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Issue Number 13
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The Dealmakers Issue Number 13 for the week of April 9, 1999 Apparel Retailers Seeking Sites Nationwide United Retail Group, Inc. does business as The Avenue at 502
locations nationwide. The stores, selling large size women’s ready-to-wear apparel,
occupy spaces of 5,000 sq.ft. to 6,000 sq.ft. in downtown store fronts, power and strip
centers. Plans call for as many as 40 openings in the coming 18 months. Expansion will
take place nationwide. Preferred demographics include a population of 100,000 within five
miles earning at least $30,000 as the average income. The company cites Lane Bryant,
Fashion Bug Plus, Ashley Stuart and Dress Barn Woman as competition. Bugle Boy Industries, Inc. trades as Bugle Boy Factory Store
at 248 locations nationwide. The stores, selling its own line of family apparel, occupy
spaces of 4,000 sq.ft. to 6,000 sq.ft. in regional malls, entertainment, outlet and power
centers. Plans call for 100 openings in the coming 18 months. Expansion will take place
nationwide. Preferred demographics include a population of 150,000 within 15 miles earning
$35,000 as the average income. Leases running five years are typical. Clothestime does business as Eye Candy at four locations
nationwide. The stores, selling junior apparel, occupy spaces of 3,500 sq.ft. in regional
malls. Plans call for 25 openings in the coming 18 months. Expansion will take place
nationwide. Preferred demographics include a population of 100,000 within three miles
earning $45,000 as the average income. Leases running 10 years are typical. Big Dog Sportswear trades as Big Dogs and Big Dog
Sportswear at 175 locations nationwide. The stores, selling its own line of family
apparel, occupy spaces of 1,500 sq.ft. to 3,000 sq.ft. in a variety of real estate
settings. Growth opportunities are sought nationwide. Preferred demographics include a
population of 50,000 within five years earning $50,000 as the average income. Who’s Opening & Where The Gap (650-952-4400) is considering opening a 100,000 sq.ft. store in Manhattan, NY on Lexington Avenue, one block away from Bloomingdale’s. OfficeMax (216-921-6900) plans to open 100 stores this year, with half of them being located in secondary markets. Nordstrom (206-628-2111) recently opened a 53,000 sq.ft. Nordstrom Rack store at Howe ‘Bout Arden Shopping Center in Sacramento, CA. The store was opened at the former location of a Home Express store. Haverty Furniture Companies, Inc. (404-881-1911), which operates 99 furniture showrooms in 14 states, plans to enter three new markets this year and open a unique mall location in Atlanta, GA. Coffee Beanery (810-733-1020), which currently operates 193 stores in 32 states, is planning to open 17 stores this year. Denny’s (864-597-8000), which recently roll-out a new concept called Denny’s Classic Diner, is planning to have at least 15 of the units operating before the end of the year. Cousins Subs (414-253-7700), which operates 137 sandwich restaurants in IL, MI, MN and WI, opened 18 stores last year and is planning to open 30 units this year. By the end of 2000, the company is planning to be operating 200 locations. In addition to expanding in its current markets, the company is also looking to open stores in CO, NV and TX. Seed Restaurant Group, Inc. (606-268-1668) plans to open a Fazoli’s restaurant at the former site of The Great CoverUp, located across from Western Hills Shopping Center, in Cincinnati, OH during Spring. It will be the chain’s seventh area location. Consolidated Stores (614-278-6800) plans to open 100 K*B Toy stores nationwide this year. Zale Corp. (972-580-4000), which operates 1,140 jewelry stores trading as Zales Jewelers, Zales Outlet, Gordon’s Jewelers and Bailey Banks & Biddle Fine Jewelers, is planning to open 300 stores in the coming three years. Most of the openings will take place in the Zales division which currently has 710 stores, including 15 outlet stores. Plans call for the company to be operating 150 Zales Outlet stores within three years. Gregg Tire (785-233-4156) plans to open a 6,000 sq.ft., 10-bay automotive service center at the intersection of Sixth Street and Wakarusa Drive in Lawrence, KS. It will be the company’s second Lawrence location and its fourth location overall. The other two are located in Topeka. Paper Warehouse, Inc. (612-936-1000), which operates and franchises 143 paper goods and party supply stores, plans to slow its 1999 growth by opening fewer than 10 company-owned stores this year. Last year, the company opened 27 company-owned stores. The company’s goal of opening fewer stores this year is to accelerate the growth of sales relative to expenses and begin to harvest returns on the investments the company has made over the past few years. Dollar Castle (313-340-1866), which operates 10 stores in the Detroit, MI market, is looking to open five larger stores during