The Dealmakers Issue Number 27 for the week of August 1, 1997.

My Way by Ted Kraus

Ann and I didn't get to go to the Reston, VA ICSC show (we went to Lake Tahoe instead, it was more fun), but Chris and Terri did go and reported back that while the show was good, attendance was down from last year. We were back in time (unfortunately) to attend the Boston show and while everyone in attendance was a happy trooper, traffic appeared to be off substantially from last year's show. Everyone we talked to said business was either great or good, in fact most said it was the best it's been in 10 years (however all were paranoid that it can't continue), so I couldn't figure out why attendance would be down at these two shows that traditionally are extremely well attended. Then it dawned on me, business is too good; everyone is making money and like Ann & myself, they're taking vacations. In the past, when business was slow, attendance was high because we all needed that "deal," now that there's cash flow, why kill yourself; instead relax and take some time off.

Another reason for low attendance is the economy being so good, most developers don't have any real amount of vacancies, so there's no product to lease. In addition, the smaller developers have stopped acquiring centers, since the "numbers" make no sense, they've decided to wait until the REITs start to go under because they're overpaying and then they'll go back into the market. So, if you have nothing to lease and aren't buying why waste your time attending a show. It ends up that these events are now heavily attended by brokers, since "we" don't have the luxury of owning income producing property and therefore have to work for a living.

The Boston show occurred the same time Montgomery Ward went "11" and the Wiz announced they were closing all their stores in CT and MA, so that became the center of many conversations. Most felt Ward won't make it, they're just too rotten of a merchant to continue in existence and the consensus was that Lechmere was going to be sold for its real estate, which is great. The landlords that had been playing hardnose with Wards regarding a payout for a closed Electronic Ave were up the creek without a paddle, since how do you re-lease a 50-60,000 sq.ft. store in a middle market? Middle market leasing is bad enough but 50-60,000 sq.ft. is the worst size store you can try and lease.

When it came to the Wiz, "everyone" agreed their real estate was good, but because they required so much TI to do the deal in the first place, their rents are substantially above market. How do you lease a store for $24 psf in an $18 market? This is a problem that will be "hitting" the industry even more so in the near future when many of the retailers that have been demanding (and receiving) high TI go under and there's no one willing to re-lease the store at their rent and it doesn't look (thank god) like inflation is going to help the developers or mortgagees out.

Talking about re-leasing, several of the retailers I spoke to who had hired a surplus space consulting firm to assist 'em in getting out or sub-leasing their vacant stores were going through a maturing/learning curve. It seems the company(s) they hired did a great job of getting rid of their prime properties, but when it came to the "C's, D's and F's" they bombed out and now the retailer and consulting company were becoming frustrated with one another. It's the same old story, anyone can lease the good stuff, it's the problems that require real expertise. Now that the economy is heated up and vacancy in any decent area is zilch, many retailers are also learning that their exclusive brokers aren't quite as honorable as they had thought. I've heard several retailers complaining their brokers were trying to convince 'em to take inferior locations (at high rents) because there was no "good stuff" available. Fortunately, it appears most retailers understand no deal is better than a bad deal. In a "discussion" between an exclusive broker and tenant, I overheard the retailer say "the site stinks, the only reason you recommend the deal is to make a commission." The tenant was correct and a "good" broker will look at the long term value of the tenant not the quick buck, but then again there aren't that many good brokers around, not that retailers are so honorable. I know one broker who over a two or three year period put six Office Depot deals together, all were ready to be signed, then the merger with Staples started and the deals were killed. Now that there's no merger, ask me if they went back to the broker and said, "Let's try again, we're sorry for what happened before." The answer in case you don't know is no.

I'm not saying they should have done the deals, "things" happen, but they could have shown some loyalty to the broker for all his work. Of course, the reason may be that there's no one left in Depot's real estate department to make a decision. Talking about retailers, a client of ours is trying to renegotiate a lease with a major drug chain but he's becoming extremely frustrated. It seems the real estate rep for the drug chain won't return his calls, all negotiations have to be via fax. Now I consider this extremely rude and unprofessional, but our client has been trying to improve the tenant's offer for three months and was getting nowhere (he sent faxes offering to fly to the tenant's office, meet at the lawyers office, do a conference call, or whatever and kept being told it can only be done via fax) so he's given up and given in, he's renewing the lease under their terms and conditions. While I don't agree with the tenant's methods, I have to give 'em five brownie points for results.

Continuing with a discussion on retailers, Builders Square and Hechinger are combining forces, similar to Rickels and Channel merging on the east coast and probably will have the same results. While the combined operation will be the third largest home center chain in the country, with both Home Depot and Lowes continuing their aggressive expansion programs, I think the new chain is dead meat unless its new management can get their act together. Comparing the chain to Home Depot and Lowes is like comparing Target and Bradlees, I know who's stock I'll buy.

In the same vain, Woolworth is closing all their variety stores. From a personal point of view, that's the end a great era. When I was a little kid, I'd go shopping with my mom in downtown Newark. If I was a "good boy" that day, I was allowed to go into Woolworth 5 & 10 cents store and get a toy. It was the highlight of my Saturdays growing up. However, here's another case of a retailer deserving to go out of business, since no matter what their management said, this was a division neglected and allowed to deteriorate, which was a shame. The good news is that there will be a lot of happy landlords out there after they buy back their stores. Many/most of the leases run in the $2-3 psf range, gross and are worth five to ten times that amount, net, today.

Getting back to our vacation, I noticed in California, that while the retailers in the west aren't any better than the east coast, the developers seem to be more creative in rehabing centers and they do it for less money than we do in the east. That makes more sense to me. I'll repeat my ongoing complaint, "we" spend to much time and money concerned about the center's appearance and not enough concerned about the tenants. Unless your the Forum in Las Vegas, the customer doesn't come to gawk at the center, they come to shop. Oh well, I complain too much so have a great summer.

