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January 22, 1999
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The Dealmakers Issue Number 2 for the week of January 22, 1999 Retailers Expanding into the KS & MO Markets Nill Brothers Sporting Goods, Inc. trades as Nill Bros. Sporting
Goods at six locations in KS. The sporting goods stores occupy spaces of 12,000 sq.ft.
in power and strip centers. Plans call for one opening in the coming 18 months. Expansion
will take place in either KS or MO. Preferred demographics include a population of 100,000
within five miles earning $60,000 as the average income. Leases running five years, with a
five-year option, are typical and the company prefers a vanilla shell with tenant build
out allowances. Cosentino’s Price Chopper trades as Price Chopper at 13
locations in KS and MO. The supermarkets occupy spaces of 50,000 sq.ft. in freestanding
facilities, power and strip centers. Plans call for two openings in the coming 18 month.
Expansion will take place in the existing markets. Leases running 20 years are typical. Westco Group, Inc. operates 40 locations in KY, IN, OH and TN. The
home furnishings stores occupy spaces of 5,000 sq.ft. to 10,000 sq.ft. in freestanding
facilities, regional malls, power and strip centers. Preferred anchors include T.J.
Maxx, Wal*Mart and supermarkets. Plans call for as many as six openings in the coming
18 months. Expansion will take place in KS and MO. Preferred demographics include a
population of 100,000 within three miles earning $50,000 as the average income. Leases
running five years are typical. Taco Casa International Ltd. trades as Taco Casa at 17
locations in FL, KS, KY, MS, PA and TN. The Mexican fast food restaurants occupy spaces of
1,200 sq.ft. to 1,800 sq.ft. in freestanding facilities and strip centers. Plans call for
three openings in the coming 18 months. Expansion will take place in KS and MO. Preferred
demographics include a population of 10,000 within one mile earning $50,000 as the average
income. Leases running 10 years are typical and the company prefers a vanilla shell with
tenant improvement allowances. Family Restaurant, Inc. does business as Chi-Chi’s, El
Torito, Casa Gallardo and El Torito Express at 300 locations nationwide. The
Mexican restaurants occupy spaces of 7,000 sq.ft. in regional malls, power and specialty
centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in
CA and MO. Preferred demographics include a population of 100,000 within three miles
earning $50,000 as the average income. Leases running 10 years are typical. One Hour Martinizing Dry Cleaning operates 814 locations
nationwide. The dry cleaners occupy spaces of 1,400 sq.ft. to 2,500 sq.ft. in freestanding
facilities, power, specialty and strip centers. Plans call for as many as 35 openings in
the coming 18 months. Expansion will take place in CA, CO, FL, MD, MO, NV, NJ, NC, OH, PA
and TX. Preferred demographics include a population of 15,000 within two miles earning
$55,000 as the average income. Leases running five to ten years are typical and the
company prefers a vanilla shell with tenant improvement allowances. The company is
franchising and assists franchisees in locating property. Mattress Giant operates 117 locations in FL, MN, MO and TX. The
stores, selling mattresses, bedding and accessories, occupy spaces of 4,000 sq.ft. to
6,000 sq.ft. in freestanding facilities and endcaps of strip centers. Plans call for at
least 50 openings in the company 18 months. Expansion will take place in FL, IL, MA, MN,
MO and TX. Leases running five years are typical. Max & Erma’s Restaurants, Inc. trades as Max &
Erma’s Restaurants at 49 locations in GA, IL, IN, KY, MI, NC, OH, PA and SC. The
restaurants, serving casual American food, occupy spaces of 6,800 sq.ft. in freestanding
facilities. Preferred co-tenants include movie theaters, regional malls and hotels. Plans
call for 15 openings in the coming 18 months. Expansion will take place within the
existing markets as well as in MO and TN. Preferred demographics include a population of
50,000 within three miles earning $50,000 as the average income. Leases running 20 years
are typical.
Financial News Ciao Cucina Corporation (513-242-9111) recently filed for Chapter 11 protection and sold its Harper’s Point and Cleveland, OH restaurants. The company plans to continue to operate its downtown Cincinnati and Washington, D.C. restaurants. The filing will allow the company time to resolve certain issues, including a lawsuit for over $2 million that was recently filed by the City of Coral Gables, FL. The lawsuit was filed in connection with a lease agreement for the development of a new restaurant that the company was not able to pursue. Planet Hollywood (407-363-7827), in an effort to please creditors, plans to sell its restaurant in New York City and its world headquarters building in Orlando, FL. The company plans to lease the sites back from the new owners. The company is looking to raise approximately $60 million from both sales. Recently, the company had its $65 million revolving credit line with SunTrust Bank Central Florida N.A. terminated and proceeds raised through the real estate sales will be applied to the principal in a new credit arrangement. Best Buy Co., Inc. (612-947-2388) reported that its third quarter net earnings increased 106% to $54.4 million from $26.4 million during the third quarter last year. Revenues for the quarter increased 18% to $2.5 billion from $2.1 billion last year and comparable store sales increased 12.2% for the quarter. During the quarter, the company opened 23 stores and currently operates 312 stores in 36 states. During its upcoming fiscal year, which begins next month, the company plans to open as many as 45 stores including its initial entry into the markets of San Francisco and Sacramento, CA; northern FL, upstate NY and Norfolk and Richmond, VA. Circuit City Stores, Inc. (804-527-4000) reported that its third quarter total sales increased 22% to $2.61 billion from $2.14 billion during the third quarter last year. Net earnings for the quarter increased 19% to $14.2 million from $11.9 million last year. In the Circuit City Group total sales increased 18% to $2.27 billion from $1.92 billion last year with comparable store sales up nine percent. In the CarMax Group total sales increased 52% to $345.9 million from $227.1 million last year. Comparable store sales fell four percent. During the quarter, the company opened 19 Circuit City Superstores and two CarMax locations. At the end of the quarter, the company operated 533 Circuit City Superstores, four consumer electronics-only stores, 50 mall-based Circuit City Express stores and 26 CarMax locations. Bed Bath & Beyond Inc. (908-688-0888) reported that its third quarter net sales increased 29.3% to $363.4 million from $281 million during the third quarter last year. Net earnings for the quarter increased 30.1% to $24.7 million from $18.9 million last year. Comparable store sales increased 8.8% for the quarter. The company currently operates 185 stores in 34 states and is planning to open 50 stores during its upcoming