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Issue Number 27
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The Dealmakers Issue Number 27 for the week of July 30, 1999 Retailers Expanding in The Rocky Mtn. Region Sports Clips Inc. trades as Sport Clips at 27 locations in
NY and TX. The hair salons occupy spaces of 1,200 sq.ft. to 1,500 sq.ft. in power and
strip centers. Plans call for as many as 30 openings in the coming 18 months. Expansion
will take place in CO, NE, TX and UT. Preferred demographics include a population of
50,000 within three miles earning $40,000 as the average income. Leases running five
years, with options, are typical and the company is franchising. Mattress Discounters Inc. trades as Mattress Discounters at
235 locations in CA, CO, FL, MA, MD, MI, NH, NJ, PA, VA and Washington, D.C. The stores,
selling mattresses and bedding accessories, occupy spaces of 3,000 sq.ft. to 4,000 sq.ft.
in freestanding facilities, regional malls and power centers. Plans call for as many as 75
openings in the coming 18 months. Expansion will take place in the existing markets.
Preferred demographics include a population of 150,000 within five miles earning $40,000
as the average income. Leases running five years are typical. Duckwall-Alco Stores Inc. trades as Alco Discount Store at
260 locations in AZ, AR, CO, ID, IL, IN, IA, KS, MN, MO, NE, NM, ND, OH, OK, SD, TX, UT
and WY. The stores, selling general merchandise, occupy spaces of 16,000 sq.ft. to 26,000
sq.ft. in freestanding facilities and strip centers. Plans call for 18 openings in the
coming 18 months. Expansion will take place in the existing markets. Harman Management Corp. does business as Kentucky Fried Chicken
at 264 locations in CA, CO, UT and WA. The fast food restaurants, specializing in chicken,
occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in freestanding facilities. Preferred
anchors include Home Depot, Wal*Mart and supermarkets. Plans call for 15 openings
in the coming 18 months. Expansion will take place in the existing markets. Leases running
20 years are typical. New Construction Pennsylvania Real Estate Investment Trust recently announced that a
joint venture, in which it is a 50% partner, obtained financing and closed on the
acquisition of the 103 acre retail site for the development of Metroplex Shopping
Center, located at the intersection of I-476 and Chemical Road in Plymouth Meeting,
PA. The project, which is being developed with The Goldenberg Group, Inc., will be
a 780,000 sq.ft. power center anchored by a 138,000 sq.ft. Target store and a
163,000 sq.ft. Lowe’s Home Improvement Warehouse. Other tenants will include Giant
Supermarket, Homelife, Best Buy, Bed Bath & Beyond, Old Navy and Barnes &
Noble. A second quarter 2000 opening is planned. Construction financing in the amount
of $74.5 million for a term of two years was provided by a consortium of banks led by Bank
of America with Dime CRE, Inc., Summit Bank, Wilmington Trust of Pennsylvania
and FirstTrust Bank as participants. PREIT and The Goldenberg Group have completed
three retail projects as joint venture partners in the past -- The Court at Oxford
Valley in Langhorne, PA; Hillview in Cherry Hill, NJ and Red Rose Commons
in Lancaster, PA. In addition to Metroplex, the companies are developing the Pavilion
at Market East in Philadelphia, PA which will be anchored by DisneyQuest. PREIT
also announces that it recently completed the purchase of a 100-acre site in Harrisburg,
PA for the development of Paxton Towne Centre. The 560,000 sq.ft. project, located
on U.S. 22, will be anchored by a 124,000 sq.ft. Target store, an 87,000 sq.ft. Kohl’s
department store and a 65,000 sq.ft. Weis Markets. Other tenants will include Bryn
Mawr Stereo, Gateway Country Store and Silver Diner. Negotiations are underway
to add an electronics retailer, men’s and women’s clothing retailers,
restaurants and a multi-screen movie theater to the project. The project was to be
developed by PREIT and Glimcher Group, but will now be 100% developed and owned by
PREIT. The total cost of the center is estimated at $54 million. Ramco-Gershenson Properties Trust recently closed on the purchase
of 88 acres of land in Auburn Hills, MI for the development of a 650,000 sq.ft. shopping
center named The Auburn Mile. Located directly across I-75 from The Taubman
Centers, Inc. 1.4 million sq.ft. Great Lakes Crossing Mall, the Ramco project
will be anchored by a 216,000 sq.ft. Meijer store and a 123,000 sq.ft. Target
store. The balance of the space will be occupied by national and regional destination
oriented retailers and theme restaurants. Access to the shopping center will be provided
