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Issue Number 39
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The Dealmakers Issue Number 39 for the week October 22, 1999. Apparel Retailers Expanding Nationwide Goody’s Family Clothing, Inc. trades as Goody’s at
269 locations in AL, AR, FL, GA, IL, IN, KY, MO, MS, NC, OH, SC, TN, TX, VA and WV. The
family apparel stores occupy spaces of 25,000 sq.ft. to 30,000 sq.ft. in freestanding
facilities, regional malls, power and strip centers. Plans call for 30 openings in the
coming 18 months. Expansion will take place in the existing markets. Preferred
demographics include a population of 50,000 within 10 miles earning between $30,000 and
$70,000 as the average income. Annie Sez operates 40 locations in CT, DE, MD, NJ, NY and PA. The
women’s apparel stores occupy spaces of 12,000 sq.ft. to 15,000 sq.ft. in downtown
store fronts, freestanding facilities and regional malls. Preferred co-tenants include
discount department stores, drug stores, linen stores, shoe stores and supermarkets.
Growth opportunities are sought in NJ and NY. Preferred demographics include a population
of 75,000 within three miles earning $70,000 as the average income. Leases running five
years, with options, are typical. Tahari Outlet operates eight stores along the East Coast. The
stores, selling its own line of women’s ready-to-wear clothing, occupy spaces of
5,000 sq.ft. in outlet centers. Growth opportunities are sought along the East Coast. J. Jill Group Inc. trades as J. Jill at two locations in MA.
The stores, selling women’s apparel, shoes and accessories, occupy spaces of 6,000
sq.ft. in regional malls. Growth opportunities are sought along the Eastern Seaboard. Bareco, Inc. trades as Bare Necessities at seven locations
in CT, MA, NJ, NY and VA. The stores, selling women’s intimate apparel, occupy spaces
of 2,000 sq.ft. to 3,000 sq.ft. in power and strip centers. Preferred anchors include big
box users. Plans call for three openings in the coming 18 months. Expansion will take
place in CT, MA and NJ. Preferred demographics include a population of 75,000 within five
miles earning $50,000 as the average income. Leases running 10 years are typical. B. Moss Clothing Company Ltd. trades as B. Moss Clothing Co.
at 80 locations in AL, CT, GA, IN, KY, ME, MD, MA, NJ, NY, NC, OH, PA, TN, VT, VA and WV.
The women’s apparel stores occupy spaces of 3,500 sq.ft. in regional malls. Plans
call for 12 openings in the coming 18 months. Expansion will take place within the
existing markets. Preferred demographics include a population of 100,000 within 15 miles
earning $45,000 as the average income. Leases running 10 years are typical.
New Construction Steiner Equities Group, LLC is developing Bridgewater Towne
Center in Bridgewater, NJ. The 565,000 sq.ft. project, which is being developed on the
former site of a Harris semiconductor plant, will contain 470,000 sq.ft. of retail
space and 95,000 sq.ft. of office space. The site is expected to have six anchors, the
largest of which will be 165,000 sq.ft. Four outparcels will also be developed.
Demographics include a five-mile population of 94,800 earning $87,800 as the average
household income. The company plans to develop the Epicentre in Manalapan, NJ. The
460,000 sq.ft. project is presently anchored by an 89,709 sq.ft. Value City Department
Store and will be joined by six additional anchor stores, the largest of which will be
123,000 sq.ft. Four outparcels will also be developed. Demographics include a five-mile
population of 98,819 earning $90,622 as the average household income. Catalfumo Development plans to break ground during Spring 2000 on Legacy
Place in Palm Beach Gardens, FL. The project, located at the intersection of PGA
Boulevard and I-95, will contain 350,000 sq.ft. of retail space along with 200,000 sq.ft.
of residential and office space. The site, located across from The Gardens Mall
which is anchored by Bloomingdales and Saks, will contain an 18-screen movie
theater, a 30,000 sq.ft. book store, upscale restaurants and fashion-oriented retailers in
a pedestrian-friendly environment. Ryan Companies US, Inc. recently broke ground on Long Run
Marketplace in Lemont, IL. The 270,000 sq.ft. project, located at the intersection of
State Street and Archer Avenue will be anchored by a Kohl’s department store
and Target. An August 2000 opening is planned. Urban Shopping Centers Inc., along with Walton Street Capital,
LLC, plans to acquire Houston Galleria from Hines Interests LP, which
developed the project in 1970, for more than $500 million. In addition to the 1.6 million
sq.ft. of retail space, the deal also includes the 1.1 million sq.ft. of office buildings,
a 400-room Westin Oaks hotel and a 500-room Westin Galleria hotel and 14
acres of land. Following completion of the deal, Urban Shopping Centers plans to break
ground on a $150 million expansion of the mall, including the development of a Nordstrom’s
department store. A second unnamed department store will also be a part of the expansion.
