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Issue Number 24
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The Dealmakers Issue Number 24 for the week of July 10, 1998. My Way by Ted Kraus Because Vegas was great, I ended up with numerous meetings at the show, then followed up with correspondence and numerous phone calls for potential turnaround leasing and management assignments. In about half of the meetings after the show I met with the owners, and if I say so myself, the meetings went rather well (I’ll tell you in 60 to 90 days if I got the assignments). However, in the other half, I meet with groups of asset managers (there always seems to be three of ‘em in each meeting; collective thinking is a necessary part of large organizations, god forbid an individual makes a decision and then be responsible for it). The meetings with the "suits" did not go as well. While we could relate on the problems, the "cures" were difficult for them to comprehend. In one case we were discussing a 600,000 sq.ft. mall that lost two anchors. They wanted to know why we just couldn’t call The Limited, make a deal with them at $22 psf and "viola" that the center will work. I explained that The Limited wouldn’t want into the center because of it’s low sales, but that seemed to fall on deaf ears. I said maybe we could get ‘em in on a percentage only deal with a leasehold contribution of $1 million, but they wouldn’t help the center that much so I wouldn’t recommend it. They replied I was crazy, and that several management companies have already almost "guaranteed" a Limited deal with minimum TI. I asked why they were talking to me then (I think it was at this point the meeting started to deteriorate). I also suggested we combine the smaller shops into larger units to attract either destination oriented or mini-anchors into the center. They rejected that idea since it would ruin their proforma. The fact that the space was unleaseable was immaterial, they "need" their proforma. The meeting continued to go down hill so needless to say, I didn’t get the account. MBA’s (that what most of them were) are bright, articulate individuals who have no real experience in what they’re talking about. Their bosses, who do have the experience and insight into making centers work, have been promoted so high in their organization that they no longer have any ideas of what’s really happening or input into day to day operations. Top management allows the inexperienced novices to make unintelligent decisions which these novices excell at. One company I’m very familiar with, when started, was not a REIT and headed by an excellent dealmaker who made things happen. He later turned the company into a REIT and hired lots of Wall Streeters and MBAs. Now that he’s the chairman of a billion dollar organization he’s no longer involved in actual dealmaking (except for meeting with movie stars for theme restaurants) and most (but not all) of his leasing people have no idea or authority to make a difficult situation work and many of these centers are now declining at an increasing rate. Unfortunately, this is a growing trend. On another subject, I assume most of you heard about Rite Aid catching one of their real estate reps with his hands in the broker’s pocket. Both the broker and rep have admitted to the crime and while it will be two weeks before this editorial appears (I have to write ahead of time, Ann and I are going on vacation for two weeks) I’m willing to bet that not much more will come of it. Not that no one else is corrupt in the company, but that top management does not want to learn more. If they do and it is as ugly as the Kmart situation was, the stock market would not react favorably to the situation and the value of the stock is more important than the truth. On a lighter note, we need your input. Ann, Chris, Terri and I had a meeting to discuss what changes are necessary in the publication to keep it current and hopefully keep us as a leader and not a follower. There were some interesting discussions. We talked about adding more information about regional malls, but that was rejected because we felt 1) it’s being covered well enough by other publications and we couldn’t really add that much, and 2) we feel that with all the consolidation going on with regional malls, its future is limited so why go after a market in "decline." Then we discussed the outlet industry and came to similar conclusions. Consolidation of the industry has left it with six major players and they’re having problems so the "growth" potential is limited. We did, however, all agree that specialty/entertainment retailing is a growth field and therefore coverage should be increased and the impact of brokerage on the industry definitely needs more coverage. That brought up two problems. 1) What is a specialty center and what constitutes a specialty retailer? And 2) How do we cover these additional subjects? We finally decided after much debate that we would publish four to eight times a year a supplement to the regular issue of Dealmakers covering these subjects more in depth. Here’s where we need your input. First, what’s your definition of a specialty center/retailer and entertainment center, and second, what other topics would you like to see covered. Send your input to Deal.Makers@dealmakers.net or fax ‘em to 609-587-3511. Our first expanded issue is on "Retailing and Brokerage... Prefect Together?" which is being published July 31. The reason we picked brokerage is it’s our contention the 90's is the decade of the broker. The commissioned based retail real estate broker has gone from being a second class citizen in the late 80s-early 90s (but they were making good money) to now, in many cases either supplementing or replacing the corporate real estate rep for both developer and retailer to playing a major role in acquisitions. In other words, they do it all. There were more brokers in Vegas than retailers and in many cases, they have more clout (plus most good brokers make a lot more money than their corporate counterparts). Anyway, if you have any input, let us know. Life’s one big circle. As we and everyone else has reported, the merger-acquisition mania is going full blast and this includes the brokerage, REIT and retailing industries. However, the Internet and software are great equalizers and while "brand identity" is important I don’t think bigger will prove to be better when it comes to brokerage, retailing, management or development. Our industry will be vastly different in five years. Retailers are starting to learn that. Home Depot put lots of local hardware stores out of business with their superstores, but Sears Hardware is surviving and prospering. Now Home Depot is developing a smaller (the size of many of the stores they put out of business) unit as "fill in" and urban locations. Supermarkets put the locals out of business, but convenience stores are prospering. OfficeMax and their mega store helped bankrupt the local office supply retailer is now opening 9,500 sq.ft. stores. Further confusing matters retailers are going out of "store front" locations to be mail order/Internet oriented such as what Egg Head has done (let’s see if its works) or catalog operators becoming retailers, such as J. Peterson. We live in interesting times. P.S. Don’t forget to fill out the Broker Free Listing Form to be included in our July 31 issue. Convenience Stores Expanding Nationwide Top’s Markets, Inc. trades as Wilson Farms at 104
locations in central and western NY. The convenience stores occupy spaces of 2,000 sq.ft.
to 3,500 sq.ft. in freestanding facilities. Preferred co-tenants include video stores.
