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Issue Number 35
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The Dealmakers Issue Number 35 for the week of September 24, 1999. Pet Supply Retailers Expanding Nationwide Petland, Inc. trades as Petland at 165 locations in 29
states. The full-service pet centers occupy spaces of 7,000 sq.ft. in power and strip
centers. Preferred anchors include Target, Wal*Mart and supermarkets. Plans call
for at least 20 openings in the coming 18 months. Expansion will take place nationwide.
Preferred demographics include a population of 100,000 within five miles earning at least
$35,000 as the average income. Leases running five years are typical and the company,
which is franchising, cites Petco and PetsMart as competition. Petland Discounts operates 108 locations in CT, NJ and NY. The pet
supply stores occupy spaces of 2,500 sq.ft. in downtown store fronts and strip centers.
Preferred anchors include Kmart and supermarkets. Plans call for 12 openings in the
coming 18 months. Expansion will take place in the existing markets. Leases running 12
years are typical. Petco Animal Supplies, Inc. trades as Petco at 485 locations
nationwide. The stores, selling pet food and supplies, occupy spaces of 15,000 sq.ft. in
freestanding facilities, power and strip centers. Preferred co-tenants include Marshalls,
T.J. Maxx, Target, Michaels and Toys ‘R Us. Plans call for 75 openings in
the coming 18 months. Expansion will take place nationwide. Preferred demographics include
a population of 100,000 within three miles earning $40,000 as the average income. Leases
running 15 years are typical and the company cites PetsMart as competition. Pet Food & Supplies, Inc. trades as Pet People at eight
locations in CA. The pet supply stores occupy spaces of 3,000 sq.ft. to 3,500 sq.ft. in
strip centers. Growth opportunities are sought in the existing market. Pet Supermarket operates 70 locations in AL, CA, FL, GA, NV and NC.
The pet supply stores occupy spaces of 4,500 sq.ft. to 10,000 sq.ft. in freestanding
facilities, power and strip centers. Preferred anchors include Home Depot and
supermarkets. Plans call for 20 openings in the coming 18 months. Expansion will take
place in FL, GA, NC, AL and SC. New Construction Felenstein Koniver Stern Realty 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. Colonial Properties Trust plans to break ground this month on Colonial
Promenade Madison in Madison, AL. The $10 million project, being developed on 15 acres
of land at Highway 72 and Hughes Road, will be anchored by a 44,000 sq.ft. Publix
Supermarket. The shopping center will also include two additional anchor tenants as
well as 30,000 sq.ft. of small shop space. A Fall 2000 opening is planned. Erwin L. Greenberg Commercial Corporation and The Fedder Company
recently broke ground on The Shops at Breton Bay on a 20-acre parcel of land in
Leonardtown, MD. The project, which has over 1,200 feet of frontage and a signalized
entrance on MD Route 5, is being developed in three phases. The 71,000 sq.ft. phase I is
anchored by a 44,000 sq.ft. SuperFresh Supermarket and will include 27,000 sq.ft.
of in-line stores and four outparcels. Phase II proposes a 22,000 sq.ft. additional anchor
and a future phase III is planned. The center will feature a brick facade, patterned after
the various buildings in downtown Leonardtown, with colorful awnings individually fronting
the in-line stores. A Spring 2000 opening is planned. WI developer William Pierce, president of Viking Village Foods,
is currently developing a $16 million shopping center at the intersection of 33-23 and H
in Reedsburg, WI. The project will initially be anchored by a 70,000 sq.ft. True Value
Superstore, an 80,000 sq.ft. Viking Village Foods grocery store, a service
station with quick-lube and car washing capabilities and a taco restaurant on an
outparcel. The True Value and service station are expected to open during November. The
restaurant is expected to break ground during Fall and be completed by the end of the
year. Full development of the entire 23-acre project is expected to take as long as five
years. In addition to the construction of the stores, Pierce is also spending $1.3 million
for water and sewer connections that will become public water and sewer. Financing for the
project is being provided by National Exchange Bank. The Sansone Group recently broke ground on Jefferson County
Plaza in Jefferson County, MO. The $25 million project being developed on 36.5 acres
of land on Vogel Road near I-55 and Richardson Road, will be anchored by a 132,000 sq.ft. Home
Depot and a 126,000 sq.ft. Target. Approximately 71,000 sq.ft. of small-shop
space will also be developed. The center is expected to open during Summer 2000. No
external financing was required as the money is coming from the company’s partner, Developers
Diversified Realty Corp. Buckley Shuler Properties plans to break ground during Spring 2000
on a 114,000 sq.ft. shopping center located near West Oaks Mall on West Colonial
Drive in Ocoee, GA. The 12.5 acre project will be anchored by Best Buy, Michael’s
Arts & Crafts and PetsMart. The company is currently developing International
Center at Kirkman Road and International Drive in Atlanta, GA. Developers Diversified Realty Corporation is currently developing Springfield
Commons at the intersection of Holland-Sylvania Road and Airport Highway, just off
