The Dealmakers Issue Number 3 for the week of January 30, 1998.

 

My Way by Ted Kraus

 

Ann and I finished our Christmas shopping in November since we intended to be out of town for Christmas, but I forgot to make reservations to go anywhere until December 10th and the cheapest airfare and hotel accommodations I could find was $6,000 for five days in Puerto Rico, which we refused to do.

 

Anyway, we stayed at home but with the distinct advantage of not being caught up in the Christmas havoc, and had the pleasure of being voyeurs instead of chaotic participants in Christmas.  Then everything started to go haywire.  First an order we placed with Cheryl & Co. Cookies for 125 people got screwed up and we ended up filing complaints with the Attorney Generals for New Jersey and Ohio, along with the FTC.  Then we "discovered" a few people who we had forgotten to get gifts for, so off shopping we went.

 

Now I understand why retailers in general did not have a good holiday season, even though every indication was that it would be a home run.  Retailers as a rule are incompetent, deserve no loyalty from their customers and deserve to go bankrupt.

 

Williams-Sonoma's store in Princeton, NJ had no merchandise to buy, the shelves were empty; the same was true for The Limited.  Both Toys 'R Us and Warner Brothers had lots of cash registers, however only two or three were ever open.  (Didn't anyone ever tell 'em it was Christmas?)

 

Now don't get me wrong, there are good retailers also and the public knows 'em and they vote for them by shopping there and buying often.  We live in the Princeton, NJ area and there's a Wal*Mart and Kmart next to each other near our house.  I drive by the stores two or three times a day and can see their parking lots from the road.  Wal*Mart's lot is always jammed, Kmart's is lonely.  Same market, same location, same type of retailer, but substantially different sales numbers.  The public votes.

 

We went into Nordstroms and Ann asked the salesperson if she could leave some packages behind the counter while she shopped.  The salesperson said "No problem, but if you like, our concierge would be glad to come and get 'em and hold the items until your done shopping for the day.  You can even shop the other stores in the mall and we'll be glad to hold them."  While I'm not a Nordstroms person, they got two brownie points when I heard that.

 

I went into Eddie Bauer and could not ask for a more courteous  salesclerk.  When I asked about a particular item, she walked me to the section, asked my size, color preference and then found what I was asking for.  Once I decided what I wanted, she walked me to the register and finalized the sale.  I like this store.  I then walked into Tiffany's and had difficulty getting a salesperson even though there was only one other customer in the store.  The three salespeople were busy having a private discussion among themselves (I guess they don't work on commission).  I assumed it was because I was unshaven and wearing old blue jeans.  I should be thankful, their incompetency probably saved me a couple of thousand dollars.

 

Next we went into Macy's, a store that I've always had high esteem for, since I use to shop there every Saturday in downtown Newark with my mom as a kid (if I was good, I'd get a toy and a pretzel).  My, how the mighty have fallen.  They must have hired a whole bunch of former Kmart executives.  They typified poor service.  Kohl's Department Store recently opened near our house and I hadn't been in one of their stores in years, so we decided to check 'em out.  Either I've become substantially more sophisticated over the years (which I doubt) or they've lost their touch.  They were somewhere between a Wal*Mart and Macy's, carrying Wal*Mart goods at Macy's prices.  It made no sense.  I'm not saying the people in the Northeast are sharp consumers, but they're not stupid, the store won't make it.  If they were in a middle market with limited competition then yes, their approach makes sense, but when you have a competitor at every street corner it doesn't.

 

Finally we went into Bloomingdale's to make an exchange.  The salesperson was extremely rude, to the extent I asked him to get the store manager.  Unfortunately, the fish stinks from the head down and the manager was no better.  The only thing that made me feel better was while waiting for the manager to arrive, I noticed the salesperson treat an elderly gentlemen as poorly as he treated us even though the customer wanted to purchase three sweaters worth $1,000.  It took the customer two full minutes to believe that a clerk in Bloomingdale's was being rude when he was trying to make this purchase.  When it finally dawned on him, he walked out.  So it wasn't Ann or myself that caused the problems, it's the incompetency of the store.  However, in fairness, I have to blame the public for putting up with it.  If the public had brains they wouldn't tolerate incompetency.

 

I went into a "better" men's clothing store (Ann's been on my case to buy some new clothes) and tried unsuccessfully to get a salesman.  Finally, in desperation, I lit up a cigarette and sure enough within ten seconds three people came over to say that I couldn't smoke in the store.  No one noticed me as a customer, but man were they quick to complain about a little smoke.

 

Finally, to end our saga, we went into Ikea, which provides minimum service, but whatever their doing is right, since you could take the traffic in two Home Depots and three Wal*Marts and it wouldn't match the crowd in this one store.

 

Now as real estate people we have little or no control over operations.  So even if you agree with everything I said, there's nothing we can do, except wait for them to go under (and then laugh).  However, long, long ago in a far and distant land, leasing agents/developers cared about tenant mix and the quality of tenants being placed in our centers, today only the credit worthiness seems to matter.  Maybe we should go back to yesteryear and start to be selective on who we put in our centers.  In the long run, it would increase the value of the property.  Ann and I went into a center the other day that had two cosmetic retailers and two card shops.  When I mentioned the whoriness of this to the owner, who's a friend, he tried to justify his stupid decision by explaining that one cosmetic tenant was high end, the other low end.  The fact that 90% of their merchandise overlaps is immaterial.  The card shops were different because they sold different brands.  If your a hooker working 42nd Street, admit you're a whore, don't tell me you're doing market research on the sex habits of New Yorkers.

 

I personally belive that one of the prime reasons retail has had poorer than expected Christmas's three years in a row, even with a booming economy is that shopping, which used to be America's favorite sport, is no longer fun or pleasant and for that I blame the retailers.  They spend millions of dollars on leasehold improvements and computerization and then spend $5.50 an hour on 19-year-old girls to fulfill the customers needs... duh.  I'm sure there's some stupid executive at Macy's vacationing on the Caribbean wondering why Nordstroms is beating their tail off.  It would never dawn on him to hire competent people at more money.  His thinking being that it would affect the profit margin (He's not a merchant, he's a bean counter).  The idea that people would buy more and shop more often if they enjoyed the experience is beyond his comprehension.

