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Issue Number 2
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The
Dealmakers Issue Number 2 for the week of January 23, 1998. My Way by
Ted Kraus A client of
ours got me involved in evaluating various management/leasing companies for
several industrial and office complexes they own. I have no idea why I was at the meetings, since what I know about
industrial and office space leasing and management, most people know about open
heart surgery, but they pay their bills, so I was cooperative. Anyway, it was an extremely interesting
education. The "rain makers"
for the management companies were there in all their glory. Pin stripe suits, Rolex watches, Mont Blanc
fountain pens, the whole nine yards.
They were young and either lawyers who hated law, or MBA's who were
extremely considerate when they talked to me, they used small words. They all explained how great their
accounting software was (that seemed to be the topic they all pushed the most)
and what a great management company they were (of course I never heard anyone
give a presentation saying they stunk). I asked how
their software differed from their competitors and was told how theirs was the
most popular accounting software sold or all the leading banks used it and of
course, everyone's software was user friendly.
There was only one company (four were interviewed) that made an
intelligent statement, they explained how the data could be exported into
dozens of other programs so if the client (in a moment of foolishness) should
ever want to change management companies, the data wouldn't have to be
re-entered. They all explained how they
could produce any type of report we would want and was extremely flexible in
extracting information. I explained, to
no avail, that while the clients were extremely rich, they were not very
sophisticated (the clients didn't appreciate that remark even through it was
true), therefore their report format abilities had limited use, so what else
does the software do for them.
Basically, I received no answer, but they did continue telling us how
computerized they were; e-mail, scanners, tech support, Home Page, etc. I kept asking what that did for
"us" but they continued to ignore me. I got lots
of mumbo jumbo on the "computerization" but little that was really
beneficial to the client. I then asked
how their management was better than the "others" and was told they
were one of the largest management companies in the country or had the most
brokers or the largest in the region. I
asked how that benefited the client and the only somewhat intelligent answer
was that if they purchased property in other parts of the country, they could
continue to deal with just one company.
Now in my opinion, that really doesn't amount to much, since each region
differs in the quality of personnel staffing each office. But for lazy owners I guess it has some
benefits. Oh, I forgot to mention, when
we sat down at the meeting we were handed anywhere from a 70 to 95 page
proposal on how great each company was.
They had bios on all key personnel (but not the shleppers who were
actually going to do the work on these projects), charts, graphs, pictures and
pull outs (unfortunately no centerfold, I guess their politically correct but
with my clients that could have been the deciding factor). If I handed a proposal that long to one of
my clients and then called back to follow up I'd be told by their secretary
they were sleeping, most entrepreneurs seem to have a limited attention
span. I was told by the client that
institutional investors love these long proposals, it looks great at a board
meeting and in the file. Maybe I'll
raise our rates, but provide longer proposals. Well the
conversation continued and I started to ask questions like who would actually
work on the project. I was told it
would be a team of three extremely competent leasing people and five support
people. I then asked their backgrounds
and after eliminating the bull, the three had a combined experience of seven
years, they were all neophytes. He
added that they were supervised by a Senior VP, which is why this was
good, yeah right. There are
few companies or individuals around that belive in computerization and hi-tech
more than I, but the computer is not the end all, people still are. Even the smallest companies can afford and
justify decent accounting software that can provide what information you really
need. I'm not referring to having a
program that can instantly give you the cost of roof repair average in over the
last year or five. If you have a roof
repair problem, get several roofers in, ask questions, gather information, get
bids and then negotiate. Yes, it's nice
to know what the last three roof repairs costs, but each situation is different
and if I need that information, a good secretary can have it to me in five
minutes, I don't need the software specially designed to answer it. Besides
computerization, our industry and nation seems to have a fascination with size
(is it a sex thing?). Bigger is not
necessarily better. It's knowing what
you're doing that counts. In most of
the meetings, we were presented with a corporate chart of "who's who"
in the company along with a flow chart showing who reports to whom. From the client's viewpoint, who cares. I want one individual to call that either
has all the answers or will get back to me with 'em within minutes. I do not want to deal with Kathy in accounting,
Linda in taxes, Sam in leasing and George in insurance. But then again, I prefer my doctor to be a
GP, if I get really sick, I'll see a specialist, but I call my doctor to find
out if the specialist knows what he's talking about. Needless to
say, none of the management companies appreciated my input. Near the end of each meeting we got onto the
subject of fees, which ran the gamut of four to six percent (total income for
the properties was over $15 million).
When I started to compute the numbers I was trying to figure out how to
get the account, but then I figured I'd screw it up, all I understand is
retail. I protested their fees,
explaining the property was in good shape, there was leasing to make money off
of and the industrial property was not labor intensive, but the clients stopped
me, saying these percentages were in the ballpark (I made a mental note of
that, since when I manage for 'em I get three percent). About the only thing I didn't fight was
their leasing commissions of four and half to five percent, which I admit I'm
prejudice on, is fair. I took the
train back to my office after the meetings and therefore had the time (plus I
was bored) to read their proposals.
While extremely well done and expensive to produce, after reviewing 'em
all I realized that all four companies were overstaffed, having three people to
do the job of two or four to the job of two or three. They have to charge high fees to survive since their efficiency
is so low. I realize it's getting
harder everyday for small companies such as mine to compete with these leasing
and management firms, I just can't figure out why. Retailers
Seeking Sites in Kansas & Missouri Goodyear
Tire & Rubber Co. trades as Goodyear (central region) at more than 800
locations in AR, IA, KS, LA, MN, MO, NE, ND, OK, SD and TX. The automotive service centers occupy spaces
of 5,600 sq.ft. to 6,700 sq.ft. in freestanding facilities. Preferred co-tenants include regional
shopping centers. Plans call for at
least 25 openings in the coming 18 months.