by two full interchanges off of I-75 and Baldwin Road on the northern end of the property
and Joslyn Road at the southern end. The shopping center site is located in the heart of
Oakland County, one of the five wealthiest counties in the U.S. and the trade area
consists of approximately 240,000 people. A Spring 2000 opening is planned. Equity One, Inc. is currently developing phase I of Shops at
Skyline in North Miami Beach, FL. Phase I consists of 75,000 sq.ft. anchored by a
51,400 sq.ft. Publix Supermarket, which opened this month. A Blockbuster Video
store and a Radio Shack store will also locate stores at the project. Both tenants
are expected to open during October. Following the completion of phase I, the company
plans to immediately break ground on phase II of construction which will consist of 55,000
sq.ft. of retail and office space. A January 2000 opening is planned. Located on Miami
Gardens Drive, the project is expected to contain 280,000 sq.ft. when fully developed. CBL & Associates Properties, Inc. recently broke ground on Coastal
Way Shopping Center in Hernando County, FL. The 233,000 sq.ft. project, located at the
intersection of State Road 50 and Mariner Boulevard, will be anchored by an 86,000 sq.ft. Sears
department store and a 58,000 sq.ft. Belk department store. Space for an additional
two anchors as well as 34,000 sq.ft. of specialty store space will also be developed. An
August 2000 opening is planned. Duke Realty Investments recently broke ground on Glenwood
Crossing in Woodlawn, OH. The 100,000 sq.ft. project will be anchored by a 62,000
sq.ft. Kroger supermarket. Buyers & Sellers Ezralow Retail Properties is in the market to acquire land in the
Western region for the development of neighborhood and power centers. Preferred land
parcels should be at least 10 acres and demographics should support the type of
development planned for the site. Konover Property Trust recently acquired Crossroads at Mandarin in
Jacksonville, FL. The 72,136 sq.ft. project is anchored by Food Lion and was acquired from
a private owner for $4.525 million. The company also recently acquired Grove Park in
Orangeburg, SC. The 104,312 sq.ft. project is anchored by Bi-Lo and was acquired from a
private owner for $5.65 million. API Development Company has the listing to sell up to 80 acres of
commercially zoned land in Tupelo, MS. The site is divisible and is located across the
street from the 900,000 sq.ft. Mall at Barnes Crossing and near a Wal*Mart Supercenter.
All utilities are available. Keen Realty Consultants, Inc. recently marketed the auction of 77
excess Service Merchandise properties for a total of $80.2 million. Keen Realty had been
retained by Service Merchandise in its Chapter 11 bankruptcy proceedings. A joint venture
of Commercial Net Lease Realty Services and Whitehall Street Real Estate Limited
Partnership (an affiliate of Goldman Sachs) purchased 26 of the properties. Another joint
venture team comprised of Starwood Ceruzzi Properties and Benderson Development purchased
eight sites. A total of 102 sites in 27 states were available at the auction. This
included 11 occupied sites and an additional 90 vacant sites (17 fee-owned, 13 ground
leased and 60 leases). The available sites ranged in size from 30,000 sq.ft. to 70,000
sq.ft. Grubb & Ellis has the listing to sell a 38,750 sq.ft. parcel of
land located at the intersection of East 14th Street and 166th Avenue in San Leandro, CA.
Demographics include a two-mile population of 93,962 earning $43,634 as the median
household income. The asking price is $610,000. Arroyo & Coates, Inc. has the listing to sell a freestanding
19,435 sq.ft. Michaels Store located at Milestone Power Center in Germantown, MD. The
tenant has a 15-year primary lease term with five five-year options. Rent increases 10%
every five years during the primary lease term. The asking price is $3.175 million. Pyramid Brokerage Company, Inc. has the listing to sell 3.23 acres
of land adjacent to the 1.5 million sq.ft. Carousel Center in Syracuse, NY. The site is
located in the center of Lakeside Development which also includes the Regional
Transportation Center, the Regional Market, P&C Stadium, The Aquarium and other new
developments. The land is bordered by I-81 northbound exit and ramp and northbound
exit/entrance ramp. Ben Carter Properties is in the market to acquire power centers,
large community centers, regional malls and well-located and anchored neighborhood centers
in the Mid-Atlantic and Southeastern regions. Preferred projects should have a GLA of at
least 150,000 sq.ft. and have two major anchor tenants (except for neighborhood centers).