 

 

Tenants Looking for Sites in The Gulf Coast Region

 

Harold's, Inc. trades as Harold's, Harold Powell and Harold's Outlet Barn at 33 locations in AL, AZ, GA, KY, LA, MD, MO, MS, NC, NE, OK, SC, TN and TX.  The men's and women's apparel stores occupy spaces of 3,000 sq.ft. to 4,000 sq.ft. in upscale specialty centers.  Growth opportunities are sought in the existing markets.

  For more information, contact Mike Casey, Harold's, Inc., 4525 McKinney Avenue, Dallas, TX 75205; 214-521-3533, Fax 521-3663.

 

The Goodyear Tire & Rubber Co. (Southern Region) trades as Goodyear Auto Service Centers at 200 locations in AL, FL, GA, LA and MS.  The stores, selling Goodyear tires and offering automotive repair services, occupy spaces of 5,000 sq.ft. in freestanding facilities.  Preferred co-tenants include other automotive uses.  Plans call for 10 openings in the coming 18 months.  Expansion will take place in FL and LA.  Preferred demographics include a population of 40,000 within three miles earning $30,000 as the average income.  Leases running 15 years are typical and the company, which is franchising, cites Firestone as competition.

  For more information, contact Larry Meeker, The Goodyear Tire & Rubber Co., 7825 Bay Meadows Way, Jacksonville, FL 32236; 904-419-6207, Fax 419-6244.

 

Catherine's Stores Corp. does business as Added Dimensions at 90 locations nationwide.  The stores, selling large-size women's apparel, occupy spaces of 3,200 sq.ft. to 3,500 sq.ft. in regional malls and strip centers.  Plans call for the opening of four units during 1998; five units during 1999 and five units during 2000.  Expansion will take place in AL, GA, IN, KS, KY, LA, MI, MO, NC, OH, SC, TN, TX and VA.

  For more information, contact Bill Serex, Catherine's Stores Corp., 3742 Lamar Avenue, Memphis, TN 38118; 901-363-3900, Ext. 1228, Fax 794-9392.

 

Morrison's Fresh Cook Restaurants, Inc. trades as Morrison's at 158 locations in AL, FL, GA, KY, LA, MD, MS, NC, SC, TN, VA and WV.  The cafeteria-style restaurants occupy spaces of 7,000 sq.ft. in freestanding facilities.  Preferred anchors include Kmart and Wal*Mart.  Plans call for 12 openings in the coming 18 months.  Expansion will take place within the existing markets.  Preferred demographics include a population of 75,000 within five miles earning $50,000 as the average income.  Leases running 20 years are typical.

  For more information, contact John Hathcoat, Morrison's Fresh Cook Restaurants, Inc., 4893 Riverdale Road #260, Atlanta, GA 30337; 770-991-0351, Fax 991-9125.

 

Plej's Bath Bed Curtains trades as Plej's Linen Supermarkets at 46 locations in FL, GA, NC and SC.  The stores, selling bed and bath accessories, occupy spaces of 7,200 sq.ft. to 15,000 sq.ft. in freestanding facilities and power centers.  Preferred anchors include Kmart and TJ Maxx.  Plans call for five openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 30,000 within three miles earning $28,000 as the average income.  Leases running five years are typical and the company cites Kmart and Target as competition.

  For more information, contact Steven Ellington, Plej's Bath Bed Curtains, High Standard Streets, Rock Hill, SC 29730; 803-324-4284, Fax 324-7942.

 

Hawkins Pro-Cuts, Inc. trades as Pro-Cuts at more than 200 locations in AR, CO, TX, OK, LA, OH, IN, MN, NE, KS, NM, MO and KY.  The hair salons occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in power and strip centers.  Preferred anchors include TJ Maxx, Kmart, Wal*Mart and supermarkets.  Plans call for 25 openings in the coming 18 months.  Expansion will take place in the Southwestern region.  Preferred demographics include a population of 10,000 within one mile earning $40,000 as the average income.  Leases running five years, with a five-year option, are typical and the company, which is franchising, cites Great Clips and Supercuts as competition.

  For more information, contact Hawkins Pro-Cuts, Inc., 500 Grapevine Highway, Suite 400, Hurst, TX 76054; 817-788-8000, Fax 788-0000.

 

The Children's Collection operates four locations in AZ, OK and TX.  The infant's and children's apparel stores occupy spaces of 7,500 sq.ft. to 10,000 sq.ft. in specialty and strip centers.  Plans call for the opening of four units in the coming 18 months.  Expansion will take place in NC and TX.  Preferred demographics include a population of 30,000 within five miles earning $100,000 as the average income.  Leases running five years, with a five-year option, are typical and the company cites Talbot Kids, Saks and Neiman Marcus as competition.

  For more information, contact Edward Bayhi, The Children's Collection, 1717 Post Oak Boulevard, Houston, TX 77056; 713-622-4350, Fax 622-4523.

 

S.C. Food Services does business as Manchu Wok at 195 locations in AL, CA, FL, GA, IL, IA, IN, KY, LA, MD, MS, MI, MN, MS, NH, NY, NC, OH, PA, SC, TN, TX, VA, WA, WV and Washington, D.C.  The Chinese fast food restaurants occupy spaces of 500 sq.ft. to 600 sq.ft. in food courts of regional malls.  Plans call for as many as 20 openings in the coming 18 months.  Expansion will take place in the existing markets.  Leases running 10 years are typical and the company is franchising.

  For more information, contact Mark Grenville, S.C. Food Services, Inc., 500 Hood Road, Markham, ON M2J 3L5; 905-946-7200, Fax 481-9670.

 

Chao Praya Chinese Eatery operates 27 locations in AZ, IL, KY, LA, MI, MS, NV, NC, OK, TN, TX, VA and WA.  The Chinese fast food restaurants occupy spaces of 650 sq.ft. in regional malls.  Plans call for eight openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include a population of 300,000 within 10 miles earning $25,000 as the average income.  Leases running 10 years are typical.