late this year and early next year. The current stores range in size from 3,000 sq.ft. to 6,000 sq.ft. and have average annual sales per store between $600,000 and $1 million. The new stores are expected to be in the 11,000 sq.ft. to 20,000 sq.ft. range and stock more consumable items as the company is looking to compete directly with grocery stores. Stores are expected to open in Detroit, Sterling Heights, Lake Orion, White Lake Township and Lansing. Each store is expected to cost between $400,000 and $650,000 to open, including construction, leasing and inventory. Payless ShoeSource, Inc. (785-233-5171), which operates 4,357 Payless Shoe stores and 213 Parade of Shoes stores, plans to open approximately 120 new Payless Shoe stores throughout North America. However, the company plans to keep its Parade of Shoes chain expansion plans on hold until it is confident that Parade is operating at acceptable returns. Wendy’s International, Inc. (614-764-3100) plans to expand its systemwide new unit development by more than 20% from a 1998 total of 460 to a 1999 goal of 560 to 590 units. By division, the company is looking to open as many as 300 Wendy’s in the U.S.; as many as 25 Tim Horton’s in the U.S.; as many as 175 Tim Horton’s in Canada; as many as 45 Wendy’s in Canada and as many as 45 Wendy’s restaurants outside of North America, primarily in Latin America and the Caribbean region. Toys ‘R Us, Inc. (201-262-7800) is looking into the possibility of moving its Nakoma Plaza Shopping Center store in Madison, WI to the location of the former West Towne Cinema at West Towne Mall in Madison. Toys R Us is vacating Nakoma Plaza because it is being razed for the development of a Home Depot store. Publix Supermarket (941-688-1188) plans to relocate its 37-year-old store at Cypress Plaza in Pompano Beach, FL to a 44,270 sq.ft. freestanding facility at the intersection of Cypress Road and SW 3rd Street. Casey’s General Stores, Inc. (515-965-6100), which operates more than 1,180 convenience stores in nine states, plans to open 85 stores this year. Over the past five years, the company has opened 350 new stores, boosting its total store count by more than 35%. Ethan Allen Home Interiors (203-743-8500) recently opened a 20,400 sq.ft. store in Dallas, TX. Overall, The company operates 316 furniture stores throughout North America and Mexico. Taco Cabana (210-804-0990) plans to open as many as 12 restaurants this year, including a unit in Oklahoma City, OK. Eckerd Drug Stores (813-399-6355) recently opened an 11,200 sq.ft. drug store in Crystal River, FL and is planning to open 11,200 sq.ft. stores in Gainesville and Winter Springs, FL during May; in Lakeland and Fort Walton Beach, FL during June and in Auburndale and Homestead, FL during July. Sandella’s Cafe (212-267-6713) plans to open a 1,200 sq.ft. restaurant in Tempe, AZ; a 1,495 sq.ft. unit at Hillcrest Shopping Center in Dallas, TX and an 1,800 sq.ft. location at White Marlin Mall in Ocean City, MD this month. New Construction Korman Commercial Properties plans to break ground during Spring
2000 on Nockamixon Crossing Shopping Center in Nockamixon, PA. The 150,000 sq.ft.
project will be developed at the intersection of Routes 611 and 413 in Bucks County, PA.
Space is available for lease at the project. Plaza Properties plans to break ground next month on Hunter’s
Run Centre in Columbus, OH. The 50,000 sq.ft. project will be anchored by Longhorn
Steakhouse. The strip center will be located at the intersection of State Route 256
and State Route 204 and has a three-mile population of 53,665 earning $46,667 as the
average income. A Fall 1999 or Spring 2000 opening is planned. Stiles Corporation and Hallmark Partners, Inc. plan to break
ground during Spring on Reedy Branch Commons in Jacksonville, FL. The 76,000 sq.ft.
project, which will be developed at the intersection of Baymeadows Road and the 9A
Extension, will be anchored by a 44,000 sq.ft. Publix supermarket and will contain
an outparcel for a gas station/convenience store. A February 2000 opening is planned. The
companies also plan to break ground during Spring on Windsor Commons Shopping Center
in Jacksonville, FL. The 92,000 sq.ft. project, which will be developed at the
intersection of J. Turner Butler Boulevard and Hodges Boulevard, will be anchored by a
37,866 sq.ft. Publix supermarket and national drug store. An outparcel for a gas
station/convenience store will also be part of the development. A February 2000 opening is
also planned. Klaff Realty, LP plans to break ground next month on Elmhurst
Shopping Center in Elmhurst, IL. The 341,900 sq.ft. project will be anchored by Kohl’s
Department Store and Dominick’s Supermarket. The center will be developed
at the intersection of IL Route 83 and St. Charles Road, two miles north of Oak Brook
Center Regional Mall, and has a three-mile population of 197,159 earning $81,545 as
the average income. Spaces of 11,000 sq.ft. and 15,000 sq.ft. remain available for lease.