The company is planning to invest $150 million in acquisitions in the coming 12 months and
looks for centers in the $5 million to $50 million price range. Theatreplex Entertainment Properties, Inc. recently acquired
Cinemark Tinseltown 17, a 3,000-seat movie theater in Lubbock, TX from 82nd and
University, LLC. Terms of the deal were undisclosed. The theater opened in December 1998
and is under long-term lease to Cinemark USA, Inc. The state-of-the-art theatre, designed
to recall the look of classic movie palaces of the 30s and 40s, will serve as the model
for all future Cinemark megaplex theaters. The acquisition marks the third this year for
Theatreplex, which plans to invest $100 million in movie theatre properties by the end of
the year. Theatreplex has also acquired theatre properties from Regal Cinemas and
Signature Theatres. Ohio Equities, Inc. has the listing to sell a 4.84 acre parcel of
land in Columbus, OH. The site fronts Renner Road and can be subdivided to as little as
1.58 acres. The asking price is $1.452 million or $300,000 per acre. The Hutensky Group represented Phoenix Home Life Mutual Insurance
Company in the sale of Roswell Mall and Imperial Plaza. The 308,733 sq.ft. Roswell Mall in
Roswell, NM is anchored by J.C. Penney, Wal*Mart, Bealls and Stage. The mall was sold to
Zuber Properties, Inc. for $10.173 million. The 126,648 sq.ft. Imperial Plaza in
Philadelphia, PA is anchored by Kids Wear, Modell’s and Fashion Bug. The project was
sold to Imperial/Aramingo LLC for $6.35 million. Oxbow Realty Inc. has the listing to a 7,430 sq.ft., three-level
store, formerly known as Night Stage in Cambridge, MA. The freestanding building is
surrounded by LaGroceria, Bertucci’s and Royal East. The asking price is $795,000. Net Leased Investments has the listing to sell a 36,000 sq.ft.
Stein Mart store currently under construction in Tulsa, OK. The store is expected to be
completed during September. The tenant has a triple net lease with 10% rent increases
every five years. The asking price is $2.47 million. Lease Signings Sigma National, Inc. (804-320-6100) leased 1,600 sq.ft. to Jersey Mike’s Sub Shop in Fredericksburg, VA; 1,340 sq.ft. to Jersey Mike’s Sub Shop at Doc Stone Commons in Stafford County, VA; 24,912 sq.ft. to Barnes & Noble at Libbie Place in Richmond, VA and 27,466 sq.ft. to Ben Franklin at a former MJDesigns location at Stein Mart Festival in Richmond, VA. The Krausz Companies Inc. (714-285-0200) leased 11,000 sq.ft. to Krause’s Custom Crafted Furniture at Cerritos Plaza in Cerritos, CA. CB Richard Ellis (818-502-6785) leased 24,500 sq.ft. to Barnes & Noble and 34,000 sq.ft. to Linens ‘n Things at The Marketplace at Palmdale in Palmdale, CA. Benderson Development Co., Inc. (973-564-6594) leased 3,840 sq.ft. to J.L. Hammet at Wrangleboro Consumer Square in Mays Landing, NJ Grubb & Ellis (847-390-8040) leased 69,490 sq.ft. to Cub Foods at Lake Commons Shopping Center in Round Lake Beach, IL. Jeffery Realty (908-668-9600) leased 1,200 sq.ft. to Jenny Craig at Sprout Brook Shopping Center in Paramus, NJ; 5,000 sq.ft. to Hollywood Video at Laneco Shopping Center in Clinton, NJ; 4,500 sq.ft. to Hollywood Video at Machine Shops in Hoboken, NJ; 5,000 sq.ft. to Hollywood Video at A&P Shopping Center in Boonton, NJ; 7,000 sq.ft. to Trader Joe’s at Blockbuster Shopping Center in Wayne, NJ; 2,500 sq.ft. to Foot Prints at Abill Plaza in Totowa, NJ; 10,500 sq.ft. to The Farm Market at Redwood Shopping Center in Hillsborough, NJ and 30,000 sq.ft. to Office Depot at Echo Plaza in Springfield, NJ. Westcor Shopping Centers (602-953-6200) leased 4,034 sq.ft. to Banana Republic and 1,203 sq.ft. to Journey’s at Scottsdale Fashion Square in Scottsdale, AZ. Tulsa Properties, Inc. (918-665-3830) leased 25,000 sq.ft. to Office Depot in Edmond, OK. Sleiman Enterprises (904-731-8806) leased 43,000 sq.ft. to Circuit City and 34,000 sq.ft. to Linens ‘n Things at a former Mervyn’s location at Southside Square Shopping Center in Jacksonville, FL. Who’s Opening & Where Recreational Equipment, Inc. (253-395-5956) plans to open a 30,000 sq.ft. store at an American-style shopping center currently under development in Minami Machida, Japan. The store is expected to open during April 2000 and will be owned and operated by REI Japan Hanbai KK, a wholly-owned subsidiary of REI. The store will be the company’s first international unit. G+G Retail, Inc. (212-297-4961) plans to launch its newest retail concept, Rave Girl, with six stores opening this month and next month. The stores will average 1,700 sq.ft. and will be located at Garden State Plaza in Paramus, NJ; Westland Mall in Miami, FL; South Shore Mall in Bayshore, NY; Century III Mall in