  For more information, contact Wanchai Suebhongsang, Chao Praya Chinese Eatery, 1880 Lakeland Drive, Suite 3, Jackson, MS 39216; 601-982-2863, Fax 982-2895.

 

Fox's Pizza Den, Inc. trades as Fox's Pizza Den at 168 locations in AL, FL, GA, LA, MD, NY, OH, PA, TN, VA and WV.  The pizza restaurants occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in freestanding facilities and strip centers.  Plans call for at least 22 openings in the coming 18 months.  Expansion will take place in the existing markets as well as in MO, NC and SC.

  For more information, contact James Fox, Fox's Pizza Den, Inc., 3243 Old Frankstown Road, Pittsburgh, PA 15239; 412-733-7888.

 

Ahold, Inc. trades as Bi-Lo Supermarkets at 262 locations in GA, NC, SC and TN.  The supermarkets occupy spaces of 41,000 sq.ft. to 57,000 sq.ft. in strip centers.  Preferred co-tenants include Goody's and TJ Maxx.  Plans call for as many as 10 openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 30,000 within five miles.  Leases running 20 years are typical and the company cites Harris Teeter, Kroger and Publix as competition.

  For more information, contact Barton Coleman, Ahold, Inc., PO Drawer 99, Mauldin, SC 29662; 864-234-1600, Ext. 1656, Fax 675-5480.

 

Mont Blanc North American trades as Mont Blanc at 27 locations in CA, GA, HI, MA, MI, NJ, NY, WA and Canada.  The stationery stores occupy spaces of 600 sq.ft. in downtown store fronts, regional malls and specialty centers.  Preferred anchors include Neiman-Marcus, Nordstroms and Saks.  Plans call for 12 openings in the coming 18 months.  Expansion will take place in FL, NC, SC and TX.  Preferred demographics include a population of 100,000 within five miles earning $100,000 as the average income.  Leases running 10 years are typical.

  For more information, contact Bruce Koniver, Mont Blanc North American, 407 Lincoln Road, Suite 704, Miami Beach, FL 33139; 305-532-6100, Fax 532-6101.

 

Campbell Soup, Inc. does business as Peppridge Farm at 88 locations East of the Mississippi River.  The stores, selling baked goods, snacks, soups and candy, occupy spaces of 1,200 sq.ft. to 1,600 sq.ft. in outlet and strip centers.  Plans call for six openings in the coming 18 months.  Expansion will take place in the Midwestern, Northeastern and Southeastern regions.  Preferred demographics include a population of 200,000 within five miles earning at least $35,000 as the average income.  The company will not consider supermarket-anchored centers.

  For more information, contact Bartholomew Delaney, Campbell Soup, Inc., 595 Westport Avenue, Norwalk, CT 06851; 203-846-7000, Fax 846-7529.

 

 

Who's Opening & Where

 

Score! (212-974-6226) plans to open a new learning center every ten days this year, with the possibility of opening as many as 40 units nationwide.  The company opened 25 units last year and is targeting CA, CT, MD, MA, IL, NJ, NY and VA for its expansion.

 

Dave & Buster's, Inc. (214-357-9588) recently opened a restaurant/entertainment site in Denver, CO.  It is the company's 12th unit.  In the coming 30 months the company plans to double its store count to 24 in major metropolitan areas nationwide.

 

Hudson's Grill of America, Inc. (972-931-9237) plans to open a 4,547 sq.ft. restaurant in Reno, NV this year through its franchisee Kirk, Inc.

 

Michaels (214-409-1477) has agreed to acquire the leases of former L. Luria & Son stores in Aventura, Boca Raton and Pembroke Pines, FL.  The company also plans to relocate its Augusta, GA store to the new Augusta Exchange Shopping Center this month.

 

Belk Department Stores (704-357-1000) plans to open a store in Lexington County, SC during 1999.  The company had exited the market in 1994.

 

Home Depot (770-433-8211) plans to open its 130,000 sq.ft. store in Rock Hill, SC during late April or early May.

 

Restaurant Developers Corporation (216-398-1101) plans to open at least seven Arabica Coffee Houses in northeastern OH before the end of June.

 

Osco Drug (708-572-5180) plans to open a 16,800 sq.ft. store in Appleton, WI and a 12,600 sq.ft. store in Oshkosh, WI during the first half of 1998.

 

NASCAR Silicon Motor Speedway (415-777-4019) plans to open a 6,100 sq.ft. indoor driving experience and entertainment center at Woodfield Mall in Schaumburg, IL during March.

 

Nordstrom's (206-628-1725) plans to open a 200,000 sq.ft. department store at Oak Park Mall in Kansas City, MO during March and a 200,000 sq.ft. store at Cherry Creek Shopping Center in Denver, CO during Spring 2001.

 

Big Dog Sportswear (310-792-6272) recently opened a 2,000 sq.ft. store at Anchorage 5th Avenue Mall in Anchorage, AK.  The company is interested in opening an additional store at a proposed outlet center in Eagle River, AK during 1999.

 

Rainforest Cafe (612-945-5400) recently opened a 24,000 sq.ft. restaurant at MGM Grand Hotel/Casino in Las Vegas, NV and a 25,000 sq.ft. restaurant at Aventura Mall in Aventura, FL.

 

Gaylan Trading Co. (317-839-7332) plans to open as many as 10 stores this year and 10 stores next year including entry in the Chicago, IL; Atlanta, GA and Washington, D.C. markets.

 

MC Sports (616-285-1602) plans to open sporting good stores in Grand Rapids and Lansing, MI and Toledo, OH during Spring.

 

Gart Sports (303-863-2652) recently opened a 23,000 sq.ft. store at Dillon Ridge Marketplace in Dillon, CO and a superstore in Spokane, WA.

 

JC Penney (214-431-1000) recently opened 30 JC Penney Home Stores in 12 states.  The stores, which sell furniture and linens, range between 30,000 sq.ft. and 42,000 sq.ft.  The company is opening separate stores in order to create additional space for apparel in its full-size department stores and to increase its overall sales.

