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February 5, 1999
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The Dealmakers Issue Number 4 for the week of February 5, 1999 Department Stores Expanding Nationwide Elder-Beerman Corp. trades as Elder-Beerman at 61 locations
in IL, IN, KY, MI, OH, PA and WV. The department stores occupy spaces of 75,000 sq.ft. to
150,000 sq.ft. in regional malls, power and strip centers. Plans call for as many as 10
openings in the coming 18 months. Expansion will take place in the existing markets.
Preferred demographics include a population of 35,000 within five miles earning $45,000 as
the average income. Leases running 10 to 20 years are typical. The company recently
acquired the Stone & Thomas chain. Stein Mart operates 185 stores in AL, AR, AZ, CA, CO, FL, GA, IL,
IN, IA, KS, KY, LA, MS, NE, NV, NY, NC, OH, OK, PA, SC, TN, TX, VA and WI. The department
stores occupy spaces of 36,000 sq.ft. in regional malls and strip centers. Plans call for
30 openings in the coming 18 months. Expansion will take place nationwide. Preferred
demographics include a population of 120,000 within five miles earning $50,000 as the
average income. Value City Department Stores trades as Value City at 99
locations in DE, GA, IL, IN, KY, MD, MI, MO, NJ, NC, OH, PA, TN, VA, WV and Washington,
D.C. The department stores occupy spaces of 85,000 sq.ft. in regional malls, power and
strip centers. Plans call for 12 openings in the coming 18 months. Expansion will take
place in IL, MD, MI and Washington, D.C. Preferred demographics include a population of
75,000 within three miles earning $35,000 as the average income. Leases running 10 years,
with options, are typical. Ames Department Stores, Inc. trades as Ames at 450 locations
in CT, DE, IL, IN, KY, ME, MD, MA, NH, NJ, NY, NC, OH, PA, RI, TN, VT, VA, WV and
Washington, D.C. The department stores occupy spaces of 65,000 sq.ft. to 85,000 sq.ft. in
regional malls and strip centers. Plans call for as many as 10 openings in the coming 18
months. Expansion will take place in the Mid-Atlantic and Northeastern regions. The
company recently acquired the Hills Department Store chain.
Winners & Loers in The Race for Holiday Sales In what is evolving into an annual part of The Dealmakers comprehensive coverage of the retail real estate world, we once again present an overview on how retailers fared during the 1998 Christmas selling season. In a survey conducted by TeleCheck, which tracks retail sales paid by personal checks--accounting for about a third of all retail spending--sales increased 1.9% nationwide over 1997's results. Areas not faring well in sales included the Bay Area of CA, Seattle, WA and Boston, MA. Recently, John Riordan, president of the International Council of Shopping Centers, said at a conference in British Columbia, Canada that North American retailers will face an economic slowdown this year, but no one should prepare for a market collapse because consumers will still spend money. "It doesn’t look like we’re falling off a cliff," Riordan added. What follows is an overview of how individual retailers fared during the 1998 holiday season. While it is not possible to include every retailer, we have included 71 retailers operating more than 52,300 stores generating more than $51 billion in sales during December alone. Worthy of note is that 60 of the 71 retailers (85%) reported an increase in December sales while 23 (32%) reported a decrease in comparable store sales. Many of the 23 retailers reporting lower comp store sales actually showed an increase in total sales for the month. Overall, retailers of casual young apparel fared well, while department stores didn’t do as well, despite running many sales. Apparel Retailers American Eagle Outfitters, Inc. (724-776-4857) reported that its December sales increased 35.3% to $116.9 million from $86.4 million last year. Comparable store sales jumped 20.9%. The stores sell all-American casual apparel, accessories and footwear for men and women between the ages of 16 and 34. The company currently operates 386 stores in 41 states. Filene’s Basement Corp. (617-348-7156), which operates 51 stores located primarily in the Northeastern and Midwestern regions, reported that its December sales increased 13% to $88.7 million from $78.7 million last year. Comparable store sales increased three percent for the month. The stores sell branded men’s and women’s apparel at prices 20% to 60% below traditional department store and specialty store regular prices. Chico’s FAS, Inc. (941-277-6200), which operates and franchises 160 stores in 35 states that sell exclusively designed, private-label women’s casual clothing and related accessories, reported that its December sales increased 57.3% to $11.3 million from $7.2 million last year with comparable store sales up 42.1%. S&K Famous Brands, Inc. (804-346-2500) reported that its December sales increased five percent to $23.2 million from $22 million last year. Comparable store sales slipped three percent. The company operates 233 stores in 27 states that sell a complete line of men’s apparel generally priced 20% to 40% below department and specialty store regular prices. Spiegel, Inc. (708-769-2177) reported that its December sales increased three percent to $453.2 million from $441.3 million last year. Comparable store sales in its Eddie Bauer division increased one percent for the period. The company operates 550 specialty apparel stores nationwide. Ross Stores, Inc. (510-505-4400) reported that its December sales increased eight percent to $301 million from $278 million last year with comparable store sales up two percent. The company currently operates 350 stores which sell branded apparel and apparel-related merchandise for the entire family at prices averaging 20% to 60% less than department and specialty stores. Gadzooks, Inc. (972-307-5555) reported that its December sales increased 7.4% to $37.4 million from $34.8 million last year. However, comparable store sales decreased 11.1% for the period. The company operates 312 mall-based young men’s and women’s casual apparel stores in 32 states east of the Rocky Mountains. The Buckle, Inc. (216-934-1415) reported that its December sales increased 22.4% to $56.3 million from $46 million last year. Comparable store sales increased 11.2% for the period. The company operates 222 young men’s and women’s casual apparel stores in 29 states. Gap, Inc. (415-952-4400), which operates 2,430 stores nationwide, reported that its December sales increased 41% to $1.634 billion from $1.16 billion last year. Comparable store sales increased 19% for the month. The TJX Companies, Inc. (508-390-2230) reported that its December sales increased nine percent to $1.08 billion from $992 million last year. Comparable store sales increased four percent. The company operates off-price apparel and home fashion stores trading as TJ Maxx (607), Marshalls (476), HomeGoods (35) and A.J. Wright (6), domestically. Goody’s Family Clothing, Inc. (423-966-2000) reported that its December sales increased 10.7% to $193.9 million from $175.2 million with comparable store sales down 3.4% for the month. The stores sell moderately-priced family apparel at 257 stores in AL, AR, FL, GA, IL, IN, KY, MS, MO, NC, OH, SC, TN, TX, VA and WV. Barneys New York (212-239-7300), which is operating under Chapter 11 protection, reported that its December sales increased slightly to $41.9 million from $41 million last year. Comparable store sales increased 6.1% for the month. The company operates seven full price stores and 13 outlet stores. Urban Outfitters, Inc. (215-564-2313) reported that its December sales increased 35% to $28.2 million from $20.9 million last year. Comparable store sales jumped 12% for the month. The company currently operates 44 specialty apparel stores. Pacific Sunwear (714-693-8066) reported that its December sales increased 27% to $55.2 million with comparable store sales up 4.2% for the month. Edison Brothers Stores, Inc. (314-331-6000) reported that its December sales increased 1.1% to $150.1 million from $148.4 million last year. Comparable store sales increased 4.8% for the month. The company operates more than 1,600 stores trading as 5-7-9, Riggings, JW, Coda, Oaktree, Repp Ltd. Big & Tall, Bakers and Wild Pair. The Dress Barn, Inc. (914-369-4600), which operates 674 specialty women’s apparel stores nationwide, reported that its December sales increased one percent to $71.3 million from $70.3 million last year. Comparable store sales fell four percent for the period. One Price Clothing Stores, Inc. (864-433-8888) reported that its December sales increased 9.9% to $41.9 million from $38.2 million last year. Comparable store sales increased 17.1% for the month. The company currently operates 622 women’s apparel stores in 27 states. Recently, the company began selling men’s apparel at 32 of its existing stores. Lands’ End, Inc. (800-332-0117) reported that its holiday sales increased 8.5% to $412 million from $380 million last year. Despite the positive sales