Expansion will take place in the metropolitan areas of Kansas City, MO;
Dallas, Fort Worth, Houston and San Antonio, TX. Preferred demographics include a population of 35,000 within
three miles earning at least $50,000 as the average income. Leases running 10 years, with six five-year
options, are typical. For more information, contact Walter
Inglhofer, Goodyear Tire & Rubber Co., PO Box 660245, Dallas, TX 75266;
214-637-9208, Fax 637-9170. Ball's Food
Stores trades as Price Chopper Foods and Hen House Markets at 21 locations in
KS and MO. The supermarkets occupy
spaces of 45,000 sq.ft. to 70,000 sq.ft. in power centers. Plans call for two openings in the coming 18
months. Expansion will take place in
either IA, KS, MO or NE. For more information, contact William White,
Ball's Food Stores, 5300 Speaker Road, Kansas City, KS 66106; 913-321-4223, Fax
551-8503. J.P. Todds,
Inc. trades as J.P. Todds, Sebastians, N. Valentinos and Jordan Windsor at
eight locations in KS and MO. The men's
apparel stores occupy spaces of 3,000 sq.ft. to 4,000 sq.ft. in downtown store
fronts and regional malls. Plans call
for two openings in the coming 18 months.
Expansion will take place in the existing markets. For more information, contact Maurice
Jerwick, J.P. Todds, Inc., 9012 Cody, Overland Park, KS 66214; 913-492-4050,
Fax 492-5875. Growth
Management Corp. does business as Amigo's at 52 locations in KS, MO and
NE. The Mexican fast food restaurants
occupy spaces of 500 sq.ft. to 3,500 sq.ft. in freestanding facilities,
regional malls and strip centers. Growth
opportunities are sought in the existing markets. For more information, contact Roger Moore,
Growth Management Corp., PO Box 6189, Lincoln, NE 68506; 402-488-8500, Fax
488-0926. Fox Photo,
Inc. trades as Fox Photo, CPI Photo, Proex and Fox Photo Image Center Solutions
at 500 locations nationwide, exclusive of the Northwestern region. The stores, selling cameras, film and
related accessories as well as offering photo processing services, occupy
spaces of 1,500 sq.ft. in downtown store fronts, freestanding facilities,
regional malls and strip centers.
Preferred anchors include supermarkets.
Plans call for five openings in the coming 18 months. Expansion will take place in the
metropolitan areas of Kansas City and St. Louis, MO; Denver, CO; TX and Washington,
D.C. Leases running five years are
typical. For more information, contact Daniel Frith,
Fox Photo, Inc., 1706 Washington Avenue, St. Louis, MO 63103; 800-669-9699, Fax
314-621-7258. National
Home Center, Inc. trades as National Home Center at 11 locations in AR. The home improvement centers occupy spaces
of 150,000 sq.ft. in specialty centers.
Preferred co-tenants include Wal*Mart.
Plans call for as many as two openings in the coming 18 months. Expansion will take place in MO and OK. The company cites Home Depot and Lowe's as
competition. For more information, contact Brent Hanby,
National Home Center, Inc., Highway 265 North, Springdale, AR 72765;
501-756-1700, Fax 756-9122. Von Maur,
Inc. trades as Von Maur at 12 locations in IA, IL and NE. The stores, selling apparel and shoes for
the family, occupy spaces of at least 100,000 sq.ft. in regional malls and
specialty centers. Plans call for two
openings in the coming 18 months.
Expansion will take place in the Midwestern region. For more information, contact Terrence
Kilburg, Von Maur, Inc., 6566 Brady Street, Davenport, IA 52806; 319-388-2226,
Fax 388-2242. K-Bob's
Capital Resource Group trades as K-Bob's Steakhouse at 40 locations in CO, KS,
NM, OK and TX. The restaurants occupy
spaces of 7,000 sq.ft. in freestanding facilities and power centers. Plans call for as many as eight openings in
the coming 18 months. Expansion will
take place in the existing markets.
Leases running 20 years are typical and the company is franchising. For more information, contact Edward
Tinsley, K-Bob's Capital Resource Group, 1600 Randolph Road SE #200,
Albuquerque, NM 87106; 505-242-8403, Fax 764-0492. Schnuck
Markets, Inc. trades as Schnuck Markets at 90 locations in IL, IN, KS and MO. The supermarkets occupy spaces of 55,000
sq.ft. to 70,000 sq.ft. in freestanding facilities and strip centers. Preferred co-tenants include TJ Maxx, Target
and Wal*Mart. Plans call for seven
openings in the coming 18 months.
Expansion will take place within a 30 mile radius of St. Louis, MO. Leases running 15 years, with seven
five-year options, are typical. For more information, contact Mark Schnuck,
Schnuck Markets, Inc., 11420 Lackland Road, St. Louis, MO 63146; 314-994-4444,
Fax 994-4450. Edwards
Carpets operates six locations in MO.
The carpet stores occupy spaces of 3,500 sq.ft. to 7,000 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. For more information, contact Mr. Maltzman,
Edwards Carpets, 1000 North Lindbergh, St. Louis, MO 63132; 314-993-0808, Fax
993-5719. Famous Brand
Shoes operates 40 locations in AL, AZ, IL, KS, MO, OH and TX. The men's and women's shoe stores occupy
spaces of 2,500 sq.ft. to 5,000 sq.ft. in strip centers. Plans call for as many as four openings in
the coming 18 months. Expansion will
take place in IL, KS, MO and TX. For more information, contact Robert
Brennan, Famous Brand Shoes, 8620 Olive Street, St. Louis, MO 63132;
314-991-4120, Fax 991-2048. B&B
Movie Company does business as B&B Theaters at 27 locations in KS, MO and
OK. The movie theaters occupy spaces of
13,000 sq.ft. to 25,000 sq.ft. in freestanding facilities, regional malls and
strip centers. Plans call for the
opening of four units in the coming 18 months.