 

Tubby's, Inc. (810-978-8829) recently signed a development agreement with All Star Foods, Inc. to open 50 restaurants in TX in the coming five years.  Forty of the units will be located in the Houston area, with the first six expected to be open by December.  The remaining 10 will be located in the Corpus Christi area, with the first two expected to be open by December.

 

Koo Koo Roo, Inc. (310-479-2080) closed 1997 by opening seven restaurants in the last two months.  It last unit opened December 31 on Wilshire Boulevard in Los Angeles, CA.  The company, which operates 36 units in CA, FL, NV, Washington, D.C. area and Canada, plans to open five restaurants this year.

 

Dillard's Department Stores (501-376-5200) plans to open a 65,000 sq.ft. store at a former Proffitt's locations at Patrick Henry Mall in Newport News, VA during April.

 

Papa John's International (502-261-4298) recently opened a restaurant in Arlington, TX.  It was the company's 1,500th store nationwide.

 

Blockbuster Video (972-448-7700) plans to open a 5,000 sq.ft. store in Rock Hill, SC during Summer.

 

A&W Restaurants, Inc. (313-462-0029) recently opened restaurants in Seoul, South Korea and Brunei.  The company plans to open two more units in Seoul, one in Brunei, five units in Tokyo and one unit in Osaka, Japan this year.

 

 

Regional Focus: New Construction in Puerto Rico

 

RD Management Corp., one of the largest shopping center managers and developers in the United States with more than 18 million sq.ft., is expanding its interests in Puerto Rico.  Currently, RD Management owns seven projects on the island, three of which the company is expanding and one of which is in the planning stages.  The company is aggressively expanding its interests in Puerto Rico by looking into several additional sites for the possibility of development.

 

The projects undergoing expansion include Plaza Centro in Caguas; Los Colobos II Shopping Center in Carolina and Western Plaza in Mayaguez.  Originally developed in 1979 and expanded in 1995, Plaza Centro is anchored by Kmart, Sam's Club, OfficeMax, Pep Boys, Pueblo Supermarket and Masso, a local home improvement chain.  A third expansion of the project is currently underway which will add a 100,000 sq.ft. JC Penney as well as 130,000 sq.ft. of mall space that will connect Phases I and II.  Included in the construction will be a 12,000 sq.ft. food court.  When completed during Spring 1999, it will bring the project's total GLA to over 860,000 sq.ft.  Space is available for lease inside the mall.

 

The second project the company is currently expanding is Los Colobos II Shopping Center in Carolina.  The 150,000 sq.ft. expansion will add a 20,000 sq.ft. Almacenes Riviera, a local discount variety store and a 16,000 sq.ft. El Amal pharmacy.  The expansion is expected to open in stages and space remains available for lease.  Phase I of the center is anchored by Kmart, Masso, Pueblo Supermarket and a 35,000 sq.ft. Caribbean Cinema movie theater.  In-line tenants include One Price Clothing, Humberto Vidal, Payless Shoes, Almacenes Plaza, Pearle Vision, La Gloria and Fashion Mart.  Upon completion, the project's total GLA will exceed 500,000 sq.ft.

 

The third project the company is expanding is Western Plaza in Mayaguez.  Phase I of the project contains a 100,000 sq.ft. Masso home improvement store, which was formerly a Builder's Square store, and several outlots.  Phase II will add 350,000 sq.ft. and be anchored by a 43,000 sq.ft. Caribbean Cinema, Kmart, Sam's Club, Pep Boys and 35,000 sq.ft. of small shop space.  The project is 100% leased and the expansion is expected to be completed during the Summer.

 

The company's newest project, which is expected to break ground within the coming six months, will be a Kmart project located on State Road #2 and Baramaya Avenue in Ponce.  The center will include a 127,100 sq.ft. Kmart along with another 100,000 sq.ft. of store space.

 

In addition to the three projects RD Management is expanding, the company also owns three projects that are 100% leased.  They include the 70,000 sq.ft. Villa Maria Shopping Center in Manati which is anchored by Grande Supermarket and Western Auto; the 190,000 sq.ft. Trujillo Alto Plaza in Trujillo Alto which is anchored by Kmart and Pueblo Supermarket and Masso Shopping Center in Ponce which is a freestanding Masso.

 

For more information, contact Mary Ann Savarese of RD Management at (212-265-6600).

 

Another company currently developing projects in Puerto Rico is The Sembler Company, which is constructing two shopping centers and a freestanding Walgreens.  The company is in the process of obtaining approvals on four additional development sites throughout the island.

 

Ground was broken during September 1997 on Juncos Plaza Shopping Center in Juncos.  The 131,000 sq.ft. project will be anchored by a 30,000 sq.ft. Amigo Supermarket; a 19,920 sq.ft. Walgreens; a 19,480 sq.ft. Pep Boys; Burger King and Church's Chicken.  The latter four tenants are located on pad sites.  Approximately 26,000 sq.ft. of in-line space remains available for lease and the project is expected to open during September.

 

The company expects to break ground next month on University Plaza in Mayaguez.  The 86,000 sq.ft. project will be anchored by a 35,000 sq.ft. Home Design store, which is similar to Bed Bath & Beyond, a 17,920 sq.ft. freestanding Walgreens and a freestanding bank.  Approximately 26,000 sq.ft. of space remains available for lease and a September opening in planned.  In addition, the company is currently developing a 16,480 sq.ft. freestanding Walgreens drug store in Hatillo which is also expected to open during September.

 

For more information, contact Fano Fabregas of The Sembler Co. at (787-745-4805).

 

 

Financial News

 

Nobody Beats The Wiz (908-602-1900), which sought Chapter 11 protection a week before Christmas, is reportedly seeking a buyer or investor for its company.  In its court papers, the company listed liabilities of $354.6 million against assets of $318.1 million.  The company owes its top 20 suppliers $113.9 million, including $17.6 million to Sony, $7.8 million to Mitsubishi and $5.9 million to Panasonic. Prior to filing bankruptcy, a proposed deal between the company and Paragon Capital collapsed.  The company plans to close 17 stores in CT, NJ, NY and Washington, D.C.

