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Issue Number 40
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The Dealmakers Issue Number 40 for the week of November 5, 1999 My Way by Ted Kraus It’s been a year or more since I discussed the Internet in any depth in this column because I figured there’s so much hype going on everywhere about it, repeating it here would be redundant. However, I was recently reading a trade publication called Industry Standard (415-733-5400), which in my opinion is the finest publication on the Internet (and how it relates to business) available, which had an article by Mark Borsuk (415-922-4740) on how the retail real estate industry will be coming to an end in the near future (and you thought I was the only doom and gloom guy in real estate). Without rehashing the entire article, the author said that with the explosion of on-line shopping, retailers will not have to open as many stores; they’ll downsize most existing stores and vacate many. The Internet, while in no way destroying retail sales, will siphon off enough (15% to 20% of sales) to make many locations unprofitable. In addition, because of the Net, the regional price differences on commodity type merchandise will disappear and cause many currently profitable retailers to get into trouble. What he means is, take an area like California that has high land and labor costs. It has to charge more for a Mr. Coffee maker than a location in Columbus, OH. However, because the consumer can now shop worldwide from their home, the cheapest retailer wins, therefore the value of real estate in California will have to drop, as will labor costs if they want to stay competitive and in business. (I wonder how the unions will blame this on the Republicans. The Internet is all the Democrats fault since Gore invented the Net). Now, not all "Mr. Coffee" machines sold in California will be sold on the Net, but when most people start to say that the "right" price for Mr. Coffee is $19.95, not $23.95, Wal*Mart, Target and all the rest will have to match that price. If they do, they lose margins. If they don’t, they lose customers. The same is true for the small town retailer that charges retail plus because he’s the only game in town. Now he won’t be. Therefore, he’s in trouble. Wal*Mart is no longer his threat. It’s the Net. (For more articles by Borsuk, go to: *Total War--http://www.mihalovich.com/columns/war.htm; *The Mad Mohel--http://www.mihalovich.com/columns/mad_mohel.htm; *Nowhere Yet Everywhere--http://www.mihalovich.com/columns/nowhere.htm.) Anyway, after reading his article, I e-mailed him my opinion, basically saying he was wrong. I got a phone call from him the next day ready to debate the subject and he was using some of my past "My Ways" as his defense (he’s a sub, which I didn’t know; god bless his soul). We talked for half an hour and many of his points I ended up agreeing with. Commodity retailing is here. Ten minutes on the Net and I cannot only find the cheapest price, but not have to devote an hour of my life to shopping. Mass merchants have problems. We’ll always have "real" retailers, but the size of their stores will diminish as will their need to be at every street corner. Mark’s main point is there are going to be lots of vacancies nationwide in less than five years. I agree. What I find funny, in a pathetic way, are that many REITs and developers are creating Home Pages, hoping to bring e-commerce to their mall tenants and at the same time, make a buck for this extra "service." Most of these owners have difficulty managing their centers properly, how do they expect to run a Home Page for retailers if they don’t also understand what they are doing in their primary business? They’re also hoping branding is the answer. It isn’t. Anyway, that evening I received the October issue of Shopping Centers Today and one of the cover stories was "Industry Weighs Implication of Grocery Mergers." That made me think about all of the consolidation going on in retailing today besides supermarkets. The conclusion I came up with was because of these consolidations and the Net there will be more vacancies and fewer retailers to fill these locations than even Mark contends. We could be up the creek without a paddle if we don’t start to be more creative now. The next logical conclusion is that the value of shopping centers will be dropping in the very near future. What’s really shocking is the industry appears to be totally oblivious to this trend. They can’t think outside the box. Yes, a few think creating a virtual Home Page for their mall will save their butt and some think entertainment centers will be their salvation, they’re wrong. I guess most feel five years is a lifetime away, why worry. On a different topic, I’m beginning to realize I’m a deal junky. In the past, I thought I enjoyed doing deals, but now I realize I’m a total addict. Before every meeting I should stand up and say: "Hi, I’m Ted Kraus and I’m a deal junky." What brought this realization to a head was we represent a company that acquires failing or failed "entertainment complexes" (they have a real future). Anyway, I got a call from a company trying to sell its entertainment complex at a "great price" (it was losing money faster than Amazon.com), so I got the preliminary information and flew to the site with our client. Without going into the details, it was a beautiful complex that had major problems because the owners had no idea what they were doing when they built it. It looked great, just