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Issue Number 25
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The Dealmakers Issue Number 25 for the week of July 17, 1998. My Way by Ted Kraus Clients: We May Love ‘em, We Need ‘em, But They’re Full of It Clients can be so full of it. I received a call from one of ours who we had sold centers to who wanted help on leasing a 45,000 sq.ft. anchor spot that had just gone dark in one of the centers we sold him several years ago. Since I had made a decent dollar off of him several years ago and this was an opportunity to make even more. I took a drive to the location and did some "homework" on local rents, vacancies and availability. The location was decent (but not great) and there was little vacancy in the market. I figured the going rate for the area was $6 to $7 a foot for a 45,000 sq.ft. big box tenant (then add the cost of any TI). This was based on conversation with eight or nine local developers I knew. I reported back to the client with this info and he ripped into me, saying I’m stupid, have no idea what I’m talking about and am antiquated in my notions on rent, because in his estimation the location commanded $13 to $15 psf. (but besides that I’m a nice guy). Fortunately, after 25 years of doing this I don’t take it personally, wished him well and was preparing to leave. He then asked that I call several anchors that I have a good relationship with to see if they had any interest. I explained I know their rent philosophy and they wouldn’t pay those numbers. He explained how he wanted desperately to pay me a commission (such a nice guy) and I should try. I agreed to call five specific retailers. Well, I went back to the office, made some phone calls and after several rounds of telephone tag and faxing I got hold of all five, three of which had no interest in the area and two who did, but wouldn’t pay anywhere near that type of rent. I was getting ready to call the client back and say I couldn’t help when I got a call from a big box retailer regarding a different site. While talking, I brought up this client’s site and was told they already had made a deal with the owner at $6.75 a foot and a lease was being prepared, so why was I offering it and where did the $13 rent come from? Was the landlord jerking him around? I explained I was just a dumb broker, knew nothing and was probably just confused about the deal. I then called the client and explained what had transpired. I asked what was happening with the lease. He explained that he was stalling that tenant, didn’t want to do the deal at such a low rent, but didn’t want to take the chance that he couldn’t find anyone at $15 psf, so this was his backup. He then ripped into me about contacting "his" tenant because they weren’t on my list, that I wouldn’t be paid a commission if he does the deal and if the deal blew because of my conversation, he was going to sue me. I explained what else could be blown and if he hadn’t been a liar and told the truth there wouldn’t be any potential problem. Anyway, our relationship now leaves a lot to be desired, but that’s part of the game. In theory, with 25 years experience in leasing, management and development, I should be a sophisticated, experienced broker who fully understands how the "game" works, but after all these years, I still don’t understand why people feel this great need to lie when the truth would not only set you free, but make life simpler. If he had told the truth, I would have known enough not to discuss the deal with the tenant and be a lot more discreet in all my conversations. On a different topic, which I know I’ve discussed before but continues to bug me; is entertainment centers. Now don’t get me wrong, they have a place in the retail world, they’re just not the answer to everything as many people now seem to believe. As an example, everyone is doing ‘em, even when they’re not. I received a call from a leasing agent in Ohio regarding a center he was leasing. I asked for a brief overview and was told it was a 153,000 sq.ft. mixed use center consisting of both conventional and entertainment oriented retailers. I asked: 1) what does that mean? and 2) who’s in the center? I was told they were pioneering and combining the best of draws in both concepts. Again, I asked what does that mean? (I’m not too swift with grasping new concepts, you have to use small words and draw pictures for me to understand). He then explained that they had signed a lease with one of Ohio’s best supermarkets which insures high daily traffic and in addition, made deals with both Taco Bell and McDonald’s which brings in a younger clientele and compliments their proposed movie theater deal. Now I was really getting confused. I said you mean that a center that has a supermarket, proposed theatre and two fast food tenants is both an entertainment center and a new pioneering concept? He said yes. I asked his age and was told he’s 27. I explained he was "cute" and then there was a long pause while he tried to decide if I was attempting to pick him up or was just plain weird. Because of his youth and that I didn’t have much time that day, I decided not to debate the subject and just said I wasn’t interested. The "entertainment" craze reminds me of the start of power center development. Every center built for about five to seven years was a power center, even if it consisted of only a Kmart and supermarket. God forbid someone admit that they were building an ordinary, time tested conventional retail complex. That wasn’t sexy enough, it had to be a power center, whatever that means. The same is true for "entertainment." What constitutes entertainment is still being debated. As an industry, why don’t we just try and develop centers that serve the public well. If we do, it will guarantee success, no matter what we call ‘em. Parting thoughts, I think we’re in the final phase of this phenomenal growth and prosperity we’ve been going through for the last five years. I don’t base that on statistics, market trends or whatever, but that people I’ve known and respected for 20 years are now attempting to acquire portfolios at 7.5% to 8.25% caps. These are people that have "been there, done that" types who are self made millionaires. People, who in my humble opinion, know what they’re doing and are now willing to buy centers at an 8% cap with PetsMart as an anchor paying $21.50 a foot. Now in defense of their sanity, they all explain how it’s "different" this time around (which they really don’t believe) and most importantly, none of their own money is on the line (which is the real reason). Some of the cracks are beginning to show already, i.e.: many REITs’ values are dropping and the Federal Reserve recently warned banks to be more carefully with their lending, especially when it comes to REITs. Too many REITs have been leveraging their acquisitions too highly and paying prices higher than replacement costs. Oh well, the second time around the banks should be much more experienced in bailouts. Last, last parting thoughts. I’ve decided that what really makes a person successful in our industry (or any other industry) is patience and determination. I had been attempting to sell a center that was extremely overpriced, with the hope that the owner would become somewhat reasonable if I brought a willing, qualified buyer at a realistic number. Well, that never happened. I brought in several "good" ( IMHO) potential buyers, but all were rejected with minimum willingness to negotiate. Well it works out that the first offer I brought in was by another client who I have a good relationship with and did not take rejection of his offer personally and continued to call the seller almost on a daily basis. Well, his determination paid off. I got a call from the buyer bragging the deal was ready to go into closing. While I knew they had been talking, I thought he was wasting his time (I had stopped working on the project two months before). They had cut a deal both could live with. It had taken nearly three months of negotiations, but they got there. He’s a better person than I, since I would have given up two months ago. It looks like I may make a commission I don’t fully deserve (but I’ll take it anyway...thank you very much). Hopefully I’ve learned something. Home Furnishing Retailers Expanding Ikea operates 150 stores worldwide, including 14 units in the U.S.
The stores, selling contemporary, European-style furniture, occupy spaces of 150,000
sq.ft. to 200,000 sq.ft. in freestanding facilities. Plans call for two openings in the
coming 18 months. Expansion will take place nationwide. Grand Furniture Discount Store operates nine locations in VA. The
furniture stores occupy spaces of 30,000 sq.ft. in freestanding facilities. Plans call for
three openings in the coming 18 months. Expansion will take place in MD and NC. Leases
running five years are typical and the company prefers a vanilla shell. The company cites
Heilig-Meyers and Value City as competition. Summit Naked Furniture trades as Naked Furniture at 40
locations East of the Mississippi River. The stores, selling unfinished, finished and
customer upholstery furniture, occupy spaces of 6,000 sq.ft. to 8,000 sq.ft. in strip
centers. Plans call for as many as four openings in the coming 18 months. Expansion will
take place nationwide. Preferred demographics include a population of 150,000 within five
miles earning at least $40,000 as the average household income. Leases running five years,
with a five-year option, are typical. Skinner Corp. trades as Skinner Furniture Stores at 16
locations in AL and GA. The stores, selling furniture, appliances and electronics, occupy
spaces of 10,000 sq.ft. in strip centers. Preferred anchors include Kmart and Wal*Mart.
