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Issue Number 26
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The Dealmakers Issue Number 26 for the week of July 24, 1998 Shoe Store Tenants Expanding Nationwide Pic ‘N Pay Stores, Inc. trades as Pic ‘N Pay at
500 locations in AL, CA, FL, GA, KY, MD, NC, OH, SC, TN, TX and VA. The shoe stores occupy
spaces of 4,000 sq.ft. in power centers. Preferred anchors include Kmart, TJ Maxx
and Wal*Mart. Plans call for 30 openings in the coming 18 months. Expansion will
take place in FL, GA and NC. Preferred demographics include a population of 50,000 within
five miles earning $40,000 as the average income. Leases running five years are typical
and the company, which prefers a vanilla shell, cites Payless and Shoe Show
as competition. Shoe Show, Inc. trades as Shoe Show, Burlington Shoe, Shoe
Department and Altiers Shoes at 515 locations in 27 states from the East Coast
to TX. The shoe stores occupy spaces of 2,800 sq.ft. to 5,000 sq.ft. in freestanding
facilities, regional malls and strip centers. Preferred anchors include Kmart, TJ Maxx,
Wal*Mart and department stores. Plans call for 70 openings in the coming 18 months.
Expansion will take place in the existing markets. Preferred demographics include a
population of 10,000 within five miles earning $18,000 as the average income. Leases
running five to ten years are typical. SLJ Retail does business as Sam & Libby and Jones New
York Footwear at 120 locations nationwide. The women’s shoe stores occupy spaces
of 1,200 sq.ft. in downtown store fronts and regional malls. Plans call for 20 openings in
the coming 18 months. Expansion will take place nationwide. Leases running seven years are
typical. The Brown Group trades as Naturalizer Retail and Women’s
Footwear at 341 locations nationwide. The stores, selling family footwear, occupy
spaces of 1,100 sq.ft. to 3,000 sq.ft. in regional malls and outlet centers. Plans call
for 25 openings in the coming 18 months. Expansion will take place nationwide. Leases
running 10 years, with a five-year kick-out, are typical. The Brown Group trades as Famous Footwear, Factory Brand Shoe
and Supermarket of Shoes at 818 locations nationwide. The family shoe stores occupy
spaces of 5,500 sq.ft. to 6,000 sq.ft. in regional malls, outlet, power and strip centers.
Plans call for as many as 55 openings in the coming 18 months. Expansion will take place
nationwide. Buyers & Sellers DRA Realty Advisors’ affiliate Amerishop Mayfair LP
recently acquired Streets of Mayfair in Coconut Grove, FL from Lennar Mayfair Limited
Partnership for more than $65 million. The 228,000 sq.ft. project is anchored by Regal
Cinema, Borders Books and Music, News Cafe, The Limited and Planet Hollywood. CV Reit, Inc. recently acquired Marlton Crossing Shopping Centers
Phase I and II for $28.6 million. The projects, located adjacent to one another in
Marlton, NJ, have a combined GLA of 300,000 sq.ft. and are anchored by SuperFresh
Supermarket, CVS Pharmacy, Somnia Furniture, Burlington Coat Factory, TJ Maxx and Dress
Barn. The company also recently acquired North Penn Marketplace in Lansdale, PA for $4.6
million. The 58,000 sq.ft. project is anchored by Weis Market and Eckerd Drug. Montgomery CV Realty Trust is in the market to acquire neighborhood
shopping centers having GLAs of at least 100,000 sq.ft. anchored by supermarkets and/or
drug stores. Preferred properties must be competitively located in stable or growth
markets and located within a three-hour drive of Philadelphia, PA or within FL. The
company is interested in properties or portfolios that are in need of redevelopment,
repositioning or pro-active management. The company will consider larger centers or
concentrated portfolios in other metropolitan areas, especially in the Eastern Seaboard
states. The company is looking to acquire more than $250 million in properties during
1998. CB Richard Ellis has the listing to sell Shoppes of Kenwood in
Cincinnati, OH. The 47,411 sq.ft. project is anchored by Drug Emporium, Blockbuster Video,
Boston Market, Mail Boxes Etc. and Fifth Third Bank. The site is located one-half mile
from Kenwood Towne Centre. The asking price is $6.3 million. Robinson Sigma Commercial Real Estate, Inc. represented Aegis
Realty Operating Partnership in its acquisition of The Village at Waterford Shopping
Center in Midlothian, VA. The 80,000 sq.ft. project is anchored by Winn-Dixie, Movie
Gallery and Surfrider Grill. The acquisition price was $6.25 million. Inland Southeast Countryside Limited Partnership recently acquired
Countryside Shopping Center in Naples, FL. The 73,965 sq.ft. project is anchored by Winn
Dixie and Blockbuster Video. Fickling & Company/NAI brokered the sale of an 8,500 sq.ft.
