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Issue Number 39
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The Dealmakers Issue Number 39 for the week October 26, 1998. Home Improvement Retailers Expanding Nationwide N. Siperstein Inc. trades as Siperstein’s at 17
locations in NJ. The stores, selling paints and wallcoverings, occupy spaces of 10,000
sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market. Sears, Roebuck & Co. trades as Orchard Supply Hardware,
Orchard Hardware and Sears Hardware in CA and OH. The home improvement stores
occupy spaces of 45,000 sq.ft. to 60,000 sq.ft. in freestanding facilities and strip
centers. Plans call for 30 openings in the coming 18 months. Expansion will take place in
CA, NJ, NY and the Philadelphia, PA market. Preferred demographics include a population of
60,000 within five miles earning $50,000 as the average income. Leases running 15 years
are typical. Erb Lumber Corp. does business as Erb Lumber, Denpak Building
and Interstate Lumber at 60 locations in CO, IN, MI, MN, OH and WI. The stores,
selling lumber, hardware and tools, occupy spaces of 12,000 sq.ft. to 14,000 sq.ft. in
freestanding facilities. Growth opportunities are sought in the existing markets. Wegmans Food Markets, Inc. trades as Chase-Pitkin Home &
Garden at 15 locations in NY. The home improvement stores occupy spaces of 85,000
sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in
the existing market. Dykes Lumber Company, Inc. trades as Dykes Lumber Company at
seven locations in NJ and NY. The home improvement stores occupy spaces of 18,000 sq.ft.
in freestanding facilities. Growth opportunities are sought in the existing markets. Real Estate Professionals Making News Wal*Mart Stores, Inc. (501-273-4000) announces that Thomas Grimm has been named president of Sam’s Club. Grimm is former president and CEO of Pace Membership Warehouse. Before Pace, Grimm was founding principal of Price Savers Wholesale Warehouse where he held the position of president and CEO for eight years. The Macerich Company (310-394-6900) announces that Jack Jensen has joined the company as vice president-real estate. In his new position, Jensen will work on strategic development issues at various properties. Goody’s Family Clothing, Inc. (423-966-2000) announces the promotion of Jim Maples to regional manager in the central region which includes stores in NC, SC and TN. The company announces the promotion of Jim Ewing to regional manager in its northern region which includes stores in AR, IL, OH, TX, VA and WV. The company also announces the promotion of Chris Bullard to regional manager of its southern region which include stores in AL, FL, GA and MS. Stater Bros. (909-783-5000) announces the promotion of Don Baker to the new position of executive vice president. Baker has been with Stater Bros. for 15 years. Party City Corp. (973-983-0888) announces the promotion of Bill Fowler to the new position of vice president of store operations and the appointment of Linda Siluk to the newly created position of vice president of finance. In his new position, Fowler will be responsible for all store operations, while Siluk will assume responsibility for all financial operating and reporting areas. Edison Brothers Stores Inc. (314-331-6000) has named Edwin Uchtman Jr. as president of the company’s Repp Ltd. division. In his new post, Uchtman will oversee all merchandising operations for Edison’s big and tall menswear stores and mail order unit. Red Lobster (407-245-4000) announces that Edna Morris has been named executive vice president, operations. Morris, formerly president of Quincy’s Family Steakhouse, will be responsible for leading all operations at 646 Red Lobster restaurants nationwide. New Construction Ben Carter Properties and Corporate Property Investors plan
to break ground on The Mall of Georgia Crossing in Atlanta, GA this month. The
450,000 sq.ft. project, which is located across from the 1.7 million sq.ft. Mall of
Georgia, will be anchored by two newcomers to the Atlanta retail market, Nordstrom
Rack and Staples. In addition, Target, Uptons and Best Buy will
also anchor the project. An additional 70,000 sq.ft. of shop space will also be developed.
The project is planned to open in conjunction with the Mall of Georgia, which is also
being developed by Ben Carter Properties and Corporate Property Investors, during August
1999. Simon Property Group plans to break this month on The Shops at
North East Mall in Hurst, TX. Being developed in conjunction with an expansion at North
East Mall, the $41 million, 390,000 sq.ft. project will be anchored by seven stores.
Tenants who have signed leases include Michael’s Arts & Crafts, OfficeMax
and Bed Bath & Beyond. A late 2000 opening is planned. Charter Realty and Weingarten Properties recently broke
ground on phase III of Springfield Plaza in Springfield, MA. Phase III will be
anchored by a 16-screen, 65,000 sq.ft. Regal Cinemas and a 3,400 sq.ft. Kentucky
Fried Chicken restaurant. When completed, the project will encompass 500,000 sq.ft.
and be anchored by Kmart, Super Stop & Shop, AMF Bowling, Savers, Ocean State Job
Lot, Cherry & Webb and Rocky’s Ace Hardware. A 34-acre assisted living
complex is also part of the 100-acre site. Several outparcels adjacent to the movie
theater are available for lease. The two companies also plan to expand and renovate Capitol
Plaza in Augusta, ME. Included will be a 67,000 sq.ft. Shaw’s Supermarket
which is expanding from an existing 35,000 sq.ft. space and will remain open during the
expansion. The expansion will bring the center’s GLA to 145,000 sq.ft. In addition to
Shaw’s, the project is anchored by Service Merchandise, Rent-A-Vision, The Painted
Horse Children’s Toys and The Mailing Center. Shaw’s expects to open
in its new space during 1999. Michael Swerdlow Companies is currently developing Westfork
Plaza in Pembroke Pines, FL. The 400,000 sq.ft. power center will be anchored by Kmart,
Winn-Dixie Marketplace and Regal Cinemas. The site is located in the heart of
Florida’s fastest growing city. A Fall 1998 opening is planned. The company is also
developing Cross County Plaza on the site of a 30-year-old former mall in West Palm
Beach, FL. The new 360,000 sq.ft. power center, which is located at the intersection of
Okeechobee Road and Military Trail--the busiest intersection in Palm Beach County--will be
anchored by Kmart, Ross Dress For Less, Winn-Dixie Marketplace and Just For Feet.
