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Issue Number 24
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The Dealmakers Issue Number 24 for the week of July 9, 1999 Apparel Retailers Seeking Sites Nationwide Gilmore Bros. Inc. trades as Acorn at 12 locations in KY,
IN, MI, NC, OH and SC. The stores, selling men’s and women’s casual apparel,
occupy spaces of 2,000 sq.ft. in downtown store fronts, regional malls and specialty
centers. Plans call for 10 openings in the coming 18 months. Expansion will take place
East of the Mississippi River. Preferred demographics include a population of 75,000
within three miles earning at least $75,000 as the average income. Leases running five
years, with three five-year options, are typical. Franks Big & Tall Mens Shops operates six locations in NJ. The
stores, selling apparel for the big and tall man, occupy spaces of 3,000 sq.ft. to 4,000
sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in
the existing market. Leases running three years are typical and the company cites Casual
Male as competition. Maui Clothing Co. Inc. trades as Maui Water Wear at 12
locations in HI. The stores, selling men’s and women’s apparel, occupy spaces of
1,000 sq.ft. to 3,500 sq.ft. in regional malls and specialty centers. Preferred co-tenants
include Disney Store, Banana Republic, Cache and White House. Plans call for
six openings in the coming 18 months. Expansion will take place in HI, FL, Southern CA and
Guam. Preferred demographics include a population of 30,000 within five miles earning
$60,000 as the average income. Leases running five years, with two options running five
years each, are typical and the company prefers to locate its stores in retail spaces at
hotels having more than 500 rooms. United Fashions of Texas does business as Melrose Store at
48 locations in AZ, CA, NM and TX. The women’s apparel stores occupy spaces of 5,000
sq.ft. to 10,000 sq.ft. in power and strip centers. Preferred anchors include Bealls,
Kmart, Wal*Mart and Weiners. Plans call for as many as 10 openings in the
coming 18 months. Expansion will take place in TX. Preferred demographics include a
population of 50,000 within three miles earning $35,000 as the average income. Leases
running three to five years, with options, are typical.
Buyers & Sellers Madison Partners has the listing to sell Kmart Plaza in Riverside,
CA. The 109,700 sq.ft. project, which is 93% occupied, is anchored by Big Kmart,
Blockbuster Video, Carl’s Jr., Kentucky Fried Chicken and Radio Shack. Space is
available for an expansion of the center. The asking price is $4.5 million. Keen Realty Consultants Inc. has the listing to sell 24 acres of
land located on the border of Middletown and Wallkill, NY. The site has 1,250 sq.ft. of
frontage along Route 211 and is located near Galleria Mall, Wal*Mart, Home Depot, Staples,
Circuit City and Sam’s Club. Town development approvals have been granted. The
company also has the listing to sell 32 acres of land in Newburgh, NY. The site is located
adjacent to Home Depot and near Wal*Mart, Ames, Sears, Steinbach and The AutoMall. CB Richard Ellis represented Alexis Nihon Properties Group in the
disposition of Hammocks Town Center in Kendall, FL. The 172,810 sq.ft. project is anchored
by Publix Supermarket and Eckerd Drug Store. The property was sold to DIM-Vastgoed N.V.
for $18 million. Cedarwood Development, Inc. is in the market to acquire shopping
centers having GLAs of at least 150,000 sq.ft. nationwide. Preferred projects should be
anchored by supermarkets and drug stores. The company is also in the market to acquire
land in major regional locations to develop supermarket/drug store anchored centers. Rockwood Realty Associates, LLC has the listing to sell Plaza at
the Pointe in North Fayette Township, PA. The 151,380 sq.ft. project is anchored by Barnes
& Noble, HomePlace, Michaels Crafts, Gateway City and Old Country Buffet. CB Richard Ellis brokered the sale of Market Meadows in Naperville,
IL. The 147,656 sq.ft. project is anchored by Jewel/Osco, Hollywood Video, Tuesday
Morning, Boston Market and McDonald’s. The buyer was Duxler Properties and the seller
was MetLife International Real Estate Equity Shares Inc. The sale price was not disclosed. The Keyes Company has the listing to sell newly constructed
Winn-Dixie, Eckerd, CVS and Rite Aid stores. All of the tenants have NNN leases. Newcastle Properties, LLC represented Norcor Hanover Associates in
its acquisition of Trade Winds Shopping Center in Hanover Park, IL. The 213,000 sq.ft.
project is anchored by a 65,000 sq.ft. Dominick’s Food Store and an 80,000 sq.ft.
Value City Furniture store. Newcastle Properties will manage and lease the property on
behalf of the new owners. Erwin L. Greenberg Commercial Corporation brokered the sale of a
former Farmer Jack supermarket lease at Brookhill-Azalea Shopping Center in Richmond, VA
to Food Lion. Food Lion plans to renovate the store and open it under its name and format
this month. Sperry Van Ness has the listing to sell a Rite Aid in Moreno
Valley, CA. The 17,902 sq.ft. project has a 20-year lease and is located at a signalized
intersection. The asking price is $4.975 million. The company also has the listing to sell
Rite Aid, Carl’s Jr. and AutoZone stores in La Verne, CA. The three stores are
located on a 5.9 acre parcel of land at a signalized intersection. The tenants have 15 and
20 years leases. The asking price is $5.9 million. Pan Pacific Retail Properties, Inc. recently acquired Marina
Village Shopping Center in Huntington Beach, CA. The 149,100 sq.ft. project is anchored by
Vons Supermarket and Sav-On Drugs. The center was acquired for $13.7 million. The company
also recently acquired Auburn North Shopping Center in Auburn, WA. The 173,000 sq.ft.
