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Issue Number 46
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The Dealmakers Issue Number 46 for the week of December 23,1998. My Way by Ted Kraus All I can say is I'm glad Ann and I decided not to go anywhere for Christmas/New Year this year, which is the first time we won't be on the road during the Holidays in years. The reason we made this decision was we’re tired of airports, crowds and hotels. This has been a banner year for the company and part of our marketing approach, which helped our success has been to attend 30 or so ICSC dealmaking events throughout the country during ‘98. We’ve shaken thousands of hands, kissed lots of babies and listened to our readers. That decision panned out well for the business, but has left a toll on our bodies. Anyway, in the last month, we attended three shows, one being the Dallas ICSC dealmaking event, the second New York City (Eastern States) and the third was also in Dallas, but it was an Amusement Convention primarily attended by amusement park operators, family game room owners and carnys. (The amusement event was the most fun and definitely the most entrepreneurial.) Reporting on the last show attended, first, New York was exactly what I expected it be, another record breaker in attendance and one of the largest ICSC shows of the year. This event is slowly (well, actually not slowly) replacing the failed mid-year event that was held last in Kansas City. The attendance in New York was higher than Kansas City ever was and far more productive, representing most of the nation’s dealmakers (I noticed the event seems to draw from the entire country except California which had low representation. I guess Californians hate New York). Now one of the reasons this event is so successful is it’s in New York in December, so people come early, bring their family and shop for the Holidays. About the only negative is that with 3,800 attendees, we’re close to the max the Hilton can handle and since the Hilton is the largest hotel in the city, the only other choice is the Javis Center and no one wants that. (Costs would be astronomical.) The only good thing is that a recession is due soon, which should slow down attendance and therefore make the Hilton useful for a few more years. (Oh, I have one more complaint with the New York show; it’s held in New York and therefore we’re raped on prices everywhere we go. I ended up paying $15 for two bagels and two orange juices. What really aggravated me was when Ann and I sat down in the Hilton to eat the breakfast, there was a glaring sign from across the street advertising bagel, coffee and juice for $1.95, that really "hurt." The Hilton gouged us everywhere they could (I have to admit the service was good, so at least they kissed us first), but the show was worth it. While it was a record breaking show and everyone appeared to be a happy trooper, the energy level was low (for New York). I think because the industry is becoming more and more paranoid on how long the good times can last and many have encountered a minor slowdown in either brokerage, development or retailing. Also, the layout of three floors provides more room to breath and prevented me from becoming claustrophobic, so the show appeared less hectic. While developers bitched about the difficulty of obtaining financing, most were getting what they needed, just at 3/4 to 1 point higher than 6 months ago, which isn’t bad. I remember 12 to 15 years ago, financing a $10 million center at 18%, sometimes a higher interest rate than my credit cards charged. Money is still very much readily available. Retailers are still expanding, developers are still developing and brokers are still doing deals. The industry still appears to be doing well. The price of shopping centers seem to be improving, with the REITs not that active, CAP rates are going up. (Becoming more realistic). Also, I hear numerous REITs, including Simon are packaging their problem centers for sale (without being an "I Told You So," I did say that months ago) because they can’t handle problems or are afraid to make the deals necessary for these centers to work because the stock market won’t like it. Also, everyone I spoke to was "evaluating the First Union portfolio" but were having difficulty figuring out how to make the acquisition work. (A combined problem of poor real estate and high prices.) I spoke to one "mini anchor" and he said he loves dealing with the REITs. It used to be he’d fight like crazy to get TI out of some of these developers, now that they’re REITs, the first question they ask is "How many million$ do you need?" and his rents haven"t increased. Most of the retailers I spoke to said sales were up, but margins were down which means volume wise, this should be a good Christmas but the retailers may not be happy when it comes to profits. On a different subject (in a