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Issues Number 21
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The Dealmakers Issue Number 21 for the week of June
12, 1998. My Way by Ted
Kraus I ate too much, I drank too much, I developed calluses on my feet and
my body hurt from a lack of sleep. I
also had sinus problems all week and Ann’s contacts “killed” her from the
sand/dirt that was in the air. But
overall, it was a great show and if you didn’t hurt as much as us, you didn’t
work the floor or entertain properly.
The ICSC show in Vegas was great.
However, it wasn’t as good as I had anticipated, but that’s because with
the economy going gang busters and the stock market soaring higher than the
moon. I thought Vegas would be phenomenal and it wasn’t; it was only great;
which isn’t bad, I’d settle for that for the next 20 years. Attendance ended up four percent over last
year’s show and while that’s good, I thought it would be up 10-12%. Probably the most pessimistic person in Vegas was me and by the end of
the show I was having difficulty finding anything to be pessimistic about
except everything being too good.
No one I spoke to had anything negative to say; all the retailers we met
with had an “open to buy” (maybe not in my centers, but were looking to do
deals. They weren’t desperate for
sites, but were more than willing to look and discuss everything.). For the first time in years, I encountered
new retailers walking into our booth wanting space. Developers were busier than ever developing; brokers were
brokering and financial institutions were begging everyone to borrow
money. It was as good as it gets. I also saw for the first time in years, problemed property being
addressed again (it never went away, it just was ignored for the last four
years), with brokers aggressively trying either to sell the problem properties
(at 12-15% CAPs) or attempting to devise a strategy to turn the center
around. I think with all the money
that’s available, owners are saying this is either the time to sell and
minimize their losses or now is the time to attract tenants to the property
that would normally not even consider their center. As I predicated, several REITs were selling off their “bottom”
property so they could concentrate on the “good stuff.” Mergers/acquisitions were announced and discussed by everyone and it
seems the merger mania is going down the food chain as several old “friends”
informed me they sold their management/brokerage companies to larger
institution. One friend sold a small
management firm to a large brokerage company for million$ plus a nice contract. I understand why he sold, I don’t understand
why the acquirer acquired a 12 person company for million$. The argument is they want to strengthen
their retail presence. Doesn’t make
since to me, but what else is new? Retailers came into our booth inquiring if we would do exclusive brokerage
for ‘em (god bless these helpless souls) and every broker had a portfolio of
centers for sale. Finding a single
center for sale seemed more difficult this year than last, but if you
have $50-200 million in pocket change, there were lots of
portfolios available; the CAP rate doesn’t make sense, but they were being sold
anyway. I spoke to one company that
thought they were being aggressive in offering 9 1/4% for a $200 million
portfolio and were sixth in line when the numbers came in. It sold for 8 5/8%. The buyer has to pray every day there’s no
recession in the next few years. Tuesday’s (opening day) crowd was practically uncontrollable and we
couldn’t have handled one more meeting in our booth. Wednesday was a lot calmer but extremely active. I enjoyed and found Thursday the most
productive day as many people left either the night before or that
morning. Therefore, all day Thursday
people had time to “chat” and we had a lot of people wander into our booth
wanting to know what we do. It gave us a great opportunity to sell our
services. Why so many people leave
before the end makes no sense to me, but their leaving helps our business, so
god bless ‘em. W.I.R.R.E. (Women in Retail Real Estate) had their “Get to Know Us
Bash” at our booth on Tuesday evening (thanks again to Prime Locations,
Directory of Major Malls, RD Management and Legend Properties for sponsoring
it) and was well attended along with lots of networking. I’d guesstimate more than 350 people dropped
by to learn more about W.I.R.R.E. It’s
becoming a highly visible and networking organization. I recommend if you’re a female in this
business you contact Mary Ann Saverese of RD Management at 212-265-6500
to get membership information. There
were as usual lots of great parties.
The New York Developers and ARC parties were wall to wall
people and according to Chris and Terri, the Hendon Party at the Hard
Rock Casino was “wild” (but I think you have to be under 40 to really
appreciate that one). The “best” party
(in Ann’s and mine humble opinions) was the Rat Pack party (thank you
Brad Glazer for inviting us) we attended on Sunday night. The reason we enjoyed it so much was that
almost everyone in attendance (except us) had already “made it” and therefore
were calm, with no agenda to push or a need to make a deal. They were really there to socialize and see
old friends. It was great. The only real beef I heard at the show was from some of the exhibitors
at the trade mall. They claimed that
attendance was either down or the quality of attendee’s was lower than in the
past. In a contradiction to the leasing
mall, few had positive words to say. As
I have said in the past, now with the expansion of the convention center
assured for next year, it makes since for the ICSC to combine the two events
into one and have the leasing/trade show held for three days. Everyone would benefit. Another negative I heard (but not about the show) came from an old, old
friend of mine who claimed that 1) most of the people he had meetings with were
so young that he had underwear older than them and 2) they have no idea what
they are talking about. They may be
great asset managers, but they have no idea about the assets they manage, but
it may be he’s just getting old and complaining about the “younger” generation,
(we “old farts” are retiring or being replaced at a rapidly increasing rate)
but I will agree that most of “today’s” generation has less insight in to what
makes retailing and real estate really work than “ours.” This is off the topic, but I have to mention a great article I read in
the May issue of Value Retailing News entitled “Successfully
Retail/Entertainment Centers Follow 12-Step Program.” It was probably one of the most informative
and because they agreed with a lot of my thoughts, insightful articles on
retailing and entertainment I’ve ever read.