news, the company recently announced that it plans to close three outlet stores and liquidate its Willis & Geiger division. Paul Harris Stores, Inc. (317-293-3900), a specialty retailer of private label women’s apparel operating 306 stores in 29 states, reported that its December sales fell 4.5% to $41.5 million from $43.5 million last year. Comparable store sales dropped 14.1% for the period. Gantos, Inc. (616-949-7000), another specialty retailer of women’s wear and accessories operating 115 stores in 23 states, reported that its net sales for December fell one percent to $23 million with comparable stores sales down one percent as well. Dress sales, which slipped 13%, was blamed for the overall sales decrease. The Cato Corporation (704-551-7586) reported that its December sales decreased two percent to $70.4 million from $72 million last year. Comparable store sales fell six percent. The company operates 732 stores in 21 states selling women’s apparel and trading as Cato Fashion/Cato Plus and It’s Fashion! The Limited, Inc. (614-479-7000), which operates more than 3,600 stores and also owns 85% or Intimate Brands, Inc. which operates another 1,893 stores, reported that its overall net sales decreased two percent to $1.839 billion from $1.881 billion last year. Comparable store sales were up four percent for the period. (Ed. Note: The Limited was placed in the apparel category because eight of its ten tradenames sell apparel). Charming Shoppes, Inc. (215-245-9100), which operates 1,164 specialty women’s apparel stores trading as Fashion Bug and Fashion Bug Plus in 44 states, reported that its December total sales fell to $142.5 million from $144.8 million last year. Comparable store sales fell three percent. Stage Stores, Inc. (713-669-2672) reported that its holiday sales fell 3.6% to $296.7 million from $307.7 million the previous year. Comparable store sales fell 7.8% for the period. The company operates 680 stores in 34 states trading as Stag e, Bealls and Palias Royal, which offer brand name family apparel and accessories. Department Stores Gottschalks Inc. (209-434-8000) reported that its December sales increased 26.1% to $113.3 million from $89.9 million last year. Comparable store sales increased 5.4% for the month. The company said that top performing categories included jewelry, cosmetics, men’s and women’s better sportswear, young men’s apparel, children’s apparel, luggage, housewares, gifts and collectibles. The company currently operates 46 department stores and 21 specialty stores in CA, NV, OR and WA. Kohl’s Corp. (414-703-7000) reported that its December sales increased 20.6% to $682.8 million from $566.1 million with comparable store sales up 6.7% for the month. The company operates 214 stores. The May Department Stores Company (314-342-6300), which operates 395 stores in 32 states trading as Lord & Taylor, Hecht’s, Foley’s, Robinson-May, Kaufmann’s, Filene’s, Famous-Barr, L.A. Ayres, The Jones Store and Strawbridges, reported that its December sales increased 8.9% to $2.65 billion from $2.43 billion last year. The Bon-Ton Stores, Inc. (717-757-7660) reported that its December sales increased 1.9% to $128.5 million from $126 million last year. Comparable store sales fell slightly by 0.1%. The company operates 65 stores in secondary markets in MD, MA, NJ, NY, PA and WV. The Elder-Beerman Stores Corp. (937-296-2805) reported that its December department store sales increased 16.6% to $125.2 million with comparable store sales up 1.1% for the month. The company operates 60 department stores in IL, IN, KY, MI, OH, PA, WV and WI. Dayton Hudson Corporation (612-370-6948) reported that its December net retail sales increased 11.7% to $5.26 billion from $4.71 billion last year. Comparable store sales increased 6.5% for the month. By division, comparable store sales increased seven percent at Target; by 5.2% at Mervyn’s and by 4.6% in its department stores. The company operates 1,182 stores in 41 states, including 851 Target stores, 268 Mervyn’s stores and 63 department stores. Sears, Roebuck and Co. (847-286-0545) reported that its December total revenues decreased 1.8% for the month to $5.58 billion from $5.68 billion last year. Comparable store sales fell 0.3% for the month. (Ed. Note: Sears’ sales includes all of its divisions which include its full-line department stores, automotive, furniture and hardware stores). J.C. Penney Company, Inc. (972-431-1000) reported that its December department store sales fell 9.1% to $2.61 billion from $2.88 billion last tear. Comparable store sales fell 7.6% for the month. Discount Stores ShopKo Stores, Inc. (920-429-7234) reported that its December consolidated sales increased 12.3% to $451.6 million from $402 million last year. Comparable store sales increased 4.6% for the month. The company operates 147 stores in 16 states primarily in the Midwestern, Pacific Northwestern and Western Mountain regions. Wal*Mart Stores, Inc. (501-273-4000) reported that its December sales increased 15.8% to $19.1 billion from $16.5 billion last year. Comparable store sales increased 9.1% for the month. Value City Department Stores, Inc. (614-471-4722), which operates 97 full-line off-price department stores in the Eastern Midwestern and Southern regions, reported that its December sales increased 10.7% to $176.2 million from $159.2 million. Comparable store sales increased 8.3% for the month. Ames Department Stores, Inc. (860-257-2659) reported that its December sales increased 10.8% to $374 million from $337.6 million. Comparable store sales increased 10.3%. The company currently operates more than 285 full-line discount stores in the Northeastern region. Recently, the company completed a tender offer to acquire Hills Stores Company. Consolidated Stores Corporation (614-278-7085) reported that its December sales increased 7.4% to $908.4 million from $845.7 million last year. Comparable store sales increased 1.6% for the month. The company operates 2,483 stores trading as K*B Toys, K*B Toy Works, K*B Toy Outlet, Odd Lots, Big Lots, Pic N’ Save and Mac Frugal’s Bargains*Close-Outs. Kmart Corporation (248-643-1000) reported that its December consolidated sales increased 6.2% to $5.49 billion from $5.16 billion last year. Comparable store sales increased 4.2% for the month. The company said that categories that show strength included appliances, decor, fashions, electronics, stationery and seasonal items. The company operates 2,161 stores nationwide. Fred’s, Inc. (901-365-8880), which operates 317 discount general merchandise stores in the Southeastern region, reported that its December sales increased 11% to $79.1 million from $71.3 million last year. Comparable store sales increased 3.3% for the month. Dollar General Corporation (502-237-5444) reported that its December sales increased 12.9% to $488.8 million from $433.1 million last year. Comparable store sales fell 1.1% for the month. The company operates more than 3,595 stores in 24 states. Shoe Stores Value City Department Stores, Inc.’s (614-471-4722) Shonac Corporation subsidiary reported that its December sales increased 14.6% to $36.2 million from $31.6 million last year with comparable store sales up 6.8% for the month. DSW Shoe Warehouse, a subsidiary of Shonac, reported that its December sales increased 29.3% to $17.1 million from $13.2 million, with comparable store sales up 14.3%. The company operates 44 DSW stores. The Elder-Beerman Stores Corp.’s (937-296-2805) Bee-Gee Division reported that its December sales increased 1.5% to $3.3 million with comparable store sales down 2.4%. The company operates 62 shoe stores trading as El-Bee and Shoebilee! in seven states. Shoe Carnival, Inc. (812-867-4105) reported that its December sales increased 15.8% to $31.5 million from $27.2 million with comparable store sales down 0.3% for the month. The company operates 112 stores in the Midwestern and mid-Southern markets. Brown Group, Inc. (314-854-4093) reported that sales in its 821-unit Famous Footwear division increased 1.4% to $84.2 million from $83 million last year with comparable store sales down one percent. Sales in its 338-unit Naturalizer chain were flat at $13 million. Comparable store sales were off slightly at 0.3% for the month. Toys Noodle Kidoodle, Inc. (516-677-0500) reported that its holiday sales increased 36% to $43.4 million from $31.8 million the previous year. Comparable store sales increased 12% for the period. The company operates 42 stores in CT, FL, IL, MA, MI, NJ, NY, OK and TX. Toys ‘R Us, Inc. (201-599-7850) reported that its holiday sales were down to $4.4 billion from $4.5 billion last year. Comparable toy store sales fell seven percent for the period. The company attributed the decline to an overall weakness in the toy industry. Electronics Tandy Corporation (817-415-3224) reported that December sales in its 7,000-unit Radio Shack division increased six percent to $587.2 million from $555.6 million last year. Comparable store sales increased five percent. Circuit City Stores, Inc. (804-527-4000) reported that its total