The Dealmakers Issue Number 9 for the week of March 13, 1998.

 

My Way by Ted Kraus

 

We manage several vacant free standing buildings that are aggressively being leased by the owners, not us.  Along with the traditional management/maintenance responsibilities, our job is to let in prospective tenants and their brokers.  What I find disturbing is in 90% of the cases when there's a broker involved, I have to provide directions to the site and then explain the "good points" of the area to their client.  How can some idiot expect to be paid $100,000 to $150,000 in commission for a site they know nothing about it?

 

If I have a client/tenant interested in an area, I'll drive the market looking for space and try and learn as much as possible about the market, competition, new construction, rental rates, etc.  These brokers know nothing about the site or market and can't tell the prospective tenant squat.  Talk about unprofessional, but the economy is good enough that their making deals in spite of themselves.  A frustrating sidebar on this management assignment is we're "sub-managing" the property for a large national brokerage/management company who has not paid us in two months.  I've done the usual of calling and writing, but got nowhere, so I sent a letter of resignation combined with a 10 day "demand" letter.  Well, no one responded, but that's all right, my lawyer works on a contingency basis, so there's no out of pocket expenses involved for the lawsuit.  Anyway, late one Friday night I received a call from the head of leasing for the REIT that owns the properties and the management company works for.  He said "I understand you're no longer working for us," and I replied "Yeh, something about not being paid does that to me!"  He then went on to explain how REITS are incompetent, bureaucratic, etc.  I said "Yeh, yeh, yeh, where's my money."  He promised to check into it and "by the way, could you let two retailers in to some of the sites on Wednesday?"  I said, I wouldn't do it as the management company since we've resigned but, as a personal favor I would, even though I didn't know him, I'd be a good guy and let 'em in.

 

He thanked me profusely and that was it.  Well on Tuesday he called back (we still didn't get paid) and wanted to know if we could let people in on Friday as well.  I almost lost control.  What chutzpeh.  I was stupid enough to agree to help him out even though he owes me tens of thousands of dollars the first time and then starts to push for even more.  Well, I was rather polite, but said no and before I could ask about our money he hung up.  Guess what, to further pour salt into the wounds, the tenant was a hour late.  It just doesn't pay to be a "nice guy."  If I was smart I wouldn't have shown up on Wednesday for the meeting, but I did, fool that I am.

 

Talking about a good economy, acquisitions or at least the desire to acquire, is going from hot to hotter than hell.  Besides everyone looking to purchase, financing is getting back in many cases to the "bad old days" of 100% financing, credit "worthiness" is dropping in importance or at least institutions are becoming more lenient in those demands, rents are going crazy also, e.g. in NYC, the average new rent quote is $100 psf (to lease not buy).  Now I admit New York is hot and New York is New York, but at those numbers (and we're not talking creme de la creme locations, I'm talking C+ locations) you have to do great just to break even.  Because the economy is good, the government (may they rest in peace) is taking in more money than they can count, therefore a surplus and have no need to borrow, less government borrowing, more money available for "us."

 

Because of all of the above, I'm now beginning to understand why a lot of our clients are millionaires and I'm not, beside being brighter, they really do understand the market better than I.  We took over marketing several centers for sale about nine months ago.  I really didn't want to take on the property since the owners wanted a 9 1/2% CAP for a non-institutional grade center leased mostly to non-credit tenants.  I didn't feel anyone was dumb enough to buy 'em.  I told this to the clients but they responded not to worry, they weren't in a rush and someone, somewhere would buy it.  Well, the first four months we aggressively worked on the project and were shot down by everyone, saying the best they would offer was a 10 1/2% CAP, which the seller was not willing to even discuss (I thought they were being totally unrealistic, but it was their property.).  But because there's so little product available, we're now getting offers close to their price and while I'm not ready to spend the commission, it does look like it will sell.  I guess if you have the patience to wait, you can get your money no matter how outrageous the price.

 

On a different subject, I was involved in a deal where we tried but failed to move a national "super store" from one extremely poor location to a strong B+ site.  Our location made a lot of sense to do and we even had a subtenant for their old location.  What we didn't have was money to make up for their unamortized leasehold improvements for the old store and that killed the deal.  That's where I respect Wal*Mart, they make retail decisions first, real estate decisions second and the hell with the fact that they'll take a $750,000 "hit" on the leasehold.  The location and viability of the new site is of most importance.  The real estate "guy" from the super store told me that their chairman was getting ready to retire, so the value of the stock was more important than the value the move had to the company.  Wall Street would not like the paper writeoff.  Great way to make decisions.

 

Oh, before I forget, I was playing around on the Internet the other night and came across two interesting sites, one was called Tenant Search (it has nothing to do with our database program and I'm checking into copyright infringement, but that's besides the point) whereby you type in the zip code of your property and the radius from the property you want to search, then check the type of tenant you're looking for (retail, industrial, manufacturing, service, fast food. etc.), the square footage available, the employee size you're looking for, net worth of tenant, etc. and they do a search and inform you how many tenants in that radius match your criteria.  For 95 cents per name you can download the company, address, phone, fax, etc.  It's pricy, but sounds great.  I'm sure they're tied into D&B or something equivalent.  Anyway, take a look at it at http://www.cogonline.com/tens.html.  The other site provides vacancy information nationwide on all types of real estate (retail, industrial, apartments, etc.).  Not as much fun, but interesting.  Give it a view at http://www.williams-lavitt.com/wl/vac.html.