Pittsburgh, PA and Walden Galleria in Buffalo, NY. The stores will be targeting the "tween" market and specialize in the coolest, up to the minute fashions for girls aged 7-14. The company expects to open 30 Rave Girl stores in 2000 and 2001 in high profile malls nationwide and in the Caribbean. In addition, the company plans to open as many as 40 traditional Rave and G+G stores in 2000. CVS Pharmacy (401-765-1500) plans to open a 12,000 sq.ft. store in Milford, MA. Borders Books, Music and Cafe (734-477-1100) plans to enter the WV market with a 19,782 sq.ft. store in Barboursville, WV during Summer. The company plans to open a 24,000 sq.ft. store in San Ramon, CA during Fall. The company plans to open a 25,400 sq.ft. store in Littleton, CO during Fall. The company plans to open a 28,000 sq.ft. store at Columbia Crossing Shopping Center in Columbia, MI during Fall. The company plans to open a 25,000 sq.ft. store in Douglasville, GA during Fall. The company plans to open a 25,000 sq.ft. store in Erie, PA during Winter. It will the company’s first store in the Erie market. The company is also planning to open a 25,000 sq.ft. store at Severance Town Center in Cleveland, OH during February 2000. www.borders.com AFC Enterprises (770-391-9500) recently signed two development agreements with Nippon Brunswick Company, Ltd. and Mifune Corporation to open 167 Seattle’s Best Coffee cafes throughout Japan. Nippon Brunswick will develop 100 units in the coming five years in Tokyo, Kanagawa, Ibaraki, Chiba, Gunma, Tochigi and Saitama. Mifune will develop 67 units in Osaka, Kyoto, Wakayama, Hyougo, Fukuoka and Okinawa beginning this Summer. The deals mark the company’s entry into the Japanese market. In other news, the company recently announced that it plans to open five Seattle’s Best Coffee locations in the Atlanta, GA market by the end of next month. www.afc-online.com Clean Rite Centers (718-445-3400) plans to open a 6,000 sq.ft. laundromat on Jamaica Avenue in Queens, NY and a 3,500 sq.ft. unit on Fifth Avenue in Brooklyn, NY during Fall. Following the openings, the company will be operating 15 units in the New York City area. Applebee’s International, Inc. (913-967-4000) plans to grow its chain to 1,800 restaurants in the coming few years. In addition, the company is testing a new "small-town"prototype restaurant, designed for towns having a population of less than 25,000, at locations in Warrensburg, MO and Hutchinson, MN. If successful, a rollout of the concept is planned. www.applebees.com Noodle Kidoodle (516-677-0500) plans to open a 5,000 sq.ft. store at SouthPointe Pavilions in Lincoln, NE during Summer. It will be the first store in NE for the chain. Currently, the company operates 42 stores nationwide. The Bon-Ton Stores, Inc. (717-757-7660) plans to open a 60,000 sq.ft. department store at University Mall in Burlington, VT and an 87,000 sq.ft. department store at Steeplegate Mall in Concord, NH during November. In addition, the company plans to expand and remodel its store at Fredericktowne Mall in Frederick, MD. Presently, the company operates a 72,000 sq.ft. store and plans to expand it by 26,500 sq.ft. Jersey Mike’s Franchise Systems, Inc. (732-528-7676) recently signed an agreement with Lee Airport Concessions, Ltd. to open two Jersey Mike’s Sub Shops inside terminals A and C at Raleigh Durham International Airport in Raleigh-Durham, NC. The deal marks the company’s initial entry into airport concessions. In other news, the company announces the opening of Jersey Mike’s stores in Lawrenceville, GA; Charlotte, NC and Salisbury, NC. The company currently operates more than 150 restaurants. The May Department Stores Company (314-342-6300) plans to open a 140,000 sq.ft. Kaufmann’s Department Store at Washington Crown Center in Washington, PA during September. In addition, the company plans to open its first stores in NE and IA in the coming 18 months. May plans to open a Jones Store in Omaha, NE and a Famous-Barr store in Des Moines, IA. Lead Sheet The Hang Up Shoppes Inc. Apparel The 31-unit chain operates locations in IL, IN, KY, MI and OH. The stores, selling young mens apparel, occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in regional malls. Plans call for six openings in the coming 18 months. Expansion will take place in the existing markets. Swim-N-Sport Shops Inc. Apparel The 14-unit chain operates locations in AZ, FL, SC and TX. The stores, selling swimwear and activewear in missy and junior sizes, occupy spaces of 1,500 sq.ft. to 2,500 sq.ft. in regional malls, outlet and specialty centers. Preferred co-tenants include Ann Taylor, Lord & Taylor and Nine West. Plans call for 20 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years