Plans call for two openings in the coming 18 months. Expansion will take place in the
existing markets. Preferred demographics include a population of 20,000 within 10 miles
earning $20,000 as the average income. Leases running three years are typical and the
company cites Heilig-Meyers, Farmers and Badcock as competition. Colortyme, Inc. trades as Colortyme at 430 locations
nationwide. The stores, selling furniture, appliances and electronics on a rent-to-own
basis, occupy spaces of 3,000 sq.ft. to 6,000 sq.ft. in strip centers. Preferred
co-tenants include discount stores and supermarkets. Plans call call for 50 openings in
the coming 18 months. Expansion will take place nationwide. Preferred demographics include
a population of 70,000 within three miles earning $25,000 as the average income. Leases
running three to five years are typical and the company prefers a vanilla shell. Who’s Opening & Where Cafe Odyssey (612-841-6131) recently opened a 17,100 sq.ft. restaurant at Mall of America in Bloomington, MN. The restaurant features three distinct dining areas including The African Serengeti Plains, Machu Picchu and Atlantis. A large bar and a retail shop are also included in the complex. CompUSA, Inc. (972-982-4000) recently opened a 25,000 sq.ft. store at Carolina Pavilion Shopping Center in Charlotte, NC; a 30,300 sq.ft. unit at Northmall Centre Shopping Center in Tucson, AZ; a 25,000 sq.ft. store in Bakersfield, CA; a 26,900 sq.ft. store in Augusta, GA; a 40,000 sq.ft. unit in Honolulu, HI; a 31,000 sq.ft. store in San Francisco, CA; a 28,000 sq.ft. store at Plantation Crossing Shopping Center in Plantation, FL and a 26,000 sq.ft. store at Columbia Crossing Shopping Center in Columbia, MD. The company is planning to open a 29,700 sq.ft. store at Carousel Center Shopping Center in Syracuse, NY during early 1999. Fresh’n Lite, Inc. (800-259-2675), which recently opened a Street Talk Cafe in Richardson, TX, plans to open four Street Talk Cafes in the Dallas/Fort Worth metroplex during late 1998 and early 1999. The design elements of Street Talk Cafe convey the "street" and "outdoor" atmosphere. Guests walk into the restaurant on brick streets and wait to be seated in a trolley car area. Guests dine in a variety of rooms that reflect the type of shops, stores and surroundings associated with a "street experience." Kohl’s Department Store (414-703-7000) plans to develop an 86,854 sq.ft. department store in Buchanan, WI. The company recently opened a store in Woodbridge, IL. Outback Steakhouse (813-282-1225) plans to open a restaurant at a Tanger Factory Outlet Center in San Marcos, TX this month. Dillard’s (501-376-5200) is currently developing a 365,000 sq.ft. department store at Fashion Square in Scottsdale, AZ. The unit is replacing a 245,000 sq.ft. store at the mall and will be the largest unit in the Dillard’s chain. Gart Sports Co. (303-861-1122) plans to develop as many as seven sporting goods stores between Everett and Olympia, WA and add 20 stores to its 22 units already open in CA. The stores in WA will be named Gart Sports and the CA units will be named Sportmart. Baker’s Supermarkets (402-397-4321) plans to develop a 72,000 sq.ft. supermarket at Lakeside Plaza Shopping Center in Omaha, NE. Round Table Pizza (510-274-1700) recently signed an area development deal with franchisee Concord Sierra Restaurants to develop 50 Round Table Pizza restaurants in the Phoenix, AZ metropolitan area by the year 2005. Currently, Round Table Pizza operates 539 restaurants in AK, AZ, CA, HI, ID, NV, OR, UT and WA. The May Department Stores Company (314-342-6300) plans to open a 140,000 sq.ft. Kaufmann’s Department Store at Franklin Mall in Washington, PA during Fall 1999 and a 300,000 sq.ft. Foley’s Department Store at Memorial City Mall in Houston, TX during November 1999. Pier 1 Imports (817-878-8000), which currently operates 755 stores in 47 states, Canada, Britain, Japan, Mexico and Puerto Rico, plans to add 65 stores in North America, remodel 50 stores and remerchandise 100 others during its current fiscal year. The company also recently opened a store in Kakaako, HI. Steinhafels (414-784-0500) plans to develop a 100,000 sq.ft. furniture store at 50/94 Retail Center in Kenosha, WI. The store is expected to open during late Summer/early Fall 1999. Williams Sonoma Marketplace (415-421-7900) recently opened a 15,000 sq.ft. superstore at Fashion Outlet of Las Vegas in Las Vegas, NV. The Superstore contains the company’s four concepts, Williams Sonoma, Pottery Barn, Gardener’s Eden and Hold Everything. It is the first superstore in the Western region. Panda Management Company (213-257-3698) recently launched a new concept in the "fast casual/food-to-go" category known as Panda Panda. Three of the new units have been opened in Southern CA and several more are planned before the end of the year. Eckerd Drug Stores (813-399-6355) plans to open an 11,200 sq.ft. store in Hillsborough County, FL next month and an 11,200 sq.ft. store in Gainesville, FL during October. Rainforest Cafe (612-945-5400) recently opened its first location in Canada, an 18,000 sq.ft. unit, at Eaton Centre Metro in Burnaby, British Columbia. AutoNation USA (954-769-6833) recently opened its first AutoNation USA Truck Center in North Houston, TX. The site will sell used light trucks, sport utility vehicles, vans and mini-vans. Mars 2112 (610-838-5358) recently opened a 35,000 sq.ft. bi-level themed restaurant in Manhattan, NY. The restaurant is designed to give the patron the feeling that he/she is traveling to Mars to have dinner. Federated Department Stores (513-579-7000) plans to open a three-level 215,000 sq.ft. Macy’s at Fair Oaks Mall in Fairfax, VA during Summer 2000. Planet Hollywood (407-363-7827) and Host Marriott (301-380-1244) recently formed a joint venture to create movie-theme dessert cafe restaurants called Cool Planet. The chain, which has been in the development stage for almost a year, will feature ice cream, baked goods and other plated desserts in a sit-down cafe heavy on eye-catching, cinema-based decor. The look will be similar to a Planet Hollywood restaurant, but tailored to appeal to a young audience. The first unit is expected to open in Santa Monica, CA next month. Six additional units are expected to open before the end of the year and a total of 15 are expected to be open by next Summer. Most of the units will be in airport terminals and shopping malls. Host Marriott will handle construction and the day-to-day management of the chain. Disney Co. (818-265-3320) recently opened its first DisneyQuest indoor theme park in Lake Buena Vista, FL. The company is planning to open as many as 20 such units worldwide in the coming years with the next planned opening scheduled for Chicago, IL next year. Other US cities under consideration for sites include Philadelphia, PA; Dalllas, TX; San Francisco, CA; Atlanta, GA; Seattle, WA and Washington, D.C. The sites are expected to average 100,000 sq.ft. and accommodate 1,000 visitors at a time. Slumberland (612-482-7500) plans to open a 25,000 sq.ft. store in Aberdeen, SD during October. Home Depot (770-433-8211) plans to open a 115,000 sq.ft. store at Plaza Escorial in Carolina, PR during September and a 115,000 sq.ft. store at Plaza Del Sol in Bayamon, PR during January 1999. Seven additional stores are planned for the island in the coming three to four years. Wendy’s (614-764-3099) plans to open two restaurants in Buffalo, NY during Fall through its franchisee Great Lakes Restaurant Management LLC. Players, Inc. (407-903-1974), the licensing and marketing subsidiary of the NFL Players Association, recently opened its first The Players Grill, a football themed restaurant in Orlando, FL. Millennium Entertainment Group has been licensed by Players, Inc. to own and operate the first 12 units. Sun Television and Appliance, Inc. (614-492-5600) plans to open an 18,262 sq.ft. store at Easton Market in Columbus, OH during Fall. R/C Theatres (410-526-4774) plans to open a 16-screen, 53,376 sq.ft. movie complex at Valley Mall in Hagerstown, MD during Fall 1999. New Construction Hallmark Partners and Stiles Corp. plan to acquire a 23-acre
parcel of land to develop Windsor Commons in Jacksonville, FL. Ground is expected
to be broken during Summer 1999 and the plans for the 203,000 sq.ft. project include
75,000 sq.ft. of retail space anchored by a grocery store; an 8,000 sq.ft. restaurant;
four additional outparcels, including a potential hotel site and two 60,000 sq.ft.,
three-story office buildings. The development cost is expected to be $21 million. The site
is being developed near the Windsor Parke commercial and residential center and the center
is expected to draw its customer base from this development. Edens & Avant recently broke ground on Springs Crossing
in Lexington, SC. The 49,500 sq.ft. project will be anchored by Food Lion and Family
Dollar. An outparcel remains available for lease and future expansion of the center is
possible. The company recently broke ground on Robbins Towne Center in Robbins, NC.