 

 

Retailers Expanding Throughout Indiana

 

Cost Plus, Inc. trades as Cost Plus World Market at 70 locations in AZ, CA, CO, ID, IL, IN, MI, MO, NM, NV, OH, OR, TX, WA and WI.  The stores, selling home furnishings, gourmet food, beer and wine, occupy spaces of 18,300 sq.ft. in power and strip centers.  Preferred co-tenants include book stores and linen stores.  Plans call for 20 openings in the coming 18 months.  Expansion will take place in KY, OH, the Midwestern and Western regions.  Preferred demographics include a population of 200,000 within five miles earning $50,000 as the average income.  Leases running 10 years are typical and the company cites Pier 1 as competition.

  For more information, contact Michael Englund, Cost Plus, Inc., 201 Clay Street, Oakland, CA 94607-3509; 510-893-7300, Fax 893-6418.

 

Bermo Enterprises, Inc. trades as Max 10 and Mr. B's Wearhouse at 14 locations in MI and IN.  The stores, selling women's apparel at off-price points, occupy spaces of 5,000 sq.ft. to 8,000 sq.ft. in freestanding facilities, outlet and strip centers.  Plans call for as many as five openings in the coming 18 months.  Expansion will take place in Northern IN and Western MI.  Leases running three to five years are typical and the company cites Kohl's and TJ Maxx as competition.

  For more information, contact Ed Bernard, Bermo Enterprises, Inc., 12033 US 131, Schoolcraft, MI 49087; 616-679-2580, Fax 679-2611.

 

Mark Shale Company trades as Mark Shale at eight locations in GA, IL, MO and TX.  The men's and women's apparel stores occupy spaces of 20,000 sq.ft. in downtown store fronts and regional malls.  Preferred co-tenants include Neiman Marcus, Nordstrom and Saks Fifth Avenue.  Plans call for one opening in the coming 18 months.  Expansion will take place in the Midwestern region.  Preferred demographics include a population of 800,000 within 40 miles earning $55,000 as the average income. Leases running 18 years are typical.

  For more information, contact Ron Gaines, Mark Shale Company, PO Box 4887 Drew Station, Lake Charles, LA 70606; 318-478-4368, Fax 478-0186.

 

Hall of Cards & Books, Inc. does business as Majerek's Hallmark and Readers World at 26 locations in MI and IN.  The stores, selling books, Hallmark greeting cards and gifts, occupy spaces of 3,000 sq.ft. to 7,500 sq.ft. in downtown store fronts, freestanding facilities, power and strip centers.  Preferred anchors include JC Penney, Marshall Field and Lord & Taylor.  Plans call for two openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 35,000 within five miles earning $45,000 as the average income.  Leases running 10 years are typical.

  For more information, contact Mike Majarek, Hall of Cards & Books, Inc., 313 East Main Street, Niles, MI 49120; 616-684-5115, Fax 684-8428.

 

 

Financial News

 

World of Science, Inc. (716-475-0100) reported that sales for 1997 increased 22.4% to $54.25 million from $44.31 million during 1996.  Comparable store sales increased 1.5% for the year.  The company plans to open 20 permanent stores this year.  Currently, the company, which offers science and nature products which have both educational and entertainment value, operates 56 permanent stores and 67 seasonal stores nationwide.

 

Hibbett Sporting Goods, Inc. (205-942-4292) reported that its 1997 net sales increased 31.4% to $113.6 million from $86.4 million during 1996.  Comparable stores sales increased 6.4% for the year.  During the past year, the company opened 33 stores and is planning to open 42 stores this year.  Currently, the company operates 122 sporting goods stores in small to mid-sized markets in 14 Southeastern states.

 

Food Lion, Inc. (704-633-8250) reported that its 1997 earnings were $179 million.  Excluding a third quarter pre-tax charge of $87.1 million associated with store closings, earnings reached $233 million for the year.  The 1997 earnings increased 13% from $206 million during 1996 and were posted on sales of $10.2 billion in 1997, up from sales of $9 billion in 1996.  During the year, the company added 100 stores through the acquisition of Kash 'n Karry and opened 64 new stores while closing 94 stores, including 61 stores in its Southwestern divestiture.  During 1998, the company plans to open 75 stores, including 17 replacement stores, and to remodel and/or expand 133 stores.  Currently, the company operates more than 1,100 supermarkets in 11 states.

 

Office Depot (561-265-4258) reported that total sales for fiscal 1997 increased 11% to $6.718 billion from $6.07 billion during fiscal 1996.  Comparable store sales increased eight percent for the year.  The company also reported an operating profit increase of 27% to $303 million from $239.4 million in 1996.  Net earnings increased 31% to $169.5 million from $129 million during 1996.  During the year, the company opened 42 stores nationwide and 21 stores internationally.  During this year, the company plans to open 80 stores.  Currently, the company operates 612 stores nationwide, 37 stores in Canada and 45 stores in Mexico, Israel, Colombia, France, Poland, Japan, Thailand and Hungary.

 

Outback Steakhouse, Inc. (813-282-1225) reported that its 1997 net income was $61.4 million, down from $71.6 million during 1996.  Revenues for the year increased to $1.1 billion from $937 million during 1996 and systemwide sales increased 27% to $1.36 billion from $1.07 billion during 1996.  Currently, the company operates 446 Outback Steakhouses and 61 Carrabba's Italian Grill restaurants in 43 states.