strip center anchored by Talbot’s in Peachtree City, GA. Reco Limited represents investors in the market to acquire single
tenant properties. Premier Brokerage has the listing to sell a Sears store in KS. The
store has a new 15-year absolute NNN bond lease and the current NOI is $345,584. The
asking price is $4.6 million. Burnham Pacific Properties, Inc. recently acquired Lake Arrowhead
Village in Lake Arrowhead, CA for $31.5 million. The total GLA of the project is 230,461
sq.ft., of which Burnham Pacific purchased 193,809 sq.ft. The center is anchored by Stater
Brothers Supermarket and Rite Aid. NewMark Merrill Companies recently acquired Mission Marketplace in
Oceanside, CA. The 343,159 sq.ft. project is anchored by Cinema Star Theatres, Rite Aid,
Ralph’s Grocery Store, Hancock Fabrics, Hometown Buffet, Kmart, McDonald’s, Pic
‘N Save, Sizes Unlimited and Big O Tires. Real Estate Services has the listing to sell Fair Oaks Center in
Waterbury, CT. The 46,100 sq.ft. project has a mix of national and local tenants. Annual
rental income is $391,672. The asking price is $4.2 million and financing is available. Stor-All is in the market to acquire dark big box stores or strip
centers in major metropolitan markets nationwide. Preferred projects should have GLAs of
at least 40,000 sq.ft. The company is also in the market to acquire three to five acres of
vacant land in retail locations in major metropolitan markets nationwide. The company
plans to use the sites and/or land for the development of self storage facilities. United Commercial Realty has the listing to sell Shoal Creek Center
in Austin, TX. The 35,000 sq.ft. project is 38% leased. The asking price is $2 million. Everest Partners recently acquired Porter Square Galleria in
Cambridge, MA. The 54,000 sq.ft., three-level urban mall is anchored by Bed Bath &
Beyond, Pier 1 Imports, Blockbuster and Pizzeria Uno. Phillips Martin Real Estate recently acquired The Courtyard
Shopping Center in Villa Park, IL. The 57,117 sq.ft. project is anchored by Outback
Steakhouse, Tuesday Morning, Honey Baked Ham, Jenny Craig and Ameritech. Goldman Retail Associates represented Rite Aid in the sale of a
31,789 sq.ft. building in Palmdale, CA to McClean Holding Co. The site is located adjacent
to an Albertson’s Supermarket. SRS, Inc. brokered the sale of EastRidge Center in Middletown, OH.
The 14,500 sq.ft. project was sold by Valley View Leasing, Inc. to Michael Ross, Trustee.
The company has the listing to sell Centerville Shoppes in Centerville, OH. The 24,400
sq.ft. project is 100% leased. Turk Investments Limited LLP is in the market to acquire CVS Drug
stores in the Northern region. All cash deals are possible. Coldwell Banker McKinney has the listing to sell Fremont Mall in
South Lake Tahoe, CA. The project is the only indoor mall in the area and is located
across from the lake. The asking price is $1.595 million. Aminoff & Co. is in the market to acquire single-tenant net
leased properties in the Northern region having leases of at least 10 years, with leases
15 to 25 years preferred. The company is interested in yield and is willing to accept
tenants with credit below investment grade. Absolute net leases are preferred, but they
will consider leases with landlord responsible for roof and structure. The Lutz Companies brokered the sale of a 60,000 sq.ft. former
Jumbo Sports building in Canton, MI to Gardner White Furniture Company. Bennett Williams, Inc. brokered the sale of a five acre tract of
land in Selinsgrove, PA to Pep Boys and a space to Pier 1 Imports in Mansfield, OH. BGK Asset Management Corp. has the listing to sell Juan Tabo
Shopping Center in Albuquerque, NM. The project, which is 100% occupied, is anchored by
Walgreens, Radio Shack, Quiznos and Baskin Robbins. The asking price is $6.353 million and
financing is available. Cushman & Wakefield has the listing to sell Depot Station in
Vacaville, CA. The project has a GLA of 14,438 sq.ft. The asking price is $2 million and
assumable financing is available. Zyndorf/Serchuk, Inc. has the listing to sell an Elder-Beerman
Department Store at a 752,000 sq.ft. regional mall in Toledo, OH. Other anchors include
Lion Store and Montgomery Ward. The asking price is $4.9 million. Prestige Realty, Inc. has the listing to sell the former Green Bay
Structural Steel site in Green Bay, WI. The 17.28 acre site is ideal for a power center
and is located two blocks from Lambeau Field. The asking price is $6 million. Divaris Real Estate, Inc. represented McClure Company in its
acquisition of Bellair Plaza in Daytona Beach, FL. The 372,196 sq.ft. project is anchored
by Publix, Winn-Dixie, Walgreen’s, Belk Lindsey, G.C. Murphy and Woolworth. The
seller was CG Gulf Property Association, L.P. and the price was $12.5 million. Equity Properties, Inc. recently sold six acres of land on Aramingo
Avenue in Philadelphia, PA for the development of a 65,000 sq.ft. freestanding ShopRite
supermarket. An additional 2.5 acres of land adjacent to the site is available for sale. The Keyes Company has the listing to sell a new Wal*Mart
Supercenter located in the Eastern region. The tenant has a NNN long term lease. The
company also has the listing to sell an Eckerd Drug Store, which is under construction.