Sign of The Times: Sign Shops Looking To Expand

Monotag Corp. does business as Signs First at 35 locations in AL, AR, CO, MS, TN and TX. The stores, which offer computer generated signs, banners and vehicle lettering, occupy spaces of 1,000 sq.ft. to 2,000 sq.ft. in specialty and strip centers. Preferred co-tenants include Wal*Mart. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical and the company is franchising.

For more information, contact Suzanne Cunningham, Monotag Corp., 813 Ridge Lake Boulevard, Suite 390, Memphis, TN 38120; 800-852-2163, Fax 901-682-2475.

Sign Biz, Inc. trades as Sign Biz at 130 locations throughout North America, the Bahamas, Mexico, Mongolia and the Philippines. The stores, offering computer aided vinyl signs and banners, occupy spaces of 1,200 sq.ft. to 1,600 sq.ft. in specialty and strip centers. Plans call for 24 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include 2,000 businesses within eight miles. Leases running three to five years are typical.

For more information, contact Sherry Suffens, Sign Biz, Inc., 10 Corporate Park, Suite 200, Irvine, CA 92606; 714-263-0400, Fax 263-1555.

Signs & More In 24 operates seven locations in OH, PA and WV. The stores, which offer computer generated signs and awnings, occupy spaces of 1,800 sq.ft. in freestanding facilities and strip centers. Plans call for as many as three openings in the coming 18 months. Expansion will take place in the existing markets. The company is franchising.

For more information, contact Bruce Bronski, Signs & More in 24, 1739 St. Mary's Avenue, Parkersburg, WV 26101; 800-358-2358, Fax 304-422-7449.

Signs Now Corp. trades as Signs Now at more than 200 locations throughout North America, Australia, England, Spain and Puerto Rico. The instant sign stores occupy spaces of 1,600 sq.ft. in strip centers. Preferred co-tenants include office supply stores. Plans call for 100 openings in the coming 18 months. Expansion will take place worldwide. Preferred demographics include 5,000 businesses within five miles. Leases running five years are typical and the company is franchising.

For more information, contact Kathy Polich, Signs Now Corp., 4900 Manatee Avenue West, Suite 201, Bradenton, FL 34209-3856; 941-747-7747, Fax 747-5074.

Speedy Sign-A-Rama operates 375 locations nationwide. The sign shops occupy spaces of 1,000 sq.ft. to 1,200 sq.ft. in specialty and strip centers. Plans call for 125 openings annually. Expansion will take place nationwide.

For more information, contact Bill Luce, Speedy Sign-A-Rama, 1601 Belvedere Road, Suite 402E, West Palm Beach, FL 33406; 407-640-5570, Fax 640-5580.

Sources of Financing

GMAC Commercial Mortgage (215-328-3383) has arranged $18.5 million in financing for the Penn Mar Shopping Center in Forestville, MD. The three-year, interest-only loan will refinance existing debt.

Berkshire Mortgage Finance (800-662-5787) recently closed a $3.5 million loan to acquire Rush Creek Shopping Center in Pantego, TX. Financed under Berkshire's Commercial Program, the 15-year loan carries a rate of 8.8% and amortizes over 25 years with a loan to value of 75%. The 75,931 sq.ft. project is anchored by Minyard's Grocery Store. The company also closed a $3.69 million loan to refinance Plaza 303 Shopping Center in Grand Prairie, TX. The 15-year loan carries a rate of 9.32% and amortizes over 25 years with a loan to value of 71%. The 118,194 sq.ft. project is anchored by Kroger.

Buyers & Sellers

Ground Round Restaurants plans to put 20 of its restaurants on the market for sale and leaseback in an effort to inject capital into the company and reduce its bank debt.

For more information, contact Ground Round Restaurants at (617-380-3100).

Simon DeBartolo Group plans to acquire a 50% interest in the 1.4 million sq.ft. Dadeland Mall in Miami, FL from Equitable Life Assurance Society.

For more information, contact Simon DeBartolo Group at (317-636-1600).

Ryon & Assoc. has the listing to sell Volusia Plaza in Daytona Beach, FL. The project is anchored by Service Merchandise and United Artists Theaters. The asking price is $3.75 million.

For more information, contact Kevin Kowalski at (813-876-2455), Fax (876-5757).

Grubb & Ellis brokered the sale of a 6,000 sq.ft. former Sizzler restaurant in Portland, OR to Steelhead Brewery.

For more information, contact Rod Dowhaniuk or Jim Parsons at (503-241-1155).

General Growth Properties, Inc. recently acquired Southlake Mall in Morrow, GA for $67 million. The company also acquired the remaining 61.8% of Eden Prairie Center in Eden Prairie, MN for $20 million.

For more information, contact General Growth Properties at (312-551-5000).

Garrick-Aug Associates Store Leasing, Inc. has the listing to sell 62-64 Main Street in New Canaan, CT. The 15,353 sq.ft. downtown retail, restaurant and office building has an NOI of $311,000 and is nearly 100% occupied.

For more information, contact David Hochberg at (212-850-0238).

Greenwood LSH Commercial Real Estate, Inc. has the listing to sell a Taco Bell in Rialto, CA. The NNN leased restaurant has an NOI of $109,777. The asking price is $1.24 million. The company has the listing to sell an Eckerd Drug store in TN. The NNN leased store has an NOI of $220,000. The asking price is $2.44 million. The company also has the listing to sell a Carl's Jr. Restaurant in CA. The asking price is $700,000.

For more information, contact Terry Marks at (310-478-4332), Fax (478-0993).

Capital Realty Advisors has the listing to sell Plaza 50 Shopping Center in Carson City, NV. The 120,534 sq.ft. project is anchored by Scolari's Warehouse Market and Coast to Coast Hardware. The asking price is $6.5 million.