project is anchored by Albertson’s Supermarket and Rite Aid. The center was acquired
for $9.3 million. Storage USA, Inc. is in the market to acquire land parcels running
three to seven acres in Brooklyn, Queens, Staten Island, Manhattan, Nassau and Suffolk
counties, NY for the development of self storage facilities. Preferred parcels should be
adjacent to or visible from major arterial highways, have traffic counts exceeding 20,000
vehicles per day and be zoned or be available to be rezoned to permit self storage
facilities. In addition to acquiring land, the company is also in the market to acquire
buildings whose use can be adapted to self storage. Preferred buildings should have GLAs
of at least 75,000 sq.ft. Examples include single-story vacant big-box anchors of
community and power centers and multi-story loft buildings. The Seeley Company has the listing to sell an Office Depot store in
La Crescenta, CA. The 25,920 sq.ft. project has a 15-year NNN lease. The asking price is
$5.15 million. ARC Properties, Inc. is in the market to acquire land for the
development of drug stores, supermarkets and power centers in the New York City
metropolitan market. The company is also in the market to acquire single tenant buildings
and power centers nationwide. Pyramid Brokerage Company, Inc. has the listing to sell two acres
of vacant land in Syracuse, NY. The site is located adjacent to the 1.5 million sq.ft.
Carousel Center that is part of the Lakeside Development project which includes the
regional transportation center, the regional market, P&C Stadium and an aquarium. The
site is part of a 3.25 acre parcel of land on which the owner plans to develop a motel on
1.25 acres. The Ross Group, Inc. has the listing to sell a Walgreens store in
Lexington, KY. The asking price is $5.15 million.
Closings Federated Department Stores (513-579-7000) plans to close its 163,000 sq.ft. Lazarus Department Store at Glendale Mall in Indianapolis, IN late next month. The company cited several reasons for the closure include the sale of the mall to new owners, the proximity of the Castleton Square store just four miles away and the multi-million dollar renovation to the Castleton Square. Max & Erma’s Restaurants (614-431-5800) recently closed an Ironwood Cafe in Columbus, OH because of under performance. The closed unit was the first Ironwood Cafe in the chain. The company operates another Ironwood Cafe in Cleveland and is planning to open a unit in Cincinnati next month. D.I.Y. Home Warehouse, Inc. (216-328-5100) plans to close its home improvement stores in Akron, Boardman and Mansfield, OH. After liquidating the merchandise, the company plans to sell two of the stores and terminate the lease of the third. Proceeds from the sale will be used to pay off the company’s mortgage and working line of credit obligations. The company’s goal is to become debt-free so it will have the flexibility and resources to pursue new avenues of growth and expansion in the future. Evans Inc. (312-855-2000) plans to close its women’s apparel stores at Yorktown Shopping Center in Lombard, IL; Harlem Irving Plaza in Norridge, IL and Orland Square Shopping Center in Orland Park, IL by the end of this month. The stores are being closed because they have been underperforming. Kroger Co. (513-762-4000) recently closed four Smith’s Food & Drug Centers in Phoenix, Scottsdale, Gilbert and Tucson, AZ following its merger with Fred Meyer Inc. The stores were closed because of their proximity to Fry’s grocery stores, which Kroger also owns. Kroger is in the midst of converting the acquired Smith’s stores to the Fry’s nameplate. Kroger has no immediate plans to sell the store or convert them to other uses. ABC Fabric Co. (813-251-0775) plans to close its Mae’s Home & Fabric Center stores in Newport News and Williamsburg, VA by the end of this month. The company is closing the stores in effort to avoid filing for bankruptcy.
Who’s Opening & Where Saks Inc. (205-940-4000) plans to open a 24,000 sq.ft. Off 5th Saks Fifth Avenue Outlet store at Concord Mills in Charlotte, NC during September and a 27,000 sq.ft. Off 5th Saks Fifth Avenue Outlet store at Katy Mills in Katy, TX during October. Roadhouse Grill, Inc. (954-489-9699) recently opened restaurants in Clearwater, FL, Conyers, GA and Henrietta, NY. To date, the company has opened 12 restaurants during its current fiscal year. As many as 15 restaurants are planned for fiscal 2000. Currently, the company operates and franchises 60 restaurants in AL, AR, FL, GA, LA, MS, NV, NY, OH, SC and TN. www.roadhousegrill.com The Great Frame Up (800-443-3325), which operates and franchises 117 stores in 25 states, is planning to open as many as 12 stores this year through the conversion of independent framing retailers and new store development. Markets of interest include major cities in TX and along the Atlantic seaboard. www.thegreatframeup.com Huddle House (404-377-5700) plans to expand its restaurant base from its traditional Southeastern states locations into KY, OH, VA and WV with 35 stores before the end of its next fiscal year. Currently, the company operates 335 restaurants in 12 states. The Coffee Plantation (503-672-9603) plans to open as many as 10 stores, including its first drive-through location, in AZ. Leases for five Phoenix stores have been signed with those stores expected to open this year. A sixth Phoenix location is scheduled to open next year at Collier Center. Three other Phoenix stores and a unit in Tucson are currently being negotiated. The five Phoenix stores are expected to open at Bashas’ Center, Chandler Sunset Center, Squaw Peak Promenade, Arrowhead Palms and at Arizona State University. In addition, the company is working to sign deals to open stores in Scottsdale and Tempe. Advantica Restaurant Group Inc. (864-597-8000) recently remodeled three Coco’s restaurants in CA, investing $325,000 at each location. The new prototype design also incorporates the chain’s new name Coco’s California Cafe. Additional restaurants will be renovated this year. The company currently operates and franchises 181 locations in AZ, CA, CO, IN, MO and WA. In addition, the company plans to invest more than $30 million this year to remodel 150 Denny’s restaurants, giving them a 1950s appearance. The company plans to eventually remodel all of the more than 1,700 company-owned and franchised locations. The conversion of the company-owned units is expected to take two to three years. For franchised locations, the time frame for remodeling is flexible since store owners will incur all of the cost of $200,000 to $300,000 to remodel the restaurants. OfficeMax Inc. (216-921-6900) opened 24 stores during the first quarter bringing its store count to 856 locations in 49 states. The company is planning to open 25 stores during the second quarter. Nike (503-641-6453) plans to open its NikeTown London store in London, England this