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Issue Number 31
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The Dealmakers Issue Number 31 for the week of August 28, 1998. Temporary Tenants Looking for Homes The Honey Baked Ham Company of GA trades as Honey Baked Ham
Holiday Express at 25 locations in AL, GA, NC, SC and TN. The stores, selling spiral
glazed hams and turkeys, occupy spaces of 500 sq.ft. in regional malls and strip centers.
Growth opportunities are sought in the Southern region. Leases running three months,
usually around the holidays, are typical. Elope, Inc. trades as Elope at 18 locations in CA, CO, FL,
ID, LA, MA, NY, UT and WA. The stores, selling hats, occupy spaces running 32 sq.ft. and
cart locations in downtown areas. Plans call for six openings in the coming 18 months.
Expansion will take place nationwide. Leases running six months are typical. Snow Stuff USA, Inc. trades as Snow Stuff at 114 locations
in CO, IL, IN, IA, KS, MA, MI, MN, MO, NE, OH, PA, SD and WI. The stores, selling cold
weather accessories, occupy spaces of 160 sq.ft. in regional malls. Plans call for 70
openings in the coming 18 months. Expansion will take place in the Midwestern region.
Preferred demographics include a population of 100,000 within 20 miles earning $40,000 as
the average income. Leases running from October through January are typical. Nutty Bavarian trades as The Nutty Bavarian at 165 locations
nationwide. The stores, selling cinnamon glazed nuts, occupy spaces of 60 sq.ft. in kiosk
spaces in regional malls, entertainment, outlet and specialty centers. Plans call for as
many as 75 openings in the coming 18 months. Expansion will take place nationwide,
exclusive of New England and the West Coast. Leases running three to six months are
typical. Hickory Farms, Inc. trades as Hickory Farms at locations
nationwide. The stores, selling food gift packages, cheeses, meats and candies, occupy
spaces of 200 sq.ft. in kiosks and unleased store fronts in regional malls. Plans call for
700 seasonal openings. Expansion will take place nationwide. Leases running six to eight
weeks are typical. Buyers & Sellers Prime Sites LLC is selling a 14 acre parcel of land in Davenport,
IA. The site is located at the southeast quadrant of US 80 and I-61 and has all utilities.
The asking price is $2.50 psf and the site is divisible. The Keyes Company has the listing to sell a child care center in
IL. The site is owned by a public company and has a long term net lease with CPI
increases. Annual rental is $118,655. The asking price is $1.1 million. The company has
the listing to sell a shopping center in Miami, FL. The 98,000 sq.ft. project is 100%
leased and has credit tenants. The asking price is $12.46 million. The company has the
listing to sell two new Walgreens drug stores in FL. Both sites have 20-year leases. The
company also has the listing to sell a Hollywood Video store in Cleveland, OH. The site
has a 15-year NNN lease with increases every five years. The asking price is $1.35
million. Syndicated Equities brokered the sale of a Wal*Mart in GA. A
Detroit, MI investor purchased the site for $15.1 million to complete a 1031 Exchange
arising from the sale of an office building. The company brokered the sale of a Walgreens
Drug Store in Gilbert, AZ. The site was purchased for $3.125 million by investors seeking
to complete a 1031 Exchange. 25 Washington Associates LLC, an entity organized by James Ross of
InterCapital Realty Corp. And John Phufas, recently acquired 25 Washington Street in
Tenafly, NJ. The building formerly was occupied by Revco and is currently vacant. The new
owners plan to completely renovate the building and re-lease the space. ARC Properties, Inc. recently acquired a 39,000 sq.ft. facility
leased to Circuit City in Harrisburg, PA. The company is in the market to acquire single
tenant and build-to-suit sites having NNN leases with 15 year terms and increases.
Preferred sites are located in major markets nationwide. The company is also in the market
to acquire land for development and commercial properties for expansion. Properties priced
from $1.5 million to $50 million will be considered. G&L Real Estate LLC has the listing to sell 115+ acres in
Houston, TX. The site is located at the entrance to Katy Mills Mall, a 1.6 million sq.ft.
shopping and entertainment center scheduled to open during Fall 1999. All utilities are
available and zoning is unrestricted. The Dartmouth Company has the listing to sell Colony Mill
Marketplace in Keene, NH. The site contains 74,000 sq.ft. of retail space and 16,300
sq.ft. of office space. The retail space can be expanded by 30,000 sq.ft. The asking price
is $7.5 million. Pomerleau Real Estate has the listing to sell 3.8 acres of land in
Middlebury, VT. The site fronts Route 7 and has shared traffic light access with the
largest shopping center in the county. The property is located across from
McDonald’s, Ames and a supermarket. The asking price is $235,000 per acre. Levey Miller Maretz has the listing to sell a 13.52 acre parcel of
land in Newington, CT. The site, which is formerly a drive-in movie theater, fronts Berlin
Turnpike and is zoned commercial. The asking price is $230,000 per acre. Faris Lee Investments represented DCG Investment Corp. in its
acquisition of Triangle Square Shopping Center in Costa Mesa, CA. The 195,000 sq.ft.
project is anchored by Nike Town, Virgin Megastore and Edwards Cinema. The seller was
Capital & Counties USA and the purchase price was in excess of $60 million. Towle Real Estate has the listing to sell Second Street Quad Retail
Center in St. Cloud, MN. The 111,811 sq.ft. project is anchored by PetsMart, Petters
Warehouse, Dunham’s Sporting Goods and McDonald’s. An additional 30,000 sq.ft.
is proposed. Nearby retailers include Wal*Mart, Sam’s Club, Menard’s Home Store,
Kmart, Cub Foods, Gander Mountain and Best Buy. Waimea Group, Inc. has the listing to sell Custer Creek Shopping
Center in Plano, TX. The 78,850 sq.ft. project, which is 90% occupied, is anchored by
Brookshires Grocery (which has six years remaining on its lease), Little Caesar’s
Pizza, Joan’s Hallmark and Beijing Chinese Restaurant. The annual NOI is $614,231.