didn’t work. While the project could be "saved," it would require a lot of time and money and in the end only be marginally profitable. The owners offered us a great deal, but our client turned it down because the risk/reward payback wasn’t there. (High risk, low reward is not how they do it.) For two weeks after the meeting I received daily calls from the seller, each time improving his last offer. I kept on negotiating and attempting to convince our client to do the deal. Finally, the client, a very patient person, said, "Teddy, (he knows me a long time, so he’s allowed to be that personal) let’s discuss this. You understand the business. Forgetting the numbers to acquire the site, if we invest $650,000 into the complex to get it on the right track and another $250,000 to market it, what do you think the profits will be?" I thought about it for a minute and came back with $100,000 to $150,000, max. He replied, "Then is it worth the risk?" I said no, but it was such a great deal, I hated to walk away. I wasn’t thinking of the profits, just the thrill of making a super deal. Even though he convinced me it made no sense, I spent another week trying to figure a way it could work. Once you’re addicted to doing a deal, there’s no backing off. Oh, while I can’t report this first hand, I got it from an extremely reliable source (Ann) that the recent Western States Dealmaking show in Palm Desert, CA was another winner, with 2,500 wheelers and dealers doing their best to make it a successful show. Parting thoughts: My in-laws live in Marshal, TX (next to Louisiana) which is basically a blue collar town having a trade area of 25,000+/-. The other day, they faxed me a newspaper article telling of the two national super office stores currently being built in town. They (my in-laws) asked me why one, let alone two, would want to open in Marshal. I couldn’t answer their question. Retailers Seeking Sites in The Southwest Region Bashas’ Inc. trades as Bashas’s, AJ’s Fine
Foods, Food City and Country Store at 92 locations in AZ, CA and NM. The
supermarkets occupy spaces of 35,000 sq.ft. to 45,000 sq.ft. in downtown store fronts,
freestanding facilities and strip centers. Plans call for as many as nine openings in the
coming 18 months. Expansion will take place in AZ. The Bedroom Superstore Group trades as Bedroom Superstore at
37 locations in AZ, CA, CO, NV, OR, UT, WA and WI. The stores, selling bedroom and
assorted home furnishings, occupy spaces of 10,000 sq.ft. to 30,000 sq.ft. in freestanding
facilities, power and strip centers. Preferred anchors include Kmart and Wal*Mart.
Plans call for as many as five openings in the coming 18 months. Expansion will take place
in AZ and CA. Preferred demographics include a population of 300,000 within 75 miles
earning $35,000 as the average income. Leases running five years are typical. Jack Godfrey & Son, Inc. does business as Comet 1 Hr.
Cleaners at 375 locations nationwide and in Mexico. The stores, offering dry cleaning
and laundry services, occupy spaces of 1,800 sq.ft. to 2,400 sq.ft. in freestanding
facilities and strip centers. Plans call for 40 openings in the coming 18 months.
Expansion will take place in the Southeastern and Southwestern regions. Preferred
demographics include a population of 30,000 within one to two miles earning $50,000 as the
average income. The company is franchising. Arizona Hair Co. operates 13 locations in AZ. The hair salons
occupy spaces of 1,200 sq.ft. to 1,400 sq.ft. at anchored power, specialty and strip
centers. Plans call for 12 openings in the coming 18 months. Expansion will take place in
the existing market. Leases running five years are typical and the company prefers a
vanilla shell. Dunn-Edwards Corp. trades as Dunn-Edwards Paints at 70
locations in AZ, CA, CO, NV and NM. The home improvement stores, selling paints and
related supplies, occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in freestanding
facilities and end caps of strip centers. Plans call for as many as 10 openings in the
coming 18 months. Expansion will take place in the existing markets. Leases running five
to ten years are typical. Kingfood Enterprises does business as El Chico Restaurants
at 11 locations in AR, LA, MO, OK and TX. The Mexican restaurants occupy spaces of 6,000
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 AR and TX. Preferred
demographics include a population of 20,000 within two miles earning $30,000 as the
average income. Leases running 15 to 25 years are typical. Woody’s Macayo, Inc. trades as Macayo Mexican Restaurants
at 14 locations in AZ and NV. The Mexican restaurants occupy spaces of 6,000 sq.ft. to
8,000 sq.ft. in power centers and regional malls. Plans call for the opening of four units
in the coming 18 months. Expansion will take place in the existing markets. The company
prefers to purchase its locations. R.C. Willey Home Furnishings Inc. trades as R.C. Willey Home
Furnishings at 10 locations in ID and UT. The stores, selling home furnishings, floor
coverings, appliances and electronics, occupy spaces of 100,000 sq.ft. in freestanding
facilities. Plans call for two openings in the coming 18 months. Expansion will take place
in the Western region. The company prefers to purchase its locations. McWhorter Stationery operates 27 locations in CA. The office supply
stores occupy spaces of 6,000 sq.ft. to 10,000 sq.ft. in downtown store fronts,
freestanding facilities, regional malls and strip centers. Plans call for as many as three