I-475, in Toledo, OH. The 300,000 sq.ft. project will be anchored by Kohl’s
Department Store, Babies ‘R Us, a 35,000 sq.ft. Bed Bath & Beyond and
a 31,080 sq.ft. Gander Mountain. A Spring 2000 opening is planned. DDR and Poag
& McEwen Lifestyle Centers recently broke ground on Deer Park Town Center
in Deer Park, IL. The 500,000 sq.ft. lifestyle center, being developed on 86 acres of land
fronting Highway 12, will be anchored by Banana Republic, Williams Sonoma, Restoration
Hardware and Ann Taylor. Negotiations are underway with a 16 to 20 screen movie
theater and several restaurants and specialty food concepts. A Fall 2000 opening is
planned and Poag & McEwen will manage the project. Buyers & Sellers API Development Company has the listing to sell an 80-acre parcel
of land at the intersection of Gloster Street and Barnes Crossing Road in Tupelo, MS. The
site is adjacent to a Wal*Mart Supercenter, Goody’s and Sam’s Club anchored
power center anchored. The site is also across the street from the 900,000 sq.ft. Mall at
Barnes Crossing. The parcel is divisible to as small as one acre. The property is the last
large parcel available for development in the Barnes Crossing overlay. Retail sales in the
area exceed $2 billion annually. CC Realty Advisors, Inc. is in the market to acquire distressed or
semi-distressed neighborhood and community centers in the South Central, Southeastern,
Midwestern and Western regions. Preferred projects should have GLAs of at least 50,000
sq.ft. The company’s goal is to purchase $100 million worth of value-added centers
within the coming 12 to 18 months. Value will be added through repositioning,
rehabilitating and/or retenanting the centers. Belle Terre Properties represents a client in the market to acquire
shopping centers in AL, FL and LA. Preferred properties should have GLAs of 75,000 sq.ft.,
be anchored by a supermarket and drug store with credit tenants occupying 65% of total
gross leasable area, have strong tenant sales and show a cash on cash return of 11% in the
first year. Simon Property Group, Inc. recently completed the initial phase of
its acquisition of a regional mall portfolio from New England Development Company. A joint
venture led by Simon acquired 10 malls and Simon assumed management responsibilities from
NED’s affiliated management company, WellsPark Management LLC. The joint venture is
owned by Simon, 49%, JP Morgan Investment Management’s Strategic Property Fund, New
York State Teachers Retirement System and Teachers Insurance and Annuity Association. The
acquired properties include Apple Blossom Mall in Winchester, VA; Atrium Mall in Chestnut
Hill, MA; Auburn Mall in Auburn, MA; Cape Cod Mall in Hyannis, MA; Crystal Mall in
Waterford, CT; Greendale Mall in Worcester, MA; Northshore Mall in Peabody, MA; Solomon
Pond Mall in Marlborough, MA; Square One Mall in Saugus, MA and The Mall of New Hampshire
in Manchester, NH. Simon expects to complete the acquisition of four additional NED malls
by year-end. They include Arsenal Mall in Watertown, MA; Emerald Square in North
Attleboro, MA; Liberty Tree Mall in Danvers, MA and The Mall at Rockingham Park in Salem,
NH. The portfolio aggregate 10.6 million sq.ft. and the purchase price for the entire
portfolio was $1.7 billion. Rein & Grossoehme represented DG Plaza Associates in the sale
of Dobson & Guadalupe Plaza in Mesa, AZ. The 35,246 sq.ft. "shadow anchor"
project was sold to Kashat & Gorges, Inc. for $4.15 million. Grubb & Ellis/Paramount Properties has the listing to sell a
5,196 sq.ft. restaurant building in Muskegon, MI. The site, which also contains a 2,268
sq.ft. basement, is located adjacent to Meijer’s, Art Van Furniture and JC Penney. Ramco-Gershenson Properties Trust recently entered into a joint
venture with an affiliate of Investcorp International, Inc. to acquire existing
shopping centers, which present value-added opportunities, totaling $125 million. The
joint venture will target well-located centers having GLAs of at least 100,000 sq.ft. and
located in the Mid-Atlantic, Midwestern and Northeastern regions. Under terms of the joint
venture, which is structured as a Limited Liability Company, Investcorp will own 75% of
the equity and RPT will own 25%. The anticipated property leverage is approximately 70%.
In addition, Ramco-Gershenson, Inc., a subsidiary of Ramco-Gershenson Properties Trust,
has been retained for asset management, property management and leasing based on
agreements with the joint venture and will also be responsible for the identification of
potential acquisitions. The joint venture between RPT and Investcorp was arranged by the
real estate investment banking group of Deutsche Banc Alex.Brown. Upon closing, the joint
venture acquired two shopping centers from RPT for approximately $31 million. The two
centers were Chester Springs Shopping Center, a 224,000 sq.ft. project in Chester, NJ and
Rivertowne Square, a 137,000 sq.ft. project in Deerfield Beach, FL. Kin Properties is selling a NNN leased Footlocker store in Fort
Lauderdale, FL. The income until June 30, 2000 is $425 per month. The income after that
for seven years is $40,000, with a five-year option at $48,000 per year. The asking price
is $395,000. Aminoff & Co. has the listing to sell a Winn-Dixie supermarket
in TX. The tenant has a NN lease with the landlord responsible for roof and structure.