The asking price is $6 million. Cohen and Company, Inc. Real Estate has the listing to sell the
leasehold interest in six strip shopping centers in UT and WA. The locations are excellent
with some of the centers being mall periphery. The Macerich Company recently acquired The Village at Corte
Madera in Corte Madera, CA. The 428,000 sq.ft. project is anchored by Nordstrom and
Macy’s. The company also acquired Carmel Plaza in Carmel, CA. The 115,000 sq.ft.
project is anchored by Saks Fifth Avenue. The two centers were acquired for a combined
purchase price of $165.5 million. Marcus & Millichap has the listing to sell Lake City Shopping
Center in Atlanta, GA. The 52,957 sq.ft. project is anchored by a dark 43,757 sq.ft.
Kroger which is paying $3.11 psf in rent until September 1999 with three five-year
options. The asking price is $1.28 million. Financial News Boston Chicken, Inc. (303-384-5172) reported that its second quarter systemwide store revenue fell to $219.4 million from $286 million during the second quarter last year. Company revenue for the quarter increased to $170.7 million from $116.5 million. Company revenue for the 1998 periods is not readily comparable to 1997 results primarily due to an increase in the number of Boston Market company restaurants resulting from the acquisition of several area developers and the inclusion of company store results for Einstein/Noah Bagel Corp. As a result of special charges and additional provisions for potential loan losses totaling approximately $40 million and area developer losses of approximately $35 million, the company reported a second quarter net loss of $124.5 million compared to net income of $17.2 million last year. At the end of the second quarter, the company operated and franchised 1,149 Boston Market units in 38 states. Buffets, Inc. (612-942-9760) reported that its second quarter net earnings increased 37% to $11.6 million from $8.5 million during the second quarter last year. Restaurant sales for the quarter increased seven percent to $204.6 million from $190.5 million last year and comparable store sales increased 2.5% for the quarter. During the quarter, the company opened one unit and acquired the 11-unit Country Harvest chain which will be converted to the Buffets format. During the third quarter, the company plans to open four units and as many as 10 units during the fourth quarter. Currently, the company operates 378 restaurants trading as Old Country Buffet, HomeTown Buffet, Country Harvest, Original Roadhouse Grill, PizzaPlay and Country Roadhouse Buffet & Grill in 35 states. The company also franchises 24 restaurants trading as Old Country Buffet and HomeTown Buffet in 10 states. Sport Chalet, Inc. (818-790-2717) reported that its first quarter sales increased 9.9% to $32.1 million from $29.2 million during the first quarter last year. Net income for the quarter increased from $246,000 to $571,000 and comparable store sales increased 6.8% for the quarter. The company currently operates 19 sporting goods stores throughout Southern CA. Planet Hollywood International, Inc. (407-363-7827) reported that its second quarter revenues fell to $105.1 million from $121.9 million during the second quarter last year. Income from operations declined to $3.4 million from $23.2 million during the quarter and a net loss of $1.4 million was reported, as compared to net income of $16.3 million during the second quarter last year. Comparable restaurant sales at units open more than 18 months fell 17% for the quarter. During the quarter, the company opened one Official All Star Cafe in HI and two Planet Hollywood units in Baltimore, MD and Montreal, Canada. At the end of the quarter, the company operated and franchised 87 Planet Hollywood units in 36 countries and 10 Official All Star Cafe units in three countries. The May Department Stores Company (314-342-6300) reported that its second quarter net earnings increased to $131 million from $116 million during the second quarter last year. Sales increased 5.8% to $2.82 billion from $2.66 billion last year with comparable store sales up 4.3% for the quarter. The company currently operates 370 department stores in 30 states and by December is planning to operate nearly 400 units in 32 states. Dollar General Corporation (615-783-2014) reported that its second quarter net income increased 24.6% to $33.3 million from $26.7 million during the second quarter last year. Total sales for the quarter increased 24.2% to $741.4 million from $596.8 million last year with comparable store sales up 9.2%. During the quarter, the company opened 144 stores and closed three. Currently, the company operates 3,461 stores in 24 states. Phar-Mor, Inc. (330-746-6641) reported that its fiscal 1998 sales increased 2.4% to $1.1 billion from $1.07 billion during FY97. Comparable store sales increased 0.5% for the year. A net loss of $8.8 million reported as compared to a net loss of $2.3 million last year. The company currently operates 106 drug stores in 19 states. OfficeMax, Inc. (216-921-6900) reported that its net income for the second quarter increased seven percent to $2.6 million from $2.5 million during the second quarter last year. Operating income increased 51% to $6.4 million from $4.23 million last year. Sales increased 13% to $874.5 million from $776.1 million last year with comparable store sales down one percent. The company currently operates 754 office supply stores in 48 states and Puerto Rico. CD Warehouse, Inc. (405-949-2422) reported that its second quarter net income increased 12% to $75,000 from $67,000 during the second quarter last year. System-wide sales increased 49% to $12.3 million from $8.2 million last year. Total revenues increased 19% to $2.8 million from $2.3 million last year. During the quarter, the company opened eight stores and ended the quarter operating and franchising 163 stores. Also during the quarter, the company acquired the franchise rights to 134 Disc Go Round stores and acquired three company-owned Disc Go Round stores to bring its total store count to 300 units. Food Tenants Hungry for Sites Nationwide B&G Food Enterprises, Inc. does business as Taco Bell
and Kentucky Fried Chicken at 38 locations in LA, MS and TX. The fast food
restaurants occupy spaces of 2,500 sq.ft. in freestanding facilities and strip centers.
