The Dealmakers Issue Number 4 for the week of February 6, 1998.

 

Retailers Looking for Space in The Midwestern Market

 

K&G Men's Center, Inc. trades as K&G Men's Center at 25 locations in GA, IN, MN, NJ, NY, NC, OH, PA, TX, VA and WA.  The men's apparel and accessories stores occupy spaces of 15,000 sq.ft. to 20,000 sq.ft. in freestanding facilities and strip centers.  Plans call for 12 openings in the coming 18 months.  Expansion will take place in the Chicago, IL; Detroit, MI and Los Angeles, CA markets.  Preferred demographics include a population of 250,000 within five miles earning $50,000 as the average income.  Leases running five years, with options, are typical.

  For more information, contact Jeff VanTosh, K&G Men's Center, Inc., 1750A Elsworth Industrial Boulevard, Atlanta, GA 30318; 404-351-7987, Fax 351-8038.

 

Premium Tobacco Stores does business as Cigarettes Cheaper! at 400 locations in AZ, CA, IL, IN, NM and OR.  The stores, selling tobacco products, occupy spaces of 800 sq.ft. to 1,200 sq.ft. in downtown store fronts and strip centers.  Preferred anchors include supermarkets.  Plans call for 50 openings in the coming 18 months.  Expansion will take place in CA, IL, IN and TX.  Preferred demographics include a population of 20,000 within one mile earning $50,000 as the average income.  Leases running three years are typical and the company prefers a vanilla shell.

  For more information, contact Jeffrey Ording, Premium Tobacco Stores, c/o Trammel Crow, Two Pierce Place, Suite 700, Itasca, IL 60013-3143; 630-285-2989, Fax 250-4008.

 

The Glik Co., Inc. trades as Glik's at 52 locations in IL, IN, MO and OH.  The stores, selling men's and women's apparel, occupy spaces of 4,000 sq.ft. in downtown store fronts and strip centers.  Plans call for eight openings in the coming 18 months.  Expansion will take place in the existing markets as well as in MI.  Preferred demographics include a population of 8,000 within three miles earning $25,000 as the average income.  Leases running three years are typical.

  For more information, contact Joseph Glik, The Glik Co., Inc., 3248 Nameoki Road, Granite City, IL 62040; 618-876-6717, Fax 876-7819.

 

Index Notion Co., Inc. trades as The Wooden Key at 24 locations in IL and IN.  The card and gift stores occupy spaces of 4,000 sq.ft. in regional malls, power and strip centers.  Plans call for two openings in the coming 18 months.  Expansion will take place in the existing markets.  Leases running 10 years are typical.

  For more information, contact James Sinclair, Index Notion Co., Inc., 887 West Carmel Drive, Carmel, IN 46032; 317-573-3990, Fax 573-3992.

 

Baker's Supermarkets trades as Baker's Supermarkets, Festival Foods, Food 4 Less and Food Saver at 18 locations in NE.  The supermarkets occupy spaces of at least 50,000 sq.ft. in power centers.  Preferred co-tenants include mass merchandisers, restaurants and banks.  Plans call for two openings in the coming 18 months.  Expansion will take place in the Midwestern region.  Preferred demographics include a population of 60,000 within three miles earning $50,000 as the average income.  Leases running 25 years are typical.

  For more information, contact Louis Stinebaugh, Baker's Supermarkets, 8420 West Dodge Road, Omaha, NE 68114; 402-397-4321, Fax 397-0668.

 

McKay Auto Parts, Inc. operates 14 locations in IL.  The automotive parts stores occupy spaces of 4,000 sq.ft. to 6,000 sq.ft. in freestanding facilities.  Plans call for 15 openings in the coming 18 months.  Expansion will take place in the existing market.  Preferred demographics include a population of 20,000 within five miles earning $30,000 as the average income.  Leases running 10 years are typical and the company cites AutoZone, Carquest and NAPA as competition.

  For more information, contact Jim McKay, McKay Auto Parts, Inc., PO Box 70, Litchfield, IL 62056; 217-324-3971, Fax 324-6385.

 

Winslows, Inc. trades as Winslows Hallmark at 15 locations in IA, IL, MI, MN and WI.  The card stores occupy spaces of 3,000 sq.ft. to 4,000 sq.ft. in specialty and strip centers.  Preferred anchors include mass merchandisers.  Plans call for two openings in the coming 18 months.  Expansion will take place in IA, MN or WI.  Preferred demographics include a population of 175,000 within five miles earning $35,000 as the average income.  Leases running five years are typical and the company prefers a vanilla shell.

  For more information, contact Thomas Sailstad, Winslows, Inc., PO Box 790, Duluth, MN 55801; 218-722-1557, Fax 722-9134.

 

Convenient Food Mart, Inc. trades as Convenient Food Mart at 329 locations in IL, IN, IA, KS, MO, NE, NY, OH, PA, and WV.  The convenience stores, which also sell gasoline, occupy spaces of 3,600 sq.ft. in strip centers.  Plans call for 20 openings in the coming 18 months.  Expansion will take place in the existing markets.  Leases running five years are typical and the company is franchising.

  For more information, contact John Call, Convenient Food Mart, Inc., 467 North State Street, Painesville, OH 44077; 216-639-6515, Fax 639-6526.

 

Chicago Clock Company operates four locations in IL.  The home furnishing stores occupy spaces of 2,000 sq.ft. in strip centers.  Plans call for two openings in the coming 18 months.  Expansion will take place in Gurnee and Libertyville, IL.  Preferred demographics include a population of 100,000 within three miles earning $40,000 as the average income.  Leases running 10 years are typical.