month. Best Buy Co., Inc. (612-995-7049) plans to open stores at Hacienda Crossing Shopping Center in Dublin, CA; Hilltop Mall in Pinole, CA; McCarthy Road Shopping Center in Milpitas, CA; Breuners Pleasant Hill Shopping Center in Pleasant Hill, CA; in San Carlos, CA; North Attleborough Shopping Center in North Attleborough, MA; in Salem, NH; in Worcester, MA, in Cape Cod, MA; in Holyoke, MA; Mall of Georgia in Buford, GA; Pacific Coast Plaza in Oceanside, CA and at Park Valley Center in San Diego, CA during Summer. The company recently opened a store featuring its "Concept 4" format in Bloomingdale, IL. The unit replaces a store that was located across the street. Other stores to be updated to the new format this year include units in Downer’s Grove, Crystal Lake, Orland Park, West Dundee and Schaumburg, IL. www.bestbuy.com Burger King Corporation (305-378-3000) recently opened a restaurant at the Corning Building in downtown Hartford, CT and a restaurant in La Paz, Bolivia. The La Paz restaurant is located at 11,000 feet, making it the highest Burger King restaurant in the chain. The company plans to open 500 restaurants in Italy and other European countries over the next 20 years under a strategic alliance with Autogrill SpA. Future restaurants are planned for Italian central cities, shopping malls and on freeways. Wherever possible, Burger Kings will open in the airport and train station food courts where Autogrill operates. Plans also call for a number of co-branded restaurants serving both Burger King fare and Spizzico quick service pizzas. Spizzico operates 140 restaurants in Europe and Autogrill has made their expansion a priority. Overall, Autogrill operates 636 units in eight European countries. www.burgerking.com
Exclusives KLNB Inc. (410-321-0100) represents The Tile Shop in the Baltimore, MD-Washington, D.C. market. Recently, the company signed a lease to open a 38,000 sq.ft. store at College Plaza in Rockville, MD and is seeking 20,000 sq.ft. spaces in Northern VA and Baltimore County, MD. The company currently operates 15 stores in nine states and has targeted the East Coast for its next expansion program. Overall, the company is looking to open as many as 10 stores in the coming 18 months along the East Coast. The stores feature interactive sales displays that demonstrate the innovative uses for ceramic tile and stone products and a typical floorcovering display will show single pieces of tile in an assortment of colors. Room displays consist of kitchens, bathrooms and fireplaces to highlight the products. The Breder Companies (305-251-1520) was recently awarded a contract by James D. Casto Corporation to lease and manage one million sq.ft. of shopping centers in AL, FL, GA, MS and OH. The centers include Town and Country Plaza, Port Charlotte, FL, 127,380 sq.ft.; Kmart-Staples Plaza, Sarasota, FL, 121,708 sq.ft.; Southland Shopping Center, Fort Lauderdale, FL, 168,000 sq.ft.; Kmart Plaza, West Palm Beach, FL, 119,950 sq.ft.; Kmart Plaza, Dothan, AL, 111,850 sq.ft.; Kmart Plaza, Greenville, MS, 115,000 sq.ft.; Kmart Plaza, Albany, GA, 124,930 sq.ft. and Kmart Center, Columbus, OH, 109,600 sq.ft. Hastings Cohn Real Estate (716-886-3325) has been named the exclusive agent for a former Tops Supermarket in West Seneca, NY. The 54,000 sq.ft. building is situated on 7.3 acres and is located one half mile from exit 55 of I-90. The property is also available for sale. The company has also been named the exclusive leasing agent for Garden Village Plaza in Cheektowaga, NY. The 185,000 sq.ft. project is anchored by Ames and Vix Drug Store. In-line spaces from 960 sq.ft. to 35,000 sq.ft., as well as a pad site, are available for lease. Robert K. Futterman & Associates (212-599-3700) has been named the exclusive leasing agent for the retail space at The Chesapeake, 345 East 94th Street in Manhattan, NY, a 30-story residential building currently under development. There are no major competing big box retailers or national chains in the immediate vicinity of the new space and retail rents in that part of the city are averaging approximately $55 per square foot.
New Construction Copaken White & Blitt recently began a redevelopment and
renovation of Eastland Mall in Bloomington, IL. Included in the redevelopment is
the addition of a two-level Famous Barr Department Store. The store, which will
become the fifth anchor at the project, will feature 75,000 sq.ft. on the first floor and
45,000 sq.ft. on the second floor. A 15,500 sq.ft. addition will connect the store to the
existing mall and can accommodate two or three tenants. The renovations include the
expansion of the Kohl’s Department Store by 20,000 sq.ft., interior lighting
upgrades, remodeled entrances, new floors, additional landscaping and parking lot
improvements. The mall is also anchored by Bergner’s, JC Penney and Sears.
When all of the additions are completed, the mall’s GLA will increase to more than
783,000 sq.ft. Famous Barr is expected to open during November and eight new specialty
stores are expected to open during Fall 1999 and Spring 2000. The Flatley Company recently began the conversion of the existing Village
Mall into the Village Shoppes in which the site will be transformed from being
an enclosed mall to becoming a cohesive collection of village shops, hosting a mix of
major retailers and specialty stores. The renovation calls for the removal of more than
50,000 sq.ft. of retail space at the core of the existing mall in order to reconfigure the
center. Located on the border of Canton, Sharon and Stoughton, MA, the Village Shoppes
will become an open-air, lifestyle center that will have traffic flow and an island
configuration at the center and will be laid out to better facilitate the stores and
shorten the walking distance for shoppers. The core anchor spaces are expected to be
occupied by large, high profile retailers. At the center of the project will be an
outdoor, gazebo styled structure and brick and canopied pedestrian walkways that will
serve the purpose of outdoor common areas. Retailers are expected to begin opening during
late 1999 or early 2000. The Flatley Company purchased the existing Tri-Town Mall
in 1977 and by 1979 had completed rehabilitated the center and renamed it The Village
Mall. The project was expanded in 1984 when Caldor became an anchor. The Oliver Group recently broke ground on Main Street Florida
in North Jacksonville, FL. The $110 million project will be anchored by Bed Bath &
Beyond, Books-A-Million, Burlington Coat Factory and Muvico Theaters. Two
additional anchors are expected to be announced soon. The much anticipated project had
been pushed back several times since plans for the mall were first unveiled in 1996 for an
open air mall, then slated to open in 1998. Since then, the company adjusted the timetable
for construction to court additional tenants and to coordinate building and road loans.