openings in the coming 18 months. Expansion will take place in northern CA. Preferred
demographics include a population of 40,000 within three miles earning $50,000 as the
average income. Leases running 10 years are typical. Port of Subs, Inc. trades as Port of Subs at 103 locations
in AZ, CA, NV and WA. The sandwich restaurants occupy spaces of 1,000 sq.ft. to 1,500
sq.ft. in freestanding facilities and strip centers. Plans call for 18 openings in the
coming 18 months. Expansion will take place in AZ, CA, ID, NV, OR, UT and WA. Preferred
demographics include a population of 10,000 within two miles earning $35,000 as the
average income. Leases running five years, with options, are typical. New Construction Westcor Partners plans to develop Santan Festival Power Center
in Chandler, AZ. The 511,000 sq.ft. project, which will be built at the northeast corner
of Chandler Boulevard and 101/Price Freeway across from San Tan Fashion Center,
will feature 350,000 sq.ft. of anchor space, 60,000 sq.ft. of specialty shops and 12 pad
sites totaling 100,500 sq.ft. of space. Demographics include a three-mile population of
84,889 earning $66,108 as the average household income. A Fall 2000 opening is planned. Oppidan Inc. plans to break ground during Spring 2000 on a 568,000
sq.ft. power center in Grand Forks, ND. The $20 to $30 million project is believed to be
the first power center built in ND. The project is expected to be anchored by Best Buy,
Borders, Old Navy, Outback Steakhouse and Cracker Barrel. Target is also
reportedly negotiating to lease a site at the project for a possible SuperTarget
store. A Spring 2001 opening is planned. CB Richard Ellis is leasing Carson Depot which is currently
under development in Carson, CA. The 255,600 sq.ft. project is expected to be anchored by
a 107,920 sq.ft. Home Depot, a 57,560 sq.ft. Albertson’s Supermarket
and a 23,942 sq.ft. Staples store. More than 22,000 sq.ft. of specialty store space
and four outparcels will also be developed with McDonald’s expected to occupy
one of the pad sites. The project is located at the intersection of Sepulveda and Main
Street. Demographics include a three-mile population of 200,664 earning $57,724 as the
average income. The company is also leasing Corona Village which is currently under
development in Corona, CA. The project, which is being developed at the intersection of
Magnolia Avenue and Ontario Avenue, will be anchored by a 51,997 sq.ft. Ralphs
Supermarket, Hallmark, Score, Radio Shack, Blockbuster, Rubio’s Baja Grill and Papa
John’s Pizza. Demographics include a three-mile population of 93,754 earning
$55,089 as the average household income. An April 2000 opening is planned. Buyers & Sellers Praedium Advisors, Inc. has the listing to sell Manzanita Plaza in
Tucson, AZ. The 116,031 sq.ft. project is anchored by Safeway, McDonald’s and KFC.
The asking price is $7.9 million and financing of $4.47 million must be assumed through
July 2004. The company also has the listing to sell Dobson Park Plaza in Chandler, AZ. The
project is anchored by a grocery store. The asking price is $5 million and financing is
available. DLC Management Corporation recently acquired Alpine Commons
Shopping Center in Wappingers Falls, NY. The 210,000 sq.ft. project is anchored by Super
Stop & Shop, BJ’s Wholesale Club and AC Moore. N.E. Cohen & Associates has the listing to sell a portfolio of
23 freestanding Rite Aid drug stores and one Family Dollar store totaling 267,423 sq.ft.
The current NOI is $3.11 million and the asking price is $34.9 million. Financing is
available. The following financing quote has been offered by a creditable Wall Street
investment holding company: debt: 90% of purchase price; Amortization: 30/10; Rate 8.25%
(perhaps less); non-recourse. Based on a purchase price of $34.742 million (9.5% cap rate)
that will yield a cash on cash flow of $550,000 or 16.8%, on equity of $3.274 million. College Properties, a subsidiary of Petroleum Properties
Corporation, is selling a three-acre parcel of land located at Exit 100 of I-95 and
Maryland Routes 272 and 274 in Cecil County, MD adjacent to Cecil Community College. The Boulder Group represents a client in the market to acquire
single tenant properties. Preferred properties must have at least nine years left on the
lease and be priced over $5 million. Net Leased Investments has the listing to sell four Don Olsen Tire
Centers in Jacksonville, Sunrise and Miami, FL and Oklahoma City, OK. The asking prices
for the 20-year NNN leases are $1.44 million, $1.47 million, $1.77 million and $1.56
million, respectively. The company also has the listing to sell an OfficeMax store in
Indiana. The asking price for the 15-year NNN lease is $2.77 million. Westport Commercial Realty, Ltd. has the listing to sell 18 newly
developed Eckerd Drug stores. The 20-year NNN leases are priced at $59 million based on an
8.75% cap rate. The company also has the listing to sell Wal*Mart stores. The asking
prices are based on an eight percent cap. Kin Properties is selling the fee position under a Kmart anchored
strip center in Fairborn, OH. The lease is a NNN lease to the owner of the center. The