The tenant has a NNN lease which has increases every five years. Lease Signings Duke Realty Investments, Inc. (317-846-4700) leased 4,000 sq.ft. to Atlanta Bread Co. at Governor’s Pointe Retail North in Cincinnati, OH. Sigma National, Inc. (804-320-6100) leased 40,000 sq.ft. to Bed Bath & Beyond at Columbiana Station Shopping Center in Columbia, SC; 2,700 sq.ft. to Payless ShoeSource at Chesterfield Crossing Shopping Center in Richmond, VA; 2,234 sq.ft. to Relax-A-Back, 807 sq.ft. to Great Clips and 1,739 sq.ft. to James River Eye Associates at Libbie Place Shopping Center in Richmond, VA; space to McDonald’s at Brookhollow Shopping Center in Richmond, VA; 1,700 sq.ft. to GNC at Rocky Mount Plaza in Rocky Mount, VA; 1,500 sq.ft. to GNC at River Bend Shopping Center in Covington, VA; 1,190 sq.ft. to GNC at Ironbridge Plaza in Chesterfield, VA; 1,050 sq.ft. to GNC at Lakeside Plaza in Salem, VA; 1,420 sq.ft. to GNC at Short Pump Village in Richmond, VA; 1,200 sq.ft. to GNC at Pearisburg Square in Pearisburg, VA; 1,800 sq.ft. to GNC at Westgate Shopping Center in Bedford, VA and 1,600 sq.ft. to GNC at Blackstone Square in Blackstone, VA. MTH Management Corporation (540-253-5555) leased a former Food Lion space to Stage Stores at Orange Village Shopping Center in Orange, VA. Island Associates Real Estate, Inc. (516-587-5050) leased 21,000 sq.ft. to Compare Foods at Brentwood Market Place in Brentwood, NY. Colliers Lanard & Axilbund (215-925-4600) leased 3,000 sq.ft. to Lechters Housewares at Marlton Crossing Shopping Center in Marlton, NJ; 3,600 sq.ft. to Lechters Housewares at Ralph’s Corner Shopping Center in Philadelphia, PA and space to Blockbuster Video at Warwick Square Shopping Center in Warwick, PA and space to Blockbuster Video in Horsham, PA. Mid-America Asset Management Co. (630-954-7300) leased 5,125 sq.ft. to Modern Woman at Woodgrove Festival Shopping Center in Woodridge, IL. Sunrise Mall (212-980-1711) leased 17,250 sq.ft. to Old Navy Clothing Co. at Sunrise Mall in Massapequa, NY. New Construction Sholom & Zuckerbrot Realty LLC
Sholom & Zuckerbrot Realty LLC recently broke ground on Rego
Wood Plaza in the Rego Park section of Queens, NY. The project will be anchored by a
9,920 sq.ft. CVS Pharmacy. The site, which is expected to open during early 1999,
previously housed a Getty gas station. The company recently completed the
development of Atlantic Avenue Center in Ozone Park, NY for Octagon Properties
LLC. The 28,000 sq.ft. project is anchored by CVS, King Size Laundry/Cleaner
and Boston Market. The site was developed on the former Pisnoy Lumber
facility. Rosenshein Associates recently broke ground on Peartree Square
Shopping Plaza in the Co-Op City section of the Bronx, NY, located at the intersection
of Co-Op City Boulevard and Peartree Avenue. The 140,000 sq.ft. project will be anchored
by a 55,000 sq.ft. Edwards Super Food Store, a 50,000 sq.ft. NWL Discount
store and a 10,000 sq.ft. Rite Aid drug store. An additional 25,000 sq.ft. of
retail space will also be constructed. Construction is expected to be completed during
June 1999. Rosenshein Associates was selected to purchase and develop the 10-acre site,
originally owned by the city of New York, after responding to a Request for Proposal. The
City sold the site to Rosenshein Associates for $3.1 million and the company secured a
construction loan from GMAC Commercial Mortgage and permanent financing from Union
Labor Life Insurance Company. American Stores Properties, Inc., in a joint venture with the city
of Long Beach Redevelopment Agency and the Los Angeles County Metropolitan
Transportation Authority, recently broke ground on Wrigley Market Place in Long
Beach, CA. Phase I of the 618,552 sq.ft. project will be anchored by a 65,663 sq.ft. Lucky’s
Supermarket, a 16,854 sq.ft. Sav-On Drug Store and a five-level parking
structure that will accommodate 700 vehicles. Phase I is expected to be completed by the
end of this year. Phase II of the project, which is expected to be developed next year,
will consist of four freestanding buildings that will accommodate fast food and sit-down
restaurants and other retail outlets as well as two other structures. The development cost
of the 14.2 acre site is expected to be $25 million. Trexlertown Plaza Associates, a joint venture of The Kalikow
Group and Polimeni Organization, have announced plans to add 200,000 sq.ft. to
the 212,000 sq.ft. Trexlertown Plaza in Trexlertown, PA. The 40 acre site can
accommodate a variety of uses including retail, hotel, apartment and senior care
facilities. The project is currently anchored by Redner’s Warehouse, Ames, Sears
Hardware, Rite-Aid and Subway. Trexlertown Plaza Associates also recently
refinanced the shopping center through Holliday Fenoglio L.P. in the amount of
$13.1 million. Who’s Opening & Where Jersey Mike’s Franchise Systems, Inc.
