The Dealmakers Issue Number 7 for the week of February 27, 1998.

 

My Way by Ted Kraus

 

Well deals must be getting tougher to find and make, since I've noticed companies are spending more money and time on marketing than they have in the last few years.  Over the last month I've gotten dozens of unsolicited brochures either attempting to lease or sell a center to one of our clients and in the vast majority of cases the brochures were four color and well done (and expensive).  I received a 16 page, four color brochure on expensive paper for a center being sold and it included a video.  Another had a CD with all the numbers in a Lotus format on it ready for a potential buyer to do number crunching.  It also had lots of pictures so I could browse (nowadays after spending $400-$500 on a writeable CD player, the cost of "cutting" a CD with tons of pictures and data is as low as $1.75 each and who do you know that doesn't own a CD and computer?).  Utilizing all this technology makes sense, but not for mass mailings.  Yes, if you call and ask if I'm interested in leasing or acquiring the "ABC" Shopping Center and then follow up with a four color brochure, CD or video, it makes sense, but not to mass mail it to 2,500 of your closest friends.

 

I did receive one sales package that had a unique twist to it.  Instead of just providing the usual numbers, demos and pictures on a center along with stating the sales cap at 9.65%, it went into detail on how to increase the center's cash flow in the near future and within three years have an IRR of 16.5%.  Other packages have attempted this, just never in such detail.  There appears to be many creative people "out there."  I admit I was impressed with the CD, of course I didn't believe any of his assumptions, but that's besides the point.  Oh, I forgot to mention most of these centers are in the 80,000-150,000 sq.ft. range, a size that in the past would never have justified this type of expense or effort.  But today the sales price is high enough to justify it.  I guess the combination of higher sales and leasing prices combined with an extremely competitive market requires more professionalism on our behalf....good for us.

 

Business is crazy right now, on one front the economy is flying higher than anyone can remember and retailers are still expanding at a rapid rate.  On the other hand there appears to be an increase in bankruptcies in the last few months and some aspects of retailing really stinks, such as the outlet and the apparel industry (especially in the New York and New Jersey where the winter hasn't come yet and it's February).  Not only is business crazy, but lots of heads of both retail chains and developers are being replaced (and many being replaced are the founders of the company).  The future of retailing and real estate, to say the least, is unclear.

 

Talking about bankruptcies, the ICSC should add Buying and Selling Bankrupt Leases to their requirements for a CLS (Certificate Leasing Specialists) degree since that appears to becoming more of a common requirement and the "norm" of an aggressive leasing department every day.  I think too many "good" locations are passed over by companies because they're scared to get involved with the procedure of acquiring leases from the court.  (The ICSC should also have a designation for "Surplus Space Specialist" since that appears to be another standard leasing procedure.)  Therefore, the company willing to go the extra mile are acquiring some great sites.

 

Talking about the ICSC, business must be too good, since the February issue of Shopping Center Today's lead article is "Will late 90s capital boom lead to late 80s style bust."  While the tone of the article was not negative and it tried to be objective, explaining both sides of the benefits and dilemmas of the current economy and just repeated what the industry has been saying for years; that there is too much money chasing too few deals and therefore many of the deals don't make sense.  But if the industry's trade organization is expressing concern it means the end is nearer than I thought.

 

Oh, before I forget, if you haven't been in the latest prototype of a Lowes Home Center, make a point to go, it's great.  While I'm still high on Home Depot, Lowes outclassed 'em on this.  Now with Lowes coming to the east, the competition between the two will really become hot and the public (and developers) will benefit.  The store, without being a chauvinst, is "female" oriented and therefore they will be attracting a lot of new customers.

 

In conversations with leasing agents lately I'm beginning to feel I'm talking with Wall Street instead of developers.  It's now, "Oh we can't do that deal, Wall Street would never approve, or the deal's wrong for the "Street," we'll have to pass."  What happened to: "This deal makes sense for this center, let's do it."  Talking of stupidity, I'm still trying to figure out why Monkey Ward hired Ernst & Young to handle the liquidation of their real estate.  They have as much experience and skill in doing these type of deals as my dog.  Well, it's been a long time since anyone called them sharp, so I guess they're living up to their current reputation.

 

While I know it's been discussed by me and everyone else in this industry many times and nothing ever comes of it, I still have to complain about the unprofessional idiots who don't return phone calls.  In the long run, the non-returner loses, since some day he (she) will need the caller and if the caller is smart (but no one ever said all real estate people are smart) they will remember and won't be helpful.  In the industry today, no one has a lifetime or even a long term job, either they're canned because of personality clashes, incompetency, economic downturn or the company going bankrupt, so just because you're working for a great company today doesn't mean you're be there in three years.