fiscal year which begins next month. The Great Atlantic & Pacific Tea Company, Inc. (201-930-8442) reported that its third quarter sales increased three percent to $2.344 billion from $2.319 billion last year. Comparable store sales increased 2.6% for the quarter. Earnings, which were impacted by $20.2 million in charges principally related to the strategic initiatives which include the closing of 127 stores, were a net loss of $8.7 million, versus income of $11.5 million last year. During the quarter, the company opened 12 stores and is planning to open 16 stores during the fourth quarter and close 75. In addition, the company is planning to open as many as 200 stores in the coming three years. One Price Clothing Stores (864-433-8888) recently began selling men’s apparel at 32 of its stores. The 14-year-old chain has traditionally sold women’s discount apparel and is looking to tap into the men’s discount apparel market. The company anticipates adding menswear departments to an additional 68 stores during March and April. Most of the stores receiving menswear are newer stores occupying 4,000 sq.ft. Many of its older stores will not have the room to handle men’s departments. The company is catering to the 25 to 45-year-old man and analysts estimate that menswear sales could account for as much as 20% of the company’s total sales at new stores. JumboSports Inc. (813-886-9688) recently filed for Chapter 11 protection listing $350 million in liabilities and $367 million in assets. In filing for protection from creditors, the company said that it is not in default of any of its debt obligations, but chose to seek protection so that it can assure its creditors, employees and customers that it will continue to operate in the normal course of business while it completes its planned restructuring. The company also predicted that it would run out of cash within two to three months. In an effort to boost its sagging bottom line, the company has changed management twice, changed its name, adopted new colors and store decor, shifted merchandise mix and closed 26 stores. Additional store closings are anticipated. Currently, the company operates 59 stores. The Quizno’s Corporation (303-291-0999) announced that its board of directors has formed a special committee to evaluate a proposal it has received from Richard E. Schaden and Richard F. Schaden, the president and chief executive officer and the vice president and secretary, respectively, of the company for the acquisition, by an entity to be formed by them, of all of the outstanding shares of the company. The final price to be paid will be based on negotiations with the special committee and will be payable in cash. If the deal is consummated, Quizno’s will become a privately held company. Twin B Auto Parts, Inc. (804-420-3342) recently filed for Chapter 11 protection, citing intense competition for national regional chains and a large amount of debt. The company, which at one time operated 30 auto parts stores, recently closed five and is now down to 17. The company was formed in 1974. Barnes & Noble’s (212-633-3512) plan to buy Ingram Book Group, the world’s largest book distributor, for $600 million, will be reviewed by the Federal Trade Commission after many independent bookstore owners complained that the deal would give Barnes & Noble an unfair advantage as well as access to smaller companies’ confidential information. Other complaints include a limiting of book selections, book availability and pricing concerns. Drug Emporium, Inc. (614-548-7080) reported that its third quarter sales slightly decreased to $199.1 million from $199.6 million last year. Comparable store sales increased 1.1% for the quarter. A net loss of $767,000 was reported as compared to net income of $283,000 last year. The company currently operates and franchises 185 deep discount drug stores.
Buyers & Sellers The Macerich Company recently acquired Northwest Arkansas Mall in
Fayetteville, AR from Tri State Joint Venture for $94 million. The 786,000 sq.ft. project
is anchored by Dillard’s, Dillard’s Women’s, JC Penney and Sears. Other
tenants include Eddie Bauer, Gymboree, Disney, Talbots, Gap, Gadzooks and The Buckle. The
Macerich Partnership, L.P. and Ontario Teachers’ Pension Board recently executed a
purchase agreement with various Safeco Corporation entities to purchase five shopping
centers and two non-contiguous community centers comprising 5.3 million sq.ft. for $570
million. Macerich and Ontario Teachers’ plan to jointly purchase the properties
through an entity which will be 51% owned by Macerich and 49% owned by Ontario
Teachers’. The acquired properties include Washington Square Mall in Tigard, OR;
Redmond Town Center in Redmond, WA; Kitsap Mall in Silverdale, WA and Cascade Mall in
Burlington, WA. Included in the purchase price is a 50% interest in Oxmoor Center Mall in
Louisville, KY, which is subject to a right of first refusal by the other 50% owner. If
Safeco’s partner exercises its right of first refusal, the purchase price would be
reduced by the allocated value of that property. NAI/Commercial Industrial Realty Company has the listing to sell a
portfolio of nine single tenant auto parts stores that have 10 year leases. The asking
price is $7.5 million. Rein & Grossoehme brokered the sale of Sun Valley Plaza IV in
Mesa, AZ. The 49,305 sq.ft. project is 33% occupied and the sale included two undeveloped
pads. The seller was a corporation formed by AMRESCO Management Inc. and the buyer was a
L.L.C. formed by Cole Partnerships. The sales price was $1.75 million. The Cotswold Group is in the market to acquire well located under
achieving shopping centers in the Mid-Atlantic, New England and Southeastern regions.
Preferred projects should have GLAs ranging from 75,000 sq.ft. to 500,000 sq.ft. Weichert Commercial has the listing to sell Countryside
International Car Wash in Sterling, VA. The asking price is $1.5 million. Newmark Merrill Companies recently negotiated the purchase of 3.5
acres of land in Wilmington, CA for $1.6 million. Following closure of the deal, the
company signed a 50,000 sq.ft. lease with Food 4 Less, Inc. for the development of a
supermarket. The store is expected to open during August. Divaris Real Estate, Inc. represented Best Buy Stores, L.P. in its
acquisition of 9.7 acres of land in Glen Allen, VA for $7.25 million. The site is located
adjacent to Brookhollow Shopping Center which is anchored by Kohl’s, Target and
HomePlace. Best Buy plans to develop a 45,000 sq.ft. store on the site. Aquila Realty Inc. has the listing to sell two building and/or
restaurant pad sites in Meridian Township, MI. Sizes are three acres and six acres and can
accommodate a 26,000 sq.ft. building and a 52,000 sq.ft. building, respectively. The sites
are located adjacent to Circuit City and near the Meridian Mall. The company has the
listing to sell outlots at Silver Lake Village in Fenton, MI. The 180-acre mixed-use
development is anchored by Kmart. The company has the listing to sell outlot and anchor
positions at a newly planned 200-acre mixed-use development in Grand Blac Township, MI.