I won’t bore you with all the details, but I recommend you read it. I will mention one section which discusses
food and states how food quality has to be high for an entertainment center to
succeed, then quotes Mel Simon wry observation “you can create the most
spectacular theme restaurant, but if you can not make a tasty hamburger, you
will fail.” It’s attention to the
little details that make the difference. General
Merchandise Tenants Expanding Yankee $1 Stores
operates 17 locations in the Northeastern region. The stores, selling merchandise at the fixed price-point of $1,
occupy spaces of 4,000 sq.ft. to 5,000 sq.ft. in regional malls and strip
centers. Preferred anchors include Wal*Mart
and supermarkets. Plans call for 18
openings in the coming 18 months.
Expansion will take place in CT, MA and NY. Preferred demographics include a population of 25,000 within
seven miles earning $25,000 as the average income. Leases running five years are typical and the company cites Dollar
Tree and Tehan’s Only $1 as competition. For more information, contact
Ken Brownell, Yankee $1 Stores, c/o Vanguard Capital Realty, Inc., 2050 Western
Avenue, Suite 201, Guilderland, NY 12084; 518-862-0861, Fax 452-5972, e-mail
vcrinc@aol.com. Universal International
trades as Only Deals at 78 locations in IL, IA, MN, NE, NY, ND, SD, TX
and WI. The stores, selling general
merchandise at closeout prices, occupy spaces of 12,000 sq.ft. to 15,000 sq.ft.
in freestanding facilities and strip centers.
Preferred anchors include discount stores and supermarkets. Plans call for as many as 40 openings in the
coming 18 months. Expansion will take
place in the existing markets.
Preferred demographics include a population of 15,000 within three to
five miles earning $35,000 as the average income. Leases running four years are typical and the company cites Big
Lots and Dollar General as competition. For more information, contact
Gary Amota, Universal International, 5000 Winnetka Avenue North, New Hope, MN
55428-4231; 612-533-1169, Fax 533-1158. Dollar General Corp.
trades as Dollar General Stores at 3,170 locations in 24 states. The stores, selling general merchandise at
the fixed price-point of $1, occupy spaces of 8,000 sq.ft. in freestanding
facilities and strip centers. Preferred
anchors include Wal*Mart and supermarkets. Plans call for 150 openings in the coming 18 months. Expansion will take place in the existing
markets. Leases running three to five
years are typical and the company cites Family Dollar as competition. For more information, contact
Ken Ehli, Dollar General Corp., 427 Beech Street, Scottsville, KY 42164;
502-237-5444, Fax 237-3246. J&C Wholesale, Inc.
does business as Jones Stores at 39 locations in NC and SC. The general merchandise stores occupy spaces
of 6,000 sq.ft. to 30,000 sq.ft. in downtown store fronts, freestanding
facilities and strip centers. Plans
call for the opening of four units in the coming 18 months. Expansion will take place in the existing markets. Leases running five years are typical. The company cites Kmart, Wal*Mart, Family
Dollar and Dollar General as competition. For more information, contact
Ronnie Jones, J&C Wholesale, Inc., PO Box 674, Tabor City, NC 28436;
910-653-4001, Fax 653-2003. New Construction Taubman Centers, Inc.
and The Mills Corporation have formed an alliance to develop Mills-type
projects in major U.S. metropolitan markets.
The 10-year agreement calls for the two REITs to jointly develop and own
at least seven of these centers, each representing approximately $200 million
of capital investment. The initial
scope of the agreement includes joint ventures in projects currently under
development by Taubman in Detroit, MI and Mills in Houston, TX as well as
proposed projects in Philadelphia, PA and Boston, MA. Taubman and Mills are partners in Arizona Mills, a 1.2 million
sq.ft. retail and entertainment mall in Tempe, AZ. For more information, contact
Taubman Centers at (248-258-6800) or The Mills Corp. at (703-526-5000). Vestar plans to
break ground next year on Desert Ridge Towne Center in Phoenix, AZ. The 886,000 sq.ft. project has slots for a
100,000 sq.ft. movie theater and 120,000 sq.ft. and 100,000 sq.ft. stores. In addition, six spaces for stores ranging
from 25,000 sq.ft. to 45,000 sq.ft. are planned. No tenants have been named as of yet. The site is expected to open late next year or early 1999. For more information, contact
Patrick McGinley at (602-866-0900). Westcor Partners is
developing The Shops at Gainey Village in Scottsdale, AZ. The project is expected to have a mix of
upscale shops and restaurants--some of which will be unique to AZ, although
tenants have not been announced. The company
is also looking to develop a 200,000 sq.ft. project on a 160-acre site in
Scottsdale, AZ. Plans include 50 stores
in the first phase. For more information, contact
Jack Rasor at (602-953-6400). Chelsea GCA Realty, Inc. has an option to purchase 75 acres along North Central Expressway and
Stacey Road in Allen, TX to develop a 200-store, village-style center to be
called North Dallas Premium Outlets.