 

Parting thoughts.  I had an interesting conversation with a small developer who has made millions in the last three years off of two insurance companies he has a good relationship with.  Even with the economy booming, the insurance companies are taking back property and because of incompetency (the insurance company usually promotes a former secretary to the position of "Asset Manager," making $30,000 a year) the insurance company sells the repossed property at a ridiculous low price.  The insurance company originally loaned $8 million on the property than after it went into default and taken back, he'd buy it for $4-$5 million and within two to five years have it worth $7-$8 million.  He loves 'em and hopes they never decide to get their act together and find ways to obtain the property's real value when selling 'em... America, what a great country.

 

 

Apparel Tenants Expanding Nationwide

 

House of Bargains, Inc. trades as House of Bargains and Kid Spot at 54 locations in DE, IL, MI, NJ and PA.  The stores, selling children's apparel at off price-points, occupy spaces of 4,000 sq.ft. to 5,000 sq.ft. in outlet and strip centers.  Preferred anchors include supermarkets.  Plans call for six openings in the coming 18 months.  Expansion will take place in OH.  Preferred demographics include a population of 120,000 within three to five miles earning $35,000 as the average income.  Leases running five years are typical and the company cites Kmart as competition.

  For more information, contact Sue Fafara, House of Bargains, Inc., 70 Portland Road, West Conshohocken, PA 19428; 610-834-1600, Fax 834-0942.

 

Big M, Inc. trades as Annie Sez at 39 locations in CT, DE, MD, NJ, NY, PA and VA.  The women's apparel stores occupy spaces of 12,000 sq.ft. to 15,000 sq.ft. in strip centers.  Preferred anchors include Kids 'R Us, Toys 'R Us and supermarkets.  Plans call for the opening of four units in the coming 18 months.  Expansion will take place within the existing markets.  Preferred demographics include a population of 75,000 within three miles earning $75,000 as the average income.  Leases running 10 years are typical.

  For more information, contact Kenneth Mandelbaum, Big M, Inc., 12 Vreeland Avenue, Totowa, NJ 07512; 201-890-0021, Fax 890-5994.

 

Hit Or Miss operates 275 locations nationwide.  The women's apparel stores occupy spaces of 4,000 sq.ft. to 8,000 sq.ft. in downtown store fronts and strip centers.  Preferred anchors include supermarkets.  Plans call for 20 openings in the coming 18 months.  Expansion will take place in the Mid-Atlantic and Northeastern regions.  Preferred demographics include a population of 125,000 within five miles earning $60,000 as the average income.  Leases running five years are typical and the company prefers a vanilla shell with $5 psf to $10 psf in tenant improvements.

  For more information, contact Michael Benoit, Hit Or Miss, 100 Campanelli Parkway, Stoughton, MA 02072; 781-344-0800.

 

Big Dog Holdings trades as Big Dog Sportswear at 140 locations nationwide.  The stores, selling its own line of sportswear and accessories, occupy spaces of 3,000 sq.ft. in outlet centers.  Plans call for 30 openings in the coming 18 months.  Expansion will take place nationwide.

  For more information, contact Matt Lux, Big Dog Holdings, 121 Gray Avenue, Santa Barbara, CA 93101; 805-963-8727, Fax 962-9460.

 

Wilsons The Leather Experts, Inc. trades as Wilsons The Leather Experts at 470 locations in 45 states.  The stores, selling leather apparel and accessories, occupy spaces of 2,500 sq.ft. in regional malls.  Growth opportunities are sought 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.

  For more information, contact Jon Halper, Wilsons The Leather Experts, Inc., 7401 Boone Avenue North, Brooklyn Park, MN 55428; 612-391-4000, Fax 391-4138.

 

Copper Rivet, Inc. operates 14 stores in AZ, CO and UT.  The young adult apparel stores occupy spaces of 3,000 sq.ft. to 4,500 sq.ft. in regional malls.  Plans call for two openings in the coming 18 months.  Expansion will take place in either CO, ID or UT.  Preferred demographics include a population of 500,000 within 10 miles earning $35,000 as the average income.  The company cites Nordstrom as competition.

  For more information, contact John Morton, Copper Rivet, Inc., 3434 South State, Salt Lake City, UT 84115; 801-487-0650, Fax 487-0781.

 

Cambridge Dry Goods, Inc. operates nine locations in ME, NY, PA and VA.  The stores, selling casual apparel, occupy spaces of 2,500 sq.ft. in outlet centers.  Plans call for one opening in the coming 18 months.  Expansion will take place in New England.

  For more information, contact Debbie Podufaly, Cambridge Dry Goods, Inc., 79 Astor Avenue, Norwood, MA 02062; 781-440-9933, Fax 440-9876.

 

Ridgefield Corp. does business as French Novelty at five locations in FL and GA.  The women's apparel stores occupy spaces of 2,500 sq.ft. in regional malls, specialty and strip centers.  Plans call for as many as two openings in the coming 18 months.  Expansion will take place in FL.