Plans call for 15 openings in the coming 18 months. Expansion will take place in the
existing markets. Preferred demographics include a population of 5,000 within one mile.
Leases running 15 years are typical. Always Open operates 22 locations in AL, GA, IL, IN, IA, OH, TN and
WI. The convenience stores occupy spaces of 2,500 sq.ft. to 4,000 sq.ft. in freestanding
facilities. Plans call for 59 openings in the coming 18 months. Expansion will take place
nationwide. Preferred demographics include a population of 20,000 within five miles
earning $35,000 as the average income. Leases running 15 years are typical and the company
is franchising. Pri-Mar Petroleum, Inc. trades as Pri-Mart at 13 locations
in MI. The convenience stores occupy spaces of at least 2,000 sq.ft. in freestanding
facilities. Plans call for as many as two openings in the coming 18 months. Expansion will
take place in MI and IN. E-Z Stop Food Marts, Inc. trades as E-Z Stop at 16 locations
in TN. The convenience stores occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in
freestanding facilities. Preferred co-tenants include supermarkets. Plans call for as many
as four openings in the coming 18 months. Expansion will take place in eastern TN.
Preferred demographics include a population of 5,000 within 1.5 miles earning $25,000 as
the average income. Leases running 40 years are typical and the company prefers to locate
its stores on corner lots of roads having an ADT of 10,000. The Kroger Co. does business as Turkey Hill Minit Markets at
230 locations in PA. The convenience stores, which also sell gasoline, occupy spaces of
3,300 sq.ft. in freestanding facilities. Plans call for 12 openings in the coming 18
months. Expansion will take place in the existing market. Leases running 30 years are
typical. Food Spot Corp. trades as Food Spot at 27 locations in FL.
The convenience stores, four of which also sell gasoline, occupy spaces of 2,400 sq.ft. in
freestanding facilities and strip centers. Plans call for as many as four openings in the
coming 18 months. Expansion will take place in south FL. Quick Chek Food Stores, Inc. trades as Quick Chek Food Stores
at more than 100 locations throughout NJ. The convenience stores occupy spaces of 4,000
sq.ft. to 5,000 sq.ft. in freestanding facilities and end caps of strip centers. Plans
call for eight openings annually. Expansion will take place in the existing market. CFM Marketing Systems, Inc. does business as Convenient Food
Mart at 13 locations in IA and NE. The convenience stores, which also sell gasoline,
occupy spaces of 2,000 sq.ft. to 4,000 sq.ft. in freestanding facilities. Plans call for
one opening in the coming 18 months. Expansion will take place within the existing
markets. Leases running ten years, with three five-year options, are typical and the
company is franchising. United Dairy Farmers trades as United Dairy Farmers Store
at 205 locations in KY, IN and OH. The convenience stores occupy spaces of 3,800 sq.ft. in
freestanding facilities. Plans call for 10 openings in the coming 18 months. Expansion
will take place in KY and OH. The company cites SuperAmerica, Speedway, BP and Shell
as competition. Shop Rite, Inc. trades as Shop Rite and Tobacco Plus
at 54 locations in LA. The convenience stores, which also sell gasoline and tobacco
products, occupy spaces of 3,000 sq.ft. in freestanding facilities. Preferred anchors for
its tobacco store concept include Wal*Mart. Plans call for six openings in the
coming 18 months. Expansion will take place in AL, FL, MS and TX. Preferred demographics
include a population of 35,000 within five miles earning $30,000 as the average income.
Leases running 10 years, with options, are typical. Wesson, Inc. operates 12 locations in CT. The convenience stores,
which also sell gasoline, 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 the existing
market. Preferred demographics include a population of 200,000 with five miles earning
$20,000 as the average income. The company prefers to purchase its locations. Buyers & Sellers CB Richard Ellis brokered the sale of Peru Mall in Peru, IL. The
500,000 sq.ft. project is anchored by JC Penney, Montgomery Ward and Carson Pirie Scott.
The seller was Peru Venture and the buyer was a partnership between Landau Heyman and
Enterprise Asset Management. The selling price was not disclosed. Pan Pacific Retail Properties, Inc. recently acquired Fashion Faire
Place in San Leandro, CA. The 95,000 sq.ft. project is anchored by Ross, Michael’s
and Pier 1 Imports. The company also recently acquired Westwood Village Shopping Center in
Redding, CA. The 102,000 sq.ft. project is anchored by Holiday Markets and Rite Aid. The
combined purchase price for the two centers was $19 million. Aegis Realty, Inc. is seeking to acquire on a nationwide basis $120
million worth of community and neighborhood shopping center assets in the coming year. The
company will consider secondary markets and structure cash acquisitions or tax deferred
structures to meet seller’s needs. The company prefers to acquire grocery,
grocery/drug and other large credit tenant anchored centers having GLAs between 75,000
sq.ft. and 300,000 sq.ft. Purchase prices should range between $5 million and $20 million. Commercial Net Lease Realty, Inc. is in the market to acquire
freestanding net leased retail properties nationwide. Leases should be with national or
tenants with a highly recognizable name and should have at least 15 years remaining on the
term. Reliable Properties is in the market to acquire retail properties
in Southern CA that need a change of use, have high vacancies, are in need of rehab or are
excess properties. Properties of interest have GLAs that range from 10,000 sq.ft. to
350,000 sq.ft. Sperry Van Ness has the listing to sell Towngate Center and Canyon
Springs Plaza, both located in Moreno Valley, CA. The 370,000 sq.ft. Towngate Center is
anchored by Mervyn’s, Ralph’s and Circuit City. The center is located near
Moreno Valley Mall at Towngate. The asking price is $35 million. The 408,980 sq.ft. Canyon
Springs Plaza is anchored by Toys ‘R Us, Sears Homelife and Pier 1 Imports. The
center has a 30% vacancy rate. The asking price is $16.2 million. United Investors Realty Trust recently entered a into contract to
purchase Highland Square Community Shopping Center in Sugarland, TX. The 64,000 sq.ft.