In addition, the company has an option to purchase an additional 77
acres adjoining the property. The
company plans to break ground on the 650,000 sq.ft. project during mid-1999 and
open the center during late 2000. No
tenants have committed to the project as of yet. For more information, contact
Michele Rothstein at (973-228-6111). Glimcher Group, Inc.
plans to break ground during Fall on Paxton Towne Center in Harrisburg,
PA. The 670,161 sq.ft. project includes
space for three anchors, running 123,000 sq.ft., 108,935 sq.ft. and 87,000
sq.ft., as well as seven junior anchor spaces ranging from 22,000 sq.ft. to
45,000 sq.ft. Demographics of the area
include a five-mile population of 134,074 earning $54,530 as the average
household income. A Fall 1999 opening
is planned. The company plans to break
ground during Fall on Chesapeake Commons in Chesapeake, VA. The 479,267 sq.ft. project is expected to
have four anchors and open during Fall 1999.
The company plans to break ground during Summer on a 325,000 sq.ft.
community center in Davenport, IA. The
site will be anchored by American TV and is expected to open during
Spring 1999. The site is located across
from Target, PetsMart and Staples. The company also plans to break ground on Staples Plaza
during Summer. The 75,000 sq.ft.
project will be anchored by Staples.
Five outparcels remain available.
The site is located between Clarion Mall and a Wal*Mart
Superstore. The site is expected to
open late this year. For more information, contact
Charles Bludworth or Richard Bowen, Jr. at (412-765-3333), Fax (765-1903). Who’s Opening & Where Starbucks Coffee Company (206-447-7954) recently opened stores in Royal Oak and Farmington,
MI. In addition, the company plans to
open three coffee bars on the campus of William & Mary college in
Williamsburg, VA during Fall. Staples
(508-370-8500) is developing a 25,000 sq.ft. store in Ridgecrest, CA. The site is expected to open during
September. Borders Books
(313-913-1323) recently opened a store in Nashua, NH and in Woodbridge,
VA. The company is planning to open a
30,000 sq.ft. store in Wynnewood, PA during Summer and a 24,650 sq.ft. store in
Beverly, IL during Winter. Winn-Dixie
(904-783-5000) plans to raze a former Ames Department Store in Norfolk,
VA and develop a 50,000 sq.ft. supermarket on the site. The store is expected to open late this
year. The company recently opened a
45,000 sq.ft. store in York, SC. CarMax Auto Superstores, Inc. (804-527-4000) is planning to develop a used-car lot in Chesapeake,
VA. The site is expected to open during
late 1999. The company recently opened
stores in Hillside, IL and Garland, TX. General Cinema Theatres
(617-264-8233) recently broke ground on an 18-screen, 68,400 sq.ft. movie theatre at Owings Mills Town Center
in Owings Mills, MD. The site is
expected to open late this year. The Athlete’s Foot Group, Inc. (770-514-4500) recently opened its 13th freestanding store location in
Augusta, GA. The company, which
operates more than 700 stores in 42 countries, plans to invest $15 million to
aggressively expand its store base beginning next year. Abercrombie & Fitch
(614-479-7000) plans to open a store at a former The Limited space in Governor’s
Square Mall in Tallahassee, FL during August. Target
(612-304-6099) plans to develop a 116,000 sq.ft. store on the site of a former Mart
Furniture Galleries and Cinemagic Movies theater complex in
Middletown Township, NJ. Home Depot, Inc.
(770-433-8211) is planning to test a hardware convenience store format that
will be designed to serve the small project do-it-yourself homeowner and other
customers who prefer a convenient location and smaller store environment for
purchasing home improvement and related products. The yet-to-be-named concept is expected to open its first store
in the Northeastern region during the first quarter of 1999, followed by three
more stores in the region later in the year.
The stores are expected to average 35,000 sq.ft. and compete more
directly with True Value, Ace Hardware and Sears Hardware. Friendly Ice Cream Corp.
(413-543-2400) recently entered into a franchise agreement with Myrtle Beach
Friends to develop four Friendly’s Restaurants and three Friendly’s
Cafes in the coming three years. The first
restaurant will be located in Myrtle Beach, SC and open during August. The first cafe, a modular version of a
Friendly’s restaurant catering to customers on the go, is slated to open during
early 1999. Subsequent locations will
be in Marlboro, Dillon, Florence, Horry, Darlington and Marion counties, SC. The company also entered into a franchise agreement
to open a restaurant at Fountain Springs West Shopping Center in
Tannersville, PA. The site is expected
to open during September and will be the first unit located in the Poconos. Williams-Sonoma
(415-421-7900) plans to open a 4,500 sq.ft. store at the River Park Square
development in downtown Spokane, WA during August 1999. Gart Sports Co.
(303-861-1122) plans to open sporting goods stores in Bellevue and Puyallup,
WA and Albuquerque, NM before the end
of the year. A&P
(201-930-8442) plans to open two Sav-A-Center supermarkets in the
Biloxi, MS market. The stores were
former Delchamps locations that are currently occupied by Supervalu
Foods. Braum’s Ice Cream and Dairy Stores (405-478-1656) plans to open a restaurant in Amarillo, TX during
July. It will be the company’s fifth
Amarillo unit. McDonald’s Corp.