  For more information, contact Jack Mizrahi, Ridgefield Corp., 3520-4 Blanding Boulevard, Jacksonville, FL 32210; 904-779-1001.

 

 

Sources of Financing

 

The Ackman-Ziff Real Estate Group LLC (212-697-3333) placed a $59 million permanent loan for a 358,000 sq.ft. shopping center in Stamford, CT.  The project is anchored by Staples, Stop & Shop, Bed Bath & Beyond, Coconuts, Gap/Old Navy, CVS and Marshalls.  The loan was placed with a pension fund for a 10 year term.  The company placed a $3.1 million loan for a 30,000 sq.ft. triple net lease credit tenant in Los Angeles, CA.  The loan was structured as a 15 year permanent loan with a 30 year amortization schedule.  The company placed a $2.2 million loan for a 17,000 sq.ft. retail property triple net leased to a non-credit tenant.  The 10 year loan was priced at 7.22% and utilized a 30 year amortization schedule to provide maximum cash flow to the investor.  The company placed a $36 million permanent, takeout and mezzanine loan for a 177,000 sq.ft. shopping center in Rockville, MD.  The center is 100% leased and is anchored by Circuit City, Staples, Bed Bath & Beyond and Modell's.  The company placed a total of $19 million in permanent loans for two shopping centers in TX on behalf of a foreign investment advisory firm.  The loans were arranged with a NY-based lender at a fixed rate over treasuries for 10 years.  The company also placed a $10 million permanent loan for a 31,468 sq.ft. three-story shopping center in St. Thomas, Virgin Islands.  The waterfront shopping plaza is anchored by The Hard Rock Cafe, Harley Davidson, Gold's Gym and other specialty shops.  The fixed rate loan was structured for a 10 year term with a 25 year amortization schedule.

 

Nomura Capital (212-826-0052) recently placed $16.3 million in permanent financing for The Borgata in Scottsdale, AZ and a $3.5 million mortgage for North Main Market in Summerville, SC.

 

TransAtlantic Capital Co. (212-469-8814) recently placed a $12 million mortgage for Hollywood Plaza in Orlando, FL.

 

GE Capital (203-357-3834) recently placed $10.5 million in financing for Lincoln Village Shopping Center in Austin, TX.

 

 

New Construction

 

The Mills Corp. and Cambridge Shopping Centres Limited recently secured a 180 acre site in Vaughan, Ontario for the development of a "Mills" format mega-mall.  The site, which is located 20 miles north of downtown Toronto, is located at the intersection of Highway 400 and Rutherford Road and will be the first Mills project outside of the U.S.  The project is expected to include a mix of more than 200 traditional merchants, manufacturers' outlets, off-price retailers, department store outlets, specialty stores, catalogue outlets, category dominant stores, entertainment venues and theme restaurants.  Many of these stores and entertainment offerings will be the only location of their kind in the market.  The target opening date of the project, assuming all zoning and other approvals can be obtained in a timely manner, is Fall of 2000.

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

 

Opus Corp. plans to break ground during Spring in a 212,000 sq.ft. mixed-use project in Duluth, MN.  Located across from Milner Hill Mall, the project will include retail stores, restaurants and an 80-room hotel on the 63 acre site.  The site is expected to open during Summer 1999.

  For more information, contact Opus Corp. at (612-936-4568).

 

Pacific Retail Trust plans to develop at least three shopping centers in the Dallas, TX market this year.  The largest will be the 550,000 sq.ft. Irving Retail Center in Las Colinas.  The project will be developed in two phases and will be anchored by Target.  The company also plans to develop the 250,000 sq.ft. Prestonwood Park in Plano and the 125,000 sq.ft. Hebron Parkway Plaza in Carrollton.  Both projects will be anchored by Albertson's supermarkets.

  For more information, contact Pacific Retail Trust at (214-696-9500).

 

Carl Marks & Co. plans to break ground during early 1999 on PhillyWalk along the Delaware River waterfront in Philadelphia, PA.  The $60 million complex will be anchored by a 12 to 14 screen General Cinema movie complex, retail space, a 500 room hotel and two office buildings, one of which would be a World Trade Center.  The movie theater is expected to open in time for the 1999 Christmas season.

  For more information, contact Carl Marks & Co. at (212-909-8400).

 

Developers Diversified Realty Corporation plans to break ground next month on Uptown Solon in Solon, OH.  The 175,000 sq.ft. project will be anchored by a 40,000 sq.ft. Bed Bath & Beyond, a 25,000 sq.ft. Borders Books & Cafe, a 35,000 sq.ft. Gourmet Market, a 12,000 sq.ft. Talbot's Outlet, a 10,000 sq.ft. Newman Outfitters and a 9,000 sq.ft. Pier One Imports.  Other tenants will include Bath & Body Works, Play Matters, Carlton Cards, Jordon Todd Clothiers, Dino Palmieri Salon & Spa, Plymouth Candle, Corky's World Famous BBQ and Shuhei Restaurant.  The project is expected to open during Winter 1998.  The company also is conducting a $10 million renovation of The Plazas at Great Northern in North Olmstead, OH.  The initial improvements began with the addition of HomePlace and will continue with the conversion of a 16,500 sq.ft. Jo-Ann Fabrics to a 45,000 sq.ft. Jo-Ann Etc. Superstore.  In addition, two large national retailers are expected to be added during the second quarter of this year.