Expansion will take place in the existing markets. Preferred demographics include a population
of 30,000 within 20 miles and leases running 10 years are typical. For more information, contact Robert Bagby,
B&B Movie Company, 114 West Second Street, Salisbury, MO 65281;
816-388-5219, Fax 388-5776. PB & J
Restaurant, Inc. trades as Yia Yia's Eurocafe Bistro, Grand Street Cafe, Coyote
Grill and Paradise Grill at eight locations in CO, KS and MO. The upscale restaurants occupy spaces of
2,900 sq.ft. to 6,000 sq.ft. in freestanding facilities and specialty
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 100,000 within five miles earning $75,000 as the average income. Leases running 10 years are typical and the
company cites California Cafe, Cheesecake Factory and Palomino Grill as
competition. For more information, contact Greg Hirleman,
PB & J Restaurant, Inc., 4740 Grand, Kansas City, MO 64112; 816-561-8000,
Fax 561-8350. Consumers
Food & Drug/Boogaarts Food trades as Consumers Markets at 43 locations in
AR, KS and MO. The supermarkets occupy
spaces of 40,000 sq.ft. in strip centers.
Plans call for five openings in the coming 18 months. Expansion will take place in AR, KS, MO, NE
and OK. For more information, contact Dave Miller,
Consumers Food & Drug/Boogaarts Food, 639 West Chestnut Expressway,
Springfield, MO 65802; 417-866-4305. Earl May
Seed & Nursery operates 54 locations in IA, KS, MO and NE. The stores, selling pet, garden and feed
supplies, occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in freestanding
facilities. Plans call for two openings
in the coming 18 months. Expansion will
take place within the existing markets. For more information, contact Larry Gore,
Earl May Seed & Nursery, 208 North Elm Street, Shenandoah, IA 51603;
712-246-1020, Fax 246-2210. City Blue,
Inc. trades as City Blue at 17 locations in DE, NJ, OH and PA. The stores, selling casual apparel and
footwear, occupy spaces of 3,500 sq.ft. to 5,000 sq.ft. in regional malls. Plans call for as many as three openings in
the coming 18 months. Expansion will
take place in the Midwestern region.
Leases running 10 years are typical. For more information, contact Joe Nadar,
City Blue, Inc., 1141 Chestnut Street, Philadelphia, PA 19107; 215-496-9880,
Fax 496-9881. I.C. Walter
Enterprises, Inc. does business as Dairy Queen at six locations in KS. The ice cream stores occupy spaces of 1,200
sq.ft. to 2,400 sq.ft. in freestanding facilities. Preferred anchors include Wal*Mart and supermarkets. Plans call for one opening in the coming 18
months. Expansion will take place in
Kansas City, MO. For more information, contact Ike Walter,
I.C. Walter Enterprises, Inc., 1100 Park Street, Hoisington, KS 67544-1540;
316-653-2903. Buyers &
Sellers Benj. E.
Sherman & Sons Auction Services Group on behalf of Handy Andy Realty
Company, Inc. recently auctioned seven vacant retail properties in Toledo, OH
(2); Memphis, TN (2); Merrillville, IN; St. Louis, MO and Grand Rapids,
MI. The auction generated $8 million in
sales. The stores ranged in size from
53,760 sq.ft. to 94,801 sq.ft. For more information, contact Robert
Roggeveen at (312-220-9000). Zamias
Services, Inc. has agreed to acquire 10 retail properties from Metropolitan
Life Insurance Co. The projects include
Port Plaza Mall in Green Bay, WI; Brickyard Mall in Chicago, IL; Beechmont Mall
in Cincinnati, OH; Euclid Square Mall in Cleveland, OH; Rhode Island Mall in
Warwick, RI; Cranberry Mall in Cranberry, PA; Mercer Mall in Bluefield, WV;
Orange Blossom Mall in Fort Pierce, FL; Palisades Center in Birmingham, AL and
Belle Promenade in New Orleans, LA.
Terms of the deal were not disclosed. For more information, contact Zamias
Services, Inc. at (814-535-3563). Kranzco
Realty Trust recently agreed to acquire five shopping centers in the metropolitan
Atlanta, GA area for $44 million. The
projects include the 231,600 sq.ft. Village at Mableton; the 180,500 sq.ft.
North Park Center; the 46,000 sq.ft. Park Plaza; the 48,000 sq.ft. Tower Plaza
and the 105,400 sq.ft. Holcomb Bridge Crossing. For more information, contact Kranzco Realty
Trust at (610-941-9292). Rein &
Grossoehme brokered the sale of Dobson Shores Plaza in Mesa, AZ. The 26,676 sq.ft. project was acquired by
Horizon Acquisitions from Developers Diversified for $1.8 million. For more information, contact Mark Rein at
(602-954-7217). Pan Pacific
Retail Properties, Inc. recently acquired Tustin Heights Center in Tustin, CA
for $14.7 million. The 132,000 sq.ft.
project is anchored by Ralphs Supermarket, Longs Drugs and Michael's Arts &
Crafts. The company also recently
acquired Palmdale Center in Palmdale, CA for $4.6 million. The 81,000 sq.ft. project is anchored by
Smart & Final, Rite Aid and Pic 'N Save. For more information, contact Pan Pacific
Retail Properties at (760-727-1002). Alper
Commercial Realtors has the listing to sell Cedar Square Shopping Center in
Seaville, NJ. The project is anchored
by a supermarket and has a dark Jamesway on a ground lease. For more information, contact Susan
McGaughran at (609-345-1800), Fax (345-8228). Federal
Realty Investment Trust recently acquired Magruder's Center and Courthouse
Center in Rockville, MD for approximately $12.6 million. The projects are located at opposite corners
of the intersection of Washington Street and Middle Lane. Magruder's Center is a 104,000 sq.ft.
project anchored by Magruder's supermarket and CVS. Courthouse Center is a 34,000 sq.ft. project anchored by a restaurant
and service oriented tenants. For more information, contact Jeff Berkes at
(301-998-8148). Sentry
Commercial Real Estate Services, Inc. has the listing to sell a 24,280 sq.ft.
shopping center in Vernon, CT. The site
is 78% leased and has an NOI of $129,677.