Jersey Mike’s Franchise Systems, Inc. (732-528-7676) recently
opened, through franchisees, Jersey Mike’s restaurants at Main Street
Shopping Center in Tuscaloosa, AL; at Edwards Food Shopping Plaza in Jackson,
NJ; at the Market at Big Bear Farms in Powell, OH and at Dorsey Plaza in
Louisville, KY. The company announces that it has signed an agreement with JM America
to open 15 units in NC, including stores in Charlotte, Greensboro and Winston-Salem. The
company announces that it has signed an agreement with Carolina Investment and
Management Group to open 50 units in SC. The company also recently signed an agreement
with Foodtown and has opened a unit in a Foodtown supermarket in Toms River, NJ. J. Baker, Inc. (617-828-9300), which operates 459 Casual Male
Big & Tall stores, which feature low-cost apparel, plans to open a second chain of
big and tall clothing stores called Grande Central Big and Tall Clothing Co. next
year. The new concept will target big and tall men who are willing to spend more money on
clothing. Current plans call for the company to be operating 40 stores by August 1999. Gymboree (415-579-0600) and The Gap (415-952-4400) both plan
to open stores at Anchorage 5th Avenue Mall in Anchorage, AK next month. The Gap
will open a 7,270 sq.ft. store that will combine its The Gap, Gap Kids and Baby
Gap concepts under one roof. Sound Advice, Inc. (954-922-4434) plans to open a 17,000 sq.ft.
store in North Palm Beach, FL during November. Scott’s Food Stores (219-483-9537) plans to open a store at a
former Sturges Co. location in Fort Wayne, IN this month. Raymour & Flanigan Furniture (315-453-2520) plans to open a
50,000 sq.ft. furniture store at Raymour & Flanigan Plaza in Newington, CT next
month. The company currently operates 35 stores in five states. The Buckle (216-934-1415) plans to open a 5,042 sq.ft. store at Logan
Valley Mall in Altoona, PA later this year. It will the company’s first unit in
PA. Overall, the company operates 204 stores selling casual apparel for young men and
women. Taubman Centers, Inc. announces that a two-level 165,000 sq.ft. to
200,000 sq.ft. Nordstrom (206-628-2111) store will open during Fall 2001 and a
two-level 120,000 sq.ft. Lord & Taylor (314-342-6300) store will open during
Fall 2000 at Memorial City Mall in Houston, TX. The new stores are part of a major
renovation of the mall which will also include the development of a 150,000 sq.ft.,
two-level Neiman Marcus store, opening in Fall 2001, and a two-level 300,000 sq.ft.
Foley’s, opening during Fall 1999. Braun’s Fashions (612-551-5000) plans to open 3,200 sq.ft.
stores at Nittany Mall in State College, PA and at Wyoming Valley Mall in
Wilkes-Barre, PA later this year. Hooters (770-951-2040) recently opened a 4,500 sq.ft. restaurant on
two floors at the historical Fogarty House on Duval Street in Key West, FL. Omnipoint Communications (973-290-2533) recently opened a
communications store in Union, NJ. It is the company’s first unit in NJ and 10th
overall. The company’s other stores are located in NY and CT. Independence Brewing Company (215-537-2337) plans to open a 13,000
sq.ft. brewpub on the Avenue of the Arts in downtown Philadelphia, PA during Fall. The Wet Seal (714-583-9029) plans to open a 3,300 sq.ft. store at Logan
Valley Mall in Altoona, PA during Fall. J.C. Penney (972-431-1000) recently announced that it will become
the fourth anchor department store at a mall in Frisco, TX. General Growth Properties
plans to develop the mall and in addition to J.C. Penney, has commitments from Macy’s,
Nordstrom and Sears to be anchors at the project which is expected to open
during Fall 2000. Financial News Casey’s General Stores, Inc. (515-965-6100) reported that its
1998 fiscal year earnings increased 23.9% to $33.5 million from $27 million during FY97.
Sales increased seven percent to $1.2 billion from $1.1 billion last year. The company
currently operates 1,109 convenience stores in the Midwestern region and is planning to
open 80 stores this year. Quality Dining, Inc. (219-271-4600) reported that its second
quarter total revenues fell 21% to $55.8 million from $71.1 million during the second
quarter last year. The decrease resulted from the company’s divestiture of its bagel
business. Second quarter net income was $154,000, compared to a net loss of $201.7 million
last year. Again, last year’s loss was related to the divestiture of the
company’s bagel business. The company currently owns and operates 40 Grady’s
American Grill restaurants; four Papa Vino Italian Kitchen restaurants and four
Spageddie’s Italian Kitchen restaurants. It also operates as a franchisee 68 Burger
King units and 28 Chili’s Grill & Bar restaurants. Walgreen Co. (847-940-2500) reported that its third quarter net
earnings increased 17.6% to $127 million from $108 million during its third quarter last
year. Third quarter sales increased 14% to $3.9 billion from $3.4 billion last year.