(630-623-3797) plans to invest more than $400 million to open 400 restaurants
throughout central Europe in the coming three years. If the company reaches its goal, it will double the number of
restaurants it has the region to more than 800 units. Neiman Marcus
(214-741-6911) plans to test a small-format store, known as The Galleries of
Neiman Marcus, at Biltmore Fashion Park in Phoenix, AZ beginning
later this year. The 12,000 sq.ft.
store will feature jewelry, gifts and home accessories. The concept is designed for smaller markets
that can’t support one of the company’s full-line stores. Kolache Factory
(281-497-7788) plans to open a restaurant at Tuscany Square Center in
Houston, TX this month. Kolaches, which
were first created in Eastern Europe during the 1700s, are balls of sweet dough
filled with a variety of ingredients ranging from fruit to eggs and meat. A&W Restaurants, Inc. (313-462-0029) recently announced that it plans to add 100 A&W
corporate restaurants to its shopping mall division in the coming four
years. The company currently operates
180 units in shopping centers in 40 stores. Triarc Restaurant Corp.
(954-351-5215) recently signed an amended development agreement with Sybra,
Inc. which calls for the construction of 60 Arby’s Restaurants in
nine northern and central NJ counties in the coming nine years. The May Department Stores Company (314-342-6300) plans to invest $3.6 billion in the coming five years
to open 100 new department stores, and remodel or expand 100 stores. In addition, the company plans to invest
$350 million in new technologies to enhance service. During 1998, the company plans to invest $725 million and open 19
stores including 10 Lord & Taylor units; three Hecht’s; one Foley’s;
one Robinson-May; two Kaufmann’s and two Filene’s. Buyers & Sellers Malan Realty Investors, Inc. recently signed an agreement to acquire a portfolio of 13 shopping
centers anchored by Wal*Mart stores.
The properties have a total GLA of approximately 370,000 sq.ft. and are
being acquired from Sandor Development Company for $33.7 million. Although the Wal*Mart stores are not
included in the acquisition and Malan will receive no rental revenue from
Wal*Mart, each store in the portfolio features a full-size format and
additional area for expansion, if necessary.
Major tenants in the portfolio include Dollar Tree, Famous Footwear,
Fashion Bug, GNC, Maurices, On Cue, Radio Shack and Sears Optical. The acquired centers are located in IL, IN,
KS, MI, MN and OH. For more information, contact
Anthony Gramer at (248-644-7110). First Washington Realty Trust, Inc. has agreed to acquire Elkridge Shopping Center in Howard County, MD
for $8.1 million. The 74,000 sq.ft.
project is anchored by Superfresh supermarket, Rite Aid, Blockbuster Video,
Pizza Hut and Moto Photo. The company
also has agreed to acquire The Village Shopping Center in Richmond, VA for
$12.9 million. The 110,000 sq.ft.
project is anchored by Ukrops Supermarket, CVS and Blockbutser Video. For more information, contact
Stuart Halpert at (301-907-7800). ENP Capital Resources
is in the market to acquire older shopping centers having GLAs of at least
50,000 sq.ft. Centers located in AZ, FL
and TX are preferred, but projects located in other states will be considered. The company prefers assumable financing, but
all cash deals are possible. For more information, contact
ENP Capital Resources at (512-442-7037), Fax (442-7754). Mansur is in the
market to acquire shopping centers having GLAs of at least 100,000 sq.ft. in
major metropolitan markets having populations of least 500,000. Properties with in-line rents in excess of
$18 psf are preferred. For more information, contact
Thomas Barnes at (978-682-8883), Fax (682-8884). Grubb & Ellis
has the listing to sell a Rite Aid drug store in Exmore, VA. The store has a 20-year lease. The asking price is $1.86 million and $1.275
million at 7.65% is assumable. The
company has the listing to sell Winn Dixie Market Place Center in Oconee
County, SC. The 250,000 sq.ft. project
has an asking price of $4.17 million.
The company has the listing to sell a Rite Aid drug store in Woodstock,
VA. The asking price is $1.86
million. The company has the listing to
sell a Rite Aid drug store in Manassas, VA.
The asking price is $2.583 million.
The company also represents a client in the market to acquire shopping
centers, single tenant retail properties and building retail land nationwide. For more information, contact
Rudy Blankenship at (209-432-9580), Fax (432-2938). Marcus & Millichap
has the listing to sell Fountain Square Shopping Center in Snellville, GA. The 90,806 sq.ft. project is non-anchored
and features all local tenants. The
asking price is $2.8 million. For more information, contact
Mark Cooley at (770-393-1700), Fax (393-1738). Inland Real Estate
is in the market to acquire shopping centers within a 400 mile radius of
Chicago, IL. For more information, contact
Joe Cosenza at (800-218-8000). Cap Rate Properties
has the listing to sell shop space that surrounds a successful supermarket/drug
store in Riverside County, CA. The
asking price of $3.675 million is based on a 10.5% cap rate. The company has the listing to sell a
non-anchored shopping center on three acres of land in Kern County, CA. The tenants are all specialty shops that
average 1,800 sq.ft. each. The asking
price is $4.72 million. The company has
the listing to sell a vacant former Payless Cashways in San Bernardino,
CA. The former tenant remains liable
for the remaining 12 years on the lease.
The asking price is $1.82 million.
The company has the listing to sell a Circuit City single tenant
facility in Santa Ana, CA. The tenant
is not expected to exercise its option and the property allows an investor
seven years of rent from credit tenant.