A Fall 1998 opening is planned. The company is underway with Hollywood Hills Plaza
in Hollywood Hills, FL. The 300,000 sq.ft. community center, which is being redeveloped
into an open-air center, will be anchored by Target, Publix and CompUSA. The
site originally opened as Hollywood Mall in 1964. A February 1999 completion date
has been targeted. The company is in the midst of a renovation and remerchandising of Great
Mall of the Bay Area in Milpitas, CA. The 1.2 million sq.ft. project, which is
currently anchored by Saks Off 5th, Burlington Coat Factory, Linens ‘N Things,
Media Play, Oshman’s Supersports USA and Stein Mart, will have a multiplex
theater, a family entertainment center, theme restaurants and additional
manufacturer’s outlet stores added to the tenant mix. A Fall 1999 completion is
expected. Courtelis Company plans to develop Bonita Town Center in
Bonita Springs, FL. The 170,000 sq.ft. project will be anchored by a 44,700 sq.ft.,
12-screen Regal Cinema. Future plans call for expansion of the theater to 16
screens. A Fall 1999 opening is planned. The company acquired the 22 acre site, located at
the intersection of Tamiami Trail and Pelican’s Nest Drive, from Bonita Bay Ltd.
Partnership for $4.2 million. Hiffman Shaffer Associates, Inc. is currently redeveloping Orland
Park Place in Orland Park, IL. The 725,000 sq.ft. project is currently anchored by a
75,000 sq.ft. Kohl’s Department Store and a 150,000 sq.ft. Montgomery Wards
store. Kohl’s is adding 32,000 sq.ft. to its store. HSA plans to redevelop the
enclosed area between the two anchors, totaling approximately 424,000 sq.ft. Approximately
260,000 sq.ft. of the center has been leased with occupancy anticipated beginning in Fall
1999. Among the retailers leasing space are Barnes & Noble in 25,000 sq.ft.; Bed
Bath & Beyond, Filene’s Basement, Sportmart, DSW, Cost Plus, Mikasa and Wickes
Furniture. The remaining 160,000 sq.ft. of space is available for lease. The site is
located across from the 1.2 million sq.ft. Orland Square Regional Mall that
generates in excess of $300 per square foot. Prime Retail, Inc. and The Sansone Group plan to develop Grand
Prime Outlets at Eureka in Eureka, MO. The $115 million, 730,000 sq.ft. project, which
will be located on 115 acres along I-44 across from Six Flags Over Mid-America Theme
Park, will be anchored by a 16-screen Wehrenberg Theatres. Other tenants
recently announced include Adidas, Reebok and Westpoint Stevens outlet
stores. Space for an additional 82 stores from all retail categories, including several
"big box" value retailers, restaurants and other entertainment venues and an
enclosed food court, will also be developed. Plans for the project call for the center to
be built in an outdoor "village" style with stores located along parallel
"shopping streets" enhanced by landscaped courtyards. The two companies plan to
break ground during Spring and a November 1999 opening is planned. Talles & Robbins Development Company recently broke ground on Pelican
Square in Rehoboth Beach, DE. The 140,000 sq.ft. project, located adjacent to the Rehoboth
Beach Outlet at the intersection of Route 1 and Postal Lane, will be anchored by a
53,000 sq.ft. Super Fresh supermarket, a 28,000 sq.ft. Marshalls and a
24,000 sq.ft. Staples. Approximately 35,000 sq.ft. of shop space and two pad sites
remain available for lease. Developers Diversified Realty Corporation is developing Springfield
Commons in Toledo, OH. The 283,920 sq.ft. project will be anchored by an 86,684 sq.ft.
Kohl’s Department Store, a 40,000 sq.ft. Bed Bath & Beyond, a
28,056 sq.ft. Babies ‘R Us store and a 31,080 sq.ft. Gander Mountain
store. Anchor positions of 18,000 sq.ft., 17,000 sq.ft. and 12,000 sq.ft. remain available
for lease as does specialty shop space of 51,100 sq.ft. Demographics include a five-mile
population of 107,827 earning $42,842 as the average household income. A Fall 1998 opening
is planned. Who’s Opening Eckerd Drug Stores (813-399-6355) recently opened 11,200 sq.ft. drug stores in Zephyrhills, Jacksonville and Bradenton, FL. The company is planning to open 11,200 sq.ft. drug stores in Brandon, Tampa and West Melborune, FL during December, January and February, respectively. Hudson’s Grill of America, Inc. (972-931-9237) recently opened a 4,567 sq.ft. franchised restaurant in Jackson, MI. The company is planning to open a restaurant in Richardson, TX this month. Pep Boys (215-229-9000) recently opened its first unit in MN at a location in Inver Grove Heights, which is part of the Minneapolis-St. Paul market. The company currently operates 728 stores in 37 states. Marquee Cinemas (304-255-4036) plans to open a 14-screen, 53,000 sq.ft. movie theater during the third quarter of 1999. The company, which currently operates 43 screens in four states, plans to develop 55 additional screens during 1999. Publix Super Markets (941-688-1188) plans to open a 51,000 sq.ft. supermarket at Town Center at Lakewood Ranch in Lakewood Ranch, FL. McDonald’s Corp. (630-623-3000) plans to add 2,000 restaurants a year for the next several years. The company currently operates more than 23,500 restaurants in 113 countries. Filene’s Basement (617-348-7156) recently opened a store at a former Loehmann’s location at Sawgrass Mills in Sunrise, FL. It is the company’s first FL store and 51st overall. Fresh Choice (408-450-0154) plans to open as many 10 Fresh Choice and Zoopa restaurants in the Dallas/Fort Worth, TX market in the coming three years. The company currently operates seven units in TX and 54 restaurants overall. Safeway, Inc. (510-467-3000) recently announced that it plans to invest nearly $2 billion in store remodeling projects and the addition of 100 new stores through 1999. The company currently operates 1,400 supermarkets nationwide. Wal*Mart Stores (501-273-4000) recently began demolition of North Park Shopping Center in Lexington, KY. The company plans to develop a 204,000 sq.ft. Supercenter on