Comparable store sales increased 8.9% for the quarter. During the quarter, the company
opened 59 stores and will exceed its goal of 280 new stores during its current fiscal
year. The company plans to open 350 stores during FY99 and its long term goals include
operation of 3,000 stores by 2000 and 6,000 stores by 2010. Currently, the company
operates 2,470 drug stores in 35 states and Puerto Rico. CompUSA, Inc. (972-982-4000) reported that its fiscal year 1998 net
sales increased 15% to $5.29 billion from $4.61 billion during FY97. Comparable store
sales were up 1.7% for the year. Despite a good showing for the fiscal year, the company
was disappointed with its fourth quarter results which showed only a three percent gain in
net sales and an 8.7% drop in comparable store sales. The company currently operates 162
stores in 72 major metropolitan markets nationwide. Exclusives The Rappaport Companies (703-641-9103) has been retained to provide
property management and leasing for Leisureworld Plaza Shopping Center in Silver
Spring, MD. The 143,500 sq.ft. project is anchored by Giant Food. The site also
contains a three-story professional building. Equity Properties (610-645-7700) has been named the exclusive
leasing and management agent for Roxborough Square in Philadelphia, PA. The site is
anchored by Manhattan Bagel, Papa John’s, Wings To Go and China House
Restaurant. Space remains available for lease. Sigma National, Inc. (804-320-6100) has been named the exclusive
leasing agent for Cross Properties in Richmond, VA. The site contains 34 acres of
land available for retail development and is located across from Virginia Center
Commons Mall. CAC Caribe, Inc. (973-257-1600) has been retained by Papa
John’s to assist in its expansion in Puerto Rico. Papa John’s is seeking 11
sites ranging from 900 sq.ft. to 1,800 sq.ft. The company also has over 200 prime
properties under management for immediate use as wireless facilities. Schottenstein Bernstein Capital Group LLC (212-521-4800) has been
retained by Lillie Rubin Fashions, Inc. to conduct inventory clearance sales at the
company’s 26 designer boutiques for women in connection with the sale of stores
pending before the bankruptcy court. The stores are located in AL, AZ, CA, CO, FL, GA, LA,
MD, NV, NJ, NY, OH, PA, TN, TX and VA. Closings Radio Shack (817-415-3224) plans to close its store at Columbus
Square Mall in Columbus, GA. The store had become unprofitable, partially because the
mall has been losing tenants. Five years ago the 455,000 sq.ft. project was 70% leased.
After Radio Shack leaves the mall will only have eight tenants remaining. JC Penney (972-431-1000) plans to close its department store at Omni
International Mall at the end of December. The company is closing the store, which was
opened in 1977, because it was unable to renegotiate its lease with the mall’s
owners. Real Estate Professionals Making News Retail Properties Group, Inc. (619-453-9990) announces the
appointment of Mike Puccio as first vice president. His focus will be on retail brokerage
and tenant representation for regional and national retail chains. The Taubman Company (248-258-6800) announces that Maureen Fill, M.
Susan Kay and Patrick McPhail have been promoted to vice presidents, leasing. Fill will be
responsible for supervision and development of leasing agents, merchandising and
occupancy. Kay will be responsible for shopping center merchandising and occupancy and
McPhail will be responsible for the professional development of leasing agents. Draper and Kramer (312-346-8600) announces the appointment of John
Fegan as vice president of retail leasing for the company’s retail property services
division. In his new position, Fegan will be responsible for leasing at all Draper and
Kramer’s retail centers, along with the retail portions of mixed-use properties. Stirling Properties (504-898-2022) announces that Lewis W.
Stirling, III, executive vice president and partner, has been appointed director of the
New Orleans Metropolitan Board of Realtors. Pier 1 Imports (817-878-8000) announces that Clark Johnson has
stepped down as CEO and that the company’s president, Marvin Girouard, has succeeded
him. Erwin L. Greenberg Commercial Corporation (410-837-2500) announces
that J. Paul Mitchell has been promoted to senior vice president/director of property
management. His responsibilities include overseeing all aspects of management of company
properties as well as third party management, and include the coordination of all
redevelopment, leasing and expansion of the company’s shopping center portfolio as
well as all client-owned properties. The company also announces the promotion of Mark
Bomse as vice president. His responsibilities include the procurement of investment
opportunities nationwide, financial analysis, in-house underwriting and due diligence work
on acquisition projects. Additional responsibilities include procurement of new property
management opportunities throughout the Mid-Atlantic and Southeast regions. Rosen Associates Management Corp. (516-333-2000) announces that
Peter Gruber has been promoted to vice president of acquisitions. Mergers & Acquisitions Wolf Camera (404-633-9000) recently reached an agreement with Eastman
Kodak Co. to purchase the 450-unit Fox Photo, CPI Photo and Proex Photo
chains. The merger will give Wolf Camera 791 stores in 35 states and allows Wolf to enter
