The Dealmakers Issue Number 16 for the week of May 8, 1998.

 

Home Furnishing Retailers Expanding Nationwide

 

R.H. Kuhn Company, Inc. trades as Freight Liquidators Furniture at 12 locations in OH, PA and WV.  The furniture stores occupy spaces of 25,000 sq.ft. to 30,000 sq.ft. in freestanding facilities, regional malls, power and strip centers.  Preferred co-tenants include Kmart, Wal*Mart and supermarkets.  Plans call for two openings in the coming 18 months.  Expansion will take place within the existing markets.  Preferred demographics include a population of 100,000 within five miles earning $30,000 as the average income.  Leases running at least five years are typical and the company cites Value City Furniture as competition.

  For more information, contact Michael Kuhn, R.H. Kuhn Company, Inc., 923 Bidwell Street, Pittsburgh, PA 15233; 412-323-1300, Fax 323-2016.

 

Carolina Bedrooms, Inc. trades as Carolina Bedrooms at seven locations in GA, NC and SC.  The stores, selling bedroom furniture, occupy spaces of 4,500 sq.ft. in freestanding facilities and strip centers.  Preferred anchors include Wal*Mart.  Plans call for two openings in the coming 18 months.  Expansion will take place in NC and SC.  Preferred demographics include a population of 100,000 within 10 miles earning $35,000 as the average income.  Leases running five years are typical.

  For more information, contact James Floyd, Carolina Bedrooms, Inc., 5005 Smith Farm Road, Matthews, NC 28105-8134; 704-821-2000, Fax 821-3544.

 

Workbench, Inc. trades as Workbench as 35 locations in CT, IL, MA, MI, NE, NJ, NY, OH and PA.  The stores, selling contemporary furniture, occupy spaces of 5,000 sq.ft. to 10,000 sq.ft. in downtown store fronts, freestanding facilities, specialty and strip centers.  Plans call for five openings in the coming 18 months.  Expansion will take place within the existing markets.

  For more information, contact Bernice Wollman, Workbench, Inc., 180 Pulaski Street, Bayonne, NJ 07002; 201-435-7800, Fax 435-9689.

 

Exline North America trades as Colortyme at 428 locations nationwide.  The stores, offering furniture, appliances and electronics on a rent-to-own basis, occupy spaces of 3,000 sq.ft. to 3,500 sq.ft. in strip centers.  Preferred anchors include Wal*Mart and supermarkets.  Plans call for 50 openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include a population of 70,000 within three miles earning $25,000 as the average income.  Leases running three to five years are typical and the company cites Rent-A-Center as competition.

  For more information, contact Chris Exline, Exline North America, 1201 Main Street, Suite 825, Dallas, TX 75202; 214-741-7000, Fax 741-3700.

 

 

Who's Opening & Where

 

Circuit City Stores (804-527-4000) recently opened a CarMax Used Car Superstore in Tinley Park, IL.

 

Quick Chek Foodstores, Inc. (908-534-2200) recently opened a 4,900 sq.ft. convenience store in Flemington, NJ.  The company, which operates 102 stores throughout NJ, is planning to open as many as eight stores annually.

 

Jeepers!, Inc. (617-890-1800) recently opened a 25,000 sq.ft. family entertainment center at Glen Burnie Mall in Glen Burnie, MD.

 

Friendly's (413-543-2400) plans to open a restaurant in Myrtle Beach, SC during Summer.  It will be the company's first unit in the state.

 

General Cinema Theatres (617-264-8000) plans to open a 67,000 sq.ft. 16-screen movie theater at Citadel Mall in Charleston, SC during 1999.  The theatre will replace an existing six screen theatre presently operated by General Cinema at the mall.

 

Menard, Inc. (715-876-2207) plans to develop a 160,000 sq.ft. store at Lake Country Pavilion Shopping Center in Pewaukee, WI.

 

SuperValu Foods (612-828-4441) plans to develop a 35,000 sq.ft. supermarket in New London, WI.

 

Gateway 2000, Inc. (605-232-2000) recently opened an 8,000 sq.ft. computer store in Pittsburgh, PA.

 

Hollywood Entertainment Corp. (503-570-1600) recently opened a store in Mesquite, TX.  The store was the chain's 1,000th unit.  The company plans to open at least 300 additional stores this year.

 

Host Marriott Services Corp. (301-380-7903) recently reached an agreement with Chelsea GCA Realty, Inc. to master lease the food and beverage facilities at the soon to be built Leesburg Corner Premium Outlets in Leesburg, VA.  Host Marriott Services will be responsible for master leasing and operating a 13,000 sq.ft. food court with seating for 500.  The project is expected to open during Fall.