A November opening is planned. Financial News Strouds, Inc. (626-912-2866) reported that its 1998 net sales increased to $227.6 million from $221.8 million during 1997. Comparable store sales increased 3.3% for the year. The company operates 65 specialty stores selling bed, bath, tabletop and other home textile products in five states. Costco Companies, Inc. (425-313-6360) reported that its second quarter net sales increased 14% to $6.48 billion from $5.7 billion during its second quarter last year. Comparable store sales increased 10% for the quarter. Net income for the quarter increased 21% to $152 million from $126 million last year. The company currently operates 285 warehouses in the U.S., Canada, U.K., Korea, Mexico and Taiwan. Plans call for the opening of an additional 18 stores this year. Staples Inc. (508-370-8500) reported that its total sales for 1998 increased 24% to $7.1 billion from $5.7 billion during 1997. Comparable store sales for the year increased 11%. Net income for the year jumped 39% to $238 million from $171 million. During 1998, the company opened 174 stores worldwide, including 130 in the U.S., to end the year with 913 stores. Koo Koo Roo Enterprises, Inc. (949-757-7900), formerly known as Family Restaurants, Inc., reported that consolidated sales for its three operating divisions, Koo Koo Roo, Chi-Chi’s and El Torito, for the fiscal year 1998, increased 1.9% to $472.7 million, including sales of $14.6 million relating to the Koo Koo Roo and Hamburger Hamlet restaurants acquired in October. For the year, same store sales for the combined El Torito and Chi-Chi’s operations (which represented 97% of consolidated company sales) were up 1.1% from -4.8% in 1997, reversing a four-year negative trend. Restaurant level cashflow for the consolidated company increased 16.3% to $55.5 million for the year. A loss of $63.1 million for the year was also reported. Of that loss, $27.7 million was related to the write-down of certain long-lived assets relating to underperforming restaurants and a provision for divestitures. The company currently operates 54 Koo Koo Roo and Hamburger Hamlet restaurants, 95 El Torito restaurants and 165 Chi-Chi’s restaurants. Brown Group, Inc. (314-854-4000) reported that its fiscal 1998 net earnings were $23.67 million, up from a net loss of $20.9 million during FY97. The 1997 net loss includes after tax, non-recurring charges of $31 million associated with the phase-out of the company’s Pagoda International division and an after tax loss of $1.5 million related to the sale of Famous Footwear’s fixture business. Consolidated net sales fell slightly to $1.54 billion from $1.58 billion during 1997. Adjusting for the sales decline related to the withdrawal from the Pagoda International division, and the sale of the Famous Fixtures business, sales increased 3.1%. The company currently operates 827 Famous Footwear and 462 Natrualizer shoe stores throughout North America. Kmart Corp. (248-643-1000) reported that its fiscal 1998 net income increased 108% to $518 million, its highest annual earnings within the last five years. FY 1997's net income was $249 million. Helping to lead the earnings growth was a 4.6% increase in comparable store sales. For the year, sales increased to $33.7 million from $32.2 million during 1997. During the year, the company opened 25 stores and ended the year with 2,161 stores. Best Buy Co., Inc. (612-995-7049) reported that its fiscal 1999 sales increased 21% to $10.1 billion from $8.4 billion during FY98. Comparable store sales increased 13.5% for the year. During the year, the company opened 28 stores and is planning to open 45 stores this year, including entry into the new markets of Sacramento and San Francisco, CA; northern FL; upstate NY and Richmond and Norfolk, VA. American Eagle Outfitters, Inc. (724-776-4857) reported that its
sales for 1998 increased 44.8% to $587.6 million from $405.7 million during 1997.
Comparable store sales increased 32.1% for the year. Net income for the year was up 177%
to $54.1 million from $19.5 million during 1997. The company currently operates 389
specialty retail stores offering all-American, casual apparel, accessories and footwear
for men and women between the ages of 16 and 34. Michaels Stores, Inc. (972-409-1300) reported that its net income for fiscal 1998 was up 45% to $43.6 million from $30.1 million during fiscal 1997. Sales for the year increased eight percent to $1.57 billion with comparable store sales up one percent for the year. The company attributed the large gain in net income, compared to the small increase in comp store sales, to an improvement in merchandising margins. The company currently operates 506 Michaels stores in 47 states, Canada and Puerto Rico and 79 Aaron Brothers stores, located primarily on the West Coast. Buyers & Sellers Friedman Real Estate Group has the listing to sell four
neighborhood strip centers in MI and OH. The projects, which have a combined GLA of 41,404
sq.ft., are anchored by Sherwin Williams and contain one or two other tenants. All of the
projects have NNN leases. The NOI is $370,241. The asking price is $3.9 million. Romme Real Estate has the listing to sell 3.43 acres of land in KS.
The site is located adjacent to a new Fairfield Inn and Applebee’s restaurant near
the intersection of I-70 and US 813. The site is ideal for a restaurant and is suitable
for a 15,000 sq.ft. building. A large retail development is proposed nearby. The asking
price is $580,000. Hiffman Shaffer Associates, Inc. represented Amoco in the
disposition of nine surplus properties in the Chicago, IL market. The sites disposed
include: a 59,392 sq.ft. site in Bolingbrook acquired by Aetna Development; a 50,000
sq.ft. site in Frankfort acquired by The Taxman Corp.; a 37,000 sq.ft. site with a 2,400
sq.ft. building in Zion acquired by a private investor; a 22,500 sq.ft. site in Lombard
acquired by White Castle; a 19,063 sq.ft. site in Chicago acquired by Leona’s Italian
Restaurant to be used as a parking lot; a 15,675 sq.ft. site with a 1,400 sq.ft. building
in Oak Lawn by the J.J. Peppers convenience store chain; a 14,000 sq.ft. site in
Schaumburg acquired by J.J. Peppers; a 15,000 sq.ft. site with a 2,500 sq.ft. building in
Lansing acquired by Preferred Development and a 10,500 sq.ft. site with a 1,200 sq.ft.