Annual rent is $472,000 against one percent of gross. The asking price is $5.7 million and
financing is available. The company also has the listing to sell a Kmart anchored shopping
center near Stockton, CA. The 123,736 sq.ft. project has an NOI of $838,183. The asking
price is $3.75 million and financing is available through the assumption of an approximate
$5 million loan that has a 7.38% interest rate and a 25-year self amortizing schedule. Colliers International has the listing to sell Sun Valley Shopping
Center in San Diego County, CA. The 50,464 sq.ft. project is anchored by Sun Valley
Market. Upside potential exists. The asking price is $2.895 million. Who’s Opening & Where Chick-fil-A (404-765-8000) plans to open a freestanding restaurant on an outparcel of Premiere Place Shopping Center in Montgomery, AL during November. Circuit City Stores (804-527-4000) is planning to open a 28,464 sq.ft. store in College Township, PA. Kohl’s Department Stores (414-703-7000) recently entered the St. Louis, MO market with six stores, four of them former Venture Stores locations. Kohl’s plans to open additional stores in Arnold, MO during Spring 2000 and in Fenton, MO during October 2000. Beyond that, growth in the St. Louis market will depend on sales. Whole Foods Market Inc. (713-661-7753) is planning to open stores at Cherry Creek North and Highlands Ranch in Denver, CO. Lowe’s Companies, Inc. (336-658-4223) plans to acquire Mill Creek Lumber and Supply Co. in Tulsa, OK and develop a 150,000 sq.ft. store on the 14-acre property. The store is expected to open during Fall 2000. The company also plans to enter the South FL market with three stores in Coral Springs, Oakland Park and West Palm Beach opening by Fall 2000. The company is seeking additional sites in the South FL market. The company also plans to expand its 85,000 sq.ft. store in Rock Hill, SC by 29,000 sq.ft. The expansion is expected to be completed by May 2000. Target (612-304-6099) plans to anchor a proposed shopping center in Fort Worth, TX with a SuperTarget store. No timetable on the development of the store has been announced. A typical SuperTarget occupies 170,000 sq.ft. The company is also planning to open a 128,500 sq.ft. store near Buckland Hills Mall in South Windsor, CT. However, before construction can begin the developer, Northern Hills Associates, needs to obtain site plan approval from the town’s planning and zoning boards and a permit from the wetlands commission. The store is an approved use for the town’s Gateway Development Zone. The company, which operates 881 stores in 44 states, recently entered the Northeastern region with stores in MA, NH and RI as part of its strategy to open as many as 70 stores this year. Musicland Stores Corp. (612-932-7700) plans to enter the Pittsburgh, PA market with a 35,000 sq.ft. store at Ross Park Mall. The store will occupy a former Service Merchandise location. The company is planning to open as many as six Media Play stores in the suburban Pittsburgh market in the coming few years and is scouting for locations in Monroeville, South Hills and Robinson. The typical freestanding Media Play store occupies 45,000 sq.ft. Discount Auto Parts (941-687-9226) plans to open four 6,800 sq.ft. stores in the Augusta, GA market during Fall. The company currently operates 577 auto parts stores in AL, FL, GA, LA, MS and SC, and may open two more stores in the Augusta market at a later date. Dillard’s (501-376-5200) plans to open a store in Palmdale, CA during November, its second in the state. A third location is expected to open at Lent Ranch Marketplace in Elk Grove, CA during 2002. The company is also scouting the downtowns of Folsom and Sacramento for possible store locations. Hooters (770-951-2040), through its franchisee Heartland Wings LLC, plan to open a Hooters Restaurant in Long Beach, CA during Fall. Noodles & Co. (303-444-1963) plans to open a 9,700 sq.ft. restaurant at Broomfield Marketplace in Broomfield, CO during November. It will be the company’s eighth location in CO and WI. Since 1995, the company has built about one restaurant per year and hopes to eventually open 15 total. The company serves noodles in a variety of ways from spicy Indonesian noodles to traditional macaroni & cheese. Prices range from $3 to $7 per bowl. Burlington Coat Factory (609-387-7800) plans to open a 68,331 sq.ft. store featuring Luxury Linens and Baby Depot at Security Square Mall in Baltimore, MD during Fall. Barnes & Noble (212-633-3300) plans to open a 26,400 sq.ft. bookstore at Valley River Center in Eugene, OR next month. Papa John’s Pizza (502-266-5200) recently opened a restaurant in Manteca, CA and is planing to open two units in Stockton, CA during November. The franchisee, P.J. Nor-Cal, that owns the stores has the rights to build 64 units in Northern CA and in Reno/Sparks, Carson City and Lake Tahoe, NV. Rural King (217-235-7101) recently opened a store at a former Pamida store and Eisner grocery store location at Rantoul Plaza Shopping Center in Rantoul, IL. The company, which operates stores in IL, IN, KY and TN, sells livestock feed, farm equipment parts, lawn mowers, workwear, clothing, housewares and toys. Roadhouse Grill Inc. (954-489-9699) plans to develop a 7,168 sq.ft. steakhouse at Manchester Village in Rock Hill, SC. www.roadhousegrill.com Max & Erma’s Restaurants (614-431-5800) is