 

Office Depot, Inc. (561-265-4258) plans to open a 28,000 sq.ft. store in Cedar Rapids, IA during early 1999.

 

Wal*Mart Stores, Inc. (501-273-4000) is planning to convert its 120,000 sq.ft. discount store at Southridge Centre in Charleston, WV into a SuperCenter.  The company is also planning to develop a 180,000 sq.ft. SuperCenter in Ocean Springs, MS.

 

Kittle's Home Furnishings (317-849-5300) plans to open a 17,600 sq.ft. Ethan Allen furniture store at Clearwater Springs Shopping Center in Indianapolis, IN.

 

McDonald's Corp. (630-623-3797) plans to invest $1.5 billion to open more than 2,000 restaurants throughout Asia and the Pacific Rim in the coming three years.

 

Hudson's Grill of America, Inc. (972-931-9237) plans to open a Hudson's Grill restaurant in Marquette, MI.

 

Round Table Pizza (510-274-1700) plans to open 20 new restaurants in the Las Vegas, NV market by the year 2000.

 

Blockbuster International (214-854-3190) recently signed a joint-venture agreement with Gemini Holdings to develop 65 stores in Poland in the coming five years.  The first store is expected to open later this year in Warsaw.

 

Koo Koo Roo, Inc. (310-479-2080) recently signed a license agreement with a group of restaurant operators and investors to license its concept in England.  A minimum of 10 restaurants are planned in the coming five years.

 

Weis Markets (717-286-3636) plans to invest $127 million in the coming 18 months for the development of seven new supermarkets, the expansion of 11 others and the remodeling of 13 others.  The company currently operates 154 stores in MD, NJ, NY, PA, VA and WV.

 

Quality Food Centers, Inc. (206-455-3761) plans to open a 38,000 sq.ft. supermarket in Renton, WA during October and a 41,000 sq.ft. store in Vancouver, WA by the end of the year.

 

Chief Auto Parts (562-921-2696) plans to open 70 auto parts stores this year.  The company currently operates 552 stores in Southern CA and TX.

 

Bojangles, Inc. (704-527-2675) plans to open as many as 45 restaurants in NC and SC by the end of the year.

 

Home Depot (770-433-8211) recently opened a 148,000 sq.ft. store in Anchorage, AK.  The company also recently shifted the hours at its store on West North Avenue in Chicago, IL to 24 hours.  The store is the first in the Midwest Division to be open 24 hours a day.

 

Polo Ralph Lauren (212-318-7688) recently opened a 2,100 sq.ft. store at Al Fanar Center in Salmiyah, Kuwait; a 3,500 sq.ft. store at Burjuman Center in Dubai and a 4,500 sq.ft. store in Saudia Arabia.

 

Jersey Mike's Franchise Systems, Inc. (732-528-7676) recently opened a restaurant at North Gate Mall in Durham, NC; a unit at Newport Plaza in Newport, KY; a unit in Mishawaka, IN and a unit at Northwood Square Shopping Plaza in Rock Hill, SC.  The company also recently signed a 10-unit agreement with Superior Sub Systems to open locations in NC and SC.

 

Eckerd Drug Stores (813-399-6355) plans to open an 11,200 sq.ft. store in Jacksonville, FL during September 1998 and an 11,200 sq.ft. store in Vero Beach, FL.

 

Borders, Inc. (313-913-1323) plans to open a store at Augusta Exchange Center in Augusta, GA late this year and a 24,500 sq.ft. store at Sanbusco Market Center in downtown Santa Fe, NM during Fall.  The company also recently opened a 27,000 sq.ft. store in Fairview Heights, IL.

 

Book Market (423-558-8187) recently opened a temporary store at a former Michael's store at National Hills Shopping Center in Augusta, GA.

 

Hooters (770-951-2040) recently opened a 3,800 sq.ft. restaurant at Paradise Forum in Birmingham, England.  It is the company's first unit in England.  The company plans to open as many as 15 restaurant in England in the coming five years.

 

 

New Construction

 

Chelsea GCA Realty recently completed a 125,000 sq.ft., 40 store addition to Wrentham Village Premium Outlets in Wrentham, MA.  Leases have been signed with Liz Claiborne, Sony, Nautica, Fossil, Tse, J. Peterman Factory Store and Rockport.  Negotiations on ongoing with Disney and Hugo Boss.  The company expects that most of the new stores will be open by the of the month.  The 225,000 sq.ft. Phase I opened last November and a third phase, which will add 50 stores, is planned.  The total project is estimated at $76 million.

  For more information, contact Chelsea GCA Realty at (973-228-6111).