building in Evanston by a private investor who plans to redevelop the site into a currency
exchange location. NAI Welsh Companies represents an investor in the market to acquire
drug store sites, such as Rite Aid, Walgreens and CVS, nationwide. The investor will also
consider Kmart stores to complete a 1031 exchange. The investor has $7 million available
and will consider using leverage to acquire sites. Arroyo & Coates has the listing to sell a NNN 20-year ground
lease to Toys ‘R Us for a Babies ‘R Us store in North Attleborough, MA. Only the
land is for sale in this transaction and the tenant recently opened a 38,000 sq.ft. store
on the site. The store is located in front of a new 123,000 sq.ft. Target store that is
expected to open during Summer. The lease commenced at the beginning of this month and the
tenant is responsible for all expenses associated with the operation of the building,
including roof and structure. The rent escalates by 10% every five years and 12.5% in each
of the four, five-year renewal options. Upon termination of the lease, the ownership of
the improvements reverts to the owner of the land. Also of note is that build-to-suit
rents in the immediate vicinity of this property are in the range of $17-$19 NNN per
square annually. Toys ‘R Us is only paying $9 psf. The asking price is $4.56 million. The Eagle Group is in the market to acquire supermarket or mass
merchant anchored shopping centers nationwide. Properties of interest should have GLAs of
at least 50,000 sq.ft. and have a ratio of anchors to GLA of at least 75%. All cash deals
are possible. Commercial Real Estate Specialists, Inc. has the listing to sell
Poplar Bluff Square Shopping Center in Popular Bluff, MO. The 100,000 sq.ft. project is
anchored by IGA supermarket, Heilig Meyers and Big Lots. The asking price is $3.1 million. WM Riley & Company has the listing to sell a 48,017 sq.ft.
shopping center in Tacoma, WA. The project is 100% occupied and the NOI is $460,348. The
asking price is $5 million. Premier Brokerage has the listing to sell three Kmart-anchored
shopping centers located in the Midwestern region. The centers are located in small towns
and their total GLA is 459,000 sq.ft. The asking price is $25 million. ReMax Commercial has the listing to sell 3.4 acres of land in
Haverhill, MA. The site is located adjacent to a Burger King restaurant and a Dunkin
Donuts. The asking price is $875,000. Brynhaven Development has the listing to sell 14.8 acres of land at
the southeast quadrant of I-70 and Hilliard-Rome Road in Columbus, OH. The site is the
last undeveloped quadrant of the intersection and has a traffic count of 76,000 vehicles
per day. The site has all utilities and is zoned for shopping centers, restaurants and
motels. The asking price starts at $350,000 per .75 acres. James E. Hanson Co., Inc. represents an investor in the market to
acquire shopping centers having GLAs of at least 100,000 sq.ft. nationwide. The
investor’s objective is to create value by retrofitting the center, leasing vacant
space or doing additional development. Mergers & Acquisitions CML Group (978-264-4155), which filed Chapter 11 in December and sold its NordicTrack division to Icon Health & Fitness, recently sold its Smith & Hawken gardening tools catalog/retail business to CML’s secured creditors, a group of investors that includes DDJ Capital, for $53 million. Piccadilly Cafeterias (504-293-9440) recently signed a definitive agreement to sell its seven Ralph & Kacoo’s restaurants to Cobb Investment Co. for $21 million. Staples, Inc. (508-370-8500) recently completed the purchase of Claricom Holdings, Inc. for $140 million in cash. Claricom Holdings is an industry leader in providing telecommunications products and services to businesses. Its 1998 revenues were approximately $200 million. E-Z Mart (903-832-6502) recently acquired the 37-unit Lone Star Ice & Food Stores convenience store chain from Ice-Stores Inc. The deal raises E-Z Mart’s store count to 427 stores in AR, KS, LA, MO, OK and TX. E-Z Mart is currently negotiating to acquire a 100-unit chain whose name has not been released. Men’s Wearhouse, Inc. (510-657-9821) and K&G Men’s Center, Inc. (404-351-7987) recently executed a definitive agreement to merge a subsidiary of Men’s Wearhouse with K&G Men’s Center in a stock deal valued at up to $133 million. Men’s Wearhouse plans to integrate its Value Priced Clothing (VPC) Division into the K&G operations. The VPC Division operates 20 SuitMax stores in Los Angeles, CA; Dallas, Houston and San Antonio, TX; New Orleans, LA and Atlanta, GA and as Suit Warehouse in Detroit, MI. Men’s Wearhouse operates 411 Men’s Wearhouse stores in the U.S., 115 Moores stores in Canada and the U.S. and 20 stores in its Value Priced Clothing Division. K&G Men’s Center, Inc. operates 33 stores in 16 states. Wolf Camera (404-633-9000) recently acquired The Photo Pros chain of camera stores in Kansas City, MO. The Photo Pros operates stores trading as Fox Photo and Photo Pros. Terms of the sale were not disclosed and Wolf plans to convert the stores to its name and format later this year. Wolf Camera currently operates more than 750 locations in 34 states. Trak Auto Corporation (301-731-1200) and HalArt, L.L.C. recently entered into a definitive merger agreement for HalArt to acquire Trak Auto. The agreement provides for the acquisition by HalArt of all 5.9 million outstanding shares of Trak Auto common stock for approximately $53.2 million. Trak Auto currently operates 175 stores, including 91 Super Trak stores, 