planning to open a restaurant at Hamilton Crossing Centre in Carmel, IN during early 2000. Consolidated Products (317-633-4100) plans to launch an aggressive expansion plans for its Steak N’ Shake restaurants in Southern FL. The company is seeking to acquire about 20 locations in the Miami-Dade, Broward and Palm Beach county markets. It expects to invest up to $34 million in land acquisitions. The company is looking to purchase land to develop into restaurants and lease back to restaurant operators. For each site, the company needs about 1.2 acres. In addition to stand-alone sites, the company will consider locating its restaurants on the grounds of malls or other big-box retail centers. Current plans call for the development of a 3,700 sq.ft. restaurant near Sawgrass Mills in Sunrise, and units in Coral Springs and West Palm Beach. The company currently operates 315 units, with about 60 locations in FL. About 250 stores are company-owned. The company’s goal is to be operating 600 stores by 2003. Rite Aid (717-761-2633) recently opened two stores in Sacramento, CA and is planning to open two more stores in Sacramento this month. The company also plans to begin construction on four more stores by the end of next month and has four additional lease deals pending. The company’s growth comes amidst rumors that it is looking to sell several hundred stores or may be a takeover target. Lease Signings Schostak Brothers & Company (248-262-1000) leased 7,238 sq.ft. to Gap/Gap Kids at Macomb Mall in Roseville, MI, Royal Properties, Inc. (914-237-3403) leased 2,200 sq.ft. to Dunkin’ Donuts at Lafayette Square in Bridgeport, CT; 1,000 sq.ft. to Subway at Airmont Town Center in Rockland County, NY and 4,500 sq.ft. to Just-A-Buck Stores at Wal*Mart Shopping Center in Rockland County, NY. Tedeschi Realty Corporation (617-871-6900) leased 7,000 sq.ft. to Family Dollar Stores at Tedeschi Plaza in Rockland, MA. Divaris Real Estate, Inc. (757-497-2113) leased 2,500 sq.ft. to Starbucks Coffee in Newport News, VA; 63,000 sq.ft. to Giant Food at Severna Park Marketplace in Severna Park, MD; space to Jack Quinn’s Irish Pub and Restaurant in downtown Norfolk, VA and 10,600 sq.ft. to Noodle Kidoodle and 4,900 sq.ft. to Silver Diner at Columbus Village East in Virginia Beach, VA. Harding & Associates (804-282-1590) leased 27,800 sq.ft. to Tractor Supply at a former Kroger store at College Square in Lexington, VA. Pace Properties, Inc. (314-968-9898) leased 45,000 sq.ft. to Best Buy Company at Mid Rivers Mall in St. Peters, MO and 14,989 sq.ft. to Bova Furniture and 6,100 sq.ft. to The Little Gym at Ballwin Plaza in St. Louis, MO. Walnut Capital Partners (412-374-0968) leased 10,000 sq.ft. to Banana Republic in Pittsburgh, PA. Grubb & Ellis (760-438-1333) leased 25,313 sq.ft. to Bally Total Fitness at Plaza Sorrento in San Diego, CA. Lead Sheet Clothestime Apparel The 11-unit chain operates locations nationwide. The stores, selling junior apparel, occupy spaces of 3,500 sq.ft. in entertainment centers and regional malls. Plans call for 25 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 100,000 within three miles earning $45,000 as the average income. Leases running five years are typical and the company prefers a vanilla shell. Retail Development Resources, Inc. Apparel The 50-unit chain operates locations throughout North America. The stores, selling women’s and children’s apparel, occupy spaces of 1,800 sq.ft. in downtown store fronts and regional malls. Preferred co-tenants include upscale retailers. Growth opportunities are sought in the Midwestern and Western regions. Genuine Parts Co. Automotive The 5,800-unit chain operates locations nationwide. The automotive parts stores occupy spaces of 5,000 sq.ft. to 8,000 sq.ft. in freestanding facilities. Preferred anchors include discount stores, home improvement stores and other do-it-yourself retailers. Plans call for 60 openings in the coming 18 months. Expansion will take place nationwide. Leases running five years are typical. Springs Industries Bed/Bath/Linens The 55-unit chain operates locations nationwide. The stores, selling bed linens, occupy spaces of 6,500 sq.ft. to 7,000 sq.ft. in outlet centers. Growth opportunities are sought nationwide. Half Price Books, Records, Magazines Books The 61-unit chain operates locations in AZ, CA, IN, IA, MN, OH, PA, TX, WA and WI. The stores, selling new and used books, magazines, records, tapes, videos, compact discs and software, occupy spaces of 8,000 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include Old Navy, Target, movie theaters and restaurants. Plans call for eight openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 100,000 within three miles earning $50,000 as the average income. Leases running 10 years are typical. Micro Electronics Computers The 15-unit chain operates locations in CA, CO, GA, IL, MA, NY, OH, PA, TX and VA. The computer stores occupy spaces of 30,000 sq.ft. to 40,000 sq.ft. in freestanding facilities, regional malls and strip centers. Growth opportunities are sought in AZ, FL, IL, IN, MA, MD, MI, MO, NJ, NY, NC, TX, VA, WA and Washington, D.C. Preferred demographics include a population of 200,000 within five miles earning $40,000 as the average income. Ameristop Development Co. Convenience Store The 105-unit chain operates locations in KY, IN, OH and VA. The convenience