 

Strouds, Inc. (626-912-2866) reported a third quarter net loss of $536,000 compared to a net loss of $1.578 million during the third quarter last year.  Net sales for the quarter increased to $56.9 million from $55 million but comparable store sales fell 0.7% during the quarter.  The company currently operates 66 home textile stores in five states.

 

Elder-Beerman Stores Corp. (937-296-7360) recently consummated its plan of reorganization and emerged from Chapter 11.  In addition, the company has obtained agreements providing up to $250 million in new financing facilities through a bank group led by Citibank, N.A. and Citicorp Securities, Inc.  The company currently operates 48 department stores, 61 El-Bee and Shoebilee! shoe stores and two furniture stores in OH, IN, IL, MI, WI, KY and WV.

 

Drug Emporium, Inc. reported that its third quarter net income increased five percent to $283,000 from $271,000 last year.  Net sales for the quarter fell to $199.6 million from $206.2 million last year and comparable store sales were down 0.8% for the quarter.  The company currently operates and franchises 224 drug stores nationwide.

 

Walgreen Co. (847-940-2500) reported that its first quarter sales increased 14.1% to $3.5 billion from $3.054 billion during its first quarter last year.  Earnings for the first quarter increased 16% to $87 million from $75 million last year.  During the quarter, pharmacy sales increased 19.2% with total comparable store sales up 9.1%.  During the quarter, the company opened 58 stores, 20 of which were replacements, and is planning to open 280 stores during its current fiscal year.  By 1999, the company plans to open 365 stores.  Currently, the company operates 2,403 drug stores in 34 states and Puerto Rico.

 

Today's Man, Inc. (609-722-6380) recently emerged from Chapter 11 protection and completed a $42.5 million financing package with Foothill Capital Corporation which includes a $12.5 million term loan and a $30 million revolving credit facility.  The company currently operates 25 men's apparel stores in the greater Philadelphia, New York and Washington, D.C. markets.

 

HomePlace Stores, Inc. (216-328-9500) recently filed for Chapter 11 protection saying its heavy use of debt to finance operations and a flurry of expansion has put it into a severe liquidity crunch.  The company listed assets of $314.3 million and liabilities of $307.2 million.  The company, which has opened 98 stores in 22 states since its founding in 1994, also received commitment for up to $150 million in post-petition financing, including a $110 million debtor-in-possession line of credit.  Several retail analysts felt that the bankruptcy filing was inevitable for several reasons including expanding too fast, a bad merchandise mix and high prices.

 

Q-Zar (214-741-1376) recently converted its Chapter 11 bankruptcy filing to a Chapter 7 liquidation and closed all of its corporate-owned stores.  Only a few of its franchised locations will remain open.  The company had operated and franchised more than 120 locations nationwide prior to the bankruptcy filing.

 

 

Buyers & Sellers

 

Hendon Properties recently acquired 33 former Best Products stores from Met Life for an undisclosed price.  The stores are located in 13 states from coast-to-coast and average 60,000 sq.ft.  A majority of the stores are freestanding, however, several are located at regional malls and some are two-story.  The company plans to lease many of the stores and also plans to sell a few.

  For more information, contact Charlie Hendon at (404-262-7400), Fax (262-2030).

 

Glimcher Realty Trust and Nomura Capital recently formed a partnership to become majority owners of the SuperMall of the Great Northwest in Auburn, WA.  Current owners, Hapsmith Development Corp. and Rosche Capital Corp., will retain interests in the project.  Glimcher also announces that it recently acquired University Mall in Tampa, FL for $121 million.  The mall has five anchors, 152 stores and a 2,500 seat movie theater.

  For more information, contact Glimcher Realty Trust at (614-621-9000).

 

Pliskin Realty and Development, Inc. recently acquired the 20,000 sq.ft. Plaza 700 in Brooklyn, NY.  Upon purchasing the project, the company performed extensive renovation and infrastructure work.  The company also recently acquired Whitman Plaza in Brooklyn, NY.  The project is anchored by Hit or Miss, Manhattan Bagel, Funcoland, Gil Hodges Sports World and Liberty Travel.

  For more information, contact Jeffrey Pliskin at (516-997-0100).

 

Prudential Florida Realty has the listing to sell a well located neighborhood shopping center anchored by CompUSA in Tampa, FL.  The asking price is $7.1 million.

  For more information, contact John Yatsco at (813-367-2793), Fax (367-8733).

 

The Price REIT, Inc. recently acquired 150,000 sq.ft. of Woodgrove Festival Shopping Center in Woodridge, IL for $16.525 million.  The 250,000 sq.ft. project is anchored by Kohl's, General Cinema, MC Sports, The Gap and Noodle Kidoodle.  Kohl's and three outparcels were not part of the acquisition.

  For more information, contact George Jezek at (619-551-2320).

 

Aegis Realty, Inc. plans to acquire The Market Place in Newton, NC from WHMBL Real Estate Limited Partnership for $5.4 million.  The 125,095 sq.ft. project is anchored by Bi-Lo Supermarket, Big Lots and Duo Drugs.  The company also plans to acquire Birdneck Center in Virginia Beach, VA from Peoples Southwest Real Estate Limited Partnership for $3.215 million.  The 67,060 sq.ft. project is anchored by Food Lion and Revco.

  For more information, contact Aegis Realty, Inc. at (800-831-4826).

 

The Hinerfeld Realty Company has the listing to sell a 25,000 sq.ft. former television station building in downtown Scranton, PA.  The site is located across from The Mall at Steamtown and one block from a United Artists multi-plex cinema.  The company also has the listing to sell five outparcels adjacent to Bill's Shopping Center in suburban Scranton, PA.

  For more information, contact John Cognetti at (717-342-8312), Fax (342-6815).