 

CBL & Associates Properties, Inc. is expanding Girvin Plaza in Jacksonville, FL.  The expansion will add nine stores and increase the size of the Winn-Dixie Supermarket to more than 45,000 sq.ft.  When completed, the center's GLA will exceed 80,000 sq.ft.  Stores being added include CiCi's Pizza, World of Video, Beaches Gourmet Ice Cream, Hair Cuttery, a nail salon and a Chinese restaurant.  The work is expected to be completed by the end of this month.

  For details, contact Ben Byrne of CBL & Associates Properties, Inc. at (800-333-7310).

 

R.E.D. Capital Development plans to break ground this month on SouthPointe Pavilions in Lincoln, NE.  The 450,000 sq.ft. project will be anchored by Von Maur and Ben Simon's.  Other retailers at the center will include Gap, GapKids, Old Navy, Bed Bath & Beyond, Abercrombie & Fitch, Bath & Body Works, Victoria's Secret, Barnes & Noble, Chili's Grill & Bar and a six screen Douglas Theatres.  In addition, the project will include an office complex.

  For more information, contact Mike Ebert of R.E.D. Capital Development at (602-947-7772).

 

Pacific Retail Trust recently acquired 10.4 acres of land in Hawthorne, CA for $5.8 million.  The company plans to develop a 103,500 sq.ft. supermarket and drugstore anchored project on the site beginning this month.  The project is expected to be completed during the second half of 1999.  The site is located at the corner portion of Hawthorne Plaza.

  For more information, contact Pacific Retail Trust at (510-935-5900).

 

Prime Retail recently completed construction and opened The Outlet Village of Lebanon in Lebanon, TN.  The 208,000 sq.ft. first phase features 50 designer and specialty outlet stores representing men's, women's and children's apparel; housewares; electronics; gifts; shoes and accessories.  The project is designed in an outdoor "village-style," with rows of shops along parallel "shopping streets" divided by landscaped courtyards.  A children's playground and an enclosed food court are also included.  At complete build-out over two additional phases, the project is expected to encompass 400,000 sq.ft. and include more than 100 stores.

  For more information, contact Prime Retail at (410-234-1755).

 

 

Mergers & Acquisitions

 

Thorn PLC (316-636-7368) plans to sell its 1,400-unit chain of rent-to-own stores.  The company trades as Rent-A-Center, REMCO and U Can Rent.  The company announced last November that it was reviewing the possibility of selling the stores and after posting a 1.5% drop in revenues and a 26% decrease in profits, the company decided to sell the chains.

 

Richfood Holdings, Inc. (804-915-6003) recently signed a definitive merger agreement to acquire all of the outstanding common stock of Dart Group for approximately $207 million.  Following the transaction, Dart will become a wholly-owned subsidiary of Richfood.  Dart Group operates 37 Shoppers Food Warehouse stores; Trak Auto; Crown Books and Total Beverage.  Richfood plans to divest Dart's non-core assets, including its ownership of Trak Auto, Crown Books and Total Beverage, as soon as possible after completing the acquisition.  Richfood is the largest wholesale food distributor in the Mid-Atlantic region and Shoppers Food Warehouse is its second largest wholesale customer.  Richfood also operates 45 Farm Fresh supermarkets in VA and 15 Metro supermarkets in MD.

 

Staples, Inc. (508-370-8500) recently announced a definitive agreement to acquire Quill Corporation for approximately $685 million.  Quill is a privately held company which sells office supplies to businesses via a mail order catalog, the internet and outbound telemarketing.  The company recorded $550 million in sales during 1997.  Staples plans to operate Quill under its present name and in its present manner.

 

Stage Stores, Inc. (713-669-2672) recently signed a definitive agreement to acquire 15 store leases and other assets from Tri-North Department Stores.  Tri-North trades as Hub Clothing Stores and has locations in MT, NV, OR and WA.  Tri-North will continue to operate its Bon Marche store in Ketchikan, AK.  Stage currently operates 607 stores in 24 states.

 

RD Capital (212-421-8830) recently agreed to merge with Mark Centers Trust.  At the same time, RD will make a $100 million cash investment in the company and change its name to Acadia Realty Trust.

 

Cineplex Odeon Corp. (416-323-6600) and Loews Theater Exhibition Group (212-833-6160) recently had their proposed merger approved by the Justice Department after the two companies agreed to sell 25 theaters with 85 screens in the Chicago, IL and New York, NY markets.  The selling of theaters was required by the government because the companies would have dominated the two markets which may have made, in the government's eyes, a bad situation for theater-goers.  The deal is expected to close this month and the combined company will operate 425 theaters with 2,700 screens in the U.S. and Canada.

