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Issue Number 5
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The
Dealmakers Issue Number 5 for the week of February 13, 1998. My Way by
Ted Kraus By now,
almost everyone has heard that HomePlace went "11," which while I
personally do not wish 'em bad, at least the event made me feel better. Ann and I have been in dozens of their
stores and I will admit that aesthetics wise, they usually outclass Linens N
Things and Bed, Bath & Beyond; however, their prices and merchandise
quality was both higher and lower than their competitors, in that order, so we
could never figure out why people shopped there. We also had problems understanding why developers did deals with
them, since their credit was low and their leasehold requirements were
high. The only legitimate reason I ever
heard was "they pay high rents."
Of course if they don't last, what difference does that make, but in
todays world, does anyone really expect a tenant to be there 'til the end of
their term? Now that
they are in "11," I'm sure they're renegotiating rents, bringing 'em
in line with what it should have been.
Guess that's one way to be a tough negotiator--go bankrupt. I have an
ongoing bet with a friend on which retailer goes "11" next. He contends Loehmann's is the next to go, I
contend it will be Service Merchandise.
Beside having bets on who goes machulla next, we debate "why." He says it's because America is over
retailed (we went from 10 sq.ft. of retail space per person in 1980 to 18
sq.ft. in '97). While I admit that has
some affect, the consumer is buying more today than in 1980 (that's taking into
account inflation). I say the reason
for the bankruptcies is the retailer, as a rule, has no clue what they are
doing and they are not merchants. I
guess we'll never really resolve the question, but it's fun debating it. If you have someone to nominate to this hall
of shame, e-mail me your recommendation (I won't use your name if we print it)
to: ted.kraus@dealmakers.net. On a
different topic, I called a management/brokerage company regarding a shopping
center they manage and lease for a tenant we represent. They were just short of being rude (and our
client is a rated, desirable tenant) and quoted a rent that was 50% over
market. I spent an hour trying to do
some sort of a deal and finally gave up. Two weeks
later, by pure chance, I bumped into the owner of the center and asked why he
was being so difficult. He explained he
had no idea what I was talking about, was willing to make any reasonable deal
and he never heard about my offer. As
we discussed the subject more, a lot of what he said made no sense until his
last statement which was the management company has been trying to acquire the
center for the last eight months at an extremely low price, with their
contention being the center was extremely difficult to lease. I don't think what the management company
was doing is illegal, but it definitely is immoral. They're trying to devalue the property so they can buy it cheap
for themselves. Rambling on;
I received a call from an owner of a freestanding building that is vacant. He wanted to know if I had a buyer for it
and I responded no, but gave him several retailers that might be interested in
leasing it. He explained that he did
not want a lease, he was selling only.
I responded that if he leased it, he could then sell it to an investor
instead of an end-user which is what he's been trying to do for the last year
to no avail, and get more money because there would be an income stream. I was then told that wouldn't work, since
they could never get enough in rent to justify the asking price of the
property. Now I'm not too bright, but
if it isn't worth that much as a lease, it's not worth that much for a
sale. The seller's contention was an
end user would pay more, I contend end users are not that stupid. Oh, did you
hear that the Crazy Eddie (electronics) chain, which went out of business when
it was discovered the founder was playing with the books (similar to Phar-Mor),
is being started up again by one of Eddie's relatives. I'm willing to bet that some developer will
provide 'em with TI and what's worse, some financial institution will provide
the money. I guess as an industry or
nation we never learn. Since the
beginning of the year I've been bombarded by local and regional newspaper
reporters wanting to know my predication on the economy for '98 and also how I
felt the Internet will affect retailing into the year 2000 (because we publish,
I'm considered an expert. Scary, isn't
it?). Since I had to spend time
thinking these questions through, I hate to waste the thoughts, so let me
bottom line it here (not that you care, but I have to fill the page). First, 1998
will be a good year, not as great as '97, but good. We'll start to see some cracks appear on the horizon with more
retailers declaring bankruptcy (and as I've said many times before, not because
of the economy but because the retailer(s) are incompetent) and while consolidation
of developers will continue, many/most of the REITS will see a weakening of
profits as some of their poor acquisitions start to have impact. It won't be until 1999 or beginning of 2000
(god that's scary, 2000 is less than two years off), that it all hits the fan,
but there won't be chaos for at least 18 to 24 months which in the real estate
cycle is a lifetime away. Developers
and retailers will begin to see a high failure rate in many/most of their
entertainment concepts for malls; the public is getting bored with what's out
there. As far as
retailing and the Internet, I feel that while the local store will be around
longer than you and I, the competent retailer (isn't that an oxymoron?) will
have both storefronts and Home Pages.