The mall is also receiving a $17.5 million incentive package from the city. Taubman Centers, Inc. and Swerdlow Real Estate Group
recently announced that they are in discussions to jointly develop Dolphin Mall in
Miami, FL. The joint venture is expected to be an equal partnership between the two
companies. Swerdlow Group broke ground on the 1.4 million sq.ft. project in 1998 and both
parties are expected to participate in the construction and design phases of the
development as well as sharing leasing responsibilities. Taubman is expected to manage the
center upon completion. Located four miles west of Miami International Airport at the
intersection of Dolphin Expressway and the Florida Turnpike, Dolphin Mall will feature
over 200 outlet, dining and entertainment retailers in an enclosed environment.
Seventy-five percent of the space has been committed to and 60% of the space has fully
executed leases. Anchors will include Off 5th--Saks Fifth Avenue Outlet, Dave &
Buster’s, Burlington Coat Factory and a 28-screen Regal Cinemas, the
largest in the state of FL, as well as a 9,000 sq.ft. Host Marriott food court. The
mall is expected to open during late 2000.
Sources of Financing L.J. Melody & Company’s (713-787-1900) subsidiary North Coast Mortgage Company recently arranged permanent financing of $7.85 million for 205 Place in Portland, OR. Financing was provided by Bear Stearns Funding to 205 Place Associates LLC. The 63,000 sq.ft. project is anchored by Blockbuster, Kinko’s, America’s Best, Sleep Country and Newport Bay Restaurant. L.J. Melody & Company recently arranged fixed-rate permanent financing of $7.132 million for Bell Palm Plaza in Bell, CA. GE Capital Access provided the funding for the borrower, a limited partnership controlled by Watt Family Properties. The 80,000 sq.ft. project is anchored by Peter Piper Pizza, Tres Hermanos and Hometown Buffet. The company recently provided permanent financing of $6.1 million for Oxford Center in Los Angeles, CA. Lehman Brothers Holdings provided the funding for the borrower, Oxford Center, LLC. The company recently arranged fixed-rate financing of $21.5 million for North Mesa Plaza in North Las Vegas, NV. CIGNA provided the funding for the borrower, a limited partnership controlled by Watt Family Properties. The 400,000 sq.ft. project is anchored by Vons, Payless Drugs, Petco, OfficeMax, Wal*Mart and Burger King. The company also recently arranged fixed-rate financing of $7.7 million for North Lakeland Plaza in Lakeland, FL. Nationwide Life Insurance Company provided the funding for the borrower, Agree Limited Partnership. The 171,000 sq.ft. project is anchored by Kmart and Best Buy. Breslin Realty Development Corp. (516-741-7400) recently arranged the following refinancings: $25 million portfolio refinance for a shopping center in Philadelphia, PA. Financing was provided by Morgan Guaranty. A $7 million portfolio refinance for Levittown Mews in Levittown, NY. Financing was provided by Roslyn Savings Bank. A $5 million portfolio refinance for North Boulevard in Manhasset, NY. Financing was provided by G.E. Capital. A $6.1 million portfolio refinance for Willow Wood Shoppes in Wantagh, NY. Financing was provided by Phoenix Home. A $10.25 million portfolio refinance for Sayville Plaza in Sayville, NY. Financing was provided by Roslyn Savings. A $3.5 million portfolio refinance for Dick’s Sporting Goods in Henrietta, NY. Financing was provided by Ameresco. A $12 million portfolio refinance for Woodbury Plaza in Plainview, NY. Financing was provided by Phoenix Home. A $53 million portfolio refinance for vacant land in Yaphank, NY. Financing was provided by Lehman Brothers. A $4 million portfolio refinance for Superior Steakhouse Systems in Long Island, NY. Financing was provided by Fleet. An $8 million portfolio refinance for Smith Haven Plaza in Lake Grove, NY. Financing was provided by Met Life. A $17.1 million portfolio refinance for Carmans Plaza in Massapequa, NY. Financing was provided by Arbor. Marabella Commercial Finance (760-741-0800) recently arranged financing in the amount of $720,000 for a Kragen Store. The fixed-rate loan carries an interest rate of 8.25% for 10 years with a 25-year amortization schedule. The company recently arranged financing in the amount of $620,000 for a Kragen Store. The fixed-rate loan carries an interest rate of 8.25% for 10 years with a 25-year amortization schedule. The company also recently arranged financing in the amount of $350,000 for a Checker Auto store. The fixed-rate loan carries an interest rate of 8.1% for 15 years with a 15-year amortization schedule. Meritage Hospitality Group Inc. (616-776-2600) recently obtained a $5 million construction and permanent financing commitment from Fleet Business Credit Corporation to develop up to four new Wendy’s restaurants. The financing terms include a 20-year amortization with a fixed interest rate of 220 basis points over 20 year treasuries. The company, which is the nation’s only publicly held Wendy’s franchisee, currently operates 27 Wendy’s units in southern and western MI. Holliday Fenoglio Fowler (214-265-0880) recently arranged a multimillion dollar loan for the refinancing of a 109,800 sq.ft. Builders Square store in Indianapolis, IN. The 20-year, fixed-rate loan was provided on behalf of the borrower, Centre