way) the Dallas show also set a record for attendance with 700+ attendees, but I can never figure out why this show doesn’t do better since the Texas market is excellent and development is going strong, therefore, there should be more dealmakers attending. While the show did not have the energy level of New York, everyone was hustling deals and appeared happy. One broker complained that they did numerous Wal*Mart sub-leases and had an excellent year in commissions, however, when Wal*Mart realized how much money he made (forget how much he saved ‘em) they renegotiated his deals so it was almost impossible for him to make a decent buck. I guess that’s proof that smart companies do stupid things. They’re paranoid that someone might make money off of them and while watching expenses is smart, being paranoid about a salesman making money is stupid. I also spoke to one broker at the show that had just changed companies. Last year he made nearly $250,000, so his company wanted to negotiate his percentage down because he did so well... stupid, stupid, stupid. I got the feeling at the Dallas show that Texas is similar to Florida, in that it’s easier to do big boxes than specialty stores. Everyone had anchors for their proposed centers, it’s filling ‘em up with small shops that’s difficult. Last but not least, we attended the National Association of Amusement Parks Convention (703-836-4800). We attended this event for two reasons; one because of our new publication E.S.P. We felt it could provide great insight into where the entertainment industry is headed (and it did). The second reason was I was looking for a reason to attend, since in my youth I operated amusement parks and always enjoyed the people and the industry. Josh was with us and he loved it, spending the day riding rides and playing the latest arcade pieces for free. Anyway, while I’m sure that there had to be some shopping center people in attendance besides us, we didn’t spot ‘em and they should have been there if they’re involved in the entertainment aspect of retailing. This is an industry still filled with entrepreneurs who make things happen and bet their future with their own money. These operators know how to get the public happy and separate ‘em from their money. If you really want to see the future in entertainment, attend this show. What we’ve learned so far in publishing E.S.P. is that a lot of the people operating these new forms of entertainment complexes have absolutely no experience and usually get into the business with OPM (other people’s money). Usually the state, city or federal government either provides low interest, non recourse money or just gives a grant for millions to help "revitalize" an urban area. Their (the government’s) dollars would go a lot further and there would be less default if they attended this show and made a deal with people who’ve been providing America with entertainment for decades and know what they’re doing. Automotive Tenants Expanding Nationwide V.I.P., Inc. trades as VIP Discount Auto Centers at 41
locations in ME, MA and NH. The stores, selling automotive parts, accessories, tires and
tools, occupy spaces of 10,500 sq.ft. to 21,000 sq.ft. in freestanding facilities.
Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for as many
as 12 openings in the coming 18 months. Expansion will take place in the existing markets.
Preferred demographics include a population of 50,000 within 10 miles earning $32,000 as
the average income. Leases running 15 years are typical. Midas Realty Corp. does business as Midas at 7,010 locations
worldwide. The stores, offering under car repair services, autobody and auto painting
work, occupy spaces of 3,000 sq.ft. to 6,000 sq.ft. in freestanding facilities, power and
strip centers. Plans call for 150 openings in the coming 18 months. Expansion will take
place worldwide. The company is franchising. Auto Parts Club trades as Auto Parts Club and Auto Depot
at 10 locations in CA and NV. The stores, selling automotive parts and accessories, occupy
spaces of 30,000 sq.ft. in power centers. Plans call for nine openings in the coming 18
months. Expansion will take place in the Western region. Preferred demographics include a
population of 400,000 within five miles earning $40,000 as the average income. Leases
running 10 to 15 years are typical. Strauss Auto Parts trades as R&S Strauss Auto Parts and Strauss
Discount at 111 locations in CT, DE, MA, NJ, NY and PA. The automotive parts stores
occupy spaces of 8,000 sq.ft. to 14,000 sq.ft. in freestanding facilities and strip
centers. Growth opportunities are sought in northern NJ and in all five boroughs of New
York City. Grease Monkey International operates 216 locations nationwide and
in Mexico. The quick-lube centers occupy spaces of 1,800 sq.ft. in freestanding facilities
on land areas running at least 18,000 sq.ft. Growth opportunities are sought nationwide.