sales for December increased 17% to $1.45 billion from $1.24 billion last year. Comparable store sales increased 11% for the month. The company operates 533 Circuit City superstores, 50 mall-based Circuit City Express stores and three consumer electronics only stores. The Good Guys! (650-615-5000), a 79-unit chain with stores in CA, NV, OR and WA, reported that its first quarter sales (which includes the holiday selling period) increased one percent to $294.1 million from $290.3 million during its first quarter last year. However, comparable store sales fell two percent. Best Buy Co., Inc. (612-947-2388) reported that its December sales increased 21% to $1.84 billion from $1.52 billion last year. Comparable store sales increased 10.5% for the month. The company operates 312 stores in 36 states. Furniture Haverty Furniture Companies, Inc. (404-881-1911) reported that its December sales increased 14.4% to $49 million from $42.8 million last year. Comparable store sales increased 10.9% for the month. The company operates 100 stores in 14 Southern and central states. The Bombay Company, Inc. (817-870-1847) reported that its December sales increased four percent to $71 million from $68.5 million last year. Comparable stores sales increased one percent. The company operates 416 stores nationwide. Heilig-Meyers Company (804-784-7300) reported that its December sales increased 4.2% to $212.4 million from $203.7 million with comparable store sales flat. The company operates 1,247 stores nationwide. Other Retailers Lowe’s Companies, Inc. (336-658-4223) reported that its December sales increased 23.7% to $1.21 billion from $978.3 million last year. Comparable store sales increased 10.6% for the month. The company operates 474 home improvement stores in 26 states. Restoration Hardware, Inc. (415-924-1005), a specialty retailer of home furnishings, functional and decorative hardware and related merchandise operating 41 stores nationwide, reported that its holiday sales increased 85.9% to $71 million from $38.2 million the previous year. Comparable store sales increased 10.2% for the period. Michaels Stores, Inc. (972-409-1477) reported that its December sales increased seven percent to $241.3 million from $224.5 million. Comparable store sales fell three percent for the month. The company operates 502 Michael stores in 46 states and 77 Aaron Brothers stores along the West Coast. The stores selling arts, crafts, framing, floral, decorative wall decor and seasonal merchandise. Claire’s Stores, Inc. (847-765-1100), a 2,028-unit mall-based accessories and costume jewelry retailer, reported that its December sales increased 34% to $131.8 million from $98.7 million last year. Comparable store sales increased 12% for the month. Tiffany & Co. (212-605-4132) reported that its holiday season net sales increased 20% worldwide and 22% in the US. Hastings Entertainment, Inc. (806-372-2300), which operates 129 multimedia stores in small to medium-sized markets in the Midwestern and Western regions, reported that its holiday sales increased 10.6% to $63.4 million from $57.3 million last year. Comparable store sales increased 3.2% for the period. Musicland Stores Corporation (612-932-7700) reported that its December total sales increased 3.7% to $427 million from $411.9 million. Overall comparable store sales increased 4.5% for the month. Its Superstores Division reported a total sales jump of 9.5% to $148.4 million from $135.6 million; and its Mall Stores Division reported a total sales increased of 0.8% to $275.5 million from $273.2 million. The company operates 1,346 stores trading as Sam Goody/Musicland, Suncoast Motion Picture Company, Media Play and On Cue. CVS Corporation (401-765-1500) reported that its December sales increased 16.1% to $1.74 billion from $1.5 billion last year. Comparable stores sales increased 12.9% for the month. The company operates 4,122 drug stores in the Northeastern, Mid-Atlantic, Midwestern and Southeastern regions. World of Science, Inc. (Need phone number) reported that its holiday sales increased 12.1% to $31.9 million from $28.4 million last year. Comparable store sales increased two percent. The company operates 74 permanent stores and 98 seasonal stores selling science and nature products which emphasize both educational and entertainment values. BJ’s Wholesale Club, Inc. (508-651-6063), which operates 94 wholesale membership clubs, reported that its December sales increased 14.8% to $484 million from $422 million. Comparable store sales increased 5.4% for the month. Items which sold particularly well during the month included holiday seasonal merchandise, toys, jewelry and giftware. Costco Companies, Inc. (425-313-6360) reported that its December sales increased 12% to $3.09 billion from $2.77 billion last year. Comparable store sales increased eight percent. The company operates 285 membership warehouse clubs nationwide. Natural Wonders, Inc. (510-252-6600) reported that its December sales increased 3.7% to $53.9 million from $51.9 million last year. However, comparable store sales decreased 3.4% for the month. The company operates 198 stores offering family gifts inspired by the wonders of science and nature. Brookstone, Inc. (603-577-8000), a specialty gift retailer operating 195 stores in 36 states, reported that its holiday sales increased 11.2% to $125.4 million from $112.8 million the previous year. Comparable store sales increased eight percent for the period. National Record Mart, Inc. (412-276-6200) reported that its holiday sales increased 27% with comparable store sales up 12.5% for the period. The company operates 174 pre-recorded music stores in 30 states. Books-A-Million, Inc. (205-942-3737) reported that its holiday sales increased 3.4% to $62.3 million from $60.2 million last year. Comparable store sales decreased 0.4% for the month. The company operates 174 book stores in 18 states. Lechters, Inc. (973-481-1100) reported that its December sales fell 6.2% to $88.8 million from $94.6 million last year. Sales in its Lechters Housewares division fell 5.9% to $74.3 million and sales in its Famous Brands Housewares Outlet division fell 7.9% to $14.5 million. Overall comparable store sales fell 1.7%, reflecting a decreased of 1.8% for Lechters and a 1.2% decreased for Famous Brands. The company operates 447 Lechters stores and 136 Famous Brands stores nationwide. The Home Shopping Network (727-572-8585) reported its largest selling month during December with gross sales in excess of $160 million. This figure represented a double-digit increase versus the same period last year. Contributing to the sales increase was the selling of more than 100,000 Barbie dolls; more than $4.3 million with of computers; more than 775,000 pieces of jewelry; more than 550,000 Beanie Babies; 280,000 pieces of cookware; 15,000 telescopes and 120,000 orders for vitamins. Amazon.com reported that its fourth quarter sales, which included the holiday selling period, increased to $250 million from $66 million during the fourth quarter last year. During the holiday sales quadrupled from the 1997 holiday season; more than one million new customers shopped with Amazon.com for the first time; the company shipped more than 7.5 million items--more than the company shipped during the entire year of 1997 and the company experienced peak shipping of more than $6 million in one day.
New Construction Konover Property Trust, Inc. plans to break ground during the first quarter on a 90,000 sq.ft. shopping center located adjacent to its existing Factory Stores of America Outlet Center in Smithfield, NC. The project will include space for 12 new stores in the fashion, accessory, shoes and home decor categories. The company is currently developing Mount Pleasant Towne Centre in Mount Pleasant, SC. The 425,000 sq.ft. project will be anchored by Belk, Barnes & Noble, Bed, Bath & Beyond and a 16-screen Consolidated Theaters. A Summer opening is planned. In addition, the company is currently developing Park Place in Cary, NC. The 171,858 sq.ft. project will be anchored by Food Lion and a 16-screen Carmike Theatre. The company is also developing Peak Plaza in Apex, NC. For more information, contact C. Cammack Morton at (919-462-8787). Trademark Real Estate Investment & Development recently
acquired 37 acres of land at the intersection of Grapevine Highway and Precinct Line Road
in Fort Worth, TX. The company plans to develop The Crossing on 30 acre of the
property. The 300,000 sq.ft. project will be anchored by Kohl’s Department Store
and is expected to be ready for occupancy during late Fall this year and Spring 2000. The
remaining seven acres of the site have been sold to E-Systems Pool Trust which
plans to develop North Richland Hills Town Center. The site is surrounded by the
communities of Colleyville, Southlake, Keller and Grapevine. More than 136,000 residents
live within a three-mile radius and more than 226,000 residents live within a five-mile
radius. Average household income within three miles is $68,500 and rises to $77,880 within
a one-mile radius.