The asking price is $3.1 million.
The company also has the listing to sell a vacant Albertson’s single
tenant facility in San Bernardino, CA.
The tenant remains liable for the remaining 14 years on the lease. The asking price is $3.118 million. For more information, contact
Dean Curci at (949-852-8475). Buyers Realty is
selling a 32,821 sq.ft. project in IA and will consider a 1031 exchange. The project is tenanted by a 23,508 sq.ft.
OfficeMax and a 9,313 sq.ft. Paper Warehouse.
OfficeMax has a 15-year lease, 3x5 renewals plus bumps. Existing financing is assumable. The asking price is $3.824 million. For more information, contact
Jeff Daniels at (319-337-9573). BHM Properties has
the listing to sell Sevilla Plaza Shopping Center in Kissimmee, FL. The 27,840 sq.ft. project is located six
miles east of Disney World. A one point
assumable 15-year mortgage is available.
The asking price is $2.8 million. For more information, contact
Michele DiOguardo-Ehert at (407-870-7219), Fax (933-5222). Dyche Corp. has the
listing to sell a new freestanding CVS in Alpharetta, GA. The project has a 20 year lease with bumps
every five years. The asking price is
$2.599 million. For more information, contact
Don Dyche at (770-461-5775), Fax (461-5355). Fraser Enterprises
has the listing to sell a shopping center anchored by Winn-Dixie in FL. The 100,000 sq.ft. project was purchased in
the early 1990s and managed by an out of state owner who neglected the property
resulting in almost 50% vacancy. Winn
Dixie generated sales of $385 psf in 1996 and their lease expires in 2006. For more information, contact
Bob Fraser at (407-774-7335). Howard Development Co.
has the listing to sell 35+ acres of land in Kinston, NC. The site is located across a four-lane
highway from Wal*Mart. The owner is
willing to subdivide the tracts. The
asking price is $3.5 million. For more information, contact
Todd Howard at (252-523-2701), Fax (523-1006). Joe Foster Real Estate Advisors represents a client in the market to acquire retail properties and
land in TX. For more information, contact
Richard Lapp at (972-385-3100), Fax (385-3189). The Vanguard Co./CRESA-Austin has the listing to sell a 73,500 sq.ft. vacant former Payless Cashways
building in San Angelo, TX. The asking
price is $2.9 million. For more information, contact
Chris Marcbanks at (512-457-8820), Fax (476-1798). Premier Brokerage
has the listing to sell Cumberland Plaza in Williamsburg, VA. The 161,000 sq.ft. project is anchored by
Wal*Mart and has an 82% occupancy rate.
The asking price is $3.93 million. For more information, contact
Royce Marek at (713-953-2127), Fax (782-0997). Raymond R. Betz Brokerage, Inc. represents investors in the market to acquire single tenant retail
facilities nationwide. For more information, contact
Larry Marks at (713-892-5015), Fax (892-5300). Weems & Co. has
the listing to sell 95 acres of land in Pearland, TX. The site is ideal for a big box user, power center or mall. The asking price is $1.50 psf. For more information, contact
Harry Masterson at (713-658-0442), Fax (658-9709). Mergers & Acquisitions The 1224 Corporation
(301-341-4710), the owner of the controlling AC stock of Giant Food, Inc.
recently entered into an agreement under which all of the controlling Class AC
Voting Stock will be acquired by Royal Ahold for $43 per share. Giant currently operates 164 stores in MD,
VA and Washington, D.C. and 13 Super G stores in DE, NJ and PA. Last year, Giant reported sales of $4.2
billion and net profits of $71 million.
Giant’s management team will remain in place. Dillard’s, Inc.
(501-376-5200) recently announced that it plans to acquire the Mercantile
Stores Company, Inc. for $2.9 billion.
Mercantile Stores operates 119 department stores under the names Gayfer’s,
J.B. White, McAlpin’s, Joslins and Bacons and eight other
names. In many southern states,
Dillard’s and Mercantile both have stores at malls. Dillard plans to close and sell some of these stores. At other locations, Dillard’s plans to
convert the Mercantile store to its format and name. New Plan Realty Trust
(212-869-3000) and Excel Realty Trust, Inc. (619-485-9400) recently
signed a definitive merger agreement to create the nation’s largest community
and neighborhood shopping center REIT.
The new company will be named New Plan Excel Realty Trust, Inc. and
will own a total of 332 properties (276
of which are retail) in 32 states comprising over 34.7 million sq.ft. The transaction creates a company with total
market capitalization of approximately $3.5 billion and market equity of
approximately $2.2 billion. Buffets, Inc.
(612-942-9760) recently reached an agreement in principle to purchase 11
Country Harvest Buffet restaurants from Country Harvest Buffet
Restaurants, Inc. The restaurants
are located in CA, CO, MT and WA.
Buffets currently operates 364 units in 34 states and franchises 24
units in 10 states. Video City, Inc.