The 42,123 sq.ft. project will be anchored by Lowes Foods and Dollar General.
An outparcel remains available for lease and future expansion of the center is possible.
The site is expected to open during November. The company is also developing a 10,125
sq.ft. freestanding CVS Pharmacy in Florence, SC. The store is expected to open
next month. TrizecHahn Centers is planning to redevelop Palm Desert Town
Center and buy out the co-owner of the property, J-B Property Services, at a
total cost of $100 million. Plans for the 851,000 sq.ft. project include the
reconfiguration of the mall’s north side to eliminate the theater entrance; the
demolition of the 10-screen Metropolitan Theaters multiplex and the construction of
a 19-screen Metropolitan multiplex in its place; and the consolidation of the two Robinson-May
Department Stores which are located at the mall’s west end and in the center into
the west end location and expansion of that space by 55,000 sq.ft. TrizecHahn is looking
to attract another department store to occupy the vacated Robinson-May center location and
is planing to add space for 10 additional specialty stores and construct two parking
structures that will add 970 parking spaces to the complex. In addition to Robinson-May,
the project is anchored by a Bullocks Department Store, a Bullocks Mens &
Home store and JC Penney. Westfield America plans to expand Valley Fair Shopping Center
in San Jose, CA over three phases beginning this Fall after it acquires the mall from TrizecHahn
next month. The three-year expansion is expected to begin during Fall with the development
of a 970-space parking structure that will be completed before the end of the year. Phase
two construction of two additional parking structures is slated to begin during January
1999 and be completed by Fall 2000. When completed the center will have a total of 7,109
parking spaces. Phase two construction will also include the development of a 225,000
sq.ft. Nordstrom store to replace its current 165,000 sq.ft. store and the addition
of another 115,000 sq.ft. of retail space which include space for 25,000 sq.ft. to 30,000
sq.ft. "statement stores." The new Nordstrom and 115,000 sq.ft. expansion are
expected to be completed during April 2000. Phase three of the redevelopment, the
reconfiguration of the former Nordstrom space into retail shops, will begin during August
2000 and open during Spring 2001. Currently, the 1.185 million sq.ft. project is also
anchored by a 315,000 sq.ft. Macy’s Women’s & Children store and a
200,000 sq.ft. Macy’s Men’s, Home & Furniture store. Sleiman Enterprises has a contract to buy 50 acres of land at Freedom
Commerce Center in Jacksonville, FL to develop a 400,000 sq.ft. shopping center on the
site. Construction is expected to begin within six months and the project is expected to
open 18 months after that. Although no tenants have been announced, the plans call for the
development of nine freestanding buildings to house large restaurants and shops. The site
is located near The Avenues Mall and across from Timberlin Village and Southside
Square, both of which are operated by Sleiman Enterprises. Tenants at Timberlin
Village include OfficeMax, Borders, PetsMart, Athlete’s Foot and Bed Bath
& Beyond and tenants at Southside Square include Computer City, Service
Merchandise, Target and T-Birds. World Entertainment Centers plans to break ground on Neonopolis
in downtown Las Vegas, NV during the fourth quarter. The 252,000 sq.ft.
retail/entertainment/restaurant project will be anchored by a 16 to 18 screens Mann
Theatres. The site is bordered by Fremont Street, which features The Fremont Street
Experience pedestrian mall, Las Vegas Boulevard, Ogden Avenue and Fourth Street and is
expected to open during the third quarter of 2000. Hogan-Burt recently broke ground on Channelside at Garrison
Seaport in Tampa Bay, FL. The 230,000 sq.ft. project will be anchored by a 15-screen
movie theater and five restaurants. The first three restaurants committed to the site
include an 8,000 sq.ft. Charley’s Crab, a 7,500 sq.ft. Max’s Grille
and a 9,500 sq.ft. Aztec World Cafe. The site is expected to open during November
1999. Manekin Corporation recently broke ground on Fairgrounds Plaza
Shopping Center in Timonium, MD. The 128,000 sq.ft. project will be anchored by a
56,000 sq.ft. SuperFresh Supermarket. The site is expected to open during Fall. Jordon Perlmutter recently began demolition of the 800,000 sq.ft. Northglenn
Mall in Denver, CO and plans to redevelop the site into a 650,000 sq.ft. outdoor
shopping center named The Marketplace at Northglenn. The project will be anchored
by an existing 83,000 sq.ft. Mervyn’s store and a 131,000 sq.ft. Eagle
Hardware store. Existing tenants that have struck deals to remain at the center
include Black-Eyed Pea and 7-Eleven. They will remain open during the
redevelopment. New tenants coming to the site include Office Depot, Goodyear and Radio
Shack. The company currently is negotiating with 15 tenants, including a sporting
goods retailer, a large bookstore and a 16-screen movie theater operator. Leasing of the
center is moving so briskly that the projected grand opening of the project may be moved
up to the end of 1999 instead of June 2000. Jordan Perlmutter originally developed the
center in 1968 and later sold it. It reacquired the site, which was 20% leased, in April
for $9 million and is planning to spend approximately $40 million on the redevelopment. Swain & Associates is currently developing The Forum in
Wilmington, NC. The 100,000 sq.ft. project is being developed in two, 50,000 sq.ft.