The company also has the listing to sell outlot and anchor positions at a newly planned
300,000 sq.ft. project in Ypsilanti Township, MI. Public Storage, Inc. recently acquired and developed the following
properties: a 3.5 acre site in Garden City, NY with an 80,000 sq.ft. one-story climate
controlled facility; a 3.42 acre site in West Babylon, NY with an 82,000 sq.ft.
three-story climate controlled facility and single story standard units; a 5.7 acre site
in Hawthrone, NJ with a 98,000 sq.ft. three-story climate controlled facility and a 1.4
acre site in Rochelle Park, NJ with a 90,000 sq.ft. six-story climate controlled facility.
The company is in the market to acquire land parcels located in retail corridors and
ranging in size from one to six acres nationwide. The company will also purchase well
located industrial buildings. Aminoff & Co. has the listing to sell a net leased Winn-Dixie
supermarket in LA. The asking price is $5.34 million. The company has the listing to sell
a net leased Kmart in Grand Island, NE. The asking price is $4.73 million. The company
also has the listing to sell a net leased Kmart in Campbellsville, KY. The asking price is
$5.45 million. Excell Fund, LLC has the listing to sell a 9,950 sq.ft. retail
facility in the Denver, CO market. The building includes a 6,700 sq.ft. Family Dollar
store which has 10 years remaining on its lease. The asking price is $700,000. The company
also has the listing to sell a freestanding 6,250 sq.ft. Family Dollar store in the
Denver, CO market. The store has 10 years remaining on its lease. The asking price is
$500,000. The company is in the market to acquire strip shopping centers having GLAs of at
least 85,000 sq.ft. nationwide. Preferred projects should have occupancy rates around 50%
with some credit. Properties located in small towns will be considered. Company Investment Realty Resources, Inc. has the listing to sell
32,540 sq.ft. of the 77,000 sq.ft. Rainbow Plaza in Mannington, WV. The portion for sale
is occupied by CVS, Family Dollar and Warehouse Grocery. Adjoining tenants include Shop n
Save grocery, Dollar General, Cellular One and a US Post office. The asking price is $1.6
million. Phoenix Business Trust is in the market to acquire single tenant
net leased retail properties nationwide. Bergman Group, Inc. represents two buyers in the market to acquire
net leased investment properties located east of the Mississippi River. Preferred
properties should have 15 to 20 years on its initial term. New or pre-construction
projects are also preferred and properties without financing/pre-payment penalties
preferred. Buyer one has $1.5 million in cash and can leverage for a larger deal. A
closing by July 1999 is required. Buyer two has $5 million in cash and can leverage for a
larger deal or buy multiple properties. Closing this year or during the first or second
quarter of 2000 is required. RMR, Inc. has the listing to sell 118 acres of land located near
I-25 and Highway 7 in Broomfield, CO. All services have been promised by the city of
Broomfield. The site is planned for a factory outlet center. The asking price is $2.75
psf. Net Leased Investments has the listing to sell a net leased
OfficeMax in SC. The asking price is based on an 8.75% cap rate. The company has the
listing to sell a net leased Eckerd Drug Store in NC. The asking price is $2.215 million.
The company has the listing to sell four 7-11 ground leases. Asking prices range from
$900,000 to $1 million per property. The company also has the listing to sell a Wal*Mart
in VA. The project has a 20-year triple net lease which commences in July. The asking
price is $12.76 million. Sheldon-Gold Realty, Inc. has the listing to sell Krameria Plaza
Retail Center in Commerce City, CO. The 26,605 sq.ft. project is anchored by EZ Pawn and
Provenant Health Partners. The asking price is $1.29 million.
Sources of Financing Rankin Automotive Group, Inc. (318-487-1081), which trades as USA Auto Stores, announces that Heller Corporate Finance has approved a new credit facility of $25 million for the company and has agreed to act as agent to place up to an additional $23 million of indebtedness. The purpose of the facility is to replace the company’s existing credit facility of $7.5 million thereby allowing the company to facilitate its growth through acquisitions and provide the company with additional working capital.
New Construction R.E.D. Capital Development is currently developing SouthPointe
Pavilions in Lincoln, NE. The 450,000 sq.ft. project has been opening in stages and
currently is anchored by a 26,000 sq.ft. Barnes & Noble store, Old Navy, Bed
Bath & Beyond, Abercrombie & Fitch, The Buckle, Athlete’s Foot, Hallmark
Creations, Gymboree, Lenscrafters and Chili’s. Planned openings before
July include Von Maur department store, a six-screen Douglas Theaters, Gap/Gap
Kids, Ben Simon, Bath & Body Works, Victoria’s Secret and Landmark Luggage.
A second phase of 200,000 sq.ft. is expected to break ground during late Spring/early
Summer this year. Planning for the project originally began in 1994 when the company was
asked to examine the land for a possible construction project. At that time, the land was
still in a rural market, with gravel roads on either side and only a few houses nearby. As
the city grew, plans for the project began to take shape. Ground was broken during Spring
1998. First National Development, Ltd. recently broke ground on Galleria
at Renaissance in Albuquerque, NM. The 330,000 sq.ft. project will be anchored by Office
Depot and Mattress Firm. The project is expected to open during Spring 1999. Sandor Development Company plans to break ground on Wal*Mart
Plaza in Crowley, LA. The 200,000 sq.ft. project will be anchored by a Wal*Mart
Supercenter. The company is currently developing Wal*Mart Plaza in Bryan, OH.