the site beginning Spring 1999. A December 1999 opening is planned. The company also recently announced its store expansion plans for its fiscal year beginning February 1, 1999. Domestically, the Wal*Mart division plans to open approximately 40 new discount stores and 150 new Supercenters. Relocations or expansions of existing discount stores will account for 90 of the Supercenters. The domestic Sam’s Club division will gain as many as 15 new stores with the remodeling of approximately 140. Internationally, Wal*Mart plans to open as many as 80 stores with the countries of Argentina, Brazil, Canada, China, Korea, Mexico and Puerto Rico gaining units. The Great Atlantic & Pacific Tea Company (201-930-8442) has announced plans to open 27 supermarkets during the remainder of the year. During the first half of the year, the company opened 18 stores. The Gap (415-952-4400) has been testing an intimate apparel store known as GapBody at Northbrook Court Mall in Northbrook, IL and Cherry Hill Mall in Cherry Hill, NJ. The company is planning to open a few more GapBody stores, some of which may be inside existing Gap stores, before the end of the year. The GapBody stores compete directly with Victoria’s Secret. Petco (619-453-7845) plans to open stores, which will average 19,000 sq.ft., in Wachtung, NJ and Pittsfield, MA. Cracker Barrel Country Store (615-444-5533) is looking for a location in Owensboro, KY in order to open a restaurant. For the company it marks the beginning of a new strategy of seeking sites that are not located along major interstates or in tourist destinations. The company is currently testing this policy with a location on Dothan, AL which, according to the company, is doing rather well. Home Depot (770-433-8211) is looking to develop a 115,000 sq.ft. store on the site of Nakoma Plaza Shopping Center in Madison, WI. If the company’s plan is approved, the shopping center will be razed to make way for Home Depot. The company recently opened a 115,000 sq.ft. store in Idaho Falls, ID. Leever’s Supermarket, Inc. (701-662-8646) plans to open a 10,000 sq.ft. Save-A-Lot store at a former Chet’s Market space at Belmont Shopping Center in Pueblo, CO this month. Software City (201-569-8900), which operates 25 computer stores in the U.S., Canada and Puerto Rico, plans to open two stores in the Dominican Republic during Fall. Mergers & Acquisitions The Penn Traffic Company (315-457-9460) plans to sell two BiLo Supermarkets in College Township, PA to Fleming Companies, Inc. Fleming is expected to operate the stores under the Jubliee Foods trade name. U.S. Restaurant Properties, Inc. (972-387-1487) recently agreed to acquire 45 Fina service station properties from Fina Oil and Chemical Company for an undisclosed price. The properties, which are located in the Dallas/Fort Worth, TX metroplex, will be operated by Vista Stores LLC, a Dallas-based convenience store operator and gasoline retailer. All of the properties will retain the Fina brand. U.S. Restaurant Properties has also completed the acquisition of 16 restaurant properties that include Denny’s and Popeye’s. The properties are part of a portfolio acquired from Divall Insured Income Fund. U.S. Restaurant Properties is a full integrated, self-advised REIT. The company currently owns and manages 758 properties in 48 states on which fast food and casual restaurants and selected service stations are operated. The company also issues mortgage financing on similar properties. Tires Inc. (402-455-1400) has recently been acquired by Tires Plus and will become a division of the chain. Tires Plus operates 130 stores in IL, IA, KS, MN, MO, ND, SD and WI. Tires Inc. operates 12 stores in NE. Cub Foods, a division of Supervalu, Inc. (612-828-4429) recently agreed to purchase the assets of four Holiday Food stores in Bloomington, Burnsville, Fridley and Plymouth, MN and plans to convert the stores to the Cub Foods concept following closure of the deal. The addition of the Holiday stores will give Cub Foods 35 stores in MN. Supervalu has also signed an agreement with Royal Ahold to acquire five Super G food stores at Hilltown Crossing in Hatfield, PA; Oxford Oaks Shopping Center in Yardley, PA; Park Ridge Shopping Center in Norristown, PA; Warminster Town Center in Warminster, PA and at Norriton Square Center in East Norriton, PA. The supermarkets will be owned and operated by Supervalu subidiary Laneco and will be operated under the Shop ‘n Save banner following closure of the deal. Royal Ahold sold the stores as part of the FTC’s required divestiture of five PA stores as part of Royal Ahold’s acquisition of Giant Food, Inc. Giant Food formerly operates the stores under the Super G name before selling to Royal Ahold. The Pep Boys (215-229-9000) recently entered into an agreement to sell 100 Express stores to AutoZone, Inc. (901-495-6500) for $108 million in cash. Pep Boys plans to use the proceeds from the sale to repay existing debt. In addition, Pep Boys plans to close nine underperforming Express stores, convert one to a Supercenter and continue operating 11, four of which are located in Puerto Rico. AutoZone plans to convert all of the stores its name and format. Koo Koo Roo, Inc. (310-479-2080) stockholders plan to vote on a proposed merger with Family Restaurants, Inc. this month. Koo Koo Roo currently operates 39 Koo Koo Roo California Kitchen restaurants in CA, FL and NV and 14 Hamburger Hamlet restaurants in CA and Washington, D.C. Family Restaurants currently operates more than 270 Mexican restaurants trading as Chi-Chi’s, El Torito and Casa Gallardo. Buyers & Sellers Urstadt Biddle Properties, Inc. recently acquired Goodwives
Shopping Center in Darien, CT from a local investment group for $21.2 million. The 100,000
sq.ft. project is anchored by Grand Union. Mid-Atlantic Realty Trust recently acquired Del Alba Plaza in South
Pittsfield, MA for $9.6 million. The 70,000 sq.ft. project is anchored by a 62,000 sq.ft.