 

Simon DeBartolo Group and The Macerich Co. recently formed a 50/50 joint venture to acquire a portfolio of 12 regional malls from the pension fund of IBM Corp. for $974.5 million, including the assumption of $485 million of debt.  Four of the malls are located in IA, two in SD and the others in IN, PA, IL, CO, FL and VA, encompassing 10.7 million sq.ft.

  For more information, contact Simon DeBartolo Group at (317-636-1600) or The Macerich Co. at (310-394-6911).

 

Federal Realty Investment Trust recently acquired Peninsula Shopping Center in Rolling Hills Estates, CA for $43.5 million.  The 295,000 sq.ft. project is anchored by Vons Pavillions, TJ Maxx, Thrifty Drug, Super Crown Books, Famous Footwear, Starbucks, Radio Shack and Boston Market.

  For more information, contact Jeffrey Berkes at (301-998-8148).

 

Ramco-Gershenson Properties Trust recently acquired the 186,476 sq.ft. Village Lakes in Land O' Lakes, FL for $8.6 million.

  For more information, contact Bruce Gershenson at (248-350-9900), Fax (350-9925).

 

Divaris Real Estate, Inc. represented the seller of a 9.3 acre site, formerly known as Celebration Station, in Virginia Beach, VA to Home Depot.  Celebration Station was originally designed and used as an outlet mall.  Home Depot plans to redevelop the property to accommodate a new store.

  For more information, contact Gerald Divaris at (757-497-2113).

 

CBL & Associates Properties, Inc. recently acquired Asheville Mall in Asheville, NC for $65 million.  The 820,044 sq.ft. project is anchored by Belk, Dillard's, JC Penney, Montgomery Ward and Sears.

  For more information, contact CBL & Associates Properties at (423-855-0001).

 

The David Cronheim Company has the listing to sell 8.8 acres of land in Whitehouse, NJ.  The site, formerly Mark Chevrolet Dealership, has a 12,000 sq.ft. building with possible expansion to 76,000 sq.ft.  The site is zoned retail, restaurant, hotel and office.

  For more information, contact Peter Wisniewski or Justin Gingeleskie at (973-635-2180).

 

Mid-Atlantic Realty Trust recently acquired a 67% partnership interest in Arundel Plaza Shopping Center in Glen Burnie, MD for $6.76 million.  The 290,000 sq.ft. project is anchored by a 52,000 sq.ft. Giant Supermarket and a 165,000 sq.ft. Lowe's Home Center store, which is expected to open during November.

  For more information, contact F. Patrick Hughes at (410-684-2000).

 

Erwin L. Greenberg Commercial Corporation and The Fedder Company recently acquired five shopping centers in GA.  The centers include the 231,600 sq.ft. The Village at Mableton in Mableton, anchored by Kmart, CVS and Bruno's; the 188,500 sq.ft. North Park Center in Macon, anchored by Kmart and Kroger; the 46,000 sq.ft. Park Plaza in Douglasville; the 88,000 sq.ft. Tower Plaza in Carrollton, anchored by Bruno's; and the 105,400 sq.ft. Holcomb Bridge Crossing in Roswell, anchored by Cub Foods.

  For more information, contact Mark Laken at (410-837-2500).

 

 

Lease Signings

 

The Sembler Company (813-384-6000) leased 1,200 sq.ft. to Mill Direct at Publix at Barclay in Spring Hill, FL; 2,550 sq.ft. to Pizza World Gourmet Pizza at Bayside Bridge Plaza in Clearwater, FL; 3,253 sq.ft. to Big Frank's Carpet Supermarket at Beneva Market Place in Sarasota, FL; 1,380 sq.ft. to General Nutrition Center, 3,575 sq.ft. to Hallmark, 1,950 sq.ft. to Tee-Time Golf and 975 sq.ft. to The Daily Grind at Publix at Butler's Crossing in Watkinsville, GA; 1,100 sq.ft. to Unique at Carrollwood Square in Tampa, FL; 1,000 sq.ft. to Instant Cash and 12,900 sq.ft. to Sears Furniture & Appliance at Green Village in Dyersburg, TN; 750 sq.ft. to Ralph's Custom Tailoring at Pasadena Shopping Center in South Pasadena, FL; 1,750 sq.ft. to Extreme Bronze, 1,050 sq.ft. to Le Nails, 2,100 sq.ft. to Olsten Staffing Services, 1,050 sq.ft. to Oxford Cleaners, 1,050 sq.ft. to Pak Mail Centers of America and 2,009 sq.ft. to Sunshine Chiropractic Center at Publix at Perimeter in Atlanta, GA; 3,000 sq.ft. to Megaflicks at Publix at River Crossing in Pasco County, FL; 1,050 sq.ft. to General Nutrition Center at Robson Crossing in Oakwood, GA; 5,100 sq.ft. to Monterrey Mexican Restaurant at Publix at Thornblade in Greenville, SC; 975 sq.ft. to A Lovely Nail Salon at University Plaza in Tampa, FL; 1,400 sq.ft. to Newtek Computer at Village Marketplace in Port Charlotte, FL; 1,050 sq.ft. to Around The World Travel at West Cobb Marketplace in Cobb County, GA; 1,000 sq.ft. to Baby Talk at Westgate Plaza in St. Cloud, FL; 1,600 sq.ft. to Cost Cutters at Willow Bend Towne Centre in Pasco County, FL and 67,484 sq.ft. to AMC Theaters at Woodlands Square Shopping Center in Oldsmar, FL.

 

The Cafaro Company (330-747-2661) leased 4,287 sq.ft. to Northern Reflections/Northern Gateway, 5,462 sq.ft. to Champ's Sporting Goods, 4,780 sq.ft. to Foot Locker, 4,606 sq.ft. to Lady and Kids Foot Locker and 792 sq.ft. to Quizno's Classic Subs at South Hill Mall in Puyallup, WA and 1,500 sq.ft. to Select Comfort at Millcreek Mall in Erie, PA.

 

Litvin/LaRue/Greenfield Commercial Real Estate (630-773-7500) leased 34,460 sq.ft. to SteinMart in Sioux Falls, SD; 800 sq.ft. to Sears Optical in Chicago, IL and 1,200 sq.ft. to Sears Optical at Oak Forest Commons in Oak Forest, IL.