Preferred anchors include Kmart and Wal*Mart. Plans call for three openings
in the coming 18 months. Expansion will take place in the existing markets. Leases running
10 years are typical. Auntie Anne’s, Inc. trades as Auntie Anne’s at 476
locations nationwide. The stores, selling hand-rolled soft pretzels, occupy spaces of 450
sq.ft. to 1,000 sq.ft. in downtown store fronts, regional malls, outlet and specialty
centers. Plans call for 90 openings in the coming 18 months. Expansion will take place
nationwide. The company is franchising. Waugh Co. trades as Burger Street at 21 locations in OK and
TX. The fast food restaurants occupy spaces of 1,800 sq.ft. in freestanding facilities.
Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for three
openings in the coming 18 months. Expansion will take place in the existing markets.
Preferred demographics include a population of 50,000 within three miles earning $30,000
as the average income. Leases running 10 years are typical. The Winning Team, Inc. trades as Arby’s at 21 locations
in NC. The fast food restaurants occupy spaces of 3,200 sq.ft. in freestanding facilities.
Preferred anchors include Wal*Mart and supermarkets. Plans call for six openings in
the coming 18 months. Expansion will take place in the existing market. Leases running 40
years are typical. Omni Management, Inc. does business as Taco Time at 10
locations in ID and WA. The restaurants occupy spaces of 2,200 sq.ft. in freestanding
facilities and regional malls. Growth opportunities are sought in the existing markets. Diamond Dave’s Taco Co., Inc. trades as Diamond Dave’s
Mexican Restaurants at 36 locations in IL, IA, MN, MO, SD and WI. The restaurants
occupy spaces of 2,500 sq.ft. in freestanding facilities, regional malls and strip
centers. Plans call for five openings in the coming 18 months. Expansion will take place
in IL, IA, MN, MO and WI. Leases running 10 years, with a five-year option, are typical
and the company is franchising. La Senorita Restaurants operates nine locations in MI. The Mexican
restaurants occupy spaces of 7,500 sq.ft. in freestanding facilities. Growth opportunities
are sought in the existing market. The company prefers to purchase its locations. Kyoto Bowl Corp. trades as Kyoto Bowl at 17 locations in AZ
and NV. The Japanese fast food restaurants occupy spaces of 2,500 sq.ft. in freestanding
facilities and strip centers. Plans call for 12 openings in the coming 18 months.
Expansion will take place nationwide. The company is franchising. Pacific Coast Restaurants, Inc. trades as Newport Bay Restaurant
at nine locations in OR and WA. The restaurants occupy spaces of 8,000 sq.ft. in
freestanding facilities. Plans call for three openings in the coming 18 months. Expansion
will take place in the existing markets. Yokohama Rice Bowl operates nine locations in AZ. The Japanese fast
food restaurants occupy spaces of 1,600 sq.ft. to 2,000 sq.ft. in freestanding facilities
and strip centers. Plans call for as many as 19 openings in the coming 18 months.
Expansion will take place in the Western region. Preferred demographics include a
population of 25,000 within 10 miles earning $35,000 as the average income. Leases running
five to ten years are typical and the company is franchising. Jack In The Box operates more than 1,300 locations in the
Southwestern and Western regions. The fast food restaurants occupy spaces of 2,700 sq.ft.
in freestanding facilities. Growth opportunities are sought in the existing markets. The
company will also consider in-line spaces having high-density populations and is looking
to co-brand with major oil companies and major convenience store chains. Max & Erma’s Restaurants, Inc. trades as Ironwood Cafe
at one location in OH. The casual restaurant, which opens at 5 p.m., offers pasta and
gourmet pizza cooked in a wood burning oven while using a 3,500 sq.ft. freestanding
facility. Spaces in strip centers, downtowns and specialty centers will also be
considered. Preferred co-tenants include upscale retailers. Plans call for the opening of
four units during 1998 and seven units during 1999. Expansion will take place in MI, IN,
OH and PA. Preferred demographics include a population of 5,000 within one mile earning
$60,000 as the average income. Leases running five years, with three five-year options,
are typical. Jersey Mike’s Franchise System trades as Jersey Mike’s
Subs at 115 locations in AZ, FL, GA, KY, NJ, NC, OH, PA, SC and TN. The sandwich
restaurants occupy spaces of 1,200 sq.ft. to 1,400 sq.ft. in strip centers. Preferred
anchors include supermarkets and video stores. Plans call for 50 openings in the coming 18
months. Expansion will take place East of the Mississippi River. Preferred demographics
include a population of 25,000 within three miles earning at least $45,000 as the average
income. Leases running five years are typical and the company is franchising. Marie Callender Pie Shops, Inc. trades as Marie Callender
Restaurants at 159 locations in 13 states. The restaurants occupy spaces of 6,500
sq.ft. in freestanding facilities, power centers and regional malls. Plans call for 12
openings in the coming 18 months. Expansion will take place in the Midwestern region.
Preferred demographics include a population of 125,000 within five miles earning at least
$30,000 as the average income. Leases running 20 years are typical and the company is
franchising. Oren’s Daily Roast, Inc. trades as Oren’s Daily Roast
at six locations in NY. The stores, selling coffee, occupy spaces of 700 sq.ft. in
downtown store fronts. Plans call for one opening in the coming 18 months. Expansion will
take place in the existing market. Galardi Group, Inc. does business as Weinerschnitzel at 350
locations in AZ, CA, LA, NM and TX. The hot dog restaurants occupy spaces of 675 sq.ft. in
freestanding facilities. Growth opportunities are sought in the existing markets with an
emphasis on TX. Leases running 15 years, with options, are typical. Grill Concepts trades as Daily Grill at 11 locations in CA
and Washington, D.C. The restaurants occupy spaces of 5,000 sq.ft. to 7,000 sq.ft. in
downtown store fronts, freestanding facilities, regional malls and specialty centers.