stores, which also sell gasoline, occupy spaces of 3,250 sq.ft. in freestanding facilities and strip centers. Plans call for six openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 15 years are typical. Tom Thumb Food Stores, Inc. Convenience Store The 15-unit chain operates locations in FL. The convenience stores, which also sell gasoline, occupy spaces of 2,400 sq.ft. in freestanding facilities. Plans call for as many as three openings in the coming 18 months. Expansion will take place in South FL. Community Distributors, Inc. Drug Store The 51-unit chain operates locations in NJ. The drug stores occupy spaces of 12,000 sq.ft. to 17,000 sq.ft. in freestanding facilities and strip centers. Preferred anchors include Marshalls, T.J. Maxx and supermarkets. Plans call for 12 openings in the coming 18 months. Expansion will take place in the existing market. Leases running 15 years are typical. 6th Avenue Electronics Electronics The seven-unit chain operates locations in NJ. The consumer electronics stores occupy spaces of 15,000 sq.ft. to 20,000 sq.ft. in freestanding facilities and end caps of strip centers. Preferred co-tenants include book stores, men’s apparel stores, home improvement stores and sporting goods stores. Plans call for as many as five openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 75,000 within three miles earning between $75,000 and $100,000 as the average income. Stone Amusement Co., Inc. Entertainment The seven-unit chain operates locations in KY, MS and TN. The family entertainment centers occupy spaces of 2,000 sq.ft. in regional malls. Growth opportunities are sought in AL, KY and TN. American Women Fitness Centers Fitness The six-unit chain operates locations in NJ. The health and fitness centers occupy spaces of 10,000 sq.ft. to 15,000 sq.ft. in strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in NJ and NY. Leases running 10 years are typical. General Novelty Ltd. Gifts The 165-unit chain operates locations nationwide. The stores, selling gifts, cards and novelities, occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in regional malls and strip centers. Plans call for six openings in the coming 18 months. Expansion will take place nationwide. The company prefers a vanilla shell. J.P. Crystal Inc. Gift The five-unit chain operates locations in FL. The stores, selling gifts and collectibles, occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in power centers and regional malls. Preferred anchors include department stores. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 300,000 within 15 miles earning $60,000 as the average income. Leases running 10 years are typical and the company prefers a vanilla shell. Mattress Giant Home Furnishings The 200-unit chain operates locations in DE, FL, IL, MD, MA, MN, MO, NH, NJ, PA, RI and TX. The stores, selling mattresses and bedding, occupy spaces of 4,000 sq.ft. to 6,000 sq.ft. in power centers. Preferred anchors include Best Buy, Circuit City and Pier 1. Plans call for 75 openings in the coming 18 months. Expansion will take place in CA, IL, MD, MA and VA. Preferred demographics include a population of 250,000 within 10 miles earning $45,000 as the average income. Leases running five years are typical. Ace Hardware Corp. Home Improvement The 5,500+-unit chain operates locations nationwide. The hardware stores occupy spaces of 10,000 sq.ft. to 12,000 sq.ft. in downtown store fronts, freestanding facilities, power and strip centers. Preferred anchors include Target and supermarkets. Growth opportunities are sought nationwide. Leases running five years, with options, are typical and the company is franchising. Minuteman Press International Printing The 890-unit chain operates locations in 45 states. The print shops occupy spaces of 1,000 sq.ft. to 1,400 sq.ft. in downtown store fronts and strip centers. Plans call for 60 openings in the coming 18 months. Expansion will take place throughout North America, the United Kingdom, South Africa and Australia. Leases running five years, with a five-year option, are typical and the company is franchising. Elder-Beerman Stores Shoes The 55-unit chain operates locations in IL, IN, MI, OH, PA and WV. The family shoe stores occupy spaces of 4,800 sq.ft. to 5,200 sq.ft. in power and strip centers. Preferred anchors include Marshalls, T.J. Maxx and women’s ready-to-wear stores, Plans call for as many as five openings in the coming 18 months. Expansion will take place within the existing markets. Preferred demographics include a population of 30,000 within five miles earning $50,000 as the average income. Leases running five to ten years are typical. Shoe Carnival Shoes The 130-unit chain operates locations in AL, AR, FL, GA, IL, IN, IA, KS, KY, MI, MS, MO, NC, OH, SC, TN, VA and WV. The family shoe stores occupy spaces of 12,000 sq.ft. in power and strip centers. Preferred anchors include Goody’s, Marshalls, Old Navy, T.J. Maxx, Target and Wal*Mart. Plans call for 50 openings in the coming 18 months. Expansion will take place in KS, LA, NE, OK and TX. Preferred demographics include a population of 50,000 within five miles earning $30,000 as the average income. Leases running 10 years are typical. J.R.B. Enterprises Inc. Specialty The 26-unit chain operates locations in FL. The stores, selling silk flowers and plants, occupy spaces of 1,500 sq.ft. to 