Issue 7 for the week of March 1, 1996

The Dealmakers Issue Number 7 for the week of March 1, 1996.

My Way by Ted Kraus

It's been a little slow lately, so here's some random thoughts instead of one large "complaint," but before going any further, I have to address the last "My Way." I received numerous calls on it, several from Kmart people asking why I was "picking" on Kmart regarding corruption and accepting bribes.

In no way was this editorial "against" Kmart, it's just that one of their people happened to get caught and I "reacted" to it, but the practice of paying off real estate executives in order to get a deal has been going on "forever" in our industry. In my former life as a developer, I remember the company I worked for hiring a JC Penney retired real estate VP for big bucks, set him up with his own office and never expected him to work. When his lack of contribution to the company became apparent even to me, I inquired why he was being kept. My boss replied, "Schmuck, it's a payoff for all the Penney deals we did in the last few years." "Oh," was my only reply. I was 26 years old and had no idea this went on. Later I learned about using the "favored" broker for WT Grants, Atlantic Department Stores and a dozen other tenants. If you didn't do a deal through their favored brokers, you didn't do the deal (with a few exceptions). That simple. This was 25 years ago and it's gotten worse.

So like I said, that editorial wasn't against Kmart, it was against this particular practice.

On another subject, if you didn't hear, the ICSC, after this upcoming October show is canceling the mid-year Dealmaking event. Hallelujah, it couldn't have happened to a nicer event. There is also talk that there will be an industry "get together" in New York in December, replacing the former Kinney Party. That makes sense. Local dealmaking events will take on even more importance than they have in the past. Plan on attending more "locals" and spending more money to exhibit and entertain, but it should be worth it.

I'm hearing "rumors" that developers are aggressively trying to buy leasehold improvements from retailers that are either bankrupt or want to dispose of the company before going "11'" i.e.: Kimco is supposed to be trying to buy Clover, a northeast, regional discounter (a division of Strawbridge & Clothier). Then, like they (Kimco) did when they bought Gold Circle, they'll spin off different leaseholds to retailers such as Target and Kohls. The same rumor says May Department Stores is trying to buy Strawbridge & Clothier. Kimco isn't the only developer trying to do this, several other developers are attempting to do the same thing on a smaller basis. Guess if you can't develop, then you do whatever else will make money in real estate.

Another rumor I heard is that Target is "considering" two level locations (prime, prime real estate only, of course). This makes sense, department stores for years operated successfully two level stores in downtown environments, then with the movement to the suburbs with cheap land costs, one level locations became common. Now with the costs of land increasing and a lack of "good" sites, two level stores make sense again. Burlington Coat for years has taken two level stores (because they could make cheap rent deals). They knew the layout wasn't as desirable, but the rent concessions were great and they were able to get locations that no one else wanted even if the real estate was good because of it being multi levels. That, I think, will be changing in the near future.

Talking about rumors, I've heard one that there are several "developers" doing a "scam." They supposedly find a pension fund, sell 'em on developing a project, get huge consulting fees and then never build. If correct, that's a new way of making money in our industry. In the past, they found a pension fund, got 125% financing, built the project and then "11ed" it.

On another subject, a trend I'm noticing (because of the downsizing of real estate departments) is the rapid growth of one "man" real estate offices to either broker, develop, purchase for their own account real estate or all of the above. That's great. I'm a great believer in entrepreneurs and since many operate out of their home, overhead is low, therefore they have a fighting chance of making money, but probably two out of three will fail for too many various reason to mention here. What the end result will be, I have no idea, but the trend is worth mentioning.

Speaking of trends, I really believe that 80% of all companies that install voice mail "down deep" do not like their customers, want to frustrate 'em and are more concerned with their own convenience than that of the caller. Voice mail is being abused to the 9th degree. I hate it. Of course, there's the exception to every rule. The other night I was at the office at 7 p.m. and answered a call. The person wanted one of our staff and I told them they were gone for the day, would they like to leave a message? They asked, "Don't they have voice mail?" I said, "no, they have me." I was informed by the caller that he doesn't leave message with "people." I said, "have a nice day, goodbye."