The asking price is $1.1 million. For more information, contact Curt Gemme at
(860-528-0884). Westfield
America recently acquired The 1.8 million sq.ft. Northwest Plaza in St. Ann, MO
from Paramount Group for $111 million. For more information, contact Westfield
America at (310-445-6800). Excel Realty
Trust recently acquired a 340,000 sq.ft. power center in Westminster, CO; a
208,000 sq.ft. Wal*Mart anchored center in Winchester, TN and the 680,000
sq.ft. Clearwater Mall in Clearwater, FL.
The combined purchase price was $79.4 million. For more information, contact Excel Realty
Trust at (619-485-9400). Mansur &
Company and PTM Development Company, in a joint venture, recently acquired The
Fashion Mall Complex in Plantation, FL for $68 million. The complex is comprised of a 660,000 sq.ft.
multi-level enclosed mall, a 101,000 sq.ft. office building and a 263-unit
Sheraton Suites Hotel. The mall is
anchored by Macy's and Lord & Taylor and features retailers Ann Taylor, The
Limited, The Gap, The Disney Store, Williams Sonoma, Cache and Talbots. The new owners plan to expand the project
and add a 24-screen movie complex, restaurants and fashion boutiques. For more information, contact Seth Briggs,
Jr. at (312-263-2400). Grubb &
Ellis of Metropolitan Washington, D.C. represented KinderCare Learning Centers,
Inc. in its acquisition of 3.15 acres of land, including a 9,766 sq.ft.
building in Reston, VA. The company
plans to open a daycare center on the site. For more information, contact Philip Meany,
Jr. at (703-918-0250). Grubb &
Ellis of Los Angeles represented Lambert LLC in its acquisition of La Brea
Center in Los Angeles, CA. The 21,288
sq.ft. project is anchored by Aaron Brothers and was sold by Freedom Trust for
$3.9 million. For more information, contact Tim Smith at
(714-937-0881). MBK Real
Estate Ltd. recently acquired Parkway Plaza and Pavilion Mall in Tukwila, WA
from ERE Yarmouth. MBK plans to
redevelop both properties into what will be known as Parkway SuperCenter, a
600,000 sq.ft. shopping and entertainment complex. Construction of the project is expected to begin during the first
quarter this year and finish during the third quarter. Total acquisition and redevelopment costs
are projected to exceed $80 million. For more information, contact MBK Real
Estate at (714-789-8300), Fax (789-8345). Cohen and
Company, Inc. Real Estate represented a New York based limited partnership in
its acquisition of Midway Plaza in Tamarac, FL. The 220,271 sq.ft. project is anchored by Publix supermarket. The seller was a CT life insurance company. For more information, contact Helen
Putterman or Phyllis Bosworth at (212-679-1222), Fax (679-1533). Who's
Opening & Where Fazoli's
(606-268-1668) recently opened the chain's 300th unit when it opened at Hamburg
Place in Lexington, KY. The company's
overall goal is to double its store count by 2002 while expanding nationwide. CompUSA,
Inc. (972-982-4000) recently opened a 30,000 sq.ft. store adjacent to Boulevard
Mall in Buffalo, NY and a 26,600 sq.ft. store in Roseville, CA. Kmart
(810-643-1000) recently broke ground on a 140,000 sq.ft. Super Kmart in
Detroit, MI. The store will be the
first for the city of Detroit and it is expected to open later this year. Grill
Concepts, Inc. (310-820-5559) plans to open a 6,400 sq.ft. Daily Grill
restaurant at Tysons Galleria in Tysons Corner, VA during the Summer and a The
Grill on the Alley restaurant inside the Fairmount Hotel in San Jose, CA. Stater Bros.
Markets (909-783-5002) plans to open a 37,000 sq.ft. supermarket in Loma Linda,
CA during Spring. Circuit City
Stores (804-527-4000) and Barnes & Noble ( 212-633-3300) plan to share a
site on the Upper East Side of Manhattan, NY.
Barnes & Noble will occupy most of the ground floor with Circuit
City occupying a portion of the ground floor and the basement. The store is expected to open late this
year. The Great
American Backrub Store (813-532-4818) is planning to open franchised stores in
Toronto, Canada and TX. Popeyes
Chicken & Biscuits (770-353-3148) plans to open 100 restaurants in the
Carolinas this year. Markets targeted
for stores include Charlotte, Raleigh-Durham, Winston-Salem, Asheville and
Greensboro, NC and Columbia and Greenville, SC. Walgreen Co.
(847-940-2500) plans to enter the Hampton Roads, VA market with four stores
this year. Best Buy
Co., Inc. (612-947-2000) plans to enter the New England market this year with
stores in South Portland, ME; Framingham and Braintree, MA. Each store will occupy approximately 45,000
sq.ft. A&W
Restaurants, Inc. (313-462-0029) recently opened a restaurant in Qatar. The company is planning to open units in
Cairo, Egypt and in the United Arab Emirates this year. Wolf Camera
(404-633-9000) plans to open a store at Village Green Shopping Center in
Houston, TX during Spring. The company
recently opened a camera store in downtown Chicago, IL. PetsMart
(602-944-7070) plans to open a 26,000 sq.ft. store in Rocky Hill, SC this year. Eatzi's
Market & Bakery (972-770-9445) plans to open restaurants inside of Macy's flagship
Herald Square store in New York, NY; in Atlanta, GA's Buckhead area and in
Westbury, Long Island, NY this year. Financial
News Circuit City
Stores, Inc. (804-527-4000) reported that its third quarter net earnings were
$11.9 million, compared to $19.8 million during the third quarter last
year. Total sales increased 15% to
$2.14 billion from $1.86 billion last year.