For more information, contact Donna McDonald at (561-744-1088), Fax (744-9374).

Boyd, Page & Associates represented the seller in the sale of a 60,000 sq.ft. former Toys 'R Us building in Houston, TX. The buyer was Star Furniture who plans to renovate the property and open a Star Furniture Clearance Outlet store.

For more information, contact Culver Stedman at (713-877-8400).

Mid-America Real Estate Corp. is representing Bradley Real Estate, Inc. in its sale of The Village Shopping Center in Gary, IN. The 360,792 sq.ft. project is anchored by J.C. Penney, Goldblatts and Aldi Foods.

For more information, contact Mid-America Real Estate Corp. at (630-954-7300).

Glimcher Properties LP and Nomura Capital recently formed a joint venture to acquire Dayton Mall in Dayton, OH. The 1.3 million sq.ft. project is anchored by J.C. Penney, Lazarus, McAlpin's and Sears. The site was acquired for $91 million.

For more information, contact Glimcher Properties at (614-621-9000).

Rein & Grossoehme represented the buyer of Times Square, an 18,298 sq.ft. project in Phoenix, AZ. The seller was J&T Northern, Inc. and the sales price was $735,000.

For more information, contact Mark Rein at (602-954-7217).

Charter Realty & Development Corp. recently acquired Freedom Plaza in Rome, NY. The 230,000 sq.ft. project is anchored by J.C. Penney, P&C Supermarket, Eckerd Drugs and Ponderosa Steak House.

For more information, contact Charter Realty & Development Corp. at (203-629-3939).

Spectrum Realty Advisors, Inc. represented MRI Business Properties, LTD. in its sale of Parkway Village Shopping Center in Atlanta, GA to Syms Corp. for $2.4 million. Syms plans to open a 48,000 sq.ft. store at the 116,000 sq.ft. project. A 36,000 sq.ft. big box space and 25,000 sq.ft. of shop space remains available. Syms has also retained Spectrum Realty to lease and manage the property.

For more information, contact Andrea Kenney at (404-252-8666), Fax (252-2288).

Lease Signings

Flocke & Avoyer Commercial Real Estate (619-280-2600) leased 2,800 sq.ft. to Los Panchos Mexican Restaurant in El Cajon, CA; 1,022 sq.ft. to Marketplace Grille at Plaza Sorrento Shopping Center in San Diego, CA; 980 sq.ft. to Mikko Japanese Restaurant at Cardiff Towne Center in Cardiff by the Sea, CA and 24,320 sq.ft. to Heilig-Meyers Furniture in Escondido, CA.

Metro Commercial Real Estate, Inc. (609-866-1900) leased 11,649 sq.ft. to American Classic Cycles at a former Silo location in Cherry Hill, NJ; 11,000 sq.ft. to Sears at Seacourt Pavillion in Toms River, NJ; 25,000 sq.ft. to Barnes & Noble at East Gate Square in Moorestown, NJ; 6,160 sq.ft. to Video Update at Imperial Plaza in Philadelphia, PA; 23,750 sq.ft. to OfficeMax and 11,025 sq.ft. to Party City, The Discount Party Supermarket at Warminster Town Center in Warminster, PA; 18,000 sq.ft. to Lehigh Valley Physical Therapy Associates at Parkway Shopping Center in Allentown, PA; 112,000 sq.ft. to Costco and 57,000 sq.ft. to Levitz Furniture at the Levitz Building in King of Prussia, PA and 69,868 sq.ft. to Super G Supermarket at Deptwood Shopping Center in Deptford, NJ.

Mid-America Asset Management Co. (630-954-7300) leased 8,656 sq.ft. to Hollywood Video at Market Meadows in Naperville, IL; 6,800 sq.ft. to MPI Teacher's Store at Cadwell's Corners Shopping Center in Deerfield, IL and 1,600 sq.ft. to Hair Cuttery at Red Top Plaza in Libertyville, IL.

Equity Investment Group (404-364-2984) leased 1,627 sq.ft. to Book Exchange at Festival Centre in North Charleston, SC; 1,500 sq.ft. to Papa John's at Holyoke Plaza in Holyoke, MA; 2,880 sq.ft. to Dollar World at Conway Towne Center in Conway, AR; 832 sq.ft. to Tropical Smoothie at Sun Plaza in Fort Walton Beach, FL and 2,000 sq.ft. to Pizza Hut at Cypress Point Shopping Center in Meraux, LA.

Western Investment Real Estate Trust (916-791-0600) leased 1,000 sq.ft. to Body Images at Country Gables Shopping Center in Granite Bay, CA; 1,050 sq.ft. to Check 'N Go at Victorian Walk Shopping Center in Fresno, CA and 9,942 sq.ft. to Westates Theaters at Elko Junction Shopping Center in Elko, NV.

Korman Commercial Properties (215-244-5141) leased 70,000 sq.ft. to Acme Supermarkets at TJ Maxx Marketplace in Feasterville, PA.

Divaris Real Estate, Inc. (757-497-2113) leased 37,125 sq.ft. to Linens 'n Things at Hanes Point Shopping Center in Winston-Salem, NC; 1,000 sq.ft. to Blinds Galore at York River Crossing in Hayes, VA; 1,000 sq.ft. to L. Shelton Fashions at York River Crossing in Gloucester, VA; 9,775 sq.ft. to Cort Furniture at a former Eckerd's location at Intracoastal Mall in North Miami Beach, FL and 2,672 sq.ft. to Page Net at Dixie Point Shopping Center in South Miami, FL.

First Union Management, Inc. (216-781-4030) leased 62,000 sq.ft. to Winn-Dixie at Westgate Town Center in Abilene, TX.