The Home Page will be used for "information gathering" by the
consumer and price comparisons; the store front will be where the major
purchases will be done. To a large
extent, the Internet is the world's greatest equalizer and the Net will enable
the sharp local merchant to compete with the big boys. The Internet will have a more severe impact
on mail/phone orders than the conventional retailer. In the end the Net will end up complementing traditional
retailing, not competing against it. Other cracks
in the wall are appearing because of the prolonged boom the economy has been
enduring. I've noticed that a lot of
service companies (mortgage institutions, title companies, advisory firms,
etc.) are beginning to get desperate for "deals" or work. The reason being simple, over the last three
years they've built up a large overhead and need work to pay for it (profits
are secondary to cash flow). The same
is true for some of the large institutional advisory organizations that are
acquiring "product," doing a quick fix and flipping. It's getting harder and harder to find and
therefore more difficult to justify their $250,000 salary and bonuses. Tenants
Seeking Sites in The Western Region Howard &
Phil Enterprises, Inc. trades as Howard & Phil's Western Wear at 31
locations in CA, NV and UT. The stores,
selling Western apparel, occupy spaces of 3,000 sq.ft. to 3,500 sq.ft. in
regional malls. Preferred anchors
include Nordstrom, Macy, Sears, JC Penney and Robinson-May. Plans call for as many as six openings in the
coming 18 months. Expansion will take
place in the Western region. Preferred
demographics include a population of 100,000 within five miles earning $30,000
as the average income. Leases running
10 years are typical. For more information, contact John McKeon,
Howard & Phil Enterprises, Inc., 19415 Soledad Canyon Road, Canyon Country,
CA 91351; 805-252-8931, Fax 252-0949. General
Industries does business as Rug & Home Accessories at 10 locations in
CA. The home furnishing stores occupy
spaces of 10,000 sq.ft. in freestanding facilities and strip centers. Plans call for three openings in the coming
18 months. Expansion will take place in
the existing market. The company
prefers to purchase its locations. For more information, contact Mr. Itzshah,
General Industries, PO Box 10866, Costa Mesa, CA 92627; 714-557-0402. Shop N Go,
Inc. trades as Shop N Go at 10 locations in CA. The convenience stores occupy spaces of 2,000 sq.ft. to 3,000
sq.ft. in freestanding facilities and strip centers. Preferred anchors include Wal*Mart. Plans call for two openings in the coming 18 months. Expansion will take place in the existing
market. Leases running 10 years are
typical and the company, which is franchising, cites Circle K and 7-11 as
competition. For
more information, contact John Shehadey, Shop N Go, Inc., 405 North Palm
Avenue, Fresno, CA 93701; 209-266-5055, Fax 266-8517. PWS, Inc.
trades as Lauderland at 2,000 locations throughout the Western region. The laundromats occupy spaces of 1,800 sq.ft.
to 4,000 sq.ft. in downtown store fronts, freestanding facilities and strip
centers. Preferred anchors include
supermarkets. Plans call for 12
openings in the coming 18 months.
Expansion will take place in CA and NV.
Preferred demographics include a population of 25,000 within one mile
earning $25,000 or less as the average income.
Leases running 10 years, with three five-year options, are typical. For more information, contact Gary Owca,
PWS, Inc., PO Box 2444, South San Francisco, CA 94083; 415-871-0300. Grill
Concepts operates 10 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 five openings in the coming 18 months. Expansion will take place in CA, MD, VA and
Washington, D.C. Leases running 15
years are typical. For more information, contact Robert Chais,
Grill Concepts, 11661 San Vincente Boulevard 404, Los Angeles, CA 90049; 310-820-5559,
Fax 820-6530. The Rice
Garden, Inc. trades as The Rice Garden at 28 locations in CA, IL, KS, NV and
NY. The Chinese restaurants occupy
spaces of 600 sq.ft. to 800 sq.ft. in food courts of regional malls and 1,000
sq.ft. to 2,000 sq.ft. at specialty centers.
Preferred anchors include supermarkets and entertainment centers. Plans call for as many as 15 openings in the
coming 18 months. Expansion will take
place in CA, IL, KS and NV. Leases
running 10 years are typical and the company cites Panda Express as
competition. For more information, contact Bing Yang, The
Rice Garden, Inc., 1000 South Fremont Avenue, Alhambra, CA 91803; 818-281-2392,
Fax 281-6692. Taco Time
International, Inc. trades as Taco Time at more than 300 locations throughout
North America, Greece and Japan. The
Mexican fast food restaurants occupy spaces of 2,100 sq.ft. in freestanding
facilities and regional malls.
Preferred anchors include Wal*Mart and supermarkets. Plans call for 26 openings in the coming 18
months. Expansion will take place in
the Western region. Preferred
demographics include a population of 10,000 within one mile earning $30,000 as
the average income. Leases running 15
years are typical and the company, which is franchising, cites Taco Bell as
competition. For more information, contact Bob Newton,
Taco Time International, Inc., 3880 West 11th Avenue, Eugene, OR 97402;
541-687-8222, Fax 343-5208. Selma's
Cookies operates five locations in FL, MD, NV and NY. The gourmet cookie stores occupy spaces of 700 sq.ft. in regional
malls. Preferred anchors include Lord
& Taylor. Plans call for two
openings in the coming 18 months.