project is anchored by Radio Shack and Half Price Books. The company also entered into a
contract to purchase two community shopping centers located within a half-mile of one
another in Houston, TX. The centers, which are anchored by Circuit City and Best Buy,
respectively, include approximately 147,000 sq.ft. of space. Other tenants at the projects
include Macaroni Grill, Petco and Jason’s Deli. Equity One, Inc. recently completed the acquisition of Summerlin
Square Shopping Center in Ft. Myers, FL for $9.8 million in cash. The 110,200 sq.ft.
project is anchored by Winn-Dixie and Eckerd Drugs. The acquisition included 10.5 acres of
vacant land zoned for retail development. Lease Signings The Carfaro Company (330-747-2661) leased 3,598 sq.ft. to Kitchen Collection at Ashtabula Mall in Ashtabula, OH; 3,834 sq.ft. to Kitchen Collection, 4,210 sq.ft. to The Disney Store, 25,053 sq.ft. to Kahunaville, 4,872 sq.ft. to American Outpost and 20,876 sq.ft. to Warren Trumbull Community Service Agency at Eastwood Mall in Niles, OH; 3,450 sq.ft. to Kitchen Collection at Ohio Valley Mall in St. Clairsville, OH; 24,000 sq.ft. to Big Lots at McKinley Centre in Niles, OH; 900 sq.ft. to Advance America Cash Advance Center at Perkins Plaza in Sandusky, OH; 5,000 sq.ft. to Applebee’s Neighborhood Grill & Bar at Frenchtown Square Mall in Monroe, MI; 10,375 sq.ft. to Fox & Hound at Millcreek Plaza in Erie, PA; 928 sq.ft. to Nails Studio at Kennedy Mall in Dubueque, IA; 4,355 sq.ft. to American Outpost at Millcreek Mall in Erie, PA; 3,325 sq.ft. to American Outpost at Meadowbrook Mall in Bridgeport, WV; 2,000 sq.ft. to Myra’s Flowers at Connersville Plaza in Connersville, IN; 9,000 sq.ft. to Family Dollar at Maplecrest Plaza in Kokomo, IN and 3,970 sq.ft. to IHOP at Vancouver Plaza in Vancouver, WA. Capital Realty Advisors, Inc. (561-624-5888) leased 2,377 sq.ft. to A Discount Beverages at Pompano Plaza in Pompano Beach, FL. Colliers Lanard & Axilbund (215-925-4600) leased space to MAB Paints at Caln Village Shopping Center in Downingtown, PA; Port de Leau Plaza in Highland, IN and in Marlton, NJ. The company also leased two former Rite Aid drug stores to Dollar Mania Stores in Philadelphia, PA and to Family Outlet in Philadelphia, PA. Glimcher Group, Inc. (412-765-3333) leased space to United Cash Advance at Fayette Plaza in Uniontown, PA and at Sharon City Plaza in Sharon, PA. The Goldstein Group (201-703-9700) leased space to Manhattan Bagel in Lodi, Midland Park and Pompton Lakes, NJ and Airmont, NY; Lechters in Ramsey, NJ; Marburn Curtains in Nanuet, NY; Brueggers Bagels in Mamaroneck, NY; Marty’s Shoe Outlet in Ramsey and Midland Park, NJ; 7-11 in Middlesex, NJ; H&R Block in Ridgewood and Montclair, NJ and Blimpie in Westfield, NJ. Partnership Concepts Realty Management, Inc. (630-325-5800) leased 3,678 sq.ft. to Let’s Dress Up, Planet Wonder and 2,452 sq.ft. to Lynn’s Dance Studio at County Farm Shopping Center in Carol Stream, IL. Who’s Opening & Where Eckerd Drugs (813-399-6355) recently opened an 11,200 sq.ft. drug store on an outparcel at Gateway Mall in St. Petersburg, FL. The store replaces an in-line unit at the mall. The company also recently opened an 11,200 sq.ft. store in Casselberry, FL. Whole Foods Market (512-477-5566) plans to open a 40,000 sq.ft. natural foods supermarket in Santa Fe, NM during Summer 1999 and a 42,000 sq.ft. store at Cherry Creek Shopping Center in Denver, CO during Fall 1999. Rite Aid Corp. (717-761-2633) recently announced that it plans to invest $230 million in depressed urban areas to open 37 stores, relocate 73 stores and remodel 17 others in the coming two years. The company plans to invest $55 million alone in Los Angeles, CA. In all, the company plans to invest money in 85 communities in 20 states and Washington, D.C. New stores are planned for San Francisco, CA; Tacoma, WA; the Harlem section of NY; Buffalo, NY; Detroit, MI and Cleveland, OH. Urban Outfitters (215-564-2313) recently opened its first store in the United Kingdom in London, England. The company plans to open as many as 30 stores throughout Europe, including as many as seven in the United Kingdom. Home Depot (770-433-8211) plans to open a store at a former Builders Square II space at Manchester Meadows in Town and Country, MO. Wal*Mart Stores, Inc. (501-273-4000) plans to test a stand-alone supermarket concept with stores in Bentonvillle, Sherwood and Springdale, AR later this year. The store, named Wal*Mart Food and Drug Express, will include a drive-through pharmacy. Planet Hollywood International (407-363-7827) and MTV plan to jointly open six restaurants, four of which will have concert halls, in the coming two years. The first two units are planned to open in London, England during Summer and New York, NY during Fall. A third unit is planned as part of the company’s hotel-casino project in Las Vegas, NV with Aladdin Gaming. The restaurants will be called Sound Republic and they will become the company’s third chain, following Planet Hollywood and Official All Star Cafe. Kmart Corp. (248-643-1000) recently leased 46 former Venture Store locations from Kimco Realty Corp. Kmart plans to open the store as Big Kmart units during late Fall. The stores are located in the following places: in IL: Addison, Arlington Heights, Aurora, Belleville, Calumet City, Chicago (4), Countryside, Crestwood, Elgin, Fairview, Geneva, Matteson, Mt. Prospect, Mundelein, Naperville, Niles, Norridge, Oak Lawn, Oakbrook Terrace, Peoria, Schaumberg and Springfield. In IN: Griffith and Merrillville. In IA: Davenport. In KS: Kansas City, Roeland Park and Shawnee. In MO: Crystal City, Florissant, Independence, Kansas City, Kirkwood, Maplewood, Overland, Springfield, St. Louis and St. Peters. In OK: Edmond, Midwest City and Oklahoma City, and in TX in Amarillo. Dave & Buster’s (214-357-9588) recently opened a 55,000 sq.ft. restaurant/entertainment complex in Utica, MI. Inca Computer Company (248-594-5252) plans to open a