West Builders Square through Aegon USA Realty Advisors. The company recently arranged a $1.25 million refinancing loan for the 22,900 sq.ft. Giranada Plaza Shopping Center in Ormand Beach, FL. The 10-year, fixed-rate loan was placed on behalf of the borrower, Equifirst Investments & Development through Column Financial. The company recently arranged a $6.2 million refinancing loan for a retail center in Branford, CT. The 20-year, fixed-rate loan was placed on behalf of the borrower, Branford MT, LLC through Benefits Insurance Company. The 60,462 sq.ft. project is anchored by Hoyts Cinema and Walgreens. The company recently secured $19.25 million in financing for the acquisition of Forest Plaza Shopping Center in Staten Island, NY. The fixed-rate financing was provided by Lehman Brothers on behalf of the borrower, Forest Plaza Associates. The 165,158 sq.ft. project is anchored by A&P Supermarket, CVS and Jack LaLanne Fitness Center. The company arranged a $1.85 million permanent financing facility for the newly constructed 17,500 sq.ft. Dowlen Center in Beaumont, TX. The fixed-rate financing was provided by Lehman Brothers on behalf of the borrower, Boundary Holdings I, Ltd. The company recently secured a refinancing loan of $6 million for a 102,801 sq.ft. retail/office complex in Dallas, TX. The one-year, floating rate loan was placed through Key Bank on behalf of the borrower Tarragon Realty Investors Inc. The project is anchored by Tom Thumb supermarket. The company also recently arranged a refinancing loan of $12.5 million for Marketfair Shopping Center in Fayetteville, NC. The floating-rate loan was placed through CIBC Oppenheimer on behalf of the borrower Fayetteville Marketville Investors, LLC. The 248,000 sq.ft. project is anchored by Sam’s Club and Carmike Theater. Northland/Marquette Capital Group, Inc. (612-356-0100) recently arranged a $7.65 million loan for the 181,197 sq.ft. Apple Valley Square Shopping Center in Apple Valley, MN. The loan was placed with The Principal Financial Group. The company also recently funded a $4.7 million loan on The New Landing Shopping Center in Kansas City, MO. The loan was placed through J.P. Morgan Mortgage Capital Inc. on behalf of the borrower, Landing Venture Associates, L.L.C. GMAC Commercial Mortgage (215-328-3383) recently closed a $28.32 million mortgage for Red Rose Commons in Lancaster, PA. The fixed-rate, permanent financing was provided to Red Rose Commons Associates, LP, a partnership created by affiliates of Goldenberg Group and Pennsylvania Real Estate Trust. The 460,000 sq.ft. project is anchored by Home Depot, Weiss Markets, Sports Authority, Circuit City, PetsMart, Barnes & Noble, Old Navy, OfficeMax and Linens ‘N Things. www.gmacc.com
Lease Signings EMB (914-698-5500) leased 39,000 sq.ft. to CompUSA in Queens, NY; 25,000 sq.ft. to DSW in Woodbridge, NJ; 18,000 sq.ft. to Guitar Center in Paramus, NJ and 16,000 sq.ft. to Guitar Center in Larchmont, NY. The Cafaro Company (330-747-2661) leased 5,000 sq.ft. to Paul Harris at Governor’s Square Mall in Clarksville, TN; 2,844 sq.ft. to Journey’s and 3,750 sq.ft. to Aeropostale at Eastwood Mall in Niles, OH; 26,103 sq.ft. to Office Depot at Southview Plaza in Selina, KS; 25,000 sq.ft. to Borders, 35,930 sq.ft. to Stein Mart and 23,660 sq.ft. to Michael’s Arts & Crafts at Millcreek Pavilion in Erie, PA; 4,890 sq.ft. to Rent-A-Center and 1,715 sq.ft. to Zale’s Jewelers at Ashtabula Mall in Ashtabula, OH; 1,300 sq.ft. to Zale’s Jewelers at Frenchtown Square Mall in Monroe, MI; 1,286 sq.ft. to Babbage’s at Kennedy Mall in Dubuque, IA; 6,350 sq.ft. to Kirkland’s and 5,500 sq.ft. to Longhorn Steakhouse at Ohio Valley Mall in St. Clairsville, OH; 3,703 sq.ft. to Pacific Sunwear, 2,246 sq.ft. to Hot Topic and 4,275 sq.ft. to American Eagle Outfitters at South Hill Mall in Puyallup, WA; 10,937 sq.ft. to Dunham’s Discount Sport Outfitters at Frenchtown Square Mall in Monroe, MI and 5,572 sq.ft. to Kirkland’s at Meadowbrook Mall in Bridgeport, WV. Mid-Atlantic Realty Trust (410-684-2000) leased 55,000 sq.ft. to Safeway at Burketown Plaza in Burke, VA; 32,000 sq.ft. to Gap/Old Navy at Harford Mall in Bel Air, MD and 50,000 sq.ft. to SuperFresh Supermarket at Rosedale Plaza in Baltimore, MD. Mid-America Asset Management Company (630-954-7300) leased 3,483 sq.ft. to 9 West for a Banister Shoe Warehouse store at Town & Country Mall in Arlington Heights, IL; 5,000 sq.ft. to Hollywood Video at Plaza Mercado in Chicago, IL; 15,053 sq.ft. to Golfmart at Fabyan Crossing in Geneva, IL and 12,000 sq.ft. to P.M. Bedrooms and 3,788 sq.ft. to Leslie’s Poolmart at Lombard Plaza in Lombard, IL. Divaris Real Estate, Inc. (757-497-2113) leased 75,000 sq.ft. to L.L. Bean at Tysons Corner Center in McLean, VA; 2,111 sq.ft. to European Beauty Concepts in York County, VA; 24,000 sq.ft. to Office Depot at Hilltop Plaza Shopping Center in Virginia Beach, VA; 12,800 sq.ft. to Inlet Fitness at Long Bay Pointe in Virginia Beach, VA and 15,000 sq.ft. to Portside Imports at Newport Crossing Shopping Center in Newport News, VA. Caruso Affiliated Holdings (310-458-0202) leased 7,100 sq.ft. to Restoration Hardware, 6,200 sq.ft. to Sur La Table, 2,600 sq.ft. to Wolf Camera, 1,300 sq.ft. to Pick Up Stix and 1,200 sq.ft. to Robeks Juice at The Promenade at Westlake in Thousand Oaks, CA.