Currently, the project is anchored by Neiman-Marcus, Saks Fifth Avenue, Lord &
Taylor and Macy’s. The expansion is expected to be completed in time for
the Christmas shopping season in 2002. Wolfson-Verrichia Group, Inc. plans to develop Sadsbury Commons
in West Sadsbury, PA. The 230,000 sq.ft. project, located at the intersection of Routes 30
and 10, will be anchored by a 125,000 sq.ft. discount store and a 50,000 sq.ft.
supermarket. Demographics include a five-mile population of 26,796 earning $58,304 as the
average household income. The company plans to develop Almonesson Crossings in
Deptford, NJ. The 202,500 sq.ft. project, which will be located at Route 41 and Deptford
Center Road, will be anchored by a 135,000 sq.ft. Wal*Mart and a 18,900 sq.ft. Pep
Boys Auto Center. Demographics include a five-mile population of 211,432 earning
$56,217 as the average household income. The company is also planning to develop Oxford
Commons in Oxford, PA. The 345,000 sq.ft. project, located at the intersection of
Routes 10 and 1, will be anchored by a 135,000 sq.ft. discount store, a 60,000 sq.ft.
supermarket, a 40,000 sq.ft. movie theater, a 37,000 sq.ft. hardware store and a 35,000
sq.ft. junior department store. Demographics include a five-mile population of 18,605
earning $56,604 as the average household income. Universal Properties Group, Inc. is developing The Centre of New
England in Coventry, RI. The 500-acre mixed-use development, which is located near
I-95 exits 7 and 6A, will consist of an enclosed outlet mall, value retailers,
restaurants, entertainment and industrial uses. Existing tenants include BJ’s
Wholesale Club, Vanity Fair Factory Outlets and Cracker Barrel restaurant.
Existing industrial tenants consist of RI Mack, ASCO HealthCare, ABX, Inc. and Primary
Colors Day Care. State and local tax incentives have been secured and may reduce a
retailer’s long-term occupancy costs by as much as $4 psf.
Buyers & Sellers Amerishop Real Estate Services, L.P. has the listing to sell a
50,200 sq.ft. freestanding Circuit City store in Jacksonville, FL. The tenant has a NNN
lease with five five-year options and 12% rent increases each term. The primary term
expires in 2005. The site is located across from Regency Square Mall. The asking price is
$4.425 million. The company has the listing to sell a 59,589 sq.ft. freestanding Kroger
grocery store in Indianapolis, IN. The tenant has a NNN lease with five five-year options.
The primary term expires in 2010. The asking price is $4.725 million. The company has the
listing to sell a freestanding Kroger grocery store in Memphis, TN. The tenant has a NNN
lease with five five-year options. The primary term expires in 2008. The asking price is
$3.45 million. The company has the listing to sell a 102,620 sq.ft. Target ground lease in
Sugar Land, TX. The lease’s primary term expires in 2004 and has three five-year
options with 10% rent increases each term. Target, which anchors a 250,000 sq.ft.
community shopping center, is responsible for all expenses related to the site and
building. The asking price is $4.15 million. The company also has the listing to sell a
45,292 sq.ft. freestanding Winn-Dixie grocery store in Elizabethtown, KY. The tenant has a
NNN lease with five five-year options. The primary term expires in 2008. The asking price
is $3.1 million. Colliers Appelt Womack, Inc. has the listing to sell eight
outparcels, ranging in size from .7 acres to 3.4 acres, along the perimeter of West Oaks
Mall in Houston, TX. The 1.05 million sq.ft. mall is anchored by Sears, Dillard’s, JC
Penney, Foley’s, Mervyn’s and Palais Royal. Excell Fund, LLC has the listing to sell an 8,000 sq.ft.
freestanding Family Dollar Store in Denver, CO. The tenant has a NNN lease with 10 years
remaining on the primary term. The company also has the listing to sell a two NNN leases
in south TX tenanted by CSK Auto and EZPawn. The company is in the market to acquire strip
centers nationwide. Preferred projects should have GLAs of at least 85,000 sq.ft. and have
at least a 50% occupancy rate with some credit tenants. Properties located in small towns
will be considered. Tucson Realty & Trust Co. has the listing to sell 14.02 acres
of land in Tucson, AZ. The site, located at the intersection of Orange Grove and La
Cholla, is one of the last largest tracts of undeveloped land in the city. The site is
zoned commercial and has an approved development plan and engineering for a 140,000 sq.ft.
project. The asking price is $2.6 million. REOC Property Services, LLC represents a client in the market to
acquire $200 million worth of retail, office and/or industrial properties before the end
of the year. Preferred retail sites should have NNN leases with "BBB" credit
tenants or better located in the top 50 MSA’s. Class "A" anchored retail
sites of at least 100,000 sq.ft. will also be considered. The client is not interested in
freestanding drugstores or any properties below 40,000 sq.ft. Friedman Real Estate Group represents a client in the market to
acquire NNN retail sites nationwide. The company also represents a client in the market to
acquire approximately $60 million in NNN properties. Werner & Associates has the listing to sell a Hollywood Video
store in Vallejo, CA. The tenant has a NNN lease with three five-year options. The primary
term expires in 2004. The asking price is $1.77 million. Coldwell Banker Commercial Mountain West Real Estate, Inc. has the
listing to sell a .93 acre pad site in Salem, OR. The site is located at the entrance to a
Home Depot store and has all city utilities to the site. The asking price is $325,000. The
company has the listing to sell 1.76 acres of land in Salem, OR. The site is located
across from a new Regal Cinemas 11-screen theater and has all city utilities to the site.