First National Development, Ltd. (312-527-9800) leased 30,000 sq.ft. to Toys 'R Us at Yakima Shopping Center in Yakima, WA and 20,657 sq.ft. to Toys 'R Us at Yuma Shopping Center in Yuma, AZ.

Developers Diversified Realty Corp. (216-247-4700) leased 57,825 sq.ft. to Kroger at Liberty Fair Mall in Martinsville, VA.

The Cafaro Company (330-747-2661) leased 3,520 sq.ft. to Stockroom at Ashtabula Mall in Ashtabula, OH and 3,810 sq.ft. to Stockroom at Kennedy Mall in Dubuque, IA.

Central Realty (314-862-5557) leased 19,534 sq.ft. to Office Furniture Outlet at Village Shopping Center in Omaha, NE; 6,000 sq.ft. to Sherwin Williams, 4,800 sq.ft. to Instrumental Influence and 1,350 sq.ft. to Mailboxes, Etc. at Northpark Shopping Center in Warrensburg, MO and 4,000 sq.ft. to Mattress Giant in St. Louis, MO.

CB Commercial Real Estate Group, Inc. (909-788-3727) leased 54,000 sq.ft. to SoCal Cinemas at Cal Oaks Plaza in Murrieta, CA.

AZ's First Nordstrom Coming to Scottsdale Fashion Square

Westcor Partners is currently expanding Scottsdale Fashion Square in Scottsdale, AZ. The 1.3 million sq.ft. project, which is located in downtown Scottsdale, will be expanded to 1.8 million sq.ft. Included in the expansion will be the construction of a 225,000 sq.ft. Norsdstrom department store, the company's first in the state of AZ. Nordstrom is expected to open during Fall 1998. New construction of a 200,000 sq.ft., two-level retail connection between the new Nordstrom and the existing mall will also be built and opened during Fall 1998. Approximately 100,000 sq.ft. remains available for lease in all sizes. Other highlights include the development of a replacement store for Dillard's on the site of the former Camelview Shopping Center and Bullock's Department Store. Dillard's will be moving from a 200,000 sq.ft. store to a 365,000 sq.ft. site during Spring 1998. Once opened, it will become the largest Dillard's store in the nation. The Robinson-May Department Store will also be expanded by 60,000 sq.ft. to 285,000 sq.ft. and store is expected to open during Fall. Four parking structures will be developed to accommodate 9,000 vehicles as well. Once completed, the mall will house more than 220 stores including 37 retailers who's only store will be located at Scottsdale Fashion Square. Future plans for the project include the addition of a fifth department store in the former Dillard's space. In addition to Scottsdale Fashion Square, Westcor is planning to develop a 1.3 million sq.ft. project in Chandler, AZ. The project will be anchored by four department stores and a variety of entertainment-related retailers, including movie theaters and bookstores. A Spring 1999 opening is planned. The company is also planning to develop a 1.3 million sq.ft. project in Broomfield, CO. A Fall 1999 opening is planned. The company is courting Nordstrom and Dillard's for both projects.

For more information, contact Fred Collings, Sr. Vice President-Leasing at (602-953-6285), Fax (953-1964).

Lead Sheet

Goody's Family Clothing, Inc.

dba Goody's

Marc Smith

400 Goody's Lane

Knoxville, TN 37922

423-966-2000, Fax 671-3381

Apparel

The 207-unit chain operates locations in AL, AR, FL, GA, IL, IN, KY, MS, NC, OH, SC, TN, VA and WV. The apparel stores occupy spaces of 25,000 sq.ft. to 30,000 sq.ft. in strip centers. Plans call for 30 openings in the coming 18 months. Expansion will take place in the existing markets as well as MO, eastern TX and northern LA. Preferred demographics include a population of 50,000 within 10 miles earning $35,000 as the average income. Leases running seven to 10 years are typical and the company cites Kohl's and Upton's as competition.

TNT Mens Fashions

dba TNT Fashions

Michael Hahn

502 Euclid Avenue

Cleveland, OH 44114-2217

216-575-0517, Fax 575-0568

Apparel

The 17-unit chain operates locations in OH. The men's and boy's apparel stores occupy spaces of 4,000 sq.ft. in strip centers. Plans call for one opening in the coming 18 months. Expansion will take place in the New York City metropolitan area. Leases running 10 to 20 years are typical and the company prefers a vanilla shell.

CARQUEST Corp.

dba CARQUEST Auto Parts

Peter Kornafel

12596 West Bayaud Avenue #400

Lakewood, CO 80228

303-984-2000, Fax 984-2001

Automotive

The 3,000-unit chain operates locations nationwide. The automotive parts stores occupy spaces of 4,500 sq.ft. in freestanding facilities. Plans call for 100 openings in the coming 18 months. Expansion will take place nationwide. Leases running three to five years are typical and the company prefers a vanilla shell. The company also does not seek high profile retail space.

Mirabito Fuel Group

dba Quick Way

Ray Kelly

44 Grand Street

Sidney, NY 13838

607-561-2700, Fax 563-1460

Convenience Store

The three-unit chain operates locations in NY. The convenience stores occupy spaces of 1,500 sq.ft. in freestanding facilities. Plans call for three openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 20,000 within one and a half miles. Leases running 20 years are typical.

Ralph Watson Oil Company, Inc.

dba Pump 'N Pantry

Mike Wood

3000 West Grand

Marshall, TX 75670

903-938-0317, Fax 938-0881

Convenience Store

The eight-unit chain operates locations in TX. The convenience stores, which also sell gasoline, occupy spaces of 2,000 sq.ft. in freestanding facilities. Growth opportunities are sought in TX and western LA.