computer store in Detroit, MI during August and a store and a regional office at One Kennedy Square Building in downtown Detroit, MI by the end of 1999. King Soopers (303-778-2074) is developing a 70,000 sq.ft. supermarket at Golden Town Center in Golden, CO. Saks Fifth Avenue (212-753-4000) plans to renovate and move into the former Marshall Field’s space at Dallas Galleria in Dallas, TX during Fall 1999 and build a 100,000 sq.ft. store at North East Mall in Hurst, TX that will open during Fall 2000. Burger King (305-378-7890) plans to open two franchised restaurants in Rock Hill, SC this month. Crown American Realty Trust (814-536-9520) and Penn State have teamed up to establish an Education Center at Chambersburg Mall in Chambersburg, PA for the college’s Mont Alto Campus. The 4,300 sq.ft. center will begin offering credit and non-credit courses next month. The 455,000 sq.ft. mall is anchored by JC Penney, Sears and Value City. New Construction Hiffman Shaffer Associates, Inc. and Lake Shore Development
Corp. plan to redevelop and renovate the six-level Century Shopping Centre in
downtown Chicago, IL. A seven-screen Landmark Theatre will be added to the fifth
and sixth floors and the remainder of the center will be remerchandised to a more upscale
tenant mix. The center currently has 35 retailers, including The Limited and Bally
Total Fitness, which will remain open during the renovations. A Fall 1999 opening for
the theatre is planned. The debut of the new theatre complex will be a return to The
Century’s historic roots. Originally established in 1925 as The Diversey
vaudeville theatre, it was converted in the 1930s into one of the great movie houses by
Chicago movie tycoons Balaban and Katz. In the early 1970s the building was transformed to
six levels of unique, specialty shopping known as The Century Shopping Centre. To
celebrate the return of motion picture exhibition to this landmark location, the
building’s Arabesque facade and grand marquee will be restored. Agree Realty Corporation recently acquired a site in Grand Blanc,
MI on which it plans to develop a retail center. The project is pre-leased and is expected
to be completed during the fourth quarter of this year. The company has budgeted $3
million for the development. Additionally, the company is developing retail projects in
Chesterfield Township, MI; Tulsa, OK and Pontiac, MI, all of which are expected to be
completed before the end of the year. Millennium Partners recently broke ground on Millennium Place
in Boston, MA. The urban entertainment and living center will span two city blocks bounded
by Washington, Tremont and Boylston Streets and fronts Boston Common. The 1.8 million
sq.ft. project will include a Loews Theatres multiplex; a 100,000 sq.ft. Reebok
Sports Club fitness and spa center; an additional 100,000 sq.ft. of specialty retail
shop space; a 300-room five-star hotel; 350 luxury condominiums in two towers and 125
extended-stay residential units. More than 1,000 parking spaces will also be provided. The
development cost of the site is estimated at $400 million. The company has either built,
is building or is planning to build similar developments in San Francisco, CA; Miami, FL;
New York, NY; Washington, D.C. and Toronto, ON. Stirling Properties recently broke ground on phase I of Premier
Centre in Mandeville, LA. The 164,838 sq.ft. project will be anchored by Delchamps
Premier, TJ Maxx, Steinmart, Old Navy, Rack Room Shoes, LaMadeleine, Bath & Body
and Hallmark. Phase II of the project will be 110,000 sq.ft. and feature similar
high-profile retailers. Phase I is expected to open during October. Simon DeBartolo Group has scrapped its plan to add a second level
to Dadeland Mall in Miami, FL. Instead, the company is planning to add a 125,000
sq.ft. wing on the first level as well as adding another anchor store. Currently, the 1.4
million sq.ft. project is anchored by Burdines, Burdines Home, JC Penney, Lord &
Taylor and Saks Fifth Avenue. The company would like the sixth anchor to be Nordstrom,
but Nordstrom has committed to go to another center nearby. Instead, Simon is trying to
lure Sears to the project. Vestar Development Co. recently signed a long-term ground lease
with the city of Long Beach, CA for 102 acres on which the company plans to develop Long
Beach Towne Center, an 850,000 sq.ft. power center, valued at approximately $150
million. The site is the former Long Beach Naval Hospital. The project will be
anchored by a 26-screen Edwards Cinema; a 128,000 sq.ft. Sam’s Club; a
108,000 sq.ft. Home Depot; a 25,000 sq.ft. Barnes & Noble; a 15,000
sq.ft. Inca Computer; a 26,000 sq.ft. PetsMart; a 43,000 sq.ft. Sports
Authority; a 15,000 sq.ft. Old Navy; a 30,000 sq.ft. Ross Dress for Less;
a 35,000 sq.ft. Linens & Things; a 24,000 sq.ft. Staples and a 25,000
sq.ft. Michaels. A 20-acre AutoNation used car dealership will also be
located at the site. Rosenshein Associates is currently developing Hanover Square
in Hanover Township, NJ. The 402,000 sq.ft. project will be anchored by BJ’s
Wholesale Club and is expected to open during 1999. The company is developing Somerville
Square in Somerville, NJ. The 750,000 sq.ft. project will be anchored by a 16-screen Hoyts
Cinema, a discount department store, a supermarket, a craft store and a sporting goods
retailer. The site is expected to open during 1999. The company is also developing Peartree
Square in Bronx, NY. The 141,000 sq.ft. project will be anchored by Edwards Super
Foodstores, National Wholesale Liquidators and Rite Aid. A 1999 opening is
planned. Matrix is planning to develop a 360,000 sq.ft. retail center in
Hamilton, NJ. No tenants have been lined up. The plans have been in place since 1996,
however, the project has been tied up in the NJ court system in a fight over the zoning of
the land. The current underlying zoning is research/development/warehouse and Matrix has
already obtained approvals to develop 1.5 million sq.ft. of space of which 600,000 sq.ft.