Plans call for as many as five openings in the coming 18 months. Expansion will take place
in CA, IL, MD and VA. Bill’s Barbecue, Inc. trades as Bill’s Barbecue at
10 locations in VA. The fast food restaurants occupy spaces of 750 sq.ft. to 4,500 sq.ft.
in outlet, specialty and strip centers. Growth opportunities are sought in the existing
market. Leases running three to five years are typical. Specialty Restaurants Corp. does business as Castaway,
Crawdaddy, 94th Aero Squadron, Shanghai Reds and Baby Doe at 43 locations in
CA, CO, DE, FL, GA, IL, MD, MO, NJ, NY, OH, OR, PA, TN and TX. The restaurants occupy
spaces of 10,000 sq.ft. in freestanding facilities. Plans call for two openings in the
coming 18 months. Expansion will take place within the existing markets. Comida Corporation trades as Mi Amigos Mexican Grill at five
locations in AZ. The Mexican restaurants occupy spaces of 7,000 sq.ft. in freestanding
facilities and strip centers. Plans call for one openings in the coming 18 months.
Expansion will take place in Southeastern region. Preferred demographics include a
population of 300,000 within four miles earning $50,000 as the average income. Chick-Fil-A, Inc. trades as Chick-Fil-A at 770 locations
nationwide. The fast food restaurants, specializing in chicken sandwiches, occupy spaces
of 800 sq.ft. to 900 sq.ft. in food courts of regional malls; 2,000 sq.ft. to 2,500 sq.ft.
in strip centers and 3,200 sq.ft. in freestanding facilities. Plans call for 10 openings
in the coming 18 months. Expansion will take place in CO, TX and along the East Coast.
Preferred demographics include a population of 35,000 within three miles earning $40,000
as the average income. Leases running 10 years, with options, are typical. NYB Foods, Inc. does business as New York Burrito Gourmet Wraps
at 40 locations in AR, AZ, CA, CO, ID, KS, MS, MO, NE, NV, TX and UT. The fast food
restaurants, serving healthy gourmet wraps, occupy spaces of 1,200 sq.ft. to 1,800 sq.ft.
in freestanding facilities, regional malls and end caps of strip centers. Preferred
co-tenants include coffeehouses and upscale retailers. Plans call for at least 30 openings
in the coming 18 months. Expansion will take place in the Midwestern, Southwestern and
Western regions. Leases running three to five years, with options, are typical and the
company is franchising. Snapps Restaurants Drive Thru, Inc. trades as Rally’s
at 81 locations in OH and PA. The fast food restaurants occupy spaces of 1,000 sq.ft. in
specialty centers. Plans call for 10 openings in the coming 18 months. Expansion will take
place in OH. Preferred demographics include a population of 15,000 within one mile earning
$30,000 as the average income. Leases running 25 years are typical. Fairview Dairy, Inc. trades as Valley Dairy at 13 locations
in PA. The restaurants, which also serve ice cream, occupy spaces of 3,000 sq.ft. to 3,600
sq.ft. in freestanding facilities. Plans call for one opening in the coming 18 months.
Expansion will take place in western PA. Leases running 10 years are typical. Who’s Opening & Where The May Department Stores Co. (314-342-6300) plans to open a 120,000 sq.ft. Lord & Taylor department store at an expanded former Lechmere space at Emerald Square Mall in North Attleboro, MA during Fall 1999. The company also plans to expand its Filene’s store at Emerald Square to 185,000 sq.ft. The company also announced that it will open a 120,000 sq.ft. Lord & Taylor store at The Mall at Wellington Green in Palm Beach County, FL during Fall 2001. Gateway Country (605-232-2000) recently opened Gateway Country Stores in Corona and Montclair, CA. The company currently operates 59 computer stores nationwide and expects to be operating 74 stores by the end of the year. The Elder-Beerman Stores Corp. (937-296-2805) plans to open an 82,000 sq.ft. department store at a former Lazarus space at The Kettering Center in Kettering, OH next month. Wal*Mart (501-273-4000) plans to develop a 149,000 sq.ft. Supercenter adjacent to South Crater Square Shopping Center in Petersburg, VA. The store, which has been in the planning stages since 1993, is expected to open during late summer or early fall 1999. Cartier (212-446-3526) plans to open a 1,200 sq.ft. jewelry store at The Somerset Collection in Troy, MI during November. The company currently operates 185 stores worldwide, including 21 stores in the United States. Rooms To Go (813-623-5400) plans to open four stores in the Austin and Dallas, TX markets by the end of 1999. Overall, the company is planning 10 stores for the two markets by 2001. Nordstrom (206-628-2111) plans to open a 144,000 sq.ft. department store at Hulen Mall in Fort Worth, TX. PawnMart, Inc. (817-335-7296) plans to open 10 stores in the Atlanta and northern GA; Charlotte, NC; Greenville, SC and north central TX markets before the end of the year. The company currently operates 21 stores that buy and sell pre-owned merchandise and provide secured short-term loans in AL, GA, NC and TX. Wendy’s Old Fashioned Hamburgers Restaurants (614-764-3100) plans to open 20 restaurants annually for the next five years in the New York City metropolitan area. If the company meets its goal, it will be operating 300 units in the NYC market. Dave & Buster’s (214-357-9588) recently opened its second international location in Bristol, England. The company plans to be operating seven units in the United Kingdom by 2004. Hastings Entertainment, Inc. (806-351-2300) recently opened a 25,000 sq.ft. store in Fort Smith, AR; a 29,330 sq.ft. store in Olathe, KS and an 18,000 sq.ft. store in Waxahachie, TX. The company currently operates 123 stores in 16 states and plans to open 60 additional stores by the end of 2000. Quizno’s Corp. (303-291-0999) plans to open 27 franchised restaurants in Sacramento and Placer counties in CA in the coming five years. The first Sacramento unit is expected to open next month at Natomas Marketplace. 