In the Circuit City Group, third quarter earnings fell to $21.1 million
from $23.7 million last year with net earnings down to $14 million from $19.8
million. Sales increased 10% to $1.92
billion from $1.75 billion, but comparable store sales were down two percent
for the quarter. In the CarMax Group, a
net loss of $9.1 million was reported, compared to a net loss of $3.9 million
last year. Sales increased 92% to
$227.1 million from $118.4 million and comparable store sales were up four
percent for the quarter. During the
quarter, the company opened 33 Circuit City stores and three CarMax
locations. Currently, the company operates
493 superstores, 52 mall-based Circuit City Express stores, four consumer
electronics-only stores and 14 CarMax locations nationwide. AutoZone,
Inc. (901-495-6500) reported that net income during its first fiscal quarter
increased 25% to $47.5 million from $38 million during its first quarter last
year. Sales for the first quarter
increased 19% to $675.3 million from $569.1 million last year with comparable
store sales up seven percent. During
the quarter, the company opened 44 stores and has plans to open 350 stores
during fiscal 1998. Currently, the
company operates 1,772 stores in 32 states. Bed Bath
& Beyond, Inc. (201-379-1750) reported that its third quarter net sales
increased 30.8% to $281 million from $214.8 million during the third quarter
last year. Net earnings increased 36.5%
to $18.9 million from $13.9 million last year.
Through the first three quarters, the company opened 33 stores and is
planning to open 40 stores during fiscal 1998.
Currently, the company operates 141 stores in 29 states. Lamonts
(206-644-5700) recently had its reorganization plan approved by the bankruptcy
court. The company entered Chapter 11
protection during January 1995 and closed 10 stores in the past three years. The company currently operates 38 apparel
stores in AK, ID, OR, UT and WA and has plans to reopen four of the closed
stores. Convenience
Stores Looking for Sites Nationwide Grace Energy
Corp. trades as Fast Trip and Snak-Atak at 40 locations in AR, KS, MO and
OK. The convenience stores occupy
spaces of 3,600 sq.ft. in freestanding facilities located on corner lots. Plans call for three openings in the coming
18 months. Expansion will take place in
AR and MO. The company prefers to
purchase its locations. For more information, contact Jerry Perry,
Grace Energy Corp., PO Box 514, Hawthorne, MO 64836-9806; 417-358-7300, Fax
358-4104. Arens Oil,
Inc. does business as Kwik Store at 19 locations in MO. The convenience stores, which also sell
gasoline, occupy spaces of 2,400 sq.ft. to 3,000 sq.ft. in freestanding
facilities. Growth opportunities are
sought in the existing market. For more information, contact Dick Arens,
Arens Oil, Inc., PO Box 106, Montgomery, MO 63361; 573-564-2107, Fax 564-3036. Git 'N Go,
Inc. trades as Git 'N Go at 107 locations in MO and OK. The convenience stores occupy spaces of
3,200 sq.ft. in freestanding facilities.
Plans call for as many as 10 openings in the coming 18 months. Expansion will take place in the existing
markets. For more information, contact Tom Waddle,
Git 'N Go, Inc., PO Box 21279, Tulsa, OK 74121; 918-250-0200, Fax 254-9727. Conoco, Inc.
trades as Conoco/Jet at 352 locations in AL, CO, DE, KS, MN, MS, NC, OK, TN, TX
and UT. The convenience stores, which
also sell gasoline, occupy spaces of 1,200 sq.ft. to 2,500 sq.ft. in
freestanding facilities. Plans call for
20 openings annually. Expansion will
take place in CO, KS, MO, OK and TX.
The company is franchising. For more information, contact K.G. Williams,
Conoco, Inc., PO Box 4784, Houston, TX 77252; 281-293-5470, Fax 293-3610. Tri-Lake
Petroleum trades as Prime Time Stores at 27 locations in AR, KS and MO. The convenience stores occupy spaces of
3,000 sq.ft. in freestanding facilities.
Plans call for three openings in the coming 18 months. Expansion will take place in KS and MO. The company prefers to locate its stores in
small rural and medium-sized towns and leases running 40 years are typical. For more information, contact Steve Wood,
Tri-Lakes Petroleum, Highway 76 East, Branson, MO 65616; 417-334-3940, Fax
334-7042. Casey's
General Stores, Inc. trades as Casey's General Stores at 1,079 locations in IL,
IN, IA, KS, MN, MO, NE, SD and WI. The
convenience stores, which also sell gasoline, occupy spaces of 2,720 sq.ft. in
freestanding facilities. Plans call for
110 openings in the coming 18 months.
Expansion will take place in the existing markets, excluding WI. For more information, contact Les Knust,
Casey's General Stores, Inc., PO Box 3001, Ankeny, IA 50021; 515-965-6100, Fax
965-6160. Consun Food
Industries, Inc. trades as Convenient Food Mart at 32 locations in OH. The convenience stores, which also sell
gasoline, occupy spaces of 3,000 sq.ft. in freestanding facilities. 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 is franchising. For more information, contact Roger Mcvetta,
Consun Food Industries, Inc., 123 North Gateway Boulevard, Elyria, OH 44035;
216-322-6301. Eastern
Petroleum Corp. does business as EP Food Marts at 10 locations in NC. The conveinence stores occupy spaces of
1,200 sq.ft. to 2,000 sq.ft. in freestanding facilities. Preferred anchors include Wal*Mart and
supermarkets. Plans call for the
opening of four units in the coming 18 months.