 

Tandycrafts, Inc. (817-551-9600) recently reached an agreement to sell its 56-unit Joshua's Christian Stores bookstore chain to Family Christian Stores, the nation's largest Christian retailer with 210 stores in 34 states.  Tandycrafts decided to sell the Joshua's chain as part of its effort to focus on its more profitable operations.  The deal is expected to close at the end of this month.

 

 

Lease Signings

 

CB Commercial Real Estate Group (847-706-4925) leased 25,056 sq.ft. to Bally Total Fitness at Scharrington Square Shopping Center in Schaumburg, IL.

 

Gold & Company, Inc./New America International (412-471-4455) leased 8,000 sq.ft. to Dollar General in Cannonsburg, PA; 8,000 sq.ft. to Dollar General in Wilmerding, PA; 18,000 sq.ft. to Little Giant World of Catering at South Baldwin Plaza in Baldwin Borough, PA and 6,000 sq.ft. to Mailboxes, Etc. at Village Square in Bethel Park, PA.

 

CBL & Associates Properties, Inc. (423-855-0001) leased 15,000 sq.ft. to Old Navy Clothing Co. at Bonita Lakes Crossing in Meridian, MS.

 

CB Commercial Real Estate Group (847-948-5510) leased 9,390 sq.ft. to Evanston Northwestern at The Shoppes of Deerfield in Deerfield, IL; 7,440 sq.ft. to Dollar General at Georgetown Square in Wood Dale, IL; 7,200 sq.ft. to Hollywood Video at Oak Lawn Town Center in Oak Lawn, IL; 5,300 sq.ft. to Casa Aztec Restaurant at Villa DuPage in Villa Park, IL; 4,000 sq.ft. to Lane Bryant at Fashion Square in Skokie, IL and 3,980 sq.ft. to Remco America at Washington Square in Bellwood, IL.

 

The Retail Group (202-775-7624) leased 6,000 sq.ft. to BCBG Max Azria and 13,000 sq.ft. to Restoration Hardware in the Georgetown section of Washington, D.C.

 

Adams-Nelson & Associates, Inc. (540-667-2424) leased 2,800 sq.ft. to Cotrell-Mangum Music in Winchester, VA and 55,793 sq.ft. to Food Lion at a former Kroger space at Pleasant Valley Market Place Shopping Center in Winchester, VA.

 

Colliers Lanard & Axilbund (215-925-4600) leased space to SuperCuts in Cherry Hill, NJ and Philadelphia, North Wales, Wynnewood and Jenkintown, PA.

 

Mid-Atlantic Realty Trust (410-684-2000) leased 60,000 sq.ft. to Metro Food Market at Lutherville Station Shopping Center in Lutherville, MD.

 

Boyd, Page & Associates (713-877-8400) leased 14,414 sq.ft. to The Candle Warehouse at Orange Grove Shopping Center in Houston, TX.

 

 

Sources of Financing

 

Aries Capital (312-642-0100) recently funded a $4.75 million loan for two single tenant buildings in Orlando, FL.  Daiwa Securities America, Inc. was the investor.  Collectively, the two freestanding buildings encompass 45,500 sq.ft. and are situated on 2.5 acres.  The buildings are occupied by Bargain World and Sports Dominator who both have 20 year, triple net leases.

 

Strouds, Inc. (626-912-2866) recently entered into an agreement with The CIT Group/Business Credit, Inc. providing a new $50 million secured revolving credit facility over the next three years.  This facility replaces an existing $40 million credit facility provided by Stroud's previous lender.

 

The Ackman-Ziff Real Estate Group LLC (212-697-3333) recently arranged a permanent first mortgage loan of $59 million with a pension fund for Ridgeway Shopping Center in Stamford, CT on behalf of Stamford Ridgeway Associates LP.  The property was renovated at a cost of over $60 million by its owners.  The developer was a joint venture between Stamford Ridgeway Associates, Cappelli Enterprises and DKH, Inc.  The 358,000 sq.ft. project is anchored by Stop & Shop, Marshall's, Bed Bath & Beyond and Staples.  Other tenants at the site include CVS, The Gap, Coconuts, Fayva, Parade of Shoes, Noodle Kidoodle, Casual Male, Innovational Luggage, Athlete's Foot and Gingiss Formal Wear.

 

Cohen Financial (312-346-5680) recently provided $10.35 million for Wauconda Crossings in Wauconda, IL and $7.5 million for a new retail project in Oak Park, IL.  The 90,000 sq.ft. Wauconda Crossing is anchored by Dominick's Finer Foods and Walgreens.  The 44,000 sq.ft. new shopping center is anchored by Pier 1 Imports, Old Navy, TGI Friday's and The Gap.