The asking price is $1.149 million. The company also has the listing to sell 1.1 acres of
land in Salem, OR. The site is located at the intersection of West Salem Road and Bassett
Street and is located across from a Taco Bell restaurant. All city utilities are
available. The asking price is $720,000. First Rockford Group is in the market to acquire shopping centers
in IL, IN, IA, MN and WI. Preferred projects should be well established. The company also
represents First Ranger Petroleum which is in the market to acquire class "A"
gas stations in IL, IN, IA, MN and WI. Internet www.dealmakers.net, Inc. has the listing to sell a 145,000
sq.ft. Wal*Mart anchored shopping center in AR. The asking price is $7.55 million and
financing is available. Capital Commercial Real Estate NAI represents a client in the
market to acquire single tenant fast food restaurants and gas stations or any type of long
term ground leases up to $1.5 million in AZ, CA, CO, NM, NV, OR, TX, UT and WA. The client
prefers to purchase corporate leases only. Laureate Capital Corp. brokered the sale of Carolina Pavilion
Shopping Center in Charlotte, NC to DIM Vastgoed. The 849,000 sq.ft. project is anchored
by Target, Sports Authority and Kohl’s. The company also brokered the sale of
Patriots Plaza in Mt. Pleasant, SC to Konover Property Trust. The 115,000 sq.ft. project
is anchored by Bi-Lo Foods and Staples. The combined sales price was $85.6 million.
Financial News Bed Bath & Beyond Inc. (908-688-0888) reported that its second quarter net earnings increased 30.4% to $33.2 million from $25.5 million during the second quarter last year. Net sales increased 32.7% to $457.6 million from $344.9 million last year with comparable store sales up 9.7%. Since the beginning of its fiscal year, the company opened 26 stores, including its first units in AR and NV and is planning to open at least 24 more stores before the end of the year, including stores in the new markets of IA, LA and RI. Currently, the company operates 212 stores. www.bedbath.com Heilig-Meyers Company (804-784-7300) reported that its second quarter revenues in those division which were under the company’s ownership for the full quarter increased 2.1% to $489.3 million, compared to $487.9 million last year. As a result of the sales of the company’s Rhodes and Mattress Discounters divisions, total revenues declined to $573 million versus $675 million last year. During the quarter, the company completed the sale of its Mattress Discounters division which resulted in a pre-tax gain of $135.2 million. This gain was offset by $94.7 million in pre-tax charges associated with the write down of assets. The company currently operates 923 stores: 816 as Heilig-Meyers, 74 as The RoomStore and 33 in Puerto Rico as Berrios. www.heiligmeyers.com and www.rooomstore.com Evans Inc. (312-855-2000) was recently forced into Chapter 11 bankruptcy protection after three creditors filed involuntary petitions against it. Evans, which operates six stores in Chicago and has 49 leased fur departments in major department stores nationwide, had revenues of $90 million in its most recent full fiscal year. The company had been negotiating a restructuring plan, including financing, and was close to finalizing terms with its secured lenders when the petitions were filed. Supervalu Inc. (612-828-4225) reported that its second quarter sales increased 5.3% to $4.15 billion and net earnings increased 14% to $45.5 million. Sales in its retail business increased 19.9% to $1.37 billion with new stores driving the increase. Comparable store sales for corporate-owned units were flat. During the quarter, the company opened five new stores including four Save-A-Lot stores and acquired 102 Richfood stores. At the end of the quarter, the company was operating 472 stores which include 69 Cub Foods, 53 Shop ‘n Save, 163 Save-A-Lot, 37 Shoppers Food Warehouse, 18 Metro, 39 Farm Fresh, 10 bigg’s, 21 Scott’s Foods, 16 Laneco and five Hornbachers. Safeway Inc. (925-467-3000) reported that its third net income increased to $223.4 million from $193.7 million during the third quarter last year. Sales increased 15.9% to $6.5 billion from $5.6 billion last year, primarily because of the Dominick’s and Carrs acquisitions. Comparable store sales increased one percent for the quarter. The company’s interest expense increased to $73.4 million from $48.8 million during the third quarter last year primarily due to debt incurred to finance the Dominick’s and Carrs acquisitions. The company currently operates 1,649 supermarkets nationwide.
Exclusives Neal Realty & Investments, Inc. (954-568-0530) has been named the exclusive leasing agent for River Run Shopping Plaza in Miramar, FL. The 92,000 sq.ft. project has spaces from 1,200 sq.ft. to 2,400 sq.ft. available for lease. Divaris Real Estate (757-497-2113) has been appointed the real estate representative for R/C Theaters for its national expansion program. R/C Theaters plans to focus on "technically correct" cinemas and locate their theaters in new markets that are currently underserved. One of the first new R/C Theaters will open in 2000 at Pinellas ParkSide in Pinellas Park, FL. The 19-screen, 75,000 sq.ft. complex will be located in the Divaris leased and managed ParkSide Mall, which is being expanded and redeveloped for The John Hancock Mutual Life Insurance Company. Negotiations are underway for new locations in FL, MD, NJ and OH. KLNB, Inc. (410-321-0100) has been named the exclusive leasing agent for The Room Store in the Mid-Atlantic region. The company plans to open and re-locate as many as 10 stores in the MD, VA and Washington, D.C. markets. A portion of this strategy involves the repositioning of former Hub stores, which were purchased by Heilig-Meyers, the parent company of The Room Store, in February 1998. The Room Store, which currently operates 21 locations in the market, is finalizing construction on a new site at Columbia Crossing in Columbia, MD. Leases have also been signed at Greenbrier Town Center in Chantilly, VA; Kingstown Town Center in Alexandria, VA and Sugarland Crossing in Sterling, VA. Three former Hub stores, converted to The Room Store format, are re-locating to new locations, including Festival at Waldorf in Waldorf, CA; Parkridge Center in Manassas, VA and Columbia Crossing. KLNB is initially targeting centers that are anchored by big-box tenants. Blatteis Realty Inc. (415-981-2844) has been named the exclusive leasing agent for California Pizza Kitchen. The deal extends to any and all locations to be opened by the chain. CPK currently operates 92 restaurants in 20 states nationwide, as well as locations in the Philippines and Singapore.