are typical. Woolrich Inc. Apparel The 28-unit chain operates locations in PA, CO, NE, WV, TN, IA, MN, WI, MI, WA, SC, GA, CA, NY, CT, FL and OH. The stores, selling men’s and women’s sportswear and outdoor wear, occupy spaces of 5,000 sq.ft. in outlet centers. Plans call for three openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of one million within 100 miles earning $48,000 as the average income. Leases running five years are typical and the company cites L.L. Bean, Cabella’s, Eddie Bauer and Bass Pro Shops as competition. Crown Industries Inc. Automotive The 14-unit chain operates locations in DE, NJ, NY and PA. The automotive parts stores occupy spaces of 6,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in DE, NJ and PA. Preferred demographics include a population of 100,000 within two miles earning between $30,000 and $50,000 as the average income. Leases running five years, with two options of five years each, are typical. Lentz USA Service Centers Automotive The 28-unit chain operates locations in FL, IL, IN, MI and NC. The automotive repair shops occupy spaces of 3,800 sq.ft. in freestanding facilities and strip centers. Preferred co-tenants include Jiffy Lube and Mail Boxes Etc. Plans call for 11 openings in the coming 18 months. Expansion will take place in FL, IL, IN, KY, MI, NC, OH, TN and the New England states. Preferred demographics include a population of 50,000 within three miles earning $40,000 as the average income. Leases running 10 years are typical and the company, which is franchising, cites Midas as competition. Best Oil Inc. Convenience Store The 19-unit chain operates locations in OH and PA. The convenience stores occupy spaces of 3,000 sq.ft. in freestanding facilities. Growth opportunities are sought in MD, OH, PA and WV. Preferred demographics include a population of 25,000 within three miles earning $50,000 as the average income. Leases running 15 years are typical. Guttman Oil Company Convenience Store The 26-unit chain operates locations in PA. The convenience stores occupy spaces of 4,000 sq.ft. in freestanding facilities. Plans call for five openings in the coming 18 months. Expansion will take place within a 100 mile radius of Belle Vernon, PA. Leases running 10 years, with four options running five years each, are typical. Pri Mar Petroleum, Inc. Convenience Store The 13-unit chain operates locations in MI. The convenience stores, which also sell gasoline, occupy spaces of 2,500 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in MI and IN. Stein Mart, Inc. Department Store The 200+-unit chain operates locations in 29 states. The stores occupy spaces of 36,000 sq.ft. in strip centers. Preferred co-tenants include upscale grocery stores. Plans call for as many as 40 openings in the coming 18 months. Expansion will take place nationwide. Maxi Drug Inc. Drug Store The 250-unit chain operates locations throughout New England. The drug stores occupy spaces of 10,000 sq.ft. to 11,000 sq.ft. in freestanding facilities and strip centers. Plans call for 25 openings in the coming 18 months. Expansion will take place in New England and eastern NY. The company cites CVS, Rite Aid and Walgreens as competition. One Hour Martinizing Dry Clean Dry Cleaning The 814-unit chain operates locations nationwide. The dry cleaning stores occupy spaces of 1,400 sq.ft. to 2,500 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include drug stores and supermarkets. Plans call for as many as 35 openings in the coming 18 months. Expansion will take place in AL, CA, CO, FL, GA, MD, MO, NV, NJ, NC, OH, PA and TX. Preferred demographics include a population of 15,000 within two miles earning $50,000 as the average income. Leases running five to ten years are typical and the company is franchising and assists franchisees in locating sites. Wow Family Fun Centers/United Skates of America Entertainment The 15-unit chain operates locations in AZ, FL, IL, IN, MD, MA, NJ, NY, OH, PA and RI. The concept, offering roller rinks, laser tag games, arcade games, kiddie rides, a gymnasium and birthday party rooms, occupies spaces of 25,000 sq.ft. to 35,000 sq.ft. in downtown store fronts, freestanding facilities, power and strip centers. Growth opportunities are sought nationwide. Preferred demographics include a population of 250,000 within five miles earning between $50,000 and $60,000 as the average family income. Quality Stores Inc. General Merchandise The 118-unit chain operates locations in GA, IN, KY, MI, NY, NC, OH, PA, SC, TN, VA and WV. The stores, selling agricultural supplies, hardware, home improvement items and automotive parts, occupy spaces of 25,000 sq.ft. to 35,000 sq.ft. in