 

Edward T. Byrd & Company (407-426-8868) recently arranged permanent financing of $7.66 million with Morgan Stanley Mortgage Capital for Lake Frederica Publix Center in Lake Frederica, FL.  The 201,085 sq.ft. project is anchored by Publix Supermarket, Radio Shack, Payless Shoes, Petland, Mail Boxes Etc. and Hallmark Cards.

 

David Cronheim Mortgage Corporation (973-635-6800) recently arranged a first mortgage in the amount of $67.2 million for 11 neighborhood shopping centers located in CO, KS, MO and MD.  All but one of the shopping centers are anchored by King Soopers or another subsidiary of Kroger Supermarkets.  Other tenants at the properties include Rite-Aid, GSA and Ace Hardware.  The company also recently arranged a first mortgage of $2.6 million for Sequams Colony Shopping Center in West Islip, NY.  The loan was placed with SunAmerica Life Insurance Company.  The 21,484 sq.ft. project, owned by Kabro Associates, is anchored by CVS.

 

HSA/Wexford Bancgroup (312-332-3555) recently placed $4.2 million in purchase financing for Kedzie Plaza Shopping Center in Chicago, IL.  The 51,765 sq.ft. project is anchored by Kentucky Fried Chicken, Mount Sinai Hospital, Fashion Bug, Payless Shoes and Rent-A-Center.

 

 

Buyers & Sellers

 

Joseph C. Leonardo & Co. has the listing to sell Mililani Shopping Center in Oahu, HI.  The 179,781 sq.ft. project, which has a 98% occupancy rate, is anchored by a grocery store, a drug store, a fast food restaurant and a bank.  The asking price of $33 million is based on an 8.164% cap rate.

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

 

The Vanguard Co. has the listing to sell a 73,500 sq.ft. former Payless Cashways Building in San Angelo, TX.  The asking price is $2.9 million.

  For more information, contact Chris Marchbanks at (512-457-8820), Fax (476-1798), e-mail (thevanco@aol.com.).

 

Capital Real Estate Advisors has the listing to sell a 24,000 sq.ft. freestanding Walgreens in Oakland, CA.  The asking price is $3.6 million and a $2 million loan is assumable.  The company also represents investors in the market to acquire NNN single tenant properties in the $1 million to $20 million price range.

  For more information, contact Ed Marek at (310-231-1270), Fax (478-0443).

 

DLC Management Corp. recently acquired Takoma-Langley Crossroads Center in Langley Park, MD from Blake Construction for $12.3 million.  DLC then leased a 17,700 sq.ft. space to Aldi's Supermarket at the 124,000 sq.ft. project.

  For more information, contact Daniel Taub at (914-631-3131), e-mail (dmt@dlc.com).

 

Hiffman Shaffer Associates, Inc. has the listing to sell Harlem Pershing Plaza in Lyons, IL.  The 14,000 sq.ft. project has an asking price of $2.1 million.  The company has the listing to sell Brighton Theater in Chicago, IL.  The 10,000 sq.ft. building has an asking price of $450,000.  The company has the listing to sell Laflin/95th Plaza in Chicago, IL.  The 5,000 sq.ft., three-tenant strip center has an asking price of $275,000.  The company has the listing to sell Pulaski Plaza in Midlothian, IL.  The 3,750 sq.ft., two-tenant project has an asking price of $230,000.  The company also has the listing to sell a 2,680 sq.ft. former restaurant in Melrose Park, IL.  The asking price is $495,000.

  For more information, contact Robert Swierbut at (312-458-4400).

 

Pliskin Realty & Development has the listing to sell Lake Grove Plaza in Lake Grove, NY.  The 20,000 sq.ft. project is anchored by Ethan Allen Furniture and General Vision Centers.  The asking price is $2.5 million.  The company is in the market to acquire single tenant buildings, triple net deals, strip centers and regional shopping centers nationwide.  Preferred projects should have GLAs less than 300,000 sq.ft. and be priced less than $20 million.

  For more information, contact Marvin Hartman at (516-997-0100), Fax (997-7225).

 

The Pyramid Companies is selling its portfolio of 31 shopping centers representing 45 million sq.ft. of space.  The projects are located primarily in the Northeastern region.

  For more information, contact Walter Montgomery at (212-484-6721).

 

The Mulkey Corporation has the listing to sell Eastshore Plaza in Brandon, FL.  The 25,000 sq.ft. project is anchored by Goodyear.  The asking price is $1.725 million and financing is available.

  For more information, contact T. Dan Mulkey at (813-888-9841), Fax (886-2792).

 

James E. Hanson, Inc. represents an investor in the market to acquire Kmart and similar stores having short lease terms with low rents.  Preferred projects should be well-located.  All cash deals, with a quick closing, are possible.

  For more information, contact Peter Kellner at (201-488-5800), Fax (488-0246).