Lease Signings Sigma National, Inc. (804-320-6100) leased 1,600 sq.ft. to General Nutrition Centers at Winterpock Crossing in Chesterfield County, VA; 1,500 sq.ft. to General Nutrition Centers at Garber’s Crossing in Harrisonburg, VA; 17,000 sq.ft. to PetsMart at Libbie Place Shopping Center in Richmond, VA; 1,432 sq.ft. to Jersey Mike’s at Railey Hill Shopping Center in Midlothian, VA and 2,610 sq.ft. to Jersey Mike’s at Frederick Park & Shop in Fredericksburg, VA. Flocke & Avoyer Commercial Real Estate (619-280-2600) leased 1,200 sq.ft. to Great Clips at Tierrasanta Town Center in San Diego, CA; 1,220 sq.ft. to Fastframe at Renaissance Town Center in San Diego, CA; 1,500 sq.ft. to The Framemaker at Price Plaza Shopping Center in San Diego, CA; 4,384 sq.ft. to Blockbuster Video in National City, CA and 24,711 sq.ft. to Henry’s Marketplace at Lemon Grove Shopping Center in Lemon Grove, CA. Trammell Crow Company (617-577-8887) leased 1,220 sq.ft. to Moto Photo at Wellesley Marketplace in Wellesley, MA; 820 sq.ft. to Moto Photo at Washington Square in Brookline, MA and 3,600 sq.ft. to Rent-A-Center at Festival at Hyannis in Hyannis, MA. Charter Realty and Development Corp. (203-629-3939) leased 8,792 sq.ft. to Dollar Tree at Shaw’s Plaza in Lakewood, MA; 15,755 sq.ft. to NamCo and 9,020 sq.ft. to Dollar Tree at Shaw’s Plaza in Nashua, NH; 6,805 sq.ft. to Fashion Bug at Shaw’s Plaza in North Quincy, MA and 7,383 sq.ft. to Family Dollar and 2,425 sq.ft. to Maine State Liquor at Shaw’s Plaza in North Windham, ME. Hiffman Shaffer Associates, Inc. (312-332-3555) leased 44,109 sq.ft. to Sportmart, 35,721 sq.ft. to Wickes Furniture, 24,928 sq.ft. to DSW Shoe Warehouse, 20,684 sq.ft. to Cost Plus World Market, 8,006 sq.ft. to Gateway Country Store and 6,500 sq.ft. to Hallmark at Orland Park Place in Orland Park, IL. Woodmont Realty Associates, Inc. (817-732-4000) leased 15,000 sq.ft. to Leather Direct, 3,800 sq.ft. to Busy Body Fitness Center and 3,567 sq.ft. to Cargo Furniture at Lakepointe Crossing in Lewisville, TX.
Real Estate Professionals Making News Mid-America Real Estate Corp. (630-954-7300) announces that Andrew Witherell joined the company as a vice president. Witherell brings more than 15 years of experience from Bresler’s, White Hen Pantry and most recently Dominick’s Finer Foods. As vice president for Dominick’s, he implemented the accelerated expansion of the "Fresh Store" concept. He currently has the exclusive to sublease five Dominck’s properties. He is also exclusively representing Re-store in Chicago by marketing five Menard’s surplus properties. Trademark, Inc. (817-870-1122) announces that Susan Ridley has been named director of leasing. Prior to joining Trademark, Ridley served as senior vice president with the commercial retail division of The Weitzman Group, where she specialized in retail tenant representation, shopping center leasing, sales and development and sales consultation. As director of leasing at Trademark, Ridley will oversee the leasing of all new and existing properties. The company also announces that Jeff Allen has been promoted to vice president, asset management. Allen joined the company in 1998. Prior to joining Trademark, Allen served as president of Huff, Brous, McDowell and Montesi Management, Inc. where he oversaw nearly 6.5 million sq.ft. of commercial real estate in the Dallas-Fort Worth, TX market. Capital Lease Funding, L.P. (212-217-6300) announces the appointment of Robert Blanz as vice president, structured programs. In his new position at CLF, Blanz will be responsible for preparing loan pools for securitization, rating agency and bond investor relations, establishing underwriting criteria for new credit loan programs, assist CLF borrowers with credit tenant transactions and buying and selling net leased properties. Prior to joining CLF, Blanz was director of structured finance ratings in the real estate finance department at Standard & Poor’s. 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. The Macerich Company (310-394-6000) announces the promotion of senior leasing manager Jeff Probasco to regional vice president-leasing/Southwest region. In his new role, Probasco will be directly responsible for all leasing-related issues at Macerich’s four regional malls in AR, OK and TX.