The company is franchising. Real Estate Professionals Making News American Multi-Cinema, Inc. (816-421-4000) announces the promotion of John McDonald to executive vice president of North American operations. In his new position, McDonald will be responsible for directing all aspects of AMC’s North American theater operations. Edens & Avant (803-799-4420) announces that William Robbins, Esq. has joined the company as director of retail leasing. Koll Development Co. (949-833-3025) has named Gerold Yahr, partner, executive vice president and corporate secretary. Yahr has been with Koll for 11 years. Stop & Shop Supermarket Company (617-770-6037) announces that Dick Baird has been appointed president and chief executive officer of Giant Food, Inc.; Marc Smith has been promoted to executive vice president and chief operating officer at Stop & Shop; Dean Cohagen has been promoted to executive vice president, operations; Rick Picariello has been promoted to senior vice president, real estate; Brian Hotarek has been promoted to executive vice president and chief financial officer and Jim Sylvia has been promoted to director of real estate-Boston division. Obituary Bill Horvath president of ChainLinks (210-805-8707) died November 23, 1998, at the age of 53, ending an 11-month battle with cancer. Horvath started with ChainLinks in 1994, first as executive director, and since September 1998, as president. Born in Detroit, MI, he was elected city-wide student council president of his high school, and student body president of St. Olaf College. He graduated from Yale Divinity School in 1970. After college, Horvath returned to Detroit to assist in the civil rights movement and to help repair the inner-city by convincing local companies to build much needed grocery stores in Detroit’s fire-destroyed city core. His work attracted national attention, and in 1976, he joined H.E.B. Food Stores, where he rose to senior vice president of real estate. Horvath had been with ChainLinks Retail Advisors for four years at the time of his death. Horvath was an active community leader, serving on the boards of civic organization such as Planned Parenthood, YMCA, and his local National Public Broadcasting station. He also served on the editorial advisory board of Shopping Centers World. He is survived by his wife Kathryn and two daughters. New Construction Eagle Pavilion LLC recently broke ground on Eagle Pavilion
Shopping Center in Eagle, ID. The 32,000 sq.ft. project will be anchored by Albertson’s
Supermarket. Space for 17,000 sq.ft. of in-line tenants and four outparcels will also
be developed. In-line tenants sought include video stores, gift shops, clothing stores and
restaurants. A March 1999 opening is planned. Washington Commercial Real Estate Services, Inc. plans to develop a
155,000 sq.ft. shopping center in Everett, WA. The project is expected to contain a mix of
a movie theater, restaurants and retail shops and will be developed adjacent to an
existing 667,425 sq.ft. mall which is anchored by The Bon Marche, Mervyns and Sears.
A Spring 2000 opening is planned. The Rappaport Companies recently received approval to expand Mount
Airy Shopping Center in Mount Airy, MD. Plans call for the addition of a 102,573
sq.ft. Wal*Mart, the expansion of the existing Safeway Supermarket to 55,164
sq.ft. and the addition of 23,400 sq.ft. of new retail space. Construction is expected to
begin during April 1999 and completion is expected by Spring 2000. Porter Ranch Development Company is currently developing Porter
Town Ranch Center in Northridge, CA. Phase I of the project will consist of a 600,000
sq.ft. community/power center anchored by Wal*Mart, Ralphs, Sport Chalet, Party City,
Best Buy and Toys ‘R Us. Wal*Mart is expected to open during the first
quarter of 1999, with the remainder of the project opening during Summer 1999. At final
build-out, the project will encompass 4.5 million sq.ft. The project is located off the
118 Freeway and features a three-mile population of 223,000 earning in excess of $85,000
as the average household income. Carolina Holdings, Inc. recently broke ground on Twin City
Crossing in Batesburg-Leesville, SC on behalf of the owners, CH/Batesburg, LLC.
The 48,000 sq.ft. project will be anchored by a 41,980 sq.ft. Bi-Lo grocery store
and feature 6,000 sq.ft. of specialty shop space. An outparcel is also available. The
center is expected to open during Summer 1999. Caruso Affiliated Holdings recently completed development of The
Commons at Calabasas in Calabasas, CA. The 200,000 sq.ft. project, designed in an
Italian Village motif, is 100% leased and anchored by Ralph’s Signature Series
Grocery, Barnes & Noble, a six-screen Edwards Theater, Rite-Aid and Imaginarium.