phases. Phase I, which is expected to be completed during August, will accommodate 15 to
20 individual retailers. The first three will include a 7,500 sq.ft. Milano’s
Restaurant, a 1,900 sq.ft. NOFO gift store and a 10,000 sq.ft. Bank of
Wilmington. The center, located adjacent to the Landfall neighborhood and Wrightsville
Beach, is designed in the tradition of classic Roman architecture and features a center
dome, four primary pediments, 20-foot archways, columns, balustrades, copper roof and
white stucco accents. The facade is finished in a paprika-colored, manufactured stone
imported from Canada. Plum and oyster-colored awnings accent the facade and select store
entries. The center is set apart because of absence of 20,000 sq.ft. superstores. Rents at
this upscale shopping center range from $18 to $22 per square foot, compared to
Wilmington’s typical rental rate of $8 to $18 per square foot. Phase II construction
is expected to begin during Fall. Sources of Financing Liberty Mortgage Acceptance Corporation (916-568-0100) recently placed a 20-year fixed rate permanent mortgage for $4.165 million for a Hannaford Brothers Supermarket in Richmond, VA. The company also recently placed a 15-year fixed rate permanent mortgage for $2.796 million for a Wal*Mart store in Whitinsville, MA. Metromedia Restaurant Group (972-588-5673), Captec (800-522-7832) and CNL (800-522-3863) recently completed a $190 million refinancing transaction for S&A Restaurant Corp., which will accelerate growth plans for Bennigan’s and Steak and Ale restaurants. New growth plans include the doubling of the Bennigan’s chain in the coming five years and a 50% growth in the number of Steak and Ale units in the coming five years. The transaction with Captec and CNL includes a combination of debt and net lease financing. Refinancing S&A Restaurant Corp.’s nine-year-old debt provides the company with more favorable interest rates and frees up capital for reinvestment. Net lease financing also enables the company to leverage its real estate investments. Captec provided $42 million in debt financing and $35 million in net lease financing. Captec also has a forward commitment to provide an additional $5 million in debt financing. CNL, which had previously committed $15 million of net lease financing, provided $68 million in net lease and $46 million in debt financing in this most recent transaction. Breslin Realty Development Corp. (516-741-7400) originated a $500,000 mortgage for a 10,000 sq.ft. CVS location in Garden City, NY on behalf of the landlord. The loan was funded by a local savings institution. Edens & Avant (800-662-7212) recently completed a secured debt facility transaction with Credit Suisse/First Boston for $84.1 million. The transaction was collateralized with 21 properties in the company’s Necessity Retail real estate protfolio. Chase Commercial Mortgage Banking (800-276-0035) offers a mortgage program for grocery store and department store anchored retail centers. Unanchored centers will be considered on a case-by-case basis. The minimum loan is $3 million and terms are seven and ten year balloon and 15-year self-amortizing terms. Amortization is up to 30 years. The loan to value maximum is 75% based on a FIRREA appraisal. The application fee is $5,000 which is non-refundable. Food Tenants Hungry for Sites in KY and TN Fannin Enterprises, Inc. does business as Kentucky Fried Chicken
at 10 locations in KY, OH and WV. The fast food restaurants occupy spaces of 3,000 sq.ft.
in freestanding facilities. Preferred anchors include Kmart and Wal*Mart.
Plans call for three openings in the coming 18 months. Expansion will take place in KY and
WV. Preferred demographics include a population of 28,000 within 20 miles earning $22,000
as the average income. Leases running 10 years are typical and the company cites Hardee’s,
Lee’s, Ponderosa and Golden Corral as competition. The Krystal Company trades as Krystal at 350 locations in
AL, AR, FL, GA, KY, MS, NC and TN. The restaurants occupy freestanding facilities on land
area running 30,000 sq.ft. to 40,000 sq.ft. Preferred anchors include Wal*Mart.
Plans call for 40 openings in the coming 18 months. Expansion will take place in the
Southeastern region. Leases running 10 years are typical and the company, which is
franchising, cites McDonald’s, Burger King, Wendy’s and White Castle
as competition. C&M Smith Restaurants, Inc. trades as Taco Bell at 12
locations in KY and IN. The Mexican fast food restaurants occupy spaces of 1,800 sq.ft. in
freestanding facilities and regional malls. Preferred anchors include Kmart, Wal*Mart
and supermarkets. Plans call for as many as two openings in the coming 18 months.
Expansion will take place in the existing markets. Preferred demographics include a
population of 10,000 within one mile earning $25,000 as the average income. Leases running
five to twenty years are typical. McFadden Partners trades as USA Cafe and Chesterfields
Restaurants at five locations in LA, MS, TN and TX. The restaurants occupy spaces of
7,500 sq.ft. in freestanding facilities, regional malls and strip centers. Plans call for
five openings in the coming 18 months. Expansion will take place in the Southeastern
region. Leases running 15 to 20 years are typical and the company, which is franchising,
prefers tenant improvements. The company cites Houston’s and J.
Alexander’s as competition. Casa Ole Restaurants, Inc. trades Casa Ole Restaurants, Monterey
Tex-Mex Cafe, Monterey’s Little Mexico and Tortuga’s Cantina at 80
locations in ID, LA, OK, TN, TX and WV. The Mexican restaurants occupy spaces of 4,000
sq.ft. to 5,000 sq.ft. in freestanding facilities. Plans call for eight openings in the
coming 18 months. Expansion will take place in AZ, FL, TN and TX. Preferred demographics
include a population of 80,000 within three miles earning $60,000 as the average income.