Mergers & Acquisitions CSK Auto Corporation (602-265-9200) announces that its wholly owned subsidiary, CSK Auto, Inc., completed its acquisition of PACCAR Inc.’s subsidiary which operates 194 stores under the trade names of Grand Auto Supply and Al’s Auto Supply in AK, CA, ID, NV, OR and WA. These stores produced sales of approximately $225 million during the past 12 months. CSK Auto, Inc. paid approximately $143.2 million in cash and stock for PACCAR’s subsidiary. CSK funded the purchase through its senior credit facility. The acquisition of the 194 stores solidifies CSK’s position as the leading retailer of automotive aftermarket parts and accessories in the Western U.S. With the completion of the acquisition, CSK operates more than 1,100 stores in 17 states trading as Checker, Schuck’s, Kragen and Big Wheel/Rossi. Safeway Inc.’s (925-467-3000) and Randall’s Food Markets, Inc.’s shareholders recently approved the merger of Randall’s with Safeway. Randall’s is a privately-held, TX-based supermarket chain currently operating 116 stores in the Houston, Dallas/Fort Worth and Austin markets. The company has annual sales of $2.6 billion. Nathan’s Famous, Inc. (516-338-8500) and Miami Subs Corporation recently completed its merger. Miami Subs will continue operating as a wholly owned subsidiary of Nathan’s. Miami Subs currently operates 15 company-owned units and 162 franchised units in Puerto Rico, Peru and the Dominican Republic. Miami Subs also has obtained the co-branding rights of Arthur Treachers Fish & Chips. Both Nathan’s and Miami Subs plan to seek opportunities to develop each concept separately as well as through co-branding. New York Bagel Enterprises, Inc. (405-624-3700) recently entered into an agreement with Atomic Burrito, Inc., formerly Western Country Clubs, Inc., terminating the Joint Venture Agreement whereby the parties were to convert New York Bagel restaurants in Atomic Burrito units. The termination agreement also terminates the letter of intent between the two companies regarding the potential combination of the companies. The termination agreement also provides for the sale of New York Bagel Enterprises’ minority interest in the two developed joint venture Atomic Burrito units to Atomic Burrito, subject to financing. New World Coffee-Manhattan Bagel Inc. (732-544-0155) recently signed a letter of intent to acquire New York Bagel Enterprises, Inc. The purchase would strengthen the position of New World as the second largest company in the retail bagel industry, with approximately 390 stores in 33 states coast-to-coast. Under terms of the letter of intent, New World would add 15 franchised and 26 company-owned stores to the Manhattan Bagel system. The stores currently operate under the New York Bagel Enterprises and Lots A’ Bagels names. The stores that would be added are located in eight states extending from AL to CO and gives Manhattan Bagel entry into the new markets of AR, KS, ND, OK and TN. www.nwcb.com
Who’s Opening & Where Lowe’s Companies (336-658-4223) plans to open a 135,000 sq.ft. home improvement store in Danvers, MA and a 135,000 sq.ft. store in North Attleboro, MA. Regal Cinemas (423-922-1123) plans to open a 20-screen movie theater at Augusta Exchange Shopping Center in Augusta, GA. Nordstrom (206-628-2111) plans to open a 25,000 sq.ft. Nordstrom Rack store at NorthTown Mall in Spokane, WA. www.nordstrom.com Barnes & Noble (212-633-3300) plans to open a 28,000 sq.ft. store at Oglethorpe Mall in Savannah, GA during April 2000. Jacobson Stores Inc. (517-764-6400) plans to relocate its store on East Grand River in East Lansing, MI to an anchor position at Meridian Mall. The store will occupy a two-level, 80,000 sq.ft. existing space and is expected to open during Fall 2000. The company currently operates 24 stores in MI, OH, IN, KY, KS and FL. The Great Atlantic & Pacific Tea Company (201-573-9700) plans to open a Food Emporium store in Greenwich, CT and a Waldbaums in Rocky Point, NY. Weis Markets (717-286-4571) recently opened a 53,088 sq.ft. supermarket in Flanders, NJ and is planning to open a store in Hackettstown, NJ. The company currently operates 162 stores in MD, NJ, NY, PA, VA and WV. Outback Steakhouse, Inc. (813-282-1225) and Fleming’s Prime Steakhouse recently reached an agreement in principle to jointly develop Fleming’s Prime Steakhouse and Wine Bars worldwide. Fleming’s is an upscale steakhouse featuring prime cuts of meat and an extensive selection of wines. The joint venture will purchase two existing Fleming’s restaurants and a third scheduled to open next month. Three additional units currently under development will also be purchased after the third restaurant has been open for business for 15 months. Fleming’s was founded by Paul Fleming and Bill Allen. Fleming is the founder of P.F. Chang’s China Bistro and has also helped develop seven other restaurants. Fleming also operated Ruth’s Chris Steakhouse franchise restaurants in AZ, CA and HI. Most recently, Allen was CEO of La Madelaine French Bakery and Cafe during its growth from five to sixty locations. Allen will have responsibility for day-to-day management of the joint venture. S&K Famous Brand Menswear (804-346-2500) plans to open a 4,530 sq.ft. store at Fairplain Plaza in Benton Harbor, MI next month. Friedman’s Inc. (912-233-9333) opened 60 jewelry stores during its fiscal year which ended September 30. The openings bring its store count to 631 units trading as Friedman’s and Crescent in 27 states. The company’s power strip center expansion strategy, which consists of opening stores in shopping centers anchored by major discount retailers such as Wal*Mart or Target, provides it with an abundance of potential store locations and future growth opportunities. Using the number of Wal*Mart stores in a geographic region as a proxy for potential growth opportunities for Friedman’s and Crescent, the company believes that over 1,900 potential locations exist in the 27 states they operate. Costco Wholesale (425-313-6360) plans to enter the TX market with a 155,000 sq.ft. store at Cityview Lake Park in Fort Worth, TX. The store is expected to open during Summer 2000 as part of the company’s nationwide goal of opening as many as 35 stores in 30 markets, including as many as 10 in the Dallas-Fort Worth, TX metroplex. The company also has a site under contract in Plano, TX and is scouting Houston for sites. Maggiano’s Little Italy (972-770-9373) plans to open a 13,000 sq.ft. restaurant at Post Oak Center in Houston, TX during Spring 2000. Brand Names Inc. (716-693-2511) recently opened a 30,000 sq.ft. store at a former Sun TV and Appliance store in Amherst, NY. The store is the largest in the chain and replaces a 12,000 sq.ft. store located down the street. The new store also features the company’s fourth Furniture Gallery, a 7,000 sq.ft. "store-within-a-store." The company is planning to open a 20,000 sq.ft. store at Delaware Consumer Square in Buffalo, NY next month. That store will feature a 3,000 sq.ft. Furniture Gallery store. Space Place Alabama Opelika- Pepperell Corners is anchored by Wal*Mart,
Lowe’s, Winn-Dixie, CVS, Fashion Bug and Goody’s. The 306,224 sq.ft.