Super Stop & Shop grocery store. KLNB, Inc. represented Fader’s Tobacco in its acquisition of a
7,500 sq.ft. building in Baltimore, MD from Williams, Jackson and Ewing. The company plans
to use 2,500 sq.ft. of the space for its flagship store and the remainder for its
headquarters office. The company currently operates seven high-quality tobacco shops in
the Baltimore, MD market. Kranzco Realty Trust recently completed the acquisition of nine
community shopping centers in five Midwestern and Southern states from a group of private
partnerships managed by Jamestown and owned by German investors for $88 million cash. The
properties include: Douglasville Crossing in Douglasville, GA. The 267,800 sq.ft. project
is anchored by Wal*Mart, Cub Foods and Rhodes Furniture. Snellville Oaks in Snellville,
GA. The 220,900 sq.ft. project us anchored by Wal*Mart and Regal Theatres. Tifton Corners
in Tifton, GA. The 186,600 sq.ft. project is anchored by Wal*Mart and Food Max. Village
Oaks in Pensacola, FL. The 171,700 sq.ft. project is anchored by Wal*Mart and Haverty
Furniture. Statler Crossing in Staunton, VA. The 167,000 sq.ft. project is anchored by
Rack ‘N Sack Markets and Sun Electronics. Pickaway Crossing in Circleville, OH. The
127,100 sq.ft. project is anchored by Wal*Mart and Stage Stores. Vidalia Wal*Mart, a
93,700 sq.ft. freestanding site in Vidalia, GA. And Summerville Wal*Mart, a 67,800 sq.ft.
project leased to Wal*Mart and CVS in Summerville, GA. Rein & Grossoehme brokered the sale of a 3,229 sq.ft.
freestanding Burger King restaurant and a 2,585 sq.ft. freestanding Burger King restaurant
in Phoenix, AZ. The properties were sold by a local investor to Dybvig Properties for
$1.875 million. Taubman Centers, Inc. recently announced that General Motors
Pension Trusts’ holdings in The Taubman Realty Group Limited Partnership have been
redeemed in exchange for ownership of 10 Taubman properties together with a pro rata share
of debt. The transaction, valued at approximately $1.7 billion, was part of a major
restructuring that also included simplification of Taubman’s governance,
recapitalization of its balance sheet and significant reductions in its cost structure.
Taubman continues to manage the GMPT-owned properties under third-party management
agreements. GMPT continues to own 8.4 million shares of Taubman common stock although it
is no longer a partner in TRG which is the operating partnership in the Taubman structure. Burnham Pacific Properties, Inc.’s affiliate, BPP Retail
LLC, recently acquired three shopping centers and portions of two others for $80.1
million. The acquired projects include: Villa Monaco Shopping Center in Denver, CO. The
121,552 sq.ft. project is anchored by King Soopers. Cherrywood Square in Arapahoe County,
CO. The 86,161 sq.ft. project is anchored by King Soopers. Ralston Square in Arvada, CO.
The 82,750 sq.ft. project is anchored by King Soopers. Sunset Valley Marketfair in Austin,
TX. The 352,000 sq.ft. project, of which approximately 209,000 sq.ft. is being acquired,
is anchored by OfficeMax, PetsMart, T.J. Maxx and Ross Dress For Less. Clackamas Promenade
in Clackamas County, OR. The 417,490 sq.ft. project, of which approximately 215,000 sq.ft.
is being acquired, is anchored by Sportsmart, Old Navy and Pacific Linen. Primary anchors
of the non-acquired space include Target and Mervyn’s. Equity Properties, Inc. has the listing to sell Barley Station
Shopping Center in Caln Township, PA. The 33,000 sq.ft. project, which sits on 9.7 acres,
is being offered at $2 million. Progressive Properties has the listing to sell a 15,100 sq.ft.
freestanding Walgreens Drug Store near Turfland Mall in Lexington, KY. The store has a 20
year, double net lease with six five-year options. Owner is responsible for roof and
structural repairs. Base Rent is $415,250. The asking price is $5.15 million. LRA Realty Advisors, Inc. has the listing to sell Shannon Square
and Shannon Auto Service Center in Pittsburgh, PA. The 31,012 sq.ft. convenience center
and specialty auto service center is anchored by Goodyear Tire, Meineke Muffler and
Sherwin-Williams. The asking price is $2.7 million. Lease Signings Rotella Group, Inc. (954-523-7745) subleased 22,800 sq.ft. to Scan Design from Modernage Furniture at Sunny Isles Shopping Center in North Miami, FL. KLNB, Inc. (410-321-0100) leased 43,500 sq.ft. to Best Buy and 16,500 sq.ft. to PetCo at 1717-19 York Road in Lutherville, MD. Mid-America Real Estate Corp. (630-954-7300) leased 1,750 sq.ft. to Score! at Plaza Del Prado in Glenview, IL; 1,000 sq.ft. to Score! at The Grove Shopping Center in Buffalo Grove, IL and 1,200 sq.ft. to Omaha Steaks at Woodgrove Festival in Woodridge, IL. The Carfaro Company (330-747-2661) leased 1,276 sq.ft. to Afterthoughts at Kentucky Oaks Mall in Paducah, KY and 5,000 sq.ft. to Buffet King at Great East Plaza in the Eastwood Mall Complex in Niles, OH. Flocke & Avoyer Commercial Real Estate (619-280-2600) leased 985 sq.ft. to Fast Frame at Plaza Paseo Real Shopping Center in Carlsbad, CA; 2,514 sq.ft. to Talking Book World at Poway Plaza Shopping Center in Poway, CA; 900 sq.ft. to Great Clips at Midway Towne Center in San Diego, CA; 1,200 sq.ft. to Cafe N’ Latte at Lake Murray Shopping Center in La Mesa, CA and 1,400 sq.ft. to Great Clips at Santa Fe Plaza in Encinitas, CA. Divaris Real Estate, Inc. (757-497-2113) leased 4,000 sq.ft. to CiCi’s Pizza at Newport Crossing Shopping Center in Newport News, VA; 2,640 sq.ft. to Hair Dimensions in Norfolk, VA and 2,000 sq.ft. to FuncoLand at Crossways Center at Greenbrier in Chesapeake, VA. Tulsa Properties, Inc. (918-665-3830) leased 7,345 sq.ft. to Family Bookstores Company at a former Hollywood Video space at Southern Trails Shopping Center in Tulsa, OK and 19,355 sq.ft. to May’s Drug Store in Tulsa, OK. Grubb & Ellis Company (714-937-0881) leased 12,000 sq.ft. to Showbiz Pizza Time at Desert Crossing Shopping Center in Palm Desert, CA. Developers Diversified Realty Corporation (440-247-4700) leased 33,225 sq.ft. to Office Depot at The Family Center in Orem, UT and 2,400 sq.ft. to Bath & Body Works and 82,325 sq.ft. to Sears at Times Square Mall in Mt. Vernon, IL. Fidelity Realty, LLC (201-966-2800) leased 34,440 sq.ft. to Linens ‘N Things at a former Acme location, a 30,000 sq.ft. expansion of Home Depot which now occupies 131,000 sq.ft. and a 20,000 sq.ft. expansion of Clearview Cinema to create a 16 screen movie theater at Roxbury Mall in Morris County, NJ. Klaff Realty, LP (312-360-1234) leased 80,000 sq.ft. to Hobby Lobby at a former Montgomery Ward space at College Hills Mall in Normal, IL. Exclusives Excess Space Disposition, Inc. (212-338-0575) has been retained exclusively to dispose of Blockbuster’s surplus real estate nationwide. Sunglass Hut, Weis Markets, Advantica, AMC Theaters, CSK Auto, Rite Aid and A&P have also recently retained the company to dispose of all or a portion of their surplus real estate. Florida Real Estate Advisors (407-333-2186) has been awarded the leasing and managing contract for Bayport Plaza in Rocky Point, FL by Allegis Realty Investors LLC. Equity Properties, Inc. (610-645-7700) has been named the exclusive leasing agent for Lawndale Plaza in Philadelphia, PA. The 100,000 sq.ft. project is anchored by ShopRite Supermarket and Hollywood Video. Spaces from 1,000 sq.ft. to 6,000 sq.ft. are available for lease. Closings Rite Aid (717-761-2633) plans to close its drug store in Modesto, CA during January 1999. Toys ‘R Us (201-599-7850) plans to close its store near Raleigh Springs Mall in Austin Peay, TN after the holidays. The company has operated the store since October 1992 and is closing it because of steadily declining sales. The Sports Authority, Inc. (954-735-1701) plans to close 18 stores after the holiday season. The stores are being closed because they have been underperforming. Shoney’s (800-626-5630) plans to close two restaurants in Omaha, NE and one in Council Bluffs, IA as part of its plan to close 33 underperforming units nationwide. Lead Sheet Apparel The 114-unit chain operates locations in CT, DE, MD, NJ, NY, PA and VA. The women’s apparel stores occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in downtown store fronts and strip centers. Preferred anchors include supermarkets. Plans call for 15 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 75,000 within three miles earning $50,000 as the average income. Leases running five years are typical and the company cites Fashion Bug and Express as competition. Charles F. Berg, Inc. Apparel The 21-unit chain operates locations in CA, ID, OR and WA. The women’s apparel stores occupy spaces of 3,500 sq.ft. in regional malls. Growth opportunities are sought in CO, ID, MN, ND, SD and UT. Rag Shops, Inc. Arts/Craft/Fabric The 67-unit chain operates locations in CT, FL, NJ, NY and PA. The stores, selling arts, crafts, fabrics, floral items, wicker items, framing supplies, wood and yarn, occupy spaces of 12,000 sq.ft. to 15,000 sq.ft. in power and strip centers. Preferred co-tenants include women’s ready-to-wear stores and supermarkets. Plans call for 12 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 100,000 within three miles earning $40,000 as the average income. Leases running five years are typical and the company cites AC Moore, Joann’s and Michaels as competition. CMH Enterprises, Inc. Cards The six-unit chain operates locations in OH. The stores, selling cards and collectibles, occupy spaces of 5,000 sq.ft. in regional malls and strip centers. Preferred anchors include Kmart, Wal*Mart, department stores and supermarkets. Plans call for one opening in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 20,000 within six miles earning $25,000 as the average income. Leases running five years are typical. Mark’s Card Shop, Inc. Cards The 39-unit chain operates locations in CA, HI, OR and WA. The stores, selling Hallmark cards and gifts, occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in downtown store fronts, regional malls and strip centers. Growth opportunities are sought in the existing markets. Leases running 10 years are typical. Sheetz, Inc. Convenience Store The 208-unit chain operates locations in MD, OH, PA, VA and WV. The convenience stores, which also sell gasoline, occupy freestanding facilities on land areas running one to two acres. Plans call for 30 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 15 years are typical. Skinny’s, Inc. Convenience Store The 59-unit chain operates locations in TX. The convenience stores, which also sell gasoline, occupy spaces of 2,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market. Preferred demographics include a population of 5,000 within one mile earning $30,000 as the average income. Leases running 15 years are typical. The Neighborhood Dry Cleaning Company Dry Cleaners The 55-unit chain operates locations nationwide. The dry cleaners occupy spaces of 3,000 sq.ft. in freestanding facilities and strip centers. Plans call for as many as 20 openings annually. Expansion will take place nationwide. Preferred demographics include a population of at least 40,000 within three miles earning $40,000 as the average household income. J.L. Hammett Co. Educational The 57-unit chain operates locations in AZ, CA, CT, FL, GA, IL, MA, ME, MN, NC, NH, NJ, NY, OK, SC, TX and VA. The stores, selling educational supplies, occupy spaces of 3,000 sq.ft. in strip centers. Plans call for as many as 16 openings in the coming 18 months. Expansion will take place in AZ, MN, NJ, NC and TX. Preferred demographics include a population of 300,000 within five miles earning $75,000 as the average income. Leases running five years are typical and the company is franchising. General Mobile Electronics Electronics The 40-unit chain operates locations in CA. The stores, selling car stereos, car alarms, cell phones, pagers, navigation products and mobile video systems, occupy spaces of 2,000 sq.ft. to 3,500 sq.ft. in downtown store