has been built. Hamilton Township approached the company in 1996 and asked if it would be
interested in developing a retail center on the site in place of the remaining
research/development/warehouse element. Following public meetings, the township voted to
change the zoning to retail but a grassroot organization, Hands Across Yardville,
filed a motion against the rezoning. In September 1997, a lower court judge, in a 38-page
summary judgement, threw out the case. Hands Across Yardville appealed the decision and
the case is currently at the appellate court level with a decision expected before Fall.
The company expects the case to be dismissed again. Matrix does have a contingency plan
should the retail rezoning fail and that is to fully develop the
research/development/warehouse element. At one time, ARC Properties held an option to
purchase this site, but has since withdrawn its bid. Lead Sheet Susan Gale Hosiery, Inc. dba Sam, The Shoe Doctor; Susan Gale; Hats On; Ultimate Back Rub Accessories The 17-unit chain operates locations in IL. The stores, selling accessories, and offering back massages and shoe repairs, occupy spaces of 1,000 sq.ft. to 1,250 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 market. Body Options, Inc. Apparel The 13-unit chain operates locations in northern CA. The stores, selling women’s activewear, aerobic, swimwear and casual clothing, occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in freestanding facilities and strip centers. Preferred anchors include Banana Republic, Gap, Macy’s, Nordstrom, children’s stores and upscale supermarkets. Plans call for 12 openings in the coming 18 months. Expansion will take place in southern CA and Seattle, WA. Preferred demographics include a population of 100,000 within five miles earning $85,000 as the average income. Leases running five years are typical. The Men’s Wearhouse, Inc. Apparel The 377-unit chain operates locations nationwide. The men’s apparel stores occupy spaces of 4,500 sq.ft. to 5,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls, power, specialty and strip centers. Plans call for 50 openings annually. Expansion will take place in NY and Washington, D.C. Leases running five years are typical. Hancock Fabrics, Inc. Arts/Crafts/Fabrics The 480-unit chain operates locations nationwide. The stores, selling crafts, fabrics, drapery, upholstery, notions and accessories, occupy spaces of 13,000 sq.ft. to 20,000 sq.ft. in freestanding facilities, power, specialty and strip centers. Preferred anchors include discount department stores and supermarkets. Plans call for 40 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 60,000 within three miles earning $25,000 as the average income. Leases running 10 years are typical and the company cites JoAnn Fabrics as competition. Auto Parts Club Automotive The 10-unit chain operates locations in CA and NV. The stores, selling automotive parts, accessories, tires and batteries, occupy spaces of 35,000 sq.ft. in power centers. Preferred co-tenants include Wal*Mart. Plans call for nine openings in the coming 18 months. Expansion will take place in the Western region. Preferred demographics include a population of 400,000 within five miles earning $40,000 as the average income. Leases running 10 to 15 years are typical and the company cites AutoZone, Pep Boys and Grand Auto as competition. Ziebart International Corp. Automotive The 700-unit chain operates locations worldwide. The stores, offering under car rust proofing and related services, occupy spaces of 2,500 sq.ft. to 4,000 sq.ft. in freestanding facilities. Plans call for 60 openings in the coming 18 months. Expansion will take place throughout North America. Preferred demographics include a population of 75,000 within three miles earning $45,000 as the average income. Leases running five years, with two five-year options, are typical and the company is franchising. Buck A Book, Inc. Books The 16-unit chain operates locations in CT, MA, NH and RI. The stores, selling books, cards, computer software and seasonal merchandise at deep discount price-points, occupy spaces of 2,500 sq.ft. to 5,500 sq.ft. in downtown store fronts and outlet 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 75,000 within three miles earning $40,000 as the average income. Leases running two years are typical and the company prefers a vanilla shell. Little Professor Book Centers Books The 78-unit chain operates locations nationwide. The bookstores occupy spaces of 3,000 sq.ft. in freestanding facilities, regional malls, power, specialty and strip centers. Preferred anchors include department stores and supermarkets. Plans call for 12 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 40,000 within five miles earning $40,000 as the average income. Leases running five years are typical and the company, which is franchising, cites Barnes & Noble and Borders as competition. Andy’s Hallmark Shop Cards & Gifts The 11-unit chain operates locations in NC and SC. The card and gift stores occupy spaces of 4,000 sq.ft. to 7,000 sq.ft. in regional malls, power and strip centers. Preferred anchors include Lord & Taylor and supermarkets. Plans call for two openings in the coming 18 months. Expansion will take place in western NC and western and southern SC. Preferred demographics include a population of 30,000 within two to four miles earning $40,000 as the average income. Leases running 10 years are typical. Kiddie Academy International Child Care The 50-unit chain operates locations in CA, DE, IL, IN, MD, MI, NY, PA, TX and VA. The child care facilities occupy spaces of 7,500 sq.ft. to 10,000 sq.ft. in freestanding