project has space available for lease. Demographics include a five-mile population of
30,364 earning $43,122 as the average household income. Florida Coconut Grove- Streets of Mayfair is anchored by Regal
Cinemas, Planet Hollywood, Borders Books and Limited/Bath and Body. The project
has space available for lease. Demographics include a three-mile population of 129,787
earning $53,616 as the average household income. In Palm Bay- Palm Bay
Plaza is anchored by Publix, T.J. Maxx, Kmart and Eckerd. The 260,000
sq.ft. project has space available for lease. Demographics include a three-mile population
of 58,418 earning $35,382 as the average household income. Illinois Bloomingdale- Bloomingdale Square is anchored by Michaels
Arts & Crafts, Toys ‘R Us and Linens ‘N Things. The project,
which is located adjacent to Stratford Square Mall, has a 10,143 sq.ft. end-cap
space available for lease. In Chicago- Cicero Annex is anchored by
Party City, Krause’s Sofas and Catherine’s Stores. The project has
spaces from 3,000 sq.ft. to 26,000 sq.ft. available for lease. In Hanover Park-
Tradewinds Center is anchored by Dominick’s Finer Foods, Value City
Furniture and MC Sports. The project has spaces from 1,990 sq.ft. to 9,300
sq.ft. available for lease. In Hillside- Westpoint Center is anchored
by Menard’s Home Improvement, Loew’s Theaters, Harlem Furniture and CarMax.
The project has spaces from 989 sq.ft. to 12,000 sq.ft., as well as three outlots,
available for lease. In Peoria- University Plaza is anchored by Thompson’s
Food Basket, Dunham’s Sports and Hancock Fabrics. The project has a 46,520
sq.ft. build-to-suit endcap space as well as an outlot available for lease. In Westmont-
Westmont Village is anchored by Eagle Country Market and Walgreen’s.
The project has spaces from 1,000 sq.ft. to 20,000 sq.ft. available for lease. Rhode Island Lincoln- Lincoln Mall is anchored by Kmart, Super
Stop & Shop, The Gap, Walden Books, Kay*Bee Toys, CVS and GNC. The 500,000
sq.ft. project has spaces from 1,500 sq.ft. to 25,000 sq.ft. available for lease.
Demographics include a five-mile population of 91,233 earning $60,247 as the average
household income. Washington Lynnwood- Alderwood Towne Centre is anchored by Marshall’s,
Gateway Country Store and Modern Woman. The 105,436 sq.ft. project has spaces
from 1,704 sq.ft. to 25,000 sq.ft. available for lease. Food Tenants Expanding Sybra Inc. trades as Arby’s at 195 locations in CA, FL,
MD, MI, NJ, PA, TX, VA and WV. The fast food restaurants, specializing in roast beef
sandwiches, occupy spaces of 2,500 sq.ft. to 4,000 sq.ft. in downtown store fronts,
freestanding facilities, regional malls, power and specialty centers. Preferred anchors
include Kmart, T.J. Maxx, Target, Wal*Mart and department stores. Growth
opportunities are sought in the existing markets. Preferred demographics include a
population of 30,000 within two miles earning $35,000 as the average income. Leases
running 10 years are typical. The company is the second largest Arby’s franchisee. Edo Japan operates 99 locations in AZ, CA, CO, FL, HI, ID, MD, NM,
NV, OR, TX, UT and WA. The Japanese fast food restaurants occupy spaces of 400 sq.ft. to
800 sq.ft. in power centers and regional malls. Plans call for six openings in the coming
18 months. Expansion will take place in HI. The company is franchising, Mayan Empire trades as Tikal at one location in CA. The
theme restaurant, featuring "Mexicaribbean" food in a Mayan setting, is seeking
spaces of 10,000 sq.ft. to 30,000 sq.ft. in freestanding facilities. Growth opportunities
are sought in major metropolitan markets nationwide. Dairy Queen Corporate Stores, Inc. trades as Dairy Queen at
60 locations in KY and southern IN. The restaurants occupy spaces of 3,300 sq.ft. in
freestanding facilities and power centers. Preferred anchors include Target and Wal*Mart.