  For more information, contact Andrew Matthiesen, Chicago Clock Company, 431 West Ogden Street, Clarendon Hills, IL 60514; 708-986-9210, Fax 986-9224.

 

Boncosky Oil Co. trades as Food & Fuel, Mobil Mart, Phillips 66 and South Main Food & Fuel at nine locations in IL.  The convenience stores, which also sell gasoline, occupy spaces of 3,000 sq.ft. in freestanding facilities.  Preferred anchors include Wal*Mart.  Plans call for five openings in the coming 18 months.  Expansion will take place in Kane and McHenry counties in IL.  Preferred demographics include a population of 20,000 within two miles earning $35,000 as the average income.

  For more information, contact Ken Kearns, Boncosky Oil Co., 739 North State Street, Elgin, IL 60123; 847-741-2577, Fax 741-2590.

 

U.S. Factory Outlets, Inc. trades as U.S. Factory Outlets at 24 locations nationwide.  The stores, selling general merchandise at closeout prices, occupy spaces of 36,000 sq.ft. to 52,000 sq.ft. in regional malls, outlet, power and strip centers.  Plans call for eight openings during 1998.  Expansion will take place nationwide, exclusive of WA.

  For more information, contact Frederic Raiff, U.S. Factory Outlets, Inc., Seven Penn Plaza, New York, NY 10001; 212-563-3650, Fax 967-9872.

 

 

Who's Opening & Where

 

New World Coffee and Bagels, Inc. (212-343-0552) plans to open its first franchised store in Orlando, FL.  It is the company's first unit outside of the Boston-Washington, D.C. corridor.

 

Gateway 2000 (605-232-2000) recently opened a 10,775 sq.ft. Gateway 2000 Country Store at Shopper World Shopping Center in Framingham, MA.

 

Restoration Hardware (707-443-9397) plans to open an 8,650 sq.ft. store at Bradley Fair in Wichita, KS next month.

 

Jersey Mike's Franchise Systems, Inc. (908-528-7676) recently opened a restaurant in Chandler, AZ and recently signed a 10-unit agreement with Superior Sub Systems to open restaurants in NC and SC.

 

Eckerd Drug (813-399-6830) plans to open an 11,200 sq.ft. store in Orlando, FL during April and an 11,200 sq.ft. store in St. Petersburg, FL during May.

 

Goody's Family Clothing, Inc. (423-966-2000) plans to open a 32,956 sq.ft. store at Springdale Mall in Mobile, AL and a 24,940 sq.ft. store at Shillinger Towne Center in Mobile, AL during May.

 

Donna Karan International, Inc. (212-789-1500) plans to open a 16,000 sq.ft. DKNY store on Madison Avenue in Manhattan, NY during early 1999.

 

Cabela's, Inc. (800-237-4444) plans to open a 150,000 sq.ft. store in Owatonna, MN during April.  The company operates two other stores, which sell hunting, fishing and outdoor gear, in NE.

 

Sho-Pro, Inc. (630-553-0588) plans to open a seven screen movie theater at Factory Stores of America in Georgetown, KY during the Summer.

 

OfficeMax (216-921-6900) plans to open a store in a portion of a 74,000 sq.ft. former Max Club building in Gilroy, CA.  The balance of the space is expected to be leased to other retailers.

 

Target (612-304-6099) plans to build a store in downtown Minneapolis, MN after a court decision ruled in favor of the plan.  An appeal of that decision is planned, however.

 

 

Mergers & Acquisitions

 

The Glik Co. (618-876-6717) recently acquired six stores from Dancers, Inc. which is closing or selling all 27 of its apparel stores.  Five of the stores are located near Grand Rapids, MI and the sixth is located in Auburn, IN.  The company plans to reopen the stores as Glik's during April.

 

Trend-Lines Inc. (617-853-0900) recently agreed to buy 13 Nevada Bob's golf stores in New England for $5.5 million.  Trend-Lines plans to convert the stores into its Golf Day concept.

 

Scolari's Food and Drug Co. (702-331-7700) recently sold its supermarkets in Hanford and Corcoran, CA to Best Deal Food Co., Inc., a newly formed company that is purchasing grocery stores.  Scolari's, which operates 16 stores in NV and four stores in CA, sold the stores because they didn't fit with their other CA stores.  Terms of the deal were not disclosed.

 

Jewel-Osco (708-572-5180) recently purchased four Cub Stores in the Milwaukee, WI area from Supervalu, Inc. and a Pick 'n Save supermarket in Milwaukee, WI.  Jewel-Osco plans to remodel the stores and rename them to its concept.

 

Bruno's, Inc. (205-940-9400) recently sold 13 of its supermarkets in GA to Ingles Markets, Inc.  The stores are located in the GA towns of Dunwoody, Marietta, Alpharetta, Stockbridge, Mableton, Conyers, Fayetteville, Riverdale, Sandy Springs, Lake City, Smyrna, Atlanta and Lilburn.  Bruno's sold the stores because "they haven't garnered sufficient market share to allow the company to operate in a cost-effective manner."

 

Jreck Subs Group, Inc. (315-782-0760) recently signed an agreement to acquire Li'l Dino Deli and Grill, which operates 43 restaurants in GA, MD, NC, SC and VA.  The acquisition will give Jreck more than 350 units in 22 states.

 

 

Lease Signings

 

Mimco, Inc. (915-779-6500) leased four spaces to Western Beverages in El Paso, TX.

 

The Realty Brokerage, Inc. (732-517-0100) leased 9,000 sq.ft. to Tutor Time in Holmdel, NJ and 8,500 sq.ft. to Kiddie Academy in Middletown, NJ.