What goes around, comes around. Years ago when WT Grant, Atlantic Department Stores, Korvettes, etc. went bankrupt, many of their store became successful flea markets. Now, Home Depot is taking over two of these "bazaars" in NJ and of course, hundreds of venders will lose their businesses. But, nothing to worry about. I'm willing to bet that within the year, dozens of "big box" spaces will go dark and new flea markets will be born. Guess I should dust off our "flea marketing consulting brochures" and start promoting that service again.

Last comment: Every two months or so, I ask the users of our Commercial Real Estate Forum on the InterNet (there's 5,200 subscribers, so it's a good representation of the country) how business is in their part of the country; it appears the real estate industry, except for retail, is doing decent. Lots of demand for apartment buildings, mobile home parks and office buildings. It appears everyone is leasing up. The only field slower than retail is industrial. One person replied that business was good, but 18 months ago it was horrible, so he and his partner spent a weekend restructuring their entire company and most importantly, how they market. I agree with their approach, we've changed our marketing strategy dramatically. My question is: "What are you doing differently to market your company better; i.e. InterNet marketing, mass mailing, advertising, etc.?"

P.S. We just published a booklet called "InterNet Marketing For Dummies-Real Estate #101." While I admit it's an "informational" on selling our Internet marketing services, it's also informative (we gotta give a reason to read through all our advertising). If you would like a free copy, either call Amy at 609-587-6200, fax a request to 609-587-3511 or e-mail a request to: deal.makers@dealmakers.net. Include your mailing address.

Auto Tenants Searching for Sites

Murray's Discount Auto Stores, Inc. trades as Murray's Discount Auto Stores at 47 locations in MI and OH. The stores, selling auto parts, occupy spaces of 10,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in Chicago, IL metropolitan area.

For more information, contact Debbie Smith, Murray's Discount Auto Stores, Inc., 8080 Haggerty Road, Belleville, MI 48111; 313-957-8080, Fax 957-8156.

Rose Auto Stores of Florida, Inc. does business as Rose Auto Stores at 99 locations in FL. The automotive supply stores occupy spaces of 4,500 sq.ft. to 7,000 sq.ft. in freestanding facilities. Plans call for 15 openings in the coming 18 months. Expansion will take place in the existing market.

For more information, contact Rey Hernandez, Rose Auto Stores of Florida, Inc., 4760 North West 165th Street, Hialeah, FL 33014-6404; 305-625-7786, Fax 625-9367.

Tuneco, Inc. trades as Tune-Up Clinic at 28 locations in FL and GA. The stores, which perform while-you-wait tune-up services, occupy spaces of 3,200 sq.ft. to 3,600 sq.ft. in freestanding facilities. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact William Henson, Tuneco, Inc., 210 Sandy Springs Place, Atlanta, GA 30328; 404-252-6086, Fax 250-0617.

Northern Automotive Corp. trades as Northern Auto at 575 locations throughout the Midwest and Western regions. The stores, selling auto parts, occupy spaces of 4,500 sq.ft. to 10,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Dan Scruggs, Northern Automotive Corp., 645 East Missouri Avenue, Phoenix, AZ 85012; 602-265-9200, Fax 234-1361.

Chief Auto Parts, Inc. trades as Chief Auto Parts at 520 locations in CA, NV, OK, TN and TX. The auto parts stores occupy spaces of 5,000 sq.ft. to 6,000 sq.ft. in power and strip centers. Preferred anchors include supermarkets. Plans call for 60 openings in the coming 18 months. Expansion will take place in CA, NV and TX.

For more information, contact Gene Detchemendy, Chief Auto Parts, Inc., 16069 Shoemaker Avenue, Cerritos, CA 90703; 310-921-2696, Fax 921-3547.