Plans call for seven openings in the coming 18 months. Expansion will take place in the
existing markets. Leases running 10 to 15 years are typical. Pizza USA Management, Inc. trades as Pizza USA at 11
locations in AZ, FL, IA, KS and KY. The pizza restaurants occupy spaces of 950 sq.ft. in
outlet centers and regional malls. Plans call for two openings in the coming 18 months.
Expansion will take place nationwide. Leases running 10 years are typical. Chinese Gourmet Express operates 56 locations nationwide. The
Chinese restaurants occupy spaces of 750 sq.ft. to 850 sq.ft. in regional malls. Plans
call for at least 20 openings in the coming 18 months. Expansion will take place
nationwide. Leases running 10 years are typical. Lead Sheet Truck Options Automotive The seven-unit chain operates locations in FL, GA and MD. The stores, selling aftermarket accessories for pick up trucks, sport utility vehicles and vans, occupy spaces of 3,000 sq.ft. to 7,200 sq.ft. in freestanding facilities, power and strip centers. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place in the Southeastern region. Preferred demographics include a population of 60,000 within five miles earning $35,000 as the average income. The company is franchising. May’s Drug Stores Inc. Drug Store The 38-unit chain operates locations in MO and OK. The drug stores occupy spaces of 16,000 sq.ft. to 20,000 sq.ft. in freestanding facilities and strip centers. Plans call for as many as six openings in the coming 18 months. Expansion will take place in the existing markets. Conn Appliance Electronics The 29-unit chain operates locations in LA and TX. The stores, selling consumer electronics and appliances, occupy spaces of 22,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for five openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 150,000 within three miles earning $40,000 as the average income. Leases running six years are typical. Greater Huntington Theatre Entertainment The four-unit chain operates locations in WV. The movie theaters occupy spaces of 40,000 sq.ft. in entertainment, power and specialty centers. Growth opportunities are sought in KY, OH and WV. Preferred demographics include a population of 100,000 within 10 miles earning $34,000 as the average income. Leases running 20 to 30 years are typical. Hoyts Cinemas Ltd. Entertainment The 114-unit chain operates locations in CT, MA, MD, ME, NH, NJ, NY, PA, RI, VA, VT and WV. The movie theaters occupy spaces of 35,000 sq.ft. to 75,000 sq.ft. in freestanding facilities, regional malls, entertainment and power centers. Plans call for eight openings (100 screens) in the coming 18 months. Expansion will take place in the Northeastern region. Preferred demographics include a population of 200,000 within seven miles earning $60,000 as the average income. Leases running 20 years are typical. Namco Cybertainment, Inc. Entertainment The 316-unit chain operates locations nationwide. The concept, offering game rooms and coin-operated rides, occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in regional malls, entertainment and power centers. Plans call for 25 openings in the coming 18 months. Expansion will take place nationwide. Leases running five to ten years are typical. The company is also seeking space in strip centers for its newest concept Nickel Fun. United Artists Theaters Circuit Entertainment The 315-unit chain operates locations nationwide. The movie theaters occupy spaces of 35,000 sq.ft. to 80,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls, entertainment, power and strip centers. Plans call for 15 openings in the coming 18 months. Expansion will take place in CO, NM, TX, the East Coast and the West Coast. Preferred demographics include a population of 150,000 within five miles earning $40,000 as the average income. Leases running 20 to 25 years are typical. Fast Frame USA Inc. Home Decor The 191-unit chain operates locations in AZ, CA, CO, FL, GA, IL, KS, MN, NE, NC, SC, UT, VA and WA. The stores, offering custom framing, art work and accessories, occupy spaces of 1,500 sq.ft. in strip centers. Plans call for as many as 60 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running five years, with options, are typical and the company is franchising. Frames Unlimited, Inc. Home Decor The 38-unit chain operates locations in MI, IN and OH. The stores, offering custom framing, occupy spaces of 2,500 sq.ft. in strip 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 50,000 within three miles earning $60,000 as the average income. Leases running five years are typical. Bellini Juvenile Designer Furniture Home Furnishings The 54-unit chain operates locations nationwide. The stores, selling upper-end furniture and accessories for infants, occupy spaces of 3,000 sq.ft. to 4,000 sq.ft. in downtown store fronts, freestanding facilities, power and strip centers. Plans call for 18 openings in the coming 18 months. Expansion will take place in major metropolitan markets nationwide. Leases running 10 years are typical and the company is franchising. Mattress Furniture Liquidators Home Furnishings The 13-unit chain operates locations in MN. The stores, selling beds and mattresses, occupy spaces of 3,500 sq.ft. to 5,000 sq.ft. in power and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. Leases running five to ten years are typical. Payless Cashways, Inc. Home Improvement The 150-unit chain operates locations in AZ, CA, CO, IL, IN, IA, KS, KY, MN, MO, NE and NM. The home improvement stores occupy spaces of 40,000 sq.ft. in freestanding facilities. Plans call for nine openings in the coming 18 months. Expansion will take place within the existing markets. Leases running five to ten years are typical and the company prefers a vanilla shell. Vista Paint Company Home Improvement The 40-unit chain operates locations in Southern CA. The stores, selling paints, occupy spaces of 5,000 sq.ft. to 8,000 sq.ft. in freestanding facilities, specialty and strip centers. Plans call for as many as four openings in the coming 