The center features a 65-foot brass domed clocktower which houses the world’s largest
Rolex clock. Staples, Inc. (508-370-8500) reported that its third quarter net income increased to $69.2 million from $52 million during the third quarter last year. Total sales for the quarter increased 22% to $1.9 billion from $1.6 billion last year with comparable store sales up 12%. During the quarter the company opened 46 stores and currently operates 878 stores nationwide. Starbucks Corporation (206-447-7954) reported that its consolidated net revenue for fiscal 1998 increased 34% to $1.3 billion from $975 million during FY97. Retail sales increased 48% to $206 million and comparable store sales increased five percent for the year. Net earnings were $81.4 million, up from $55.2 million during FY97. The company currently operates 1,886 stores throughout North America, the United Kingdom and the Pacific Rim. Shoe Carnival, Inc. (812-867-4105) reported that its third quarter net earnings increased 17.2% to $3.6 million from $3.1 million during the third quarter last year. Net sales for the quarter increased 15.2% to $76.4 million from $66.4 million last year with comparable store sales up 2.2%. During the quarter the company opened eight stores and currently operates 112 shoe stores in the Midwestern and Mid-South regions. The company is planning to open as many as 30 stores next year. The Good Guys! (650-615-5000) reported a fiscal 1998 net loss of $8.9 million, as compared to a net loss of $12.2 million during FY97. Fiscal year sales increased four percent to $928.5 million from $890.5 million during FY97 with comparable store sales up three percent for the year. The company currently operates 77 consumer electronics stores trading as The Good Guys!, Wow! and Audio/Video Exposition in CA, NV, OR and WA. Nordstrom (206-628-2111) reported a third quarter profit of $38.7 million, up seven percent from $36.15 million during the third quarter last year. Third quarter sales increased 0.4% to $1.1 billion with comparable store sales down 4.2% for the quarter. The company currently operates 99 department stores in 22 states. Toys ‘R Us, Inc. (201-599-7850) reported that its third quarter sales increased to $2.2 billion from $2.1 billion during the third quarter last year. As a result of restructuring charges, the company reported a quarterly loss of $475 million, compared to net earnings of $46 million last year. Comparable store sales fell five percent for the quarter. The company currently operates 703 toy stores in the U.S. and 460 internationally, as well as 212 Kids ‘R Us stores and 109 Babies ‘R Us stores. Genesco, Inc. (615-367-8330) reported that its third quarter net sales decreased to $129.2 million from $147 million during the third quarter last year. Net earnings fell to $6.3 million from $9.6 million last year. Overall, comparable store sales declined four percent for the quarter. Through the first three quarters of the year, the company has opened 150 new shoe stores. As many as 95 store openings are planned for 1999. The company’s products are currently sold at wholesale to more than 2,700 retailers. The company also operates 592 stores trading as Journeys, Johnston & Murphy, Jarman and Underground Station. Sources of Financing The Marabella Company (949-363-0800) recently arranged financing in the amount of $650,000 for a Blockbuster Video store. The loan carries a fixed interest rate of 7.875%, has a 10-year term and a 30-year amortization schedule. The company also arranged financing in the amount of $685,000 for a CSK Automotive store. The loan carries a fixed interest rate of 7.6%, has a 15-year term and a 25-year amortization schedule. Tri-Stone Companies (561-750-9008) recently arranged $7.5 million in forward funding for a permanent loan for Shops at Cedar Lake in Sterling, VA. The 68,260 sq.ft. project, which is currently under development, will be anchored by Food Lion. The company also structured and placed a $3.41 million forward take-out loan for a freestanding Eckerd on an outparcel at the same center. A 1:1 debt service coverage for the outparcel and a 115 debt service coverage on the rest of center was used. Both loans have 20-year, self-liquidating terms. Aries Capital (312-642-0100) recently funded a $6 million loan for International Towne Center in Orlando, FL. Daiwa Securities America, Inc. purchased the loan for securitization. Located near Disney World and Sea World, the project consists of three structures which include one 38,070 sq.ft. building and two freestanding restaurants of 6,400 sq.ft. and 7,180 sq.ft. Major tenants include Bennigan’s, Steak & Ale and Subway. Holliday Fenoglio Fowler, LP (214-265-0880) recently arranged a $1.625 million loan for Kimball Center, Ltd. to refinance Southlake Center at Kimball in Southlake, TX. The 14,172 sq.ft. project is anchored by Leslie’s Pool Supply, Alpha Graphics, Stewart Title Co. and Bruegger’s Bagels. Big