Proffitt's, Inc.

dba Proffitt's, McRae's,

Herbergers, Parisian, Younkers

Eric Faires

5810 Shelby Oaks Drive

Memphis, TN 38134

901-937-2113, Fax 386-4594

Department Store

The 175-unit chain operates locations in AL, FL, GA, IL, IA, KY, LA, MI, MN, MS, NE, NC, SD, TN, VA and WI. The department stores occupy spaces of 100,000 sq.ft. in regional malls. Growth opportunities are sought in the existing markets.

May's Drug Stores, Inc.

dba May's Drug Store, Drug Warehouse

Devin Heller

6705 East 81st Street

Tulsa, OK 74133-4110

918-496-9646, Fax 496-8241

Drug Store

The 33-unit chain operates locations in MO and OK. The drug stores occupy spaces of 11,000 sq.ft. to 18,500 sq.ft. in freestanding facilities and strip centers. Plans call for three openings in the coming 18 months. Expansion will take place in northwestern AR, southwestern MO and eastern OK. Leases running 10 years, with three five-year options, are typical and the company cites Walgreens and Wal*Mart as competition.

Conn Appliances

Tom Frank

PO Box 2358

Beaumont, TX 77704

409-832-1696

Electronics

The 24-unit chain operates locations in LA and TX. The stores, selling consumer electronics and home appliances, occupy spaces of 14,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

Eat 'n Park Restaurants

Steven Esposito

410 Vista Park Drive

Pittsburgh, PA 15205-1012

412-494-0250, Fax 788-2855

Food

The 70-unit chain operates locations in OH, PA and WV. The restaurants occupy freestanding facilities on 1.5 acres of land. Plans call for five openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 30,000 within three miles earning $30,000 as the average income. Leases running 30 years are typical.

Villa Enterprises Management Ltd., Inc.

dba Villa Pizza, Philly Steaks & Grinders

John Scotti

17 Elm Street

Morristown, NJ 07960-4109

201-285-4800, Fax 285-5252

Food

The 100-unit chain operates locations in AZ, CA, CO, CT, FL, HI, IL, IN, MD, MS, MI, MN, MS, NJ, NY, NC, OH, OR, PA, RI, SC, TX, VA, WA and WI. The restaurants, serving pizza, steak sandwiches and Italian specialities, occupy spaces of 700 sq.ft. to 2,000 sq.ft. in downtown store fronts and regional malls. Plans call for 20 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical and the company is franchising.

Heilig-Meyers Company

dba Heilig-Meyers, Berrios

Stephen Hull

2235 Staples Mill Road

Richmond, VA 23230-2942

804-359-9171, Fax 254-1493

Furniture

The 950-unit chain operates locations nationwide and in Puerto Rico. The furniture stores occupy spaces of 20,000 sq.ft. in strip centers. Preferred co-tenants include supermarkets and drug stores. Plans call for 150 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 50,000 within 25 miles earning $30,000 as the average income. Leases running 10 years are typical and the company prefers a vanilla shell.

Consolidated Stores, Inc.

dba Odd Lots, Big Lots

James Harris

300 Phillipi Road Box 28512

Columbus, OH 43228

614-278-6773, Fax 278-6546

General Merchandise

The 550-unit chain operates locations in AL, FL, GA, IL, IN, IA, KS, LA, MD, MI, MO, NE, NY, NC, OH, OK, PA, SC, TN, TX, VA and WV. The stores, selling general merchandise at close-out price points, occupy spaces of 25,000 sq.ft. to 30,000 sq.ft. in freestanding facilities and strip centers. Plans call for 80 openings in the coming 18 months. Expansion will take place in the existing markets.

Carpeteria, Inc.

dba Carpeteria

Terry Mansky

25322 Rye Cannon Road

Valencia, CA 91355

805-295-1000, Fax 257-4958

Home Improvement

The 72-unit chain operates locations in AZ, CA, NV, OR, PA and WA. The stores, selling floor coverings, occupy spaces of 3,000 sq.ft. in power centers. Preferred anchors include national category killer chains. Plans call for 12 openings in the coming 18 months. Expansion will take place in the western region. Preferred demographics include a population of 150,000 within three miles earning $50,000 as the average income. Leases running five years are typical and the company prefers a vanilla shell with T.I. allowances. The company also cites Home Depot as competition.

Hirshfield's, Inc.

dba Hirshfield's, Budget Paint & Wallpaper

Frank Hirshfield

725 Second Avenue North

Minneapolis, MN 55405-1601

612-377-3910, Fax 377-2734

Home Improvement

The 17-unit chain operates locations in MN. The stores, selling paints and wallcoverings, occupy spaces of 3,000 sq.ft. to 6,000 sq.ft. in strip centers. Plans call for seven openings in the coming 18 months. Expansion will take place in IA, MN, ND, SD and WI. Preferred demographics include a population of 100,000 within five miles earning $50,000 as the average income. Leases running five to 10 years are typical.

Butterfields Development, Inc.

dba Butterfields Etc.

Jim Lunceford

1040 William Hilton Parkway

Hilton Head, SC 29928

803-842-6000, Fax 842-6999

Housewares

The 24-unit chain operates locations in FL, IN, KS, LA, NC, OH, SC, TX and WA. The stores, selling a variety of housewares, occupy spaces of 1,500 sq.ft. to 2,100 sq.ft. in regional malls. Plans call for two openings in the coming 18 months. Expansion will take place in AZ and PA.

Sterling, Inc.

dba Kay Jewelers, Belden Jewelers, Friedlander's Jewelers,

Goodman Jewelers, J.B. Robinson's, Leroy Jewelers,

Jared-The Galleria of Jewelry, Osterman Jewelers,

Rogers Jewelers, Shaw's Jewelers, Weisfield Jewelers

Susan Shulte

375 Ghent Road

Akron, OH 44333-4601

330-668-5080, Fax 668-5050

Jewelry

The 775-unit chain operates locations nationwide. The jewelry stores occupy spaces of 1,200 sq.ft. in regional malls. Plans call for 35 openings in the coming 18 months. Expansion will take place nationwide.