24 Hour Fitness (510-416-7370) plans to open a 32,000 sq.ft. health club at Gateway Mall in Eugene, OR during Fall 1999. The J.M. Smucker Company (330-682-3000) plans to open a 5,000 sq.ft. store, named Simply Smucker’s, in Orrville, OH during Spring 1999. The store will carry more than 350 products from the Smucker’s family of brands, offer gift items and related merchandise and feature a display depicting the company’s more than 100-year history. Goodyear Tire Center (330-796-1313) plans to open a 6,000 sq.ft. service center in Columbia County, GA during November. The Sports Club Company Inc. (310-479-5200) plans to develop a two-story, 50,000 sq.ft. Spectrum Club sports and fitness complex near Northridge Fashion Center in Northridge, CA. The unit is expected to open during 1999. Home Depot (770-433-8211) is planning to develop a 130,000 sq.ft. store in Roanoke, VA and a 112,000 sq.ft. store in Madison, WI. J.C. Penney (972-431-1000) plans to convert its 130,000 sq.ft. department store at Florin Mall in Sacramento, CA into a catalog clearance center during November. Mergers & Acquisitions Renters Choice, Inc. (972-701-0489) recently closed on its acquisition of Thorn Americas, Inc. for an aggregate purchase price of $900 million in cash. Financing for the acquisition consisted of a combination of debt financing arranged by Chase Securities and the issuance of $250 million of Renters Choice convertible preferred stock to certain affiliates of Apollo Management, L.P. As a result of the acquisition, the company becomes the nation’s largest rent-to-own chain, operating 2,084 company-owned stores and franchising 343 stores in all 50 states, the District of Columbia and Puerto Rico. The stores trade as Renters Choice, Rent-A-Center, Remco and U-Can-Rent. Track ‘n Trail (916-933-4525) recently signed a tentative agreement to acquire Nevin’s Eagles Nest, Inc., a five-store chain that sells sports and outdoor clothing as well as athletic shoes and boots. Track ‘n Trail plans to operate Eagles Nest as a separate division and expansion of the chain is planned. Track ‘N Trail currently operates 126 Track ‘n Trail stores and 40 Overland Trading stores in 30 states. Safeway, Inc. (510-467-3000) recently announced that it plans to acquire Carr Gottstein Foods Co., AK’s largest retailer and private employer, in a $330 million deal which includes Safeway’s assumption of $220 million in Carr’s debt. Carr currently operates 49 supermarkets and Safeway operates 12 units in AK. Safeway plans to retain the Carr name. The transaction is not expected to close until early 1999. Viacom, Inc. (212-258-6352) recently signed a definitive agreement to sell Blockbuster Music to Wherehouse Entertainment, Inc. for $115 million in cash. Blockbuster Music currently operates 378 stores nationwide and Wherehouse Entertainment operates 220 stores in seven states. The deal is expected to close during the fourth quarter. Aaron Rents, Inc. (404-231-0011) recently acquired five franchised Aaron Rental Purchase stores from Affordable Rents, L.L.C. The stores are located in Winston-Salem, Wilmington and Rocky Mount, NC and Florence, SC. The NC stores will become the first company-owned units in the state. Overall, the company operates and franchises 421 stores in 32 states. Lease Signings Newcastle Properties, LLC (847-480-9700) leased 16,960 sq.ft. to General Services Administration at Greenwood Plaza in Chicago, IL; 8,936 sq.ft. to MarCole Music at Bloomingdale Square in Bloomingdale, IL; 3,520 sq.ft. to Citibank, F.S.B. at Ogden Mall in Naperville, IL and 2,700 sq.ft. to Music Go Round at Cicero Annex in Chicago, IL. The Skinner & Broadbent Company (317-237-2900) leased 19,413 sq.ft. to PetsMart, 23,540 sq.ft. to OfficeMax and 26,120 sq.ft. to Barnes & Noble at Greyhound Plaza at Greyhound Pass Shopping Center in Westfield, IN; 1,400 sq.ft. to Blimpie’s at Washington Place Retail Center in Indianapolis, IN; 7,500 sq.ft. to Family Dollar Store at 5227 Development in Indianapolis, IN and 2,100 sq.ft. to Children’s Orchard and 28,000 sq.ft. to Hastings Entertainment at Village at Time Corners Retail Center in Fort Wayne, IN. Metro Commercial Real Estate, Inc. (609-866-1900) leased 15,000 sq.ft. to Party City at Whiteland Town Center in Exton, PA; 10,000 sq.ft. to Party City at York Mall in Rockaway, NJ and 62,574 sq.ft. to Super G Supermarket in Burlington Township, NJ. MTH Management Corporation (540-253-5555) leased 38,000 sq.ft. to Food Lion at Woodlawn Shopping Center in Fairfax County, VA. CB Richard Ellis (847-706-4925) leased 55,104 sq.ft. to Hobby Lobby in a portion of a former Builders Square store at Scharrinton Square Shopping Center in Schaumburg, IL. Excess Space Disposition, Inc. (212-338-0575) subleased a 3,193 sq.ft. former Payless ShoeSource, Inc. space to Ace TV Rental in Washington, D.C.; subleased a 3,375 sq.ft. former Pollo Tropical space to Applebee’s in Tampa, FL; subleased an 11,200 sq.ft. former Walgreens space to 99 Cent Discount Store in Tucson, AZ; subleased a 9,761 sq.ft. former CVS space to K&P Sportswear in Cleveland, OH; subleased a 9,520 sq.ft. former Eckerd Drug space to 10,000 Movies in Hialeah, FL; subleased a 6,400 sq.ft. former Eckerd Drug space to Discount Auto Parts in Bonifay, FL and subleased a 14,504 sq.ft. former Eckerd Drug space to Bealls Outlet Stores in Pensacola, FL. The Schultz Organization (732-855-0001) leased 7,400 sq.ft. to Tuesday Morning at The Marketplace in Matawan, NJ; 5,000 sq.ft. to Tuesday Morning at Orchard Plaza in Oakhurst, NJ and 5,000 sq.ft. to Tuesday Morning at Union Square Shopping Center in Middletown, NJ. Capital Realty Advisors, Inc. (561-624-5888) leased 3,180 sq.ft. to Round Table Pizza at Plaza 50 in Carson City, NV. Sources Of Financing Heitman Finance Group (312-855-0460) recently arranged $15 million in construction financing for Baker Hill Shopping Center in Glen Ellyn, IL. The 135,000 sq.ft. project is anchored by Dominick’s grocery store. Guaranty Federal Bank F.S.B. provided the two-year loan. The financing was arranged on behalf of an IL limited liability company. The company arranged a $14.5 million first mortgage loan for Geneva Crossing Shopping Center in Carol Stream, IL. The 121,000 sq.ft. project is anchored by Dominick’s grocery store. Nomura Asset Capital Corporation