Buck Brewery & Steakhouse (517-731-0401) recently placed $1.4 million in mezzanine debt with Crestmark Bank. The funds will be utilized primarily in the construction of a new 500-seat microbrewery and restaurant in Grapevine, TX. The new restaurant is expected to open during the first quarter of 1999 in conjunction with Bass Pro Outdoor World. Who’s Opening & Where CompUSA, Inc. (972-982-4000) recently opened a 26,100 sq.ft. store in Boulder, CO and a 28,000 sq.ft. store in Omaha, NE. The two new stores feature the company’s latest store prototype, showcasing unique areas such as CompUSA’s CompKids and Software Sampler areas in an interactive shopping environment. Designed for maximum customer convenience, the stores feature other departments including software, computers, the Apple "Store Within A Store," a business center, printing and supplies, compact technology, accessories and internet. The stores also include multi-classroom training centers that offer computer training courses for all experience levels in the latest software for consumers and businesses. Diedrich Coffee, Inc. (714-260-6785) recently signed a franchise deal with Rocket Enterprises, Inc. to build 50 new coffeehouses in San Diego, Temecula and Palm Springs, CA in the coming five years. The deal also gives Rocket a one-year option to start building another 45 units throughout AZ. Diedrich currently operates 36 coffeehouses in CA, CO and TX. Publix Super Markets, Inc. (941-688-1188) plans to open a 27,887 sq.ft. supermarket at Gateway Shopping Center in Jacksonville, FL during October 1999. Morton’s Restaurant (516-627-1515) plans to open a 7,000 sq.ft. restaurant on an outparcel of Windy Point of Schaumburg office complex in Schaumburg, IL. A September 1999 opening is planned. Westlake Ace Hardware (913-888-0808) plans to open a 22,000 sq.ft. hardware store at a former Hobby Lobby location (which relocated to a larger space across town) in Lawrence, KS during 1999. The company is also looking to open a store in Arkansas City, KS during 1999. Best Buy (612-947-2388) recently opened a store in Towson, MD and a store in Sugar Land, TX. The company plans to open a store in Sacramento, CA in a former Best Products store near Arden Fair Mall during Summer 1999. It will be the company’s first store in that market. In addition, the company plans to enter the Jacksonville, FL market during 1999 with two stores. Dillard’s Department Stores, Inc. (501-376-5200) plans to open a 240,000 sq.ft. store at International Plaza during Fall 2001. Starbucks Coffee Co. (206-447-7954) plans to open a 1,300 sq.ft. unit in downtown St. Louis, MO this month. It will be the company’s first unit in St. Louis. Z Gallerie (310-410-6650) plans to open a 9,500 sq.ft. furniture store at MacArthur Center in Norfolk, VA during Spring 1999. The company, which has a majority of its stores in AZ and CA, is planning a nationwide expansion. London Fog (215-922-7184) recently opened a Weatherwear Clothing Co. store at Easton Market Plaza in Columbus, OH. It is the second of five planned openings. The stores carry casual outerwear and high-quality, value-priced clothing for young consumers. Krystal Co. (423-757-1584) plans to develop 25 new restaurants and upgrade its 340 existing units in the coming two years. Wal*Mart (501-273-4000) plans to open a 152,000 sq.ft. Supercenter in Espanola, NM next month. Restaurant Teams International, Inc. (800-473-1914) recently acquired a 5,000 sq.ft. Zeke’s Grill in Addison, TX and is in the process of converting it into a Street Talk Cafe location which is expected to open this month. Jersey Mike’s Franchise Systems, Inc. (732-528-7676) recently signed an area agreement with JM Hopkins, LLC to develop 10 additional Jersey Mike’s units in the Atlanta, GA market. The company also signed an area development agreement with Mibruda, LLC to develop five restaurants in the Charlottesville, VA market. Cafe Odyssey, Inc. (612-837-9917) plans to open a restaurant at Irvine Spectrum Entertainment Center in Orange County, CA during the fourth quarter of 1999. Star Buffet, Inc. (801-463-5500) recently opened a BuddyFreddys Country Buffet restaurant in Tampa, FL. Office Depot (561-265-4258) plans to develop a 22,000 sq.ft. store at Clarence Mall in Buffalo, NY. Nob Hill Foods (408-842-6441) recently closed a supermarket in Salinas, CA. The company had operated the store since April 1980, but the store was small and had no room for expansion. The company currently operates a unit in South Salinas and is looking for a site to develop a replacement store in North Salinas. Target (612-304-6099) plans to close its store in Tucker, GA during March 1999. The company has operated the store since April 1989. Foreman’s Menswear (612-450-0102) plans to close its last five men’s apparel stores in the Minneapolis-St. Paul market, Omaha, NE and in IA by the end of the year. The family-owned company decided to close after a two-year