  For more information, contact Steven Dorsky at (440-247-1723).

 

Krikorian Premiere Theatres, LLC plans to develop The Oasis at Palm Desert Walk in Palm Desert, CA.  The 646,000 sq.ft. retail/entertainment center will be anchored by a 100,000 sq.ft., 24-screen Krikorian Premiere Theater; 33,000 sq.ft. of theme restaurants and a 15,000 sq.ft. food court.  The project, which will be developed in phases, is located adjacent to a Costco/HomeBase shopping center.

  For more information, contact Jon Friesen at (909-605-1100) or Kurt Johnston at (760-770-8040).

 

Devcon Enterprises, Inc. recently celebrated the grand opening of The Marketplace at Port St. Lucie in Port St. Lucie, FL.  The 155,559 sq.ft. project is anchored by Wal*Mart and a 48,466 sq.ft. Winn-Dixie Marketplace supermarket.  Other tenants at the center include One Price Clothing, Mail Boxes Etc., Dollar Tree Stores, Cici's Pizza, Friedman's Jewelers, Pic 'N Pay Shoes, K-Nails, The Dry Cleaner, Supercuts, Wendy's and World Savings Bank.  Pre-leasing is underway for the 75,000 sq.ft. phase II, which will include an anchor position.  The center fronts Route 1 and Jennings Road.

  For more information, contact J.R. Cody of Devcon Enterprises, Inc. at (860-521-6999), Fax (521-6789).

 

 

Food Tenants Hungry for Sites Nationwide

 

California Cafe Restaurant Corp. trades as California Cafe, Blackeye Grille, Napa Valley Grille, Cafe Del Rey and Alcatraz Brewery at 21 locations in AR, CA, CO, FL, IL, IN, MN and NY.  The restaurants occupy spaces of 6,500 sq.ft. to 7,500 sq.ft. in downtown store fronts, freestanding facilities, regional malls and specialty centers.  Preferred anchors include Nordstrom and Lord & Taylor.  Plans call for seven openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include a population of 500,000 within 10 miles earning $50,000 as the average income.

  For more information, contact Mosen Amimifard, California Cafe Restaurant Corp., 5725 Paradise Drive, Suite 450, Corte Madera, CA 94925; 415-924-6600, Fax 924-3906.

 

Buffets, Inc. trades as Old Country Buffet and HomeTown Buffet at 370 locations in 34 states.  The buffet style restaurants occupy spaces of 8,500 sq.ft. to 9,500 sq.ft. in freestanding facilities, power and strip centers.  Preferred anchors include national discount stores, national office supply stores and supermarkets.  Plans call for 30 openings in the coming 18 months.  Expansion will take place in the Midwestern, Northeastern and Western regions.  Preferred demographics include a population of 150,000 within five miles earning $40,000 as the average income.  Leases running 15 years are typical.

  For more information, contact Brad McNaught, Buffets, Inc., 10260 Viking Drive, Suite 100, Eden Prairie, MN 55344; 612-942-9760, Fax 947-0118.

 

Hudson's Grill operates 18 locations in CA, MI, NV, NJ and TX.  The casual restaurants occupy spaces of 4,000 sq.ft. to 4,400 sq.ft. in freestanding facilities, power centers and regional malls.  Preferred anchors include Costco, Price Club, Sam's, Target and Wal*Mart.  Plans call for six openings in the coming 18 months.  Expansion will take place in the Mid-Atlantic, Rocky Mountain and Southeastern regions.  Preferred demographics include a population of 75,000 within three miles earning $40,000 as the average income.  Leases running 10 years, with two five-year options, are typical and the company, which is franchising, cites Applebee's, Chili's and Ruby Tuesday's as competition.

  For more information, contact Thomas Sacco, Hudson's Grill, 16970 Dallas Parkway, Suite 402, Dallas, TX 75248-1928; 972-931-9237, Fax 931-1326.

 

Cinema 'N Drafthouse trades as Cinema Grill at 25 locations in AR, CO, FL, GA, IL, MD, MN, NC, OH, PA, SC, TX, VA and Washington, D.C.  The restaurants, which also feature a movie theater, occupy spaces of 8,000 sq.ft. to 15,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls, power and strip centers.  Preferred co-tenants include other restaurants and entertainment tenants.  Plans call for 30 openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include a population of 100,000 within three miles earning at least $50,000 as the average income.  Leases running 15 years are typical.