The 130,000 sq.ft. project will be anchored by Wal*Mart. The company is finalizing
plans to develop Wal*Mart Plaza in Granite City, IL. The 130,000 sq.ft. project
will be anchored by Wal*Mart. The company recently completed phase I construction
of Kroger Plaza in Pekin, IL. The project is anchored by a 62,000 sq.ft. Kroger
store and features 33,000 sq.ft. of specialty shop space. GREC Commercial Ventures plans to break ground during March on a
60,000 sq.ft. shopping center in South Kendall, FL. The 60,000 sq.ft. project, which is
being built on a 6.81 acre parcel of land adjacent to Walgreens and a Post
Office, will be anchored by Hollywood Video, Don Olson Tires, Dunkin Donuts and
Hair Cuttery. Ocean Pacific Capital recently acquired a 10-acre retail site
located at the corner of Foothill boulevard and Citrus Avenue in Fontana, CA. The company
plans to develop a 15,100 sq.ft. Walgreens drug store on the site. The company also
recently acquired a 20-acre site located at the intersection of Foothill Boulevard and
Cherry Avenue in Fontana, CA. The company plans to develop a project that will be anchored
by McDonald’s and Chevron. Gumbert Asset Management Corp. plans to redevelop Coral Ridge
Mall in Fort Lauderdale, FL. The project, which at one time was anchored by Britt’s
Department Store and J.C. Penney, will be getting a $15 million facelift,
including the addition of a 123,000 sq.ft. Target store which is expected to open
during Fall. Don M. Casto Organization is overseeing the current redevlopment of
the former Winter Park Mall in Orlando, FL. The new project, called Winter Park
Village, will be anchored by Dillard’s, Borders, a 20-screen Regal
Cinema and an upscale Albertson’s Supermarket which will surround a
central avenue of smaller shops and offices. Other tenants will include P.F.
Chang’s China Bistro, Harper’s Tavern and Bistro, Ruth’s Chris Steakhouse
and Max’s Grill. The project will open in phases throughout the year.
Lead Sheet Deb Shops, Inc. Apparel The 269-unit chain operates locations nationwide. The women’s apparel stores occupy spaces of 6,000 sq.ft. to 8,000 sq.ft. in regional malls. Growth opportunities are sought nationwide. Hartstrings, Inc. Apparel The seven-unit chain operates locations in AZ, CO, DE, ME, NY, PA and SC. The stores, selling children’s ready-to-wear apparel at discount price-points, occupy spaces of 2,500 sq.ft. in outlet centers. Growth opportunities are sought west of the Mississippi River. Joann Stores, Inc. Arts/Crafts/Fabrics The 1,100-unit chain operates locations nationwide. The stores, selling fabrics and crafts, occupy spaces of 15,000 sq.ft. to 45,000 sq.ft. in freestanding facilities, power and strip centers. Preferred co-tenants include Kmart, T.J. Maxx, Wal*Mart and supermarkets. Growth opportunities are sought in AK, CA, ID, MT, NV, OR and WA. Leases running five years are typical and the company prefers a vanilla shell with tenant improvement allowances. Pearl Artists & Craft Arts/Crafts/Fabrics The 23-unit chain operates locations in CA, FL, GA, IL, MD, MA, NJ, NY, PA, TX and VA. The craft stores occupy spaces of 15,000 sq.ft. to 25,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in AZ and NV. Leases running 20 years are typical and the company, which prefers a vanilla shell, cites Michael’s as competition. National Franchise Realty Group, Inc. Child Care The 260-unit chain operates locations in AL, AR, CA, CT, CO, DE, FL, GA, IL, IN, KS, MA, MD, MI, MN, MO, NJ, NY, NC, OH, OR, PA, TX, VA and WA. The child care facilities occupy spaces of 10,000 sq.ft. in freestanding facilities on 43,000 sq.ft. land parcels. Plans call for 100 openings in the coming 18 months. Expansion will take place nationwide. Leases running 15 to 20 years are typical. Consun Food Industries, Inc. Convenience Store The 26-unit chain operates locations in OH. The convenience stores, which also sell gasoline, occupy spaces of 3,000 sq.ft. in freestanding facilities. Plans call for one opening in the coming 18 months. Expansion will take place in the existing market. Leases running 10 years are typical and the company is franchising. Convenient Food Mart (IL division) Convenience Store The 44-unit chain operates locations in IL. The convenience stores occupy spaces of 3,000 sq.ft. in strip centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in the existing market. Leases running at least 20 years are typical and the company is franchising. Spinx Company, Inc. Convenience Store The 73-unit chain operates locations in NC and SC. The convenience stores, which also sell gasoline, occupy spaces of 2,500 sq.ft. in freestanding facilities. Plans call for eight openings in the coming 18 months. Expansion will take place in GA and SC. Preferred demographics include a population of 10,000 within three miles earning $20,000 as the average income. Leases running 20 years, with four options running five years each, are typical. Bradlees, Inc. Discount The 103-unit chain operates locations in ME, MA, NH, NJ, NY, PA and VA. The discount department stores occupy spaces of 75,000 sq.ft. to 95,000 sq.ft. in power and strip centers. Plans call for five openings in the coming 18 months. Expansion will take place within the existing markets. Leases running 20 years, with two options running five years each, are typical. FS Concepts, Inc. Hair Salon The 1,325-unit chain operates locations nationwide. The family hair salons