 

Signature Associates represents an investor in the market to acquire shopping centers having GLAs between 50,000 sq.ft. to 150,000 sq.ft. throughout MI.

  For more information, contact Jeffrey Higgins at (248-799-3171), Fax (948-4198).

 

Lamar Companies recently acquired Seminole Mall in Seminole, FL.  The 424,358 sq.ft. project is anchored by Kmart, Upton's, Stein Mart, Publix, AMC 8-Plex and Eckerd.  The sale also included an adjacent 31,775 sq.ft. office building.

  For more information, contact Jeffrey James at (800-526-0762).

 

 

Closings

 

Advantica Restaurant Group (864-597-8000) plans to close as many as 70 Quincy's Steakhouse restaurants nationwide by the middle of the year.  The stores being closed, which represent about one-third of the chain, are underperformers and are being closed to boost profits.

 

Breuners Home Furnishings (201-343-4300) plans to close its 120,000 sq.ft. furniture store in downtown Fresno, CA.

 

Sunbelt Nursery Group, Inc. (817-624-7253) plans close its 10 Wolfe Nursery stores in the Dallas-Ft. Worth, TX market and liquidate the remainders of its 60-store chain as well.  The company filed for Chapter 11 protection early last month, but recently converted that filing into a Chapter 7 liquidation.

 

Saks Fifth Avenue (212-753-4000) recently closed its Off 5th Saks Fifth Avenue outlet store at Gulfport Factory Shops in Gulfport, MS because the store was not meeting the company's sales expectations.

 

Sears (847-286-6254) plans to close its Homelife Furniture Store in Madison, WI this month.  The store was the first freestanding home store Sears developed when it started the concept in 1989.  However, the store is no longer economical to run because it is the lone store in the market.

 

Country General (308-389-2696) plans to close its stores in Amarillo, Dumas and Pampa, TX.

 

J.C. Penney Co. (214-431-1000) plans to close its 144,000 sq.ft. department store at Lloyd Center in Portland, OR because the store is losing money.  The company has operated the store at the mall since 1960.  The company also plans to close its store at Winward Mall in Kaneohe, HI later this year.  The company has operated the store since 1983.

 

Woolworth Corporation (212-553-2000) plans to close its 82 store Canadian Kinney Shoe chain.  The company plans to convert approximately 40 of the stores to its Foot Locker, Champs Sports and Northern specialty store formats.

 

 

Financial News

 

Lone Star Steakhouse & Saloon, Inc. (316-264-8899) reported that its first quarter net income fell 19.2% to $14.71 million from $18.2 million during the first quarter last year.  First quarter revenues increased 17.9% to $153.5 million from $130.2 million last year.  Comparable store sales fell five percent for the quarter.  During the quarter, the company opened two Lone Star restaurants and one Sullivan's Steakhouse.  Development plans for 1998 call for 60 domestic and eight international Lone Star units; as many as eight Sullivan's units and as many as four Del Frisco's Double Eagle Steak House units nationwide.  The company currently operates 268 domestic and 36 international Lone Star Steakhouse & Saloons; five Sullivan's Steakhouses and three Del Frisco units.

 

Bed Bath & Beyond (908-688-0888) reported that its fiscal 1997 net earning increased 32.9% to $73.1 million from $55 million the previous year.  Net sales for the year increased 29.6% to $1.06 billion from $823.1 million.  Comparable store sales for the year increased 6.4% for the year.  During the year, the company opened 33 stores and currently operates 146 units in 29 states.  The company plans to open 40 stores this year.

 

Best Buy Co., Inc. (612-947-2000) reported that is fiscal 1998 earnings were $94.4 million, up from $1.74 million during fiscal 1997.  Sales for the fiscal year increased eight percent to $8.358 billion from $7.771 billion and comparable store sales increased two percent for the year.  The company plans to open 25 stores this year and currently operates 285 units in 32 states.

 

Circuit City Stores, Inc. (804-527-4000) reported that its fiscal 1998 total sales increased 16% to $8.87 billion from $7.66 billion the previous year.  Net earnings fell to $104.3 million from $136.4 million the previous year.  In the Circuit City Group total sales for the fiscal year increased 12% to $8 billion from $7.15 billion the previous year with comparable store sales down one percent for the year.  Earning increased to $159.2 million from $153.6 million during FY97.  In the CarMax Group total sales  for the year increased to $874.2 million from $510.3 million the previous year.  Comparable store sales increased six percent.  A net loss of $34.2 million versus a net loss of $9.3 million in FY97 was also reported.  During fiscal 1998 Circuit City added 57 stores and CarMax opened 11 stores.  The company currently operates 500 Circuit City Stores and 19 CarMax locations nationwide.