Real Estate Professionals Making News Katz & Associates Corporation (561-995-9471) recently opened an office in Boca Raton, FL. The office will be managed by Kevin Higgins, senior vice president, and Marty Hennessy, vice president. Darden Restaurants, Inc. (407-245-4000) announces that Clifford Whitehill-Yarza, senior vice president, general counsel and secretary will retire during Summer after 37 years with the company. His position will be filled by Paula Shives, currently general counsel for Long John Silver’s Restaurants, Inc. The company also announces that Gary Heckel, president of Bahama Breeze Restaurants has also been named senior vice president Darden Restaurants. The Schultz Organization (732-855-0001) announces that David Iacobucci has joined the company as vice president-director of asset management. In his new position, Iacobucci’s role will be to expand the asset management division’s portfolio, assist in integrating services among the firm’s brokerage and management divisions and be responsible for all financial projections, analysis and reporting mechanisms for their clients. The Macerich Company (310-394-6000) announces that Ed Hopwood has joined the company as leasing manager for the recently acquired Cascade and Kitsap Malls in WA, continuing the role he held with the properties’ former owner. In addition to directing leasing activity for Cascade and Kitsap, Hopwood will also assist in the leasing of Redmond Town Center. The company also announces that Erin Byrne has joined the company as a leasing representative for Broadway Plaza in Walnut Creek, CA; The Village at Corte Madera in Corte Madera, CA and Carmel Plaza in Monterey, CA. Previously, Byrne spent five years as a retail properties specialist with CB Richard Ellis, where she was responsible for various Bay Area projects.
Lead Sheet ABC Appliance Inc. Appliances The 31-unit chain operates locations in MI, IN and OH. The stores, selling appliances and electronics, occupy spaces of 24,000 sq.ft. in freestanding facilities. Preferred co-tenants include carpet stores and furniture stores. Plans call for three openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a trade area population of 100,000 earning at least $50,000 as the average income. Leases running five years are typical. Rag Shops, Inc. Arts/Crafts/Fabrics The 70-unit chain operates locations in CT, DE, FL, NJ, NY and PA. The stores, selling arts, crafts and fabrics, occupy spaces of 15,000 sq.ft. in power and strip centers. Preferred anchors include T.J. Maxx and supermarkets. Plans call for 12 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 100,000 within five miles earning $45,000 as the average income. Leases running five years, with four five-year options, are typical. A&A Auto Parts Inc. Automotive The 20-unit chain operates locations in PA. The automotive parts stores occupy spaces of 8,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market. The Parts Plus Group Inc. Automotive The 21-unit chain operates locations in NJ and PA. The automotive parts stores occupy spaces of 5,000 sq.ft. in freestanding facilities. Plans call for nine openings in the coming 18 months. Expansion will take place in the existing markets. Leases running five years are typical and the company prefers a vanilla shell. Anna’s Linens Bed/Bath/Linens The 41-unit chain operates locations in CA and WA. The stores, selling bed and bath accessories and linens, occupy spaces of 5,000 sq.ft. to 7,000 sq.ft. in regional malls and power centers. 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, with options, are typical. Kirlan’s Inc. Cards & Gifts The 105-unit chain operates locations in IL, IN, IA, KY, MI, MO, OH, OK, TN and WI. The stores, selling Hallmark cards and gifts, occupy spaces of 3,500 sq.ft. to 5,000 sq.ft. in regional malls and strip centers. Plans call for as many as 12 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical. Babbage’s, Etc. Marc Summey Computers The 846-unit chain operates locations nationwide. The stores, selling video games and accessories, occupy spaces of 1,000 sq.ft. to 2,000 sq.ft. in regional malls, power and strip centers. Plans call for at least 100 openings in the coming 18 months. Expansion will take place nationwide. Wooten Oil Co. Convenience Store The 23-unit chain operates locations in NC. The convenience stores, which also sell gasoline, occupy spaces of 2,400 sq.ft. in freestanding facilities. Preferred co-tenants include fast food restaurants. Plans call for five openings in the coming 18 months. Expansion will take place in the existing market. Richman Gordman ½ Price Stores, Inc. Department Store The 33-unit chain operates locations in CO, IA, KS, MO, NE, OK and SD. The stores, selling name brand apparel and home fashions, occupy spaces of 50,000 sq.ft. in power, specialty and strip centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in St. Louis, MO; Fort Collins and Colorado Springs, CO; Cedar Rapids, IA; Oklahoma City, OK and the Quad Cities area of IL and IA. Preferred demographics include a population of 100,000 within three miles earning $55,000 as the average income. Leases running 10 years, with two options running five years each, are typical and the company cites Kohl’s, J.C. Penney, Federated and May Co. stores. CVS Drug Store The 4,096-unit chain operates locations in AL, CT, DE, FL, GA, IL, IN, KY, ME, MA, MD, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, VT, VA, WV and Washington, D.C. The drug stores occupy spaces of 10,125 sq.ft. in freestanding facilities. Plans call for 140 openings in the coming 18 months. Expansion will take place in the existing markets. Ace Cash Express Finance The 720+-unit chain operates locations nationwide. The stores, offering check cashing and related financial services, occupy spaces of 1,000 sq.ft. to 1,300 sq.ft. in freestanding facilities and strip centers. Preferred anchors include supermarkets. Plans call for 100 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 10,000 within one mile earning $25,000 to $40,000 as the average income. Leases running three to five years, with options, are typical and the company is franchising. Family Dollar Stores, Inc. General Merchandise The 3,450-unit chain operates locations in 39 states. The stores, selling general merchandise for the family and home, occupy spaces of 7,000 sq.ft. to 8,000 sq.ft. in downtown store fronts, freestanding facilities and strip centers. Preferred anchors include supermarkets. Plans call for at least 600 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 