occupy spaces of 1,200 sq.ft. to 1,600 sq.ft. in strip centers. Plans call for 200 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 10,000 within one mile earning $35,000 as the average income. Leases running five years, with two options running five years each, are typical. First Choice Haircutters Ltd. Hair Salon The 280-unit chain operates locations in FL, OH and Canada. The hair salons occupy spaces of 800 sq.ft. to 1,200 sq.ft. in strip centers. Plans call for as many as 50 openings in the coming 18 months. Expansion will take place in FL and OH. Stacy’s Ethan Allen Interiors Home Furnishings The five-unit chain operates locations in FL. The home furnishing stores occupy spaces of 15,000 sq.ft. to 20,000 sq.ft. in freestanding facilities and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in southeastern FL. Preferred demographics include a population of 150,000 within five miles earning $45,000 as the average income. 3 Day Blinds, Inc. Home Improvement The 174-unit chain operates locations in AZ, CA, CO, ID, KS, NE, NM, OR, TX, UT and WA. The stores, selling window treatments, occupy spaces of 1,000 sq.ft. to 5,000 sq.ft. in power and strip centers. Plans call for 30 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running five years are typical. Ostrow Textile Co. Housewares The 45-unit chain operates locations in FL, GA, NC and SC. The stores, selling housewares and linens, occupy spaces of 8,000 sq.ft. to 12,500 sq.ft. in power and strip centers. Preferred anchored include Dollar General, Kmart and Wal*Mart. Plans call for as many as five openings in the coming 18 months. Expansion will take place in southern FL. Leases running four years are typical and the company prefers a vanilla shell. Rogers Ltd., Inc. Jewelry The 44-unit chain operates locations in AR, FL, IN, IA, KY, MO, NE, OH, SD and TX. The jewelry stores occupy spaces of 1,000 sq.ft. to 1,800 sq.ft. in outlet centers and regional malls. Plans call for five openings in the coming 18 months. Expansion will take place in the Midstates region. Leases running five to seven years are typical. Parcel Plus Service The 130-unit chain operates locations nationwide. The stores, offering mail and business support services, occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in strip centers. Preferred anchors include supermarkets. Plans call for 20 openings in the coming 18 months. Expansion will take place in IL, MI, TX and the Mid-Atlantic region. Preferred demographics include a population of 60,000 within three miles earning $60,000 as the average income. The company is franchising. Carsus Corp. Specialty The 11-unit chain operates locations nationwide. The stores, selling candles, occupy spaces of 1,200 sq.ft. in regional malls. Growth opportunities are sought nationwide. Spring Crest Co., Inc. Specialty The 115-unit chain operates locations nationwide. The stores, selling fabric, costume jewelry and accessories, occupy spaces of 1,200 sq.ft. in freestanding facilities and strip centers. Plans call for at least eight openings this year. Expansion will take place nationwide. Leases running three years, with a five-year option, are typical and the company is franchising. Sternheimer Brothers, Inc. Sporting Goods The 53-unit chain operates locations in VA. The sporting goods stores occupy spaces of 3,600 sq.ft. to 18,000 sq.ft. in freestanding facilities, regional malls and strip centers. Plans call for at least two openings in the coming 18 months. Expansion will take place in the existing market. Terry Sports Sporting Goods The five-unit chain operates locations in CO and NM. The stores, selling ski equipment and related items, occupy spaces of 2,000 sq.ft. to 5,000 sq.ft. in ski resorts. Growth opportunities are sought in CO. The Fresh Market, Inc. Supermarket The 24-unit chain operates in FL, GA, NC, SC, TN and VA. The upscale supermarkets occupy spaces of 17,000 sq.ft. to 20,000 sq.ft. in freestanding facilities, power and strip centers. Preferred co-tenants include upscale retailers and interior designers. Plans call for six openings in the coming 18 months. Expansion will take place in AL, FL, GA, KY, NC, SC, TN and VA. Preferred demographics include a trade area population of at least 100,000 earning at least $60,000 as the average income. Leases running 15 years are typical. Weis Markets Supermarket The 23-unit chain operates locations in MD, NJ, NY, PA, VA and WV. The supermarkets occupy spaces of 40,000 sq.ft. to 50,000 sq.ft. in freestanding facilities. Preferred co-tenants include Kmart and Wal*Mart. Growth opportunities are sought in MD, NJ, NY and PA. Leases running 20 years are typical. Imaginarium Toy Centers, Inc. Toys The 44-unit chain operates locations in AZ, CA, CT, IL, KY, MD, MN, NJ, NY, OH, OR, TX, VA and WA. The specialty toy stores occupy spaces of 2,500 sq.ft. to 2,800 sq.ft. in downtown store fronts, entertainment and strip centers. Preferred co-tenants include Banana Republic, Barnes & Noble, Gap/Gap Kids, Starbucks and Talbots. Plans call for 20 openings in the coming 18 months. Expansion will take place in CA and from Boston, MA to Washington, D.C. Preferred demographics include a population of 50,000 within three miles earning at least $70,000 as the average income. Leases running 10 years, with two options running five years each, are typical and the company cites Noodle Kidoodle, Play Co. and Zany Brainy as competition.