fronts, freestanding facilities, power and strip centers. Plans call for as many as seven openings in the coming 18 months. Expansion will take place in Southern CA. Leases running seven years are typical. Tandy Corp. Electronics The 7,000-unit chain operates locations nationwide. The electronics stores occupy spaces of 2,000 sq.ft. to 2,500 sq.ft. in downtown store fronts, regional malls and strip centers. Plans call for 100 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 40,000 within three miles earning $20,000 as the average income. Leases running five years are typical. Namco Cybertainment, Inc. Entertainment The 333-unit chain operates locations nationwide and in Puerto Rico. The arcades occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in entertainment centers and regional malls. Preferred co-tenants include movie theaters and food courts. Plans call for 25 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years are typical. Yankee Candle Company, Inc. Gifts The 52-unit chain operates locations in CT, FL, ME, MD, MA, NH, NJ, NY, OH, PA, RI, SC and VT. The stores, selling candles, occupy spaces of 1,200 sq.ft. to 2,000 sq.ft. in regional malls and strip centers. Plans call for 60 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 350,000 within five miles earning $45,000 as the average income. Leases running seven years are typical. The company’s products can also be found in more than 8,500 gift stores nationwide. FS Concepts, Inc. Hair Salon The 1,350-unit chain operates locations nationwide. The hair salons occupy spaces of 1,200 sq.ft. to 1,600 sq.ft. in strip centers. Preferred anchors include supermarkets. Plans call for 200 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 10,000 within one mile earning $35,000 as the average income. Leases running five years, with two five-year options, are typical and the company cites Cost Cutters and Great Clips as competition. Schewel Furniture Co. Home Furnishings The 44-unit chain operates locations in NC, VA and WV. The furniture stores occupy spaces of 12,000 sq.ft. to 20,000 sq.ft. in freestanding facilities and strip centers. Preferred co-tenants include supermarkets. Growth opportunities are sought in the existing markets. Preferred demographics include a population of 20,000 within five miles earning $25,000 as the average income. Leases running 10 years are typical and the company, which prefers a vanilla shell, cites Helig Meyers as competition. Skinner Group Home Furnishings The 16-unit chain operates locations in AL and GA. The stores selling furniture, appliances and electronics, occupy spaces of 10,000 sq.ft. in strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 20,000 within 10 miles earning $20,000 as the average income. Leases running three years are typical. Window Works International, Inc. Home Furnishings The 12-unit chain operates locations in CO, IL, IN, MI, MN, OH and TX. The stores, selling window treatments, occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in strip centers. Growth opportunities are sought in the existing markets and the company is franchising. Marty Shoes, Inc. Shoes The 82-unit chain operates locations in CT, FL, MD, NE, NJ, NY, PA and VA. The stores, selling shoes, handbags and accessories, occupy spaces of at least 4,000 sq.ft. in freestanding facilities, outlet and strip centers. Plans call for 25 openings in the coming 18 months. Expansion will take place in NJ and NY. Preferred demographics include a population of 100,000 within 10 miles earning $70,000 as the average income. Leases running five to twenty years are typical. Sibley’s Shoes Shoes The 34-unit chain operates locations in MI. The shoe stores occupy spaces of 2,000 sq.ft. to 5,000 sq.ft. in regional malls. Growth opportunities are sought in the existing market. Monotag Corp. Signs The 37-unit chain operates locations in AL, AR, CO, LA, MS, TN and TX. The stores, selling vinyl signs, occupy spaces of 1,000 sq.ft. to 2,000 sq.ft. in strip centers. Preferred anchors include Office Depot, OfficeMax and Staples. Plans call for one opening in the coming 18 months. Expansion will take place in either Huntsville, AL or Denver, CO. Leases running five years are typical. The company is franchising and cites Signs Now and Fast Signs as competition. Baines Management Co. Supermarkets The 13-unit chain operates locations in MD. The supermarkets occupy spaces of 35,000 sq.ft. in a variety of real estate settings. Plans call for as many as five openings in the coming 18 months. Expansion will take place in Washington, D.C. Preferred demographics include a population of 100,000 within five miles earning $50,000 as the average income. Leases running 30 years are typical. Raley’s Supermarket The 115-unit chain operates locations in CA and NV. The supermarkets occupy spaces of 61,000 sq.ft. in strip centers. Plans call for eight openings in the coming 18 months. Expansion will take place in Northern CA and Northern NV. Family Toy Warehouse Toys The 25-unit chain operates locations in NJ, OH and PA. The toy stores occupy spaces of 18,000 sq.ft. in power centers. Plans call for two openings in the coming 18 months. Expansion will take place in DE, NJ or PA. Leases running 10 years are typical and the company cites Toys ‘R Us, Toy Works and Wal*Mart as competition. Financial News Boston Chicken, Inc. (303-384-5172) and its Boston Market-related subsidiaries recently filed voluntary Chapter 11 petitions. The company also announced it has received a commitment from a group of lenders led by General Electric Capital Corporation and Bank of America for up to $70 million in debtor-in-possession financing to refinance up to $35 million of existing senior debt and to give the company access to up to $35 million of additional working capital should it be required. In addition, the company is in discussions with its senior creditors and other parties for long-term financing to support the company’s business plan after it emerges from