Expansion will take place along the West Coast. Leases running 10 years are typical and the
company cites Mrs. Fields as competition. For more information, contact T.J. Healey,
Selma's Cookies, PO Box 160756, Altamonte Springs, FL 32714; 407-774-9433, Fax
774-9817. Harman
Management Corp. does business as Kentucky Fried Chicken at 264 locations in
CA, CO, OR, UT and WA. The fast food
restaurants occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in freestanding
facilities and power centers. Preferred
anchors include Kmart, Wal*Mart and supermarkets. Plans call for six openings in the coming 18 months. Expansion will take place in Northern CA, CO
and WA. Preferred demographics include
a population of 30,000 within 1.5 miles earning $40,000 as the average
income. Leases running 20 years are
typical. For more information, contact Karen Bellini,
Harman Management Corp., 199 First Street #212, Los Altos, CA 94022;
415-941-5681, Fax 948-7532. The Taco
Maker operates more than 130 locations in 32 states. The Mexican fast food restaurants occupy spaces of 300 sq.ft. to
3,000 sq.ft. in freestanding facilities and regional malls. Preferred anchors include supermarkets. Plans call for as many as 100 openings in
the coming 18 months. Expansion will take
place in the Eastern and Western regions.
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, which is
franchising, cites Taco Bell and Taco Time as competition. For more information, contact Corey King,
The Taco Maker, PO Box 9519, Ogden, UT 84409; 801-621-7486, Fax 621-0139. Mergers
& Acquisitions Gart Sports
Company (303-861-1122) and Sportmart, Inc. recently completed its merger. Under the final agreement, Sportmart has
been acquired by Gart Bros. Sporting Goods, making Gart Sports Co. the second
largest full-line sporting goods retailer in the nation with 123 stores in 16
states. Since the companies do not
overlap markets, no store closings are anticipated. Richfood
Holdings, Inc. (410-455-5400) has agreed to acquire Farm Fresh, Inc. for $220
million and the assumption of $30 million in leases. To facilitate the deal, Farm Fresh declared bankruptcy and the
court's approval will be needed to complete the deal. Completion of the deal is expected by the end of this month. Montgomery
CV Realty Trust (610-825-7100) recently announced that CV Reit, Inc. has
acquired the company and interests in 10 properties. Louis Meshon, Sr. has been named chief executive office of CV
Reit, Inc. Regal
Cinemas (423-922-1123) plans to sell its company to buyout firms Hicks, Muse,
Tate & Furst, Inc. and Kohlberg Kravis Roberts & Co. for $1.5
billion. The transaction will create a
company with more than 5,300 screens at 727 theaters in 35 states, or approximately
18% of all U.S. screens. The Regal
Cinemas screens will be combined with the companies' two separate
acquisitions. KKR recently agreed to
acquire Act III Cinemas and Hicks Muse recently agreed to acquire United
Artists Theatre Group. The Regal Cinema
deal is expected to be completed during the middle of the year. CKE
Restaurants, Inc. (714-778-7136) plans to acquire 557 Hardee's restaurants from
its largest franchisee Advantica Restaurant Group, Inc., formerly Flagstar
Cos., for $415 million in cash and debt.
The deal will give CKE more control over its 3,000 unit Hardee's chain,
which it acquired last July. After the
deal is closed next month, CKE will own 1,424 units and franchise and license
another 1,624 units. Regency
Realty Corp. (904-356-7000) recently agreed to acquire Midland Group and 21 of
its shopping centers for $253 million. Weingarten
Realty Investors (713-866-6000) and Miller Development Inc. (303-799-6300)
recently formed a new company, Miller Weingarten Realty Co., to develop and
acquire shopping center in CO, MT, NE, UT and WY. The
Andersons, Inc. (419-891-6417) recently signed a letter of intent to purchase
Crop & Soil Service, Inc., a three-unit chain of farm centers with stores
in Fremont, Gibonsburg and Fostoria, OH.
The Andersons currently operate 12 farm stores in MI and OH. AutoZone,
Inc. (901-495-6500) plans to acquire the 112-unit Auto Palace chain for $55
million. Auto Palace has stores in CT,
MA, NH, NY, RI and VT. The stores will
be converted to AutoZone units. The
transaction is subject to regulatory approval. Wild Oats
Markets (303-689-9258) recently acquired Sunshine Grocery in Nashville,
TN. Wild Oats plans to retain the
store's present name and expand it. Bruno's
(205-940-9400) recently signed a definitive agreement to sell the stock of Seessel
Holdings, Inc., a 10-store supermarket chain operating in the Memphis, TN
market, to Albertson's for $88 million.
Albertson's plans to retain the Seessel name. GB Food
Corporation (805-898-7143), operator of Green Burrito Mexican quick-serve restaurants
and Timber Lodge Steakhouse, Inc. (612-929-9353) recently executed a definitive
agreement and plan of merger pursuant to which GBFC will acquire 100% of the
outstanding capital stock of Timber Lodge.