  For more information, contact Brian Henry, Cinema 'N Drafthouse, 201 North Wells Street, Chicago, IL 60606; 312-849-3100, Fax 849-2041.

 

Houlihan's Restaurant Group trades as Houlihan's at 86 locations nationwide.  The restaurants occupy spaces of 7,000 sq.ft. in freestanding facilities, specialty and strip centers.  Growth opportunities are sought in CT, GA, KS, NJ, NY and PA.

  For more information, contact Dan Rooney, Houlihan's Restaurant Group, 2 Brush Creek Boulevard, Kansas City, MO 64112; 816-756-2200, Fax 561-1899.

 

Rare Hospitality International, Inc. does business as Longhorn Steaks, Capital Grill and Bugaboo Creek Steakhouse at 101 locations in AL, CT, FL, GA, IL, KY, MA, MI, MN, MO, NY, NC, OH, PA, RI, SC, TN, TX, VA and Washington, D.C.  The restaurants, which specialize in steaks, occupy spaces of 5,000 sq.ft. to 7,000 sq.ft. in freestanding facilities on one and a half acres of land.  Plans call for 15 openings in the coming 18 months.  Expansion will take place in DE, FL, GA, MD, MO, NC and SC.  Preferred demographics include a population of 100,000 within five miles earning $50,000 as the average income.

  For more information, contact Kirk Hermansen, Rare Hospitality International, Inc., 8215 Roswell Road, Building 200, Atlanta, GA 30350; 770-551-5432, Fax 551-6686.

 

Bob Evans Farms, Inc. trades as Bob Evans at 381 locations in DE, FL, IA, IL, IN, KY, MD, MI, MO, NJ, NY, NC, OH, PA, SC, TN, VA and WV.  The family restaurants occupy spaces of 4,300 sq.ft. to 6,000 sq.ft. in freestanding facilities.  Plans call for 40 openings in the coming 18 months.  Expansion will take place in the existing markets.

  For more information, contact Stephen Warehime, Bob Evans Farms, Inc., 3776 South High Street, Columbus, OH 43207; 614-492-4941, Fax 492-4990.

 

Golden Corral Restaurants operates 450 locations nationwide.  The buffet restaurants occupy spaces of 9,611 sq.ft. in freestanding facilities, regional malls, outlet, power and value centers.  Preferred anchors include Kmart, Target and Wal*Mart.  Plans call for two openings in the coming 18 months.  Expansion will take place in the counties of Bergen, Essex, Hudson, Middlesex, Monmouth, Ocean and Union in NJ.  Preferred demographics include a population of 70,000 within five miles earning $50,000 to $60,000 as the average income.  Leases running 25 years are typical and the company cites Old Country Buffet, Staceys Buffet and HomeTown Buffet as competition.

  For more information, contact George Gordon, Golden Corral Restaurants, c/o George L. Gordon Real Estate, 146-03 Union Turnpike, Flushing, NY 11367; 718-969-3447, Fax 969-3856.

 

The Old Spaghetti Warehouse operates 29 locations nationwide.  The Italian restaurants occupy spaces of 10,000 sq.ft. in freestanding facilities near regional malls.  Plans call for the opening of four units in the coming 18 months.  Expansion will take place in TX.  The company cites Macaroni Grill and Olive Garden as competition.

  For more information, contact Eileen Pierson, The Old Spaghetti Warehouse, 402 West I-30, Garland, TX 75043; 214-226-6000, Fax 203-9589.

 

Dan'l Webster/Hearth 'N Kettle Management trades as Hearth 'N Kettle at eight locations in MA.  The restaurants and taverns occupy spaces of 8,000 sq.ft. in freestanding facilities and regional malls.  Plans call for one opening in the coming 18 months.  Expansion will take place in the Boston, MA market.  Leases running at least 20 years are typical.

  For more information, contact V.J. Catania, Dan'l Webster/Hearth 'N Kettle Management, 141 Falmouth Road, Hyannis, MA 02601; 508-771-0040, Fax 771-0883.

 

 

Mergers & Acquisitions

 

Nobody Beats The Wiz (908-602-1900) has reached an agreement with Cablevision Systems Corp. to sell its company for approximately $95 million.  Approval of the bankruptcy court is needed to complete the deal.  Cablevision is the nation's sixth largest cable television operator and the acquisition will allow the company to market its brands and telecommunication services at the 36 stores being acquired from The Wiz.  The deal calls for Cablevision to pay approximately 80% of the value of The Wiz's inventory, spend $10 million on administrative expenses and claims and $5 million for other contingencies.  Cablevision does not plan to pay off The Wiz's debts.