facilities, specialty and strip centers. Plans call for 20 openings in the coming 18 months. Expansion will take place in NC, MD, VA, PA, DE, NJ, NY, CT, VT, NH, ME, OH, IN, IL and MI. Preferred demographics include a population of 50,000 within five miles earning $50,000 as the average income. Leases running 10 years, with two five-year options, are typical and the company, which is franchising, cites Kindercare as competition. National Wholesale Liquidators Discount Store The 20-unit chain operates locations in NJ, NY and PA. The discount stores occupy spaces of 20,000 sq.ft. to 100,000 sq.ft. in downtown store fronts, freestanding facilities and strip centers. Plans call for as many as 15 openings in the coming 18 months. Expansion will take place in CT, MD, NJ, NY and PA. K’s Merchandise Mart, Inc. Department Store The 15-unit chain operates locations in IL, IN, IA and MO. The department stores occupy spaces of 85,000 sq.ft. to 105,000 sq.ft. in freestanding facilities, regional malls, power and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the Midwestern region. Leases running 15 years, with options, are typical and the prefers a vanilla shell. Movieland Cinemas Entertainment The two-unit chain operates locations in NY. The movie theaters occupy spaces from 10,000 sq.ft. in freestanding facilities, regional malls and strip centers. Preferred co-tenants include Kmart, Wal*Mart and supermarkets. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. Leases running 15 years are typical. Bomgaars Supply, Inc. General Merchandise The 13-unit chain operates locations in IA, NE and SD. The general merchandise stores occupy spaces of 15,000 sq.ft. to 30,000 sq.ft. in freestanding facilities. Preferred anchors include supermarkets. Plans call for one opening in the coming 18 months. Expansion will take place within the existing markets. The company prefers to own its locations. Krause’s Furniture, Inc. Home Furnishings The 83-unit chain operates locations in AZ, CA, CO, IL, NM, NV, TX and WA. The stores, selling upholstered furniture, furnishings and accessories, occupy spaces of 10,000 sq.ft. to 12,000 sq.ft. in freestanding facilities, power and specialty centers. Plans call for 20 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 300,000 within five miles earning at least $35,000 as the average income. Leases running seven to ten years are typical and the company prefers $75,000 over a vanilla shell. The TJX Companies, Inc. Home Furnishings The 21-unit chain operates locations in KY, MA, NH, OH and WI.
The home furnishings stores occupy spaces of 25,000 sq.ft. in power and strip
centers. Plans call for as many as 10 openings in the coming 18 months. Expansion will
take place in the Northeastern region. Home Improvement The 26-unit chain operates locations in IL and WI. The stores, selling paints and wallpaper, occupy spaces of 2,500 sq.ft. in strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 50,000 within two miles earning $70,000 as the average income. Leases running 10 years are typical and the company cites Sherwin Williams as competition. Quality Stores, Inc. Home Improvement The 106-unit chain operates locations in IN, MI, NY, OH, PA, VA and WV. The home improvement stores occupy spaces of 30,000 sq.ft. to 40,000 sq.ft. in freestanding facilities and strip centers. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for as many as 20 openings in the coming 18 months. Expansion will take place in FL, GA, KY, NC and SC. Preferred demographics include a population of 35,000 within 10 miles earning $35,000 as the median household income. Marks & Morgan Jewelers, Inc. Jewelry The 126-unit chain operates locations in AL, FL, GA, LA, MS, NC, SC, TN and VA. The jewelry stores occupy spaces of 2,000 sq.ft. in regional malls. Plans call for 15 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical and the company cites Gordon’s, Helzberg, Kay’s and Zales as competition. Rogers Ltd., Inc. Jewelry The 44-unit chain operates locations in AR, FL, IN, IA, KY, MO, NE, OH, SD, TX and VA. The jewelry stores occupy spaces of 1,000 sq.ft. to 1,800 sq.ft. in outlet centers and regional malls. Preferred anchors include Lord & Taylor. Plans call for five openings in the coming 18 months. Expansion will take place in the Midwestern region. Leases running five to seven year are typical and the company cites Zales, Sterling and Helzberg as competition. Sam Ash Music Corp. Music The 19-unit chain operates locations in CA, CT, FL, NJ, NY, OH and PA. The stores, selling musical instruments, sound and recording systems and sheet music, occupy spaces of 20,000 sq.ft. in freestanding facilities, regional malls and strip centers. Preferred anchors include Barnes & Noble, Tower Records and Virgin Records. Plans call for 10 openings in the coming 18 months. Expansion will take place in FL, CA, IL, MA, NJ and PA. Preferred demographics include a population of 700,000 within 10 miles earning $60,000 as the average income. Leases running 10 years are typical and the company prefers a vanilla shell. Ritz Camera Centers, Inc Photography The 800+-unit chain operates locations nationwide. The stores, selling cameras, photographic equipment and offering one hour film processing services, occupy spaces of 1,500 sq.ft. to 2,000 sq.ft. in downtown store fronts, specialty and strip centers. Preferred co-tenants include national coffee, vitamin, electronics and jewelry retailers. Plans call for at least 50 openings in the coming 18 months. Expansion will take place nationwide. Leases running seven to ten years are typical. Kinko’s, Inc. Services The 900+-unit chain operates locations worldwide. The