freestanding facilities and strip centers. Preferred co-tenants include Kmart, Wal*Mart and supermarkets. Plans call for 25 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 30,000 within 10 miles earning $35,000 as the average income. Leases running five years are typical. S&A Stores, Inc. General Merchandise The 12-unit chain operates locations in NJ and NY. The general merchandise stores occupy spaces of 4,000 sq.ft. to 10,000 sq.ft. in downtown store fronts. Plans call for three openings in the coming 18 months. Expansion will take place in the existing markets. Tuesday Morning Inc. General Merchandise The 368-unit chain operates locations in 37 states. The general merchandise stores occupy spaces of 6,000 sq.ft. in freestanding facilities and strip centers. Plans call for 45 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 $50,000 as the average income. Leases running five years are typical. Bally Total Fitness Holding Corp. Health The 325-unit chain operates locations in 27 states and Canada. The health clubs occupy spaces of 25,000 sq.ft. in freestanding facilities and power centers. Plans call for at least 30 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 to 15 years are typical. HomePlace of America, Inc. Home Furnishings The 117-unit chain operates locations in AL, AZ, CO, FL, GA, IA, KS, MD, MI, MN, MO, MS, NC, NE, NJ, NV, NY, OH, OK, OR, PA, SC, TN, TX and VA. The stores, selling home decor items, kitchen items, small appliances and bed and bath linens, occupy spaces of 45,000 sq.ft. in freestanding facilities and strip centers. Preferred co-tenants include Home Depot, Lowe’s, Marshall’s, T.J. Maxx, Target and supermarkets. Plans call for as many as 12 openings in the coming 18 months. Expansion will take place within the existing markets. Preferred demographics include a population of 50,000 within three miles earning $40,000 as the median income. Leases running 15 years are typical. Stacy’s Ethan Allen Interiors Home Furnishings The five-unit chain operates locations in FL. The home furnishings 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. Sharon Luggage Ltd. Luggage The 16-unit chain operates locations in NC and SC. The stores, selling luggage and travel accessories, occupy spaces of 3,000 sq.ft. to 8,000 sq.ft. in freestanding facilities, regional malls and specialty centers. Plans call for as many as three openings in the coming 18 months. Expansion will take place in NC. Leases running five years are typical. Jenny Craig Inc. Specialty The 750-unit chain operates locations nationwide, exclusive of AK, VT, WV and WY. The weight management, health and nutrition centers occupy spaces of 1,600 sq.ft. in power centers. Preferred anchors include Ross, T.J. Maxx, Target, supermarkets and drug stores. Plans call for 50 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 100,000 within three miles earning $35,000 as the median income. Leases running five years are typical and the company is franchising. The Copps Corp. Supermarket The 20-unit chain operates locations in WI. The supermarkets occupy spaces of 40,000 sq.ft. to 60,000 sq.ft. in freestanding facilities and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in IL, MI, MN and WI. Leases running 20 years, with options, are typical. 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 Albertson’s and Wal*Mart SuperCenters as competition. Wegmans Food Markets Inc. Supermarket The 59-unit chain operates locations in NJ, NY and PA. The supermarkets occupy spaces of 100,000 to 130,000 sq.ft. in freestanding facilities and power centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 75,000 within five miles earning $75,000 as the average income. Leases running 20 years, with six options running five years each, are typical. To the Editor: Referencing your editorial of June 18, 1999, I had a completely different take on our industry becoming younger. I am 42 years of age and have been going to the Spring Convention for the past 15 years. During that time there was always a noticeable percentage of people attending the convention who were in their twenties. Without having hard data to back up my perception, I am of the opinion that at this most recent convention there were very few people in their twenties. I attribute this paucity of young people in our industry to the fact that many of the large brokerage houses no longer have training programs for people coming right out of college. Also, I believe that young people today would rather go into the more glamorous computer or internet industries than our more mature industry. Just another point of view for you to consider from someone who is usually in agreement with your editorials.