more than 50 new markets as a result of this acquisition. The deal is expected to close
during September. SuperValu, Inc. (612-828-4441) recently entered into an agreement
to purchase the assets of six Shop ‘n Save stores in the Pittsburgh, PA area
owned by Allegheny Markets Company. The stores will retain the Shop ‘n Save
name. Proffitt’s, Inc. (901-397-2113) plans to acquire the 95-unit Saks
Fifth Avenue chain for $2.1 billion in stock. The deal gives Proffitt’s 330
stores in 38 states with estimated revenues of more than $6 billion. The new parent
company will change its name from Proffitt’s to Saks, Inc. and will be
headquartered in Birmingham, AL. Saks’ stores will retain their name. Trammell Crow Co. (972-563-4000) recently agreed to acquire the
management and leasing assets of Faison & Associates for $39.1 million. The
deal will boost Trammell Crow’s presence in the Mid-Atlantic and Southeast regions as
well as its presence in retail real estate and give it an entry into the regional mall
business. Excluded in the transaction are Faison subsidiary Faison-Stone, certain
Faison Texas-based operations, existing real estate assets owned and developed by Faison,
certain current development activity and various assets. In addition, Faison Enterprises
has agreed to fund a $300 million ground-up retail development program with Trammell Crow
through 2000. The program will focus on major growth markets in the Mid-Atlantic, the
Southeast and TX. Sears (847-286-6254) recently announced that it has retained Salomon
Smith Barney to "explore its options" for its 126-unit HomeLife
furniture store chain. Sears is contemplating either selling the chain; selling a stake to
a financial partner who would fund the chain’s expansion or partnering with a
furniture manufacturer who is interested in expanding its distribution channels. The
HomeLife stores have not been as profittable as the company would have liked, but
nonetheless, are ranked third behind Heilig-Meyers and Levitz, which is in Chapter 11. Longs Drugs Stores Corporation (510-210-6763) recently finalized a
definitive agreement to purchase Western Drug Distributors, Inc., a chain of 20
drug stores trading as Drug Emporium in OR and WA. The company plans to change the
stores to its format. The deal gives Longs 373 stores in CA, CO, HI, NV, OR and WA. Gart Sports Co. (303-861-1122) recently made a bid to buy a 70%
stake of The Sports Authority at $20 per share. Sports Authority is also
entertaining an offer from Venator Group, Inc., formerly Woolworth, at
$16.70 per share. If Sports Authority accepts Gart’s offer, Gart will pay $445.2
million in cash and assume $179 million of debt. Also, if Gart’s offer is accepted it
has been announced that the new company would operate under the Sports Authority name, but
that it has not been determined what name the stores would operate under. The Sports
Authority is the nation’s largest sporting goods chain, with Gart Sports ranked
second. Lead Sheet Accessories The 33-unit chain operates locations in CA, CO, GA, IL, IN, MA, MI,
MO, NJ, NY, PA, VA and Washington, D.C. The stores, selling accessories, costume
jewelry and some women’s apparel, occupy spaces of 2,500 sq.ft. to 3,500 sq.ft.
in downtown store fronts, freestanding facilities and regional malls. Growth opportunities
are sought in CA, CO, CT, DE, IN, MA, MD, MI, MO, NJ and NY. Leases running 10
years are typical. The Cato Corp. Apparel The 705-unit chain operates locations in AL, AR, DE, FL, GA, IN, KS,
KY, LA, MS, NC, OH, OK, SC, TN, TX, VA and WV. The women’s apparel stores occupy
spaces of 3,500 sq.ft. to 5,000 sq.ft. in strip centers. Preferred anchors include Kmart,
Wal*Mart and supermarkets. Plans call for 75 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 at least $20,000 as the average income.
Leases running five years are typical. Swim ‘N Sport Shops, Inc. Apparel The 15-unit chain operates locations in AZ, FL and TX. The
stores, selling women’s swimwear and sportswear, occupy spaces of 1,500 sq.ft. to
2,500 sq.ft. in regional malls, outlet and specialty centers. Plans call for as many
as 15 openings in the coming 18 months. Expansion will take place nationwide.
Leases running 10 years are typical and the company cites department stores as
competition. A To Z Tire & Battery, Inc. Automotive The 36-unit chain operates locations in CO, MT, NE, NM, ND, OK, SD,
TX and WY. The automotive supply stores occupy spaces of 10,000 sq.ft. to 12,000
sq.ft. in freestanding facilities, regional malls and strip centers. Growth
opportunities are sought in the existing markets. The company prefers to purchase
its locations. Banner Bedding, Inc. Bed/Bath/Linens The 14-unit chain operates locations in CA. The stores, selling
bed and bath items and home accessories, occupy spaces of 45,000 sq.ft. in strip
centers. Growth opportunities are sought in the existing market. Gags & Games, Inc. Cards & Gifts The 19-unit chain operates locations in MI. The stores, selling
greeting cards, trendy gifts and novelty items, occupy spaces of 4,500 sq.ft. to 6,500
sq.ft. in freestanding facilities, regional malls and strip centers. Preferred anchors
include drug stores and supermarkets. Plans call for six openings in the coming 18 months.
Expansion will take place in IN and OH. Preferred demographics include a population
of 200,000 within three to five miles earning $40,000 as the average household income.