 

The Good Guys! (415-615-5000) reported that its second quarter sales increased two percent to $209.1 million from $205.1 million during the second quarter last year.  Comparable store sales increased two percent for the quarter.  The company currently operates 76 consumer electronics stores in CA, NV, OR and WA.

 

National Record Mart, Inc. (412-276-6200) reported that its fiscal 1998 total sales increased 13.1% to $112.2 million compared to $99.2 million during FY97.  Comparable store sales increased 12.8% for the year.  During the year, the company opened 12 stores, closed 10 and currently operates 149 music stores.

 

Bradlees, Inc. (617-380-5863) recently filed its Plan of Reorganization with the bankruptcy court in which it states that the company plans to emerge from Chapter 11 during August.  The POR contains distributable value to creditors of approximately $145 million including: approximately $20 million of administrative claim payments; a $40 million note primarily payable to the company's pre-Chapter 11 bank group, which is anticipated to be settled through proceeds of sales of real estate assets and new Bradlee's stock with an estimated value of $70 million.  The existing Bradlee's stock will be canceled.  Additionally, the POR provides vendors who support Bradlees after emergence with a second lien on the company's inventory.  BankBoston and a group of lenders have committed to a three year, $250 million secured financing facility upon emergence from Chapter 11.  The company currently operates 103 discount stores in seven Northeastern states.

 

Office Depot, Inc. (561-265-4258) reported that total sales for its first quarter increased 12% to $1.981 billion from $1.772 billion during the first quarter last year.  Comparable store sales increased eight percent for the quarter.  The company also reported that its operating profit increased 27% to $97.8 million from $76.8 million and its net earnings increased 44% to $55.8 million from $38.8 million.  During the quarter, the company opened one store and closed one.  The company plans to open 80 stores this year, with a majority of the openings taking place during the second half of the year.  The company currently operates 612 stores nationwide.

 

 

Lead Sheet

 

Claire's Stores

dba Claire's Accessories, The Icing

Director of Real Estate

2400 West Central Road

Hoffman Estates, IL 60195

847-765-1100, Fax 765-4618

 

Accessories

The 1,700-unit chain operates locations throughout North America, Puerto Rico and the Virgin Islands.  The stores, selling women's accessories, occupy spaces of 650 sq.ft. to 1,400 sq.ft. in regional malls, outlet, power and strip centers.  Preferred co-tenants include apparel retailers geared toward teenage girls.  Plans call for 300 openings in the coming 18 months.  Expansion will take place nationwide.  Leases running 10 years are typical and the company cites Afterthoughts as competition.

 

Danice Stores, Inc.

dba Danice Store

Barry Group

482 Fulton Street

Brooklyn, NY 11201

718-875-0664, Fax 797-1895

e-mail Danice482@aol.com

 

Apparel

The 10-unit chain operates locations in NY.  The stores, selling ethnic apparel, occupy spaces of 5,000 sq.ft. in downtown store fronts, power and strip centers.  Preferred anchors include Kmart, TJ Maxx and Wal*Mart.  Plans call for as many as five openings in the coming 18 months.  Expansion will take place in the existing market.  Leases running 12 years are typical.

 

Association of Logos Book Stores

dba Logos Bookstores

Maureen Cole

1949 State Route 59, Suite 203

Kent, OH 44240

330-677-8086, Fax 677-8049

e-mail logosbook@aol.com

 

Books

The 34-unit chain operates locations in CA, CO, IL, IN, ME, MA, MI, NY, NC, OH, PA, TN, TX, VA and WA.  The stores, selling books, music, gifts and cards, occupy spaces of 1,600 sq.ft. to 3,500 sq.ft. in downtown store fronts, specialty and strip centers.  Preferred anchors include supermarkets.  Plans call for two openings in the coming 18 months.  Expansion will take place in TX and VA.  Preferred demographics include a population of 100,000 within 20 miles earning $50,000 as the average family income.

 

Guzzardo's, Inc.

dba Guzzardo's Hallmark

George Guzzardo

111 North Main Street

Kewanee, IL 61443-2221

309-852-5621, Fax 852-5622

home page: http://guzzardos-hallmark.com

 

Cards & Gifts

The six-unit chain operates locations in IL and IA.  The stores, selling Hallmark cards and gifts, occupy spaces of 3,000 sq.ft. in downtown store fronts and strip centers.  Preferred anchors include supermarkets.  Plans call for one opening in the coming 18 months.  Expansion will take place within the existing markets.  Preferred demographics include a population of 30,000 within 30 miles earning $30,000 as the average income.  Leases running five years are typical.