Leases running 10 years are typical and the company requires substantial tenant
improvements. Closings Long John Silvers Restaurants, Inc. (606-263-6000), which recently filed for Chapter 11, plans to close 76 underperforming restaurants nationwide. HomePlace (216-328-9500) plans to close 10 unprofitable stores nationwide including a store at North Hills Village Mall in Ross, PA which opened during June 1997. General Cinemas Theatres (617-264-8000) plans to close its three screen theater at Glendale Shopping Mall in Glendale, IN this month. The company had operated the unit since 1967. CVS (401-765-1500) recently closed four Revco Drug Stores in Biloxi, MS. Three of the stores will become Rite Aid units. Burdines, a division of Federated Department Stores (513-579-7000) plans to close its 192,000 sq.ft. Tampa Bay Center department store in Tampa, FL early next year. The company is opening a new unit at Citrus Park Town Center located 10 miles away. The company decided to close the Tampa Bay Center store because it would have had four stores within a 10 mile radius. Levitz Furniture Corp. (407-994-5151) plans to close 13 stores in the Clearwater, New Port Richey, Orlando and Tampa, FL; Denver, CO; St. Louis, MO and San Diego, CA markets due to declining sales. On a positive side, the company is looking to open 15 stores in the New York City, NY; Los Angeles, CA; Philadelphia, PA and Seattle, WA markets. Emporium (541-746-9611) recently closed its department store at Lakewood Mall in Tacoma, WA. The store, which had operated at the mall for eight years, was closed because the store was not meeting the company’s expectations. In response to the closing, the owners of Lakewood Mall, Lakewood Real Estate LLC, have sued Troutman Investment Co., owner of the Emporium chain, for allegedly breach of contract and are seeking unspecified financial damages. Lakewood Real Estate claims the Troutman Investment Co. owes the mall $223,106 in annual lease payments through 2010 and that the store’s owners had planned to hold a liquidation sale. Lakewood Real Estate says that Emporium’s lease prohibits liquidation sales. In an April letter, Troutman indicated to Lakewood Real Estate that the store planned a two month liquidation sale beginning June 15 and that the store would close on August 15. The store, however, was closed on June 24. Buyers & Sellers Syndicated Equities announces a new Multi-Owner Ownership Program
(MOO) for purchasing property qualifying for 1031 exchanges. The primary focus of the
company’s transactions during the past several years has been with individuals who
purchase net-leased retail properties to complete 1031 exchanges. Recently, at the request
of its clients, the firm began structuring opportunities for investors to acquire partial
interests in credit tenant, net-leased properties. Through the MOO Program participants
receive the benefits of individual ownership prorated to their equity participation. To
simplify the process, the entire transaction is arranged by Syndicated Equities. The firm
acquires the property, and arranges the financing, as well as the legal and accounting
services necessary for completion of the acquisition. Additionally, the company acts as
asset manager for the purchased properties. Recent MOO Program transactions exceed $20
million and include properties net-leased to Sears, Dominick’s, Caremark and
Walgreens. In order news, the company recently brokered the sale of a Rite-Aid Drug Store
in Buffalo, NY for $1.85 million. The store was acquired by a Chicago area investor to
meet a 1031 exchange. Millennium Properties, Inc. has the listing to sell Huntley Square
in Carpentersville, IL. The 85,000 sq.ft. retail/office building is situated on an outlot
of Spring Hill Mall. The property produces 10% cash on cash return and has $3.85 million
in 7.5% financing that is assumable. The company also has the listing to sell Brown Deer
Shopping Center in Brown Deer, WI. The 52,000 sq.ft. project adjoins a Supersaver Grocery
Store Jeffery Realty recently sold the 110-unit R&S Strauss
automotive parts retailing chain to a NJ-based investment group. Jeffery Realty has been
appointed as the exclusive real estate broker to handle both the expansion and disposition
of all company stores. Teachers Insurance and Annuity Association-College Retirement Fund
Equity is selling its 55% stake in Mall of America in Bloomington, MI. The 4.2 million
sq.ft. project is anchored by Macy’s, Nordstrom, Bloomindale’s and Sears and
features 520 specialty stores. It draws more than 40 million visitors per year. The front
runner to purchase TIAA’s share is Simon DeBartolo, which is the mall’s manager.
A privately held Simon affiliate holds a 22.5% stake in the mall and Triple Five Corp. of
Canada owns the remaining 22.5%. CBL & Associates Properties, Inc. recently signed an agreement
to acquire two regional malls, two associated centers and one community shopping center in
the Nashville, TN metropolitan area from a partnership managed by an affiliate of the
O’Connor Group for a total purchase price of $247.4 million. The projects being
acquired include the 1.073 million sq.ft. Rivergate Mall in Goodlettesville; the 1.095
million sq.ft. Hickory Hollow Mall located 10 miles southeast of downtown Nashville; the
166,366 sq.ft. The Village at Rivergate located adjacent to Rivergate Mall; the 76,640
sq.ft. The Courtyard at Hickory Hollow located adjacent to Hickory Hollow Mall; and the
93,200 sq.ft. Lions Head Village in West Nashville. Pacific Life Insurance Co. recently foreclosed on County Fair Mall
in Woodland, CA. The 500,000 sq.ft. project, which is anchored by JC Penney, Gottschalks,
Mervyn’s and Target, was taken back from County Fair Associates, a partnership
controlled by Roebbelen Land Co. The partnership owned Pacific Life approximately $19.3
million on a note that originally was for $21 million. Pacific Life has retained Grubb
& Ellis to lease and manage the 12-year-old mall. Jones Lang Wootton represented The First National Bank of Chicago
in its sale of 605 North Michigan Avenue in Chicago, IL. The 81,000 sq.ft. project was
sold to a Swedish pension fund for $34.85 million. Adams-Nelson & Associates, Inc. has the listing to sell an
82-acre tract of land on the west side of Route 11, just north of Strasburg, VA. The site
is located across from Strasburg Shopping Center. Mergers & Acquisitions CompUSA, Inc. (972-982-4000) and Tandy Corporation (817-415-3730) recently announced that the companies have signed a definitive agreement for the purchase of Tandy’s Computer City subsidiary by CompUSA for $275 million, payable in a note and cash. The deal is expected to close during September. Blockbuster Entertainment (972-448-7700) has emerged as the likely buyer of the bankrupt Planet Video chain in WI. Blockbuster’s all cash bid of $10.18 million beat out a bid by Video City which was for $14.2 million, of which $9.2 million was in Video City securities. Of the 36 Planet Video stores, Blockbuster will acquire 20 of them. The remainder are expected to close. Genesco, Inc. (615-367-8281) recently announced that it has agreed to sell its western boot business to Texas Boot, Inc. The sale includes most of the assets comprising Genesco’s Laredo Boot division and its chain of 26 Boot Factory stores. Grow Biz International, Inc. (612-520-8500) recently announced the sale of its 137-unit Disc Go Round franchise concept to CD Warehouse, Inc. for $7 million in cash plus the assumption of $400,000 in liabilities. CD Warehouse currently operates 163 stores and the Disc Go Round acquisition will give it 300 stores in 40 states and five countries. Renters Choice, Inc. (972-701-0489) recently entered into an agreement with Thorn plc (316-636-7812) to acquire Thorn’s US subsidiary, Thorn Americas, Inc., for approximately $900 million in cash. Thorn Americas currently operates approximately 1,400 rent-to-own stores trading as Rent-A-Center, Remco and U-Can Rent. The deal, which is expected to be completed during the fourth quarter of the year, will give Renters Choice 2,070 stores having annual sales in excess of $1.2 billion. The Elder-Beerman Stores Corp. (937-296-2805) recently entered into a definitive agreement to acquire Stone & Thomas, a 21-unit privately held department