Chapter 11. Prior to filing Chapter 11, the company spent several months discussing its restructuring plan with an ad hoc committee representing its three classes of public subordinated debt, which total approximately $625 million. In a statement, J. Michael Jenkins, chairman, president and CEO, said, "We had hoped to restructure out-of-court and gave it our best effort... We filed {today} because we realized we wouldn’t be able to complete our restructuring plan by October 17..." Approximately $283 million in senior debt was to come due on October 17. In addition, the company said that due to the filing, it will no longer advance additional funding on convertible loans to Boston West, LLC and BC Northwest, LLC, area developers that were formerly financed by Boston Chicken. Upon filing Chapter 11, the company closed 178 company-owned Boston Market stores nationwide. The company anticipates no material effect on the operations of Einstein/Noah Bagel Corp., Boston Chicken’s 51% owned subsidiary, as a result of the filing. In a statement, Nancy Shipp, Einstein’s senior director of investor relations, said, "It’s important to remember that although Boston Chicken has 51% ownership of Einstein/Noah Bagel, we have separate bank, landlord, and vendor relationships and those are very strong. Our operations are separate and our concepts are distinctively different." Boston Chicken has been trying to break its ownership ties to Einstein. Last May, it put its 17.2 million shares of Einstein/Noah up for sale. At that time, those shares were worth $95 million. Currently, due to Einstein’s stock slippage, those same shares are worth approximately $25 million. In other news, the company announced that it its testing alcohol sales at 10 restaurants in the Dallas/Fort Worth, TX metroplex market. Walgreen Co. (847-940-2500) reported that its fiscal 1998 earnings increased 17.2% to $511 million from $436 million during FY97. Sales for the year were up 14.5% to $15.3 billion from $13.4 billion last year with comparable store sales up 9.4% for the year. During its past fiscal year, the company opened 304 stores, including 94 relocations. Plans for fiscal 1999 call for 365 store openings with a goal of operating 3,000 units by 2000 and 6,000 stores by 2010. Currently, the company operates 2,549 drug stores in 35 states. Ruby Tuesday, Inc. (423-379-5700) reported that its first quarter net income increased 22.2% to $7.8 million from $6.4 million during its first quarter last year. System-wide revenue increased 14.2% to $201.5 million from $176.5 million last year. Comparable store sales increased 3.3% for the quarter. During the quarter, the company opened 10 Ruby Tuesday restaurants and one Tia’s Tex-Mex Restaurant. Currently, the company operates and franchises 325 Ruby Tuesday units, 45 Mozzarella’s American Cafe units and 22 Tia’s Tex-Mex units in 33 states and six foreign countries. Strouds, Inc. (626-912-2866) reported that its second quarter net sales increased slightly to $54.2 million from $53.8 million during the second quarter last year. A net loss of $366,000 was reported, as compared to a net loss of $1.13 million last year. Comparable store sales increased 0.9% for the quarter. The company currently operates 63 stores selling bed, bath, tabletop and other home textile products in five states. Starbucks Corp. (206-447-7954) reported that its fiscal 1998 consolidated net revenues increased 34% to $1.31 billion from $975 million during fiscal 1997. Comparable store sales increased five percent for the year. During the year, the company opened 487 stores worldwide and currently operates 1,886 stores. AutoZone, Inc. (901-495-6500) reported that its fiscal 1998 net income increased 17% to $227.9 million from $195 million during fiscal 1997. Sales for the year increased 20% to $3.24 billion from $2.69 billion during FY97. Comparable store sales increased two percent for the year. During the fourth quarter, the company acquired 560 Chief Auto Parts stores, opened five new Chief stores and closed 22; in addition, the company opened 113 new and replaced 3 AutoZone stores. For the year, the company opened 275 net new AutoZone stores and 12 replacement stores in addition to purchasing and converting 11 Auto Palace stores and acquiring 43 TruckPro stores. The company currently operates 2,114 AutoZone stores in 38 states, 543 Chief stores in five states and 43 TruckPro stores in 14 states. Value City Department Stores, Inc. (614-471-4722) reported that its consolidated net owned sales increased 14.3% to $1.16 billion from $1.02 billion during FY97. Comparable store sales increased six percent for the year. Net income for the year jumped to $20.4 million from $4 million the previous year. The company currently operates 96 department stores in the Eastern, Midwestern and Southern regions and 43 DSW Shoe Warehouse stores nationwide. Winn-Dixie Stores, Inc. (904-783-5000) reported that its first quarter sales increased 4.4% to $3.2 billion from $3.1 billion during the first quarter last year. Comparable store sales increased 1.6% for the quarter. Net earnings from operations totaled $14.6 million, compared to $47.5 million last year, a decrease of 69.4%. During the quarter, the company opened 18 stores averaging 50,700 sq.ft. and closed 14 stores averaging 35,300 sq.ft. There are 54 new stores and 45 store enlargements or remodels currently under construction. Currently, the company operates 1,172 supermarkets in the Sun Belt states. Shoe Pavilion, Inc. (510-970-9775) reported that its third quarter sales increased 23% to $14.6 million from $11.9 million during the third quarter last year. Comparable store sales increased eight percent during the quarter. During the quarter, the company opened six stores and closed two. Currently, the company operates 62 stores in the Western region. Sources of Financing Aries Capital (312-642-0100) recently closed a $2.3 million loan for The Golden Lion Building in San Diego, CA’s Gas Lamp