 

Merle Norman Cosmetics, Inc.

dba Merle Norman Cosmetic Studios

Carol LaPorta

9130 Bellanca Avenue

Los Angeles, CA 90045

310-641-3000, Fax 337-2370

 

Cosmetics

The 2,064-unit chain operates locations throughout North America.  The cosmetic stores occupy spaces of 400 sq.ft. to 600 sq.ft. in regional malls, power and strip centers.  Plans call for 100 openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include a population of 50,000 within five to ten miles earning $30,000 as the average income.  The company is franchising.

 

K's Merchandise Mart, Inc.

dba K's Merchandise Mart

Richard Powers

3103 North Charles Street

Decatur, IL 62526

217-875-1440, Fax 875-6884

 

Department Store

The 15-unit chain operates locations in IA, IL, IN and MO.  The department stores occupy spaces of 75,000 sq.ft. to 100,000 sq.ft. in freestanding facilities, power centers and regional malls.  Plans call for as many as three openings in the coming 18 months.  Expansion will take place within the existing markets.

 

Sumarc, Inc.

dba Now! AudioVideo

Richard Shachtman

510 Meadowland

Hillsborough, NC 27278

919-644-2344, Fax 644-1696

e-mail nowav@aol.com

 

Electronics

The five-unit chain operates locations in NC and TN.  The stores, selling audio, video and car audio products, occupy spaces of 12,000 sq.ft. in freestanding facilities.  Preferred co-tenants include Best Buy and Circuit City.  Plans call for as many as two openings in the coming 18 months.  Expansion will take place in NC.  Leases running five to ten years, with options, are typical.

 

United Skates of America, Inc.

dba WOW Family Fun Centers

Budd Eversman

1236 Demorest Road

Columbus, OH 43204

614-274-1820, Fax 274-1819

 

Entertainment

The 10-unit chain operates locations in FL, IL, IN, NJ, NY, OH and PA.  The family entertainment centers occupy spaces of 28,000 sq.ft. to 36,000 sq.ft. in freestanding facilities and strip centers.  Preferred anchors include Wal*Mart and supermarkets.  Plans call for one opening in the coming 18 months.  Expansion will take place in either the East Coast or Midwestern regions.  Preferred demographics include a population of 250,000 within five miles earning $50,000 as the average family income.  Leases running 10 years are typical.

 

Goodwill Industries of Greater NY

dba Goodwill Industries

Peter Potemkin

c/o Pliskin Realty & Development

179 Westbury Avenue

Carle Place, NY 11514

516-997-0100, Fax 997-7225

e-mail Peter43@ix.netcom.com

 

General Merchandise

The 28-unit chain operates locations in NJ and NY.  The general merchandise stores occupy spaces of 5,000 sq.ft. to 18,000 sq.ft. in freestanding facilities and strip centers.  Plans call for six openings in the coming 18 months.  Expansion will take place in the existing markets.  Leases running 10 years are typical.

 

Ortega's Indian Stores

Armand Ortega

PO Box 460

Sanders, AZ 86512

520-688-2787, Fax 688-2338

 

Gifts

The 12-unit chain operates locations in AZ, CA and NM.  The gift stores occupy spaces of 2,000 sq.ft. in freestanding facilities, outlet centers and regional malls.  Plans call for three openings in the coming 18 months.  Expansion will take place in AZ, CA, CO or NM.  Preferred demographics include a population of 75,000 within 20 miles earning $35,000 as the average income.

 

Renee Beauty Salons, Inc.

dba Outlooks For Hair

Daniel Coniglio

PO Box 600

Pottsville, PA 17901

717-429-1800, Fax 429-1143

 

Hair Salon

The 33-unit chain operates locations in MD, NJ, PA and WV.  The hair salons occupy spaces of 1,500 sq.ft. to 2,000 sq.ft. in regional malls.  Preferred anchors include Boscov's and J.C. Penney.  Plans call for six openings in the coming 18 months.  Expansion will take place in MD, NJ and PA.  Leases running 10 years are typical.

 

Rocky's Hardware

Rocco Falcone

40 Island Pond Road

Springfield, MA 01118

413-781-1650, Fax 731-5173

 

Home Improvement

The eight-unit chain operates locations in MA.  The hardware stores occupy spaces of 10,000 sq.ft. to 15,000 sq.ft. in freestanding facilities.  Plans call for as many as two openings in the coming 18 months.  Expansion will take place in CT and MA.  Preferred demographics include a population of 20,000 within one-half mile earning 50,000 as the average income.  Leases running 10 years are typical and the company cites Home Depot and Lowes as competition.

 

Aropi, Inc.

dba Rolling Pin Kitchen Emporium

Glenn Kaas

4264 Winter Chapel Road

Atlanta, GA 30360

770-4