attempt to increase sales by catering to the workday casual market failed. Pier 1 Imports Inc. (817-878-8000) plans to close its downtown Lawrence, KS store and relocate it to a larger space just south of the downtown area within a year. The company is relocating the store because it is losing money at its present site. Sunglass Hut International (800-767-0990) plans to close an additional 50 to 75 stores by the end of next month, making a total of 200 to 225 closing so far during its current fiscal year. Currently, the company operates 2,003 stores worldwide. D.I.Y. Home Warehouse, Inc. (216-328-5100) plans to close its home improvement stores in Bedford and North Canton, OH. The Forgotton Woman (212-997-7399) plans to close its remaining nine large-size women’s apparel stores nationwide. Founded 20 years ago, the company operated 20 stores at its peak. The company filed a Chapter 11 petition during September and converted to a Chapter 7 liquidation last month. Shoney’s, Inc. (800-626-5630) and its franchisees have closed a total of 139 restaurants nationwide during its past fiscal year. During the first quarter of fiscal 1999, the company is planning to close an additional 24 restaurants. Seiferts Stores for Women (319-366-8266) recently announced that the company plans to close its 45-unit chain by the end of next month. In announcing the closure, the company cited trouble competing with discount department stores as the reason for the liquidation. The company operates its women’s apparel stores in IL, IA, MN, MO, ND, SD, VA and WI. Buyers & Sellers Pappas Realty Co. has the listing to sell a 4.5 acre parcel of land
adjacent to Chapel Hill Mall in Akron, OH. The site has approximately 380 feet of frontage
on Brittain Road. The asking price is $675,000. The company has the listing to sell a 1.47
acre strip center in Cuyahoga Falls, OH. The fully leased project has approximately
$125,000 in gross revenues. The asking price is $998,000. The company has the listing to
sell a retail/warehouse building in Akron, OH. The asking price is $1.15 million. The
company also represents a national restaurant company in the market to acquire sites
located near McDonald’s and Burger King throughout OH. The company also prefers
corner lots with good traffic counts. R.J. Brunelli & Co., Inc. has the listing to sell a 4.5 acre
site fronting Route 34 in Aberdeen, NJ; a 4.75 acre site fronting Highway 36 in West Long
Branch, NJ; a 2.4 acre site fronting Main Street in Manville, NJ and a 3.7 acre ground
lease fronting Route 1 in North Brunswick, NJ. Landauer Real Estate Counselors has the listing to sell a portfolio
of three shopping centers in NC and TN. The combined GLA is 392,229 sq.ft. and the
projects are all anchored by Wal*Mart and either Food Lion or Ingles supermarkets.
Estimated total Wal*Mart sales for 1998 is $85 million and $22 million for the grocery
stores. Forecast 1999 NOI is $1.911 million. Raymond R. Betz Brokerage, Inc. represents investors seeking power
centers nationwide. Preferred projects should be priced between $6 million and $50
million. All cash deals are possible. The company also represents an investor in the
market to acquire one to three Winn-Dixie or Publix anchored shopping centers in FL.
Preferred projects should be less than five years old. All cash deals are possible. Marcus & Millichap has the listing to sell the 50,000 sq.ft.
Cloverland Shopping Center in Montgomery, AL. The asking price is $950,000 and owner
financing is available with 20% down. The Greenwich Group International LLC has been retained by 200
Greenwich Associates LLC to sell its three-story, Class-A 47,622 sq.ft. retail/office
complex at 200 Greenwich Avenue in Greenwich, CT. A fully-leased property, the
complex’s ground and second floor levels are comprised of 26,481 sq.ft. of retail
space occupied by Ann Taylor, The Limited, CP Shades and Baker, Knapp & Tubbs. Ramco-Gershenson Properties Trust recently acquired Rivertowne
Square Shopping Center in Deerfield Beach, FL for $8.7 million. The 136,653 sq.ft. project
is anchored by Winn-Dixie, Office Depot and Eckerd Drugs. Pan Pacific Retail Properties, Inc. recently acquired two
grocery-anchored shopping centers in Vallejo, CA and Reno, NV for $15.4 million. The
projects include Glen Cove Center in Vallejo. The 66,000 sq.ft. project is anchored by
Safeway and Mira Loma Shopping Center in Reno. The 94,360 sq.ft. project is anchored by
Scolari’s Supermarket and Longs Drugs. Atlantic Retail Properties represented Aetna Real Estate Investors
in the sale of Assembly Square Mall in Somerville, MA. The 322,000 sq.ft. project was
acquired by a joint venture of Taurus New England Investments Corporation and National
Development of New England for $18.8 million. Peckham Boston Advisors and Laurence Associates recently
connected in cyberspace on two net leased Walgreen Drug Stores. The freestanding buildings