Mergers & Acquisitions Starbucks Coffee Company (206-447-7954) recently signed an agreement to acquire Tazo, a Portland, OR-based tea company known for producing authentic, premium tea products. Tazo’s current management will remain in place as will the Tazo brand and their high-quality, authentic products. Blockbuster Inc. (972-448-7700) recently completed its acquisition of 69 Blockbuster stores from Trient Partners Ltd., its licensee in the Seattle, WA and Portland, OR markets. Mattress Giant (214-750-6288) recently acquired American Mattress, a 10-unit chain based in Orlando, FL. The acquired stores, which trade as American Bed, will be converted into the Mattress Giant concept by the end of next month. Mattress Giant currently operates 110 stores nationwide, including 37 in South FL. The company plans to use the American Mattress acquisition as a springboard for further expansion into the South FL market. Current plans call for the opening of as many as 15 stores per year in FL. The stores average 6,000 sq.ft. Casa Ole Restaurants, Inc. (713-943-7574) recently signed a definitive agreement to acquire La Senorita Restaurants, which operates five restaurants, a general partnership interest in a sixth restaurant, and all the rights to the company which franchises the La Senorita concept for approximately $4 million. The transaction is expected to close by the end of this month. La Senorita restaurants are Mexican themed, casual style operations consisting of five company-owned units and four franchised restaurants, including one in which the sellers own a 17.5% general partnership interest. All nine of the restaurants are located in MI. Casa Ole Restaurants currently operates and franchises 80 Mexican restaurants. TRC Acquisition Corporation (770-518-1444) recently completed its merger with Harvest Restaurant Group, Inc. The principal business of the company will be the development, operation, and franchising of Rick Tanner’s Original Grill restaurants. Under terms of the merger, the company’s headquarters will move to Atlanta. The newly merged company has received a commitment from an investor group for $4 million of new equity funding in addition to $2 million funded to Harvest in July 1998. The equity funding will be used primarily to grow the Tanner’s concept. Currently, there are 11 company-owned Tanner’s restaurants and two franchised units. Two new company stores are expected to open during the first quarter and a franchised unit is currently under construction in Anniston, AL. Kohl’s Corp. (414-703-7000) is rumored to be looking to buy approximately 34 stores from Caldor in the southern CT and nearby areas. Reports also say that Kmart is interested in acquiring 18 stores and Target is interested in acquiring 12 stores. Lamonts Apparel, Inc. (206-644-5700) recently announced that it has entered into preliminary discussions with Troutman Investment Co., owner of the Emporium department store chain, regarding a possible business combination. Recently, Troutman purchased Lamonts stocks and warrants that give it control of more than 30% of Lamonts shares. Galveston’s Steakhouse Corp. (909-789-7606) recently completed its acquisition of the Paragon group of 80 restaurants located in 11 states. Paragon’s restaurants are located in AZ, CA, IN, MI, NC and OH and includes the Hungry Hunter, Carver’s, Mountain Jack’s, Cliff House and Sheepherder’s Inn chains. The purchase price was not disclosed, but analysts believe the cost exceeded $55 million. Regis Corporation (612-947-7000) recently completed three agreements for the acquisition of 113 salons. Of the acquired salons, 106 (including 15 franchised units) are located in the Pacific Northwest, four are in the Kansas City area, and three are located in the St. Louis, MO area. The acquired salons are expected to generate approximately $29 million in annualized revenues. Including these transactions, the company has completed 105 acquisitions in the past 61 months adding 2,122 salons. Overall, the company operates more than 3,600 salons trading as Regis Hairstylists, SuperCuts, MasterCuts, Trade Secret, Wal*Mart/SmartStyle Family Hair Salons and International.
Who’s Opening & Where Home Depot (770-433-8211) recently opened a 132,000 sq.ft. store in Charleston, SC and a 130,000 sq.ft. store in Wichita, KS. A second store in Wichita is expected to open next month. The company also recently opened a 130,000 sq.ft. store in Tampa, FL. Ruby Tuesday, Inc. (334-344-3000) recently opened its first Ruby Tuesday restaurant in Santiago, Chile. The opening is the company’s seventh international location, with the other six open in Hong Kong and Taiwan. The company has development agreements to open units in 13 foreign countries. Overall, the company operates 326 Ruby Tuesday units, 45 American Cafe units and 22 Tia’s Tex-Mex restaurants. Barnes & Noble, Inc. (212-633-3512) plans to open a 26,400 sq.ft. store at Valley River Center in Eugene, OR during late Summer. Golden Corral (919-781-9310) is planning to open a 348-seat restaurant near a Wal*Mart store in Bradenton, FL. Best Buy Co. (612-947-2388) is planning to open 45,000 sq.ft. stores at North Point Commons in Alpharetta, GA; the Mall of Georgia in Atlanta, GA and at Arbor Lakes Shopping Center in Maple Grove, MN during Spring, Summer and Fall, respectively. The openings are part of the company’s planned 40 new stores during 1999. Starbucks Coffee (206-447-7954) recently opened its first unit in China at a hotel in downtown Beijing. The company is planning to open 10 additional stores in Beijing in the coming 18 months. The openings are part of the company’s plan to be operating 500 stores throughout Asia by 2003. In addition to the newly opened Beijing store, the company operates locations in Japan, Singapore, the Philippines, Taiwan and Thailand and has signed a licensing agreement to open stores in South Korea. The company is also seeking sites throughout downtown Indianapolis, IN in which to open coffee shops. Capital Associates, Inc. (303-980-1000) recently opened a Name Brand Computer Outlet store in Lakewood, CO. It is the company’s third retail store. Kids Ali (920-434-0222) plans to open a store at The Shops at Park Plaza in downtown Oshkosh, WI during March and is considering opening a store in Appleton, WI. Taco Bueno (714-490-3686) plans to open four restaurants in the coming months and add a total of 19 units before the end of the year. Currently, the company operates 111 Mexican restaurants in OK and TX. Wal*Mart Stores, Inc. (501-273-4000) is scouting the Route 9 corridor in Albany, NY for a possible store site. The company is also planning to open a 130,000 sq.ft. store at Cordova Village Shopping Center in Rancho Cordova, CA. Kohl’s Department Stores (414-703-7000) plans to open a department store at The Crossing in North Richland Hills, TX either late this year or early next year. American Multi-Cinema (816-221-4000) plans to develop a 21-screen movie theater at Newport on the Levee in Newport, KY. The site is expected to open during Fall 2000. Morton’s of Chicago (516-627-1515) plans to open an 8,000 sq.ft. restaurant on the first level of Halls Crown Center department store in downtown Kansas City, MO during Fall. Walgreen Co. (847-940-2500) plans to enter the markets of Boise, ID; Charleston and Hilton Head, SC; Mobile, AL; Reno, NV and Roanoke, VA this year. During 2000, the company plans to enter the markets of Los Angeles, San Diego, San Bernardino and Palm Springs, CA; Atlanta, GA; Baltimore, MD; Salt Lake City, UT; Amarillo, TX and Fayetteville, AR. Also, in Los Angeles, Orange and Riverside counties, CA, the company operates 41 pharmacy-only stores. These stores will be replaced by full-size, 15,000 sq.ft. Walgreens drugstores. H.E. Butt Grocery Co. (713-329-3004) plans to enter the Dallas-Fort Worth, TX market with as many as 10 stores a year. Overall, the company operates 257 stores in LA, TX and Mexico. Beall’s Department Stores (941-747-2355) plans to enter the TX market with two outlet stores in Houston and Port Arthur. However, since another company already uses the Beall’s name, the company will use the tradename Burkes. The company also used the Burkes tradename in AL, LA and SC. ICE Cinemas (716-264-1177) plans to build an eight-screen, 25,000 sq.ft. movie theater at Newton Factory Outlet Stores in Newton, KS. The location, to be called Royale 8, is expected to open during April. Chevron Corp. (415-894-1071) has begun adding Foodini food stores to its gasoline stations. In addition to offering traditional convenience store foods, the stores also offer home-meal replacement dishes, microbrews, fresh breads and champagne. The store’s motto is "escape from cooking." AutoZone (901-495-6500) plans to open auto parts stores in Modesto (2), Ceres, Turlock and Stockton (4), CA in the coming months.