Stidham Tire Co., Inc. trades as Stidham Tire at six locations in MD and VA. The stores, selling auto supplies, occupy spaces of 5,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for as many as three openings in the coming 18 months. Expansion will take place in MD.

For more information, contact David Crawford, Stidham Tire Co., Inc., 3900 White Tire Road, Landover, MD 20785; 301-322-3200, Fax 322-3723.

Wharton & Bernard operates 10 locations in DE and MD. The auto parts stores occupy spaces of 35,000 sq.ft. in freestanding facilities. Plans call for one opening in the coming 18 months. Expansion will take place in MD.

For more information, contact Bob Herman, Wharton & Bernard, PO Box 179, Milford, DE 19963; 302-422-4571, Fax 422-7552.

New Construction

CBL & Associates Properties, Inc. is planning to build Cortlandt Town Center in Cortlandt, NY. The 790,000 sq.ft. power center will be anchored by a 133,000 sq.ft. Home Depot, a 65,000 sq.ft. A&P Supermarket, a 53,000 sq.ft. HomePlace, a 50,000 sq.ft. Nobody Beats The Wiz, a 25,000 sq.ft. Barnes & Noble Booksellers and a 10-screen United Artists Theatre. Space for five additional anchors tenants and 40 specialty stores is available. The project is expected to open during Summer 1997.

For more information, contact David W. Locke, Director of Leasing, of CBL & Associates Properties, Inc. at (617-647-3330).

Rosenshein Associates is planning to develop Weymouth Square in Weymouth, MA. The 275,000 sq.ft. project will be anchored by a supermarket, a catalog showroom, a sporting goods store, a crafts store and a multiplex cinema. The project is expected to open during 1998. The company is planning to develop Hanover Square in Hanover Township, NJ. The 402,000 sq.ft. project will be anchored by BJ's Wholesale Club. The site is expected to open during 1997. The company is planning to develop Somerville Square in Somerville, NJ. The 650,000 sq.ft. project will be anchored by Best Products, a discount department store, a supermarket, a sporting goods store, a crafts store and a multiplex cinema. The center is expected to open during 1998. The company is planning to develop Central Avenue Plaza in Yonkers, NY. The 80,000 sq.ft. project will be anchored by National Wholesale Liquidators. The center is expected to open during 1997. The company is planning to develop Co-Op City Plaza in the Bronx, NY. The 135,000 sq.ft. project will be anchored by National Wholesale Liquidators and Edwards Supermarket. The site is expected to open during 1997. The company is looking to develop The Center at The Hub in the Bronx, NY. The 175,000 sq.ft. project will be anchored by Bradlees. A 1997 opening is planned. The company is also looking to develop Jamaica Center in Jamaica, NY. The 320,000 sq.ft. project will be anchored by Caldor and a multiplex cinema. Phase II will be anchored by an office building. A 1998 opening is scheduled.

For more information, contact Lisa Rosenshein, Director of Leasing, of Rosenshein Associates at (914-698-3600), Fax (698-3935).

Bellemead Construction is currently developing Newton Factory Outlet Stores in Newton, KS. The 180,000 sq.ft. project will be tenanted by Dress Barn, Sun Glass Hut International, Levis, Dockers, Rocky Mountain Chocolate, Rue 21, The Paper Factory, Publishers Warehouse, Factory Brands Shoes, Famous Brands Housewares and Claire's Boutique. An additional 30 tenants are expected to be in place when the project opens during April. Also planned for the mall is a food court, a miniature golf course and a lake with a picnic area.

For more information, contact Jack Pross of Bellemead Construction at (201-535-4680).

Sapphire Properties recently broke ground on Parkway Plaza in Norman, OK. The 375,000 sq.ft. project, which is located adjacent to the 503,000 sq.ft. Sooner Fashion Mall, will be anchored by a 105,000 sq.ft. Home Depot, Barnes & Noble Booksellers, Toys 'R Us, OfficeMax, PetsMart, Old Navy Clothing Co. and On the Border restaurant. Negotiations are being finalized for two additional restaurants and a large, soft goods retailer. An additional anchor position as well 20,000 sq.ft. of specialty shop space is available for lease. The project is expected to open during October.