Foto Hut/Camera Exchange, Inc.

dba Foto Hut/Camera Exchange

Ken Buettner

1505 East Carson Street

Pittsburgh, PA 15203

412-381-7524

Photography

The 11-unit chain operates locations in PA. The stores, selling photographic merchandise as well as offering one-hour photo processing services, occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought within a 13-mile radius of Pittsburgh, PA.

Shoe Show, Inc.

dba Show Shoe, The Shoe Department,

Burlington Shoes, Altier

Kirk Krull

776 Florence Place Northwest

Concord, NC 28025

704-782-4143, Fax 782-3411

Shoes

The 460-unit chain operates locations in AL, DE, GA, IL, IN, KY, MD, MI, MS, NJ, NY, NC, OH, PA, SC, TN, VA and WV. The family shoe stores occupy spaces of 2,800 sq.ft. in power centers and regional malls. Preferred anchors include department stores. Plans call for 45 openings in the coming 18 months. Expansion will take place in the Eastern and Southwestern regions. Leases running seven years are typical.

Mail Boxes Etc. USA, Inc.

dba Mail Boxes Etc.

Monica Strong

6060 Cornerstone Court West

San Diego, CA 92121

619-455-8800, Fax 546-7488

Specialty

The 3,300-unit chain operates locations nationwide. The stores, offering postal and business services, occupy spaces of 900 sq.ft. to 1,500 sq.ft. in downtown store fronts, freestanding facilities and strip centers. Plans call for 400 openings in the coming 18 months. Expansion will take place worldwide. The company is franchising.

Allied Sporting Goods, Inc.

dba Allied Sporting Goods

Bob Rayome

3401 Bashford Avenue

Louisville, KY 40218-3162

502-473-4700, Fax 473-4800

Sporting Goods

The 17-unit chain operates locations in KY and IN. The sporting goods stores, which also sell athletic apparel and footwear, occupy spaces of 10,000 sq.ft. in power and strip centers. Preferred co-tenants include Wal*Mart and movie theaters. Plans call for three openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 40,000 within 10 miles earning $40,000 as the average income. Leases running 10 years are typical.

Ball's Food Stores

dba Price Chopper, Hen House

William White

5300 Speaker Road

Kansas City, MS 66106

913-321-4223, Fax 551-8503

Supermarket

The 21-unit chain operates locations in KS and MO. The supermarkets occupy spaces of 45,000 sq.ft. to 70,000 sq.ft. in power centers. Preferred co-tenants include Wal*Mart. Plans call for two openings in the coming 18 months. Expansion will take place in IA, KS, MO or NE. Leases running 20 years are typical.

Big Bear Supermarkets

dba Big Bear

Jeff Dortmund

770 West Goodale Boulevard

Columbus, OH 43212-3859

614-462-6805, Fax 462-6800

Supermarket

The 80-unit chain operates locations in OH and WV. The supermarkets occupy spaces of 37,000 sq.ft. to 65,000 sq.ft. in strip centers. Preferred co-tenants include department stores and movie theaters. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 20 years are typical and the company cites Kroger as competition.

The Learning Express

Lou Di Minico

76 Farmers Row

Groton, MA 01450

508-448-2333, Fax 448-9995

Toys

The 50-unit chain operates locations in CA, CT, FL, KY, MA, NC, NH, NJ, OH, OR, PA, RI, TX, WA and WI. The toy stores, which arrange toys according to the age and development level of children, occupy spaces of 2,000 sq.ft. to 3,500 sq.ft. in downtown store fronts, specialty and strip centers. Growth opportunities are sought in AZ, FL, IN, ME, NC, NJ, NY, OH, PA, SC, TN and WA. The company is franchising.

New Real Estate Book Offers Tips on How To Make A Good Deal

With tongue firmly planted in cheek, Bendan R. Garrison and Edward G. Rizk have released The Other Side of the Deal What Landlords Don't Want You To Know--A Tenant's Guide to Successful Shopping Center and Retail Leasing. The book offers inside secrets on how to find, negotiate and rent the best retail store locations while revealing the tricks, techniques and strategies needed to negotiate and win. All of this is done in a humorous, yet politically incorrect, way.

Included in the book are answers to questions such as what are the four critical components for selecting a site? Why are oil spots in the parking lot important to your decision? The book also offers insight as to what landlords don't want you to know, including: demystifying industry buzzwords such as base rent, percentage rent, cams, recaptures, triple nets, caps, administrative/operating costs, etc. What's the best way to read a lease so you understand it?

The book also provides worksheets at the end of each chapter to help you apply the information to your individual sites. Also included in the book are 11 appendixes which cover the subjects of demographics, site analysis, retail margins, business plan, insurance, percentage rents, lease evaluation, site plans, the Internet, traffic count sources and a list of other professionals available to help you in your site analysis.

Garrison, who holds a degree in economics and is a licensed real estate broker, is a recognized specialist in shopping center and retail leasing. He has negotiated more than 300 leases involving more than three million sq.ft. of space nationwide. Rizk is a real estate broker and author.

The book retails for $29.95, plus shipping, and can be ordered by contacting G.E. Edgar & Sons Publishing Company, 3506 Highway 6 South, Suite 267, Sugar Land, TX 77478; 800-205-8254.

Who's Opening & Where

London Fog Industries, Inc. (215-922-7184) recently opened a 32,600 sq.ft. London Fog Weather Store at Plaza at Golden Gate Crossing Shopping Center in Mayfield Heights, OH. It is the company's second store, the first of which opened in North Canton, OH during May.

Mr. Goodcents (913-888-9800), which operates 108 Mr. Goodcents Subs & Pastas in 15 states, recently opened its first drive-thru test concept in DeSoto, KS. The drive-thru window will offer a limited menu along with chips and sodas.