Sources of Financing L.J. Melody & Company (713-787-1900) recently arranged construction financing of $16.7 million for the retail portion of Galleria North in Dallas, TX. The 112,000 sq.ft. project, which is under development, will be anchored by Restoration Hardware, The Container Store, Crate & Barrel, Z Gallerie Furniture, Mondo’s Restaurant and Starbucks Coffee. FINOVA Realty Capital (818-706-1840) recently arranged $23.325 million in financing on behalf of Pathmark Stores, Inc. for the refinancing of four of its shopping centers. The four centers, which total more than 450,000 sq.ft., are located in Wilmington, DE; East Brunswick, NJ and Upper Darby and Glenolden, PA. The properties range in age from 15 to 25 years old and are all 100% occupied. The 75% loan-to-value features a 10-year fixed rate amortized over 25 years. Carey Diversified LLC (212-492-8992) recently closed the funding of an $11 million non-recourse mortgage secured by a 130,000 sq.ft. retail facility in Bellevue, WA. The facility, which was acquired last year by Carey Diversified in a stock-for-property swap, is leased to Eagle Hardware & Garden, Inc. under a triple net lease with a remaining term of 18 years. Nationwide Life Insurance Company was the lender. GREC Commercial Ventures, Inc. (305-666-5588) has obtained a $6.3 million acquisition and development loan from Ocean Bank to develop a 60,000 sq.ft. neighborhood strip center in Miami-Dade County, FL. The center is 40% preleased to Hollywood Video, Don Olson Tires, Dunkin Donuts, Hair Cuttery and several local tenants. An outparcel and an end cap space remain available for lease. The Ackman-Ziff Real Estate Group LLC (212-697-3333) recently arranged permanent financing in the amount of $8.15 million for a three shopping center portfolio in NJ, TX and VA. Morgan Stanley Dean Witter (212-761-3000) announced the final closing of its third real estate private equity fund, Morgan Stanley Real Estate Fund III (MSREF III). A total of $2.12 billion in capital was committed by over 125 domestic and international investors, including Morgan Stanley Dean Witter, pension funds, insurance companies, banks, credit companies, governmental affiliates and high net worth individuals. Approximately two-thirds of the capital will be invested in international real estate opportunities. MSREF III has already completed over 20 new investments involving $1.4 billion of assets in Western Europe, nearly $1 billion of assets in the United States, and $400 million of assets in Asia. Holiday Fenoglio Fowler, L.P. (617-338-0990) recently arranged a $7.5 million loan to refinance debt on the 35,591 sq.ft. Linens ‘N Things store in Newton, MA. The borrower, Northland Investment Corporation, received the fixed-rate loan from UNUM Life Insurance Company. The company also recently arranged financing for 210,000 sq.ft. of the 450,000 sq.ft. Rockwell MarketCenter to be developed in Rockwall, TX. The project, which is expected to be completed during Summer, will be anchored by Old Navy, Linens ‘N Things, OfficeMax, Petco and Ross Dress for Less. The floating-rate loan was placed through Comerica Bank-Texas for the borrower, RW MarketCenter Associates, Ltd.
Lead Sheet Maidenform Apparel The 77-unit chain operates locations nationwide. The stores, selling women’s lingerie, daywear and sleepwear, occupy spaces of 2,700 sq.ft. in outlet centers. Plans call for six openings in the coming 18 months. Expansion will take place nationwide. Guess, Inc. Apparel The 83-unit chain operates locations in AL, AZ, CA, CT, DE, FL, GA, HI, IL, IN, IA, KY, LA, ME, MD, MA, MI, MN, MO, NV, NY, OH, OR, PA, TN, TX, VA and WA. The stores, selling unisex apparel, occupy spaces of 4,500 sq.ft. in outlet centers and regional malls. Growth opportunities are sought nationwide. One Price Clothing Stores, Inc. Apparel The 620-unit chain operates locations in 28 states, Puerto Rico and the Virgin Islands. The stores, selling women’s and children’s apparel and accessories, occupy spaces of 4,000 sq.ft. in downtown store fronts, power and strip centers. Preferred anchors include Kmart, Wal*Mart and department stores. Plans call for 50 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 50,000 within three miles earning $35,000 as the average income. Leases running five years are typical and the company cites Dots and Simply Fashion as competition. Gregg Appliances, Inc. Appliances The 18-unit chain operates locations in KY, IN, OH and TN. The stores, selling appliances and electronics, occupy spaces of 25,000 sq.ft. in freestanding facilities. Growth opportunities are sought in KY, IN and OH. Annas Linens Bed, Bath & Linens The 41-unit chain operates locations in CA and WA. The stores, selling bed, bath and linens, occupy spaces of 5,000 sq.ft. to 7,000 sq.ft. in regional malls and power centers. Preferred anchors include TJ Maxx and department stores. Plans call for as many as 15 openings in the coming 18 months. Expansion will take place in the Western region. Preferred demographics include a population of 200,000 within five miles earning $50,000 as the average income. Leases running five years are typical. Paramount Cards Cards & Gifts The 70-unit chain operates locations nationwide. The stores, selling cards and gifts, occupy spaces of 2,400 sq.ft. to 4,000 sq.ft. in regional malls, power and strip centers. Preferred co-tenants include national retailers. Plans call for as many as 75 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 40,000 within three miles earning $35,000 as the average income. Leases running five years, with options, are typical. Martin & Bayley Convenience Store The 140-unit chain operates locations in AR, IL, IN, IA, KY, MS, MO and TN. The convenience stores occupy spaces of 3,100 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing markets. Leases running 10 years are typical. The Museum Company Gifts The 86-unit chain operates locations in 27 states. The stores, selling museum reproductions, occupy spaces of 3,000 sq.ft. in regional malls. Preferred anchors include department stores. Plans call for 10 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 600,000 within 10 miles earning $50,000 as the average income. Leases running 10 years are typical. Futon of North America Home Furnishings The 22-unit chain operates locations in FL and WA. The stores, selling futons, occupy spaces of 2,200 sq.ft. to 3,000 sq.ft. in downtown store fronts, regional malls, specialty 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, with options, are typical. Sterling, Inc. Jewelry The 70-unit chain operates locations nationwide. The fine jewelry stores occupy spaces of 1,200 sq.ft. in regional malls. Growth opportunities are sought nationwide. Ultra Stores Inc. Jewelry The 90-unit chain operates locations in 26 states. The jewelry stores occupy spaces of 800 sq.ft. to 2,000 sq.ft. in downtown store fronts, outlet and power centers. Preferred co-tenants include women’s apparel stores. Plans call for 50 openings in the coming 18 months. Expansion will take place nationwide. Value Music Concepts, Inc. Music The 45-unit chain operates locations in 23 states. The stores, selling pre-recorded music, occupy spaces of 3,000 sq.ft. in outlet centers. Plans call for 12 openings in the coming 18 months. Expansion will take place in the East Coast, Midwestern, Southeastern and West Coast regions. Preferred demographics include a population of 50,000 within 10 miles earning $40,000 as the average income. Leases running five years are typical. Eye Care Centers of America Optical The 270-unit chain operates locations nationwide. The optical stores occupy spaces of 3,500 sq.ft. in freestanding facilities, power centers