20,000 within two miles earning less than $35,000 as the average income. Leases running five years, with five options running five years each, are typical and the company prefers a vanilla shell. Braude Jewelry Corp. Jewelry The 24-unit chain operates locations in IL, MI, MN and WI. The jewelry stores occupy spaces of 800 sq.ft. to 1,200 sq.ft. in regional malls. Plans call for as many as five openings in the coming 18 months. Expansion will take place in MD and Washington, D.C. Leases running seven to ten years are typical and the company prefers a vanilla shell. Sun Shade Optique Optical The 32-unit chain operates locations in CA, NV, TX and WA. The stores, selling sunglasses and watches, occupy spaces of 500 sq.ft. to 1,000 sq.ft. in regional malls. Plans call for five openings in the coming 18 months. Expansion will take place in CA, Las Vegas, NV and Houston, TX. Leases running 10 years are typical and the company, which prefers a vanilla shell, cites Sunglass Hut as competition. Petland Discounts, Inc. Pet Supplies The 106-unit chain operates locations in CT, NJ and NY. The pet supply stores occupy spaces of 2,400 sq.ft. in strip centers. Growth opportunities are sought in the existing markets. Leases running 10 to 15 years are typical. Anime Crash Specialty The three-unit chain operates locations in MA, NY and RI. The stores, selling Japanese animation art and collectibles, occupy spaces of 1,500 sq.ft. in downtown store fronts and power centers. Growth opportunities are sought in NY, Washington, D.C. and Canada. Preferred demographics include a population of 100,000 within three miles earning $50,000 as the average income. Leases running 15 years are typical and the company prefers a vanilla shell. Busy Body Inc. Sporting Goods The 60-unit chain operates locations in CA, FL, GA, IL, MD, MA, MO, PA, TX, VA and Washington, D.C. The stores, selling fitness equipment, occupy spaces of 3,500 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 as well as in MI. Preferred demographics include a population of 250,000 within five miles earning $50,000 as the average income. Leases running five years, with options, are typical. Dunham’s Athleisure Corp. Sporting Goods The 112-unit chain operates locations in IL, IN, IA, MD, MI, MN, NY, OH, PA, WV and WI. The sporting goods stores occupy spaces of 12,000 sq.ft. to 50,000 sq.ft. in freestanding facilities, regional malls, power and strip centers. Preferred co-tenants include Kmart, Target and Wal*Mart. 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 40,000 within five miles earning $35,000 as the average income. Leases running five years are typical. Franchise Store International Sporting Goods The 41-unit chain operates locations in FL, GA and TN. The bicycle stores occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in regional malls, power, specialty and strip centers. Preferred co-tenants include Blockbuster Video and pizza shops. Plans call for 15 openings in the coming 18 months. Expansion will take place in the Southeastern region. Preferred demographics include a population of 70,000 within 10 miles earning at least $50,000 as the average income. Leases running five to ten years are typical and the company is franchising. Homeland Stores Inc. Supermarket The 77-unit chain operates locations in KS, OK and TX. The supermarkets occupy spaces of at least 30,000 sq.ft. in freestanding facilities and strip centers. Plans call for three openings in the coming 18 months. Expansion will take place in OK. Leases running 20 years are typical and the company cites Albertsons and Bakers as competition. Waremart Inc. Supermarket The 30-unit chain operates locations in CA, ID, NV, OR and WA. The supermarkets occupy spaces of 85,000 sq.ft. to 100,000 sq.ft. in freestanding facilities, power and strip centers. Preferred co-anchors include HomeBase and Home Depot. Plans call for seven openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 60,000 within eight miles earning $50,000 as the average income. The company prefers to own its locations. Family Video Movie Club Video The 150-unit chain operates locations in IL, IN, IA, MI, MO, OH and WI. The video stores occupy spaces of 5,000 sq.ft. to 7,000 sq.ft. in freestanding facilities. Plans call for as many as 50 openings in the coming 18 months. Expansion will take place in the existing markets. The company prefers to own its locations. Hollywood Entertainment Corp. Video The 1,400-unit chain operates locations nationwide. The video stores occupy spaces of 5,000 sq.ft. in freestanding facilities, regional malls, specialty and strip centers. Plans call for 350 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 20,000 within two miles. Leases running 10 years are typical.
Mergers & Acquisitions Wild Oats Markets, Inc. (303-440-5220) recently acquired General Nutrition Companies, Inc.’s six Nature Northwest natural grocery unit for $57 million -- $40 million in cash and the assumption of a note for $17 million. The stores operate in Portland, OR and Vancouver, WA under the names Nature Fresh Northwest, Nature’s Marketplace and Nature’s Northwest. In addition, there are two new Nature’s sites and one relocation under development. The stores will continue to operate under the various Nature’s names. Wild Oats has also agreed to acquire three natural foods supermarkets from United Natural Foods, Inc. for $6.5 million. The acquired stores, which trade as Food for Thought, Cheese and Stuff and Natureworks!, are located in Westport and Hartford, CT and Melbourne, FL. United Natural Foods will remain the primary supplier to the stores and will continue to own and operate 11 stores in FL, MD, MA and NY. www.wildoats.com Hallmark Cards, Inc. (816-274-4721) recently acquired The Picture People, a mall-based national portrait studio chain. Financial terms were not disclosed. Originally founded as Expressly Portraits in 1987, The Picture People operates 183 portrait studios in 19 states and reported sales of $85 million in 1998. In 1997, Expressly Portraits began implementing a new store concept named The Picture People and the redesigned stores provide a fun and friendly environment. Nash Finch Company (612-844-1153) recently entered into a definitive agreement to acquire 18 supermarkets owned by Erickson’s Diversified Corporation through a cash purchase of Erickson’s stock. Included in the purchase are 12 stores in MN and six stores in WI, as well as various non-operating assets. The Erickson’s stores trade as More-4, Econofoods, Food