Mergers & Acquisitions Associated Food Stores, Inc. (801-973-4400), a cooperative that supplies more than 600 independent grocers in the Mountain West, recently struck a deal to buy its first retail grocery stores--eight from Macey’s Inc. and four from Lin’s MarketPlace. Both supermarket chains are based in UT. Grow Biz International, Inc. (612-520-8500) recently completed the acquisition of Plato’s Closet, which operates two stores in Columbus and Toledo, OH. The concept buys and sells used and new apparel to the teenage market. The acquisition will be the basis of a seventh franchise concept for the company. The company operates more than 1,200 stores trading as Play It Again Sports, Once Upon A Child, Computer Renaissance, Music Go Round, It’s About Games and ReTool. House of Bargains (610-834-1600) recently was acquired by TSG Capital Group LLC for an undisclosed amount. The new owners plan to take the 54-unit discount children’s apparel retailer nationwide, with a focus on minority communities. House of Bargains currently operates stores in IL, MI, NJ, NY and PA. TSG is a majority shareholder in Urban Brands which operates 106 Ashley Stuart and Body and Soul stores and recently acquired 98 stores from Petrie Retail. Schottenstein Stores Corp. (614-221-9200) recently acquired a controlling interest in Crowley, Milner & Co. through a stock swap valued at $311,000. Schottenstein Stores had already owned 33% of Crowley and gained an additional 20% by giving heirs of the Crowley founders 25,000 shares of Value City stock in return for 300,000 Crowley shares. The deal came after Crowley reported that it had lost $6.2 million during the first nine months of 1998. Crowley operates nine stores in MI and 16 stores trading as Steinbach in CT, NH, NJ, NY and VT. Horizon Pharmacies, Inc. (972-736-2424) recently signed a letter of intent to acquire two retail pharmacies and four home medical equipment stores in NE and WY. The company recently acquired a retail pharmacy in Indiana. The acquisition marks Horizon’s initial entry into IN. The company also recently signed a letter of intent to acquire a retail pharmacy in KS. Following closure of the deals, the company will be operating 45 retail pharmacies in 13 states, 12 home medical equipment stores, five closed-door institutional pharmacies, five intravenous operations, two home healthcare agencies and one wholesale operation. Penn Traffic Co. (315-457-9460) plans to sell five its Bi-Lo supermarkets in northeastern PA to Associated Wholesalers, Inc. and four other Bi-Lo supermarkets to Weis Markets Inc. Terms of the sales were not disclosed. The nine Bi-Lo stores were part of the 22 Bi-Lo units that the company previously announced were for sale. The company had previously sold three Bi-Lo markets and closed 21 others as part of its effort to reduce the drain on the company’s bottom line. Following the sale, the company operates 241 supermarkets trading as Bi-Lo, Big Bear, Big Bear Plus, P&C Foods and Quality Markets in NY, OH, PA and WV. Wild Oats Markets, Inc. (303-440-5220) recently acquired Ideal Market in Boulder, CO. The purchase was undisclosed and Wild Oats plans to retain the company’s name and image. Wild Oats, which operates 64 natural foods stores nationwide, currently operates three stores in Boulder (including Ideal) and is looking to open a fourth. Overall, the company plans to open and acquire 11 units this year. CEC Entertainment, Inc. (972-258-4525) recently acquired six Chuck E. Cheese restaurants from its largest franchisee. Three of the units are located in Milwaukee, WI; two in Toronto, ON and one in Buffalo, NY. Currently, the company operates and franchises 324 Chuck E. Cheese’s restaurants in 44 states. First Cash, Inc. (817-460-3947) recently acquired the 12-unit Pawnshops of America chain which operates stores in SC. First Cash operates more than 100 pawnshops and 12 check cashing stores in CA, MD, MO, OK, TX and Washington, D.C. The purchase of Pawnshops of America is the company’s first entry into SC. Drug Emporium, Inc. (740-548-7080) recently signed a definitive agreement to acquire the Vix drug store chain, which operates 12 deep discount drug stores in the Buffalo and Rochester, NY markets. The acquired stores are operated under the Vix name by Tops, a division of Ahold International. The asset purchase agreement calls for Drug Emporium to pay $32.5 million in cash and assume the store leases. The stores mark Drug Emporium’s initial entry into the Buffalo and Rochester markets. Following closure of the deal, which is expected by the end of this month, the company will be operating and franchising 197 stores.
Real Estate Professionals Making News Edens & Avant (800-662-7212) recently appointed Larry Wheeler as vice president of asset management. In his new position, Wheeler will be responsible for the oversight of the asset management group which oversees the financial and operational results of the company assets. The company announces the appointment of Ken Neyman as director of investments. In his new position Neyman will be analyzing the overall portfolio financial position and market positioning in conjunction with the strategic growth of the company’s portfolio of assets. The company also announces that Tina Marshall has been appointed asset manager. In her new position, Marshall will be responsible for the financial management and operational oversight of company assets throughout the state of SC. NewMark Merrill Companies (818-996-0700) announces the promotion of Jim Patton to director of leasing and acquisitions. In his new position, Patton will be responsible for the acquisition of all retail assets, including developments and investments. He will also continue to oversee the small tenant leasing for 18 retail centers throughout southern CA. General Cinema Theatres, Inc. (617-264-8000) announces the promotion of Frank Stryjewski to the position of executive vice president and chief operating officer. In his new position, Stryjewski will be responsible for all of the company’s domestic theater operations, marketing, purchasing and human resources functions. Tandy Corporation (817-415-4969) announces that Leonard Roberts recently assumed control of the company as president and chief executive officer. Roberts joined the company as president of Radio Shack in 1993. He was named president of Tandy Corp. in January 1996 and was elected to the Tandy board of directors in February 1997. He was named CEO-elect in April 1998. Rent A Center, Inc. (972-801-1205) announces that its board of directors has accepted the resignation of Danny Z. Wilbanks, senior vice president finance and chief financial officer of the company. Wilbanks plans to pursue other business opportunities.