Expansion will take place in the existing market. Preferred demographics include a population
of 50,000 within 10 miles earning $35,000 as the average income. Leases running 20 years are typical. For more information, contact L.W. Locke,
Eastern Petroleum Corp., 347 Ringwood Road, Enfield, NC 27823; 919-445-5131,
Fax 445-3634. Grimsley Oil
Co. trades as Stop-N-Shop at 10 locations in central FL. The convenience stores occupy spaces of
2,500 sq.ft. in freestanding facilities.
Preferred anchors include Wal*Mart and supermarkets. Growth opportunities are sought in the
existing market. Leases running one to
ten years are typical. For more information, contact Denise
Grimsley Shumard, Grimsley Oil Co., 515 South 6th Avenue, Wauchula, FL 33873;
941-773-3135, Fax 773-9741. Lease
Signings Newcastle
Properties LLC (847-480-9700) leased 26,970 sq.ft. to Michaels, 4,793 sq.ft. to
Fitness Warehouse and 5,360 sq.ft. to Expo Kitchen & Bath at Bloomingdale
Square in Bloomingdale, IL; 8,300 sq.ft. to Family Dollar and 3,000 sq.ft. to
Rent A Center at Columbia Plaza in Hammond, IN; 6,620 sq.ft. to Goodyear Tire
and 2,860 sq.ft. to Sterling Automotive at Bloomingdale AutoCare Center in
Bloomingdale, IL; 6,000 sq.ft. to TTC, Inc., 2,428 sq.ft. to Little Professor
Books, 1,454 sq.ft. Volkman's Jewelers, 1,400 sq.ft. Check Into Cash and 5,945
sq.ft. to Rent A Center at Meadowview Shopping Center in Kankakee, IL; 5,000
sq.ft. to Foot Locker at Southwest Square in Harvey, IL; 5,000 sq.ft. to Forest
City Auto Parts at Schererville Plaza in Schererville, IN; 4,000 sq.ft. to
Gandy Dancer Restaurant and 3,000 sq.ft. to Indian Palace at Ogden Mall in
Naperville, IL; 2,446 sq.ft. to Rental Express and 1,274 sq.ft. to Fannie May
Candies at Market Square in Bolingbrook, IL; 1,350 sq.ft. to Loanco at
University Plaza in Peoria, IL and 1,200 sq.ft. to KC Nails at Sun Plaza in
Kenosha, WI. Equity
Properties, Inc. (610-645-7700) leased 1,893 sq.ft. to Huntington Learning
Center at Ardmore Plaza in Ardmore, PA. Coldstream
Real Estate Advisors and Pyramid Advisory Services Group (315-445-1030) jointly
negotiated a build-to-suit, long-term lease for an 11,400 sq.ft. Agway store in
Somersworth, NY. Sigma
National, Inc. (804-320-6100) leased 15,008 sq.ft. to Egghead Computers at
Libbie Place Shopping Center in Richmond, VA and 2,140 sq.ft. to General
Nutrition Center at Denbigh Village in Newport News, VA. Birchwood
Realty (616-526-2156) leased 11,060 sq.ft. spaces to Rite Aid in Portage, St.
Johns, Grayling, Gaylord, Oscoda and Petoskey, MI. Grubb &
Ellis (703-918-0250) leased 1,791 sq.ft. to MyFlorist in Washington, D.C.;
3,027 sq.ft. to Koo Koo Roo at the Metropolitan Building in Bethesda, MD and
2,700 sq.ft. to Koo Koo Roo at Merrifield Restaurant Park in Merrifield, VA. Metro
Commercial Real Estate (609-866-1900) leased 13,345 sq.ft. to Gateway 2000 at
Today's Man Plaza in Langhorne, PA. Sources of
Financing Nomura Asset
Capital Corp. (212-667-1850) recently committed to lend $280 million to the
developer of Providence Place Mall in Providence, RI. The new loan makes Nomura the project's biggest lender, having
pledged three-quarters of the mall's financing. First Union
Real Estate Investments (216-781-4030) recently signed a $125 million revolving
credit facility with a syndicate of six banks led by National City Bank, with
Bankers Trust and Key Bank NA as co-agents.
The other banks include Huntington Bank, Mellon Bank and FirstMerit
Bank. The credit arrangement provides
First Union with additional flexibility with its strategic plan to pursue
acquisitions. The
Ackman-Ziff Real Estate Group (212-697-3333) recently arranged acquisition,
permanent and joint venture equity financing of $43.8 million on two regional
malls in TX. Ramco-Gershenson
Properties Trust (248-350-9900) announces that it recently closed on a $50
million permanent loan with an affiliate of Morgan Stanley Capital, Inc. The interest rate on the loan is 6.83% and
the term is 10 years. Mergers
& Acquisitions Southern
Retailers, Inc. (804-550-9627), owner of the 22-unit Southern Express
convenience store chain, plans to acquire the 42-unit Fas Mart Convenience
Stores, Inc. Southern Retailers plans
to convert its stores to the Fas Mart name and the new company will operate 65
convenience stores in VA. Raley's
Supermarkets and Drug Centers (916-373-3333) recently agreed to acquire the
27-unit Nob Hill Foods chain in CA. The
merger will give Raley's 115 supermarkets and combined sales of nearly $2.4
billion. The deal is expected to be
finalized this month. Food Tenants
Hungry for Sites Nationwide Successful
Sub Restaurant, Inc. trades as Premo's Sub at four locations in FL. The submarine sandwich shops occupy spaces
of 1,200 sq.ft. in downtown store fronts.