Sun Television and Appliances, Inc. (614-492-5608) plans to expand and renovate its Findlay, OH store. The store's size will double to 30,000 sq.ft. and completion is expected during Spring 1998.

CompUSA, Inc. (972-982-4000) recently opened stores at San Mateo Shopping Center in Albuquerque, NM; Tamarack Village Shopping Center in Woodbury, MN; a 20,000 sq.ft. store at River Park Shopping Center in Fresno, CA and a store in Pleasanton, CA. The company plans to open a 25,600 sq.ft. store at The Marketplace at Braintree in Braintree, MA during Fall; a 26,200 sq.ft. store adjacent to the Mall of Louisiana in Baton Rouge, LA during Fall and a 28,000 sq.ft. store in Plantation, FL during early 1998.

Hollywood Video (503-677-1600) recently opened a 7,000 sq.ft. store in St. Petersburg, FL. The company also plans to open six stores in Nashville, TN before the end of the year.

Morton's of Chicago (516-627-1515) plans to open its first international restaurant at Oriental Hotel in Singapore.

Ruth's Chris Steak House (504-454-9042) plans to open a restaurant at the Empire Building in Hong Kong during October.

Hoyts Cinemas (617-267-2700) recently opened an 18-screen movie theater at Crossgates Mall in Albany, NY.

Aldi Supermarket (708-879-8100) recently opened a 16,844 sq.ft. supermarket at Caldor Plaza in Wallingford, CT.

Monro Muffler (609-216-9199) recently opened a service center at Tiffin Plaza in Tiffin, OH.

Dollar Tree (804-857-4600) recently opened a store at Shrewsbury Plaza in Shrewsbury, NJ.

Parts America (816-346-4449) recently opened a store at Plaza 59 in Dunkirk, NY.

Golden Coffee Products, Inc. (818-712-9201) recently opened Le Bon Cafe cart locations at Tanforan Park Mall in San Bruno, CA and at Bally's Fitness Center in Hollywood, CA.

Eckerd Drug Stores (813-399-6355) plans to open an 11,200 sq.ft. unit in Largo, FL during December; an 11,200 sq.ft. unit in Vero Beach, FL next month and an 11,200 sq.ft. store in Tampa, FL during September. The company also recently opened an 11,200 sq.ft. store in Orlando, FL.

Rainforest Cafe (612-945-5400) recently opened its first international location, a 17,000 sq.ft. unit at The Trocadero in London, England.

Beverages, and More! (415-474-6100) recently opened an 18,000 sq.ft. store in Pembroke Pine, FL across from Pembroke Pines Mall. It is the company's first East Coast location. The company plans to open stores in Fort Lauderdale and Aventura during Fall and a store in West Kendall during January 1998. Overall, the company plans to open 100 stores in the coming five years. Currently, the company operates 20 stores, mainly throughout CA.

Taco Bell (714-863-4904) plans to open a 2,121 sq.ft. restaurant at Canfield Plaza in Omaha, NE. The unit is part of the chain's new larger format of restaurants.

Amarillo Mesquite Grill, Inc. (316-685-8261) recently opened a restaurant in Springfield, MO. It is the company's 11th unit.

Art Van Furniture (810-983-0800) recently opened a 76,000 sq.ft. store in Dearborn, MI. The company is also planning to open a store in Howell, MI later this year.

Logan's Roadhouse Restaurants (615-885-9056), through its area franchisee, plans to open restaurants in Oklahoma City, OK during November and in Norman, OK during February 1998.

Financial News

CompUSA, Inc. (972-982-4000) reported that net sales for its fiscal year increased 22% to $4.61 billion with comparable store sales up 5.9% for the year. The company currently operates 129 computer stores nationwide.

The Good Guys! (415-615-5000) reported that its third quarter sales fell one percent to $194.8 million from $196.6 million during the third quarter last year. Comparbale store sales fell three percent for the quarter. The company currently operates 76 consumer electronics stores in CA, NV, OR and WA.

Sun Television and Appliances, Inc. (614-492-5600) reported a first quarter loss of $10.2 million compared to a net loss of $4.6 million during the first quarter last year. Net sales fell to $105 million from $153.7 million last year. Comparable store sales fell 24% during the quarter. The company operates 41 consumer electronics stores in KY, OH, PA and WV.

TOPS Appliance City, Inc. (908-248-2850) reported that its second quarter income from operations was $1.6 million compared to a loss from operations of $2.67 million last year. Net sales for the second quarter decreased 4.2% to $78.5 million from $81.9 million.

Levitz Furniture (407-994-5151), in a report to the Securities and Exchange Commission, recently said that its ability to continue as a going concern for a reasonable period of time is in doubt. The 129-unit chain reported an annual loss of $27.6 million on approximately $1 billion in sales. In the past two years, the company has posted losses of $51.3 million. During June, the company's comparable store sales fell 17.9%.

The Kroger Co. (513-762-4000) reported that total sales during its second quarter increased 6.6% to $6.2 billion with comparabale store sales up 3.2% for the quarter. Earnings increased 38% to $108.1 million from $78.4 million last year. During the quarter, the company opened, acquired and expanded 22 stores.

Bradlees, Inc. (617-380-5863) recently had its request for a six month extension of its exclusive right to file a plan of reorganization approved by the U.S. Bankruptcy Court. The extention through February 1998, which was supported by the company's Official Committee of Unsecured Creditors, will allow it to assess the benefit from modifications to its marketing and merchandising strategies, especially during the Christmas selling season. The company operates 109 stores in seven Northeastern states.

Mergers & Acquisitions

Mirable Investment Corp. (901-324-0450) plans to acquire 21 Hardee's restaurants from Boddie-Noell Enterprises, Inc. in the Memphis, TN area. Mirable, which operates 30 Burger King restaurants, plans to convert 11 of the units to Burger Kings and sell the remaining 10 to other food operators.