Lease Signings Investment Management Associates (305-661-0110) leased 4,800 sq.ft. to Blockbuster Video and 1,450 sq.ft. to Check-N-Go at Quail Heights Plaza in Miami, FL; 1,100 sq.ft. to Advance America Cash Centers at Crossroads Shopping Center in Kendall, FL; 3,000 sq.ft. to Harvest Delight at Boykin Center in Miami, FL and 600 sq.ft. to Ernesto’s Dollar Store and 600 sq.ft. to Sanchez Locksmiths at Flagler Shoppes in Miami, FL. Konover Management Corporation (860-232-4545) leased 9,600 sq.ft. to Laser Quest at Ames Plaza in Newington, CT and 8,000 sq.ft. to Union Buffet Restaurant at Fairview Plaza in Chicopee, MA. Courtelis Company (205-379-8467) leased 8,100 sq.ft. to Plej’s Linen Supermarket and 1,400 sq.ft. to The Check Cashing Store at Lakewood Mall in Margate, FL; 44,700 sq.ft. to Regal Cinema at Bonita Town Center in Bonita Springs, FL; 1,719 sq.ft. to Papa John’s Pizza, 3,335 sq.ft. to Golden Lights Restaurant and 2,365 sq.ft. to The Associates at Gainesville Marketplace in Gainesville, FL; 1,875 sq.ft. to Radio Shack at Airpark Plaza in Miami, FL; 1.33 acres to Ruby Tuesday, 1.27 acres to Burger King and 1.38 acres to Chervon at Magnolia Shoppes in Coral Springs, FL and 21,164 sq.ft. to Savers at The Crossings in Orlando, FL. Metro Commercial Real Estate, Inc. (609-866-1900) leased 6,000 sq.ft. to Hollywood Video at Main Line Shopping Center in Cinnaminson, NJ and 10,000 sq.ft. to Rainbow Apparel at Pathmark Shopping Center in Camden, NJ. United Commercial Realty (214-526-6262) leased 8,000 sq.ft. to Noodle Kidoodle, 7,086 sq.ft. to The Market, 7,000 sq.ft. to Banana Republic, 6,640 sq.ft. to Eddie Bauer, 5,845 sq.ft. to The Gap, 5,462 sq.ft. to Harold’s, 5,060 sq.ft. to Mi Cocina, 5,000 sq.ft. to Ann Taylor, 4,607 sq.ft. to Victoria’s Secret, 4,512 sq.ft. to Talbot’s, 4,500 sq.ft. to Williams Sonoma, 4,450 sq.ft. to Bombay Company, 4,431 sq.ft. to Corner Bakery, 3,819 sq.ft. to Gap Kids, 3,321 sq.ft. to St. John’s, 2,868 sq.ft. to Bath & Body Works, 2,700 sq.ft. to Rockfish, 2,600 sq.ft. to Sprint PCS, 2,400 sq.ft. to Fitness in Motion, 2,329 sq.ft. to Magic Moon, 2,099 sq.ft. to Gymboree, 2,270 sq.ft. to Village Jewelers, 2,062 sq.ft. to Out of the Garden, 2,013 sq.ft. to Chico’s, 1,980 sq.ft. to B A Framer, 1,935 sq.ft. to Lovers Egg Roll, 1,919 sq.ft. to GNC Live Well, 1,867 sq.ft. to Starbucks, 1,491 sq.ft. to Animal Crackers and 919 sq.ft. to Zuka Juice at Southlake Town Square in Southlake, TX. The Hutensky Group (860-527-2222) leased 29,500 sq.ft. to Marshalls at Northpark Shopping Center in Huber Heights, OH and 11,950 sq.ft. to Hancock Fabrics at Green Acres Plaza in Saginaw, MI. Pfeil & Company (518-581-8280) leased 120,000 sq.ft. to Home Depot at The Crossing in Clifton Park and Halfmoon, NY. Uniwest Realty, Inc. (703-671-2880) leased 6,500 sq.ft. to P.F. Chang’s China Bistro at White Flint Regional Mall in Bethesda, MD. Divaris Real Estate, Inc. (757-497-2113) leased 3,000 sq.ft. to Payless ShoeSource at Coliseum Crossing Shopping Center in Hampton, VA; 2,500 sq.ft. to FuncoLand at Lynnhaven North Shopping Center in Virginia Beach, VA; 1,460 sq.ft. to SuperCuts at Dam Neck Crossing Shopping Center in Virginia Beach, VA; 1,200 sq.ft. to ECU Products at Holly Point Shopping Center in Chesapeake, VA; 1,200 sq.ft. to D&D Sports Cards at Elmhurst Square I Shopping Center in Portsmouth, VA; 1,200 sq.ft. to Jade Garden at Birdneck Shopping Center in Virginia Beach, VA; 1,000 sq.ft. to Healthy Kids at Birdneck Community Shoppes in Virginia Beach, VA and 79,902 sq.ft. to USA Auctions at Meadowdale Shopping Center in Chesterfield, VA. Vanguard Realty, Inc. (973-443-9700) leased 3,005 sq.ft. to Learning Express at Shop Rite Center in Clark, NJ; 3,200 sq.ft. to Learning Express at Commerce Center in North Brunswick, NJ and 2,700 sq.ft. to Learning Express in Morristown, NJ. Hiffman Shaffer Associates, Inc. (312-332-3555) leased 4,000 sq.ft. to Universal Gear in Chicago, IL; 2,968 sq.ft. to Fitigues in Chicago, IL and 2,500 sq.ft. to Bed Shop in Chicago, IL.
Closings G.L. Variety Stores (219-293-8646) plans to close its variety stores in Mishawaka and South Bend, IN during April. The closings will leave the company with one store in Niles, MI. At one time, the 56-year-old chain operated 18 stores. J.K. Gill Stationers (503-288-6885) recently closed its remaining seven office supply stores in the Portland, OR and Seattle, WA markets. The company cited competition from national chains as the reason for the closures. At one time, the company, which was founded in 1867, operated 63 stores in CA, OH, OR and WA. Balogh Jewelers (305-531-0087) plans to close its retail operation in Miami Beach, FL, but retain its manufacturing and wholesale business. The store, which has catered to celebrities such as Frank Sinatra and the Shah of Iran, has been open for 55 years. The retail portion of the business is being closed because the owner is looking to retire. Richfood Holdings (804-915-6000) recently closed a Farm Fresh supermarket at Crossways Shopping Center in Greenbrier, VA. Richfood acquired the Farm Fresh chain in March 1998 and recently completed a remodeling of the closed store, reducing its square footage from 90,000 sq.ft. to 55,000 sq.ft. However, a small residental base and strong competition caused the company to rethink the viability of the store and close it. Best Buy Co. (612-947-2388) recently closed a 30,000 sq.ft. store at Clocktower Place Center in St. Louis, MO because it was undersized. The company currently uses a 45,000 sq.ft. prototype unit.
Exclusives Weaver Realty Group, Inc. (904-733-0039) has been retained as exclusive leasing agent for Town Center West in Jacksonville, FL. The proposed 132,000 sq.ft. project will be anchored by Publix. CB Richard Ellis (317-269-1005) has been appointed as the exclusive agent to lease, manage and market Shadeland Station in Indianapolis, IN by Invesco Realty Advisors. The 105,000 sq.ft. project is anchored by Marsh, Osco Drugs, TCBY Yogurt, Bruegger’s Bagels, Mailboxes Etc. and CPI Photo.