provided the financing for the transaction. The loan was arranged on behalf of an IL limited liability company. The company also arranged a $1.7 million first mortgage for a freestanding, 13,500 sq.ft. Walgreens Drug Store in Blue Island, IL. The 17-year, fully amortizing loan was structured with an initial floor amount and a commitment to a second funding in the future. The second funding will allow the borrower to buy the fee interest in the property. The loan was placed on behalf of Illinois Partners VI, an IL limited partnership. The lender was an East Coast-based life company. Edward T. Byrd & Company (407-426-8868) recently arranged a $2.4 million fixed-rate permanent loan for Water’s Edge Plaza in Orlando, FL and a $1.1 million fixed-rate permanent loans on Spring Center South in Altamonte Springs, FL. The loans were funded by Business Men’s Assurance Company of America. The company arranged a fixed-rate permanent loan of $1.875 million on Imperial Christina Plaza in Lakeland, FL. The project is anchored by Winn-Dixie. The loan was funded by Aid Association for Lutherans. The company arranged a $1.3 million loan on Pebble II, an unanchored shopping center in Altamonte Springs, FL. The loan was funded by AmerUS Life. The company also arranged a $1.1 million loan for Winter Park Terrace Shopping Center in Winter Park, FL. Standard Insurance Company issued a forward commitment for permanent financing on the proposed project. David Cronheim Mortgage Corporation (973-635-6800) recently arranged a $10.6 million mortgage for Westwood Plaza Shopping Center in Westwood, NJ. Financing was placed with National Realty Funding L.C. on behalf of the borrower, First Real Estate Investment Trust of New Jersey. The 173,854 sq.ft. project is anchored by Kmart and Grand Union. Lead Sheet Apparel The three-unit chain operates locations in TX. The women’s apparel stores occupy spaces of 1,400 sq.ft. to 2,000 sq.ft. in freestanding facilities and strip centers. Plans call for at least one opening in the coming 18 months. Expansion will take place in the existing market. Kenwin Shops Apparel The 81-unit chain operates locations in AL, AR, GA, LA, MS, SC and TX. The stores, selling missy and junior apparel, occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in downtown store fronts. Growth opportunities are sought in the existing markets. Champion Auto Stores, Inc. Automotive The 210-unit chain operates locations in CO, IA, ID, MI, MN, MT, ND, SD, WI and WY. The stores, selling automotive parts and accessories, occupy spaces of 5,000 sq.ft. to 6,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets. Leases running five years, with options, are typical and the company is franchising. Dollar Express Inc. Cards & Gifts The 24-unit chain operates locations in DE, MD, NJ and PA. The card and gift stores occupy spaces of 7,000 sq.ft. in strip centers. Plans call for two openings in the coming 18 months. Expansion will take place within the existing markets. Leases running five years are typical. Midway Oil Corporation Convenience Store The 14-unit chain operates locations in NY and VT. The convenience stores, which are co-branding with Dunkin Donuts, occupy spaces of 2,000 sq.ft. to 2,500 sq.ft. in freestanding facilities. Plans call for three openings in the coming 18 months. Expansion will take place in NH, NY and VT. Preferred demographics include a population of 30,000 within five miles earning $30,000 as the average income. Leases running 15 years, with three five-year options, are typical. The Pantry Convenience Store The 1,200-unit chain operates locations in FL, IN, KY, NC, SC, TN and VA. The convenience stores occupy spaces of 2,400 sq.ft. in freestanding facilities. Plans call for as many as 15 openings in the coming 18 months. Expansion will take place in the existing markets. Marc Glassman, Inc. Drug Store The 47-unit chain operates locations in CT, MA and OH. The drug stores occupy spaces of 35,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in CT and OH. Preferred demographics include a population of 30,000 within three miles earning $40,000 as the average income. Leases running 10 years are typical. Parker Commercial/Neighborhood Drycleaning Co. Drycleaners The 53-unit chain operates locations nationwide. The drycleaners occupy spaces of 2,800 sq.ft. to 3,200 sq.ft. in freestanding facilities and strip centers. Plans call for 23 openings in the coming 18 months. Expansion will take place in Orange County, CA. Preferred demographics include a population of 50,000 within two miles earning at least $50,000 as the average household income. Leases running five years are typical. Things Remembered, Inc. Gifts The 851-unit chain operates locations nationwide. The stores, selling personalized gifts, occupy spaces of 1,500 sq.ft. to 1,800 sq.ft. in regional malls. Plans call for at least 25 openings in the coming 18 months. Expansion will take place nationwide. Leases running five to ten years are typical. Al Stephen’s Salons Hair Salon The two-unit chain operates locations in FL. The hair salons occupy spaces of 1,500 sq.ft. to 2,000 sq.ft. in downtown store fronts and regional malls. Growth opportunities are sought in the existing market. NDM Enterprises, Inc. Home Furnishings The 34-unit chain operates locations in GA, IL, SC and WI. The stores, offering furniture, electronics and appliances on a rent-to-own basis, occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in freestanding facilities, regional malls, power and strip centers. Plans call for 18 openings in the coming 18 months. Expansion will take place in northern FL, GA, NC, SC and TN. Preferred demographics include a population of 30,000 within five miles earning $25,000 as the average income. Leases running three to five years are typical. Lamps Plus, Inc. Home Furnishings The 38-unit chain operates locations in AZ, CA, CO, NV, OR and WA. The stores, selling lighting, ceiling fans and accessories, occupy spaces of 11,000 sq.ft. to 12,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for three openings in the coming 18 months. Expansion will take place within