 

Blimpie International, Inc. (770-984-2707) reported that its second quarter revenues increased to $9.65 million from $9.18 million during the second quarter last year.  Net income for the quarter fell to $761,590 from $850,714 last year.  Currently, the company operates and franchises more than 1,855 restaurants nationwide and in 11 countries.  The company also owns the trademarks for Maui Tacos and Pasta Central.

 

 

Who's Opening & Where

 

Dillard's Department Stores (501-376-5200) plans to double the size of its store at Greenbrier Mall in Chesapeake, VA from 80,000 sq.ft. to 160,000 sq.ft.  Construction is expected to begin during the Summer.  The store is one of the units acquired from Proffitt's.

 

New England Audio (617-262-6620) recently opened a 10,000 sq.ft. Bryn Mawr Stereo & Video store across from Galleria Mall in York, PA.  The company also recently opened a 9,000 sq.ft. Tweeter Etc. store at Crystal Mall in Waterford, CT.

 

Shells Seafood Restaurants, Inc. (813-961-0944) recently opened a restaurant in Cincinnati, OH.  It is the company's fifth unit in that market.

 

Pacific Theatres (310-657-8420) recently opened Winnetka 20, a 120,000 sq.ft., 20-screen movie theatre on the site of the former Winnetka Drive-in in the San Fernando Valley, CA.

 

K&G Men's Center, Inc. (404-351-7987) plans to open a men's apparel store in Springfield, PA during the second quarter this year.  It will be the company's second store in the Philadelphia, PA market.

 

Friday's Hospitality Worldwide, Inc. (972-450-5400) recently signed an agreement with Johnson Development Corporation, led by Earvin "Magic" Johnson, which calls for the development of T.G.I. Friday restaurants in underserved urban communities nationwide.  In the coming five years, restaurants are planned for Atlanta, GA; Baltimore, MD; Houston, TX; Los Angeles, CA and Washington, D.C.

 

Sun Television and Appliances, Inc. (614-492-5600) plans to open stores in Lebanon, PA; Richmond, KY; and Hamilton and Marion, OH before the end of next month.  The stores will range in size from 22,000 sq.ft. to 30,000 sq.ft.

 

Lowe's Companies, Inc. (910-658-4223) plans to open a 150,000 sq.ft. home improvement store in northeast Dallas, TX this year.  It will be the company's 13th unit in the Dallas-Fort Worth metroplex market.

 

Standard Theatres, Inc. (310-410-2300) plans to open a 43,000 sq.ft., 10-screen movie theater at St. Union Station in St. Louis, MO during May.

 

Kaufmann's (314-342-6300) is developing a 95,000 sq.ft. department store on the site for a former Value City department store at Nittany Mall in State College, PA.

 

CompUSA, Inc. (972-982-4000) plans to open a 28,000 sq.ft. store at Chandler Pavilions Shopping Center in Chandler, AZ during late 1998; a 28,500 sq.ft. store at Plaza at The Parks Shopping Center in Arlington, TX during Summer and a 28,500 sq.ft. store at Sunset Valley Village Shopping Center in Austin, TX during late 1998.

 

Haverty Furniture Companies, Inc. (404-881-1911) plans to open a 36,000 sq.ft. store in Bowling Green, KY and a 28,000 sq.ft. store near Spotsylvania Mall in Fredericksburg, VA.

 

Avon Products, Inc. (212-282-7101) plans to open a 20,000 sq.ft., four-level store and spa at Trump Tower in Manhattan, NY during November.  The store will feature two floors dedicated to retail products and two floors dedicated to salon and spa services.

 

NBTY, Inc. (516-244-2125) recently opened 20 Vitamin World stores in AZ, CA, CT, FL, MD, MA, MS, NH, NY and NC.  The company plans to open 120 stores annually in the coming three years.  Currently, the company operates 130 stores in 38 states.

 

Computer Access International, Inc. (954-735-0280) plans to open a 4,000 sq.ft. computer store in Hingham, MA this month.

 

Genesco, Inc. (615-367-7000) plans to launch a new concept store called Underground Station this month, with the store expected to open in Indianapolis, IN.  Stores in Columbia, SC; Fayetteville, NC; Jersey City, NJ and Buffalo, NY are expected to following next month.  By February 1999, the company expects to be operating 40 of the new stores.  The store will target males ages 18 to 35 in urban markets.

 

Hollywood Entertainment (503-570-1600) plans to open a 9,000 sq.ft. Hollywood Video store at Barger Crossing in Eugene, OR.

 

 

Sources of Financing

 

The Carlton Group, Ltd. (212-545-1000) arranged $38 million in construction and mini-permanent financing for Massapequa Mall, a 450,000 sq.ft. power center in Massapequa, NY.

 

Cohen Financial (312-346-5680) recently provided $2.5 million in financing for repositioning and tenant improvements for a 36,000 sq.ft. mixed-use property in Chicago, IL.  Bigbsy & Kruthers, Inc., a men's clothier, recently relocated to the site and a new restaurant will be developed in the space of the former Bigbsy Bar & Grill.