 

Boyd, Page & Associates (713-877-8400) leased 7,500 sq.ft. to Hollywood Video at Kingwood Glen Shopping Center in North Houston, TX.

 

Sigma National, Inc. (804-320-6100) leased 26,040 sq.ft. to PetsMart at Chesterfield Marketplace in Richmond, VA.

 

SCC Interests, Inc. (713-627-7460) leased 23,500 sq.ft. to OfficeMax in Dover, DE; 23,500 sq.ft. to OfficeMax in College Station, TX; 23,500 sq.ft. to OfficeMax in Gulfport, MS; 23,500 sq.ft. to OfficeMax in Lake Jackson, TX and 23,500 sq.ft. to OfficeMax in Auburn, AL.

 

Jeffrey Blank & Associates (215-887-5555) leased 74,000 sq.ft. to Frugal Fannies Fashion and K&G Menswear, 42,000 sq.ft. to Linens 'N Things and 42,000 sq.ft. to Chubb Computer Services at Marple Crossroads in Springfield, PA.

 

CB Commercial Real Estate Group, Inc. (408-453-7429) leased 23,573 sq.ft. to OfficeMax, 25,941 sq.ft. to PetsMart and 29,063 sq.ft. to Ross at Gateway Plaza in Santa Cruz, CA.

 

The Cafaro Company (330-747-2661) leased 1,000 sq.ft. to Edward Jones and 1,000 sq.ft. to Communications Depot at Connersville Plaza in Connersville, IN; 16,375 sq.ft. to Jo-Ann Fabrics at Maplecrest Plaza in Kokomo, IN; 18,000 sq.ft. to Jo-Ann Fabrics at Northwest Plaza in Muncie, IN and 2,130 sq.ft. to China Wok at Marion Plaza in Marion, OH.

 

Jeffery Realty (908-668-9600) leased 13,500 sq.ft. to Trader Joes in Westfield, NJ; 4,400 sq.ft. to Quick Chek in Lakewood, NJ and 10,500 sq.ft. to CVS Pharmacy in Lakewood, NJ.

 

Timber Development Corp. (404-257-9508) leased 37,000 sq.ft. to Food Lion at Hannah Plaza in Cresaptown, MD.

 

 

Food Tenants Hungry for Sites in The Midwest

 

Cooker Restaurant Corp. trades as Cooker Bar & Grille at 60 locations in FL, GA, IN, KY, MD, MI, NC, OH, TN and VA.  The upscale casual restaurants occupy spaces of 7,800 sq.ft. in freestanding facilities.  Preferred co-tenants include regional malls and office buildings.  Plans call for 25 openings in the coming 18 months.  Expansion will take place in the Midwestern and Southeastern regions.  Preferred demographics include a population of 100,000 within three miles earning $50,000 as the average income.  Leases running 10 years, with options, are typical.

  For more information, contact Todd Sorrin, Cooker Restaurant Corp., 5500 Village Boulevard, West Palm Beach, FL 33407; 561-615-6000, Fax 615-6009.

 

Sweets From Heaven operates 42 locations in AZ, FL, NH, NY, OH and PA.  The stores, selling bulk candy and related gift items, occupy spaces of 1,000 sq.ft. in regional malls.  Preferred anchors include Lord & Taylor, Macy's and Neiman Marcus.  Plans call for 18 openings in the coming 18 months.  Expansion will take place in the Midwestern and Western regions.  Preferred demographics include a population of 100,000 within three miles earning $40,000 as the average income.  Leases running five years are typical and the company, which is franchising, cites Sweet Factory as competition.

  For more information, contact Brian Davidoff, Sweets From Heaven, 3528 Mandeville Canyon Road, Los Angeles, CA 90049; 310-286-1700, Fax 471-7601.

 

Max & Erma's Restaurants operates 46 locations in IL, IN, KY, MI, NC, OH, PA and SC.  The family restaurants occupy spaces of 7,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls, power and specialty centers.  Preferred co-tenants include movie theaters, upscale retailers and office buildings.  Plans call for 10 openings in the coming 18 months.  Expansion will take place in the Midwestern and Southeastern regions.  Preferred demographics include a population of 50,000 within three miles earning $50,000 as the average income.  Leases running 20 years, with three five-year options are typical and the company, which is franchising, cites TGI Friday's, Ruby Tuesday's and Applebee's as competition.

  For more information, contact Christopher Holgate, Max & Erma's Restaurants, 4849 Evanswood Drive, Columbus, OH 43229; 614-431-5800, Fax 431-4100.

 

Buffalo Wild Wings operates 75 locations in CO, FL, GA, IL, IN and KY.  The restaurants occupy spaces of 6,000 sq.ft. in freestanding facilities and strip centers.  Preferred  co-tenants include movie theaters, video stores and supermarkets.  Plans call for 40 openings in the coming 18 months.  Expansion will take place in the Midwestern and Southern regions.  Preferred demographics include a population of 50,000 within three miles earning $35,000 as the average income.  Leases running seven years are typical and the company is franchising.

  For more information, contact Steve David, Buffalo Wild Wings, 600 South Highway 169, Minneapolis, MN 55426; 612-593-9943, Fax 593-9787.

 

Diamond Dave's Taco Co., Inc. trades as Diamond Dave's Taco at 36 locations in IA, IL, MN, MO, SD and WI.  The Mexican/American restaurants occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in freestanding facilities, regional malls, power and strip centers.  Plans call for eight openings in the coming 18 months.  Expansion will take place within the existing markets.  Leases running 10 years, with a five-year option, are typical.

  For more information, contact Stanley White, Diamond Dave's Taco Co., Inc., 201 South Clinton Street #281, Iowa City, IA 52240; 319-337-7690, Fax 337-4707.