For more information, contact the leasing agents of the site, Tom Blanton of D.J. Blanton Company at (405-848-7521) or Jeff Johnson of United Commercial Realty at (214-526-6262).

Urban Shopping Centers, Inc. plans to break ground later this year on Citrus Mall in Tampa, FL. The 1.2 million sq.ft. project will be anchored by a 220,000 sq.ft. Dillard's Department Store and a 180,000 sq.ft. Burdines Department Store. Additional anchor stores and 380,000 sq.ft. of specialty retail space will also be constructed. Site work on a 500,000 sq.ft. power center located across the street will be done simultaneously. The mall is expected to open during Spring 1999.

For more information, contact Urban Shopping Centers, Inc. at (312-440-4800).

Caruso Affiliated Holdings recently broke ground on Thousand Oaks Towne Center in Thousand Oaks, CA. The 200,000 sq.ft. project will be anchored by Bristol Farms grocery, Bristol Kitchens, Barnes & Noble Booksellers, Lakeshore Learning Center, Cost Plus, Staples, Hollywood Video, Noah's Bagels, an eight-screen Mann Theatre, and restaurants Rosti, Chili's and Romano's Macaroni Grill. In addition, Walt Disney Company plans to open the first of its newest concept, Camp Disney, at the center. Camp Disney is an interactive learning and recreational environment for children and their families. It offers a variety of activities such as a play area, exercise, arts and crafts and a Disney Store. The project is expected to open during November.

For more information, contact Rick Caruso of Caruso Affiliated Holdings at (310-445-0076).

Buyers & Sellers of Commercial Properties

United Dominion Realty Trust recently sold Deerfield Plaza Shopping Center in Myrtle Beach, SC. The 105,000 sq.ft. project was sold to Deerfield Plaza (GP), Inc. for $5.9 million.

For more information, contact Robert Weber at (804-780-2691).

United Municipal Leasing Corporation is in the market to acquire single tenant occupied properties nationwide. Preferred properties should have triple net leases with at least 15 years remaining, exclusive of options to extend. Property leased to state, county or local governments or publicly-listed corporations having a net worth of at least $100 million will be considered. The purchase price will depend on: description and size of property; tenant and location of property; current annual rental and rate of return on investment; expiration date of initial lease; terms and conditions of lease and options to renew; price per sq.ft. of building; specific annual rental increases incorporated in lease; and terms of assumable financing.

For more information, contact Arnold Kramer at (312-332-5651, Ext. 88), Fax (332-5650).

CB Commercial Real Estate Group, Inc. South Bay Torrance (CA) brokered the sale of South Bay Place Shopping Center in Lawndale, CA. The 51,942 sq.ft. project, which is anchored by Creative Computers and Audio Visual Center, was sold by Wells Fargo Bank to a private investment partnership for $3.25 million.

For more information, contact Ted Lawson at (310-516-2350).

Boyd, Page & Associates represented the buyer of a 50,000 sq.ft. Bed, Bath & Beyond building in Houston, TX.

For more information, contact Scott Shillings at (713-877-8400), Fax (877-1019).

Midland Group has the listing to sell six former Kroger stores, which were recently vacated by Handy Andy, in the San Antonio, TX market. The sites include a 45,528 sq.ft. building at West Park; a 42,130 sq.ft. building at Dresden Shopping Center; a 42,130 sq.ft. building at Flores; a 42,130 sq.ft. building across from Westlake Mall and a 42,130 sq.ft. building at Alamo Plaza Shopping Center.

For more information, contact Daniel Fox at (314-576-1900), Fax (576-7005).

Sevo Miller, Inc. has the listing to sell Kmart Plaza in Federal Heights, CO. The 116,800 sq.ft. project is anchored by a vacant Kmart. The asking price is $4 million. The company also has the listing to sell Kipling Square Shopping Center in Denver, CO. The 25,508 sq.ft. convenience center is 92% occupied. The asking price is $1.5 million.