The deal is expected to close during April. Albertson's,
Inc. (208-385-6200) recently entered into a definitive agreement with Buttrey
Food and Drug Stores, providing for the acquisition of the company by
Albertson's. Buttrey operates 43 stores
in MT, ND and WY. Harvest
Restaurant Group, Inc. (210-824-2496) recently signed a letter of intent to
acquire an 80% interest in 25 Red Line franchised restaurants. Red Line is a franchiser of gourmet
hamburger restaurants that operates in small kiosks primarily in South TX. Harvest plans to add a Harvest Express to
the 25 acquired locations. Closings Rickel Home
Centers, Inc. (908-668-7000) recently closed its stores in Brick, Dover,
Hazlet, Howell and Middletown, NJ. The
company, which at one time operated 92 stores, only has five left and they are
expected to close as soon as all of the merchandise is sold. One Price
Clothing Stores, Inc. (864-433-8888) plans to close 75 low volume,
underperforming stores by the end of the 1998 fiscal year. The company currently operates 688 stores in
27 states, Puerto Rico and the U.S. Virgin Islands. Mervyn's
(612-370-6948) recently closed its 80,000 sq.ft. department store at Perris
Town Center in Perris, CA. The company
had operated the store since 1992 and closed it because it was performing below
the company's expectations. In
addition, Mervyn's closed its stores in Boulder, CO and two stores in Houston,
TX. Tenant
Mix--Not So Traditional Today by Alan
Alexander In the past
shopping center tenant mix was somewhat predictable and there were some fairly
consistent guidelines as to what constituted good tenant mix for the various
types of shopping centers. We would
never have mixed discount merchandise with traditional priced merchandise. However,
over the years we are seeing those guidelines blurred and combinations that
would have been unthinkable just a few years ago. We see Kmart, Wal*Mart and Target as anchor tenants in what has
been, in the past, traditional regional shopping centers serving middle income
neighborhoods. As always, these changes
are driven by the buying public and are not just dreamed up by retailers
anxious to expand or leasing agents trying to make creative deals. In the past
several years the discount, off price, outlet type of centers were driving the
development portion of our industry.
Coincidentally, during much of that time the country was experiencing a
recession. In our various studies of
the buying public in this type of shopping center we came to understand that
the shopper at the discount type of shopping center was not the low income
population, but much more the middle income shopper out for better prices. At the same
time that all of this was taking place, the department store segment of the
retail market was going through a major consolidation and disappearing
act. We quickly found regional shopping
centers with two anchor stores owned by the same company. That probably would not have been a great
problem, especially in very successful regional shopping centers, but the fact
that some of the large department stores were shutting their doors left a much
smaller pool of department stores to choose from. The strength
of and interest in non-anchor mass merchandisers also came to the attention of
major shopping centers and we quickly found discount merchandisers becoming
part of the traditional mix. The first
reaction to this by many was that shopping center owners and developers had
gone out of their minds just because they had a larger store that was available. However,
when one reflects on what has happened in the industry over the past several
years, the mixing of traditional and discount merchandisers is not that much of
transformation for us to bear. This mix
allows the customer the option of buying both traditional and discount merchandise
in the same shopping trip without traipsing all over town to do so. It is not unlike a major department store
that has a bargain basement. The same
shopper could well shop both areas in one trip and, hopefully, spend more money
in the store and fulfill his or her needs at the same time. There is
little doubt that the addition of discount merchandise to our traditional
tenant mix will cause some additional thinking about the rest of the tenant
mix. Some small shops do not have the
ability to compete favorably against strong discounters. The small shop, on the other hand, most
often can compete on the basis of service and on the basis of product
knowledge. It is important that the
interview with prospective smaller tenants take into account the need for them
to fully understand their relationship with the anchor tenants and how they may
best compete and survive. The addition
of discount anchors to the traditional shopping center is not, in and of
itself, any sort of problem. It is, in
fact, giving the buying public a broader price range to choose from in one
shopping trip. This should not detract
from the drawing power of the shopping center, and in many cases, may well add
to the drawing power as discount shoppers have traditionally had to go further
to get to the discount stores. The real
test of our skills will be in working with the smaller merchants to be sure
they fully understand that their job is not to try to take on the anchor
tenants from a price point of view, but rather to fully understand just how the
anchor tenants operate and then fill in the blanks with service and product
knowledge. It will also be incumbent
upon the developers and shopping center owners to spend some time with existing
retailers explaining the reasons for the changes and to assure them that this
is not the end of the road for the small shops, but an opportunity to make some
changes that will help to assure that they continue to do well in the new
environment. Developers
and owners of shopping centers have been very adept at working with change over
the years. They have dealt with
increasing larger shopping centers, enclosing of malls, the advent of the
discount centers, specialty centers, big box centers, lifestyle centers and the
mixing of types of retailers that at one time appeared to be diametrically
opposed, and have survived all of this quite well. This current round of changes is likely to produce more
opportunities than problems as long as we go to the trouble to fully understand
that everything we do is market driven and if our plan is to respond to the
market we are likely to stay pretty much on target. Alan
Alexander is a Senior Vice President of Woodmont Real Estate Services, Inc.,
1050 Ralston Avenue, Belmont, CA 94002; 707-224-5126, Fax 224-5018. Temporary
Tenants Looking for Space Nationwide The Book
Market, Inc. trades as Book Market at more than 50 locations nationwide. The book stores occupy spaces of 7,000
sq.ft. to 30,000 sq.ft. in freestanding facilities, regional malls and strip
centers. Plans call for 80 openings in
the coming 18 months. Expansion will
take place nationwide. Leases running
three months, with month-to-month options, are typical. For more information, contact John Raines,
The Book Market, Inc., 5915 Casey Drive, Knoxville, TN 37909; 423-558-8187, Fax
558-6249. Elope, Inc.