 

Edward T. Byrd & Company (407-426-8868) recently completed a $7.6 million permanent loan on Lake Fredrica Shopping Center, anchored by Publix, in Orlando, FL through Morgan Stanely Mortgage Capital.  The company completed two fixed-rate permanent loans with Broadview Financial Services to fund Carmike Cinema locations in Pensacola, FL ($2.7 million) and in Provo, UT ($4.3 million).  The company funded a $1.9 million fixed-rate permament loan for Aid Association for Lutherans on Imperial Christina Plaza, anchored by Winn-Dixie, in Lakeland, FL.  The company also funded through Union Central Life a $1.8 million fixed-rate permanent loan on Edgewater Shopping Center in Orlando, FL.

 

 

Mergers & Acquisitions

 

Star Buffet, Inc. (801-463-5525) recently entered into an agreement with JB's Restaurants, Inc., a wholly owned subsidiary of CKE Restaurants, Inc., to acquire 12 JB's Restaurants in AZ, MT, NM, UT and WY for $4.265 million.  Star plans to convert the AZ and UT units to its newly developed reduced size buffet format.  Star Buffet currently operates seven JJ North's Grand Buffet restaurants, two Casa Bonita Mexican restaurants and 16 franchised HomeTown Buffet restaurants.

 

Popeyes Chicken & Biscuits (770-353-3148), a subsidiary of AFC Enterprises, Inc., recently acquired 81 former Hardee's restaurants in AL, GA, NC, SC, TN and VA from Pinetree Foods, Inc.  Popeye's plans a quick transition from the Hardee's concept to its own Popeye's restaurant concept.  The acquired units are part of Pineville's 103-unit chain, which was closed over a legal dispute with Hardee's.

 

MIS International, Inc. (905-890-6442) recently signed a letter of intent to acquire Pretzelmaker, Inc.  Pretzelmaker operates 220 locations in 39 states and eight Canadian provinces.  MIS International develops and franchises retail concepts on a multi-unit basis.  MIS currently has two franchise concepts, Pretzel Twister in the snack food industry and Wheel to Wheel in the automotive repair industry.

 

Moneysworth & Best Shoe Care, Inc. (416-674-6148) recently entered into a letter of intent to acquire the Shoe Stop, Inc.  Shoe Stop operates and franchises 21 shoe repair stores in AZ, CA, OR and WA.  Moneysworth plans to immediately franchise the corporate stores and convert all of the stores to its Moneysworth & Best Quality Shoe Repair store concept.  Moneysworth currently develops, distributes and markets a line of more than 300 shoe care and foot care products through 4,100 retail stores throughout North America.

 

Room Plus, Inc. (201-523-4600) announced that its agreement in principle to acquire The Baby's Room and Baby Room USA has been terminated.  In a statement, Room Plus said that it could not obtain acceptable financing commitments for the acquisition and agreed to terminate the letter of intent so that The Baby's Room could pursue other alternatives.  However, Room Plus remains interested in the acquisition and if financing can be worked out, a merger can be explored again.  Room Plus currently operates 17 stores in NJ, NY and PA.

 

 

Buyers & Sellers

 

Mid-Atlantic Realty Trust recently acquired Wayne Heights Plaza in Waynesboro, PA.  The 109,000 sq.ft. project is anchored by Martin's supermarket, Ames, Eckerd, Hardees, Holiday Hair and Golden Corral.  The purchase price was $5.35 million.  The company also recently acquired Wayne Avenue Plaza in Chambersburg, PA.  The 121,000 sq.ft. project is anchored by Giant Supermarket, CVS, Blockbuster and Dollar Tree.  The purchase price was $10.7 million.

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

 

Joseph C. Leonardo & Co. has the listing to sell a NNN ground lease in Maui, HI.  The site is leased to Kmart to 2014 with four five-year options to renew.  The ground was originally leased to Kmart who assigned the lease to KM Maui Partners in a sale/lease back deal.  Both Kmart and KM Maui Partners are responsible for the lease.  The site also offers other uses should Kmart ever vacate.  The asking price is $10.2 million.

  For more information, contact Joseph Leonardo at (808-735-1273).

 

Jeffery Realty, Inc. brokered the sale of Sugar Tree Plaza in Edison, NJ.  The 29,000 sq.ft. project is anchored by Sir Speedy and Gymboree.  A local investor purchased the property.  The company brokered the sale of Dorneyville Shopping Center in Allentown, PA.  The 111,000 sq.ft. project is anchored by Laneco Supermarket and Department Store, Wendy's and Carriage Drug.  The company brokered the sale of Heights Shopping Center in Hasbrouck Heights, NJ.  The 58,000 sq.ft. project is anchored by ShopRite Supermarket and Goldberg's Bagels.  The company also brokered the sale of Fogelsville Shopping Center in Fogelsville, PA.  The 32,000 sq.ft. project is anchored by Eckerd Drugs.  The company represents an aggressive all cash buyer in the market to acquire commercial/retail land from one to ten acres in northern NJ.

  For more information, contact Roy Pascal at (908-668-9600).

 

P.F. Pasbjerg Development Co. recently acquired Shillington Square in Shillington, PA.  The 135,000 sq.ft. project is anchored by Giant Supermarket and A.C. Moore Super Store.  A 45,000 sq.ft. former Rickels store is available for lease as is a freestanding pad site.  The company is in the market to acquire shopping centers having GLAs from 100,000 sq.ft. to 500,000 sq.ft. in DE, MD, NJ, NY and PA.

  For more information, contact Steve Nussbaum at (973-467-0950), Fax (467-1809).

 

AMB Property Corp. and The Lefmark Group recently formed a joint venture and acquired Northridge Shopping Center in Oakland Park, FL.  The 192,000 sq.ft. project is anchored by Target, Publix and Walgreens.  An expansion to bring the center's total GLA to 210,000 sq.ft. is planned for this year.