 

Hiffman Shaffer Associates, Inc. (312-332-3555) leased 4,500 sq.ft. to Wolf Camera at Stratford Square in Bloomingdale, IL; 3,200 sq.ft. to Wolf Camera at Rice Lake Square in Wheaton, IL; 2,300 sq.ft. to Wolf Camera at Two Rivers Plaza in Bolingbrook, IL; 2,000 sq.ft. to Wolf Camera at Downers Grove Market in Downers Grove, IL; 1,615 sq.ft. to Wolf Camera at Bannockburn Green in Bannockburn, IL; 1,500 sq.ft. to Wolf Camera at The Shops at Heatherfield in Glenview, IL and 1,322 sq.ft. to Wolf Camera at Main Place Shopping Center in Naperville, IL.

 

Madison Marquette (760-862-1990) leased 6,103 sq.ft. to Eddie Bauer at The Gardens on El Paseo in Palm Desert, CA.

 

Michael Salove Company (610-664-8100) leased 17 spaces totaling more than 124,000 sq.ft. to Hollywood Video in Philadelphia, Bristol, Cheltenham, Doylestown, Fairless Hills, Jenkintown, Montgomeryville, New Britain, Pottstown and Warminster, PA; Glassboro and West Deptford, NJ and Newark, DE.

 

CB Commercial Real Estate Group (847-948-5510) leased an 84,000 sq.ft. former Kmart store to Driver's Mart in Mundelein, IL; 5,500 sq.ft. to Lane Bryant at Prairie Towne Shopping Center in Schaumburg, IL; 5,000 sq.ft. to Kinkos at Liberty Plaza in Matteson, IL; 3,750 sq.ft. to One Price at Grand Plaza in Franklin Park, IL; 3,600 sq.ft. to Karnes Music at Hawthorn Hills Fashion Square in Vernon Hills, IL; 2,221 sq.ft. to Countrywide at Clocktower Plaza in North Aurora, IL; 1,600 sq.ft. to Disc Go Round at Harwood Commons in Harwood Heights, IL and 1,350 sq.ft. to Golden Studio Jewelry at Sanders Court in Northbrook, IL.

 

Grubb & Ellis of Metropolitan Washington, D.C. (703-448-2000) leased 5,200 sq.ft. to New York Gourmet Deli in Washington, D.C.

 

Harrison & Bates, Inc. (804-788-1000) leased 3,200 sq.ft. to Play It Again Sports in Henrico, VA; 14,000 sq.ft. to Shoe Forum II in Henrico, VA and 15,009 sq.ft. to Egghead at Libbie Place in Henrico, VA.

 

Crown American Realty Trust (814-536-9520) leased a 65,000 sq.ft. former Hess Department Store space to TeleTech Holdings for a customer call center at Uniontown Mall in Uniontown, PA.

 

Brunelli & Co., Inc. (732-721-5800) and TKO Real Estate Advisory Group, Inc. (609-587-6200) leased 9,600 sq.ft. to Lucille Roberts Health Club at Miracle Mall in East Brunswick, NJ.

 

Jeffery Realty (908-668-9600) leased 6,500 sq.ft. to Hollywood Video at Oak Park Commons in South Plainfield, NJ; 11,600 sq.ft. to Door Store in Kenilworth, NJ; 1,440 sq.ft. to Dunkin Donuts at Blacksmith Commons in Martinsville, NJ; 6,720 sq.ft. to Hollywood Video in Hazlet, NJ; 8,160 sq.ft. to Hollywood Video in Garfield, NJ; 6,007 sq.ft. to Hollywood Video at Somerville Shopping Center in Somerville, NJ and 7,507 sq.ft. to Hollywood Video at Tinton Falls Plaza in Tinton Falls, NJ.

 

 

Exclusives: Leasing & Management Assignments

 

Schottenstein Bernstein Capital Group LLC (212-521-4800) has been retained by The Wiz, Inc. as a consultant and to conduct store closing sales at the 17 Nobody Beats The Wiz stores that the company plans to close.

 

Equity Properties, Inc. (610-645-7700) has been named the leasing representative for the following companies looking to expand in the DE, NJ and PA markets: Leslie's Poolmart, Family Toy Warehouse and Party Land.  The company has been named the exclusive representative of the 345,000 sq.ft. Manufacturer's Outlet Mall in Morgantown, PA.  The company represented Spain's, Inc. in its acquisition of a 10,000 sq.ft. freestanding building for a Dollar Express store in Lancaster, PA.  The company has also represented The Goddard School in its leasing of a 6,200 sq.ft. freestanding building in Jamison, PA.

 

Mary Helen Enterprises, L.L.C. (870-972-8180) has been named the exclusive leasing agent for Silk Tree Factory, Inc.  Silk Tree Factory is seeking spaces running 50,000 sq.ft. to 60,000 sq.ft. in regional malls, outlet, power and strip centers primarily located in the Midwestern and Southeastern regions.  The company has also been retained by Take Two Video, Inc. as its exclusive leasing agent in seeking new sites nationwide for its Entertainment Jungle concept.  The company is seeking spaces running 5,000 sq.ft. to 7,000 sq.ft. in power and strip centers.

 

 

Home Furnishing Retailers Seeking Sites Nationwide

 

The TJX Companies, Inc. trades as Homegoods at 21 locations in CT, IL, KY, MA, NH, OH and WI.  The home furnishing stores occupy spaces of 39,000 sq.ft. in power and strip centers.  Plans call for five openings in the coming 18 months.  Expansion will take place in the Northeastern region.

  For more information, contact Bernie Galtman, The TJX Companies, Inc., 770 Cochituate Road, Framingham, MA 01701; 508-390-2230, Fax 390-3126.

 

Raymour & Flannigan Furniture operates 33 locations in CT, MA, NJ, NY and PA.  The furniture stores occupy spaces of 40,000 sq.ft. to 50,000 sq.ft. in freestanding facilities, regional malls, power and strip centers.  Preferred co-tenants include Home Depot, Barnes & Noble and major malls.  Plans call for five openings in the coming 18 months.  Expansion will take place in the existing markets.