and regional malls. Preferred anchors include Barnes & Noble, Old Navy and Ross. Plans call for 29 openings in the coming 18 months. Expansion will take place in the Midwestern, Southeastern, Southwestern and Western regions. Preferred demographics include a population of 150,000 within seven miles earning $34,000 as the average income. Leases running 10 years are typical and the company cites Lenscrafters as competition. Eyeglass Factory Optical The 53-unit chain operates locations in KY, MA, MI, OH and PA. The optical stores occupy spaces of 2,000 sq.ft. in power and strip centers. Plans call for at least two openings in the coming 18 months. Expansion will take place in FL, PA and TX. Leases running five years are typical. Spectera, Inc. Optical The 42-unit chain operates locations in GA, MD, TX, VA and Washington, D.C. The optical stores occupy spaces of 1,500 sq.ft. in strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in MD. Leases running three years are typical. Steve Madden Shoes The 32-unit chain operates locations in CA, CO, FL, GA, IL, MD, NJ and NY. The stores, selling women’s shoes and accessories, occupy spaces of 1,300 sq.ft. to 1,600 sq.ft. in downtown store fronts and regional malls. Plans call for 20 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 250,000 within five miles earning $60,000 as the average income. Leases running 10 years are typical. Candleman Corporation Specialty The 90+-unit chain operates locations in 40 states. The stores, selling candles and accessories, occupy spaces of 1,000 sq.ft. in regional malls. Preferred anchors include Dayton-Hudson and Nordstroms. Plans call for 20 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 100,000 within 20 miles earning $50,000 as the average income. Leases running 10 years are typical and the company is franchising. Tombar Investment Inc. Specialty The 318-unit chain operates locations throughout North America. The newsstands occupy spaces of 200 sq.ft. in regional malls, office towers and transportation hubs. Plans call for 50 openings in the coming 18 months. Expansion will take place throughout North America. Leases running 10 years, with options, are typical. Bristol Farms Markets Supermarket The six-unit chain operates locations in CA. The upscale specialty grocery stores occupy spaces of 20,000 sq.ft. to 25,000 sq.ft. in freestanding facilities. Preferred co-tenants include bookstores, drug stores, service uses and upscale restaurants. Plans call for five openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 200,000 within five miles earning $75,000 as the average income. Leases running 15 years, with options, are typical. Eagle Food Centers, Inc. Supermarket The 90-unit chain operates locations in IL and IA. The supermarkets occupy spaces of 56,000 sq.ft. in strip centers. Preferred co-tenants include Kmart and TJ Maxx. Plans call for six openings in the coming 18 months. Expansion will take place in Chicago, IL and its suburbs. Preferred demographics include a population of 60,000 within three miles earning $40,000 as the average income. Leases running 20 years are typical. H.P. Nemenz Food Stores Supermarkets The 15-unit chain operates locations in OH and PA. The supermarkets occupy spaces of 12,000 sq.ft. to 24,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets. Leases running five years are typical. K.V. Mart Co. Supermarket The 18-unit chain operates locations in CA. The supermarkets occupy spaces of 21,000 sq.ft. to 35,000 sq.ft. in strip centers. Plans call for five openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 20 years are typical. Southern Stores, Inc. Video The 50-unit chain operates locations in AR, LA and TN. The video stores occupy spaces of 4,500 sq.ft. in strip centers. Preferred anchors include supermarkets. Plans call for six openings in the coming 18 months. Expansion will take place in LA and TN. Leases running five years are typical.
Real Estate Professionals Making The News CB Richard Ellis (909-788-3758) announces the promotion of Christine Jacobs to the position of vice president. Jacobs has consistently ranked as one of the company’s top retail brokers in the Inland Empire and Orange/Riverside County regions. Jacobs started with the company as a research assistant in 1991 in the Riverside office. She went on to be a retail sales assistant and then joined the sales force as a retail specialist in 1993. In 1995, she attained the Rookie of the Year honors within her office. In 1995 and 1996, she received the award for achieving the highest number of completed transactions in one year in the Riverside office. Also in 1996, she was ranked number one within the Retail Specialty in the Riverside office and ranked number four in the Orange County/Inland Empire region. Her expertise is in representing retailers in the acquisition and disposition of sites and the leasing and marketing of shopping centers in the Inland Empire. A few of her clients are Home Depot, Chevron, McDonald’s, Applebee’s, Buca Di Bepo and Payless Shoes. She is located in the Riverside office. Winn-Dixie Stores, Inc. (904-783-5000) announces that its board of directors has elected Roy Brocato senior vice president of the company. K-B Toys (413-496-3427) announces that Patrick Barry has been promoted to senior vice president, stores. In his new position, Barry will oversee field operations for all K-B Toy store formats. Lands’ End, Inc. (608-935-4835) announces that Bradley Johnson, senior vice president, chief administrative and financial officer has resigned to pursue other interests. Stephen Orum reassumes the position of executive vice president, chief financial officer. CBL & Associates Properties, Inc. (423-855-0001) announces that Jack Thornton, Jr. has been named director-new development in the Boston office of the company. In his new position, Thornton will be responsible for finding new shopping center development opportunities in the northeast. Gottschalks, Inc. (559-434-8000) announces the appointment of Michael Geele as senior vice president and chief financial officer. Most recently, Geele served as chief financial officer for Southwest Supermarkets, and has also served as vice president of finance for Smitty’s Super Value. JC Penney Company, Inc. (972-431-1000) announces that its board of directors has elected Robert Romasco as vice president. Trammell Crow Company (561-394-3388) announces the appointment of Dennis Kleier to the position of retail broker. In his new position, Kleier will specialize in retail tenant representation. Lerner New York, a division of The Limited, Inc. (614-479-7000), announces that Ronald Ristau has been named executive vice president of operations and administration. In this position, Ristau will be responsible for the finance, IT, sourcing and production areas. Best Buy Co., Inc. (612-947-2388) announces the appointment of Dale Anderson as vice president--applications. In this newly created position, Anderson will be responsible for the planning and delivery of business systems solutions that enable strategies and create shareholder value. Toys ‘R Us, Inc. (201-599-8090) recently named Warren Kornblum senior vice president and chief marketing officer. In his new position, Kornblum will be responsible for all marketing and advertising activities for the Toys ‘R Us, Kids ‘R Us and Babies ‘R Us divisions.
Buyers & Sellers KLNB, Inc. represented Lend Lease Real Estate Investments, who
acted on behalf of one of its clients, in the sale of Country Club Mall in LaVale, MD to
J.J. Gumberg Properties for $32.4 million. The 533,000 sq.ft. project, which is currently
78% leased, is anchored by JC Penney, Sears, Kmart, Bon-Ton and a six-screen AMC Cinema.