 

Chicago Pizza Franchises, Inc. trades as Chicago Pizza at 11 locations in KY, IN and OH.  The pizza restaurants occupy spaces of 2,800 sq.ft. in downtown store fronts, freestanding facilities and strip centers.  Plans call for the opening of four units in the coming 18 months.  Expansion will take place in the Midwestern region.  Preferred demographics include a population of 20,000 within 10 miles earning $30,000 as the average income.  Leases running five years are typical and the company is franchising.

  For more information, contact R.L. McDonald, Chicago Pizza Franchises, Inc., 1111 North Broadway, Greenfield, IN 46140-1212; 317-462-9878; Fax 462-1706.

 

 

New Construction

 

Tri-W Corporation plans to break ground next month on phase I of Catalog Outlet Plaza in Wilimington, DE.  As the name suggests, the entire project will be tenanted by retailers who publish catalogs--a requirement to lease space at the site.  Phase I will contain 225,000 sq.ft. and will be anchored by a 17,000 sq.ft. L.L. Bean store and a 7,000 sq.ft. Coldwater Creek store.  Space, which can be customized to the retailer's needs, remains available for lease.  In the planning stages are two additional phases, each totaling 150,000 sq.ft.  The project is the retail component of the Riverfront Development Project, which also includes a minor league baseball stadium, a Big Kahuna theme restaurant and the Delaware Grand Exhibit Hall, which will host the Treasures of Nicholas and Alexandria beginning this Fall.  A Fall opening is also planned for Catalog Outlet Plaza.

  For more information, contact Bill or Ruth Wizner of Tri-W Corporation at (615-269-7021), Fax (269-7025).

 

National Realty & Development Corp. recently broke ground on The Marketplace at Manville in Manville, NJ.  The 268,314 sq.ft. project will be anchored by a 129,120 sq.ft. Wal*Mart, a 49,804 sq.ft. A&P Supermarket, a 46,000 sq.ft. Reading 12-Plex movie theater and a 3,342 sq.ft. McDonald's.  The project is expected to open during October.

  For more information, contact Clifford Simon of National Realty & Development Corp. at (800-932-7368).

 

Goldman Retail Associates is in escrow to acquire a 78,000 sq.ft. parcel of land at the southwest corner of Sherman Way and Woodman in Van Nuys, CA.  The site currently houses a Kentucky Fried Chicken restaurant, a Shell gas station and several local businesses.  The company plans to retain the KFC building and demolish the remaining businesses.  Retailers with space requirements from 5,000 sq.ft. to 21,000 sq.ft. can be accommodated, as can retailers seeking pad locations with or without drive through capabilities.  Demographics include a three-mile population of 320,463 earning $45,420 as the average household income and 51.4% of the population is Hispanic.  Retailers in the area include Ralphs Supermarket and Rite Aid.  More than 80,000 vehicles per day pass through the intersection.  New tenants' occupancy is expected by the fourth quarter.

  For more information, contact David Goldman of Goldman Retail Associates at (310-235-0444).

 

Block & Co., Inc. Realtors principals recently formed Glo-Rae to develop a 212,000 sq.ft. shopping center in Olathe, KS.  The project, which is in the planning stages, will consist of four retailers ranging from 25,000 sq.ft. to 45,000 sq.ft. as well as several outparcels for restaurants.  Ruby Tuesday's has already committed to the project.  Retailers in the area include Home Depot, Target and a 30-screen AMC movie theater.

  For more information, contact Steve Block at (816-753-1400).

 

The Mills Corporation recently closed on the land and broke ground on Katy Mills in Katy, TX.  The company also announced that it has received final approval from the City of Katy and Fort Bend County for the creation of a tax increment financing district for the mall.  The 1.6 million sq.ft. project will include 15 to 20 anchor tenants, theme restaurants, entertainment venues and over 200 specialty retailers.  The site is expected to open during Fall 1999.

  For more information, contact The Mills Corporation at (703-526-5000).

 

 

Exclusives

 

Investment Management Associates (305-661-0110) represents the following restaurants and recently completed transactions on their behalf throughout FL: Denny's, Ale House, Andalusia Bakery, Biga Bakery, Black Eyed Pea's, Cozzoll's Pizza, Dairy Queen, Dellces de France, Fish, Domino's Pizza, A-1 Chinese, McDonald's, Fishbone Grille, Giovanni's, House of Bagels, International House of Pancakes, Kenny Rogers Roasters, La Caretta, Latin Express Cafe, El Patacon, Mezzanotte, Miyako Japanese, Dunkin' Donuts, Pappa Riccoi's, Patty King Jamacian Bakery, Pizza Hut, Santiago's, Starr's Chicken Grill, Sub Express, Tal Jamaican Bakery, Michelle's Bakery and Taipei Gourmet Buffet.

 

Uniwest Realty, Inc. (703-671-2880) is the exclusive representative for Ruby Tuesday in the Washington, D.C.-Baltimore, MD corridor and the Eastern Shore of MD and DE.  The company plans to open four restaurants during Spring in Fredericksburg and Winchester, VA; Rehoboth Beach, DE and Martinsburg, WV.  As many as 10 Ruby Tuesday units are planned in the coming two years.  The company is also the exclusive representative for P.F. Chang's China Bistro, Sgt. Peppers Market Fresh Dining and HOPS Bar & Grill.