trades as Elope at 18 locations in CA, CO, FL, ID, LA, MA, NY, VT and WA. The company sells hats while using cart
spaces running 32 sq.ft. in downtown store fronts in tourist locations. Plans call for six openings in the coming 18
months. Expansion will take place
nationwide. Preferred demographics
include a population of 200,000 within 20 miles earning $30,000 as the average
income. The company operates both
year-round stores and stores that are open during November and December and the
average lease runs six months. The
company is franchising. For more information, contact Kevin Johnson,
Elope, Inc., 5280 Redondo Circle, Colorado Springs, CO 80918; 719-590-9181, Fax
590-9085. Mann, Inc.
does business as The Herb Gallery, The Book Gallery and African Heritage
Gallery at four locations in TN. The
stores occupy spaces of 750 sq.ft. to 4,500 sq.ft. in kiosks and strip centers. The Herb Gallery stores cater to the well
educated consumer interested in healthy living. The Book Gallery stores cater to the value-oriented woman 25 to
54 years old, and the African Heritage Gallery caters to African-American
women, aged 25 to 54 years old. Growth
opportunities are sought in AL, KY and TN.
Preferred demographics include a population of 50,000 within five miles
earning $40,000 as the average household income. The company typically signs leases running three years for its
permanent stores and one year for its temporary stores. For more information, contact Paul Mann,
Mann, Inc., 5326A Mountain View Road, Antioch, TN 37013; 615-731-1900, Fax
731-4313. The Game
Keeper operates more than 70 stores in CA, FL, IL, MD, MA, NJ, NY, NC, OH, OR,
SC, VA and WA. The stores, selling
board and box games primarily for adults (chess, backgammon, etc.), occupy
spaces of 900 sq.ft. in downtown store fronts and regional malls. Preferred anchors include Nordstrom. Plans call for as many as five permanent
store openings and 25 temporary store openings in the coming 18 months. Expansion will take place in FL, Detroit, MI
and Dallas and Houston, TX. Preferred
demographics include a population of 200,000 within 15 miles earning $40,000 as
the average income. For more information, contact Carolle
Etheridge, The Game Keeper, 99 Aero Camino, Goleta, CA 93117; 805-961-1166, Fax
685-4263. Crispies
Company, Inc. does business as Peace Frogs at 40 locations in DE, MD, MA, MI,
MS and VA. The contemporary clothing
stores occupy kiosk spaces running 500 sq.ft. to 1,000 sq.ft. in regional
malls. Preferred anchors include Macy's
and Nordstrom. Plans call for 15
openings in the coming 18 months.
Expansion will take place in FL.
Preferred demographics include a population of 250,000 within 10 miles
earning $60,000 as the average income.
The company operates its stores from April to September and during
November and December. Leases running
two to three years are typical and the company is franchising. For more information, contact Catesby Jones,
Crispies Company, Inc., 1073 Wisconsin Avenue NW, Washington, D.C. 20007;
202-625-2089, Fax 337-8396. Autographs
Plus, Inc. operates four permanent and three seasonal locations in AL, FL, KS,
LA, MD and SC. The stores, selling
autographs of heros, legends and superstores from sports, television, the
movies and music, occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in power
centers. Plans call for at least five
openings in the coming 18 months.
Expansion will take place in CA, IL, MD, MA and PA. Leases running three to five years are
typical and the company operates its temporary stores during November and
December. The company also relies on
tourist, convention and destination traffic. For more information, contact Mike Wascher,
Autographs Plus, Inc., 3220 Partridge Road, Montgomery, AL 36111; 334-384-9598,
Fax 284-3873. Cowboy Chuck
Company, Inc. trades as Chickies at locations in LA, KS, PA, OH, WV, CA, NY,
NJ, FL, MD, IL, IN, OK, TN, MD, TX, NC, MN, IA, GA and MS. The stores, selling whimsical cartoon
pictures, wall hangings and accessories, occupy spaces of 65 sq.ft. in regional
malls. Preferred anchors include JC
Penney. Plans call for 50 openings in
the coming 18 months. Expansion will
take place in the Pacific Northwestern region.
Preferred demographics include a population of 200,000 within 18 miles
earning $39,000 as the average income.
The company operates 15% of its stores year round with the remaining 85%
operated during November and December.
Leases running three months are typical. For more information, contact Michael
Weissenborn, Cowboy Chuck Company, Inc., 11991 Discovery Court, Moorpark, CA
93021; 805-378-6400, Fax 378-6413. Activate,
Inc. trades as Activate Cellular at 58 locations in CA, CO, MI, NC, OH, OR, SC
and WA. The stores, selling wireless
telephones, pagers and internet access, occupy spaces of 100 sq.ft. in regional
malls. Preferred anchors include The
Gap, Lord & Taylor and Nordstrom.
Plans call for as many as 60 openings in the coming 18 months. Expansion will take place in the existing
markets, AZ, the East Coast and Southeastern region. The company operates its stores all year round and signs leases
running one to three years. For more information, contact Nancy Dunbar,
Activate, Inc., 9640 SW Sunshine Court, Suite 200, Beaverton, OR 97005;
503-641-6545, Fax 626-8292. Snow Stuff
USA, Inc. trades as Snow Stuff USA at 114 locations in CO, MN, WI, IA, IL, IN,
KS, MO, SD, MI, OH, NY, PA, MA and NE.