asking price is $1.635 million at a 8.75% cap. Who’s Opening & Where Cost Plus (510-893-7300) plans to open a 20,550 sq.ft. store at Village Square of Northbrook in Northbrook, IL during Spring 2000. Bassett Furniture Direct (540-629-6000) is planning to open six furniture stores in Houston, TX; Las Vegas, NV and CO within the coming year. The company opened its first store in Las Vegas during September. Pizza World Supreme (559-432-0399) recently opened a 2,400 sq.ft. Slices restaurant in Dallas, TX. The store, the second of the concept, offers pizza by the slice. While exact numbers have yet to be announced, the company has said that it wants to become the "Starbucks of pizza." The company also operates the 60-unit Me-n-Ed’s Pizzeria chain. Charo Chicken (714-960-2348), which operates six chicken restaurants in Southern CA, has begun franchising its concept and plans to open seven franchised units before the end of the year. The company plans to open 12 restaurants during 2000 on its way to a goal of operating 50 units by 2004. In addition to CA, expansion is being planned for AZ, CO, NV, OR and WA. Wal*Mart Stores (501-273-4000) is planning to develop a store at a proposed shopping center on the site of the former Springfield airport in Springfield, OR. It will be the company’s third store in the market. Target Stores (612-304-6099) recently opened a SuperTarget store in Orlando, FL. The store is the newest prototype for the concept and features an Archer Farms grocery department combined with a traditional Target store. The Archer Farms brand is a mythical dairy farm created by Target. The company has tested the combo store concept for the past five years and plans to open 200 SuperTargets in the coming 10 years, including a unit in Grand Forks, ND. The Orlando store is the company’s 16th superstore. The company recently entered the Pittsburgh, PA market with five traditional stores in Monroeville, Hempfield, North Fayette, South Strabane and McCandless. The company also plans to open a traditional store at Monte Vista Crossing Shopping Center in Turlock, CA. F&M Foods, Inc. recently signed a development agreement with Allen-White Companies, L.C. (616-452-0746) to develop five Church’s Chicken restaurants in the Grand Rapids/western MI market. The first unit is expected to open in one of Grand Rapid’s Renaissance Zones during Winter. Since its inception, Allen-White Companies has developed and/or built restaurants for Burger King and McDonald’s franchisees. Rite Aid (717-761-2633) has scaled back its proposed store opening plan from 500 stores last year to 300 stores this year. Filene’s Basement (617-348-7000) recently opened four Aisle 3 stores in Shaumberg, Wheaton, Buffalo Grove and Morton Grove, IL. The Aisle 3 stores average 60,000 sq.ft. and offer men’s and women’s apparel and accessories, home furnishings, housewares and tabletop items. The stores are only open on Fridays, Saturdays and Sundays. The company currently operates eight Aisle 3 stores in IL, MD, NJ and NY. Financial News The Great Atlantic & Pacific Tea Company, Inc. (201-573-9700) reported that its second quarter sales were down slightly to $2.28 billion from $2.33 billion during the second quarter last year. Comparable store sales for the quarter increased 4.3%. Net income for the quarter was $5.4 million, down from $10.9 million last year. Excluding the cost of strategic initiatives, the company’s second quarter net income would have been $17.4 million. At the end of the quarter, the company concluded its acquisition of six Schwegmann’s stores in New Orleans, LA. Five of the stores are being converted to the Sav-A-Center concept and the sixth store will be replaced on site during fiscal 2000. Also during the quarter, the company opened eight stores and remodeled or expanded 14 others. Eighteen stores were closed. The company currently operates 749 stores trading as A&P, Waldbaum’s, Super Fresh, Farmer Jack, Sav-A-Center, Super Foodmart, Food Emporium, Kohl’s, Dominion and Food Basics in 16 states and Canada. Pueblo Xtra International, Inc. (954-977-2593) reported that its second quarter net income dipped to $2.6 million from $5.4 million during the second quarter last year. Total sales for the quarter fell 15.9% to $152.8 million from $181.6 million last year with comparable store sales fell 16.5% for the quarter. The company operates 50 supermarkets and 44 Blockbuster Video stores in Puerto Rico and the U.S. Virgin Islands. Penn Traffic Co. (315-457-9460) reported that its second quarter revenues fell 13.4% to $632.7 million from $730.2 million during the second quarter last year. Comparable store sales fell 1.1% for the quarter. During the quarter, the company completed its reorganization out of bankruptcy and has adopted "fresh start reporting," a recounting of the company’s fiscal activity that does not allow a year-to-year comparison of results from the just completed quarter. During the June 26 to July 31 period, the company lost $8.8 million. The Kroger Co. (513-762-4000) reported that total sales for the second quarter increased 6.2% to $10.3 billion from $9.9 billion during the second quarter last year. Identical food sales increased 2.6% and comparable store sales increased 3.6% for the quarter. EBITDA (earnings before interest, taxes, depreciation, amortization, LIFO and unusual items) totaled $705 million, up from $652 million last year. During the quarter, the company opened, expanded, relocated or acquired 19 stores. The company currently operates 2,192 grocery stores, 796 convenience stores and 380 fine jewelry stores. Delhaize America, Inc. (704-7633-8250) recently began trading its stock on the New York Stock Exchange under the symbols "DZA" (Class A shares) and "DZB" (Class B shares). The formation of Delhaize America, a new holding company structure for the Food Lion, Kash n’ Karry, and Save ‘n Pack supermarket chains, was approved by the shareholders of Food