Ken Simon To the Editor: Levin Management asked us to let you know that in a recent issue when
you discussed the Mayfair Shopping Center some misinformation was included. Please be
advised that Grand Union is leaving the shopping center, and Levin is expanding the space
to accommodate a new Waldbaums. In addition, the contact person to discusss leasing should
be Stan Bernstein, not Stan Ehrman. Caryl Bixon, Press Correspondent Sources of Financing J.P. Morgan Mortgage Capital Inc. (312-541-3630) recently provided $11.7 million in financing for Montclair East in Montclair, CA. Central Financial originated the loan. The 135,852 sq.ft. project is anchored by Ross Stores, Kids ‘R Us, Sportsmart, Strouds and Office Depot. The term of the loan is 10 years and amortization length is 30 years. The company recently provided $6.2 million in financing for East Gate Square VI in Burlington, NJ. Legg Mason originated the loan. The 36,253 sq.ft. project is anchored by Hallmark, Joseph Banks and Store House Furniture. The term of the loan is 10 years and the amortization length is 25 years. The company recently provided $46.655 million in financing for six factory outlet centers, divided into two pools of assets. The borrower is Horizon Group Properties, Inc. The loan amount assigned to Pool 1 is $22.85 million and the properties are located in Daleville, IN; Somerset, PA and Tulare, CA. The loan amount assigned to Pool 2 is $23.805 million and the properties are located in Gretna, NE; Sealy, TX and Traverse City, MI. The assets contained in each respective pool are cross-collateralized. The term of the loan is 10 years and the amortization is based on a 25-year schedule. The company also recently provided financing for Stolz Shopping Center portfolio for $85 million purchase price and $71 million acquisition financing. The Ackman Ziff Real Estate Group originated the loan for JIT Package Partners, LLC. The term of the loan is a three-year floating rate deal with two one-year options. The portfolio is 85% leased and anchored by Filenes, ShopRite, T.J. Maxx, United Artists Theaters, Marshalls, Gateway Computers, SuperFresh and Eckerd. Holliday Fengolio Fowler, L.P. (214-265-0880) recently secured $3.9 million in permanent financing for a new Furr’s Superstore in Rio Rancho, NM. The 55,000 sq.ft. store is expected to open next month. The fixed-rate financing was arranged on behalf of the borrower, International Food Service Holding LLC, through AEGON USA Realty Advisors Inc. The company recently provided a $2.625 million loan for the acquisition of a freestanding Kmart in Lodi, NJ by WDP Enterprises. The company recently provided a $2.15 million refinancing and construction loan for Village Place Shopping Center in Houston, TX. The 99,676 sq.ft. project is anchored by Bally’s Health Club and the fixed-rate financing was provided on behalf of Village Place Ltd., through Salomon Brothers Realty Corporation. The company also provided a $280 million financing package for Greenway Plaza, Houston, TX’s first planned mixed-use development, for Crescent Real Estate Equities Company. Cooper-Horowitz, Inc. (212-986-8400) recently placed a $7.38 million loan for Lubbock Shopping Parkade in Lubbock, TX. The 160,000 sq.ft. project is anchored by Hobby Lobby, Stein Mart, T.J. Maxx and Oshman’s. The company recently placed a $12.83 million loan for Bay Plaza Shopping Center in Baychester, NY. The 56,000 sq.ft. project is anchored by Staples, Old Navy and Party City. The company recently placed a $3.675 million loan for Turnpike Plaza Shopping Center in Nashau, NH. The 127,000 sq.ft. project is anchored by Staples, AC Moore, Bob’s Stores and DeMoulas Supermarket. The company recently placed a $1.25 million loan for a Dillard’s Department Store at Mesila Valley Mall in Las Cruces, NM. The company recently placed an $8.9 million loan for Hempstead Village Commons in Hempstead, NY. The 65,000 sq.ft. project is anchored by Staples, Pep Boys, Rite Aid and McDonald’s. The company recently placed a $6.25 million loan for Marketplace of Warsaw in Warsaw, IN. The 191,000 sq.ft. project is anchored by Elder-Beerman Department Store. The company recently placed a $2 million loan for a shopping center in Mt. Clemens, MI. The 21,270 sq.ft. project is anchored by Rite Aid. The company also recently placed a $17.6 million loan for Midway Mall in St. Paul, MN. The 295,000 sq.ft. project is anchored by Rainbow Foods, Kay-Bee Toys, OfficeMax and Walgreens. Donahue Schriber (949-854-2100) recently announced a $40 million investment in the company’s private REIT by BMPT, one of Europe’s leading pension funds. The investment by BMPT brings Donahue Schriber’s market value to approximately $600 million. Donahue Schriber owns and operates 51 neighborhood, community and power shopping centers in AZ, CA and NV. BPMT is one of the major European institutional investors with assets of $14 billion and real estate holdings worldwide. Following its investment with Donahue Schriber, the pension fund’s U.S. real estate portfolio totals approximately $750 million. Bankruptcy News Retail Consulting Services (212-239-1100) has been appointed by the bankruptcy court to either market in whole or in part or to conduct the necessary liquidation sales of its inventory, leases and other assets of Three D Department, a national home furnishings chain. Crown Books (301-731-1200), with the support of its major creditors, recently filed a plan of reorganization with the United States Bankruptcy Court. Confirmation of the plan is expected to take place before the holiday selling season. Under terms of the plan, the company’s unsecured creditors will receive settlement of their allowed claims in the form of a new equity in the company. Collectively, the unsecured creditors will receive 100% of the newly reorganized company, subject to a stock option plan for senior