Bonanza and Erickson’s City Market. www.nashfinch.com U.S. Pawn, Inc. (303-657-3550) and Cash-N-Pawn International, Ltd. recently executed an agreement to merge CNP into USPN. USPN owns and operates 13 pawn shops located in CO and WY. CNP is privately held and owns and operates 10 pawn shops in MN, IN and MO. The deal is expected to close during the fourth quarter. The combined companies plan expansion in the Western, Midwestern and Great Lakes regions. www.uspawn.com The Limited (614-479-7000) recently sold 60% of its interest in Galyan’s Trading Co. to Freeman Spogli & Co. for $190 million. The transaction is expected to close this month. Galyan’s plans to open at least two stores this year and two stores next year. Currently, the company operates 16 sporting goods stores. Edison Brothers Stores (314-331-6000) recently signed agreements to sell most of its stores in its JW/Jeans West, Coda and 5-7-9 apparel chains. Under terms of the agreement, Edison would sell a total of 285 stores to Coda Acquisition Group for $10.3 million. The sale includes 263 of the more than 350 JW/Jeans West and Coda stores, as well as 22 stores in Edison’s Riggings menswear chains. Edison also signed an agreement to sell approximately 200 of the 250 stores in its 5-7-9 junior apparel chain for $13.7 million to The New 5-7-9 and Beyond, Inc., a private company and subsidiary of A.I.J.J. Enterprises, Inc., commonly known as Rainbow Apparel. Edison has signed an agreement to sell its 175-unit Repp Ltd. chain to J. Baker, Inc. for $31.7 million. Edison recently signed an agreement to sell most of its Bakers women’s footwear chain to Weiss & Neuman Shoe Co. for $11 million. The agreement calls for the sale of 184 of the 253 Bakers stores and 10 Wild Pair locations, as well as all of the existing Bakers inventory. Weiss & Neuman, which is controlled by former Edison Brothers executive Peter Edison, currently operates 75 footwear stores, including the Hot Line chain, leased department store operations and two Toz stores. Edison Brothers also signed an agreement to sell its footwear operations in Puerto Rico to Novus, Inc. for $7.2 million. The agreements calls for the sale of 17 Bakers and nine Wild Pair stores, well as the inventory in those stores. Novus currently operates 32 footwear stores in Puerto Rico. All of the transactions require the approval of the bankruptcy court.
Bankruptcy News HomePlace Stores, Inc. (216-328-9500) recently announced that its First Amended Joint Plan of Reorganization has become effective and that the company has emerged from Chapter 11 and completed its merger with The Waccamaw Corporation. The merger creates a new combined entity, HomePlace of America, Inc., with 117 stores in 27 states and annual sales exceeding $600 million. Waccamaw president and chief executive officer Greg Johnson will serve as president and CEO of the new company and the corporate offices will be consolidated into Waccamaw’s Myrtle Beach, SC headquarters. HomePlace’s existing corporate offices in OH will be closed. Under the plan of reorganization, HomePlace’s unsecured creditors will receive, in the aggregate, $25 million in cash and 42.8% of the new common stock of the reorganized company, and HomePlace’s preferred shareholders will receive one percent of the new common stock and warrants to acquire additional shares of new commons stock. Waccamaw’s shareholders will own the remaining 56.2% of the new common stock or the reorganized company and warrants to acquire additional shares of the new stock. Hechinger Company (301-341-1000) recently filed a voluntary Chapter 11 petition with the bankruptcy court. As part of the filing, the company plans to close 89 underperforming stores in 26 markets in an effort to reduce its operating losses and focus the company’s resources on a core of performing stores. To ensure that the company has the short-term working capital necessary to operate its business, the company if refinancing its working capital facility through a commitment for up to $700 million in debtor-in-possession financing from BankBoston Retail Finance Inc. The company plans to focus on a two-format strategy that features a revitalized Home Quarters and a refocused Hechinger, which will return to its historical roots as a community-based store tailored to the needs of its immediate customers. The company plans to convert its remaining 16 Builders Square stores to the Home Quarters format. Following the closures, the company will be operating 117 stores in 21 states. Space Place Connecticut Enfield- Enfield Commons is anchored by Bradlees,
Service Merchandise, OfficeMax, Rx Place, Bob’s, Three D Bed & Bath, Hoyt’s
Theater and Olive Garden. The 265,365 sq.ft. project has an 8,355 sq.ft. space
available for lease. Demographics include a three-mile population of 38,727 earning
$58,238 as the average income. Also in Enfield- Stop & Shop Plaza
is anchored by Super Shop & Stop, House of Fabrics and The Ground Round.
The 103,265 sq.ft. project has spaces of 1,500 sq.ft. and 3,200 sq.ft. available for
lease. Demographics include a three-mile population of 38,727 earning $56,238 as the
average income. Florida Casselberry- Market Square Shopping Center is anchored
by Big Lots, Harvill’s Farmers Market and Thriftko. The 125,000 sq.ft.
project has spaces of 1,200 sq.ft., 4,200 sq.ft., 4,508 sq.ft., 8,700 sq.ft. and 30,000
sq.ft. available for lease. Demographics include a three-mile population of 104,183
earning $60,904 as the average income. New York Utica- North Utica Shopping Center is anchored by Price
Chopper and Rite Aid. The 115,427 sq.ft. project has spaces of 3,100 sq.ft. and
3,375 sq.ft. available for lease. Demographics include a three-mile population of 64,502
earning $32,894 as the average household income. Oklahoma Oklahoma City- A 30,000 sq.ft. freestanding building is
available for lease. The site is located adjacent to Barnes & Noble and across
from Quail Springs Mall and an Edwards Megaplex. Pennsylvania Mechanicsburg- Space is available for lease at Silver
Springs Speedway. In Nesquehoning- The Shoppes at Nesquehoning is
anchored by Redner’s Warehouse. A 20,000 sq.ft. space is available for lease.
In Scranton- Redner’s Square is anchored by Redner’s
Warehouse. The project has 20,000 sq.ft. and one outparcel available for lease. In Sinking
Springs- The Shoppes at Sinking Springs is anchored by Redner’s
Warehouse, Blockbuster Video, Rite Aid and Hallmark. The project has spaces
from 15,000 sq.ft. to 25,000 sq.ft. and two outparcels available for lease. |