Lion last month. All former Food Lion Class A and Class B shares had a reverse spilt one for three and converted into Delhaize America shares. During August, Hannaford Bros. Co. agreed to be acquired by Delhaize America. It is expected that Hannaford will join its sister companies under the Delhaize America umbrella by the end of the year. www.delhaize-americainc.com Sources of Financing Capital Resource Group (630-629-0408) offers financing for properties net leased to credit tenants rated BB+ and higher. The company offer maximum loan dollars with debt service coverage as low as 1.003x; competitive rates, up to 100% of property’s NOI including future rent increases and non-recourse, self-liquidating loans. L.J. Melody & Company (713-787-1900) recently arranged fixed-rate financing in the amount of $31.7 million for Northpointe Plaza Shopping Center in Spokane, WA. Salomon Smith Barney provided the funding on behalf of the borrower, Wesbild Enterprises Ltd. The 356,000 sq.ft. project is anchored by Safeway, Rite Aid, Staples, PetsMart, T.J. Maxx and Gart Sports. The company also arranged fixed-rate financing in the amount of $16.25 million for SeaTac Village in Federal Way, WA. Salomon Brothers Realty Corp. provided the funding on behalf of the borrower. The 164,000 sq.ft. project is anchored by Linens ‘N Things, T.J. Maxx, Borders Books, Old Navy, Big 5 Sporting Goods and Old Country Buffet. Johnson Capital Group, Inc. (949-660-1999) provided PruExpress financing totaling $25 million to The Newhall Land and Farming Company for its River Oaks Shopping Center and NorthPark Village Square Shopping Center projects in Santa Clarita, CA. The 272,205 sq.ft. River Oaks Shopping Center is anchored by Target and Mervyn’s. The 81,812 sq.ft. NorthPark Village Square Shopping Center is anchored by Ralph’s and Rite Aid. MortgageCap Financial (315-425-0890) offers non-recourse mortgages for all types of commercial real estate including shopping centers. The company offers low rates and low origination fees. Available are construction into permanent loans up to 95% loan to cost for experienced developers with history of successful development of projects. Long term business loans up to 20 year terms for profitable businesses seeking to refinance their real estate and/or equipment are also available. Most of the company’s loans are over $1 million, but can go as low as $500,000. Loan sizes can go up to $75 million for either single properties or portfolios. www.fundingcommercial.com or www.valcapfinancial.com Lead Sheet Claire’s Stores Inc. Accessories The 1,670-unit chain operates locations nationwide. The stores, selling women’s and teenage girl’s accessories, occupy spaces of 800 sq.ft. to 1,300 sq.ft. in regional malls, entertainment, outlet, power and strip centers. Plans call for as many as 100 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years are typical and the company cites After Thoughts as competition. Charming Shoppes Inc. Apparel The 1,135-unit chain operates locations nationwide. The women’s apparel stores occupy spaces of 7,000 sq.ft. to 9,000 sq.ft. in strip centers. Preferred anchors include Kmart, Target, Wal*Mart and supermarkets. Plans call for 125 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 50,000 within seven miles earning $40,000 as the average income. The company prefers a vanilla shell. Hobby Lobby Stores dba Hobby Lobby Creative Centers Arts/Crafts/Fabrics The 212-unit chain operates locations nationwide. The stores, selling arts and crafts, floral items, fabrics, frames, hobby items and seasonal merchandise, occupy spaces of 50,000 sq.ft. to 55,000 sq.ft. in freestanding facilities, power and strip centers. Preferred co-tenants include Kmart, Wal*Mart and supermarkets. Plans call for as many as 50 openings in the coming 18 months. Expansion will take place within a 900 mile radius of Oklahoma City, OK. Preferred demographics include a population of 150,000 within five miles earning $35,000 as the average income. Leases running 10 years are typical. AutoNation USA Automotive The 400-unit chain operates locations nationwide. The used car stores occupy spaces of 5,000 sq.ft. to 40,000 sq.ft. in freestanding facilities on four to 50 acres of land. Plans call for at least 60 openings in the coming 18 months. Expansion will take place nationwide. The company prefers to purchase its locations. Mechanics Auto Parts 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. Hall of Cards & Books, Inc. Books The 26-unit chain operates locations in MI and IN. The stores, selling books, Hallmark cards and gifts, occupy spaces of 5,000 sq.ft. to 7,500 sq.ft. in downtown store fronts, freestanding facilities, power and strip centers. Plans call for one opening in the coming 18 months. Expansion will take place in Indiana. Preferred demographics include a population of 25,000 within five miles earning $45,000 as the average income. Leases running five years are typical. Dollar Express Inc. Cards & Gifts The 24-unit chain operates locations in DE, MD, NJ and PA. The stores, selling cards and gifts, occupy spaces of 4,000 sq.ft. in freestanding facilities, regional malls and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets. Leases running five years are typical. WFFS LLC Convenience Store The four-unit chain operates locations in NJ. The drive-thru convenience stores occupy spaces of 1,000 sq.ft. to 1,200 sq.ft. in freestanding facilities on one-half to three-quarters an acre of land. Plans call for as many as 15 openings in the