 

Charming Shoppes, Inc. (215-638-6719) plans to acquire 28 stores from Petrie Retail, Inc.  Six of the stores are located in LA and TX, new markets for Charming Shoppes, which operates 1,135 stores in 42 states trading as Fashion Bug and Fashion Bug Plus.

 

Wolf Camera (404-633-9000) recently acquired six stores from the nine-unit Mike Crivello Camera & Imaging chain in the Milwaukee, WI market.  The stores will be renamed Wolf Camera.

 

AFC Enterprises (404-391-9500) plans to acquire Seattle's Best Coffee and Torrefazione Italia and operate them as a wholly owned subsidiary.  The deal will allow SBC and Torrefazione to expand its presence from 66 locations now to as many as 500 locations nationwide in the coming years.

 

Fabri-Centers of America, Inc. (330-656-2600) recently signed a definitive merger agreement to acquire House of Fabrics, Inc. in a deal worth approximately $100 million.  The deal is expected to close next month.  Fabri-Centers operates 907 stores in 48 states trading as Jo-Ann Fabrics and Crafts, Cloth World, New York Fabrics and Jo-Ann Etc.  Its annual revenues are approximately $970 million.  House of Fabrics operates 262 stores in 27 states trading as House of Fabrics, SoFro Fabrics, Fabricland and Fabric King.  Its annual revenues are approximately $240 million.

 

Rent-Way (814-836-0618) recently agreed to acquire the 145-unit Champion Rentals for approximately $70 million plus debt assumption.  Rent-Way recently completed its acquistion of the 50 unit Ace TV chain for $25 million.

 

 

Who's Opening & Where

 

Hard Rock Cafe (407-351-6000) recently signed a 10-restaurant deal with the National Basketball Association to develop NBA restaurants worldwide.  The first unit is expected to open at Universal Studios in Orlando, FL during early 1999.

 

Today's Man (609-235-5656), which recently emerged from bankruptcy protection, plans to open as many as six stores in the coming two years.  The company plans to open the stores in its current markets of New York, NY and Philadelphia, PA.

 

Garden Ridge (713-772-6262) is developing a 125,000 sq.ft. craft store at The Crossings at Hickory Hollow in Nashville, TN.  The company is currently exploring sites for a second store in Nashville and sites for a store in Knoxville, TN as well.

 

Apple South, Inc. (706-342-4552) recently opened a 6,500 sq.ft. Don Pablo's Mexican Kitchen restaurant in Memphis, TN.  The unit is the first of five planned Don Pablo restaurants for TN this year.

 

Zany Brainy (610-896-1500) plans to open two stores in CA and a store in MD this year.

 

Michael Jordon's-The Steak House (212-741-0079) plans to open a 7,000 sq.ft. restaurant at Grand Central Terminal in New York, NY next month.

 

Sears (847-286-0545) is currently negotiating to build a 160,000 sq.ft. department store on Market Street in Philadelphia, PA.  The site, which currently houses a parking lot, formerly housed a Gimbels department store.  The company also recently rolled out its latest "off the mall" concept store called The Great Indoors at a 150,000 sq.ft. location just west of Park Meadows Mall in Denver, CO.  The store features departments devoted to the kitchen, bathroom, bedroom and other areas of the home.  The company plans to open as many as 250 of these stores nationwide in the coming 10 years.

 

Home Depot, Inc. (770-433-8211) plans to develop a 112,000 sq.ft. store in Delafield, WI this year and is looking at a site in Wauwatosa, WI for a potential store location.

 

Meijer, Inc. (616-453-6711), which is currently developing a 230,000 sq.ft. store at Hamburg Place in Lexington, KY, is looking into developing a 211,000 sq.ft. store at Masterson Station Center in north Lexington, KY within five years.

 

CD Warehouse, Inc. (405-949-2422) opened 37 stores during 1997 through both the company and franchisees.  This year, the company is looking to open as many 50 stores, 12 of which will be company-owned.  At the close of 1997, the company operated 150 music stores that buy, sell and trade pre-owned compact discs and sell new release CDs.

 

Fred Meyer (503-797-3450) is evaluating the feasilibilty of developing a store at the intersection of Parks Highway and Palmer-Wasilla Highway, across from Cottonwood Creek Mall, in Wasilla, AK.  The company currently operates seven stores in AK.

 

AIDS Healthcare Foundation (213-860-5225) recently opened a 14,000 sq.ft. Out of The Closet fund-raising thrift store in Long Beach, CA.  It is the foundation's 12th store in Southern CA.  The stores feature clothing and accessories, including clothing and accessories from various film and television studios.  Proceeds from the stores benefit local and national AIDS research and care facilities.

 

 

Closings

 

Genovese Drug Stores, Inc. (516-845-8211) plans to close or sell five of its 135 drug stores in CT, NJ and NY.