stores, offering a wide variety of business services, occupy spaces of 4,000 sq.ft. to 12,000 sq.ft. in freestanding facilities and end caps of strip centers. Growth opportunities are sought worldwide. Harwyn Enterprises, Inc. Shoes The 16-unit chain operates locations in NJ and NY. The men’s shoe stores occupy spaces of 1,600 sq.ft. in outlet centers and regional malls. Preferred anchors include Macy’s and Nordstroms. Plans call for three openings in the coming 18 months. Expansion will take place in CT, PA and Washington, D.C. Leases running 10 to 12 years are typical. Levtran Enterprises, Inc. Shoes The 16-unit chain operates locations in MD and Washington, D.C. The stores, selling urban fashion footwear and apparel, occupy spaces of 3,500 sq.ft. in freestanding facilities. Preferred anchors include supermarkets. Plans call for the opening of four units in the coming 18 months. Expansion will take place in VA. Leases running five years, with two five-year options, are typical. The company caters to a 14 to 35 year old African American male clientele. Cost Plus, Inc. Specialty The 70-unit chain operates locations in AZ, CA, CO, ID, IL, IN, MI, MO, NM, NV, OH, OR, TX, WA and WI. The stores, selling wicker and rattan furniture, gourmet foods, wine and beer, occupy spaces of 18,300 sq.ft. in power and strip centers. Preferred co-tenants include bookstores and linen stores. Plans call for 20 openings in the coming 18 months. Expansion will take place in KY, OH, the Midwestern and Western regions. Preferred demographics include a population of 200,000 within five miles earning $50,000 as the average income. Leases running 10 years are typical and the company cites Pier 1 Imports as competition. Premium Tobacco Stores Specialty The 400-unit chain operates locations in AZ, CA, IL, IN, NM, OR and TX. The stores, selling tobacco products, occupy spaces of 900 sq.ft. to 1,500 sq.ft. in strip centers. Preferred anchors include supermarkets. Plans call for 50 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running three years are typical. Andronico’s Market Supermarkets The eight-unit chain operates locations in CA. The supermarkets occupy spaces of 30,000 sq.ft. to 50,000 sq.ft. in freestanding facilities and strip centers. Preferred co-tenants include Crate & Barrel, Pottery Barn, Williams-Sonoma and Restoration Hardware. Plans call for two openings in the coming 18 months. Expansion will take place in Northern CA. Preferred demographics include a population of 60,000 within two miles earning $70,000 as the average income. Leases running 20 years, with options, are typical. Henry’s Marketplace, Inc. Supermarket The 14-unit chain operates locations in CA. The supermarkets occupy spaces of 24,000 sq.ft. in freestanding facilities. Preferred co-tenants include drug stores. Plans call for three openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 100,000 within three miles earning $44,000 as the average income. Leases running 10 years are typical and the company cites Lucky’s and Von’s as competition. Space Place California Chatsworth- Devon Plaza has spaces of 4,500 sq.ft. and
5,000 sq.ft. available for lease. In Granada Hills- Knollwood Plaza
is anchored by Blockbuster and McDonald’s. The 60,000 sq.ft. project
has a 21,000 sq.ft. former Alpha Beta Market available for lease. Demographics
include a three-mile population of 106,220 earning $63,024 as the average income. In Northridge-
Northridge Market Place is anchored by Good Earth Restaurant and Thomasville
Furniture Galleries. The project has a 19,275 sq.ft. anchor position available for
lease. In Sylmar- Sylmar Towne Center is anchored by Ralph’s,
Sav-On, Kragen and five restaurants. The project has a 24,000 sq.ft. anchor position
available for lease. Fontana- Inland Empire Center is anchored by Vons,
Toys ‘R Us, Kids ‘R Us, Pep Boys and Edwards Theaters. The 309,584
sq.ft. project has spaces of 1,059 sq.ft., 2,750 sq.ft., 14,057 sq.ft. and 21,500 sq.ft.
available for lease. Demographics include a three-mile population of 106,500 earning
$42,513 as the average income. Retailers in the area include Kmart, Mervyn’s
and Target. Connecticut Stamford- Spaces of 13,500 sq.ft. and 25,000 sq.ft. are
available for lease in the downtown area. The sites are located near Stamford Town
Center, a 900,000 sq.ft. project anchored by Macy’s, Saks 5th Avenue and Filene’s.
The site is also located across from a nine-screen movie theater, 800 luxury apartments
and a 1.2 million sq.ft. office complex. Idaho Nampa- Karcher Mall is anchored by Bon Marche,
Emporium, Sears, B. Dalton, Foot Locker, Musicland and Maurices. The 466,000
sq.ft. project is scheduled to undergo a redevelopment during Summer and space is
available for lease. Demographics include a ten-mile population of 120,137 earning $40,971
as the average household income. Massachusetts Springfield- Breckwood Shoppes is anchored by Louis
& Clark Drug. The 28,000 sq.ft. project has a 4,200 sq.ft. space available for
lease. Demographics include a three-mile population of 112,000 earning $32,000 as the
average income. Missouri Joplin- North Point Shopping Center is anchored by Toys
‘R Us, OfficeMax, PetsMart, Hastings Books, Music & Video, Hobby Lobby, Factory
Card Outlet, Peir 1, Western Auto and Ryan’s Steak House. The 216,761
sq.ft. project has space available for lease. Demographics include a five-mile population
of 63,231 earning $36,058 as the average household income. The site is located across from
North Park Mall. New Jersey East Brunswick- Route 18 Shopping Center is anchored by Party
Fair. The project has spaces from 10,000 sq.ft. to 40,000 sq.ft. available for lease.