The stores, selling cold weather accessories such as gloves, hats,
mittens and scarfs, occupy spaces of 160 sq.ft. in regional malls. Preferred anchors include JC Penney,
Dayton's and food courts. 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. The company operates its stores from
mid-October through mid-January and typically signs three month leases. The company also prefers to locate its stores
in cold weather climates. For more information, contact Tami Seipel,
Snow Stuff USA, Inc., 102 Central Avenue West, New London, MN 56273;
320-354-2272, Fax 354-7869. Shopsmith
Woodworking Promotions, Inc. trades as Shopsmith at locations nationwide. The company conducts four-day demonstrations
in regional malls in which they demonstrate the Shopsmith Mark V, five-in-one
woodworking system and its related accessories in a 10 foot by 20 foot space. Demonstrations are usually held from
Thursday through Sunday. For more information, contact Lisa Eisele,
Shopsmith Woodworking Promotions, Inc., 6530 Poe Avenue, Dayton, OH 45414-2591;
937-898-6070, Fax 890-5197. Plantscape,
Inc. trades as The Christmas Store at 14 locations in the Eastern and Midwestern
regions. The stores, selling Christmas
and seasonal products, occupy spaces of 2,500 sq.ft. to 8,000 sq.ft. in a
variety of real estate settings. Plans
call for 15 openings in the coming 18 months.
Expansion will take place in the existing markets. The company operates its stores from
September through January and leases running two to four months are typical. For more information, contact Tom Horowitz,
Plantscape, Inc., 3101 Liberty Avenue, Pittsburgh, PA 15201; 412-281-6352, Fax
281-4775. United Oil
Paintings, Inc. does business as The Gallery at 30 locations in CT, ME, MD, MA,
NH, NJ, PA, RI and VA. The stores,
selling decorative paintings and artwork, occupy spaces of 750 sq.ft. to 2,000
sq.ft. in regional malls. Plans call
for 15 openings in the coming 18 months.
Expansion will take place in the Northeastern region. Preferred demographics include a population
of 300,000 within 10 miles earning $35,000 as the average income. The company operates its stores year round
and typically signs leases running one year. For more information, contact Pierce Herbst,
United Oil Paintings, Inc., PO Box 1179, Upton, MA 01568; 609-927-2597, Fax
926-3468. World of
Science, Inc. trades as World of Science at 59 permanent and more than 60
temporary stores in AL, AR, CT, DE, FL, GA, IA, IL, IN, KY, LA, MA, MD, MI, NC,
NH, NJ, NY, OH, PA, RI, SC, TN, TX, VT, VA, WI and WV. The stores, selling nature, science and
educational merchandise, toys and gifts, occupy spaces of 2,000 sq.ft. to 3,000
sq.ft. in regional malls. Preferred
co-tenants include Kay Bee Toy, Gymboree, Children's Place and Gap Kids. Plans call for 30 permanent store openings
and 50 temporary store openings in the coming 18 months. Expansion will take place in the Midwestern,
Northeastern and Southeastern regions.
The company typically signs leases running 10 years for its permanent
stores and six to twelve months for its temporary stores. For more information, contact Russell
Eliason, World of Science, Inc., 900 Jefferson Road, Building 4, Rochester, NY
14623; 716-475-0100, Fax 475-1370. See's
Candies operates more than 200 permanent stores in AK, AZ, CA, CO, HI, NM, WA,
ID, OR, UT, TX and NV. The candy stores
occupy spaces of 100 sq.ft. to 800 sq.ft. in regional malls. Plans call for as many as 30 temporary store
openings in the coming 18 months.
Expansion will take place east of the Rocky Mountains. The company operates its temporary stores during
November and December. Leases running
two months for its temporary stores are typical and leases for its permanent
stores run 10 years. For more information, contact Mary Diamond,
See's Candies, 3423 South La Cienega Boulevard, Los Angeles, CA 90016;
310-287-4609, Fax 842-4423. Hickory
Farms, Inc. trades as Hickory Farms at 1,000 locations throughout North
America. The stores, selling meats,
cheeses and food gifts, occupy spaces of 200 sq.ft. to 1,000 sq.ft. in kiosks
and in-line spaces in regional malls.
Plans call for 1,000 temporary store openings in the coming 18 months. Expansion will take place nationwide. The company operates its stores during
November and December and typically signs leases running two months. For more information, contact Jennifer
Nicholson, Hickory Farms, Inc., 1505 Holland Road, Maumee, OH 43537;
419-893-7611, Fax 893-0164. Archibald
Company trades as Fannie May Candies at 350 permanent stores and 26 seasonal
kiosks in AZ, CA, CO, FL, GA, IN, KY, MD, NC, OH, TX and VA. The candy stores occupy spaces of 150 sq.ft.
in regional malls. Plans call for 50
openings in the coming 18 months.
Expansion will take place nationwide.
Preferred demographics include a population of 500,000 within five miles
earning $50,000 as the average income.
The company operates its stores from November through April. For more information, contact Tom Vitacco,
Archibald Candy, 1137 Jackson Boulevard, Chicago, IL 60606; 312-432-3471, Fax
243-4147. Kiddie
Koncepts, Inc. trades as Kiddie Koncepts at 90 locations nationwide. The concept features children's amusement
rides in kiosk locations at regional malls.