58 Classic Trak stores and 26 Super Trak Warehouse stores in the Washington, D.C.; Richmond, VA; central PA; Chicago, IL and Milwaukee, WI markets. HalArt is a privately held company controlled by Arthur Hawkins, former chairman, CEO and president of Exide Corp. Based in MI, HalArt is pursuing a roll-up strategy in the auto parts retailing market and intends to combine Trak Auto with other auto parts companies it is seeking to acquire in the Mid-Atlantic, Midwestern and Northeastern regions. FFP Marketing Company, Inc. (817-838-4707) recently acquired the operations of 25 convenience stores and truck stops formerly owned by Circle K Stores, Inc., a subsidiary of Tosco Corporation. FFP Marketing purchased operations at 11 of the stores directly from Circle K at an undisclosed price and now operates those stores under existing long term leases from third parties. FFP Partners, L.P. purchased the other 14 stores in fee from Circle K and immediately leased them to FFP Marketing under long term leases. All 25 of the stores are located in TX. The purchases were financed with third party indebtedness payable over 15 years. FFP Marketing currently owns and operates approximately 220 convenience stores, 13 truck stops and 200 retail fuel concessions at independently operated convenience stores in TX and 10 other central, southern and southwestern states. Kohl’s Corp. (414-703-7000) recently announced that it has reached an agreement with Caldor Corp. to acquire 33 former Caldor stores for $142 million. Of the stores being acquired, 12 are located in NY; 11 are in NJ, nine in CT and one in MD. Kohl’s expects to open 32 remodeled stores in the NYC metropolitan area and one outside Baltimore, MD by the Spring of 2000. Ames Department Stores Inc. (860-257-2000) plans to acquire seven former Caldor stores in CT and one in MA. Ames is also buying a Caldor distribution center in Westfield, MA. Ames is acquiring the stores and distribution center for $40 million and plans to begin converting them to its format as soon as the stores are closed. Ames is planning to open the stores during September. Wal*Mart Stores Inc. (501-273-4000) plans to acquire 12 former Caldor stores in CT, MA and NY for $72.9 million. Kmart Corp. (248-643-1000) also plans to acquire 11 former Caldor stores in DE, MA, NJ and NY for $75 million. The company plans to convert the acquired stores to its Big Kmart format. Following these transactions, a total of 81 former Caldor stores will still be available. Lead Sheet Meineke, Inc. Automotive The 900-unit chain operates locations throughout North America. The automotive service centers occupy spaces of 2,800 sq.ft. in freestanding facilities. Preferred anchors include Wal*Mart and supermarkets. Plans call for at least 100 openings in the coming 18 months. Expansion will take place nationwide. Leases running 15 years are typical and the company is franchising. Town Fair Tire Centers Inc. Automotive The 50-unit chain operates locations in CT, MA and RI. The automotive stores, specializing in tires and wheels, occupy spaces of 6,000 sq.ft. to 12,000 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include Kmart and TJ Maxx. Plans call for five openings in the coming 18 months. Expansion will take place in MA and NH. Linens ‘N Things Bed/Bath/Linens The 190-unit chain operates locations nationwide. The stores, selling linens for the home, occupy spaces of 30,000 sq.ft. to 40,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for at least 50 openings in the coming 18 months. Expansion will take place nationwide. The company cites Bed Bath & Beyond as competition. Kirlin’s Hallmark, Inc. Cards & Gifts The 104-unit chain operates locations in IL, IN, IA, KY, MI, MO, OH, OK, TN and WI. The stores, selling Hallmark cards and gifts, occupy spaces of 4,000 sq.ft. to 5,500 sq.ft. in regional malls and strip centers. Preferred anchors include department stores and supermarkets. Plans call for as many as 12 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running five to ten years are typical. SSG Corp. Convenience Store The 43-unit chain operates locations in MN and WI. The convenience stores, which also sell gasoline, occupy spaces of 4,800 sq.ft. in freestanding facilities, outlet and strip centers. Preferred anchors include Wal*Mart and supermarkets. Plans call for the opening of four units in the coming 18 months. Expansion will take place in the existing markets. Leases running 20 years, with options, are typical and the company cites Holiday and Super America as competition. New World Coffee, Inc. Food The 332-unit chain operates locations CA, CT, DE, FL, GA, MD, MA, MI, NV, NJ, NY, NC, OH, PA, RI, SC, TX, VA, Washington, D.C., Germany and Israel. The restaurants, offering bagels and coffee, occupy spaces of 1,500 sq.ft. to 1,800 sq.ft. in downtown store fronts, entertainment centers, freestanding facilities, regional malls and strip centers. Preferred anchors include department stores and supermarkets. Plans call for 25 New World Coffee openings and as many as 60 Manhattan Bagel openings in the coming 18 months. Expansion will take place in the Northeastern region as well as in CA and FL. Preferred demographics include a population of 60,000 within three miles earning $60,000 as the average income. Leases running five years, with options, are typical and the company, which is franchising, cites Bruegger’s, Einstein and Starbucks as competition. Outback Steakhouses, Inc. Food The 519-unit chain operates locations nationwide. The steakhouses occupy spaces of 6,200 sq.ft. in freestanding facilities and strip centers. Preferred anchors include Kmart, TJ Maxx, Wal*Mart and supermarkets. Plans call for 100 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 100,000 within five miles earning $35,000 as the average income. Leases running five to ten years are typical. Sybra, Inc. Food The 180-unit chain operates locations in CA, FL, MD, MI, PA, TX and VA. The fast food restaurants, specializing in roast beef, occupy freestanding facilities on one acre of land. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for as many as 35 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 25,000 within three miles earning $40,000 as the average income. Leases running 10 years, with options, are typical. Ashley Avery LLC Gifts The 34-unit chain operates locations in AZ, CA, FL, GA, ID, IL, KS, KY, LA, MD, NE, OR, PA, TX and WA. The stores, selling gifts and collectables, occupy spaces of 900 sq.ft. to 1,200 sq.ft. in regional malls. Preferred co-tenants include upscale fashion retailers. Plans call for 18 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years, with tenant allowances, are typical and the company is franchising. Kirkland’s Inc. Gifts The 198-unit chain operates locations in AL, AR, FL, GA, IL, IN, IA, KS, KY, LA, MD, MI, MS, MO, NE, NM, NY, NC, OH, OK, PA, SC, TN, TX, VA, WV and WI. The stores, selling gifts and home accessories, occupy spaces of 4,200 sq.ft. to 4,500 sq.ft. in regional malls. Plans call for at least 30 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 250,000 within 10 miles earning $40,000 as the average income. Leases running 10 years are typical. Aaron Rents, Inc. Home Furnishings The 430-unit chain operates locations nationwide. The stores, offering furniture, electronics and appliances on a rent-to-own basis, occupy spaces of 7,000 sq.ft. to 20,000 sq.ft. in freestanding facilities and strip centers. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for as many as 100 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 60,000 within five miles earning $30,000 as the average income. Leases running five years are typical and the company, which is franchising, cites Cort, Rent-A-Center, Home Choice and Heilig-Meyers as competition. Krause’s Furniture, Inc. Home Furnishings The 90-unit chain operates locations in AZ, CA, CO, CT, FL, IL, NV, NJ, NM, NY, TX and WA. The furniture stores occupy spaces of 10,000 sq.ft. to 12,000 sq.ft. in downtown store fronts, freestanding facilities and power centers. Plans call for 37 openings in the coming 18 months. Expansion will take place in GA, MN and OR. Preferred demographics include a population of 300,000 within five miles earning $40,000 as the average income. Leases running 10 years are typical and the company cites Ethan Allen and La-Z-Boy as competition. Hannoush Jewelers Jewelry The 45-unit chain operates locations in CT, ME, MA, NH and NY. The jewelry stores occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in power centers and regional malls. Plans call for 10 openings in the coming 18 months. Expansion will take nationwide. Premier Concept Inc. Jewelry The 38-unit chain operates locations in AZ, CA, CO, FL, LA, MD, MO, NJ, NV, VA, WA and Washington, D.C. The stores, selling costume and bridge jewelry, occupy spaces of 600 sq.ft. in downtown store fronts and entertainment centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in FL and Chicago, IL. Preferred demographics include a population of one million within 10 miles earning $60,000 as the average income. Leases running seven years are typical and the company cites department stores as competition. Sharon Luggage Ltd. Luggage The 15-unit chain operates locations in NC and SC. The luggage stores occupy spaces of 3,000 sq.ft. to 8,000 sq.ft. in freestanding facilities, power centers and regional malls. Preferred anchors include Restoration Hardware, Talbots and Williams Sonoma. Plans call for two openings in the coming 18 months. Expansion will take place in NC, SC or VA. Preferred demographics include a population of 100,000 within 10 miles earning $60,000 as the average income and the company cites department stores and luggage specialty retailers as competition. Newbury Comics, Inc. Music The 21-unit chain operates locations in ME, MA, NH and RI. The stores, selling pre-recorded music, music videos, t-shirts, comic books and rock and pop culture books, occupy spaces of 5,000 sq.ft. in entertainment centers, freestanding facilities, power and strip centers. Preferred anchors include Home Depot. Plans call for as many as six openings in the coming 18 months. Expansion will take place throughout New England. Preferred demographics include a population of 100,000 within five miles earning at least $60,000 as the average income. Leases running five years, with a five year option, are typical and the company cites HMV, Tower and Virgin as competition. Brown Group, Inc. Shoes The 840-unit chain operates locations nationwide. The stores, selling branded footwear for the family, occupy spaces of 5,000 sq.ft. to 8,000 sq.ft. in a variety of real estate settings. Preferred anchors include Kohl’s, Marshall’s, Old Navy, Ross Dress For Less, TJ Maxx and Target. Plans call for 120 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 100,000 within five miles earning $40,000 as the average income. Leases running five years are typical and the company cites Kohl’s, Rack Room, Shoe Carnival and department stores as competition. Botanical Scents of Nature Enterprises Corp. Specialty The 80-unit