1,800 sq.ft. in regional malls, outlet and power centers. Preferred anchors include Home Depot and furniture stores. Plans call for three openings in the coming 18 months. Expansion will take place in the existing market. Leases running three to five years are typical. Value Financial Services Inc. Specialty The 65-unit chain operates locations in AL, FL and TN. The pawn shops occupy spaces of 5,500 sq.ft. in freestanding facilities and strip centers. Preferred co-tenants include Payless Shoes and Rent-A-Center. Plans call for 35 openings in the coming 18 months. Expansion will take place AL, FL, MS and TN. Preferred demographics include a population of 50,000 within three miles earning $25,000 to $35,000 as the average income. Leases running five years are typical. Cosentino’s Price Chopper Supermarket The 15-unit chain operates locations in KS and MO. The supermarkets occupy spaces of at least 50,000 sq.ft. in freestanding facilities and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets. Vitamin Shoppe Industries Inc. Vitamins The 70-unit chain operates locations in CT, DE, MD, MA, NJ, NY, PA and VA. The stores, selling vitamins, minerals and nutritional supplements, occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in freestanding facilities. Preferred anchors include Barnes & Noble, Borders, Bed Bath & Beyond and Zany Brainy. Plans call for 60 openings in the coming 18 months. Expansion will take place in CT, FL, GA, MD, MA, NH, NJ, NY, PA, VA and Washington, D.C. Preferred demographics include a population of 200,000 within five miles earning $50,000 as the average income. Leases running 10 years, with options, are typical and the company prefers a vanilla shell. Retailers Announce August Sales Despite a rise in interest rates, the American consumer kept right on spending during the month of August (bless their little hearts) as shoppers prepared for the back-to-school and Autumn seasons. Many retailers were concerned that borrowing and spending would slow after the Federal Reserve raised interest rates twice this Summer in a preemptive strike against inflation. But while the Fed’s two rate hikes have unsettled investors and weighed down stocks, consumers, so far, have been unfazed. Overall, same-store retail sales increased 3.7% nationwide over the same period last year, according to data compiled by TeleCheck Services, Inc. Leading the way was the Southwest, where comp store sales increased 4.2%, followed by the Northeast at 3.9%, the Mid-Atlantic (3.8%), Southeast (3.8%), the Midwest (3.7%) and the West (3.4%). The following is a small sampling of retailers’ sales results for August. CVS Corporation (401-765-1500) reported that its August sales increased 15.7% to $1.311 billion, from $1.133 billion during August last year. Comparable store sales increased 12.4% for the month with pharmacy same store sales up 17.6% for the month. Total pharmacy sales represented 59% of total company sales in August. The company currently operates 4,091 stores in 24 states. www.cvs.com Intimate Brands, Inc. (614-415-7546) reported that net sales for August increased 17.4% to $274.4 million from $233.6 million last year. Comparable store sales increased 17% for the month. The company operates 868 Victoria’s Secret stores and 1,135 Bath & Body Works stores nationwide. www.victoriasSecret.com, www.intimatebrands.com S&K Famous Brands, Inc. (804-346-2500) reported that sales for August increased five percent to $10.4 million from $9.8 million last August. Comparable store sales were down one percent for the month. This month, the company plans to open five stores in Charlotte, NC; Columbus, OH; Tampa, FL; Saratoga, NY and Murfreesboro, TN. The company currently operates 234 menswear stores in 27 states. www.skmenswear.com ShopKo Stores, Inc. (920-497-2211) reported that its August sales increased 41.2% to $264.4 million from $187.3 million during August last year. Comparable store sales increased 6.1% for the month. The company currently operates 310 discount stores in 22 states, primarily in the Midwestern, Western Mountain and Pacific Northwest regions. www.shopko.com The Limited, Inc. (614-479-7000) reported that August sales increased 12% to $731.6 million from $664.4 million during August last year. Comparable store sales increased seven percent for the month. The company operates 3,033 stores trading as Express, Lerner New York, Lane Bryant, Limited Stores, Structure, Galyan’s and Henri Bendel. www.limited.com Sears, Roebuck and Co. (847-286-2500) reported that its total domestic store revenues for August decreased 4.7% to $2.15 billion from $2.25 billion during August last year. Comparable domestic store revenues increased 0.1% for the month. www.sears.com Michaels Stores, Inc. (972-409-1300) reported that sales for August increased 17% to $124.4 million from $106.8 million last August. Comparable store sales increased four percent for the month. The company currently operates 542 Michaels stores in 47 states, Canada and Puerto Rico and 83 Aaron Brothers stores along the West Coast. www.michaels.com The TJX Companies, Inc. (508-390-3000) reported that its August sales increased 11% to $692 million from $622 million during August last year. Comparable store sales increased five percent for the month. The company currently operates 621 T.J. Maxx stores, 491 Marshalls stores, 43 HomeGoods