Demographics include a three-mile population of 74,555 earning $65,406 as the average
household income. Wallington- Wallington Square is anchored by Motor
Vehicle Services. The 31,850 sq.ft. project has spaces from 1,600 sq.ft. to 15,000
sq.ft. available for lease. Ohio Elyria- A former Rini Rego space is available for lease
at Sheffield Village Plaza. In North Canton- A 6,032 sq.ft. former Revco
space is available for lease at Berlin Commons. In Parma- A 20,000
sq.ft. former CVS space is available for lease at a small strip center. In Parma
Heights- A 101,000 sq.ft. project is anchored by Big Lots Furniture and Savers.
A 60,000 sq.ft. space is available for lease. Pennsylvania State College- Hills Plaza is anchored by Hills,
Weis, Bilo and Encore Books. The 320,000 sq.ft. project has an outparcel
available for lease. Tennessee Nashville- Northside Marketplace is anchored by Best
Buy, Sports Authority, Goody’s and Old Navy. The 180,000 sq.ft. project,
which is under construction, has spaces from 1,400 sq.ft. to 15,000 sq.ft. available for
lease. Demographics include a three-mile population of 28,000 earning $54,000 as the
average income. Texas Houston- Jester Village Shopping Center is anchored by HEB,
Walgreens, Pro-Cuts and Little Caesars. The 66,000 sq.ft. project has space
available for lease. Demographics include a three-mile population of 104,473 earning
$53,449 as the average income. Also in Houston- Keegan’s Meadow
Shopping Center is anchored by Randalls, Eckerd and Peter Piper Pizza.
The 124,161 sq.ft. project has space available for lease. Demographics include a
three-mile population of 135,362 earning $55,277 as the average household income. Also in Houston-
Maplewood Mall is anchored by Foodarama, Weiner’s and Little Caesars.
The 95,700 sq.ft. project has spaces available for lease. Demographics include a
three-mile population of 191,227 earning $53,944 as the average income. Also in Houston-
Merchants Park is anchored by Kroger, Weiner’s, Mac Frugal’s, Yes
Appliance and Arby’s. The 241,700 sq.ft. project has space available for
lease. Demographics include a three mile population of 117,241 earning $48,790 as the
average income. Mergers & Acquisitions Scotty’s (941-297-6075) was recently acquired by nine of its officers from GIB Group for $100 million. The company’s chief executive officer Tom Morris and chief financial officer Bob Pacos hold majority interest. Scotty’s operates 152 hardware and household accessory stores in AL, FL and GA. The company plans to open as many as 10 stores annually and plans to concentrate on the convenience market and not compete directly with Home Depot or Lowe’s. The Wet Seal, Inc. (714-583-9029) recently entered into a letter of intent to purchase Britches Great Outdoor Stores located in regional malls nationwide. Britches operates 83 stores. The Wet Seal plans to convert a majority of the stores to its Arden B. format with the remainder being converted to The Wet Seal, Contempo Casuals and Limbo Lounge concepts. The Wet Seal currently operates 411 stores in 42 states. Just For Feet, Inc. (205-408-3000) and Sneaker Stadium, Inc. recently signed a letter of intent pursuant to which Just For Feet will acquire the 38-unit Sneaker Stadium chain. Pursuant to the terms of the letter, Just For Feet will assume $43 million of existing Sneaker Stadium bank debt. In addition, should Sneaker Stadium attain future financial targets, an additional payment totaling up to $31 million may be paid to creditors by April 2002. Just For Feet plans to convert the Sneaker Stadium stores to its name and format. Following the purchase, Just For Feet will operate 124 stores. Insignia Financial Group, Inc. (212-984-8000) recently announced that its commercial real estate services unit, Insignia/ESG, Inc. has entered into a definitive agreement to acquire the commercial real estate business of Jackson-Cross Company, one of the country’s oldest commercial real estate services firms and the market leader in the Philadelphia, PA area. The acquisition gives Insignia/ESG a pre-eminent position in the Philadelphia market, and further cements its leadership position on the East Coast. The purchase price was not disclosed. Bally Total Fitness (773-399-7600) recently entered the San Francisco/Oakland, CA market with the acquisition of the Pinnacle Fitness and Gorilla Sports club chains. Bally Total Fitness operates 325 facilities in 27 states and Canada. National Vision Associates, Ltd. (770-822-4285) recently signed a definitive agreement to acquire Frame-n-Lens Optical, Inc. The transaction will consist of cash and the assumption of debt totalling $37 million. Frame-n-Lens is one of the largest optical retailers in the country and National Vision will be acquiring its 160 freestanding locations and 130 unit Club Division, of which 123 are leased optical departments located inside Sam’s Clubs. National Vision currently operates 425 units and the addition of the 290 Frames-n-Lens locations will position National Vision as the second largest retail optical company with 715 locations and third in terms of sales. A&P (201-930-8442) has offered $12.25 million to purchase five Vitale Foodtown, Inc. Foodtown supermarkets in Old Tappan, Washington Township, Dumont, Hoboken and Belleville, NJ. The bid was placed with the bankruptcy court. The deadline for additional bids ends this month. National Retail Tenants Assoc. Hosts Oct. Conference The National Retail Tenants Association Trade Show will be held
October 11 and 12 at the Omni Rosen Hotel in Orlando, FL. The trade show will be held in
conjunction with the third annual National Retail Tenants Conference. Invited
exhibitors include energy management consultants, lease and property management software
companies, lease audit consultants, lease abstracting and real estate service contractors,
property insurance and real estate tax consultants. Last year more than 90 retailers
participated in the conference and this year the show’s organizers are anticipating
more than 500 individuals from as many as 300 retailers to participate. The fee for a
booth is $1,200 and space is limited to the first 40 registrants. |