chain operates locations nationwide. The concept sells fragrances and aromatherapy oils in 10 x 10 cart locations in regional malls. Plans call for at least 40 openings in the coming 18 months. Expansion will take place nationwide. Cash America International, Inc. Specialty The 460-unit chain operates locations in AL, CO, FL, GA, KY, LA, MO, NC, OH, OK, SC, TN and TX. The pawn shops occupy spaces of 4,000 sq.ft. to 6,000 sq.ft. in freestanding facilities. Plans call at least 15 openings in the coming 18 months. Expansion will take place in FL and Chicago, IL. The Disney Store, Inc. Specialty The 695-unit chain operates locations worldwide. The stores, selling Disney-branded merchandise, occupy spaces of 4,000 sq.ft. in downtown store fronts, entertainment centers and regional malls. Growth opportunities are sought nationwide. Aldi, Inc. Supermarket The 520-unit chain operates locations in CT, IL, IN, IA, KS, MD, MI, MO, NJ, NY, NC, OH, PA, SC and WI. The limited assortment grocery stores occupy spaces of 15,000 sq.ft. in freestanding facilities. Plans call for 40 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 75,000 within three to five miles earning $35,000 as the average income. Leases running 30 years are typical. Richfood Holdings Supermarket The 100+-unit chain operates locations in MD, PA, VA and Washington, D.C. The supermarkets occupy spaces of 15,000 sq.ft. for its Pack ‘n Save concept and 40,000 sq.ft. to 60,000 sq.ft. for its other concepts in freestanding facilities, power and strip centers. Plans call for at least 25 openings in the coming 18 months. Expansion will take place in the existing markets. Capital Video Video The 28-unit chain operates locations in CT, ME, MA, NY and RI. The video stores occupy spaces of at least 2,500 sq.ft. in downtown store fronts, freestanding facilities, outlet and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running five years are typical. Lease Signings Jordon Perlmutter & Co. (303-595-9919) leased space to Eagle Hardware and Garden, Mann Theatres, Borders, Ross Dress for Less, Ulta 3 Cosmetics and Salon, Gunther Toody’s and Guido’s Italian Wedding Restaurant at The Marketplace at Northglenn in Denver, CO. Investment Management Associates (305-661-0110) leased 4,800 sq.ft. to Blockbuster Video and 1,437 sq.ft. to Check N Go at Quail Heights Plaza in Coral Gables, FL. McClinton & Company (334-270-9653) leased space to Tony Roma’s Restaurant at Montgomery Commons Shopping Center in Montgomery, AL. Mid-America Asset Management Co. (630-954-7300) leased 5,000 sq.ft. to Modern Woman at Stratford Plaza in Bloomingdale, IL and 1,605 sq.ft. to GNC at Chase Plaza in Buffalo Grove, IL. Starwood-Heller LLC (201-945-9555) leased space to Bob’s Stores and Bed Bath & Beyond at a former Rickles location in Brick Township, NJ. Breslin Realty Development Corp. (516-741-7400) leased 10,720 sq.ft. to CVS in Woodmere, NY. Mountain Development Corp. (609-397-7680) leased 63,000 sq.ft. to National Amusements Showcase Cinemas at Eastfield Mall in Springfield, MA. Developers Diversified Realty Corporation (440-247-4700) leased 16,000 sq.ft. to Petco at The Family Center at Fort Union in Midvale, UT. North American Properties (770-645-6566) leased 49,241 sq.ft. to Toys
R Us, 34,050 sq.ft. to Linens ‘N Things, 23,838 sq.ft. to Michaels,
23,505 sq.ft. to OfficeMax, 23,000 sq.ft. to Borders Books, 22,485 sq.ft. to
PetsMart, 9,500 sq.ft. to Pier 1 and space to TGI Friday’s at The
Marketplace at Mill Creek in Atlanta, GA; 24,000 sq.ft. to Staples and 17,000
sq.ft. to Just For Feet at Chesterfield Marketplace in Richmond, VA and
7,000 sq.ft. to The Sport Shoe and 4,200 sq.ft. to Souper Salad at Lakeshore
Marketplace in Gainesville, GA. New England Retail Properties, Inc. (860-529-9000) leased 9,000 sq.ft. to World Gym at Great Meadow Shopping Center in Rocky Hill, CT. Real Estate Professionals Making The News Cole National Corporation (440-449-4100) announces the appointment of George Bernstein, Jr. as executive vice president of strategic planning and chief financial officer. He is currently senior vice president and general manager of Cole National’s Things Remembered, Inc. division. Prior to joining Cole National, he served as president and CEO of AVC/NuVision, an optical retailer with 170 stores acquired by Cole during Fall 1997. Prior to that, he was president and CEO of Hess Shoes. Cole National, including Pearle franchisees, has more than 2,800 locations in the U.S., Canada, Puerto Rico and the Virgin Islands, as well as a 24% investment in Pearle Europe, which has 519 optical stores in Austria, Belgium, Germany and The Netherlands. Horizon Group Properties, Inc. (312-917-8877) announces the promotion of Andrew Pelmoter to the position of senior vice president, leasing. Pelmoter, who joined HGP in 1997 as director of leasing, will oversee leasing the company’s portfolio of factory outlet and power centers. Prior to joining HGP, Pelmoter was with the Mills Corporation where he held numerous positions including director of leasing, director of lease administration and senior leasing executive. Collier Arnold (727-442-7184) announces that Amy Strong has joined the company as a retail specialist in management and leasing. Strong is formerly the director of retail leasing for Sterling Equities, Inc. Exclusives The Schultz Management Services Group (732-855-0001) has been named the exclusive leasing agent for The Shops at Commerce Center, a 50,000 sq.ft. project in North Brunswick, NJ. Investment Management Associates (305-661-0110) has