The sale also included an additional 100 acres of developable land. Alba Consulting represents a client in the market to acquire a
retail site located within a two-hour drive of the St. Petersburg-Tampa, FL market for a
1031 exchange. The property should be priced between $4 million and $5 million. Retail Properties Group, Inc. represented BBQ Investments I, LLC in
its acquisition of a 5,000 sq.ft. retail facility formerly housing Tony Roma’s
restaurant in San Diego, CA. BBQ Investments also assumed the existing long-term land
lease for the property with Mira Mesa Shopping Center West, the lessor. The total value of
the transaction was $2.81 million. BBQ Investments plans to use the facility to open a
Dickey’s Barbecue Smokehouse restaurant. Dickey’s currently operates and
franchises 39 restaurants in five states and plans to expand nationwide. A total of 50
units for CA are planned. National RealStar Real Estate Service has the listing to sell 1.7
acres of land in Hanover Park, IL. The site is zoned B2, is located close to train,
expressway and residential areas and has a five-mile population of 226,000. Nearby
communities include Hanover Park, Schaumburg, Streamwood, Bartlett and Hoffman Estates. McCain & Company, Inc. represented Costco Wholesale Corp. in
its sale of a vacant 112,000 sq.ft. former warehouse club store in Eatonville, FL. A local
investor purchase the site for $2.4 million and intends to re-lease the site an as
investment. Regency Realty Corporation has the listing to sell a 10,125 sq.ft.
freestanding CVS drug store in Woodstock, GA. The tenant has a 15 year net lease with
three options of five years each. In addition, CVS is to pay percentage rent equal to 2.5%
of sales in excess of a natural breakpoint of $6.034 million and 1% of sales in excess of
$7.534 million. The seller will require purchaser to assume the existing permanent loan of
$1.1 million at 8.1% interest. Term is 15 years and amortization is on a 15-year schedule.
The seller is accepting offers and an all cash payment will be due at closing. Continental Real Estate Cos. brokered the sale of Herndon Village
Shops in Orlando, FL. The 63,982 sq.ft. project, which is anchored by Blockbuster Music,
Party City and Pier 1 Imports, was acquired by MAC Development Co. from Flatrock Partners
LLC for $2.75 million. REOC Property Services, LLC has the listing to sell The Junction in
Houston, TX. The 130,000 sq.ft. project is anchored by Walgreens, Hollywood Video, Showbiz
Pizza and a dark Kroger. The asking price is $6.6 million and assumable financing of
$3.825 million due December 2006 is available. Equitable Management Corp. represents a client in the market to
acquire Publix anchored shopping centers. Preferred projects should be located in the
Atlanta, GA market, but centers in other major Southeastern cities will be considered. Prudential California Realty has the listing to sell a retail
facility in Oakland, CA. The property contains several well maintained buildings, which
are currently used as a new car dealership, and a vacant lot. The site provides an
excellent opportunity for redevelopment. Neighboring retailers include Smart & Final,
Grand Auto and Burger King. The asking price is $2.7 million. McKelvey Property represents a client in the market to acquire NNN
property for a 1031 exchange. Preferred projects should be credit retail/restaurants,
located anywhere and priced at $2.2 million. James E. Hanson Co. is in the market to acquire Kmarts, Wal*Marts
and similar stores having short term leases. CB Richard Ellis, Inc. represents a pension fund client in the
market to acquire a shopping center in the Ventura, CA market. Preferred projects should
have major anchors included and without ground leases priced between $10 million and $30
million. Commercial Partners Realty, Inc. has the listing to sell a 52,400
sq.ft. unanchored shopping center in Ocala, FL. The project is 100% occupied by local
tenants and there is a waiting list. NOI is $324,849. The asking price is $3.2 million. Aminoff & Co. has the listing to sell a Rite-Aid in
Springfield, OH. The store has a 20-year lease and the asking price is $2 million. Commodore Realty, Inc. has the listing to sell Sunset Plaza in
Miami, FL. The 26,500 sq.ft. project is priced at $2.2 million. Principle Realty Services represents a buyer in the market to
acquire a single tenant NNN leased property. The preferred property should be located in
TX, but properties in other areas will be considered. The preferred price range is between
$500,000 and $5 million, and the buyer will consider regional or local credit type
tenants. Hiffman Shaffer Associates, Inc. represented Home Depot in its
acquisition of 14 acres of land in Elgin, IL. The company plans to develop a 115,000
sq.ft. store on the site.
Closings HomePlace (216-328-9500) plans to close its stores in Pembroke Pines and Pompano Beach, FL. The company, which is operating under Chapter 11 protection, plans to cut its store base from 98 to 75. Lands’ End Inc. (800-332-0117) plans to close its outlet stores in Vernon Hills and Rockford, IL and in Iowa City, IA next month. Dickinson Theaters (785-841-8600) recently closed its three-screen movie theater at Wichita Mall in Wichita, KS. The theater opened in 1986 as a first-run theater, but switched to a second-run concept in 1991. Viacom (212-258-6000) plans close all 16 of its retail stores over a six month period which began last month. The closings include the chain’s 15 Nickelodeon stores and its Viacom Entertainment Store on Chicago, IL’s Magnificent Mile shopping district. After reviewing its stores balance sheets, the company decided that it can best merchandise its assets without operating stores. Saks, Inc. (205-940-4000) plans to close its 50,000 sq.ft. store at The Shops at Blackhawk in Blackhawk, CA only 11 months after it was opened. According to analysts, the store is being closed because of poor sales triggered by being an anchor at a struggling shopping center despite being located in a community that has a median household income of $181,395. Montgomery Ward & Co. (312-467-2000) has identified 39 stores for closure as part of its ongoing evaluation of operations and in accordance with its business plan to return to profitability. An additional 17 Auto Express locations will also close, but the stores adjacent to them will remain open. The closures are expected to be completed by the end of May. Stores being closed are located in Dothan and Mobile, AL; Blytheville, Fayetteville and North Little Rock, AR; Santa Maria, CA; Ft. Meyers, Tallahassee and Tampa, FL; Merle Hay and Southridge, IA; Matteson and Niles, IL; Junction City, KS; Shreveport, LA; Lansing, MI; Brainerd and Duluth, MN; Billings and Great Falls, MT; Bismark, ND; Johnson City, Lockport and Watertown, NY; Mansfield, OH; Grants Pass, OR; Indiana, Reading, Scranton and Sunbury, PA; Clarksville, TN; Bryan, El Paso and Tyler, TX; Fairfax and Roanoke, VA; Morgantown, WV and Cheyenne, WY. Auto Express stores being closed are located in Chico, Eureka, Los Angeles, Merced, Oroville and Redding, CA; Orange Park and Regency, FL; Peru, IL; Las Cruces, NM; Toledo (2), OH; Eugene, OR; Abilene and Brownsville, TX; Winchester, VA and Longview, WA. Footstar, Inc. (201-934-2000) plans to close 30 underperforming shoe stores and slow its store expansion program this year. In addition, the company’s Meldisco division will close its 20 leased footwear departments in Tesco stores in Poland, Hungary, Slovakia and the Czech Republic. The company currently operates 572 Footaction stores and operates 2,538 leased shoe departments through its Meldisco division, primarily in Kmart stores. In addition, the company plans to open 20 or 30 new stores this year, compared to the 50 to 70 as originally planned.
Food Tenants Hungry for Sites Nationwide R&M Food Services, Inc. does business as The Whole Enchilada
and Millies Country Kitchen at 21 locations in CA. The restaurants occupy spaces of
5,500 sq.ft. in freestanding facilities and regional malls. Growth opportunities are
sought in the existing market. Leases running 15 years, with options, are typical. Mirabile Investment Corp. trades as Burger King at 43
locations in AR, MS and TN. The fast food restaurants occupy spaces of 3,000 sq.ft. in
freestanding facilities. Preferred anchors include Wal*Mart. 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 are typical. Between Rounds Bagel Deli & Bakery operates seven locations in
CT, MA and WV. The stores, selling bagels, baked goods and deli items, occupy spaces of
1,600 sq.ft. to 2,000 sq.ft. in freestanding facilities and strip centers. Plans call for
five openings in the coming 18 months. Expansion will take place in the Northeastern
region. Preferred demographics include a population of 30,000 within one mile earning
$30,000 as the average income. Leases running five years, with a five-year option, are
typical and the company is franchising. Gelato Amare operates five locations in NC. The restaurants occupy
spaces of 500 sq.ft. to 1,100 sq.ft. in regional malls, outlet and power centers. Plans
call for two openings in the coming 18 months. Expansion will take place nationwide.