  For more information, contact Tom Hornstein, Raymour & Flannigan Furniture, PO Box 220, Liverpool, NY 13080; 315-453-2500, Fax 453-2570.

 

Frames Unlimited, Inc. trades as Frames Unlimited at 33 locations in MI, IN and OH.  The stores, selling picture frames, art and gifts, occupy spaces of 2,500 sq.ft. in strip centers.  Preferred anchors include book stores and supermarkets.  Plans call for five openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 150,000 within five miles earning $50,000 as the average income.  Leases running five years are typical.

  For more information, contact Mark Lovett, Frames Unlimited, Inc., 3343 Lousma Drive, Wyoming, MI 49548; 616-452-8737, Fax 452-6981.

 

3 Day Blinds, Inc. trades as 3 Day Blinds at 174 locations in AZ, CA, CO, ID, KS, NE, NM, OR, TX, UT and WA.  The stores, selling window coverings, occupy spaces of 1,000 sq.ft. to 6,000 sq.ft. in power and strip centers.  Preferred anchors include Mervyn's, Target and TJ Maxx.  Plans call for 40 openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 100,000 within three miles earning $40,000 as the average income.  Leases running five years are typical.

  For more information, contact Brent Ryhlick, 3 Day Blinds, Inc., 2220 East Cerritos Avenue, Anaheim, CA 92806; 714-634-4600, Fax 456-0367.

 

Leather Center operates 70 locations nationwide.  The stores, selling leather furniture, occupy spaces of 4,500 sq.ft. in freestanding facilities, power and strip centers.  Preferred anchors include Barnes & Noble and Home Depot.  Plans call for 25 openings in the coming 18 months.  Expansion will take place nationwide.  Demographics include a trade area population of 500,000 earning $45,000 as the average income.  Leases running five years are typical.

  For more information, contact Paul Miller or Carl Hensch, Leather Center, 2724 Realty Road, Carrollton, TX 75006; 972-418-0073, Fax 416-3022.

 

Schewel Furniture Co. operates 44 locations in NC, VA and WV.  The home furnishing stores occupy spaces of 12,000 sq.ft. to 20,000 sq.ft. in freestanding facilities and strip centers.  Plans call for one opening in the coming 18 months.  Expansion will take place in either NC or VA.  Preferred demographics include a population of 20,000 within five miles earning $30,000 as the average income.  Leases running 10 years are typical and the company prefers a vanilla shell and cites Heilig-Meyers as competition.

  For more information, contact Marc Schewel, Schewel Furniture Co., PO Box 1600, Lynchburg, VA 24505; 804-522-0200, Fax 522-0207.

 

Casual Concepts does business as Cargo Furniture & Accents at 30 locations from FL to NY and KS, OK and TX.  The stores, selling wood furniture, occupy spaces of 1,600 sq.ft. to 2,000 sq.ft. in strip centers.  Preferred anchors include Old Navy and Toys 'R Us.  Plans call for six openings in the coming 18 months.  Expansion will take place within the existing markets.  Preferred demographics include a population of 50,000 within 10 miles earning $30,000 as the average income.  Leases running three to five years are typical.

  For more information, contact R.D. Teuber, Casual Concepts, PO Box 40607, Fort Worth, TX 76140; 817-551-9657, Fax 551-9673.

 

 

Mergers & Acquisitions

 

Woodfield Enterprises (630-529-9424) recently signed a definitive merger agreement with Windsor Capital Corp.  Woodfield Enterprises currently operates 14 cigar kiosks trading as Simply Cigars in upscale malls in CT, IL, MD, MI and OH.  Windsor Capital was found in 1988 for the purpose of providing a vehicle to raise capital and seek business opportunities.

 

Wal*Mart Stores (501-273-4000) recently agreed to acquire the 21-unit Wertkauf hypermarket chain of stores in Germany.  The acquisition is Wal*Mart's initial entry into Europe.  The Wertkauf stores have a similar format as Wal*Mart's Supercenters.

 

Crowley, Milner and Company (313-962-2640) recently signed a letter of intent to purchase the 49-unit Winkelman's women's apparel chain from Petrie Retail, Inc. which has been operating under bankruptcy protection.  Crowley intends to continue to operate the stores under the Winkelman's name while it evaluates each store to determine if any need to be closed.

 

Apple South, Inc. (706-342-4552) recently announced that it plans to sell its 264 franchised Applebee's restaurants in order to focus on its faster growing restaurant brands.  In conjunction with its announcement, Apple South also announced that it has signed a definitive agreement with Applebee's International to sell 32 units in the Norfolk, Richmond, Roanoke and Charlottesville, VA markets to Applebee's International for $93.4 million.  Closing is expected to take place during the first quarter.  In addition, Apple South recently announced that it signed three letters of intent for the sale of 61 units in the Knoxville, Chattanooga, Tri-Cities, Memphis and Jackson, TN; MS and Washington, D.C. markets to undisclosed buyers for $115 million.  Closing is expected to occur during the second quarter.  Applebee's International has agreed to assist in the divestment of the remaining Applebee's restaurants.

 

O'Reilly Automotive, Inc. (417-862-3333) and Hi-Lo Automotive, Inc. (800-299-4456) jointly announced that the two companies have signed a definitive merger agreement in which O'Reilly will acquire Hi-Lo.  The acquisition will add 188 stores in CA, LA and TX to the 259-unit O'Reilly chain.  O'Reilly plans to continue to operate the stores under the Hi-Lo name initially.  In order to merge with O'Reilly, Hi-Lo had to pay a $4 million termination fee to Discount Auto Parts, with whom Hi-Lo had been in merger negotiations before accepting O'Reilly's proposal.

 

Complete Wellness Centers, Inc. (202-543-6800) recently acquired the assets of 58 weight loss centers from Nutri/System, LP.  Complete Wellness Centers currently operates 137 centers in 21 states and plans to covert the 58 Nutri/System centers to its concept.