq.ft. to 3,500 sq.ft. in strip centers. Preferred anchors include supermarkets. Plans call for as many as 24 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 50,000 within three miles earning $25,000 as the average income. Leases running three to five years, with options, are typical. The Cutters, Inc. dba Bo-Rics Hair Care Kevin Lambing 1350 Provincial Road Windsor, Ontario, CN N9A 6J3 519-966-2626, Fax 966-2624 Hair Salon The 345-unit chain operates locations nationwide. The hair salons occupy spaces of 1,200 sq.ft. in strip centers. Plans call for 60 openings in the coming 18 months. Expansion will take place in the Midwestern region. Kwal-Howells, Inc. dba Kwal-Howells Paint & Wallcover Ralph Reeves 3900 Joliet Street Denver, CO 80239 303-371-5600, Fax 373-5688 Home Improvement The 35-unit chain operates locations in CO, ID, NM, TX and UT. The home improvement stores occupy spaces of 4,000 sq.ft. to 5,000 sq.ft. in freestanding facilities, specialty and strip centers. Preferred anchors include Kmart, Target and Wal*Mart. Plans call for six openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 75,000 within 10 miles earning $35,000 as the average income. Leases running five years, with a five-year option, are typical. Brodkey Brothers, Inc. dba Brodkey Jewelry Ron Brodkey 12165 West Center Road #72 Omaha, NE 68144-3974 402-330-9800, Fax 697-0603 Jewelry The 10-unit chain operates locations in IA and NE. The jewelry stores occupy spaces of 1,200 sq.ft. in regional malls. Plans call for one opening in the coming 18 months. Expansion will take place within the existing markets. Preferred demographics include a population of 200,000 within 50 miles earning $37,000 as the average income. Leases running 10 years are typical. Colonial Opticians, Inc. Sylvia Williams 4942 St. Elmo Avenue Bethesda, MD 20814 301-657-3332, Fax 657-4092 Optical The five-unit chain operates locations in MD. The optical stores occupy spaces of 800 sq.ft. to 1,200 sq.ft. in freestanding facilities and strip centers. Plans call for one opening in the coming 18 months. Expansion will take place in the existing market. Valley Pet Center, Inc. dba Animal Kingdom, Pet Pad, Wildlife Safari Frank Mineo 2029 North Black Canyon Highway Phoenix, AZ 85009-2708 602-255-0166, Fax 255-0841 Pet Supplies The eight-unit chain operates locations in AZ. The stores, selling pets and supplies, occupy spaces of 3,000 sq.ft. in regional malls. Preferred anchors include department stores. Plans call for two openings in the coming 18 months. Expansion will take place in CA and NV. Preferred demographics include a population of 100,000 within five miles earning $50,000 as the average income. Leases running 10 years are typical. Party America, Inc. dba Party America, Party World, Streamers Al Ada 985 Atlantic Avenue Alameda, CA 94501 510-747-1800, Fax 747-1810 Party Supplies The 41-unit chain operates locations in CA, CO and UT. The stores, selling party supplies, occupy spaces of 10,000 sq.ft. in power, specialty and strip centers. Preferred co-tenants include apparel stores, bookstores and movie theaters. Plans call for six openings in the coming 18 months. Expansion will take place in AZ, NV and WA. Preferred demographics include a population of 150,000 within five miles earning $28,000 as the average income. Leases running 10 years, with two five-year options, are typical. Kits Cameras, Inc. dba Kits Cameras Tom Hansen 16400 Southcenter Parkway, Suite 301 Tukwila, WA 98188 253-872-3688 Photography The 140-unit chain operates locations in AK, AZ, CA, ID, NV, NM, OR and WA. The camera stores occupy spaces of 1,200 sq.ft. in regional malls. Plans call for 30 openings in the coming 18 months. Expansion will take place in the existing markets. The Clarks Companies of North America dba Hanover Shoe Store, Bostonian, Branded Shoe Outlets, Back Bay Shoe Co., Big Sky Shop Criss Nigro 156 Oak Street Newton Upper Falls, MA 02164 617-964-1222, Fax 243-4199 Shoes The 212-unit chain operates locations nationwide. The shoe stores occupy spaces of 1,000 sq.ft. in regional malls. Preferred anchors include department stores. Plans call for 10 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years are typical. Super Fresh Food Markets dba Super Fresh Donald Dauphin 707 Railroad Avenue Florence, NJ 08518 609-499-6035, Fax 499-6125 Supermarket The 69-unit chain operates locations in DE, NJ and PA. The supermarkets occupy spaces of 50,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls, power and strip centers. Plans call for six openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 20 years are typical. F.A.O. Schwarz Don Martin 767 5th Avenue New York, NY 10153 212-644-9400 Toys The 25-unit chain operates locations nationwide. The toy stores occupy spaces of 12,000 sq.ft. in regional malls. Plans call for six openings in the coming 18 months. Expansion will take place nationwide. First Video Allan Greenberg 9523 Kings Charter Road Ashland, VA 23005 804-550-2882, Fax 550-2111 Video The four-unit chain operates locations in VA. The video stores occupy spaces of 4,000 sq.ft. in strip centers. Growth opportunities are sought in the existing market.
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