Plans call for 20 openings in the coming 18 months. Expansion will take place nationwide. Leases running three to five years are
typical. For more information, contact Stacey
Edelstein, Kiddie Koncepts, Inc., 118 Rockwood Drive, Pittsburgh, PA 15238;
412-963-7575, Fax 963-7588. Exclusives JP
Properties, Inc. (770-352-0056) has been named the exclusive leasing agent for
four shopping centers recently acquired by Kranzco Realty Trust: the 182,552
sq.ft. NorthPark Center anchored by Kroger and Kmart in Macon, GA; the 89,000
sq.ft. Tower Plaza anchored by Bruno's in Carrollton, GA; the 231,594 sq.ft.
The Village at Mableton anchored by Kmart and Bruno's in Mableton, GA and the
105,420 sq.ft. Holcomb Bridge Crossing anchored by Cub Foods in Roswell, GA. Equity
Properties, Inc. (610-645-7700) has been named the exclusive representative for
Marchwood Center in Exton, PA. The
project has 140,000 sq.ft. available for lease. The company has also been named the exclusive representative for
Great Valley Center in Frazer, PA. The
project has 95,000 sq.ft. available for lease. The Sembler
Company (813-384-6000) has been awarded the management and leasing contract for
Rivergate Plaza Shopping Center in Port St. Lucie, FL by Dead River
Properties. The 90,000 sq.ft. project
is anchored by Publix, Walgreens and two banks. Buyers &
Sellers Towle Real
Estate Company brokered the sale of a net leased Timber Lodge Steakhouse in St.
Cloud, MN. The sale price was $1.4
million. For more information, contact Michael Houge
or Keith Sturm at (612-347-9332). Bennett
Williams Realty, Inc. brokered the sale of Englar Shopping Center in
Westminster, MD. The project is
anchored by Kmart and SuperFresh supermarket. For more information, contact David
Nicholson or Bobby Traynham at (717-843-5555), Fax (843-5550). MBK
Northwest recently sold Meridian Village Shopping Center in Bellingham, WA to
Burnham Pacific Properties for $20.7 million.
The 206,000 sq.ft. project is anchored by a 105,000 sq.ft. Home Depot,
Circuit City and Payless Drugs. For more information, contact H. Craig Ramey
at (714-789-8300). Asia Pacific
Group represents several investors from China and Taiwan in the market to
acquire commercial real estate in the US in the $1 million to $20 million price
range. For more information, contact Alexis Chiu at
(415-677-0132. Equity
Investment Group recently acquired nine properties in two transactions. Eight of the properties were acquired from
Bruno's, Inc. for $8.7 million. The
transaction included two shopping centers--the 55,580 sq.ft. South Park
Shopping Center in Aiken, SC and the 43,371 sq.ft. Food Lion Shopping Center in
Statesboro, GA. Of the remaining
properties, four are freestanding Harvey's Supermarkets. They include a 28,188 sq.ft. unit in Baxley,
GA; a 47,860 sq.ft. store in Thomasville, GA; a 34,546 sq.ft. unit in
Waynesboro, GA and a 26,000 sq.ft. unit in Valdosta, GA. Other single tenant properties in the sale
included a 45,720 sq.ft. Jitney Jungle store in New Albany, MS and a 38,486
sq.ft. Bi-Lo Supermarket in Swainsboro, GA. In a separate transaction the
company acquired Covered Bridge Shopping Center in Clayton, GA from Realmark
Holdings Corp. for $2.55 million. The
61,372 sq.ft. project is anchored by Bi-Lo, Revco and Family Dollar. For more information, contact Equity
Investment Group at (404-364-2984). Schnee
Realty has the listing to sell the 180,000 sq.ft. Freeport Lincoln Mall in
Freeport, IL. The asking price is $4
million. For more information, contact Marvin Schnee
at (516-569-4274), Fax (569-4275). Investment
Property Specialists, Inc. has the listing to sell a 33,000 sq.ft. pharmacy
anchored shopping center in Ashland, MA.
The asking price is $4.25 million. For more information, contact A. Nicholas
Coppola at (508-875-4800), Fax (820-9780). International
Capital, Inc. has the listing to sell The Meadows at Central in Bedford,
TX. The 53,796 sq.ft. project is
anchored by Get Fit, University Medical Group and Bank One. The asking price is $4.85 million and $3.4
million is assumable. For more information, contact Susan Kunkel
at (972-241-3545), Fax (241-0432). Arizona Real
Estate and Construction Services, Inc. has the listing to sell Price Club Plaza
in Phoenix, AZ. The 333,497 sq.ft.
project is anchored by Price Club, HomeBase, PetsMart, Graham Central Station,
McDonald's and Jack in the Box. The
asking price is $20.95 million. The
company has the listing to sell Tustin Freeway Center in Tustin, CA. The 32,535 sq.ft. project has an asking
price of $4.1 million. The company has
the listing to sell McKinley Freeway Centers in Corona, CA. The 73,033 sq.ft. project has an asking
price of $7 million. The company has
the listing to sell San Dimas Station & Foothill Village in San Dimas,
CA. The 231,066 sq.ft. project is
anchored by REI Sporting Goods, Cost Plus, Denny's and Carl's Jr. The asking price is $16.9 million. The company also has the listing to sell The
Hermosa Pavilion in Hermosa Beach, CA.