the existing markets. Leases running 15 years are typical. Lampert Yards, Inc. Home Improvement The 39-unit chain operates locations in IA, MN, SD and WI. The home improvement stores occupy freestanding facilities on three acres of land. Growth opportunities are sought in the existing markets. The company prefers to purchase its locations. International Cutlery Housewares The 25-unit chain operates locations in CT, FL, MD, NJ and NY. The stores, selling cutlery, gifts, kitchen and cooking utensils, occupy spaces of 400 sq.ft. to 600 sq.ft. in regional malls. Plans call for at least 100 openings in the coming 18 months. Expansion will take place along the East Coast. Preferred demographics include a population of 100,000 within five miles earning $50,000 as the average income. Leases running five to ten years are typical. The company is looking to open kiosk locations. Merlo’s Cutlery, Inc. Housewares The 20-unit chain operates locations in AZ, CA, ID, OR, TX and WA. The stores, selling cutlery and gifts, occupy spaces of 500 sq.ft. to 850 sq.ft. in outlet centers and regional malls. Plans call for five openings in the coming 18 months. Expansion will take place in the existing markets Preferred demographics include a population of 300,000 within 10 miles earning $40,000 as the average income. Leases running 10 years are typical. Landmark Luggage & Gifts, Inc. Luggage The 17-unit chain operates locations in IL, IN, IA, KS, MO, NE and WI. The stores, selling luggage, occupy spaces of 2,000 sq.ft. to 2,500 sq.ft. in regional malls. Growth opportunities are sought in the existing markets. Sharon Luggage Ltd. Luggage The 15-unit chain operates locations in NC and SC. The stores, selling luggage and travel accessories, occupy spaces of 3,000 sq.ft. to 7,000 sq.ft. in freestanding facilities, power centers and regional malls. Preferred anchors include department stores. Growth opportunities are sought in NC, SC, TN and VA. Leases running eight years are typical. Midwest Vision Center Optical The 50-unit chain operates locations in MN and ND. The optical stores occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in downtown store fronts, regional malls and strip centers. Plans call for at least two openings in the coming 18 months. Expansion will take place in IA, MN and WI. Leases running five years are typical. Signs Now Corp. Signs The 306-unit chain operates locations throughout North America, England, Australia and Spain. The sign shops occupy spaces of 1,200 sq.ft. to 1,600 sq.ft. in strip centers. Preferred co-tenants include office supply stores. Plans call for 150 openings in the coming 18 months. Expansion will take place nationwide and internationally. Preferred demographics include 5,000 businesses within five miles. Leases running five to seven years are typical and the company is franchising. Batteries Plus, LLC A Wisconsin Liability Co. Specialty The 113-unit chain operates locations nationwide. The stores, selling batteries for everything from automobiles to watches, occupy spaces of 1,700 sq.ft. to 2,000 sq.ft. in freestanding facilities. Plans call for 40 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 100,000 within three miles earning $40,000 as the average income. Leases running 15 years are typical and the company is franchising. Recreational Equipment, Inc. Sporting Goods The 51-unit chain operates locations nationwide. The sporting good stores occupy spaces of 20,000 sq.ft. to 40,000 sq.ft. in freestanding facilities, regional malls and strip centers. Growth opportunities are sought nationwide. The company prefers to purchase existing buildings. Great Atlantic & Pacific Tea Co., Inc. Supermarket The 69-unit chain operates locations in DE, NJ and PA. The supermarkets occupy spaces of 25,000 sq.ft. to 55,000 sq.ft. in downtown store fronts, freestanding facilities and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 20 years are typical. Miggy’s Corporation Supermarkets The six-unit chain operates locations in NY and PA. The supermarkets occupy spaces of 30,000 sq.ft. in freestanding facilities and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets. Real Estate Professionals Making News Smithy Braedon*Oncor International (202-775-7650) announces that Lawrence Leber has been appointed president of Smithy Braedon*Oncor International Property Services, a new subsidiary. He previously served as senior executive vice president, chief financial officer and managing director of Smithy Braedon. Gadzooks, Inc. (972-307-5555) recently named David Mangini president and chief operating officer. Mangini is the former president of the Structure Division of The Limited, Inc., and will be responsible for every aspects of Gadzooks’ merchandising activities. KLNB, Inc. (410-321-0100) announces that Ernest Hueter has joined the company and will work in the company’s McLean, VA office. Closings Crate & Barrel (708-272-2888) recently closed its store at the intersection of Wabash and Washington Avenues in Chicago, IL after its lease expired. The company chose not to renew the lease after it learned that the rent would be doubled. Crown Books (301-731-1200), which recently filed for Chapter 11 protection, plans to close 79 of its 171 stores including exiting the markets of Seattle, WA; Dallas and Houston, TX and Philadelphia, PA. The company entered the Dallas market during September 1997. In addition, the company plans to close its store at Stanford Ranch Crossing in Roseville, CA. The store, which opened during Fall 1997, is the only one in the Sacramento, CA market. Exclusives Divaris Real Estate, Inc. (757-497-2113) has been appointed by Jitney Jungle Stores of America as its exclusive real estate agent. The company will be responsible for securing new sites for Jitney Jungle throughout its designated trade areas. Jitney Jungle, headquartered in Jackson, MS, currently operates more than 200 supermarkets in AL, FL, LA, MS and TN. Legend Properties (610-941-4034) has been appointed by White Castle Restaurants as its exclusive broker to dispose of three former White Castle restaurants. Two of the sites are located