store chain operating stores in KY, OH, VA and WV, in a transaction valued at approximately $38 million, including the repayment by Elder-Beerman of Stone & Thomas’ indebtedness. The deal is expected to close by the end of this month. Elder-Beerman plans to convert the Stone & Thomas units to Elder-Beerman stores by the end of this year. Two of the smaller units, located in Buckhannon and Elm Terrance, WV, will be closed due to their size limitations. Prime Retail (410-234-0782) and Horizon Group (616-798-9100) announce that both companies board of directors have approved the merger of the two companies. The merger is for an aggregate consideration of approximately $973.1 million, including the assumption of $536 million of Horizon debt. The merger provides for Prime Retail to integrate 22 of Horizon’s top performing outlet centers into its portfolio and will establish Prime Retail as the largest owner/operator and developer of factory outlet centers in the world, with 49 centers totaling approximately 13.7 million sq.ft. of space in 26 states. Horizon’s 13 remaining centers and Prime’s centers in Daleville, IN and Gretna, NE, totaling 3.3 million sq.ft., are being spun-off into a separate public company called Horizon Group Properties, Inc. Real Estate Professionals Making The News Casa Ole Restaurants, Inc. (713-943-7574) announces the promotion of Curt Glowacki to the position of president and chief operating officer. The Mills Corporation (703-526-5000) announces that Terrence LaPier has joined the company as senior managing director of international. In his new position, LaPier will be responsible for spearheading Mills’ international development plans in Europe, South America and Asia. Charter Oak Partners (703-905-4400) announces that Richard Goldman has joined the company as senior vice president, leasing. In his new position, Goldman will be responsible for overseeing all facets of leasing activities of the company’s entire outlet center portfolio. Edward T. Byrd and Company (407-426-8868) announces that Tony Ferry has joined the company as a mortgage production associate. Ferry will be involved in loan origination, financial analysis and underwriting of prospective loans. His area of responsibility will be central and northern FL. Woolworth Corporation (212-553-7017) recently named Gwen Manto president of the Kids Foot Locker division. Kids Foot Locker operates 275 stores nationwide. Anthony Realty, Inc. (732-935-1144) announces that Ed Guerin has joined the company as a land sales specialist. The Timberland Compamy (603-772-9500) announces the promotion of Jeffrey Swartz, executive vice president and chief operating officer to president and chief executive officer. Jones Lang Wootton (212-836-9418) announces that Virginia Pittarelli has joined the company as director of its new national retail servivces group. Pittarelli is formerly the managing director at CB Commercial. Pittarelli will be responsible for launching a national retail program to provide agency, leasing and consulting services to national and international retail clients. In addition, JLW welcomes additional members of Pitarelli’s team--all previously with CB Commercial--including James Leniart as senior vice president; BB Friedberg as vice president and Maureen Lachman as assistant vice president. Morton’s Restaurant Group, Inc. (516-627-1515) announces that John Bettin has been named president of the company. Lowe’s Companies, Inc. (910-658-4223) announces that Michael Skiles has been named vice president of real estate for the Western Division. Skiles will lead the company’s real estate and development activities related to the company’s expansion into the Western region. Payless Cashways, Inc. (816-234-6630) announces that Millard Barron has been named president and chief executive officer. The Quizno’s Corporation (303-291-0999) announces that Jim Bishop has joined the company as vice president of real estate. In his new position, Bishop will be responsible for developing a broker network for Quizno’s Area Directors and assisting in the procurement of real estate sites through non-traditional sources. Long John Silver’s Restaurants, Inc. (606-388-6000) announces the appointment of Nana Mensah as president and chief operating officer. Business Strategy Group, Inc. (617-558-0141), a full service business consulting group, and its affiliate Shane and Paolillo, P.C., a full service law firm, have announced that they have expanded their services through their affiliate BSG, Inc.-Venture Resources Group by joining the VR Business Brokers national network of brokers. BSG and S&P have provided debt and equity financing, strategic planning, marketing, mergers and acquisitions to hundreds of companies. The affiliation with VR will provide BSG and Venture the strength to market businesses priced from $50,000 to $5 million, not only in the region but nationally. Grubb & Ellis (770-552-2400) announces that Penelope Cheroff has joined the company’s Atlanta, GA office as a retail senior senior vice president. Lead Sheet Apparel The 37-unit chain operates locations in AZ, CA and NV. The women’s apparel stores occupy spaces of 6,000 sq.ft. to 10,000 sq.ft. in outlet centers and regional malls. Plans call for 25 openings in the coming 18 months. Expansion will take place nationwide. Loehmann’s, Inc. Apparel The 73-unit chain operates locations in 23 states. The stores, selling better women’s designer ready-to-wear at off-price points, occupy spaces of 25,000 sq.ft. to 62,000 sq.ft. in downtown store fronts, regional malls and strip centers. Growth opportunities are sought nationwide. Half Price Books Records Magazines Books The 60-unit chain operates locations in CA, IA, MN, OH, TX, WA and WI. The stores, selling books, CDS, tapes and magazines, occupy spaces of 8,000 sq.ft. in freestanding facilities and regional malls. Preferred anchors include Target. Plans call for seven openings in the coming 18 months. Expansion will take place in AZ, OH, PA and WA. Preferred demographics include a population of 30,000 within three miles earning $60,000 as the average income. Leases running five to ten years are typical and the company prefers turn key deals. Thoughtfulness, Inc. Cards & Gifts The 18-unit chain operates locations in KY, OH, PA and WV. The stores, selling greeting cards, gifts and candy, occupy spaces of 3,000 sq.ft. to 4,000 sq.ft. in regional malls, power and strip centers. Preferred anchors include department stores and supermarkets. Plans call for one opening in the coming 18 months. Expansion will take place within the existing markets. Leases running 10 years are typical. CFM Marts of New York City, Inc. Convenience Store The three-unit chain operates locations in NY. The convenience stores occupy spaces of 3,000 sq.ft. in freestanding facilities. Preferred anchors include Kmart. Plans call for one opening in the coming 18 months. Expansion will take place in the existing market. Leases running 20 years are typical and the company prefers a vanilla shell. Dryclean-USA Drycleaners The 835-unit chain operates locations nationwide. The drycleaners occupy spaces of 2,000 sq.ft. in freestanding facilities. Preferred anchors include supermarkets. Plans call for 15 openings in the coming 18 months. Expansion will take place in FL, MO and TN. Preferred demographics include a population of 30,000 within three miles earning $45,000 as the average income. Leases running five years are typical and the company prefers tenant improvements. Central States Theatre Corp. Entertainment The 75-unit chain operates locations in IA and NE. The movie theaters occupy spaces of 12,000 sq.ft. to 25,000 sq.ft. in freestanding facilities and regional malls. Plans call for three openings in the coming 18 months. Expansion will take place in the existing markets. AmeriCash, Inc. Financial The ATM placement company operates 700+-units nationwide. The ATM machines, which also provide shoppers with a variety of goods and services beyond cash dispensing, including gift certificates, prepaid phone cards, coupons and advertising opportunities, require six sq.ft. of space in outlet centers and regional malls near food courts or the front entrance. Plans call for 2,000 placements in the coming 18 months. Expansion will