coming 18 months. Expansion will take place in Bergen and Monmouth counties in NJ. Preferred demographics include a population of 10,000 within one mile earning $50,000 as the average income. Marathon Ashland Petroleum Company The 2,400-unit chain operates locations in AL, FL, GA, IL, IN, KY, LA, MI, MN, MS, NC, OH, SC, TN, TX, WI, and WV. The convenience stores, which also sell gasoline, occupy spaces of 2,400 sq.ft. in freestanding facilities. Plans call for 25 openings in the coming 18 months. Expansion will take place in IL, IN, KY, OH and MN. The company prefers to purchase its locations. Peebles Inc. Department Store The 125-unit chain operates locations in AL, DE, IN, KY, MD, MO, NJ, NY, NC, OH, PA, SC, TN, VA and WV. The department stores occupy spaces of 15,000 sq.ft. to 35,000 sq.ft. in regional malls and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in the Eastern region. Leases running 15 years are typical. Lincoln Pharmacy of Milford Inc. Drug Store The eight unit chain operates locations in MA. The drug stores, which also sell general merchandise, occupy spaces of 9,000 sq.ft. to 16,000 sq.ft. in freestanding facilities, specialty and strip centers. Plans call for as many as two openings in the coming 18 months. Expansion will take place in the existing market. Dryclean-USA Dry Cleaners The 835-unit chain operates locations nationwide. The dry cleaners occupy spaces of 2,000 sq.ft. in freestanding facilities and strip centers. Preferred anchors include supermarkets. Growth opportunities are sought nationwide. Preferred demographics include a population of 30,000 within three miles earning $45,000 as the average income. Leases running five years are typical. Larry’s Giant Subs Food The 65-unit chain operates locations in FL, GA and TN. The restaurants, serving New York-style sandwiches, occupy spaces of 1,400 sq.ft. in freestanding facilities and strip centers. Plans call for as many as 15 openings in the coming 18 months. Expansion will take place nationwide. Leases running five to ten years are typical and the company is franchising. Country Visions Gifts The 50-unit chain operates locations nationwide. The stores, selling country themed collectibles, gifts and home decor items, occupy spaces of 1,500 sq.ft. to 2,500 sq.ft. in regional malls, entertainment, outlet, power and specialty centers. Preferred co-tenants include JC Penney, Target and female-oriented retailers. Plans call for 36 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 100,000 within 25 miles earning $35,000 as the average income. Leases running five years, with a five-year option, are typical and the company prefers a vanilla shell. Woodcraft Hobby The 40-unit chain operates locations nationwide. The stores, selling wood working tools and materials, occupy spaces of 6,000 sq.ft. in strip centers. Plans call for at least 11 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years, with options, are typical and the company is franchising. Grand Furniture Discount Store Home Furnishings The eight-unit chain operates locations in VA. The stores, selling home furnishings, occupy spaces of 30,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. Leases running five years are typical and the company prefers a vanilla shell. Mattress King, Inc. Home Furnishings The 32-unit chain operates locations in NC and VA. The stores, selling mattresses and bedding, occupy spaces of 2,500 sq.ft. to 4,000 sq.ft. in freestanding facilities and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running five years, with options, are typical. South Dakota Furniture Mart Home Furnishings The 14-unit chain operates locations in IA, MN, ND and SD. The furniture stores occupy spaces of 60,000 sq.ft. in freestanding facilities and outlet centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in MN and ND. Leases running five years, with two options of five years each, are typical and the company prefers a vanilla shell. Alexander Lumber Co.
The 48-unit chain operates locations in IL and WI. The home improvement stores occupy spaces of 3,000 sq.ft. to 6,000 sq.ft. in freestanding facilities. Plans call for one opening in the coming 18 months. Expansion will take place in IL. The company prefers to purchase its locations. Godart Real Group Optical The 42-unit chain operates locations nationwide. The optical stores occupy spaces of 4,000 sq.ft. to 5,000 sq.ft. in freestanding facilities, power centers and regional malls. Plans call for as many as 30 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 50,000 within five miles earning $60,000 as the average income. Leases running five to seven years are typical. Pinch A Penny Specialty The 120-unit chain operates locations in AL, FL and GA. The stores, selling pool, patio and spa equipment and supplies, occupy spaces of 3,500 sq.ft. in freestanding facilities 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 five years, with a five-year option, are typical. Academy Corp. Sporting Goods The 49-unit chain operates locations in AL, FL, LA, MS, OK, TN and TX. The sporting goods stores occupy spaces of 50,000 sq.ft. in freestanding facilities and strip centers. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 20 years are typical and the company prefers a vanilla shell. Harris-Teeter, Inc. Supermarket The 140-unit chain operates locations in FL, GA, NC, SC, TN and VA.
The supermarkets occupy spaces of 20,000 sq.ft. to 60,000 sq.ft. in freestanding
facilities and strip centers. Plans call for 15 openings in the coming 18 months.