Leases running five years are typical and the company, which prefers a vanilla shell,
cites Party City and ½ Off Cards as competition. Cochran Brothers Co., Inc. Convenience Store The 15-unit chain operates locations in GA. The convenience
stores occupy spaces of 2,275 sq.ft. in freestanding facilities. Growth
opportunities are sought in the existing markets. Country Food Stores Convenience Store The six-unit chain operates locations in NC. The convenience
stores, which also sell gasoline, occupy spaces of 2,400 sq.ft. in freestanding
facilities. Plans call for two openings in the coming 18 months. Expansion will take place
in the existing market. Elder-Beerman Corp. Department Store The 60-unit chain operates locations in IL, IN, KY, MI, OH, PA, WV
and WI. The department stores occupy spaces of 75,000 sq.ft. to 150,000 sq.ft.
in regional malls, power and strip centers. Plans call for as many as five openings in the
coming 18 months. Expansion will take place within the existing markets. Preferred
demographics include a population of 30,000 within five miles earning $45,000 as the
average income. Leases running 20 years are typical. CNG Financial Corp. Financial The 300+-unit chain operates locations in CA, CI, FL, ID, IL, IN,
MS, MO, NV, NM, NC, OH, OR, SC, TN, UT, WI and WY. The stores, offering financial
services, occupy spaces of 800 sq.ft. to 1,600 sq.ft. in power and strip centers.
Preferred anchors include Blockbuster, Kmart and Wal*Mart. Plans call for at
least 250 openings in the coming 18 months. Expansion will take place within the existing
markets. Preferred demographics include a population of 20,000 within three miles
earning $50,000 as the average income. Leases running three years are typical and the
company prefers a vanilla shell. Cost Plus, Inc. General Merchandise The 74-unit chain operates locations in AZ, CA, CO, ID, IL, MI, MO,
NV, NM, OR, TX, WA and WI. The stores, selling housewares, gifts, casual furnishings,
home decor items and gourmet foods and beverages, occupy spaces of 18,300 sq.ft. in
power and strip centers. Preferred co-tenants include Bed Bath & Beyond, Barnes
& Noble, Borders and Crate & Barrel. Plans call for 30 openings in the
coming 18 months. Expansion will take place in AZ, CA, GA, IL, MD, MO, OH, OH and TX.
Preferred demographics include a population of 200,000 within seven miles earning $50,000
as the average income. Leases running 10 years are typical and the company, which prefers
build-to-suit deals, cites Pier 1 and Trader Joe’s as competition. Cartoon Cuts Hair Salon The 17-unit chain operates locations in FL, GA, MD, NJ, PA and VA.
The children’s hair salons occupy spaces of 1,000 sq.ft. in regional malls.
Preferred anchors include department stores and children’s stores. Plans call for as
many as three openings in the coming 18 months. Expansion will take place in FL and PA.
Preferred demographics include a population of 100,000 within three miles earning $40,000
as the average income. Leases running five to ten years are typical. Mattress King, Inc. Home Furnishings The 30-unit chain operates locations in NC and VA. The stores,
selling bedding, occupy spaces of 2,500 sq.ft. to 4,000 sq.ft. in freestanding
facilities and strip centers. Plans call for 15 openings in the coming 18 months.
Expansion will take place in the existing markets. Leases running five years, with
two five-year options, are typical. Select Comfort Corporation Home Furnishings The 140-unit chain operates locations nationwide. The stores,
selling air sleep systems, occupy spaces of 800 sq.ft. to 1,000 sq.ft. in regional
malls. Plans call for 80 openings in the coming 18 months. Expansion will take place nationwide.
Preferred demographics include a population of 200,000 within 10 miles earning $50,000 as
the average income. Leases running 10 years are typical. CML Group, Inc. Home Improvement The 25-unit chain operates locations in CA, CO, CT, IL, IN, NY, OH,
OR, TX, VA and WA. The stores, selling premium gardening tools, furniture,
accessories, nursery products and gifts, occupy spaces of 4,000 sq.ft. to 6,000 sq.ft.
in freestanding facilities and strip centers. Preferred co-tenants include upscale
retailers. Plans call for 15 openings in the coming 18 months. Expansion will take place
in the Western region, as well as in Chicago, IL; Columbus, OH and St. Louis, MO.
Preferred demographics include a population of 300,000 within five miles earning $80,000
as the average income. Leases running 10 years are typical. Aropi, Inc Housewares The 36-unit chain operates locations in AL, AR, FL, GA, IL, IA, KY,
LA, NC, SC, TN and VA. The stores, selling gourmet kitchenware, occupy spaces of 1,800
sq.ft. in regional malls. Plans call for five openings in the coming 18 months.
Expansion will take place within the existing markets. Preferred demographics
include a population of 300,000 within 10 miles earning $50,000 as the average income.
Leases running 10 years are typical and the company, which is franchising, cites Williams
Sonoma as competition. Dodd Camera & Video Photography The 11-unit chain operates locations in OH. The stores, selling
cameras, photographic supplies and video equipment, occupy spaces of 500 sq.ft. to
3,200 sq.ft. in strip centers. Growth opportunities are sought in the existing
market. Hickory Farms, Inc. Specialty The eight-unit chain operates locations in CA, GA, IL, NV, OH and TX.