Preferred demographics include a population of 20,000 within five miles earning $35,000 as
the average income. Leases running five years, with a five-year option, are typical and
the company is franchising. Taco Time International, Inc. trades as Taco Time at more
than 300 locations throughout North America, Greece, Japan, Kuwait and Thailand. The fast
food Mexican restaurants occupy spaces of 500 sq.ft. to 2,100 sq.ft. in freestanding
facilities and regional malls. Growth opportunities are sought in the Western region. The
company is franchising. 1 Potato 2, Inc. trades as 1 Potato 2 at 42 locations in CA,
CO, FL, IA, IL, KS, KY, MA, MN, MO, NE, NV, OH, SD, WI and WY. The restaurants,
specializing in baked potatoes, occupy spaces of 450 sq.ft. to 700 sq.ft. in food courts
of regional malls. Plans call for as many as eight openings in the coming 18 months.
Expansion will take place in CA and the Midwestern region. Preferred demographics include
a population of 100,000 within five miles earning $50,000 as the average household income.
The company is franchising. Master Wok trades as Master Wok and Bourbon Street Cafe
at 50 locations in FL. The Oriental and Cajun, respectively, fast food restaurants occupy
spaces running 600 sq.ft. in food courts and 1,800 sq.ft. in freestanding facilities.
Plans call for 10 openings in the coming 18 months. Expansion will take place nationwide.
Preferred demographics include a five-mile population of 200,000 earning $40,000 as the
average income. The company is franchising. Bobby Rubino’s USA, Inc. trades as Bobby Rubino’s
Place for Ribs at 13 locations in CA, FL, NM, NY, PA and Singapore. The restaurants,
serving BBQ ribs, steaks and seafood, occupy spaces of 6,000 sq.ft. in freestanding
facilities. Plans call for two openings in the coming 18 months. Expansion will take place
nationwide. Preferred demographics include a population of 100,000 within three miles
earning $35,000 as the average household income. Leases running 15 years are typical and
the company is franchising. Great American Brokerage trades as Bronx BBQ at three locations in NY. The restaurants, serving steaks, ribs, chicken and fish, occupy spaces of 7,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls and strip centers. Preferred anchors include movie theaters. Plans call for three openings in the coming 18 months. Expansion will take place the New York City metropolitan area. Preferred demographics include a population of 200,000 within five miles earning $30,000 as the average income. Leases running 20 years are typical and the company cites Dallas BBQ as competition. The company also trades as Bistro Express at 13 locations CT,
FL, GA, NJ, NY and PA. The restaurants, offering freshly prepared salads and sandwiches,
occupy spaces of 1,200 sq.ft. to 1,500 sq.ft. in regional malls and urban airport
terminals. Plans call for 10 openings in the coming 18 months. Expansion will take place
in central FL; Atlanta, GA; Las Vegas, NV; Philadelphia, PA and the New York City
metropolitan area. Preferred demographics include a population of 250,000 within 10 miles.
Leases running 10 years are typical. Applebee’s International, Inc. trades as Applebee’s
Neighborhood Bar & Grill at 1,065 locations nationwide. The casual restaurants
occupy spaces of 5,000 sq.ft. in freestanding facilities. Plans call for 100 openings in
the coming 18 months. Expansion will take place nationwide. Preferred demographics include
a population of 50,000 within three miles earning $40,000 as the average income. Leases
running 15 years are typical.|
Lease Signings Konover Management Corp. (860-232-4545) leased 3,023 sq.ft. to Westie’s Shoe Outlet and 5,000 sq.ft. to Dollar Tree at Norwichtown Mall in Norwich, CT. The Triad Group (617-566-2703) leased 28,000 sq.ft. to World Gym at Chelmsford Mall in Chelsmford, MA and 30,000 sq.ft. to Healthwork’s in Boston, MA. Southeast Realty Group, Inc. (561-832-7880) leased a 14,200 sq.ft. former Cardello’s Italian Restaurant space to Piccadilly Cafeterias in Lake Park, FL. Stiles Realty Co. (954-776-9300) leased 7,405 sq.ft. to Morton’s of Chicago at Shoppes at Boca Center in Boca Raton, FL. The Taubman Co. (248-258-6800) leased space to Arden B, Limbo Lounge, Discovery Channel Store, Timberland, Kirkland’s, Trade Secret, Regis, 90's Nails, Wentworth Gallery and Waldenbooks at MacArthur Center in Norfolk, VA.
Space Place Arizona Glendale- Arrowhead Festival is anchored by Border’s,
PetsMart, Sports Authority and Toys ‘R Us. The project has a 12,000 sq.ft.
space available for lease. California Palm Desert- Desert Crossing is anchored by Target,
Oshman’s, Bed Bath & Beyond, Marshall’s, TJ Maxx, Old Navy, Circuit City,
Super Crown Books, Office Depot, Petco and Western Warehouse. The 516,137
sq.ft. project has space available for lease. Demographics include a five-mile population
of 54,316 earning $87,306 as the average household income. Connecticut Newtown- Sand Hill Plaza is anchored by Super Stop
& Shop, T.J. Maxx and Toy Works. The 160,616 sq.ft. project has spaces from
1,000 sq.ft. to 15,000 sq.ft. available for lease. In Tolland- Meetinghouse
Commons is anchored by IGA Supermarket. The project has spaces from 1,700
sq.ft. to 6,000 sq.ft. available for lease. In Torrington- Super Big Y
Center is anchored by Super Big Y and Burger King. The project has
spaces of 6,000 sq.ft. and 9,000 sq.ft. available for lease. Demographics include a
three-mile population of 32,657 earning $43,928 as the median household income. Indiana Rushville- Rushville Plaza is anchored by Kroger,
AutoZone and Stage Stores. The 85,000 sq.ft. project has a 12,000 sq.ft. space
available for lease. The site is located near Wal*Mart. Michigan Grand Rapids- Rogers Plaza is anchored by Montgomery
Ward, Lerner, OfficeMax, Old Country Buffet, MC Sporting Goods and K*B Toy Works.
The 406,858 sq.ft. project has anchor positions available for lease. In Saginaw-
Green Acres Plaza is anchored by J.C. Penney, Fashion Bug, Rite Aid, Farmer Jack
and Big Lots. The 271,106 sq.ft. project has space available for lease. New Hampshire Keene- T.J. Maxx Plaza is anchored by T.J. Maxx
and Staples. The 75,343 sq.ft. project has spaces of 10,117 sq.ft. and 14,017
sq.ft., as well as an 8,750 sq.ft. pad site available for lease. Demographics include a
three-mile population of 22,951 earning $34,880 as the median household income. New Jersey East Windsor- East Windsor Crossing is anchored by Genuardi’s
Supermarket. The 250,000 sq.ft. project has space available for lease. Demographics
include a three-mile population of 29,431 earning $63,818 as the median household income.
In Princeton- The Square at West Windsor will be anchored by a
gourmet supermarket, an office supply store and a home store. The 215,000 sq.ft. project,
which is expected to open during September 1999, has up to 50,000 sq.ft. available for
lease. Demographics include a five-mile population of 86,712 earning $72,048 as the median
household income. Retailers in the area include May’s, Lord & Taylor, JC
Penney, Wal*Mart, Home Depot, Best Buy, Sam’s Club, Marshalls, Barnes & Noble,
Borders, Staples, OfficeMax, Linens ‘N Things, Bed Bath & Beyond, Toys ‘R
Us, Circuit City and Sports Authority Turnersville- Echo Plaza has spaces of 3,500 sq.ft.,
7,200 sq.ft. and 29,795 sq.ft. as well as a development site of 64,000 sq.ft., available
for lease. Oklahoma Yukon- Chisholm Center is anchored by Bealls, Stage
Stores, Hastings, Sears and Country General. The 226,000 sq.ft. project has
spaces of 2,000 sq.ft., 6,000 sq.ft. and 25,000 sq.ft. available for lease. |