United Commercial Realty (214-526-6262) recently merged with The Vanguard Company of Austin, TX with the Austin office being known as United Commercial Realty/Austin. UCR/Austin will handle only retail business transactions. UCR also has offices in Dallas and San Antonio.

DavCo Restaurants, Inc.'s (410-721-3770) subsidiary FriendCo Restaurants, Inc. recently signed agreements with Friendly's Restaurants Franchise, Inc. and Friendly Ice Cream Corporation to purchase certain assets and rights to 34 existing Friendly's Restaurants and will manage under contract with an option to purchase 14 other Friendly's locations in the area. FriendCo will have exclusive rights to develop and operate Friendly's Restaurants in MD, northern VA, DE and District of Columbia. FriendCo also has the rights to open up to an additional 100 Friendly's Restaurants during a 10 year period with a commitment to construct 74 new restaurants in the first six years. Financial terms of the agreement were not disclosed. The deal is Friendly's first franchise agreement for the 705 unit chain.

Robin Realty Company (615- 254-1897) announces that it has acquired Blu-Reich Co., Inc., a Nashville, TN real estate firm specializing in tenant representation.

Closings

Uni-Marts, Inc. (814-234-6000) may close 100 convenience stores in PA and VA if a new gasoline contract with Getty Petroleum Corp. cannot be reached. Uni-Marts has been leasing the sites from Getty after the company took over PennSupreme convenience stores in 1991.

J.C. Penney (214-431-1000) plans to close its 135,000 sq.ft. department store at Shepherd Mall in Oklahoma City, OK next month. The company has operated the store since 1964 and it is being closed because the store was failing to meet company expectations.

Silas Creek Retail LP (910-768-3930) plans to close 69 of its 192 Piece Goods Shops in 20 states.

L. Luria & Son (305-557-9000) plans to close nine stores in FL, shrinking the chain to 18 stores.

Woolworth Corporation (212-553-2153) plans to close all 400 of its Woolworth general merchandise stores nationwide over the next several months. The company plans to convert 100 of its prime Woolworth sites into its Foot Locker concept or a larger Champs Sports prototype. The remaining stores will be closed and sold. The division, which traces its roots back to 1879, incurred operating losses of $24 million on $224 million of sales during its most recent quarter. During 1996, the division incurred an operating loss of $37 million.

Space Place

Florida

Miami- A 3,900 sq.ft. space is available for lease. The site is located just south of The Falls which is anchored by Bloomingdale's and Macy's.

For details, contact Bill Lebo of Lebo & Company at (954-476-2600).

Georgia

Atlanta- Concord Village is anchored by Kmart, A&P, Radio Shack and CiCi's Pizza. The 185,628 sq.ft. project has spaces of 900 sq.ft., 980 sq.ft., 1,600 sq.ft., 1,840 sq.ft. and 10,800 sq.ft. available for lease. Demographics include a five-mile population of 176,642 earning $49,946 as the average income.

For details, contact Jim Cheney of Equity Investment Group at (404-364-2984), Fax (364-2985).

Michigan

Ann Arbor- Up to 60,000 sq.ft. is available for lease near Barnes & Noble. In Shelby Township- Lakeside Commons is anchored by Barnes & Noble, Circuit City, HomePlace and Don Pablo's. Space is available for lease in a 150,000 sq.ft. phase II expansion. The center is located across from the 1.1 million sq.ft. Lakeside Mall. Also in Shelby Township- Pad sites are available for lease at the 180,000 sq.ft. The Shops at Cherry Creek. In Taylor- Up to 36,000 sq.ft. space is available for lease at Southland Plaza, which is being redeveloped. The site is located across from Southland Mall.

For details, contact Jeffrey Higgins or Dan Jacob of Signature Associates at (248-948-9000).

North Carolina

Charlotte- Eastway Crossing is anchored by Wal*Mart, Winn-Dixie, Blockbuster Video, Esquire Big & Tall and McDonald's. The 254,803 sq.ft. project has spaces of 1,200 sq.ft., 2,000 sq.ft., 3,600 sq.ft. and 4,260 sq.ft. available for lease. Demographics include a five-mile population of 230,000 earning $44,000 as the average income. The site is located near Eastland Mall and Eastway Plaza.

For details, contact William Hyder of Aston Properties at (704-366-7337), Fax (365-3215).

Ohio

Mansfield- Appleseed Center is anchored by Kroger and Stein Mart. The 260,000 sq.ft. project has spaces of 2,100 sq.ft., 3,600 sq.ft., 4,400 sq.ft. and 10,500 sq.ft. available for lease.

For details, contact Jodi Kihler of Skilken Properties at (614-253-8654), Fax (253-2991).

Pennsylvania

Belle Vernon- Gabriel Brother's Plaza is anchored by Gabriel Brothers. The 79,682 sq.ft. project has spaces of 1,350 sq.ft. and three spaces running 1,875 sq.ft. each available for lease. Demographics include a five-mile population of 53,325 earning $30,626 as the average income.

For details, contact Parry Petroplus of Petroplus & Associates, Inc. at (800-599-3001), Fax (304-598-3305).

South Carolina

Lexington- Spaces from 1,600 sq.ft. to 6,400 sq.ft. are available for lease at a shopping center anchored by Kmart and Pizza Hut. The 1,600 sq.ft. space is an end-cap with drive-thru capability.

For details, contact John Baker of Baker & Baker at (803-254-8987), Fax (254-0508).

Virginia

Richmond- Atlee Square Shopping Center will be anchored by Hanover County Library, which is expected to open during September. The 43,000 sq.ft. project has 15,000 sq.ft. available for lease.

For details, contact Joe Harding of Harding & Associates at (804-282-1590).