 

CB Commercial Real Estate Group (847-948-6907) has been named the exclusive leasing agent of the following shopping centers: Bloomingdale Court in Bloomingdale, IL.  The 582,000 sq.ft. project is anchored by Wal*Mart and TJ Maxx.  Merrillville Plaza in Merrillville, IN.  The 277,000 sq.ft. project is anchored by Toys 'R Us and JC Penney Home Store.  Addison Mall in Chicago, IL.  The 203,000 sq.ft. project is anchored by Montgomery Ward and Kids 'R Us.  Westport Commons in Chicago, IL.  The 178,000 sq.ft. project is anchored by a supermarket.  And a 15,000 sq.ft. retail center in Chicago, IL.

 

The Schultz Organization (732-855-0001) has been named the exclusive tenant representative by Tuesday Morning for NJ.  The 298-unit discount upscale gift store chain is seeking spaces of at least 5,000 sq.ft. in freestanding buildings and strip centers in areas having a minimum density of 100,000 people within a five mile radius.

 

 

Buyers & Sellers

 

CB Commercial Real Estate Group brokered the sale of Marycrest Center in Joilet, IL.  The 175,978 sq.ft. project is anchored by Dominick's Finer Foods.  The buyer was Infinity Property Management Corp. and the seller was a local investor.

  For more information, contact Richard Frolik, George Good, Lynne Brackett or George Capper at (312-861-7880).

 

GMS Realty LLC recently acquired the 289,292 sq.ft. Temecula Town Center in Temecula, CA; the 200,000 sq.ft. Greenway Park Plaza in Phoenix, AZ and the 95,000 sq.ft. Lemon Grove Plaza in San Diego, CA from Sun Oil for $67 million.  The purchase also included an 81,533 sq.ft. office building.

  For more information, contact Olivia Zdrahal at (619-794-9797).

 

Brandenberg Realty Associates, Inc. represented the seller in the sale of Eastchester Mall in Scarsdale, NY to HRE Properties, Inc. for $7.125 million.  The 70,000 sq.ft. project is anchored by Food Emporium, CVS Drug, Dress Barn and Friendly's Restaurant.

  For more information, contact Peter Brandenberg at (914-241-9170), Fax (241-9236).

 

Price Enterprises, Inc. recently acquired most of Stanford Ranch Crossing in Roseville, CA for $24 million.  The sale included four existing anchors, Sports Authority, Linens N Things, Crown Books and Ross, and two stores that will be constructed in the near future, Staples and Cost Plus.  The sale did not include Toys 'R Us and Costco.

  For more information, contact Price Enterprises, Inc. at (619-581-4530).

 

The Shopco Group, L.P. recently acquired Eastpoint Mall in Baltimore, MD.  The 860,000 sq.ft. project is anchored by Value City, JC Penney, Sears and Ames.

  For more information, contact Marc Yassky at (212-594-9400), Fax (594-9425).

 

The Mulkey Corp. has the listing to sell Kissimmee Manufacturers Outlet Mall in Kissimmee, FL.  The project is anchored by Nike and is located near Disney World.  The asking price is $15 million.

  For more information, contact T. Dan Mulkey at (813-888-9841), Fax (886-2792), E-mail (eastedie@aol.com).

 

Kitchell Development Company recently sold Meadows Marketplace Shopping Center in Douglas County, CO to a MA pension fund represented by INVESCO.  The 215,000 sq.ft. project is anchored by Home Depot, Bed Bath & Beyond, Only Navy and Party City.

  For more information, contact Dominic Petrucci at (602-264-4411).

 

800 JR Cigar, Inc. recently formed a subsidiary, JR Tobacco of Burlington, Inc., which has acquired the 100,000 sq.ft. former Burlington Mall and an adjacent parcel of land in Burlington, NC.  The company plans to use the site to house a new JR Outlet Center and shipping facility.  The company plans to renovate the site and open it during the third quarter of this year.

  For more information, contact 800 JR Cigar, Inc. at (1-800-JR-CIGAR).

 

Metro Commercial Real Estate, Inc. has the listing to sell a 17 acre parcel of land fronting Route 70 in Medford, NJ.  The site, which is zoned commercial, is adjacent to a planned ShopRite supermarket.

  For more information, contact Daniel Hughes at (609-866-1900), Fax (866-1611).

 

Greenwood LSH represented the seller of a new 7,100 sq.ft Hollywood Video store in Lakewood, OH.  The sale price was $1.675 million.  The company brokered the sale of a new 10,500 sq.ft Revco/CVS store in Charlotte, NC.  The store has a 20 year lease and was acquired by F&M Olivier for $1.78 million.

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

 

Lupo International Realty Investments, Inc. is seeking buyers for Golden Corral restaurants that it plans to develop this year in Dade, Broward, Palm Beach, Charlotte, Sarasota, Lee and Manatee counties in FL.  The units are approximately 10,000 sq.ft. and are valued between $1.6 million and $2.5 million.  The 15 year leases are guaranteed by the franchisee and contain rental increases every three years.

  For more information, contact Jack Lupo, Dale Goldstein or Harry Zuker at (561-362-9400), Fax (347-8308), E-mail (hzuker@juno.com).

 

Bradley Real Estate, Inc. recently acquired Spring Mall in Greenfield, WI from Spring Mall Associates LP.  The 180,000 sq.ft. project is anchored by a 77,000 sq.ft. Pick 'n Save supermarket, a 33,000 sq.ft. T.J. Maxx store and an 18,000 sq.ft. Walgreens Drug Store.  The company also recently acquired Park Plaza in Manitowoc, WI from Park Plaza Acquisition Corp. for $4.9 million.  The 108,000 sq.ft. project is anchored by a 45,000 sq.ft. Sentry Food Store.

  For more information, contact Bradley Real Estate, Inc. at (847-272-9800).