  For more information, contact AMB Property Corp. at (415-394-9000) or The Lefmark Group at (713-850-1850).

 

Schostak Brothers & Company has the listing to sell North Kent Mall in Grand Rapids, MI. The 183,283 sq.ft. project is located between Kmart and Montgomery Ward stores.  The asking price is $2 million.

  For more information, contact Howard Schwartz or Randall Thomas at (248-262-1000).

 

Pan Pacific Retail Partners recently acquired Tacoma Center in Tacoma, WA.  The 300,400 sq.ft. project is anchored Top Food Supermarket & Drug, Target, Office Depot, TJ Maxx and Cineplex Odeon.  The company recently acquired Claremont Village in Everett, WA.  The 88,700 sq.ft. project is anchored by QFC Grocery & Drug and Hollywood Video.  The company also recently acquired Olympia West Center in Olympia, WA.  The 73,000 sq.ft. project is anchored by Barnes & Noble, Petco and The Good Guys.

  For more information, contact Carol Merriman at (760-727-1002).

 

Robert Faust Mortgage Company represents a client selling a Festival Food Store (Fleming) lease in Bellevue, WA.  The 65,000 sq.ft. store has an initial lease term of 20 years with six five-year options.  The asking price is $5.75 million. and financing of $3.9 million is available.

  For more information, contact Bob Faust at (214-691-1545).

 

Equity Attainment, Inc. has the listing to sell Butterfield Plaza in Hillside, IL.  The 9,500 sq.ft. project contains seven individual retail units.  The asking price is $775,000 and owner financing is available.

  For more information, contact Carolyn Rakunas at (630-325-3200), Fax (325-3317).

 

 

Tenants Looking To Expand in The Rocky Mountain States

 

Mister Neat's Formalwear, Inc. trades as Mister Neat's Formalwear at 15 locations in CO.  The stores, offering tuxedo rentals and sales, occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in freestanding facilities, regional malls, specialty and strip centers.  Plans call for as many as five openings in the coming 18 months.  Expansion will take place in the existing market.  Leases running at least 10 years are typical.

  For more information, contact Mark Burke, Mister Neat's Formalwear, Inc., 5677 Boeing Drive, Loveland, CO 80538-8811; 970-667-4444, Fax 669-9226.

 

Burke Cleaners LLC trades as Burke Cleaners at five locations in CO.  The dry cleaners occupy spaces of 1,000 sq.ft. to 1,200 sq.ft. in strip centers.  Preferred anchors include supermarkets.  Plans call for as many as three openings in the coming 18 months.  Expansion will take place in the existing market.  Leases running five years, with a five-year option, are typical.

  For more information, contact Mark Burke, Burke Cleaners LLC, 5677 Boeing Drive, Loveland, CO 80528-8811; 970-667-4444, Fax 669-9226.

 

Lamp Post Pizza operates 52 locations in AZ, CA and TX.  The pizza restaurants occupy spaces of 2,500 sq.ft. to 3,500 sq.ft. in freestanding facilities and strip centers.  Preferred anchors include supermarkets.  Plans call for eight openings in the coming 18 months.  Expansion will take place in AZ, CA, NV, TX and UT.  Preferred demographics include a population of 10,000 within two miles earning $36,000 as the average income.  Leases running 10 years are typical and the company, which is franchising, cites Pizza Hut and Round Table Pizza as competition.

  For more information, contact Tom Barro, Lamp Post Pizza, 3002 Dow Avenue, Suite 320, Tustin, CA 92680; 714-731-6171, Fax 731-0951.

 

Carpeteria, Inc. trades as Carpeteria at 75 locations in AZ, CA, NV, OR and PA.  The stores, selling floor and window coverings, occupy spaces of 3,000 sq.ft. to 4,500 sq.ft. in power centers.  Preferred anchors include Circuit City, PetsMart, Ross and Toys 'R Us.  Plans call for 12 openings in the coming 18 months.  Expansion will take place in the Rocky Mountain and Pacific States.  Preferred demographics include a population of 150,000 within three miles earning $50,000 as the average income.  Leases running five years are typical and the company, which is franchising, cites Home Depot, HomeBase and Sears as competition.

  For more information, contact Terry Mansky, Carpeteria, Inc., 25322 Rye Canyon Road, Santa Clarita, CA 91355; 805-295-1000, Fax 257-4958.

 

Canned Foods, Inc. trades as Canned Foods Grocery Outlet at 111 locations in CA, HI, ID, MT, NV, OR, UT and WA.  The supermarkets occupy spaces of 20,000 sq.ft. in freestanding facilities and strip centers.  Plans call for 18 openings in the coming 18 months.  Expansion will take place in CO and TX.  Preferred demographics include a population of 75,000 within three miles earning $35,000 as the average income.  Leases running five years are typical and the company prefers a vanilla shell.

  For more information, contact Greg Geertsen, Canned Foods, Inc., 2000 5th Street, Berkeley, CA 94710-1918; 510-845-1999, Fax 644-9990.