been named the exclusive leasing agent for Ponte Verda Pointe in Ponte Verde Beach, FL by IMA Ponte Verda, Inc. The 74,000 sq.ft. project, which is anchored by The Fresh Market, has spaces from 1,100 sq.ft. to 9,500 sq.ft. available for lease. Catron Real Estate, Inc. (301-249-6673) has been named the exclusive leasing agent of Marlboro Village Center in Upper Marlboro, MD. The 110,000 sq.ft. project is anchored by a supermarket and has spaces from 1,300 sq.ft. to 8,000 sq.ft. available for lease. Arnold J. Eisenberg, Inc. (216-831-6773) has been named the exclusive leasing agent of Americana Shopping Center of Boardman in Boardman, OH The 160,000 sq.ft. project is anchored by Jo-Ann Etc. and has spaces from 6,500 sq.ft. to 16,000 sq.ft. available for lease. The company has also been named exclusive broker for CLK Restaurant Corp. which does business as Quiznos Classic Subs. The company is seeking 12 spaces running 1,200 sq.ft. to 1,600 sq.ft. in all types of real estate settings throughout northeastern OH. LMS Commercial Real Estate (717-569-9373) has been named the exclusive leasing agent for Peebles/Festival Plaza in Gettysburg, PA. The 110,000 sq.ft. project, which is anchored by Peebles Department Store and CVS, has spaces of 1,500 sq.ft. and 9,000 sq.ft. available for lease. The company has also been named the exclusive tenant representative for GNC. The company is seeking in-line spaces running 1,200 sq.ft. to 1,600 sq.ft. throughout central PA. Royal Properties, Inc. (914-237-3403) has been named by Subway Fast Food Restaurants as its exclusive representative in Westechester, Putnam and Rockland counties in NY. Subway plans to open as many as 18 restaurants in these markets this year. Spaces of interest should be between 800 sq.ft. and 1,200 sq.ft. in downtown store fronts, power and strip centers. Sources of Financing Holliday Fenoglio Fowler, L.P. (561-241-6500) recently arranged $1.56 million in acquisition financing for the site of the Woodhaven Village Square, a planned shopping center in Woodhaven, MI. The 300,000 sq.ft. project, which will be anchored by Home Depot. is being developed by Rosen Associates Development, Inc. and is expected to open during November. CKE Restaurants, Inc. (714-774-5796) recently completed the amendment and restatement of its senior credit facility, led by Paribas, to provide for a $500 million revolving credit facility, which includes a $75 million letter of credit sub-facility. The facility will be reduced after two years by at least $50 million each year, and will mature in February 2004. As a result of the amendment and the closing of the previously announced $200 million senior subordinated note offering, available borrowing capacity under the senior credit facility is approximately $300 million. L.J. Melody & Company (713-787-1900) recently arranged $44 million in fixed-rate financing for Topanga Plaza in Conoga Park, CA. CIGNA provided the funding on behalf of the borrower, Westfield America, Inc. Topanga Plaza is a two-level, one million sq.ft. project anchored by Nordstrom, Montgomery Ward, Robinson’s-May and Sears. Finova Realty Capital (877-825-4810) recently arranged a $14 million loan for a local limited liability corporation to refinance Midtown Shopping Center in Los Angeles, CA. The financing is secured by the 160,000 sq.ft. project, which is anchored by Ralphs, Sav-On Drugs and Orchard Supply Hardware. Underwritten at 80% loan to value, the fixed-rate financing features a 10-year term amortized over 30 years. Space Place Arizona Hoover- River Oaks Village, a 37,514 sq.ft. specialty
center, has a 1,168 sq.ft. space available for lease. Demographics include a three-mile
population of 34,247 earning $44,924 as the average income. The site is located near Riverchase
Galleria. California Alamdea- South Shore Center is anchored by Mervyn’s,
Lucky’s, Ross, OfficeMax and Safeway. The 565,957 sq.ft. project has
10,000 sq.ft. available for lease. Demographics include a five-mile population of 144,915
earning $57,101 as the average income. Florida Miami- Coral Park Shopping Center is anchored by AutoZone,
Radio Shack and McDonald’s. The 47,000 sq.ft. project has a space of 3,200
sq.ft. and a 17,760 sq.ft. former grocery store space available for lease. Demographics
include a three-mile population of 187,000 earning $49,058 as the average income. Massachusetts Billerica- AutoZone Plaza is anchored by AutoZone.
The 16,000 sq.ft. project has a 6,000 sq.ft. space, which is divisible, available for
lease. Demographics include a three-mile population of 39,400 earning $63,000 as the
average income. Retailers in the area include Market Basket, Walgreens and Wendy’s.
In Revere- A 4,300 sq.ft. space is available for lease at a two-tenant
freestanding building fronting VFW Parkway. The co-tenant is Laundromax.
Demographics include a three-mile population of 161,000 earning $40,000 as the average
income. The site is located near Staples, Stop & Shop and Marshalls. In Springfield-
Breckwood Shoppes is an unanchored 28,000 sq.ft. strip center that has spaces of
1,100 sq.ft. and 4,217 sq.ft. available for lease. Demographics include a three-mile
population of 68,000 earning $43,000 as the average income. The site is located adjacent
to Western New England College. Ohio Medina- Medina Marketplace is anchored by Finast
Friendly Market. The 75,000 sq.ft. project has spaces of 1,600 sq.ft., 2,000 sq.ft.
and 9,600 sq.ft. available for lease. Demographics include a three-mile population of
25,359 earning $57,850 as the average income. |