Plans call for three openings in the coming 18 months. Expansion will take place in southeastern
FL. Leases running five years are
typical. For more information, contact Scott Pence,
Successful Sub Restaurant, Inc., c/o Neal Realty & Investments, 3308 NE
32nd Street, Fort Lauderdale, FL 33308; 954-568-0530, Fax 568-2134. Back Yard
Burgers, Inc. trades as Back Yard Burgers at 77 locations in AL, AR, FL, GA,
KS, KY, LA, MS, MO, NC, OH, OK, SC, TN and TX.
The restaurants, serving gourmet hamburgers and chicken sandwiches,
occupy spaces of 1,800 sq.ft. to 3,000 sq.ft. in freestanding facilities. Preferred anchors include Kmart, Wal*Mart
and supermarkets. Plans call for at least
30 openings in the coming 18 months.
Expansion will take place in the Midwestern, Southeastern and lower
Mid-Atlantic regions. Preferred
demographics include a population of 50,000 within three miles earning $35,000
as the average income. Leases running
10 years, with four five-year options, are typical and the company is
franchising. For more information, contact Ray Jones,
Back Yard Burgers, Inc., 2768 Colony Park Drive, Memphis, TN 38118;
901-367-0888, Fax 367-0999. Rare
Hospitality International, Inc. does business as Longhorn Steakhouse, Bugaboo
Creek Steakhouse and Capital Grill at 101 locations in AL, CT, FL, GA, IL, KY,
MA, MI, MN, MO, NY, NC, OH, RI, SC, TN, TX, VA and Washington, D.C. The steakhouses occupy spaces of 5,000
sq.ft. to 7,000 sq.ft. in freestanding facilities. 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 Boswell Road, Building
200, Atlanta, GA 30350; 770-399-9595, Fax 551-6686. Sunbelt
Ventures, Inc. trades as Surf City Squeeze at 120 locations in AZ, CA, CT, FL,
GA, IL, MD, MI, MO, NV, NJ, NY, OH, PA and WA.
The juice bars, serving smoothies with and without nutritional
supplements, occupy spaces of 500 sq.ft. to 750 sq.ft. in downtown store
fronts, regional malls, outlet and power centers. Plans call for as many as 30 openings in the coming 18
months. Expansion will take place
nationwide, with a particular emphasis on CA, FL, GA, IL, MI, TX, VA and
WA. International expansion is also
sought. Leases running seven years are
typical and the company is franchising. For more information, contact Kevin
Blackwell, Sunbelt Ventures, Inc., 7730 East Greenway Road, Suite 203,
Scottsdale, AZ 85260; 602-443-0200, Fax 443-1972. Cucina
Holdings trades as Java City at 45 locations in AZ, CA, TX and WA. The stores, serving gourmet coffee and baked
goods, occupy spaces of 2,000 sq.ft. in regional malls and strip centers. Plans call for as many as four openings in
the coming 18 months. Expansion will
take place in southern CA and the Phoenix, AZ area. Leases running 10 years are typical. For more information, contact Sandra Anders,
Cucina Holdings, 717 West Del Paso Road, Sacramento, CA 95824; 916-565-5500,
Fax 565-5519. Ameci Pizza
& Pasta, Inc. trades as Ameci Pizza & Pasta at 41 locations in AZ, CA
and NV. The Italian fast food
restaurants occupy spaces of 1,200 sq.ft. in strip centers. Preferred anchors include supermarkets. Plans call for five openings in the coming
18 months. Expansion will take place in
the Southwestern region. Preferred demographics
include a population of 30,000 within two to three miles earning $50,000 as the
average income. The company is
franchising. For more information, contact Nick Andrisan,
Ameci Pizza & Pasta, Inc., 6603 Independence Avenue, Canoga Park, CA 91303;
818-712-0110, Fax 712-0792. Moestogo
Corporation trades as Moe's Italian Sandwiches at 17 locations in ME, MA and
NH. The restaurants, serving specialty
sandwiches, occupy spaces up to 1,000 sq.ft. in strip centers. Preferred co-tenants include video
stores. Plans call for as many as three
openings in the coming 18 months.
Expansion will take place in New England. Preferred demographics include a population of 20,000 within five
miles earning $30,000 as the average income.
Leases running five years, with a five-year option, are typical and the
company is franchising. For more information, contact Mary Jane S.
Keane, Moestogo Corporation, 95 Court Street, Portsmouth, NH 03801;
603-431-0005, Fax 431-5845. Tom's
Drive-Ins operates six locations in WI.
The fast food restaurants occupy spaces of 2,500 sq.ft. to 3,500 sq.ft.
in freestanding facilities. Plans call
for two openings in the coming 18 months.
Expansion will take place in the existing market. Preferred demographics include a population
of 100,000 within five miles earning $28,000 as the average income. Leases running 20 years are typical. For more information, contact Scott
Grishaber, Tom's Drive-Ins, 436 South Commercial Street, Neenah, WI 54956;
920-729-1980, Fax 729-1664. The Potato
Sack, Inc. trades as The Potato Sack at six locations in FL and PA. The restaurants, serving gourmet topped
baked potatoes, French fries and potato skins, occupy spaces of 700 sq.ft. in
regional malls. Plans call for two
openings in the coming 18 months.
Expansion will take place in the existing markets. Preferred demographics include a population
of 750,000 within four miles earning $50,000 as the average income. Leases running seven to ten years are
typical and the company is franchising. For more information, contact Eugene
Pasquini, The Potato Sack, Inc., 201 Monroeville Mall, Monroeville, PA 15146;
412-373-0850, Fax 373-4497. Perkins
Restaurants trades as Perkins Family Restaurants at 470 locations nationwide,
exclusive of CA, TX, NM, NV, WV and the New England states. The family restaurants occupy freestanding
facilities on land areas running 50,000 sq.ft. to 60,000 sq.ft. Preferred anchors include Kmart, TJ Maxx,
Wal*Mart and supermarkets. Plans call
for 60 openings in the coming 18 months.