 

Cohen and Company, Inc. Real Estate brokered the sale of The Mall in Huntsville, AL.  The 488,000 sq.ft. project is anchored by a 50,000 sq.ft. Toys 'R Us and a 30,000 sq.ft. Books-A-Million.  The buyer was a TN-based developer and the seller was a NY-based shopping center owner.

  For more information, contact Helen Putterman or Richard Kaiser at (212-679-1222), Fax (679-1533).

 

Westfield America, Inc. recently acquired Crestwood Plaza Shopping Center in Crestwood, MO from Crestwood Plaza Shopping Center, L.L.C., for $106.4 million.  The 1,018,100 sq.ft. project is anchored by Dillard's, Famous-Barr and Sears and features 150 specialty stores.

  For more information, contact Randall Smith at (310-445-6822).

 

Hogan Burt Bishop has the listing to sell Royal Oaks of Bloomingdale in Brandon, FL.  The 89,272 sq.ft. project us anchored by a 46,422 sq.ft. Winn Dixie supermarket and a 6,720 sq.ft. Rite Aid store currently sub-leased to Fabric King.  The sale also includes a 21,293 sq.ft. outparcel.  The asking price is $5.825.

  For more information, contact Alfred Cuervo at (813-273-0373), Fax (222-0505).

 

Voit Commercial Brokerage has the listing to sell Gateway Plaza Shopping Center in San Diego, CA.  The 44,230 sq.ft. project is anchored by The Good Guys, Party City, Beverages and More and Baskin-Robbins.  The asking price is $9 million.

  For more information, contact Chris Loughridge or Jim McCullough at (619-453-0505), Fax (453-1981).

 

Marcus & Millichap has the listing to sell a 6,500 sq.ft. freestanding Blockbuster Video store in Sharonville, OH.  The tenant has a 10 year lease with three five-year options.  The asking price is $1.659 million.

  For more information, contact Thomas Jorgenson at (770-393-1700, Ext. 133), Fax (393-1738).

 

CenterAmerica is in the market to acquire neighborhood and community shopping centers in the Midwestern, Southeastern and Southwestern regions, with a particular emphasis on FL and the Gulf States.  Preferred projects should be anchored by supermarkets and have GLAs between 75,000 sq.ft. and 500,000 sq.ft.  The company will also consider large, non-grocery anchored community shopping centers.  Centers can be purchased separately or in a portfolio.  All cash transactions are possible.

  For more information, contact CenterAmerica at (713-660-4300), Fax (349-0901).

 

Clarion Partners is in the market to acquire super regional and regional shopping centers; community and neighborhood shopping centers with leading anchor tenants in their respective categories; power centers with a minimum amount of small shop space; and fashion-oriented specialty centers in affluent submarkets of metropolitan areas nationwide.

  For more information, contact Clarion Partners at (212-883-2502).

 

 

Kimco Realty Buys Price REIT

 

Kimco Realty Corporation (516-869-9000), the nation's largest publicly traded owner and operator of neighborhood and community shopping centers, and The Price REIT, Inc. (213-937-8200), one of the nation's largest power center REITS, recently approved a strategic merger to create one of the nation's largest retail shopping center REITs with a market capitalization of nearly $3 billion.  Under terms of the agreement, Kimco will acquire all the outstanding shares of The PRICE REIT for an aggregate consideration having a value of at least $45 a share, for a total of $535 million in stock.  In addition, Kimco will also assume all of Price REIT's outstanditng liabilities, including approximately $300 million of Price REIT debt to bring the total value of the transaction to approximately $835 million.  The Price REIT will be merged into a newly formed Kimco subsidiary and each share of Price REIT common stock will be converted into at least one share of Kimco common stock.  The Price REIT currently has interests in 37 projects totaling 7.3 million sq.ft. in AZ, CA, CT, FL, IL, KS, MD, MN, NJ, NY, NC, OK, TX, VA and WA.  Their centers have 540 leases and are 98% occupied.  Major tenants include Home Depot, Costco, HomeBase, Sports Authority, OfficeMax and Target.  Kimco currently has interests in 330 projects totaling 40.6 million sq.ft. in AL, AZ, AR, CA, CO, CT, DE, FL, GA, IL, IN, IA, KS, KY, LA, MD, MA, MI, MN, MS, MO, MT, NE, NH, NJ, NY, NC, OH, OK, PA, SC, TN, TX, UT, VA, WV and WI.  Their centers have 2,700 leases and are 90% occupied.  Major tenants include Kohl's Department Stores, Kmart, Wal*Mart, TJX Company stores, Kroger, Winn-Dixie and CVS Pharmacy.  Senior management of Price REIT, including President and Chief Executive Officer Joseph Kornwasser, Senior Executive Vice President and Chief Operating Officer Jerald Friedman and Executive Vice President of Finance Lawrence Kronenberg, will join Kimco's senior management team.  In addition, Kimco plans to create a new REIT that would invest in properties characterized by high credit quality tenants under long-term leases and finance such investments through non-recourse mortgages.  Kornwasser is expected to become chairman of the planned REIT and Kronenberg is expected to become the REIT's chief financial officer.  The merger is expected to close during the first half of 1998.

 

 

Winners & Losers in The Race for Christmas Sales

 

According to the bureaucrats on the Beltway, consumer prices for 1997 increased 1.7% and this factor needs to be considered when looking at retail sales.  To keep up with the consumer price increase, a retailer needs to show a sales increase of 1.7% at the minimum.  The Dealmakers reviewed December sales for retailers operating approximately 25,000 stores generating $44 billion in sales.  We categorized the chains into apparel, department and discount stores for the sake of comparisons.