stores and 11 A.J. Wright stores in the U.S. In Canada, the company operates 94 Winners and in Europe, 44 T.K. Maxx stores. www.tjx.com Fred’s, Inc. (901-365-8880) reported that total sales for August increased 5.9% to $46.8 million from $44.2 million during August last year. Comparable store sales increased 1.7% for the month. The company operates 322 discount general merchandise stores in the Southeastern region. www.fredsinc.com BJ’s Wholesale Club, Inc. (508-872-2100) reported that its August sales increased 19.3% to $300 million from $251 million last August. Comparable store sales increased 6.9% for the month. The company operates 101 stores in the Eastern region. www.bjswholesale.com Charming Shoppes, Inc. (215-638-6955) reported that total sales for August increased 11% to $91 million from $82 million last August. Total sales include sales for the Modern Woman chain, which was acquired on August 2. Sales for comparable stores increased three percent for the month. The company operates 1,291 stores in 47 states trading as Fashion Bug, Fashion Bug Plus and Modern Woman. Rite Aid Corporation (717-761-2633) reported that its August total sales increased 17.2% to $1.35 billion from $1.15 billion last year. Comparable store sales increased eight percent for the month, led by an increase of 18.6% for pharmacy same-store sales. Front-end same-store sales declined 4.7% for the month. East Coast same-store sales increased 12.2% for the month and were led by a 21.1% increase in comparable pharmacy sales with a 1.5% decline in front-end same-store sales. West Coast same-store sales were flat, reflecting an 11.9% gain in pharmacy sales and an 8.9% decline in front-end sales. The company operates 3,800 stores in 30 states. www.riteaid.com Consolidated Stores Corporation (614-278-6810) reported that its August sales increased 13% to $278.5 million from $246.5 million during August last year. Comparable store sales increased 5.1% for the month. The company operates a total of 2,154 stores in all 50 states and Puerto Rico trading as Odd Lots, Big Lots, Big Lots Furniture, Pic N’ Save, Mac Frugal’s Bargains*Close-Outs, K*B Toys, K*B Toy Works and K*B Toy Outlet. www.cnstores.com West Marine, Inc. (408-728-2700) reported that net sales for August increased 4.5% to $39.9 million from $38.2 million last year. Of the $1.7 million increase in net sales, $1.5 million was due to new stores and $0.4 million was the result of increased non-store business, partially offset by a $0.2 million decrease in comparable store net sales. Total non-store sales increased seven percent compared to the same period last year. Included in non-store sales were Internet sales, catalog sales and Port Supply, a wholesale division. Comparable store net sales for the month fell 0.9% primarily due to the company’s decision to not repeat last year’s clearance events of slower moving merchandise. The company operates 228 specialty marine retail stores trading as West Marine and E&B Marine. www.westmarine.com Food Tenants Hungry for Sites Nationwide California Cafe Restaurant Corp. trades as California Cafe,
Blackeye Grille, Napa Valley Grille, Cafe Del Rey and Alcatraz Brewery at 28
locations in AR, AZ, CA, CO, FL, GA, IL, IN, MN, NJ, NY and RI. The restaurants occupy
spaces of 6,500 sq.ft. to 7,000 sq.ft. in downtown store fronts, entertainment centers,
freestanding facilities and regional malls. Plans call for as many as 12 openings in the
coming 18 months. Expansion will take place nationwide. Penn Station, Inc. trades as Penn Station East Coast Subs at
71 locations in KY, IN, MO and OH. The fast food restaurants, serving cheesesteaks,
submarine sandwiches and fresh cut fries, occupy spaces of 1,600 sq.ft. to 1,800 sq.ft. in
freestanding facilities and strip centers. Plans call for 25 openings in the coming 18
months. Expansion will take place in KY, IN, MI, MO, OH and TN. Preferred demographics
include a population of 50,000 within two to three miles earning between $35,000 to
$40,000 as the average income. Leases running 20 years are typical and the company is
franchising. The Potato Sack Inc. trades as The Potato Sack at six
locations in FL and PA. The restaurants, serving gourmet topped baked potatoes, French
fries and potato skins, occupy spaces of 700 sq.ft. in regional malls. Plans call for at
least two openings in the coming 18 months. Expansion will take place in the existing
markets. Preferred demographics include a population of 750,000 within four miles earning
$50,000 as the average income. Leases running seven to ten years are typical and the
company is franchising. TCBY Enterprises Inc. trades as TCBY Treats at more than
2,800 locations worldwide. The stores, serving frozen yogurt, occupy spaces of 1,200
sq.ft. to 1,600 sq.ft. in freestanding facilities, power centers and regional malls. Plans
call for at least 300 openings in the coming 18 months. Expansion will take place
nationwide. Preferred demographics include a population of 40,000 within three miles
earning $40,000 as the average income. Leases running three to five years, with options,
are typical and the company is franchising. Pizza USA Management, Inc. trades as Pizza USA at 11
locations in AZ, FL, IA, KS and NY. The pizza restaurants occupy spaces of 900 sq.ft. in
food courts of regional malls. Plans call for two openings in the coming 18 months.