 

Cousin's Sub System, Inc. trades as Cousin Subs at 130 locations in AZ, IL, MI, MN and WI.  The sandwich restaurants occupy spaces of 750 sq.ft. to 1,800 sq.ft. in downtown store fronts, freestanding facilities, power and strip centers.  Preferred anchors include Kmart, TJ Maxx, Wal*Mart, supermarkets and video stores.  Plans call for 55 openings in the coming 18 months.  Expansion will take place in CO, IN, MO, NV and TX.  Leases running 10 years are typical and the company, which is franchising, requires tenant improvements.  The company cites Blimpie and Subway as competition.

  For more information, contact Jim Schrank, Cousin's Sub Systems, Inc., 13400 Leon Road, Menomonee Falls, WI 53051; 414-253-7700, Fax 253-7705.

 

Provo Craft operates eight locations in ID and UT.  The stores, selling arts and crafts, occupy spaces of 20,000 sq.ft. in strip centers.  Preferred anchors include Kmart, TJ Maxx, Wal*Mart and supermarkets.  Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets.  Preferred demographics include a population of 100,000 within 10 miles earning $40,000 as the average income.  Leases running 10 years are typical.

  For more information, contact Kevin Buckner, Provo Craft, 285 East 900 South, Provo, UT 84606-6107; 801-377-4311, Fax 373-1901.

 

Metz Baking Company does business as Bakery Outlets at 205 locations in CO, IA, IL, KS, MI, MN, MO, NE, ND, SD, UT, WI and WY.  The bakeries occupy spaces of 2,000 sq.ft. to 2,400 sq.ft. in freestanding facilities and strip centers.  Preferred anchors include home centers and drug stores.  Plans call for 15 openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 30,000 within three miles earning $20,000 as the average income.  Leases running five years are typical.

  For more information, contact Alexander Raine, Metz Baking Company, 520 Lake Cook Road, Suite 520, Deerfield, IL 60015; 847-267-3000, Fax 267-0015.

 

 

Exclusives

 

KLNB, Inc. (410-321-0100) is representing Food Lion in its expansion in the Baltimore, MD metropolitan area.  Food Lion is planning to open four 45,000 sq.ft. supermarkets at Walther Shopping Center in Perry Hall; Liberty Crossroads Shopping Center in Randallstown, along with stores in Reisterstown and Essex.

 

Coldwell Banker (732-494-7529) has been named the exclusive leasing agent for a freestanding 10,000 sq.ft. building in the outlet area of Flemington, NJ.

 

James Hanson, Inc. (201-488-5800) has been appointed the exclusive leasing agent for a 36,000 sq.ft. retail/office building in Manchester Township, NJ.  The project is anchored by Hudson City Savings Bank as well as 13 local and regional retailers.

 

DJM Asset Management, Inc. (212-922-1200) has been retained to dispose of six former Catherine Stores.  The stores include a 4,995 sq.ft. unit at Franklin Mills in Philadelphia, PA; a 4,000 sq.ft. unit at Fair City Mall in Fairfax, VA; a 3,623 sq.ft. unit at North Riverside Park Mall in North Riverside, IL; a 4,198 sq.ft. store at LeMoyne Building in Chicago, IL; a 3,300 sq.ft. store at Westland Mall in Columbus, OH and a 4,397 sq.ft. store at R.B. Ross Plaza Shopping Center in Silverdale, WA.

 

Goldschmidt & Associates (914-723-1616) has been named the exclusive leasing agent for Chester Mall Shopping Center in Chester, NY.  The 192,000 sq.ft. project is anchored by ShopRite, Ames, Rite-Aid and Radio Shack.  Spaces from 1,800 sq.ft. to 4,500 sq.ft. are available for lease.  The company has been named the exclusive leasing agent for a 38,000 sq.ft. Yellow Furniture Barn Building in Armonk, NY.

 

Sevell*Duncan Realty Services, Inc. (561-995-0100) exclusively represents Payless Shoe in its real estate dispositions throughout FL.  A 5,145 sq.ft. store in Bradenton, a 3,000 sq.ft. store in Panama City and 3,060 sq.ft. store in Tampa are available for sublease.  The company exclusively represents Eckerd Drug in its real estate dispositions throughout FL.  Stores ranging in size from 6,747 sq.ft. to 11,150 sq.ft. are available for sublease in Alachua, Altamonte Springs, Bradenton, Cocoa Beach, Coral Gables, Coral Springs, Eustis, Ft. Lauderdale, Ft. Myers, Hialeah, Hollywood, Jacksonville, Lady Lake, Lantana, Largo, Melbourne, Merritt Island, Miami, Mt. Dora, North Miami, New Port Richey, Ocala, Oldsmar, Oneco, Orlando, Palmetto, Punta Gorda, St. Augustine, St. Petersburgh Beach, St. Petersburgh and Tampa.  The company also exclusively represents Winn-Dixie in its real estate dispositions throughout FL.  Stores ranging in size from 25,600 sq.ft. to 73,890 sq.ft. are available for sublease in Boca Raton, Crystal River, Davie, Delray Beach, Hudson, Indian Harbor, Juno Beach, Jupiter, Kissimmee, Longwood, South Maimi, Miramar, New Smyrna Beach, Orlando (2), Sanford, Sebastian, Spring Hill, St. Petersburg, Sun City, Sunrise, Tampa, Venice, West Palm Beach and Winter Haven.