take place nationwide. Preferred demographics include 60,000 visitors per month earning at least $35,000 as the average income. Leases running five years are typical and the company cites national banks as competition. The Dollar Tree Stores, Inc. General Merchandise The 885-unit chain operates locations in 30 states. The general merchandise stores occupy spaces of 4,000 sq.ft. in regional malls, power and strip centers. Plans call for 205 openings in the coming 18 months. Expansion will take place in the Eastern half of the country. Preferred demographics include a population of 25,000 within five miles earning $25,000 as the average income. Leases running four years, with options, are typical. Cost Cutters Family Hair Care Hair Salon The 870-unit chain operates locations in 44 states. The hair salons occupy spaces of 900 sq.ft. to 1,500 sq.ft. in strip centers. Plans call for 100 openings in the coming 12 months. Expansion will take place nationwide. Preferred demographics include a population of at least 30,000 within three miles earning between $25,000 to $70,000 as the median income. Leases running five years are typical. Woodcraft Hobby The 31-unit chain operates locations in 20 states. The stores, selling woodworking tools and materials, occupy spaces of 6,000 sq.ft. in strip centers. Plans call for at least 11 openings in the coming 18 months. Expansion will take place in AZ, FL, GA, ME, NC, OH, VA and WI. Leases running five years, with two five-year options, are typical. Dunn-Edwards Paints Home Improvement The 68-unit chain operates locations in AZ, CA, CO, NV, NM and TX. The home improvement stores, which sell paint and supplies, occupy spaces of 8,000 sq.ft. to 12,000 sq.ft. in freestanding facilities and end caps of strip centers. Growth opportunities are sought in AZ, CA and NV. Shaw Industries Home Improvement The 300-unit chain operates locations in 33 states. The stores, selling floor coverings, occupy spaces of 6,000 sq.ft. to 10,000 sq.ft. in freestanding facilities. Preferred co-tenants include electronics and home furnishing retailers. Plans call for 20 openings in the coming 18 months. Expansion will take place in FL, the Midwestern and Northeastern regions. Preferred demographics include a population of 150,000 within seven miles earning $45,000 as the average income and a high density of single family-onwer occupied housing. Leases running five years are typical and the company cites CarpetMax and Home Depot as competition. Christian Bernard Stores Corp. Jewelry The 16-unit chain operates locations in CA, CT, FL, IL, MD, NJ, NY, NC and VA. The jewelry stores occupy spaces of 800 sq.ft. to 1,000 sq.ft. in regional malls. Preferred anchors include Nordstrom. Plans call for as many as four openings in the coming 18 months. Expansion will take place in TX. Preferred demographics include a population of 200,000 within five miles earning $80,000 as the average income. Leases running 10 years are typical and the company cites Bailey Banks and Biddle and Tiffany as competition. William Pitt Jewelers, Inc. Jewelry The five-unit chain operates locations in CA. The stores, selling bridal jewelry, occupy spaces of 5,000 sq.ft. to 10,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. Leases running 10 years are typical. Kinko’s, Inc. Services The 900+-unit chain operates locations worldwide. The stores, offering business services, occupy spaces of 4,000 sq.ft. to 12,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought worldwide. Bob LeVine Shoes Shoes The six-unit chain operates locations in NJ and NY. The men’s shoe stores occupy spaces of 3,000 sq.ft. in freestanding facilities. Preferred anchors include TJ Maxx. Plans call for one opening in the coming 18 months. Expansion will take place in NJ. Preferred demographics include a population of 100,000 within three miles earning $40,000 as the average income. Leases running five years are typical and the company cites DSW and Marty’s as competition. M.B.A. Marketing Shoes The 12-unit chain operates locations in KY, OH and PA. The stores, selling athletic shoes and apparel, occupy spaces of 18,000 sq.ft. in power centers and regional malls. Preferred co-tenants include Kohl’s, Old Navy, Wal*Mart and movie theaters. Plans call for the opening of four units in the coming 18 months. Expansion will take place in WV and IN. Preferred demographics include a population of 150,000 within five miles earning $40,000 as the average income. Leases running 10 to 15 years are typical and the company, which cites Foot Locker, Finish Line and Foot Action as competition, prefers turn-key deals. Botanical Scents of Nature Enterprises Corp. Specialty The 80-unit chain operates locations worldwide. The stores, selling natural air fresheners, potpourri, aromatheraphy products, incense and accessories, occupy kiosk spaces in regional malls. Plans call for as many as 50 openings during 1998. Expansion will take place worldwide. J.R.B. Enterprises, Inc. Specialty The 26-unit chain operates locations in FL. The stores, selling silk plants and flowers, occupy spaces of 1,500 sq.ft. to 1,800 sq.ft. in power centers and regional malls. Preferred anchors include Home Depot and furniture 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 50,000 within five miles earning at least $35,000 as the average income. Leases running three to five years are typical. Homeland Stores, Inc. Supermarket The 70-unit chain operates locations in KS, OK and TX. The supermarkets occupy spaces of at least 30,000 sq.ft. in freestanding facilities and strip centers. Preferred co-tenants include drug stores and video stores. Growth opportunities are sought in OK. Leases running 20 years are typical and the company cites Albertson’s and Wal*Mart as competition. Quillin’s, Inc. Supermarket The nine-unit chain operates locations in IA, MN and WI. The supermarkets occupy spaces of 30,000 sq.ft. to 40,000 sq.ft. in freestanding facilities and strip centers. Plans call for one opening in the coming 18 months. Expansion will take place within the existing markets. Leases running 10 to 20 years are typical. Spain’s, Inc. Variety The 77-unit chain operates locations in DE, MD, NJ and PA. The variety stores occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for 21 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running five years are typical. Exclusives Winick Realty Group (212-792-2600) is the exclusive broker for Duane Reade in the New York metropolitan area. Winick recently leased 11 drug store sites having a total GLA of 386,000 sq.ft. on behalf of Duane Reade in Manhattan, Brooklyn, Queens and the Bronx. Additional sites are being sought in the market. Goldman Retail Associates (310-235-0444) and Excess Space Disposition exclusively represented Payless ShoeSource, Inc. in leasing a 3,346 sq.ft. former store space to Lerner’s Outlet in Los Angeles, CA. Goldman Retail Associates also exclusively represents Rite Aid in its disposition of its Los Angeles area surplus sites. Sigma National, Inc. (804-320-6100) has been named the exclusive leasing agent for Bermuda Crossroads Plaza in Chester, VA. The 145,000 sq.ft. project, which is currently under development, has leases pending with a supermarket, an office supply superstore and a multi-screen theater. Spaces from 2,000 sq.ft. to 10,000 sq.ft. remain available for lease. The Retail Group (202-775-7621) is serving as leasing agent for several large America-style factory outlet centers being developed in Europe by London-based Outlet Centers International. This Fall, Outlet Centers International will break ground on the Arlandastad Outlet Village located 45 miles north of Stockholm, Sweden. The first phase will comprise 80,000 sq.ft. and by anchored by Nike, Vanity Fair, Benetton and Callaway/Titleist. The completed project is expected to occupy 200,000 sq.ft. Zweibrucken Outlet Village in Zweibrucken, Germany will open its 180,000 sq.ft. phase I during Summer 1999. Initial anchors will include Nike, Polo/Ralph Lauren and Vanity Fair. Also included will be an interactive center with a stadium-seated cinema and a virtual reality center. The company is also representing Outlet Centers International in its site acquisition for an outlet center in northern Italy near Milan. These three projects