The stores, selling cigars, occupy spaces of 100 sq.ft. in kiosk locations in
regional malls. Plans call for 100 openings in the coming 18 months. Expansion will take
place nationwide. Remington Products Co. Specialty The 92-unit chain operates locations in AL, AZ, CA, CT, FL, GA, IL,
IN, IA, KS, LA, MA, MI, MO, NE, NJ, NY, NC, OH, OK, PA, TX and VA. The stores, selling
Remington brand personal care items, occupy spaces of 900 sq.ft. to 1,200 sq.ft. in
outlet centers and regional malls. Plans call for 15 openings in the coming 18 months.
Expansion will take place nationwide. Leases running five years are typical. Erickson’s Diversified Corp. Supermarkets The 19-unit chain operates locations in MN and WI. The
supermarkets occupy spaces of 18,000 sq.ft. to 70,000 sq.ft. in freestanding
facilities, power and strip centers. Preferred co-tenants include Kmart and Wal*Mart.
Plans call for two openings in the coming 18 months. Expansion will take place in the existing
markets. Leases running 20 years are typical. Peachtree Natural Foods Supermarkets The nine-unit chain operates locations in AL and GA. The health
food supermarkets occupy spaces of 1,400 sq.ft. to 2,000 sq.ft. in strip centers.
Plans call for eight openings in the coming 18 months. Expansion will take place in the Atlanta,
GA market. Preferred demographics include a population of 50,000 within three miles
earning $30,000 as the average income. Leases running three to five years are typical. Doll City USA Toys The company operates one store in CA. The stores, selling dolls
and doll supplies, occupies a 6,000 sq.ft. space in a freestanding facility. Growth
opportunities are sought in Boise, ID. The company prefers to purchase its
locations. Space Place Florida Fernandina Beach- Amelia Plaza is anchored by Winn
Dixie Marketplace. The 91,727 sq.ft. project has spaces of 2,420 sq.ft. and 2,800
sq.ft. available for lease. Demographics include a five-mile population of 19,600 earning
$47,690 as the average income. In Palm Bay- Marketplace Plaza is
anchored by Winn-Dixie Marketplace and Beall’s Department Store. The
149,752 sq.ft. project has spaces of 1,400 sq.ft., 1,512 sq.ft. and 3,023 sq.ft. available
for lease. Demographics include a five-mile population of 101,245 earning $42,606 as the
average income. Also in Palm Bay- Palm Bay West is anchored by Kmart,
Winn-Dixie Marketplace and Regal Theatre. The 263,361 sq.ft. project has spaces
of 1,300 sq.ft. and 3,600 sq.ft. available for lease. Demographics include a five-mile
population of 81,505 earning $42,540 as the average income. Louisiana Gretna- Towne Square Shopping Center is anchored by Kinko’s,
Jenny Craig and Subway. The 91,000 sq.ft. project has a 25,600 sq.ft. anchor
position and a 15,000 sq.ft. end cap space available for lease. Demographics include a
population of 309,962 earning $35,093 as the average income. Michigan Clarkston- White Lake Commons is anchored by Farmer
Jack, Arbor/CVS, Blockbuster and Hit or Miss. The project has spaces of 1,976
sq.ft. and 7,200 sq.ft. available for lease. In Clawson- Clawson Center
is anchored by Farmer Jack, Staples, Fashion Bug, Blockbuster and Rite Aid.
The project has a 2,565 sq.ft. space available for lease. Demographics include a
three-mile population of 121,050 earning $52,733 as the median household income. In Farmington-
Downtown Farmington Center is anchored by Dots, Shoe Carnival, Hallmark and Starbucks.
The project has spaces from 2,500 sq.ft. to 20,625 sq.ft. available for lease. In Livonia-
Century Plaza is anchored by Damman Hardware and Blockbuster. The
project has a 1,180 sq.ft. space available for lease. New Jersey Montclair- Center at Montclair is a 107,000 sq.ft.
project that is expected to open during October 1999. The site has a 25,000 sq.ft. lower
level space, a 41,000 sq.ft. first floor space and a 41,000 sq.ft. second floor space
available for lease. Demographics include a five-mile population of 512,800 earning
$61,500 as the average income. The site is located near Church Street Mall. Totowa- A 24,000 sq.ft. space is available for lease. The site
is located at the intersection of Route 46 West and Union Boulevard and has 800 parking
spaces. The site is anchored by CompUSA, Petco and Hillman Eyes.
Demographics include a three-mile population of 95,946. South Carolina Columbia- Park Centre is anchored by Wal*Mart, Harris
Teeter and Revco. The 190,000 sq.ft. project has land available for lease or
build-to-suit. Demographics include a trade area population of 152,034 earning $43,016 as
the average household income. In Spartanburg- East Main Centre is
anchored by Wal*Mart and Goody’s. The 170,000 sq.ft. project has land
available for lease or build-to-suit. Demographics include a trade area population of
77,929 earning $39,226 as the average household income. Texas College Station- Spaces from 10,000 sq.ft. to 40,000 sq.ft., as
well as outparcels, are available for lease at a project anchored by Tractor Supply Co.
and Consolidated Stores. The site is located near Texas A&M University. Wyoming Laramie- Laramie Plaza is anchored by JC Penney,
Blockbuster Video and Godfather’s Pizza. The 52,840 sq.ft. project has
spaces of 2,800 sq.ft. and 6,000 sq.ft. available for lease. |