 

Amongst apparel chains, the profound winners included the Buckle with a 28% increase in comp store sales, followed by Chico FAS with a 26% increase, Pacific Sunwear showing an 11% increase and The Gap bringing in a 10% increase.  Take note, these chains are carrying casual apparel catering for the most part to customers in the 15 to 25 age group.  In the department store arena, Kohl's was the leader garnering an 11.7% increase in comp store sales for December.  The only department store chain in our study that showed a decrease in comp sales was JC Penney with a 2.3% decline.  As to discount stores, Venture Stores was massacred with a 9% decrease in comp store sales.  Venture has spent the last three years attempting a comeback by tweaking its merchandise mix and price points.  Last year, the company sold 20 stores to Kmart raising $38 million and raised another $70 million from a sale/leaseback transaction on 40 stores.  Wall Street is cautious about Venture being able to meet its financial obligations this year.  Mac Frugal's also showed a decline in comp store sales, however, with its recent acquisition of Consolidated, the company will most likely see some major changes.  The leaders in the discount store category included Shopko with a 7.7% increase in comp store sales and Wal*Mart saw a 7% bump in comp store sales.

 

Apparel Retailers

The Buckle, Inc. (308-236-8491), which operates 200 stores selling casual apparel for young men and women in 26 states, reported that its December sales increased 38.8% to $46 million from $33.1 million during December 1996.  Comparable store sales over the same period increased 28.3%.

 

The Cato Corporation (704-554-8510) reported that its December sales increased eight percent to $72 million from $66.7 million with its comparable store sales up eight percent.  The company operates 697 stores women's specialty apparel stores trading as Cato Fashion/Cato Plus and It's Fashion! in 21 states.

 

Charming Shoppes, Inc. (215-638-6719), which operates 1,145 women apparel stores trading as Fashion Bug and Fashion Bug Plus in 43 states, reported that its December sales decreased slightly to $144.8 million from $145.8 million during December 1996.  Comparable store sales were flat.

 

Chico's FAS, Inc. (941-277-6200), a 141-unit chain of women's apparel stores operating in 33 states, reported that its total December sales increased 26.4% to $7.2 million from $5.7 million during December 1996.  Comparable store sales increased 25.9% for the month.

 

The Dress Barn, Inc. (914-369-4600) reported that its December sales increased 10% to $70.3 million from $64.1 million during December 1996.  Comparable store sales for the month increased six percent.  The company operates 682 stores trading as Dress Barn and Dress Barn Women in 43 states.

 

Edison Brothers Stores, Inc. (314-331-6000), which recently emerged from bankruptcy protection, reported that its total December sales fell 10.4% to $148.4 million from $165.7 million during December 1996.  Comparable store sales also declined 1.4% during the month.  By division, the company's apparel division sales slipped 11.5% with comp store sales off 2.6% and the footwear division sales fell 7.4%, but had a comp store gain of two percent.  The company operates more than 1,600 stores trading as JW/Jeans West, Coda, Oaktree, J. Riggings, REPP Ltd. Big & Tall, 5-7-9 Shops, Shifty's Bakers/Leeds and Wild Pair.

 

Filene's Basement Corp. (617-348-7100) reported that its net sales during December were up two percent to $78.7 million from $76.9 million during December 1996.  Comparable store sales, however, were flat.  The company operates 45 men's and women's apparel stores throughout the Northeastern and Midwestern regions.

 

Gantos, Inc. (616-949-7000), which operates 115 women's apparel stores in 23 states, reported that its December sales fell nine percent to $23.2 million and that its comparable store sales fell 10% for the month.

 

The Gap, Inc. (415-952-4400), which operates 2,130 stores nationwide, reported that its December sales increased 29% to $1.160 billion from $896 million during December 1996.  Comparable store sales for the month were up ten percent.

 

The Limited, Inc. (614-479-7000) reported that its December net sales increased 13% to $1.881 billion from $1.672 billion during December 1996.  Comparable store sales for the month increased six percent.  The company operates 3,842 stores trading as Express, Lerner New York, Lane Bryant, Limited Stores, Henri Bendel, Structure, Limited Too and Gaylan's.  The company owns 83% of Intimate Brands, Inc. which operates 1,827 stores trading as Victoria's Secret, Bath & Body Works and Cacique.  The company also owns 84% of Abercrombie & Fitch, which operates 157 stores.

 

Pacific Sunwear of California, Inc. (714-701-4000), which operates 273 stores selling apparel for teens and young adults in 38 states, reported that its December sales increased 47% to $43.4 million from $29.6 million during December 1996.  Comparable store sales for the month increased 11%.

 

Paul Harris Stores, Inc. (317-293-3900), a specialty retailer of private label women's apparel operating 276 stores in 28 states, reported that its December net sales increased nine percent to $43.5 million from $39.9 million during December 1996, but that its December comparable store sales fell eight percent.

 

Ross Stores, Inc. (510-505-4400) reported that its December sales increased 13% to $278 million from $246 million with its comparable store sales up seven percent for the month.  The company operates 326 stores nationwide.

 

S&K Famous Brands, Inc. (804-346-2500), a value-priced menswear chain operating 212 stores in 26 states, reported that its total December sales increased 10% to $22 million from $20 million during December 1996.  Comparable store sales for the month increased one percent.

 

Spiegel, Inc. (630-769-2596), which operates more than 500 specialty apparel stores trading as Spiegel, Eddie Bauer, Eddie bauer Home, AKA Eddie Bauer and Newport News as well as a catalog division, reported that its total December sales fell 17% to $434 million from $525.2 million during December 1996.  Comparable store sales in the Eddie Bauer division fell 10% during the month and there was a decline in total catalog sales.