Space Place Arizona Scottsdale- A 20,000 sq.ft. building is available for sublease
at a shopping center fronting East Cactus Road. The site is located near Arizona
Lifestyle Home Furnishings, Colorado Retreat, Red Lobster and Olive Garden. Colorado Aurora- Hoffman Heights Center is anchored by Ace
Hardware, Brunswick Recreation Center and Video Buffs. The 240,000 sq.ft.
project has spaces of 672 sq.ft., 1,200 sq.ft. and 4,800 sq.ft. available for lease.
Demographics include a three-mile population of 150,000 earning $45,000 as the average
income. Retailers in the area include King Sooper, McFrufals and Family Dollar. Michigan Fenton- Space is available for lease at Silver Pointe
Shopping Center. Also in Fenton- Space is available for lease at Village
Marketplace. In Grand Blanc Township- Anchor positions and in-line space
is available for lease at planned shopping center. In Independence Township-
Space is available for lease at the 57,000 sq.ft. Oak Hill Village which is
currently under development. In Meridian Township- In-line space and
restaurant pad sites are available for lease at Meridian Pointe Shopping Center. In
Pontiac- Space is available for lease in the central business district. In Ypsilanti
Township- Space is available for lease at phase I of Huron Place. New York Cheektowaga- Airport Plaza is anchored by D&K
Stores. The 39,693 sq.ft. project has spaces of 1,400 sq.ft., 3,100 sq.ft., 3,480
sq.ft. and 11,750 sq.ft. available for lease. Demographics include a three-mile population
of 106,977 earning $32,788 as the average income. In Clarence- Clarence
Mall is anchored by Hills Department Store and Office Depot (opening
Spring 1999). The 240,000 sq.ft. project has spaces from 1,920 sq.ft. to 80,000 sq.ft.
available for lease. Demographics include a five-mile population of 143,828 earning
$46,955 as the average income. In Depew- Urbandale Plaza is anchored
by Wegmans Food Markets, Hills Department Store and Firestone. The 230,000
sq.ft. project has spaces from 1,958 sq.ft. to 6,153 sq.ft. available for lease.
Demographics include a three-mile population of 82,035 earning $32,955 as the average
income. In Lancaster- Transit French Plaza is anchored by Tops
Market, Rite Aid and Blockbuster Video. The 130,000 sq.ft. project has spaces
from 1,000 sq.ft. to 3,720 sq.ft. available for lease. Demographics include a three-mile
population of 33,094 earning $34,250 as the average income. In Niskavuna- Niskavuna
Square is anchored by Shop & Save Supermarket and Video World. The
78,156 sq.ft. project has spaces from 3,000 sq.ft. to 6,000 sq.ft. available for lease.
Demographics include a three-mile population of 75,628 earning $39,948 as the average
income. East Setauket- Three Village Shopping Center is anchored
by Swezey’s. The 77,458 sq.ft. project has spaces of 1,200 sq.ft. and 1,600
sq.ft. available for lease. Demographics include a three-mile population of 39,868 earning
$77,878 as the average family income. In Lawrence- Falcaro’s Plaza
Shopping Center is anchored by OfficeMax, Auto Barn and Hollywood Video.
The 60,892 sq.ft. project has a 1,170 sq.ft. space available for lease. Demographics
include a three-mile population of 147,314 earning $66,370 as the average family income.
In Port Jefferson Station- Nesconset Shopping Center is anchored by Frankel’s
Home Furnishings, E&B Marine and Duane Reade. The 120,239 sq.ft. project
has spaces of 1,327 sq.ft., 1,440 sq.ft., 1,600 sq.ft., 2,500 sq.ft., 2,800 sq.ft., 4,800
sq.ft., 7,900 sq.ft. and 22,490 sq.ft. available for lease. Demographics include a
three-mile population of 69,209 earning $68,312 as the average family income. In Riverhead-
Roanoke Plaza Shopping Center is anchored by TJ Maxx, CVS Pharmacy and Produce
Warehouse. The 87,161 sq.ft. project has spaces of 1,120 sq.ft., 2,275 sq.ft., 2,625
sq.ft. and 4,000 sq.ft. available for lease. Demographics include a five-mile population
of 19,962 earning $38,453 as the average family income. Manhattan- A 2,500 sq.ft. ground level space with a 1,995
sq.ft. basement area is available for lease at 56 West 57th Street. The space, which has
25 feet of frontage, is currently occupied by Paron Fabrics. Retailers nearby
include Duane Reade, Sports Authority, Strawberry’s, Mangia Cafe and Motown
Cafe. Pennsylvania Allentown- A 5,500 sq.ft. freestanding former Blockbuster
Video store is available for lease. The site occupies a pad site at Allentown
Shopping Center which is anchored by Giant Foods. Morrisville- A 30,000 sq.ft. former Dunham’s
location, a 20,865 sq.ft. former Acme supermarket space, a 4,310 sq.ft. space and a
3,400 sq.ft. space are available for lease at Morrisville Shopping Center. In Newtown-
Spaces of 13,193 sq.ft. and 50,000 sq.ft. are available for lease at Village of Newtown
South. In Penn Argyl- Spaces of 2,000 sq.ft. and 15,000 sq.ft. (which
can be subdivided) are available for lease at Bangor Plaza. In Philadelphia-
Spaces of 1,600 sq.ft., 2,400 sq.ft., 7,316 sq.ft. and 11,035 sq.ft. are available for
lease at Aramingo Village. Also in Philadelphia- Spaces of 2,013
sq.ft., 4,540 sq.ft. and 20,000 sq.ft. are available for lease at Roosevelt Plaza. Virginia Richmond- Atlee Square is anchored by Eckerd Drug.
The project has a 15,000 sq.ft. space available for lease. Demographics include a
three-mile population of 21,270 earning $53,330 as the average income. The site is located
near Burger King, Dunkin Donuts and McDonald’s. Richmond- Gleneagles Shopping Center is anchored by Food
Lion and Rite Aid. The 88,000 sq.ft. project has spaces of 1,400 sq.ft., 1,600
sq.ft., 2,376 sq.ft. and 4,200 sq.ft. available for lease. Demographics include a
three-mile population of 62,528 earning $57,278 as the average income. |