 

JC Penney (972-431-1000), which recently announced that it plans to close 75 underperforming department stores, plans to close its stores at Sharpstown Shopping Center in Sharpstown, TX; at Northwest Center in San Antonio, TX; at River Drive Mall in Laredo, TX; at Westland Mall in Columbus, OH and at Hawthorne Plaza Shopping Center in Hawthorne, CA.

 

Trak Auto Corporation (301-731-1200) recently closed its 15 Trak Auto stores in the Pittsburgh, PA market and exited the market.  The company said that the market no longer fits into its strategic plans.

 

Elek-Tek (847-677-7660) recently closed its 28,000 sq.ft. computer store in Indianapolis, IN.

 

 

Lead Sheet

 

Gregg Appliances, Inc.

dba H.H. Gregg

Jerry Throgmartin

4151 East 96th Street

Indianapolis, IN 46240

317-848-8710, Fax 848-8723

 

Appliances

The 18-unit chain operates locations in KY, IN and TN.  The stores, selling appliances and electronics, occupy spaces of 25,000 sq.ft. in freestanding facilities.  Growth opportunities are sought in AL, FL, IN, KY and TN.

 

Fabri Centers of America, Inc.

dba Clothworld, New York Fabrics, Jo Ann Fabrics, Jo Ann Etc.

John Stec, Jim Phillips, Dewain Angeietti, Kevin Beegle

5555 Darrow Road

Hudson, OH 44236

216-656-2600, Fax 463-6675

 

Arts/Crafts/Fabrics

The 907-unit chain operates locations nationwide.  The stores, selling fabrics, crafts, floral items and home decor products, occupy spaces of 14,000 sq.ft. to 18,000 sq.ft. (45,000 sq.ft. for the Jo Ann Etc. concept) in freestanding facilities, power and strip centers.  Preferred anchors include department stores and supermarkets.  Plans call for as many as 40 openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include a population of 50,000 within five miles earning $30,000 as the average income.  Leases running 10 years, with options, are typical and the company prefers a vanilla shell.  The company recently acquired House of Fabrics (see page 6).

 

Acme Auto Supply

James Fine

620 Oakwood Avenue

West Hartford, CT 06110

860-246-2540, Fax 525-1868

 

Automotive

The 23-unit chain operates locations in CT.  The automotive parts stores occupy spaces of 1,500 sq.ft. to 6,000 sq.ft. in freestanding facilities.  Plans call for two openings in the coming 18 months.  Expansion will take place in the existing market.

 

Grease Monkey International

Ernie Rice

216 16th Street, Suite 1100

Denver, CO 80202

303-534-1660, Fax 534-2906

 

Automotive

The 216-unit chain operates locations nationwide and in Mexico.  The automotive service centers, offering quick-lube services, occupy spaces of 1,800 sq.ft. in freestanding facilities.  Growth opportunities are sought nationwide.

 

Micro Electronics, Inc.

dba Micro Center

Nancy Klemstine

4119 Leap Road

Hilliard, OH 43026

614-850-3037, Fax 850-3001

 

Computers

The 13-unit chain operates locations in CA, GA, IL, MA, OH, PA, TX and VA.  The computer stores occupy spaces of 40,000 sq.ft. in freestanding facilities and strip centers.  Growth opportunities are sought in AZ, CO, FL, GA, IL, IN, KS, MD, MA, MI, MN, MO, NJ, NC, OH, PA, TX, UT, VA and WI.  Preferred demographics include a population of 200,000 within five miles earning $40,000 as the average income.

 

PC Richard and Son

dba PC Richard

Greg Richards

150 Price Parkway

Farmingdale, NY 11735

516-843-4300, Fax 843-4479

 

Computers

The 38-unit chain operates locations in NJ and NY.  The computer stores occupy spaces of 18,000 sq.ft. to 35,000 sq.ft. in freestanding facilities.  Plans call for as many as five openings in the coming 18 months.  Expansion will take place in the existing markets.

 

A.C.& T. Co., Inc.

dba A.C.T. Foodmart

Mark Fulton

PO Box 4217

Hagerstown, MD 21741-4217

301-582-2700, Fax 582-2719

 

Convenience Stores

The nine-unit chain operates locations in MD, PA and WV.  The convenience stores occupy spaces of 1,500 sq.ft. in freestanding facilities.  Growth opportunities are sought in the existing markets.

 

Happy Harry's, Inc.

dba Happy Harry's Discount Drug

Ralph Larson

210 Executive Drive, Suite 6

Newark, DE 19702

302-453-3160, Fax 453-3196

 

Drug Store

The 34-unit chain operates locations in DE, NJ and PA.  The drug stores occupy spaces of 10,000 sq.ft. in freestanding facilities and strip centers.  Preferred anchors include supermarkets.  Plans call for seven openings in the coming 18 months.  Expansion will take place in DE, Chester County, PA and Cecil County, MD.  Preferred demographics include a population of 30,000 within three miles earning $30,000 as the average income.  Leases running 10 years are typical and the company, which prefers a vanilla shell, cites Eckerd and Rite Aid as competition.