(510-428-0202) plans to acquire Planet Video, Inc. for $14.2
million. Planet Video, which is
currently under Chapter 11 protection, operates 35 video stores in IL, NY and
WI. Video City currently operates 47
units. Lead Sheet Gilmore Brothers, Inc. dba The Acorn, Redwood & Ross, C.G. & Co., Woody’s Country
Club, Gilmores Stephen Phillips 143 South Kalamazoo Mall Kalamazoo, MI 49007 616-373-2540, Fax 345-0212 Apparel The 22-unit chain operates locations in KY, IN, MI, NC, OH and SC. The apparel stores occupy spaces of 3,000
sq.ft. in regional malls, specialty and strip centers. Preferred co-tenants include Chico,
Talbot, fashion shoes stores and dinner restaurants. Plans call for as many as three openings in
the coming 18 months. Expansion will
take place within the existing markets.
Leases running three years, with
two three-year options, are typical. Surrey’s of Florida, Inc. dba Surrey’s Steven Shiekman 5125 NW 77th Avenue Miami, FL 33166 305-592-8300, Fax 592-6850 Apparel The 21-unit chain operates locations in FL. The stores, selling fashion Italian
menswear, occupy spaces of 2,000 sq.ft. to 2,500 sq.ft. in regional
malls. Preferred anchors include Neiman
Marcus and Saks Fifth Avenue.
Plans call for the opening of four units in the coming 18 months. Expansion will take place in FL, GA, NC,
SC and TX. Preferred demographics
include a population of one million within 10 miles earning $60,000 as the
average income. Leases running 10 years
are typical. Meineke, Inc. dba Meineke Discount Muffler Shop Paul Melony/ Barbara Tesnear 128 South Tryon #900 Charlotte, NC 28202 704-377-8855, Fax 377-1490 home page: www.meineke.com Automotive The 900-unit chain operates locations throughout North America and
the Dominican Republic. The automotive service centers, specializing in
muffler, brake and shock repairs, occupy spaces of 2,800 sq.ft. to 3,500
sq.ft. in freestanding facilities.
Preferred anchors include Wal*Mart and supermarkets. Plans call for 75 openings in the coming 18
months. Expansion will take place nationwide
and internationally. Leases running
15 years are typical and the company, which is franchising, prefers a vanilla
shell. The company cites Midas
and Monro as competition. Book Emporium, Inc. dba Seidler’s Hallmark, Book Emporium Deb Maranville 1301 SW Washington Street Peoria, IL 61602 309-673-2327, Fax 673-8883 Books The 15-unit chain operates locations in IL and IA. The stores, selling books and greeting
cards, occupy spaces of 4,000 sq.ft. to 6,000 sq.ft. in strip centers. Preferred anchors include Kmart, Wal*Mart
and supermarkets. Plans call for two
openings in the coming 18 months.
Expansion will take place in IL.
Leases running 10 years are typical. Paramount dba Card$mart Frank Feely 13963 Trails End Drive Lockport, IL 60441 708-301-4902, Fax 301-4902 e-mail: cardsmart9@aol.com Cards The 70-unit chain operates locations nationwide. The card stores occupy spaces of 2,400
sq.ft. to 4,000 sq.ft. in regional malls and strip centers. Preferred anchors include Kmart,
Wal*Mart, TJ Maxx and supermarkets.
Plans call for 150 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population
of 50,000 within three miles earning at least $35,000 as the average income. Leases running 10 years are typical. Coastal Mart (Eastern region) Stephen Egbert Box 100 Westville, NJ 08093 609-853-3184, Fax 853-4249 Convenience Store The 250-unit chain operates locations in FL, GA, NJ, NY, NC, PA, SC,
TN, VA and WV. The convenience
stores occupy freestanding facilities on 62,500 sq.ft. of land. Plans call for three openings in the coming
18 months. Expansion will take place
within the existing markets. The
company cites Sheetz and Wawa as competition. Johnny Quik Food Stores, Inc. dba Johnny Quik Food Stores George Bral 5794 East Shields #101 Fresno, CA 53727 209-291-7136, Fax 291-1656 Convenience Store The 21-unit chain operates locations in CA. The convenience stores occupy spaces of 2,800
sq.ft. in freestanding facilities.
Plans call for six openings in the coming 18 months. Expansion will take place in Central CA. Preferred demographics include a population
of 25,000 within three miles earning $50,000 as the average income. Leases running 20 years are typical and the
company is franchising. Crowley Milner & Co. dba Steinbach Ray Attebery 2301 West Lafayette Detroit, MI 48216-1891 313-962-2558, Fax 962-2471 Department Store The 13-unit chain operates locations in CT, NH, NJ, NY and VT. The department stores occupy spaces of 50,000
sq.ft. to 70,000 sq.ft. in power, specialty and strip centers. Plans call for two openings in the coming 18
months. Expansion will take place
within the existing markets.
Preferred demographics include a population of 200,000 within three
miles earning $65,000 as the average income.
Leases running 10 years are typical and the company cites Kohl’s
and The Bon Ton as competition. Horton & Converse Pharmacies dba Horton & Converse Pharmacy Keith Lumpkin 1617 Westcliff Drive #121 Newport Beach, CA 92660 714-645-6670, Fax 645-1903 e-mail: klumpkin@earthlink.net Drug Store The 13-unit chain operates locations in CA. The drug stores occupy spaces of 2,000
sq.ft. in regional malls. Plans
call for one opening in the coming 18 months.