 

 

Lease Signings

 

Bennett Williams Realty, Inc. (717-843-5555) leased 4,500 sq.ft. to Blinds To Go in York, PA; 4,500 sq.ft. to Blinds To Go in Reading, PA; 8,000 sq.ft. to Pier One Imports in Reading, PA; space to Pier One Imports in Allentown, PA; space to Pier One Imports in Novi, MI; space to Pier One Imports in State College, PA; space to Pier One Imports in Knoxville, TN; space to Pier One Imports in Tampa, FL; space to Pep Boys in Wilkes-Barre, PA; space to Pep Boys in Williamsport, PA; 12,000 sq.ft. to Talbots Outlet at Scotts Plaza in Timonium, MD; 4,400 sq.ft. to Talbots in Myrtle Beach, SC and 4,200 sq.ft. to Talbots in Reading, PA.

 

Madison Marquette (760-862-1990) leased 11,245 sq.ft. to Tommy Bahama at The Gardens on El Paseo in Palm Desert, CA.

 

United Commercial Realty (214-526-6262) leased 6,500 sq.ft. to Corner Bakery at Grapevine Mills Mall in Grapevine, TX; 4,091 sq.ft. to Corner Bakery at Preston Center Shopping Center in Dallas, TX; 1,600 sq.ft. to Sushi Restaurant at Cloister Square in Plano, TX; 7,500 sq.ft. to Hollywood Video at Towne North Shopping Center in Irving, TX; space to Blockbuster Video in Colleyville, TX; 1,600 sq.ft. to Glade Veterinarian Center and 3,010 sq.ft. to Razzmatazz at Glade Point Shopping Center in Colleyville, TX; 1,295 sq.ft. to Papa John's Pizza at Woodland West Marketplace in Arlington, TX; 3,500 sq.ft. to Pizza Inn in Mesquite, TX; 3,498 sq.ft. to Anasazi Gallery in Dallas, TX; 1,375 sq.ft. to Merle Norman at Townsend Square Shopping Center in DeSoto, TX; 3,940 sq.ft. to Martinez Cafe at Park Pavilion in Plano, TX; space to Blockbuster Video at Burleson Town Center in Burleson, TX and 4,000 sq.ft. to Brothers Pizza in Dallas, TX.

 

Paragano Associates (973-376-1010) leased 1,200 sq.ft. to Colonial Camera, 1,600 sq.ft. to Village Cafe & Bagel and 1,600 sq.ft. to Sports Corner Collectibles at The Village Shopping Center in New Providence, NJ.

 

Hiffman Shaffer Associates, Inc. (312-332-3555) leased 19,000 sq.ft. to India House at Weathersfield Commons in Schaumburg, IL; 13,000 sq.ft. to Card & Party Outlet at Wing Park Shopping Center in Elgin, IL; 2,000 sq.ft. to Jordan Temple Book Center at McHenry Commons in McHenry, IL; 1,000 sq.ft. to Fantastic Sam's and 2,550 sq.ft. to Nicole's Hallmark at Liberty Square in Wauconda, IL and 14,000 sq.ft. to Walgreens at South Loop Marketplace in Chicago, IL.

 

Metro Commercial Real Estate, Inc. (609-866-1900) leased 20,000 sq.ft. to Michael's Arts & Crafts at Valley Forge Shopping Center in King of Prussia, PA; 12,500 sq.ft. to Rite Aid in Philadelphia, PA; 9,998 sq.ft. to Pier One Imports at Festival at Hamilton in Mays Landing, NJ and 5,396 sq.ft. to Applebee's at Wrangleboro Consumer Square in Hamilton Township, NJ.

 

Cedarbrook Plaza, Inc. (212-643-8080) leased 40,000 sq.ft. to Philadelphia Surplus and 7,500 sq.ft. to Hollywood Video at Cedarbrook Plaza in Wyncote, PA.

 

Clifpass Development, Inc. (212-643-8080) leased 7,500 sq.ft. to Chinese Food Buffet Restaurant adjacent to Pathmark Super Center in Clifton, NJ.

 

 

Lead Sheet

 

Etienne Aigner

Bruce Trattler

47 Brunswick Avenue

Edison, NJ 08818

732-248-9200, Fax 287-6225

 

Accessories

The 65-unit chain operates locations nationwide.  The women's accessories stores occupy spaces of 1,400 sq.ft. to 4,460 sq.ft. in outlet and power centers.  Preferred anchors include Jones New York and Nordstrom.  Plans call for 12 openings in the coming 18 months.  Expansion will take place nationwide.  Leases running five years are typical and the company cites Nine West and Coach as competition.

 

Jack Furrier's Western Tire Center

John Furrier

3545 South Richey Boulevard

Tucson, AZ 85713-5432

520-748-1700, Fax 790-1136

 

Automotive

The 18-unit chain operates locations in AZ and NM.  The automotive service centers occupy spaces of 5,000 sq.ft. to 10,000 sq.ft. in freestanding facilities and strip centers.  Plans call for two openings in the coming 18 months.  Expansion will take place in NV.  The company prefers to purchase its locations.

 

Anna's Linens

Alan Gladstone

3710 South Susan, Suite 150

Santa Ana, CA 92704

714-850-0504, Fax 850-9170

 

Bed/Bath/Linens

The 34-unit chain operates locations in CA.  The stores, selling domestics, occupy spaces of 5,000 sq.ft. to 6,000 sq.ft. in power centers and regional malls.  Plans call for 12 openings in the coming 18 months.  Expansion will take place in AZ, NV and WA.  Preferred demographics include a population of 200,000 within three miles earning $40,000 as the average income.  Leases running five to ten years are typical.  The company cites Mervyn's and Target as competition.