Expansion will take place in the existing markets. Leases running 20 years are
typical. Center Trust, Inc. (310-546-4520) announces the election of Mark Ticotin to its board of directors. Ticotin currently serves as chief operating officer of Lazard Freres Real Estate Investors LLC. Prior to joining LFREI, he was senior executive vice president of Simon Property Group after SPG merged with Corporate Property Investors. Ticotin is also a member of the board of directors of Konover Property Trust, InTown Suites and Atria Senior Quarters. CBL & Associates Properties, Inc. (423-855-0001) announces that Lewis Hilton has joined the company in its community center leasing department. In his new position, Hilton has been assigned a group of community shopping centers owned/managed by the company and will be primarily responsible for the leasing of these properties. ChainLinks Retail Advisors (703-288-7370) announces the opening of new corporate offices in Tysons Corner, VA. The company has also transformed itself into an independently capitalized stock corporation. Developers Diversified Realty Corporation (216-755-5500) announces
that Tony Vodicka and Tom Zoldesy have joined the company as leasing managers. Vodicka
will have leasing responsibility for properties in MI, OH, IN and MN accounting for more
than 3.8 million sq.ft. of space. Zoldesy will focus on DDR’s regional malls in MN,
ND, SD, IL, OH, MI and IA, which account for 2.6 million sq.ft. of space. Both Vodicka and
Zoldesy join DDR from The Richard E. Jacobs Group where they served as leasing
representatives. The Hutensky Group (860-527-2222) leased 5,937 sq.ft. to Hollywood Video at Northwest Outlot Center in Dayton, OH and 24,000 sq.ft. to Staples at Northpark Center in Dayton, OH. The Dartmouth Company (617-262-6620) leased 5,000 sq.ft. to Corners/Framing Superstore in Norwood, MA; 4,500 sq.ft. to Corners/Framing Superstore in Cambridge, MA; 8,000 sq.ft. to Hollywood Video in Medford, MA; 4,200 sq.ft. to Corners/Framing Superstore at Johnstown Plaza Shopping Center in Johnstown, RI; 5,200 sq.ft. to Corners/Framing Superstore in North Attleboro, MA and 4,500 sq.ft. to Corners/Framing Superstore in Orange, CT. Tulsa Properties, Inc. (918-665-3830) leased 25,000 sq.ft. to Office Depot in Muskogee, OK. The Cafaro Company (330-747-2661) leased 4,003 sq.ft. to Funcoland at Millcreek Mall in Erie, PA and 1,914 sq.ft. to Vitamin World at Governor’s Square Mall in Clarksville, TN. Flocke & Avoyer Commercial Real Estate (619-280-2600) leased 3,126 sq.ft. to Del Taco in San Diego, CA. Robinson Sigma Commercial Real Estate, Inc. (757-490-3300) leased 12,000 sq.ft. to Total Beverages at Robious Hall Shopping Center in Richmond, VA and space to Starbucks Coffee, Dragonball Chinese Restaurant, Murphy’s Stars & Stripes Restaurant and Classic Shoes at Selden Arcade in Norfolk, VA. Trammell Crow Company (561-394-3388) leased 6,000 sq.ft. to Hollywood Video at Jupiter Farms Shopping Center in Jupiter, FL. First National Development Ltd. (312-527-9800) leased 30,900 sq.ft. to T.J. Maxx, 20,010 sq.ft. to PetsMart, 31,500 sq.ft. to Linens ‘N Things, 20,280 sq.ft. to Michaels Stores, 30,100 sq.ft. to Best Buy and 24,570 sq.ft. to Old Navy at Plaza Santa Fe in Santa Fe, NM. Noddle Development Company (402-496-1616) leased 18,560 sq.ft. to Dollar General at Storm Lake Plaza in Storm Lake, IA and 5,600 sq.ft. to Mr. Movies and 2,800 sq.ft. to Tasty Taco at Ankeny Plaza in Ankeny, IA. TKO Real Estate Advisory Group (609-587-6200) and RD Management Corp. (212-265-6600) leased 4,500 sq.ft. to Hallmark at Trexler Mall in Trexler, PA. Charter Realty & Development Corp. (203-629-3939) leased 27,000 sq.ft. to Michael’s Crafts at Ridgeway Center in Stamford, CT. Azarian Management & Development Company (201-444-7111) leased 63,000 sq.ft. to Ames Department Store at a former Jamesway location at Hyde Park Mall in Hyde Park, NY. The Festival Companies (310-264-9900) leased 3,720 sq.ft. to Clothestime at Janass Marketplace in Thousand Oaks, CA and 1,243 sq.ft. to Funcoland at Escondido Promenade in Escondido, CA. Exclusives Capital Realty Advisors, Inc. (561-624-5888) has been named the leasing and managing agent for the 199,492 sq.ft. Sky Ridge Plaza in Round Rock, TX. The Bradco Cos. (760-951-5111) has been selected by International Franchise and Business Brokers to market more than 85 franchises and businesses in the CA cites of Adelanto, Apple Valley, Barstow, Hesperia and Victorville. Under the agreement, Bradco will offer franchise and distributorship opportunities to local entrepreneurs, as well as provide site location services to them or other franchisees looking to break into the market. Among the franchises available are Batteries Plus, Carpet Network, Great Clips, Golf Augusta Pro Shops, Mollie Maid, Microtel Inn, Pet Land, Sign World and T-Shirts Plus. International Franchise and Business Brokers’ membership consists of more than 150 