sold for $5.592 million. The properties are located in Attleboro, MA (13,000 sq.ft.) and
in Woonsocket, RI (13,005 sq.ft.). West Side Property Group is acquiring grocery anchored shopping
centers for its portfolio. Preferred projects should have a nine percent return or better,
be 75,000 sq.ft. or larger, and be located in the Southeastern region. Single centers or
large portfolios will be considered. Lead Sheet Apparel The 11-unit chain operates locations in AL, GA and MS. The stores, which sell and rent tuxedos, occupy spaces of 600 sq.ft. to 1,250 sq.ft. in regional malls and strip centers. Growth opportunities are sought in the existing markets. Preferred demographics include a population of 100,000 within five miles earning $30,000 as the average income. Leases running five years are typical. Color, Inc. Apparel The 33-unit chain operates locations nationwide. The stores, selling apparel, accessories, gifts and jewelry, occupy spaces of 400 sq.ft. to 700 sq.ft. in downtown store fronts and specialty centers. Plans call for as many as 20 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years, with options, are typical. The Tanner Companies, Inc. Apparel The 14-unit chain operates locations in CT, FL, NC, SC, TN and VA. The stores, selling upper-end apparel, occupy spaces of 2,000 sq.ft. to 2,500 sq.ft. in freestanding facilities and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place within the existing markets. Hallmark Cards Cards & Gifts The 7,000-unit chain operates locations nationwide. The stores, selling Hallmark cards and gifts, occupy spaces of 3,500 sq.ft. to 7,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls, power and strip centers. Plans call for 250 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 50,000 within three miles earning $40,000 as the average income. Leases running 10 years are typical. Sheetz, Inc. Convenience Store The 208-unit chain operates locations in MD, OH, PA, VA and WV. The convenience stores occupy freestanding facilities on land areas running one to two acres. Plans call for 30 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 15 years are typical. USA Drug & Beauty Market Drug Store The 115-unit chain operates locations in AR, LA, MS, MO, TN, TX and WI. The drug stores occupy spaces of 3,000 sq.ft. to 20,000 sq.ft. in freestanding facilities. Preferred anchors include supermarkets. Plans call for five openings in the coming 18 months. Expansion will take place in AR, MS and TN. Preferred demographics include a population of 25,000 within three miles earning $30,000 as the average income. Leases running seven years are typical. The company is looking for locations to replace existing older stores. Tandy Corporation Electronics The 7,000-unit chain operates locations nationwide. The stores, selling electronics, computers and electronic supplies, occupy spaces of 2,000 sq.ft. to 2,500 sq.ft. in downtown store fronts, freestanding facilities, regional malls and strip centers. Plans call for 100 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 40,000 within three miles earning $20,000 as the average income. Leases running five years are typical. Ace Cash Express Finance The 720-unit chain operates locations in AR, AZ, CA, CO, FL, GA, IN, LA, MD, MO, NC, NE, NM, OH, OK, OR, SC, TX, VA, WA and Washington, D.C. The stores, offering check cashing and related financial services, occupy spaces of 1,000 sq.ft. to 1,300 sq.ft. in freestanding facilities and strip centers. Preferred anchors include supermarkets. Plans call for 100 openings in the coming 18 months. Expansion will take place in AZ, CA, CO, FL, MO, NC, NV, SC, TX, VA, WA and Washington, D.C. Preferred demographics include a population of 10,000 within one mile earning between $25,000 and $40,000 as the average income. Leases running three to five years, with options, are typical and the company is franchising. Ashley Avery LLC Gifts The 33-unit chain operates locations in AZ, CA, CO, FL, GA, ID, IL, KS, KY, LA, MD, OR, PA, TX and WA. The stores, selling top selling lines of collectibles, occupy spaces of 1,000 sq.ft. in regional malls. Preferred co-tenants include upscale retailers. Plans call for 15 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years are typical and the company, which prefers a tenant allowance, is franchising. Fiesta Salons, Inc. Hair Salon The 255-unit chain operates locations in KY, IN, MI, OH and WV. The hair and tanning salons occupy spaces of 1,000 sq.ft. to 1,200 sq.ft. in strip centers. Growth opportunities are sought in the existing markets. Leases running five years are typical. Deck The Walls Home Decor The 200-unit chain operates locations nationwide. The stores, selling art and wall hangings, occupy spaces of 1,500 sq.ft. to 1,800 sq.ft. in regional malls. Plans call for 10 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 250,000 within 15 miles earning $40,000 as the average income. Leases running 10 years are typical and the company is franchising. Schewel Furniture Co. Home Furnishings The 44-unit chain operates locations in NC, VA and WV. The stores, selling furniture, appliances and electronics, occupy spaces of 12,000 sq.ft. to 20,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in NC and VA. Preferred demographics include a population of 20,000 within five miles earning $25,000 as the average income. Leases running 10 years, with options, are typical. The company cites Heilig Meyers as competition. Scotty’s, Inc. Home Improvement The 148-unit chain operates locations in AL, FL and GA. The home improvement stores occupy spaces of 8,000 sq.ft. to 40,000 sq.ft. in freestanding facilities and strip centers. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for 15 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 12,000 within one mile earning $25,000 as the average income. Leases running three to five years are typical and the company cites Home Depot, Lowe’s, Ace and True Value as competition. National Record Mart, Inc. Music The 170-unit chain operates locations nationwide. The music stores occupy spaces of 2,200 sq.ft. to 10,000 sq.ft. in regional malls. Plans call for 30 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years are typical and the company cites Camelot Music, Musicland and Record Town as competition. Aim Mail Center Service The 48-unit chain operates locations in AZ, CA and NV. The stores, offering postal and business services, occupy spaces of 900 sq.ft. to 1,800 sq.ft. in strip centers. Preferred anchors include supermarkets. Plans call for 25 openings in the coming 18 months. Expansion will take place in AZ, CA, FL, IL, MO, NV and WA. Preferred demographics include a population of 15,000 within one mile earning $40,000 as the average income. Leases running five years are typical and the company is franchising and co-leasing. Sibley’s Shoes Shoes The 34-unit chain operates locations in MI. The stores, selling men’s and women’s shoes, occupy spaces of 2,000 sq.ft. to 5,000 sq.ft. in regional malls. Growth opportunities are sought in the existing market. Leases running 10 years are typical. First Cash, Inc. Specialty The 65-unit chain operates locations in CT, DE, MA, MD, ME, NH, OK, RI, TX and VT. The pawn shops occupy spaces of 3,500 sq.ft. to 5,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in AL, CT, FL, GA, ME, MD, MA, NC, RI, SC, TN, VT, VA and Washington, D.C. Space Place Colorado Aurora- Hoffman Heights Center is anchored by Ace
Hardware, Brunswick Recreation Center and Video Buffs. The 240,000 sq.ft.
project has spaces of 672 sq.ft., 1,200 sq.ft. and 4,800 sq.ft. available for lease.
Demographics include a three-mile population of 150,000 earning $45,000 as the average
income. Florida Melbourne- Lake Washington Crossing is anchored by Publix,
Walgreens and Blockbuster. The 119,208 sq.ft. project has spaces from 936
sq.ft. to 3,700 sq.ft. and a 13,000 sq.ft. anchor position available for lease. Georgia Kennesaw- The Shops at Shiloh Crossing is anchored by Airtouch
Cellular, Johnny’s NY Pizza, Mattress King and Big Apple Bagel. The
project has a 3,900 sq.ft. restaurant space and in-line spaces from 1,200 sq.ft. to 1,400
sq.ft. available for lease. Demographics include a five-mile population of 103,266 earning
$62,919 as the average household income. Newnan- Shenendoah Plaza is anchored by Radio Shack,
Renter’s Choice, Big Lots and Wahoo Creek Steakhouse. The project has a
32,000 sq.ft. space available for lease. Kansas Overland Park- Switzer Commons has three spaces of 1,400
sq.ft. each and a 5,600 sq.ft. space available for lease. Demographics include a five-mile
population of 122,000 earning $67,000 as the average household income. A September 1999
opening is planned. Oklahoma Broken Arrow- Kenosha Crossing is anchored by Reasors
Grocery. The project has outlot spaces of 40,487 sq.ft., 46,927 sq.ft., 48,0002
sq.ft., 54,194 sq.ft. and 103,336 sq.ft. available for lease. Pennsylvania Pottstown- An 8,400 sq.ft. freestanding facility is available
for lease. The site is currently occupied by Movieland Express. Retailers located
nearby include Genuardi’s Family Market, CVS, Pizza Hut, Dairy Queen,
McDonald’s and Burger King. Williamsport- Giant Plaza is anchored by Giant
Supermarket, Staples and JoAnn Fabrics. The 131,000 sq.ft. project has spaces
of 1,300 sq.ft., 2,500 sq.ft., 5,000 sq.ft. and 8,400 sq.ft. available for lease. Tennessee Brentwood- Cool Springs Pointe is anchored by Best
Buy, Sports Authority, Linens ‘N Things and DSW Shoe Warehouse. The
200,000 sq.ft. project has spaces of 1,800 sq.ft. to 16,000 sq.ft. available for lease.
Demographics include a 10-mile population of 183,838 earning $53,654 as the average
income. Murfreesboro- Irongate Village is anchored by Kroger.
The 70,619 sq.ft. project has spaces of 1,200 sq.ft. and 1,600 sq.ft. available for lease.
Demographics include a three-mile population of 43,000 earning $53,820 as the average
income. |