For more information, contact Gene Stone or Steve Sebern at (303-721-1000), Fax (721-7249).

National Real Estate Clearinghouse and Colliers Iliff Thorn have the listing to sell 18 properties from Thrifty PayLess, Inc.'s portfolio by a sealed bid process. The bid sale will be held April 9. Included in the sale will be the 58,200 sq.ft. Las Vegas Center in Las Vegas, NV, which is anchored by PayLess and Albertson's; the 67,522 sq.ft. Silverton Center in Silverton, OR, which is anchored by PayLess and United Grocers; and a 35,000 sq.ft. shopping center in Modesto, CA anchored by Save Mart Grocery. Other properties for sale include vacant land, closed stores and pad sites throughout AZ, CA, ID, NV, OR and UT.

For more information, contact NRC at (800-747-3342, Ext. 640).

McDaniel and Company has the listing to sell Chestnut Square in Orangebury, SC. The 58,152 sq.ft. project is 93% leased and has a $240,528 net operating income. The asking price is $2.15 million and financing is possible.

For more information, contact McDaniel and Company at (864-576-4660), Fax (587-7246).

Gershner Realty Services has the listing to sell a 25,000 sq.ft. fully leased outlet shopping center in Manchester, VT. The project, which has been completely renovated, is leased to triple A tenants. The asking price is $4.85 million.

For more information, contact Jerry Gershner at (914-762-6024), Fax (762-6719).

The Carlton Group has the listing to auction 56 surplus land and retail sites from Chevron Real Estate Management and Star Enterprise. All of the sites were either former petroleum stations or land-bank investments that were not developed. The properties, which range in value from $10,000 to $900,000, are located in FL, GA, TX, TN, LA, VA and MA. The properties will be offered in a sealed-bid format due at Carlton Group's office on March 28.

To receive a brochure of the properties or for auction information, contact the Auction Information Center at (1-800-418-2100).

Hagenston's has the listing to sell a 28,000 sq.ft. former Safeway building, with a new tenant in place, in Glendive, MT. The asking price is $300,000 and financing is available.

For more information, contact Greg Hagenston at (406-365-5555), Fax (365-5555).

First Washington Realty Trust, Inc. plans to acquire Cloppers Mill Village Shopping Center in Germantown, MD. The 134,000 sq.ft. project is anchored by a 74,000 sq.ft. Shoppers Club supermarket, CVS Pharmacy, Hollywood Video and McDonald's. The company also plans to acquire Centre Ridge Marketplace in Centreville, VA. The 106,000 sq.ft. project, which is currently under construction, will be anchored by Super Fresh Supermarket, Sears Paint & Hardware and Hollywood Video. The combined purchase price is $31 million. Both acquisitions are subject to the satisfactory completion of due diligence.

For more information, contact Stuart Halpert at (301-907-7800).

Tibor Pivko & Company recently acquired a 34,414 sq.ft. building leased to Sears for a Homelife Furniture store in San Antonio, TX. The company is also in the market to acquire single tenant properties in major U.S. markets nationwide. Preferred properties are triple net leased and have at least 15-year terms with increases. Prices ranging from $1.5 million to $30 million will be considered.

For more information, contact Tibor Pivko at (201-345-3535), Fax (345-3291).

Bennett Williams Realty, Inc. has the listing to sell a 117,431 sq.ft. shopping center in York, PA. The project is 95% leased and anchored by Giant Foods. A one-acre pad site is included. The asking price is $8.9 million and $7.1 million of non-recourse assumable financing is available. The company also has the listing to sell a 120,725 sq.ft. project in Chambersburg, PA. The 98% leased project is anchored by Giant Foods, CVS Pharmacy and Blockbuster Video. The asking price is $11.9 million and $8.4 million of non-recourse assumable financing is available.