Expansion will take place in the Northeastern, Midwestern, Southeastern,
Mid-Atlantic and Plains states regions.
Preferred demographics include a population of 30,000 within five miles
earning at least $35,000. Leases
running 20 years are typical and the company, which is franchising, cites Bob
Evans, Denny's and I-Hop as competition. For more information, contact Buzz Wires,
Perkins Restaurants, 6075 Poplar Avenue #800, Memphis, TN 38119; 901-766-6491,
Fax 537-7100. Fresh Blend,
Inc. trades as Fresh Blend Smoothie & Juice Bar at 12 locations in CA and
NV. The stores, selling smoothies,
fresh squeezed juices and healthy snacks, occupy spaces of 900 sq.ft. to 1,500
sq.ft. in downtown store fronts, freestanding facilities, specialty and strip
centers. Preferred anchors include
supermarkets and entertainment retailers.
Plans call for as many as 18 openings in the coming 18 months. Expansion will take place in the existing
markets. Preferred demographics include
a population of 30,000 within one mile earning $45,000 as the average
income. Leases running five years, with
a five-year option, are typical. For more information, contact Brad Skepner,
Fresh Blend, Inc., 801 San Ramon Valley Boulevard, Danville, CA 94526;
510-837-1936, Fax 837-1938. Carvel Corp.
trades as Carvel Ice Cream Bakery at 450 locations in CT, DE, FL, GA, MD, MA,
NH, NJ, NY, NC, PA and RI. The stores,
selling ice cream cakes, occupy spaces of 200 sq.ft. to 1,500 sq.ft. in
freestanding facilities, power centers and regional malls. Preferred anchors include Wal*Mart and
supermarkets. Plans call for 30
openings in the coming 18 months.
Expansion will take place along the Eastern seaboard. Preferred demographics include a population
of 30,000 within one mile earning $40,000 as the average income. Leases running 10 years, with a 10-year
option, are typical and the company is franchising. For more information, contact Richard Carlo,
Carvel Corp., 20 Batterson Park Road, Farmington, CT 06032; 860-677-6811, Fax 677-8211. Uno
Restaurant Corp. trades as Uno's Pizzeria at 160 locations in more than 20
states. The casual theme pizza and
pasta restaurants occupy spaces of 5,500 sq.ft. to 6,300 sq.ft. in freestanding
facilities, power centers and regional malls.
Plans call for as many as 12 company store openings in the coming 18
months. Expansion will take place in
CT, FL, IL, ME, MD, MA, NH, OH, RI and VT.
Preferred demographics include a population of 125,000 to 150,000 within
five miles earning $40,000 as the median household income. Leases running 20 years are typical and the
company is franchising. For more information, contact Mauirce Molod,
Uno Restaurant Corp., 100 Charles Park Road, Boston, MA 02132; 617-323-9200,
Fax 323-7170. Shari's
Management Corp. trades as Shari's Restaurants at 96 locations in CA, CO, ID,
NE, OR, WA and WY. The restaurants
occupy spaces of 3,950 sq.ft. in freestanding facilities. Plans call for as many as four openings in
the coming 18 months. Expansion will
take place within the existing markets.
Leases running 20 years, with two five-year options are typical. For more information, contact Dick Olsen,
Shari's Management Corp., 8205 SW Creekside Place, Beaverton, OR 97008-7112;
503-605-4299, Fax 605-4294. Exclusives Grubb &
Ellis Company (800-264-0456) has been named the disposition agent for Rickel
Home Centers, Inc. real estate holdings.
The portfolio of leaseholds includes approximately 50 locations
throughout DE, NJ, NY and PA. All bids
are to be sent to Grubb & Ellis' West Orange, NJ office and interested
parties may bid on the entire portfolio or select leaseholds. Located in strip malls, power centers or
freestanding buildings, the 50 properties available range in size from 25,000
sq.ft. to 150,000 sq.ft. Additionally,
Rickel's 790,000 sq.ft. warehouse distribution leasehold in South Plainfield,
NJ is for sale. DJM Asset Management,
Inc. is working with Grubb & Ellis in conjunction with the disposition. Garrick-Aug
Associates (212-557-9090) is the tenant representative for Cole Vision
Corporation, dba Sears Optical, in NJ and Long Island, NY. The company is seeking sites running 1,000
sq.ft. to 1,200 sq.ft. in supermarket, discount department store and/or fashion
store anchored centers. The company is
the tenant representative for NTB in the NY tri-state area and upstate NY. The company is seeking freestanding
facilities running 9,000 sq.ft. to 16,000 sq.ft. on approximately one to one
and half acres of land. The company is
the tenant representative for Sears Hardware in the NY tri-state area and
upstate NY. The company is seeking
spaces running 25,000 sq.ft. to 40,000 sq.ft. in freestanding facilities and
strip centers. Vacant land for
development is also being sought.
Preferred co-tenants are supermarkets, drug stores, discount department
stores and specialty stores. The
company is also the tenant representative for Parts America in the NY tri-state
area and upstate NY. The company is
seeking freestanding sites running 8,000 sq.ft. on approximately one acre of
land. Julius M.
Feinblum Real Estate, Inc. (516-844-8890) is the tenant representative of
Sleepy's The Mattress Professionals which is seeking spaces running 5,000
sq.ft. to 15,000 sq.ft. in Long Island City, Brooklyn, Bronx, Suffolk County
and Nassau County, NY. The company is
also the tenant representative for Oreck which is seeking spaces running 1,000
sq.ft. to 1,500 sq.ft. in Paramus, Wayne, Parsippany, Morristown, Livingston,
Woodbridge, East Hanover, Union, Watchung, Middletown, Eatontown, Freehold,
Marlboro and Manalapan, NJ. Th |