Expansion will take place in the existing market. Leases running five years are typical. Superb Sound, Inc. dba Ovation Audio-Video Specialist Gary McCormick 2750 Tobey Drive Indianapolis, IN 46219 317-890-2400, Fax 890-2490 Electronics The eight-unit chain operates locations in KY and IN. The stores, selling audio and video
electronics, occupy spaces of 6,000 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 markets. Preferred demographics include a population
of 250,000 within 10 miles earning at least $40,000 as the average income. Hoyt’s Cinema Corp. dba Hoyt’s Cinema Paul Beck 1 Exeter Plaza Boston, MA 02116 617-267-2700, Fax 375-0039 Entertainment The 120-unit chain operates 900 screens in CT, MA, MD, ME, MI, NH,
NJ, NY, OH, RI, VA, VT and WV. The
movie theaters occupy spaces of 30,000 sq.ft. to 70,000 sq.ft. in
freestanding facilities, power centers and regional malls. Preferred co-tenants include book stores and
restaurants. Plans call for 20 openings
(250 screens) in the coming 18 months.
Expansion will take place in the Northeastern region. Preferred demographics include a population
of 250,000 within five miles earning $50,000 as the average income. Mini-Golf, Inc. dba Mini-Golf Joseph Rogari 202L Bridge Street Jessup, PA 18434 717-489-8623, Fax 383-9970 e-mail: jrogari@epix.net home page: www.minigolfinc.com Entertainment The 1,994-unit chain operates locations nationwide. The pre-fabricated miniature golf courses
occupy spaces of 3,000 sq.ft. to 4,000 sq.ft. in regional malls and
strip centers. Growth opportunities are
sought nationwide. Lorick Enterprises, Inc. dba La Marick Beauty System, Hairplus, Shear Pleasure, Beauty
Unlimited Mark Lorick PO Box 32668 Charlotte, NC 28232 704-333-9286, Fax 358-0237 Hair Salon The 68-unit chain operates locations in FL, GA, NC, SC, TN, VA and
WV. The hair salons occupy spaces
of 900 sq.ft. in regional malls.
Preferred anchors include Belk, Dillard, Hecht’s and JC Penney. Plans call for three openings in the coming
18 months. Expansion will take place in
the existing markets. Preferred
demographics include a population of 100,000 within six miles earning $35,000
as the average income. Leases running
10 years are typical. Warehouse Home Furnishings Dist., Inc. dba Farmers Furniture, Appliances Lee Metheny Highway 441 South Dublin, GA 31021-4845 912-275-6285, Fax 275-6136 Home Furnishings The 102-unit chain operates locations in AL, FL, GA and SC. The furniture stores occupy spaces of 19,000
sq.ft. in freestanding facilities and strip centers. Preferred anchors include Kmart, Wal*Mart
and supermarkets. Plans call for six
openings in the coming 18 months.
Expansion will take place in GA and SC. Preferred demographics include a population of 18,000 within five
miles earning $20,000 as the average income.
Leases running five years are typical. Bedrosians J. Movsesian 4285 North Golden State Boulevard Fresno, CA 93722-6316 209-275-5000, Fax 275-1753 e-mail: bedrosians@aol.com home page: www.bedrosians.com Home Improvement The 27-unit chain operates locations in AZ, CA, CO, FL, NV and
WA. The stores, selling ceramic
tile and natural stone, occupy spaces of 15,000 sq.ft. in freestanding
facilities. Plans call for two openings
in the coming 18 months. Expansion will
take place in CA and OR. Leases
running five years are typical. Busy Beaver Building Centers dba Busy Beaver Bob Gumash 3130 William Pitt Way, Bldg A6 Pittsburgh, PA 15238 412-828-2323, Fax 828-2430 e-mail: bgumash@hotmail.com home page: busybeaver.com Home Improvement The 12-unit chain operates locations in PA and WV. The home improvement stores occupy spaces of
28,000 sq.ft. in freestanding facilities. Preferred anchors include Kmart, Wal*Mart and
supermarkets. Plans call for as many as
four openings in the coming 18 months.
Expansion will take place in OH.
Leases running 10 to 20 years are typical and the company cites
Lowe’s, Home Depot, Builders Square and Hechinger’s as competition. Guitar Center, Inc. dba Guitar Center Barry Soosman 5155 Clareton Drive Agoura Hills, CA 91301 818-735-8800, Fax 735-8833 Music The 42-unit chain operates locations in AZ, CA, CO, FL, GA, IL, MA,
MI, MN, NJ, NY, OH, TX and WA. The
stores, selling musical instruments and equipment, occupy spaces of 14,000
sq.ft. to 16,000 sq.ft. in freestanding facilities. Plans call for 16 openings in the coming 18
months. Expansion will take place nationwide. Preferred demographics include a population
of one million within 30 miles earning $35,000 as the average income. Leases running 10 years are typical. Sunglass Hut International dba Sunglass Hut, Watch Station Director of Real Estate 255 Alhambra Circle, Penthouse Miami, FL 33134 800-767-0990, Fax 305-461-6283 Optical The 2,100-unit chain operates locations worldwide. The stores, selling sunglasses and watches
occupy spaces of 150 sq.ft. to 1,000 sq.ft. in downtown store fronts,
outlet centers and regional malls.