The 69,730 sq.ft. project, which is 95% occupied, has an asking price of
$11 million. For more information, contact Nancy
Castleberry at (602-404-3853), Fax (404-6724). The
Bierschek Group, Inc. has the listing to sell a 39,000 sq.ft. strip center in
Central Coast, CA. The project is
anchored by Carl's Jr., Taco Bell, Radio Shack and Sylvan Learning Center. The asking price is $5.75 million and
financing is available. For more information, contact Bill Bierschek
at (310-573-3615), Fax (573-7570). Lead Sheet Gantos, Inc. dba Gantos Kenneth
Green 3366 Avenue Grand
Rapids, MI 49588 616-949-7000,
Fax 949-5884 Apparel The 116-unit
chain operates locations in CA, CO, CT, IL, IN, KS, KY, MA, MO, MI, MD, NH, NJ,
NY, NC, OH and TN. The women's apparel
stores occupy spaces of 5,000 sq.ft. to 7,000 sq.ft. in regional malls. Plans call for 10 openings in the coming 18
months. Expansion will take place in
the existing markets. Leases running 12
years are typical. Hyatt &
Company, Inc. dba Hyatt
& Company Edward Hyatt 1444
Columbia Mall Columbia, MD
21044 410-730-8060,
Fax 995-1133 Apparel The
three-unit chain operates locations in MD.
The men's apparel stores occupy spaces of 2,000 sq.ft. in freestanding
facilities, regional malls and specialty centers. Preferred anchors include Hecht's and Sears. Plans call for one opening in the coming 18
months. Expansion will take place in
the existing market. Hub
Distributors, Inc. dba Miller's
Outpost, Levi's Outlet John Burgess 2501 East
Guasti Road Ontario, CA
91761 909-605-5000,
Fax 605-5414 Apparel The 250-unit
chain operates locations in AZ, CA, CO, NV, NM, OR, TX, UT and WA. The stores, selling casual men's and women's
apparel, occupy spaces of 5,000 sq.ft. to 6,000 sq.ft. in regional malls. Plans call for 30 openings in the coming 18
months. Expansion will take place in
the existing markets. Preferred
demographics include a population of 250,000 within 10 miles earning $35,000 as
the average income. Leases running
seven years are typical and the company cites Pacific Sunwear, Buckle and Mr.
Rags as competition. James F.
Seifert and Sons LC dba
Seiferts, Seiferts Plus Mike McCue 1035 33rd
Avenue SW Cedar
Rapids, IA 52406 319-366-8266,
Fax 362-2877 Apparel The 48-unit
chain operates locations in IL, IA, MN, MO, NE, ND, SD, VA, WI and WY. The women's apparel stores occupy spaces of
3,000 sq.ft. to 4,000 sq.ft. in downtown store fronts, regional malls and
specialty centers. Plans call for as
many as 10 openings in the coming 18 months.
Expansion will take place in IL, IA, MI, MO, NE, ND, SD, VA and WI. Preferred demographics include a population
of 50,000 within five miles earning $30,000 as the average income. Leases running five to ten years are
typical. Ashland Oil,
Inc. dba
Valvoline Instant Oil Change Joe Graddy PO Box 14046 Lexington,
KY 40512 800-622-6846,
Fax 606-264-7049 Automotive The 533-unit
chain operates locations nationwide.
The automotive service centers, featuring quick-change oil changes,
occupy freestanding facilities on land areas running 15,000 sq.ft. Preferred anchors include supermarkets. Plans call for 60 openings in the coming 18
months. Expansion will take place
nationwide. Preferred demographics
include a population of 50,000 within three miles earning $60,000 as the
average income. The company, which is
franchising, cites Jiffy Lube and Q-Lube as competition. Tilden For
Brakes Robert
Baskind 1325
Franklin Avenue Garden City,
NY 11530 516-742-2800,
Fax 742-4499 Automotive The 10-unit
chain operates locations in FL, NJ and NY.
The automotive repair centers occupy spaces of 3,000 sq.ft. to 10,000
sq.ft. in freestanding facilities and strip centers. Plans call for 18 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population
of 50,000 within three miles earning $50,000 as the average income. Leases running 10 years, with a 10-year
option, are typical. The company is franchising
and cites Goodyear and Midas as competition. Coastal
Investments, Inc. dba Tinee
Giant Mauro
Zenarolla 1080 Aragona
Boulevard Virginia
Beach, VA 23455 804-552-0000,
Fax 499-8386 Convenience
Store The
nine-unit chain operates locations in VA.
The convenience stores occupy spaces of 2,300 sq.ft. in freestanding
facilities and strip centers. Plans
call for one opening in the coming 18 months.
Expansion will take place in the existing market. Leases running 15 years are typical. Snappy Mart
Stores, Inc. dba Snappy
Mart Stores Steve Little 412 Silver
Heights Silver City,
NM 88061 505-388-1551,
Fax 388-1229 Convenience
Store The 13-unit chain |