management. The company has secured a commitment for a $35 million revolving credit facility from Paragon Capital, L.L.C. and Foothill Capital Corporation. Additionally, Crown has secured commitments from Ingram Book Company and other major suppliers for normalized credit terms. The company currently operates 92 stores in the markets of Washington, D.C.; Chicago, IL; San Francisco, Los Angeles and San Diego, CA. Levitz Furniture (407-994-5151) recently filed a reorganization plan with the U.S. Bankruptcy Court in DE which will allow it to emerge from bankruptcy protection by the end of the year. Under the proposed plan, Levitz common stock will be canceled and shareholders will receive no compensation for their losses. Other unsecured creditors, including bondholders, will receive stock in the reorganized company. The reorganization is possible largely because of the company’s ability to generate $76.6 million in cash through the sale of closed stores and the sale-leaseback of existing stores. Those funds reduced the company’s post-bankruptcy debt by approximately half, leaving it with about $70 million in debt. Levitz filed for bankruptcy protection in September 1997. The company was able to reduce its debt by $58.4 million when it completed the sale-leaseback of 22 operating stores recently. Another $19.4 million was gained by selling 10 former stores. By reducing its debt, the company now has about $800,000 a month in debt service, compared with as much as $2.4 million. The company has plans to sell or complete sale-leaseback transactions on other properties, which will further reduce its debt burden. Also helping the company reduce its debt was the closing of stores in FL, IN, TX and VA. Currently, the company operates 64 stores in 13 states, focused primarily in the Northeast, West Coast and Minneapolis, MN markets. Montgomery Ward & Co. (312-467-2000) recently announced that its joint plan of reorganization has been confirmed and approved by the U.S. Bankruptcy Court in DE. GE Capital, Wards’ majority shareholder was a co-proponent of the plan. Under terms of the plan, funding for the distribution of unsecured creditors other than GE Capital is provided through a $650 million escrow deposit account established upon the company’s filing of the plan in April. When Wards emerges from bankruptcy, the escrow deposit including interest earned will be distributed to unsecured creditors as specified by the plan. The company operates 252 stores in 32 states. The U.S. Bankruptcy Court, Southern District of CA, recently approved the selection of four companies, Schottenstein Bernstein Capital Group, LLC, The Ozer Group, LLC, Hilco/Great American and The Nassi Group LLC, to jointly conduct "going out of business sales" for the 10-unit FedCo (562-903-3431) chain in CA. The consortium prevailed over several other companies for the right to liquidate the FedCo inventory, currently valued at approximately $90 million at retail. The consortium’s winning bid of $55 million delivered an additional $9 million to the FedCo estate over what was previously expected. The FedCo warehouse department stores, which have historically only been open to members, will immediately be opened by the consortium to the general public. FedCo, Southern CA’s first members-only discount retailer, was founded in 1948 as a non-profit, mutual benefit organization by a group of postal workers who were seeking relief from a post-war wage freeze and rising prices. Each chipped in $2 to open and become members in the Federal Employees Distributing Co. FedCo membership, initially limited to employees and retirees of the federal government, exploded from 800 to more than 50,000 in its first five years, and eventually reached more then three million when the rules were relaxed. After recent years of falling sales, the company filed for bankruptcy protection earlier this year. Recently, the company signed an agreement with Target to purchase its real estate assets for approximately $120 million. Space Place Alabama Pelham- Shelby Mart has spaces from 1,800 sq.ft. to
22,000 sq.ft. available for lease. Illinois Joilet- Caton Crossing Town Square is anchored by Eagle
Country Market, Blockbuster, Hallmark Cards, GNC, Mail Boxes Etc. and Cost Cutters
Hair Salon. The project has spaces of 3,000 sq.ft. and 6,000 sq.ft. available for
lease. Quincy- Quincy Mall is anchored by Bergners, J.C.
Penney, Sears and a multi-screen movie theater. The 600,000 sq.ft. project has space
available for lease. Demographics include a trade area population of 250,000. Michigan Grand Rapids- Rogers Plaza is anchored by Montgomery
Ward, MC Sports, OfficeMax and Big Lots. The 400,708 sq.ft. project has spaces
of 3,728 sq.ft., 4,500 sq.ft., 6,040 sq.ft. and 10,676 sq.ft. available for lease.
Demographics include a five-mile population of 249,016 earning $50,007 as the average
household income. The site is located near Rivertown Crossings, East Brook Mall and
Rogers Department Store. Nevada Las Vegas- Pecos Plaza is anchored by Vons, Michaels
and Blockbuster Video. The 136,000 sq.ft. project has an end-cap space as well as
in-line space between the two anchors available for lease. Demographics include a
five-mile population of 363,530 earning $62,772 as the average household income. New Jersey Jersey City- A 2,500 sq.ft. space is available for lease at Journal
Square located at the intersection of Kennedy Boulevard and Bergen Avenue in the
central business district. Demographics include a three-mile population of 315,675 earning
$42,000 as the average income. Ohio Mentor- Blackbrook Plaza has spaces of 1,200 sq.ft.,
2,520 sq.ft. and 3,240 sq.ft. available for lease. The 2,520 sq.ft. space is a former bank
branch and features security boxes, an alarm system and a drive-thru window. Demographics
include a three-mile population of 35,100 earning $60,788 as the average income. |