Plans call for 225 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population
of 200,000 within five miles earning $40,000 as the average income. Leases running 10 years are typical. Sed Shoes dba Sed Shoes, Doumitt Shoes Robert Shiekh, Doumitt Ellahi 26010 Eden Landing Road #6 Hayward, CA 94545-3727 510-732-8900, Fax 732-5116 Shoes The 10-unit chain operates locations in CA. The shoe stores occupy spaces of 2,800
sq.ft. in downtown store fronts and regional malls. Preferred anchors include J.C. Penney
and May Co. stores. Plans call
for five openings in the coming 18 months.
Expansion will take place in Southern CA. Preferred demographics include a population
of 750,000 within five miles earning $45,000 as the average income. Leases running 10 years are typical. Batteries Plus, LLC dba Batteries Plus Jim Olson 625 Walnut Ridge Drive, Ste. 106 Hartland, WI 53029 414-369-0690, Fax 369-0680 Specialty The 110-unit chain operates locations nationwide. The stores, selling batteries, occupy spaces
of 1,700 sq.ft. to 1,900 sq.ft. in freestanding facilities and outlet
centers. Plans call for 40 openings in
the coming 18 months. Expansion will
take place nationwide. Preferred
demographics include a population of 100,000 within three to five miles earning
$35,000 as the average income. Leases
running 15 years are typical and the company is franchising. Pennsylvania Liquor Control Board dba Wine & Spirits Shoppe Alan Herbster NW Office Building Harrisburg, PA 17124-0001 717-787-3016, Fax 787-1415 e-mail: aherbste@lb2rscs.lcb.state.pa.us Specialty The 649-unit chain operates locations in PA. The liquor stores occupy spaces of 2,800
sq.ft. in downtown store fronts, freestanding facilities, regional malls,
power, specialty and strip centers.
Plans call for 12 openings in the coming 18 months. Expansion will take place in the existing
market. Leases running five years
are typical and the company prefers turnkey deals. Big Y Foods, Inc. dba Big Y Supermarket Steve Hurwitz 280 Chestnut Street Springfield, MA 01104-3456 413-784-0600, Fax 781-2881 Supermarket The 44-unit chain operates locations in CT and MA. The supermarkets occupy spaces of 45,000
sq.ft. to 65,000 sq.ft. in freestanding facilities, power and strip
centers. Plans call for six openings in
the coming 18 months. Expansion will
take place in the existing markets.
Leases running 20 years are typical. Harp’s Food Stores Mike Thurow PO Drawer 48 Springdale, AR 72765 501-751-7601, Fax 751-3625 Supermarket The 42-unit chain operates locations in AR, MO and OK. The supermarkets occupy spaces of 15,000
sq.ft. to 65,000 sq.ft. in freestanding facilities. Plans call for three openings in the coming
18 months. Expansion will take place in
AR, KS, MO or OK. Preferred
demographics include a population of 20,000 within 10 miles earning $25,000 as
the average income. Leases running 15
years are typical. Exclusives: Leasing & Managment Assignments Robinson Sigma Commercial Real Estate (757-490-3300) has been selected by Harbor Group as the leasing
and managing agent of Woodlawn Village, a 54,200 sq.ft. shopping center
in Fredericksburg, VA. Vestar Property Management (602-993-1626) has been named the property manager for the following
projects: Tustin Plaza in Tustin, CA.
The 90,000 sq.ft. project is anchored by Souplantation and Spoons;
Ocotillo Fiesta in Chandler, AZ.
The 100,000 sq.ft. project is anchored by Albertson’s and McDonald’s;
and Scottsdale Fiesta in Scottsdale, AZ. The 500,000 sq.ft. project is anchored by HomeBase, Smith’s,
Kmart and Barnes & Noble. The Sembler Company
(813-384-6000) has been awarded five management contracts by BVT Equity
Holdings, Inc. The projects include
Shoppes of Citrus Hill in Hernando, FL; Indian River Square in
Vero Beach, FL; Paraiso Plaza in Hialeah, FL; Publix Plaza in St.
Cloud, FL and Sheridan Square in Dania, FL. Castle & Cooke Retail, Inc. (808-548-3711) has been named the leasing, managing and
operations manager of the 250,000
sq.ft. The Shops at Dole Cannery in Honolulu, HI. KLNB, Inc.
(410-321-0100) is overseeing the site selection of Barbeques Galore in
the Baltimore, MD-Washington, D.C. markets.
The company, which operates 46 stores domestically and 78 stores in
Australia, specializes in the sale of barbeque grills, smokers, sauces and
related grilling accessories. The
stores occupy 5,000 sq.ft. in endcap spaces or freestanding facilities. Stores are expected to open soon or have
recently opened at The Avenue in White Marsh, MD; Potomac Run
Shopping Center in Sterling, VA; Fairlakes Promenade in Fairfax, VA;
Columbia Crossing in Columbia, MD; Towson Marketplace in Towson,
MD; The Kentlands in Gaithersburg, MD; Central Park in
Fredericksburg, VA and Springfield Commons in Springfield, VA. The company plans as many as 20 openings nationwide this
year. The company has also been
selected to oversee Chick-Fil-A’s expansion activities in the Baltimore,
MD-Washington, D.C. markets. The
company currently operates 18 restaurants in the area and is looking to
increase that number to as many as 60 in the coming five years. The company uses food court spaces running
800 sq.ft. in regional malls and freestanding facilities running 3,500 sq.ft.
in high-traffic suburban growth markets. Lease Signings |