 

One Hour Martinizing Dry Cleaning

Jerry Laesser

2005 Ross Avenue

Cincinnati, OH 45212

513-351-6211, Fax 731-5513

 

Dry Cleaners

The 814-unit chain operates locations nationwide.  The dry cleaners occupy spaces of 1,400 sq.ft. to 2,500 sq.ft. in freestanding facilities, power, specialty and strip centers.  Preferred anchors include CVS, Walgreens and supermarkets.  Plans call for as many as 35 openings in the coming 18 months.  Expansion will take place in CA, CO, FL, MD, MO, NV, NJ, NC, OH, PA and TX.  Preferred demographics include a population of 15,000 within two miles earning $55,000 as the average income.  Leases running five to ten years are typical and the company is franchising.

 

American Entertainment Group

dba Another Universe.com

Patrick McCrane

7321 Gateway Court

Manassas, VA 22110

703-361-9000, Fax 330-8248

 

Entertainment

The six-unit chain operates locations in MD, VA and Washington, D.C.  The stores, selling entertainment products, occupy spaces of 700 sq.ft. to 2,000 sq.ft. in downtown store fronts and regional malls.  Plans call for three openings in the coming 18 months.  Expansion will take place in the Northeastern and Southeastern regions.  Preferred demographics include 75,000 households within five miles earning $60,000 as the average income.  Leases running six years are typical.

 

Clearview Cinema Group, Inc.

dba Clearview Cinema Group

Brett Marx

97 Main Street

Chatham, NJ 07928

973-377-4646, Fax 377-4303

 

Entertainment

The 40-unit chain operates locations in NJ and NY.  The movie theaters occupy spaces of 20,000 sq.ft. to 35,000 sq.ft. in a variety of real estate settings.  Growth opportunities are sought in CT, NJ, NY and PA.  The company is planning to add as many as 40 screens.

 

Pacific Theatres

Neil Haltrecht

120 North Robertson Boulevard

Los Angeles, CA 90048

310-657-8420, Fax 652-8538

 

Entertainment

The 350-unit chain operates locations in CA and HI.  The movie theaters occupy spaces of 50,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls, power, specialty and strip centers.  Preferred co-tenants include book stores, music stores and other entertainment retailers.  Plans call for 10 openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 350,000 within five miles earning $30,000 as the average income.  Leases running 10 to 15 years are typical.

 

Bomgaars Supply

dba Bomgaars

Jane Bomgaars

323 Water Street

Sioux City, IA 51101

712-277-2000, Fax 277-1247

 

General Merchandise

The 11-unit chain operates locations in IA, NE and SD.  The general merchandise stores occupy spaces of 30,000 sq.ft. in freestanding facilities.  Growth opportunities are sought in the existing markets.

 

Odd-Job Stores

Lionel Levey

c/o The Levey Companies, Inc.

1500 Mount Kemble Avenue, Suite 200

Morristown, NJ 07960

973-425-0500, Fax 425-0688

 

General Merchandise

The 34-unit chain operates locations in CT, NJ, NY and PA.  The general merchandise stores occupy spaces of 12,000 sq.ft. to 25,000 sq.ft. in downtown store fronts and strip centers.  Preferred anchors include supermarkets.  Plans call for as many as 15 openings in the coming 18 months.  Expansion will take place in the existing markets.

 

Dellaria Salons

dba Dellaria Hair Salons

Robert Dellaria

159 Cambridge Street

Allston, MA 02134

617-254-1004, Fax 254-7823

 

Hair Salon

The 22-unit chain operates locations in MA, NH, NY and RI.  The hair salons occupy spaces of 1,600 sq.ft. to 1,800 sq.ft. in regional malls.  Growth opportunities are sought in the existing markets.

 

Stine Lumber Co.

Gary Stine

1509 Huntington Street

Sulphur, LA 70663

318-527-0121, Fax 527-2712

 

Home Improvement

The five-unit chain operates locations in LA.  The home improvement centers occupy spaces of 45,000 sq.ft. in freestanding facilities.  Growth opportunities are sought in the Southern region.

 

CRJ, Inc.

dba Chain Reaction Jewelers

Lawrence Weinberg

3111 North University Drive #604

Coral Springs, FL 33065

954-796-2060, Fax 796-2066

 

Jewelry

The 13-unit chain operates locations in CA, FL, PA, TX and VA.  The jewelry stores occupy spaces of 1,000 sq.ft. to 1,250 sq.ft. in outlet centers and regional malls.  Growth opportunities are sought in AZ, CA, FL, PA, TX and VA.  Leases running seven years, with options, are typical.

 

PetsMart

Doug Walrod

19601 North 27th Avenue

Phoenix, AZ 85027