real estate companies in 30 states. The association usually grants exclusive territories to one company in each county. Silbert Realty & Management Company, Inc. (908-754-5353) represents IHOP which is seeking 4,000 sq.ft. to 5,000 sq.ft. freestanding buildings or end cap spaces in DE, NJ, NY and PA. The company represents Franks Nursery & Crafts which is seeking four to five acres of land to support a 55,000 sq.ft. facility in NJ. The company represents General Cinema Corporation which is seeking spaces of 60,000 sq.ft. to 85,000 sq.ft. and/or eight to 18 acres of land on which to develop a movie theater in NJ. The company represents Gateway which is seeking spaces of 4,000 sq.ft. to 10,000 sq.ft. in freestanding buildings or end caps in NJ. The company represents Leslie’s Swimming Pool Supplies which is seeking spaces of 3,500 sq.ft. to 5,000 sq.ft. in freestanding facilities and strip centers in NJ. The company also represents Old Navy which is seeking standard spaces of 22,000 sq.ft. to 25,000 sq.ft. or anchor positions of 35,000 sq.ft. to 40,000 sq.ft. in NJ. TKO Real Estate Advisory Group, Inc. (609-587-6200) represented Gibraltar Management in the leasing of a 63,000 sq.ft. space to Burlington Coat Factory at Middlesex Mall in South Plainfield, NJ. The project is also anchored by Kmart, Stern’s and Pathmark. TKO has been named the exclusive tenant representative for Tops Appliance City in the metropolitan New York City market, including Brooklyn, the Bronx, Queens and Staten Island and Westchester County, NY. The company is seeking spaces running 20,000 sq.ft. to 25,000 sq.ft. for Tops Super Appliance stores. TKO is also seeking one to five acre parcels of land in northern NJ for another client. Fidelity Commercial (610-878-2220) represents Gateway Country Store which is seeking 8,000 sq.ft. spaces in areas having MSAs of at least 500,000 population. The company typically signs five year leases with four five-year options. Royal Properties, Inc. (914-237-3403) has been named the exclusive
leasing agent for Airmont Town Center in Rockland County, NY. The company has also
been named the exclusive leasing agent for the 45,000 sq.ft. Village Square in
Airmont, NY which is expected to open during Fall 2000. The company is also the exclusive
agent for 1.3 acres of land on Spook Rock Road off Route 59 in Rockland County, NY. Delaware Dover- Baycourt Plaza is anchored by Value City.
The 176,000 sq.ft. project has in-line spaces from 1,000 sq.ft. to 40,000 sq.ft., as well
as pad sites from 2,000 sq.ft. to 12,000 sq.ft., available for lease. Demographics include
a three-mile population of 39,612 earning $55,289 as the average household income. In Newark-
Deer Park Plaza is anchored by Happy Harry’s. The project has spaces
from 1,200 sq.ft. and up, as well as a pad site of 3,450 sq.ft., available for lease. Also
in Newark- Peoples Plaza is anchored by Home Depot,
Genuardi’s Family Supermarket and Regal Cinemas. The 454,000 sq.ft.
project has spaces of 5,000 sq.ft., 7,200 sq.ft., 9,000 sq.ft. and 28,000 sq.ft. available
for lease. Demographics include a five-mile population of 93,651 earning $56,043 as the
average household income. Florida Clearwater- Sunset Point 19 is anchored by Publix,
Sports Authority, Staples, Barnes & Noble, Gap/Old Navy, Bed Bath & Beyond,
CompUSA and Eckerd. The 272,990 sq.ft. project has space available for lease.
In Pensacola- Trade Winds Shopping Center is anchored by T.J.
Maxx, PharMor and Shoe Station. The 183,500 sq.ft. project has space available
for lease. Tallahassee- Capital West Shopping Center is anchored by
Wal*Mart and Lowe’s. The 198,849 sq.ft. project has space available for
lease. Demographics include a five-mile population of 96,207 earning $38,918 as the
average household income. Indiana Indianapolis- Hamilton Crossing Center is anchored by Office
Depot and Max & Erma’s. The 81,720 sq.ft. project has spaces of 1,280
sq.ft., 2,400 sq.ft., 3,780 sq.ft. and 5,000 sq.ft. available for lease. Demographics
include a three-mile population of 37,888 earning $92,107 as the average household income.
Also in Indianapolis- Parkwood Centre is anchored by Whole Foods
Market. The 100,000 sq.ft. project has spaces of 4,000 sq.ft., 8,000 sq.ft., 18,600
sq.ft. and 20,000 sq.ft. available for lease. Demographics include a three-mile population
of 50,801 earning $86,046 as the average household income. New York New Hartford- A 13,400 sq.ft. former Discovery Zone end
cap space is available for lease a 184,000 sq.ft. shopping center anchored by Kmart,
Price Chopper and Eckerd Drugs. Demographics include a five-mile population of
150,982 earning $52,394 as the average household income. West Virginia Charlestown- Charlestown Plaza is anchored by Wal*Mart
and Staples. The 201,313 sq.ft. project has spaces of 4,550 sq.ft. and 5,000 sq.ft.
available for lease. Demographics include a five-mile population of 21,065 earning $47,041
as the average income. |