Quarter District. The 39,419 sq.ft. project, located across from Horton Plaza, is occupied by "E" Street Alley, The Lobster Company, Rubios, Zone Sports Active Wear, Sunglass Shop and The Music Trader. Holliday Fenoglio Fowler (561-241-6500) recently secured $2.138 million in debt financing to refinance the Hillsboro Shoppes in Deerfield Beach, FL. The 26,784 sq.ft. project is anchored by Pet Supermarket and Bell South Mobility. The company also arranged $37 million in permanent fixed rate debt financing and $4.25 million in mezzanine debt for Camco Development in order to recapitalize a portfolio of retail and industrial properties in the Dallas/Fort Worth, TX metroplex. The properties are Irving Market Center, North Hills Village and Northeast Business Park. The three properties comprise a total of 547,217 sq.ft. and are 100% occupied. Ultimate Electronics, Inc. (303-412-2500) recently closed a new expanded three-year $40 million credit facility with Foothill Capital Corporation. Proceeds will be used to refinance the company’s existing bank credit agreement of $35 million and to provide additional funds for ongoing working capital needs. The new secured credit facility provides for borrowing under two variable interest rate options of LIBOR plus two percent and Prime less .375%. The company currently has excess availability under the terms of the credit facility in excess of $12 million. The company currently operates 30 consumer electronics stores trading as Ultimate Electronics, SoundTrack and Audio King in CO, ID, IA, MN, NV, NM, OK, SD and UT. Net Capital Incorporated (877-677-2800) offers fixed rate, non-recourse loans to owners of fee or leasehold interests leased to qualified single tenant retail concepts nationwide. Loans range from $400,000 to $2 million per property with no maximum per borrower. Terms up to 25 years with 25-year amortization schedules are available. The maximum loan to value ratio is 80% of appraised value. Borrowers may prepay the loan at anytime with payment of a prepayment fee which will be the greater of 1% remaining loan balance or a loss of yield fee. Loans are fully assumable with lender consent and secondary financing is not permitted without lender approval. Total closing costs are estimated at approximately $7,000. Space Place Colorado Aurora- Hoffman Heights Center is anchored by Ace
Hardware, Video Buffs and Brunswick Recreation Center. The 240,000 sq.ft.
project has spaces of 672 sq.ft., 1,200 sq.ft. and 4,800 sq.ft. available for lease.
Demographics include a three-mile population of 150,000 earning $45,000 as the average
income. Retailers in the area include King Soopers, McFrugals and Family Dollar. Illinois Arlington Heights- The Annex of Arlington Shopping Center
is anchored by Sports Authority, PetsMart, JoAnn Fabrics and Pier 1. The
153,973 sq.ft. project has spaces from 2,250 sq.ft. to 10,000 sq.ft. available for lease.
Demographics include a three-mile population of 136,196 earning $69,014 as the average
income. In Kankakee- Meadowview Shopping Center is anchored by Eagle
Country Market, Blockbuster and McDonald’s. The 376,563 sq.ft. project has
spaces from 1,200 sq.ft. to 60,000 sq.ft. available for lease. Demographics include a
three-mile population of 69,844 earning $41,652 as the average income. Michigan Saginaw- West Wood Plaza is anchored by Wal*Mart
and GKC Theater. The 240,000 sq.ft. project has space available for lease.
Demographics include a five-mile population of 94,632 earning $45,656 as the average
household income. In Sterling Heights- The Forum at Gateways is
anchored by Wal*Mart, Farmer Jack Grocery and a 24-screen AMC Theater. The
397,089 sq.ft. project has space available for lease. Demographics include a five-mile
population of 216,914 earning $66,498 as the average household income. New Jersey Lundhurst- Lewandowski Commons is anchored by Edward’s
Supermarket. The 100,000 sq.ft. project has spaces from 1,000 sq.ft. to 20,000 sq.ft.,
as well as a pad site, available for lease. A Fall 1999 delivery is planned. In Old
Bridge- Old Bridge Gateway is anchored by Marshalls and Drug
Emporium. The 200,000 sq.ft. project has spaces of 4,100 sq.ft., 4,200 sq.ft. and
40,000 sq.ft. available for lease. Voorhees- Ritz Center is anchored by Ritz 12 Theater,
Applebee’s, Chez Elena Wu, Coffee Works, Color Me Mine, Fan Stand, Ritz Seafood
Market, Ritz Dry Cleaners, Salon at the Ritz and Tunes Compact Discs. The
project has 10,000 sq.ft. of contiguous space available for lease. In Westmont-
Haddon Shops is anchored by Finizio’s Italian Eatery, Hair Cuttery,
Manhattan Bagel and Wow Video. The project has a 1,425 sq.ft. former Sir
Speedy space available for lease. Ohio Columbus- Great Southern Shopping Center is anchored by Big
Bear and Kroger. A 125,000 sq.ft. Wal*Mart will be opening at the center
during Spring 1999. The 530,000 sq.ft. project has spaces from 750 sq.ft. to 10,000 sq.ft.
and an outparcel available for lease. Demographics include a five-mile population of
106,066 earning $33,645 as the average household income. Pennsylvania Bethlehem- The Shoppes at Main Street Commons is
anchored by Bethlehem Brew Works and Toy Magic. The 60,000 sq.ft. project
has space available for lease. Demographics include a three-mile population of 99,727
earning $48,638 as the average household income. Concordville- Concord Village Square Shopping Center is
anchored by Glen Mills Pharmacy, Top Shelf Market, Brothers Pizza & Family
Restaurant and Keystone Bank. The project has spaces of 1,500 sq.ft., 3,000
sq.ft. and a 6,000 sq.ft. build-to-suit end-cap space available for lease. Demographics
include a trade area average household income of $98,000. In Upper Chichester
Township- Willowbrook Shopping Center is anchored by Rite Aid and Dollarland.
A 17,000 sq.ft. anchor position and in-line spaces of 800 sq.ft. and 1,600 sq.ft. are
available for lease. Demographics include a three-mile population of 79,250 earning
$52,000 as the average household income. |