 

Department Stores

Ames Department Stores, Inc. (860-257-2598) reported that its December net sales increased five percent to $386.4 million from $368 million with comparable store sales up 4.5% for the month.  The company operates 298 stores in 14 Northeastern states.

 

Carson Pirie Scott & Co. (414-347-5306) reported that its December sales increased 2.8% to $214.6 million from $208.7 million during December 1996.  Comparable store sales for the month increased 3.5%.  The company operates 52 stores trading as Carson Pirie Scott, Bergner's and Boston Stores in IL, IN, MN and WI.

 

Dayton Hudson Corporation (612-370-6948) reported that its net retail sales for December increased 11.2% to $4.71 billion from $4.236 billion during December 1996.  Comparable store sales for the month increased 6.4%.  By division, Mervyn's total sales for December increased 0.6% with its comparable store sales up 6.9%; the Department Store Division's total sales for the month increased 4.1% with comparable store sales up 5.6%; and Target's total sales for the month increased 14.7% with comparable store sales up 6.4%.  The company operates 1,135 stores in 39 states.

 

The Elder-Beerman Stores Corp. (937-296-2700), which recently emerged from bankruptcy protection, reported that its December total sales increased 0.4% to $110.8 million and the its comparable store sales were up 3.7% for the month.  By division, its department store total sales increased 0.4% with comparable store sales up 3.8%; total sales in its Bee-Gee shoe division increased 1.2% for the month with comparable store sales down one percent.  The company operates 48 department stores, 61 shoe stores and two furniture stores in IL, IN, KY, MI, OH, WV and WI.

 

Gottschalks, Inc. (209-434-8000), which operates 37 department stores and 22 specialty apparel stores in CA, NV, OR and WA, reported that its December sales increased 8.1% to $89.9 million from $83.2 million during December 1996.  Comparable store sales for the month increased 2.7%.

 

Hills Stores Company (781-821-1000) reported that its December total sales fell 2.7% to $324.3 million from $333.3 million during December 1996.  Comparable store sales for the month increased 2.4%.  The company operates 155 stores in NY, IN, OH, PA and WV.

 

J.C. Penney Company, Inc. (972-431-1000) reported that its December sales fell 1.3% to $2.442 billion from $2.475 billion during December 1996.  Comparable store sales fell 2.3% for the month.

 

Kohl's Corporation (414-703-7000) reported that its December sales increased 29.9% to $566.1 million from $435.9 million during December 1996.  Comparable store sales increased 11.7% during the month.  The company operates 182 stores.

 

The May Department Stores Company (314-342-6300) reported that its December sales increased 6.5% to $2.44 billion from $2.29 billion during December 1996.  Comparable store sales for the month increased 4.8%.  The company operates 369 department stores in 30 states.

 

Sears, Roebuck & Co. (847-286-0545) reported that its total domestic store revenues for December increased 5.4% to $4.51 billion from $4.28 billion during December 1996.  Comparable domestic store sales increased 4.5% for the month.

 

Discount Stores

Consolidated Stores Corporation (614-278-6622), which operates 1,985 stores trading as KB Toys, KB Toy Works, KB Toy Outlet, Odd Lots and Big Lots, reported that its December retail sales increased 9.8% to $711.7 million from $648 million during December 1996.  Comparable store sales for the month increased 3.3%.

 

Dollar General Corp. (502-237-5444) reported that its total retail sales during December increased 25% to $433 million from $346.5 million during December 1996.  Comparable store sales for the month increased 8.1%.  The company operates 3,156 stores in 24 states.

 

Kmart Corporation (248-643-1000) reported that its December sales increased 3.4% to $5.175 billion from $5.003 billion during December 1996.  Comparable store sales increased 2.9% for the month.  The company operates 2,136 stores nationwide.

 

Mac Frugal's Bargains Close-Outs, Inc. (310-537-9220), which operates 326 stores trading as Pic 'N' Save and Mac Frugal's Bargains Close-Outs in 18 states, reported that its December sales fell 4.2% to $144 million from $150.3 million during December 1996.  Comparable store sales were down 5.5% for the month.

 

ShopKo Stores, Inc. (414-496-7234) reported that its consolidated sales for December increased 13.1% to $402 million from $355.4 million during December 1996.  Comparable store sales for the month were up 7.7%.  The company operates 149 stores in 17 states primarily in the Midwestern, Western Mountain and Pacific Northwest regions.

 

Value City Department Stores, Inc. (614-471-4722) reported that its December sales increased five percent to $159.2 million from $151.6 million during December 1996.  Comparable store sales increased 4.6% for the month.  The company operates 93 stores throughout the Eastern, Midwestern and Southern regions.

 

Venture Stores, Inc. (314-281-5500), which operates 93 stores in nine states, announced that its total December sales fell 24.2% to $208.5 million and the its comparable store sales dropped nine percent for the month.

 

Wal*Mart Stores, Inc. (501-273-4000) reported that its December net sales increased 16.8% to $16.5 billion from $14.1 billion last year.  Comparable store sales were up seven percent for the month.

 

 

Lead Sheet

 

Big "M", Inc.

dba Afaze

Kenneth Mandelbaum

12 Vreeland Avenue

Totowa, NJ 07512

201-890-0021, Fax 890-4075

 

Accessories

The eight-unit chain operates locations in CT, NJ and NY.  The stores, selling men's and women's accessories, occupy spaces of 800 sq.ft. to 1,000 sq.ft. in regional malls.  Preferred anchors include major department stores.  Plans call for the opening of four units in the coming 18 months.  Expansion will take place in CT, NJ, NY and PA.  Preferred demographics include a population of 100,000 within three miles earning $25,000 as the average income.  Leases running 10 years are typical and the company cites Claire's as competition.