 

Cards for Less

Stuart Kramer

c/o First Development Corp.

1328 Motor Parkway

Hauppauge, NY 11788

516-234-3200, Fax 234-3695

 

Cards & Gifts

The five-unit chain operates locations in CT, NJ and NY.  The card and gift stores occupy spaces of 2,200 sq.ft. in strip centers.  Preferred anchors include supermarkets.  Plans call for six openings in the coming 18 months.  Expansion will take place in CT and NY.  Preferred demographics include a population of 100,000 within three miles earning $60,000 as the average income.  Leases running 10 years are typical.

 

CFM Marketing Systems, Inc.

dba Convenient Food Mart

William Ashley

299 North 115th Street

Omaha, NE 68154-2526

402-330-5511, Fax 330-4413

 

Convenience Store

The 13-unit chain operates locations in IA and NE.  The convenience stores occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in freestanding facilities.  Plans call for one opening in the coming 18 months.  Expansion will take place within the existing markets.  The company is franchising.

 

McAuley Pharmacy, Inc.

dba McAuley Pharmacy

Raymond Grzegorczyk

3075 Clark Road, Suite 108

Ypsllanti, MI 48197

734-712-4011, Fax 712-3848

 

Drug Store

The eight-unit chain operates locations in MI.  The drug stores occupy spaces in specialty and strip centers.  Plans call for two openings in the coming 18 months.  Expansion will take place in the existing market.  Preferred demographics include a population of 10,000 within three miles earning at least $30,000 as the average income.  Leases running five to 15 years are typical.

 

Malibu Entertainment Worldwide

dba Malibu Grand Prix

Gene Eisenberg

2060 Henderson Heights Trail

Alpharetta, GA 30004-2753

770-410-1216

 

Entertainment

The 27-unit chain operates locations nationwide.  The concept, which features a miniature race car track, occupies eight acres of land at regional malls, power and specialty centers.  Preferred co-tenants include movie theaters and restaurants.  Plans call for six openings in the coming 18 months.  Expansion will take place in CA, NE and TX.  Preferred demographics include a population of one million within 10 miles earning $50,000 as the average income.  Leases running 30 years are typical.

 

Dollar Discount of America, Inc.

dba Dollar Discount

Michael Insel

1362 Naamans Creek Road

Boothwyn, PA 19061

610-497-1991, Fax 485-6439

 

General Merchandise

The 86-unit chain operates locations in CA, CT, DE, FL, GA, MD, MI, NJ, NC, OH, PA, UT, VA, VT, WI, WV and Washington, D.C.  The dollar stores occupy spaces of 2,000 sq.ft. to 3,500 sq.ft. in strip centers.  Preferred anchors include supermarkets.  Plans call for as many as 80 openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include a population of 50,000 within three miles earning $30,000 to $40,000 as the average income.  Leases running five years, with options, are typical and the company, which is franchising, prefers a vanilla shell.  The company cites Dollar Tree as competition.

 

Sports Clips, Inc.

dba Sport Clips

Gordon Logan

PO Box 3000-266

Georgetown, TX 78627

512-869-1201, Fax 869-0366

 

Hair Salon

The 16-unit chain operates locations in NY and TX.  The hair salons, which have a sports theme and cater to men and boys, occupy spaces of 1,200 sq.ft. to 1,500 sq.ft. in power and strip centers.  Preferred anchors include Best Buy, Target, Wal*Mart and supermarkets.  Plans call for 25 openings in the coming 18 months.  Expansion will take place in TX and the Southwestern region.  Preferred demographics include a population of 50,000 within three miles earning $40,000 as the average income.  Leases running five years, with options, are typical and the company, which is franchising, cites SuperCuts as competition.

 

Hobby Lobby Stores

dba Hobby Lobby Creative Centers

Bill Darrow

7707 S.W. 44th Street

Oklahoma City, OK 73179

405-745-1100, Fax 745-1635

 

Hobby

The 161-unit chain operates locations in AL, AR, CO, IA, IL, IN, KS, MO, MS, NE, NM, OK, TN and TX.  The hobby stores, which also sell arts and crafts supplies, occupy spaces of 45,000 sq.ft. to 55,000 sq.ft. in freestanding facilities, power and strip centers.  Preferred co-anchors include Kmart, Wal*Mart and supermarkets.  Plans call for 30 openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 150,000 within five miles earning $35,000 as the average income.  Leases running 10 years are typical and the company cites Garden Ridge and Michaels as competition.

 

Alrenco, Inc.

dba Alrenco

Richard Meyers

1736 East Main Street

New Albany, IN 47150

812-949-3370, Fax 948-2579

 

Home Furnishings

The 164-unit chain operates locations in AL, AZ, FL, IN, KY, LA, MD, MS, OH, TN, VA and WV.  The stores, offering home furnishings on a rent-to-own basis, occupy spaces of 3,000 sq.ft. to 3,500 sq.ft. in strip centers.  Preferred anchors include Kmart, TJ Maxx, Wal*Mart and supermarkets.  Plans call for as many as 60 openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 50,000 within five miles earning $24,000 as the average income.  Leases running five years are typical and the company, which prefers a vanilla shell, cites Rent-A-Center and Renter's Choice as competition.

 

The Home Depot Canada

dba The Home Depot

Stephen Kauffman

426 Ellesmere Road

Scarborough, ON M1R 4E7

416-609-0852, Fax 609-1970

 

Home Improvement