18 months. Expansion will take place in AZ, NV and Southern CA. Leases running five years, with options, are typical. New York Jewelry Inc. Jewelry The 20-unit chain operates locations in AL, FL, GA, IL, MS, NC, OH, SC, TX and VA. The jewelry stores occupy spaces of 1,000 sq.ft. to 1,800 sq.ft. in regional malls. Plans call for as many as eight openings in the coming 18 months. Expansion will take place within the existing markets. Virgin Entertainment Group Music The 20-unit chain operates locations nationwide. The music stores occupy spaces of 20,000 sq.ft. to 60,000 sq.ft. in downtown store fronts, entertainment centers and super regional malls. Plans call for 10 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 500,000 within five miles earning $45,000 as the average income. Leases running 10 years are typical. Cole Vision Corp. Optical The 847-unit chain operates locations nationwide. The optical stores occupy spaces of 1,000 sq.ft. to 1,200 sq.ft. in strip centers. Plans call for 50 openings in the coming 18 months. Expansion will take place nationwide. Leases running five years are typical. Marty Shoes Inc. Shoes The 82-unit chain operates locations in CT, FL, NJ, NY and PA. The shoe stores occupy spaces of 4,000 sq.ft. in freestanding facilities, outlet, power, specialty and strip centers. Plans call for 25 openings in the coming 18 months. Expansion will take place in CT, NJ and NY. Preferred demographics include a population of 50,000 within five miles earning $75,000 as the average income. Leases running 10 to 20 years are typical. Hearx Inc. Specialty The 60-unit chain operates locations in CT, FL, NJ, NY, PA and VA. The stores, offering hearing aid and hearing tests, occupy spaces of 2,000 sq.ft. in downtown store fronts and strip centers. Plans call for six openings in the coming 18 months. Expansion will take place in the existing markets. Associated Wholesalers Inc. Supermarket The 10-unit chain operates locations in DE, MD, NJ, NY and PA. The supermarkets occupy spaces of 20,000 sq.ft. to 50,000 sq.ft. in freestanding facilities and strip centers. Plans call for seven openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical. Fry’s Food Stores of Arizona, Inc. Supermarket The 93-unit chain operates locations in AZ. The supermarkets occupy spaces of 52,000 sq.ft. to 62,000 sq.ft. in freestanding facilities. Plans call for the opening of four units in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 25,000 within three miles earning $35,000 as the average income. Leases running 20 years are typical. Golub Corp. Supermarket The 94-unit chain operates locations in CT, MA, NY, PA and VT. The supermarkets occupy spaces of 38,000 sq.ft. to 80,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in CT, MA, NH, NY, PA and VT. Leases running 20 years are typical. Winn-Dixie Stores, Inc. Supermarket The 1,178-unit chain operates locations in AL, FL, GA, IN, KY, LA, MS, NC, OH, OK, SC, TN, TX and VA. The supermarkets occupy spaces of 45,000 sq.ft. to 60,000 sq.ft. in freestanding facilities and strip centers. Plans call for 150 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 30,000 within three miles earning $30,000 as the average income. Leases running 20 years are typical. Plantscape, Inc. Temporary Tenant The 25-unit chain operates locations in MD, MI, NY, OH, PA, VA and Washington, D.C. The stores, selling Christmas ornaments, trees, lights and decorations, occupy spaces of 2,000 sq.ft. to 6,000 sq.ft. in regional malls, outlet and power centers. Plans call for 30 openings in the coming 18 months. Expansion will take place in the Midwestern and Northeastern regions. Leases running three months are typical. Sources of Financing J.P. Morgan Capital Inc. (312-541-3630) recently provided $16.8 million in permanent mortgage financing for Alpine Commons Shopping Center in Wappingers Falls, NY. The Ackerman-Ziff Real Estate Group, LLC originated the loan. The 209,950 sq.ft. project is anchored by Stop & Shop and AC Moore Arts & Crafts. The term of the loan for 10 years with a 30-year amortization. The company also recently provided $7.61 million in permanent mortgage financing for Frontier Plaza Shopping Center and Frontier Village Mobile Park in Carson City, NV. Financial Development Corp. originated the loan. The term of the loan is 10 years with a 25-year amortization. General Growth Properties, Inc. (312-960-5000) recently completed a $700 mortgage financing of four wholly-owned malls and five malls that are co-owned with Ivanhoe, Inc. The non-recourse loan has an initial three-year term and two no cost one-year extension options, for a total available term of five years. The loan bears interest at a variable rate equal to approximately 110 basis points over 30-day LIBOR, or an initial rate of 6.48%. All of the loan proceeds plus approximately another $38 million were paid to Lehman Brothers to reduce an $833 million loan that General Growth obtained in 1998 to acquire the nine malls. The company also obtained a new unsecured $95 million loan from Lehman Brothers in order to retire the balance of the $833 million loan. The repayment of the entire secured loan, Lehman Brothers returned to General Growth a warrant to issue up to million shares of General Growth common stock. Lehman Brothers received the warrant as supplemental collateral when it extended the due date of the loan until October 1, 1999. www.generalgrowth.com L.J. Melody & Company (713-787-1900) recently arranged fixed-rate financing in the amount of $9.5 million for Leeco Shopping Center Portfolio in San Antonio, TX. JP Morgan provided the funding on behalf of the borrower. The portfolio consists of three San Antonio shopping centers totaling over 149,000 sq.ft. Major tenants include Eckerd’s, Dollar General and Gattiland. Southern Pacific Bank (617-559-0467) is a nationwide lender specilaizing in commercial and multifamily loans from $50,000 and up to "A" through "C" borrowers. The company specializes in deals with "hair" on the applicant and/or the property. |