Expansion will take place nationwide. Leases running 10 years are typical. Boat N Net operates 10 locations in TX. The fast food restaurants,
serving seafood, occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in freestanding facilities.
Plans call for eight openings in the coming 18 months. Expansion will take place in south
TX. The company cites Long John Silvers as competition. Dippin Dots, Inc. trades as Dippin’ Dots at 200
locations nationwide. The frozen dessert stores occupy spaces of 100 sq.ft. to 500 sq.ft.
in regional malls, entertainment and power centers. Plans call for 60 openings in the
coming 18 months. Expansion will take place nationwide. J.W. Restaurants does business as China Pantry and Teriyaki
Express at 16 locations in CA, CO, TX and WA. The restaurants, serving Chinese and
Japanese foods, respectively, occupy spaces of 500 sq.ft. to 1,000 sq.ft. in freestanding
facilities, regional malls, outlet and power centers. Plans call for five openings in the
coming 18 months. Expansion will take place in CA, CO, NC, TX and VA. Leases running 10
years are typical. Real Estate Professionals Making News Trout, Segall and Doyle Development Company (410-435-4000) and Hawkins Development Group recently entered into an arrangement in which they have agreed to joint venture projects in Baltimore, MD and other major East Coast cities. Trout, Segall and Doyle Development Company recently completed a Michael’s Craft store in Bowie, MD and has an approximate $22 million project under construction in Springfield, VA. The tenants for the latter include Circuit City, Bed Bath & Beyond, Barnes & Noble and DSW Shoe Warehouse. It is actively involved in developing and renovating approximately one million sq.ft. on the Eastern Shore of MD and DE. The newly-formed Hawkins Development Group is a consulting firm that specializes in real estate development and marketing. Tony Hawkins, principal of the company, recently retired after 30 years with The Rouse Company as group vice president and director of mixed use projects. He has successfully managed and re-developed urban projects such as Kendall Town and Country and Bayside Marketplace in Miami, FL; The Village of Cross Keys and Harborplace in Baltimore, MD and Cherry Hill, NJ. Space Place Illinois Schaumburg- Kingsport Plaza has spaces from 1,000 sq.ft.
to 8,000 sq.ft. available for lease. Demographics include a five-mile population of
268,943 earning $74,000 as the average income. Iowa West Des Moines- Westowne Centre is anchored by Office
Depot, Michaels, Half Price Stores, Hooters and Taco Bell. The project has
spaces of 5,535 sq.ft., 8,340 sq.ft. and 16,000 sq.ft. available for lease. Demographics
include a three-mile population of 85,000 earning $80,000 as the average income. Oregon Medford- Black Oak Village Shopping Center is anchored
by Black Oak Pharmacy. The 63,000 sq.ft. project has spaces of 1,365 sq.ft., 1,735
sq.ft., 1,800 sq.ft. and 25,000 sq.ft. available for lease. Demographics include a
three-mile population of 56,825 earning $40,587 as the average household income. In White
City- Lakewood Center has up to 50,000 sq.ft. available for lease.
Demographics include a five-mile population of 32,178 earning $41,376 as the average
family income. Rhode Island Providence- Shaw’s Plaza is anchored by Super
Shaw’s Grocery, Fashion Bug, CVS, Hit or Miss, Chili’s, Papa Gino’s and
D’Angelos. The 121,700 sq.ft. project has spaces of 1,360 sq.ft., 2,463
sq.ft., 2,500 sq.ft., 3,000 sq.ft. and 9,000 sq.ft. available for lease. Demographics
include a three-mile population of 184,073 earning $43,267 as the average family income.
In Warwick- Meadowbrook Shopping Center is anchored by CVS,
McDonald’s, Cost Plus, Payless Shoes and Benny’s. The 108,696 sq.ft.
project has spaces of 1,328 sq.ft., 1,500 sq.ft., 1,574 sq.ft., 3,000 sq.ft., 4,000 sq.ft.
and 6,305 sq.ft. available for lease. Demographics include a three-mile population of
63,324 earning $44,070 as the average family income. South Carolina Mullins- A 27,200 sq.ft. former Ingles’ Food space
is available for lease at a shopping center anchored by Dollar General. Virginia Richmond- Commonwealth Centre is anchored by Kohl’s,
Target and Consolidated Theater. The project has anchor positions, in-line
space and outparcels available for lease in its 238,300 sq.ft. phase II expansion area. |