are the first true factory outlet centers in their respective countries. Metro Commercial Real Estate, Inc. (609-866-1900) has been named the exclusive leasing agent for Main Line Shopping Center in Cinnaminson, NJ. The 77,870 sq.ft. project is anchored by Rite Aid, Branch Brook Company and Hudson Savings Bank. Financial News Grease Monkey Holding Corp. (303-534-1660) recently had its stock delisted from the Nasdaq Small Cap Market for failure to meet net tangible asset requirements. In the past year, Grease Monkey’s stock has dropped from $2 per share to $1.065 per share. The company has since hired Green Manning & Bunch to assist it in increasing shareholder value. One possibility is a sale of the company. Grease Monkey currently operates and franchises 210 fast-lube centers in the U.S. and Mexico. Stacey’s Buffet, Inc. (813-581-4492) is planning to seek Chapter 11 protection from its creditors after its latest audit showed that the company owns $5 million more than it is bringing in. The company, which at one time operated 42 restaurants, recently closed eight of its remaining 15 units. The company has informed its shareholders that the chances of attaining positive cash flow during the summer months, which are traditionally slow, was highly unlikely. A proposed merger with Star Buffets, Inc. collapsed in February after Star reviewed Stacey’s books. Family Dollar Stores, Inc. (704-847-6961) reported that its third quarter sales increased 17.5% to $585.8 million from $498.4 million during the third quarter last year. Net income for the quarter increased 35.8% to $31.3 million from $23.1 million last year. During the quarter, the company opened 79 stores and closed 10 and currently operates 2,981 stores in 38 states. Bed Bath & Beyond, Inc. (908-688-0888) reported that its first quarter net earnings increased 31.1% to $13 million from $9.9 million during the first quarter last year. Net sales for the quarter increased 26.2% to $269.6 million from $213.7 million last year and comparable store sales increased 3.3% for the quarter. During the quarter, the company opened eight stores and currently operates 151 stores in 30 states. Sun Television and Appliances, Inc. (614-492-5600) reported that its first quarter net sales and services revenues increased four percent to $109.5 million from $105 million during the first quarter last year. Comparable store sales fell 10% for the quarter. A first quarter net loss of $10.9 million was reported, compared to a net loss of $10.2 million last year. During the quarter, the company opened four stores and signed leases to open five more. Currently, the company operates 58 stores in IN, KY, NY, OH, PA, TN, VA and WV. Lease Signings Jeffery Realty (908-668-9600) leased 4,800 sq.ft. to Sleepy’s in Watchung, NJ; 6,000 sq.ft. to Hollywood Video at Lackawana Station Shopping Center in Montclair, NJ; 7,500 sq.ft. to National Pools in Greenbrook, NJ; 13,000 sq.ft. to Marburn Curtains in Union, NJ; 10,000 sq.ft. to David’s Bridal in Springfield, NJ and 7,000 sq.ft. to Kay Bee Toys at Grand Union Shopping Center in Paramus, NJ. Mid-America Real Estate Corp. (630-954-7300) leased 24,500 sq.ft. to Petco at The Landings Shopping Center in Lansing, IL; 6,071 sq.ft. to Panera Bread at Market Plaza in Glen Ellyn, IL; 2,500 sq.ft. to Radio Shack at Downers Park Plaza in Downers Grove, IL; 1,500 sq.ft. to H&R Block at Second Century Plaza in Orland Park, IL and 1,200 sq.ft. to Soccer, Etc. at Red Top Plaza in Libertyville, IL. Divaris Real Estate, Inc. (757-497-2113) leased 2,400 sq.ft. to Wolf Camera & Video at Coral Springs Trade Center in Miami, FL; 8,000 sq.ft. to Kaybee Toyworks at Franklin Square, Phase III in Gastonia, NC; 7,042 sq.ft. to Kaybee Toyworks at Garner Towne Square in Garner, NC; 5,007 sq.ft. to Smith & Hawken at Phillips Place in Charlotte, NC and 2,800 sq.ft. to Payless Shoes at a Target-anchored center in Charlotte, NC. Boyd, Page & Associates (713-877-8400) leased an 11,500 sq.ft. former Walgreens space to Dollar General in Houston, TX; 8,000 sq.ft. to Gateway 2000 at Willowbrook Court Shopping Center in Houston, TX and 3,000 sq.ft. to Whataburger at Home Depot Shopping Center in Houston, TX. The Lutz Companies (248-352-0700) leased 55,000 sq.ft. to Vic’s World-Class Market at a former Jumbo Sports space in Bloomfield Hills, MI. United Commercial Realty (214-526-6262) leased 5,640 sq.ft. to Mazatlan Restaurant & Bar in Dallas, TX; 50,000 sq.ft. to Hobby Lobby in Burleson, TX and 15,000 sq.ft. to Petco in Fort Smith, AR. Bennett Williams, Inc. (717-843-5555) leased space to Pier 1 Imports in Solon, OH and Decatur, IL. Space Place Alabama Florence- Florence Square is anchored by Kmart, Food
World, TJ Maxx and Shoe Carnival. The 244,696 sq.ft. project has spaces of
1,900 sq.ft., 2,520 sq.ft. and 4,000 sq.ft. available for lease. Demographics include a
three-mile population of 26,101 earning $41,456 as the average income. The site is located
near Regency Square Mall. For details, contact Doug Rice of Edens & Avant at (803-779-4420), Fax (765-0684). California Capitola- Brown Ranch Marketplace is anchored by Trader
Joe’s, Drug Emporium and Fresh Choice Restaurant. The 83,000 sq.ft.
project has spaces from 826 sq.ft. to 4,255 sq.ft. available for lease. The site is
located adjacent to Capitola Mall which is anchored by JC Penney, Sears, Ross,
Mervyns and Gottschalks. Delaware Wilmington- Prices Corner Shopping Center is anchored by
Sears, JC Penney and Staples. The 500,000 sq.ft. project has spaces of 4,375
sq.ft., 9,400 sq.ft. and 13,000 sq.ft. available for lease. Demographics include a
five-mile population of 204,946 earning $53,390 as the average household income. The site
is located near Best Buy, Kmart and Acme. Florida Crystal River- Crystal Center is anchored by Save A
Lot, Dollar General and Sherwin Williams. The project has spaces from 4,050
sq.ft. to 6,000 sq.ft. available for lease. In Largo- Keene Plaza,
which is being redeveloped, has spaces from 1,500 sq.ft. to 21,000 sq.ft., as well as
outparcels, available for lease. In Tampa- West Village Commons is
anchored by Kash N Karry and Eckerd Drugs. The project has spaces from 750
sq.ft. to 3,700 sq.ft. available for lease. Illinois Niles- Golf Milwaukee Plaza has a 40,400 sq.ft. space
available for lease. Demographics include a three-mile population of 125,000 earning
$65,000 as the average household income. Iowa Muscatine- Hilltop Plaza is anchored by Shopko
and Econo Foods. The 142,382 sq.ft. project has spaces of 1,400 sq.ft. and 8,400
sq.ft. available for lease. The site is located near Super Wal*Mart, Menard’s
and Hy-Vee. Ohio Amherst- Amherst Marketplace is anchored by Rini-Regos
Marketplace and CVS Pharmacy. The 80,000 sq.ft. project has a 2,000 sq.ft.
end-cap space and an outparcel available for lease. In Parma- Snowview
Plaza is anchored by Finast Friendly Markets, Blockbuster Video and Karen’s
Hallmark. The 88,000 sq.ft. project has spaces of 3,500 sq.ft., 6,000 sq.ft. and an
outparcel available for lease. In Sheffield- Sheffield Crossing is
anchored by Rini-Rego’s Marketplace, CVS Pharmacy and Broadway Video.
The project has spaces of 2,400 sq.ft. and 3,000 sq.ft. and an outparcel available for
lease. Tennessee Cookeville- Jackson Plaza is anchored by Belk, Sears,
Goody’s, Bi-Lo and Factory Card Outlet. The 270,000 sq.ft. project has
spaces from 2,400 sq.ft. to 3,900 sq.ft. available for lease. Murfreesboro- Broad Street Centre is anchored by Kmart,
Kay Bee Toy Works, Cato and Big Lots. The 200,000 sq.ft. project has a 3,000
sq.ft. space and an outparcel available for lease. A 10,000 sq.ft. expansion is planned
for 1999. Virginia Richmond- Chesterfield Crossing Shopping Center is
anchored by Target, Ukrops Supermarket and Kohl’s. The project has a
2,700 sq.ft. space available for lease adjacent to Kohl’s. Also in Richmond-
The Libbie Place Shopping Center is anchored by Target, Boston Market, Einstein
Bagels, Blockbuster Video and Kinkos. The 181,435 sq.ft. project has spaces
from 2,871 sq.ft. to 42,500 sq.ft. available for lease. In Williamsburg- Cedar
Valley Shopping Center has anchor positions and outparcels available for lease. The
site, which is under development, is expected to open during 1999.
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