in Philadelphia, PA and the third is located in Washington Township, NJ. The units average 1,575 sq.ft. Metro Commercial Real Estate, Inc. (609-866-1900) has been named the exclusive leasing agent for Red Lion Plaza in Southampton, NJ. The 16,000 sq.ft. project is located on Route 206. Michael Salove Company (610-664-8100) has been named the exclusive broker for Concord Business Park in Concordville, PA. The property, being developed by Wynnewood Development, Inc., will include The Shoppes at Concord, a 150,000 sq.ft. retail project anchored by a high-end gourmet grocery store, full-service restaurants and specialty retailers. In addition, 550,000 sq.ft. of Class A office space and a 120-room hotel will be developed on the 75+ acre site. Horizon Group Properties (616-798-9294) recently entered into an agreement with Bloomington/Normal Factory Stores to manage, lease and operate the center in Normal, IL. The 200,000 sq.ft. project contains 33 retail stores and restaurants. Future plans call for the expansion of the center by 50,000 sq.ft. Crescent Consulting & Development, LLC (781-769-7799) represents Grossman’s Mr. 2nd’s Bargain Outlet in its expansion into Fall River, Lowell, Lynn and Springfield, MA and Albany, NY. The company is seeking spaces running 15,000 sq.ft. to 20,000 sq.ft. with outside selling areas. New Construction Rosenshein Associates recently broke ground on Peartree Square
Shopping Plaza in the Co-op City section of The Bronx, NY. The 141,000 sq.ft., 10-acre
project will be anchored by a 55,000 sq.ft. Edwards Super Foods Store, a 50,000
sq.ft. National Wholesale Liquidators Discount Store and a 10,000 sq.ft. Rite
Aid drug store. An additional 25,000 sq.ft. of specialty shop space will also be
included. The company was selected to purchase and develop the site, originally owned by
the city of New York, after responding to a Request for Proposal. The site was acquired
for $3.1 million. Continental Real Estate Services recently broke ground on Marlton
Specialty Center in Evesham, NJ. The 74,000 sq.ft. project is expected to be anchored
by Gap, Victoria’s Secret, Restoration Hardware and Williams-Sonoma. An
opening is planned during 1999. Prime Retail recently completed the development of Prime Outlets
at Hagerstown in Hagerstown, MD. The 218,000 sq.ft. project, located at the
intersection of I-70 and Route 65, includes 60 designer and specialty outlet stores
containing merchandise. The center is constructed in an outdoor village style with rows of
shops along parallel shopping streets divided by landscaped courtyards. The center also
features a children’s playground and an enclosed food court. At complete build-out,
which is planned to include two additional phases, the project will total more than
400,000 sq.ft. and include more than 100 outlet stores. Phase II of the site is already
under construction and is expected to open later this year. Space Place Connecticut Bristol- Bristol Commons is anchored by Caldor,
Olympia Sports, Toy Works, Blockbuster and Strawberries. The 233,000 sq.ft.
project has spaces of 2,000 sq.ft., 4,000 sq.ft. and 9,000 sq.ft. available for lease.
Demographics include a three-mile population of 61,682 earning $59,419 as the average
household income. In Danbury- Discovery Zone Shopping Center is
anchored by Discovery Zone and Boston Billards. The project has spaces from
1,500 sq.ft. to 2,000 sq.ft. available for lease. Demographics include a three-mile
population of 40,768 earning $67,531 as the average household income. Also in Danbury-
Strawberries Building is anchored by Strawberries. The 6,329 sq.ft. project
has a 1,329 sq.ft. space available for lease. In Monroe- Monroe Center
has spaces from 5,000 sq.ft. to 20,000 sq.ft., including a former supermarket with
fixtures and equipment, available for lease. Demographics include a five-mile population
of 43,159 earning $108,764 as the average household income. In Stratford- Dock
Shopping Center is anchored by Super Stop & Shop, Bradlees, Staples, Petco
and Jo-Ann Fabrics. The 275,000 sq.ft. project has spaces of 2,000 sq.ft.,
2,435 sq.ft. and 5,500 sq.ft. available for lease. In addition, a proposed 27,000 sq.ft.
expansion is planned and a 10,000 sq.ft. waterfront restaurant is planned. Demographics
include a five-mile population of 182,641 earning $64,531 as the average household income. Florida Cape Coral- Coralwood Shopping Center is anchored by JC
Penney, Beall’s, Beall’s Outlet, Kmart, Winn-Dixie and Regal Cinemas.
The 343,066 sq.ft. project has space available for lease. Demographics include a five-mile
population of 140,167 earning $46,222 as the average income. Pompano Beach- Shoppers Haven is anchored by Winn-Dixie
Marketplace, Walgreens and Hops Restaurant. The 203,000 sq.ft. project has
anchor positions and satellite space available for lease. The site is located at the
intersection of Sample Road and Federal Highway which has a combined daily traffic count
in excess of 54,000 vehicles. Indiana Highland- A 2,998 sq.ft. freestanding building is available for
lease. The site was formerly occupied by a cellular products company and the building has
an installation bay. Maryland Baltimore- Parkway Crossing is anchored by SuperFresh,
Caldor, Jeepers! and Blockbuster Video. The project has spaces of 3,250 sq.ft.
and 6,872 sq.ft. available for lease. In Pasadena- Festival at Pasadena
is anchored by BJ’s Wholesale Club, Ollie’s, Minnesota Fabrics, Rugged Wearhouse,
Party City and Radio Shack. The 241,000 sq.ft. project has a retail space of
1,475 sq.ft. and an office space of 3,692 sq.ft. available for lease. Massachusetts North Adams- North Adams Center is anchored by Kmart,
Brooks Drugs and Fashion Bug. The 138,849 sq.ft. project has in-line spaces
available for lease. Demographics include a five-mile population of 27,637 earning $34,674
as the average household income. New Hampshire Claremont- Claremont Plaza is anchored by Big Lots
and Aubuchon Hardware. The 60,000 sq.ft. project has a 4,000 sq.ft. space available
for lease. Demographics include a three-mile population of 13,000 earning $34,000 as the
average household income. |