For more information, contact Richard Wolman at (717-390-9858), Fax (390-5860).

Financial News...

PETsMART, Inc. (602-944-7070) reported fiscal year 1995 net sales of $1.03 billion, a 26.1% increase over FY94 net sales of $817.6 million. Comparable store sales increased 12.5%. The company also reported an unaudited net loss of $2.8 million, compared to a net loss of $9.8 million in FY94. Excluding the mergers and nonrecurring charges, FY95 income was $23.1 million. During the company's fourth quarter, 10 store were opened, two were closed and one was relocated. The company currently operates 268 pet supply superstores in 32 states.

Lowe's Companies, Inc. (910-651-4223) reported that its fiscal year 1995 sales increased 16% to $7.075 billion from $6.11 billion in FY94. Comparable stores sales for the year were flat. The company, which operates 365 home improvement stores, is looking to have 400 units by the end of its current fiscal year in January 1997, and 600 units by the year 2000. Ten stores are expected to open during the first quarter of this year.

Home Express (510-732-9600) recently filed for Chapter 11 for the second time in six years. The company, which listed assets of $113.3 million and liabilities of $78.8 million, cited soft fourth quarter sales, problems with its new distribution center and difficulties with its new hardware and software systems as the reasons for its filing. The company, which has 33 stores, plans to keep all of them open while they reorganize.

Office Depot, Inc. (407-265-4258) reported that its 1995 sales increased 25% to $5.313 billion from $4.266 billion during 1994. Net earnings increased 26% to $132.399 million from $104.957 million and operating profit increased 27% to $244 million from $192.8 million. Comparable store sales for the year rose 17%. During 1995, the company opened 81 superstores in 28 states and three Canadian provinces; tested three retail formats which included the opening of four megastores; opened two Images units which specialize in copying services; and opened stores in Mexico, Poland, Colombia and Israel. In 1996, the company is planning to enter France and Thailand. The company ended 1995 with 532 stores worldwide.

Quantum Restaurant Group (516-627-1515) is looking to sell its 34-unit Peasant Restaurants, Inc. chain which includes restaurants trading as Peasant's, Mick's, City Grill and Dailey's. One of the potential buyers is Peasant president Robert Amick.

Kmart Corp. (810-643-1000) announced that the requisite banks have agreed to eliminate the "put" provisions on the company's $550 million of real estate debt and extend certain lines of revolving credit.

Melville Corp. (914-925-4000) reported its total net sales for 1995, inclusive of discontinued operations, were $11.5 billion, a two percent increase over $11.4 billion reported for 1994. Adjusting for the disposition of Marshalls, total net sales for the year increased 6.7%. Comparable store sales increased 1.4% overall. The company also reported a consolidated net loss for 1995 of $657.1 million, after taking into account the fourth quarter after-tax charges as well as a $46 million after-tax charge related to a change in the company's accounting policy. Operating profit at CVS increased 20% to $274 million on sales of $4.9 billion and Footaction saw a comparable store sales increase of 13.1%. However, the gains made in these divisions were offset by weaknesses in the other divisions.

Outback Steakhouse, Inc. (813-282-1225) reported that its 1995 net income was $53.68 million an increase over 1994's net income of $39.439 million. System-wide sales increased 48% for the year to $827.055 million. The company operates 297 Outback Steakhouse restaurants and 23 Carrabba's Italian Grille restaurants.

Sound Advice (305-926-4310) announced that it plans to stop selling computers and instead concentrate on selling consumer electronics. The announcement came after the company reported a $2 million loss during its fiscal second quarter, ended December 31, 1995, which put it in violation of its lending agreements on a $20 million credit line. The company has negotiated an extension until May 15 on its credit line.

The Home Depot (404-433-8211) reported fiscal 1995 earnings of $731.523 million, a 21% increase over FY94's earnings of $604.5 million. FY95 sales increased 24% to $15.47 billion from $12.476 billion during FY94 and comparable store sales increased three percent for the year. During the fourth quarter, the company opened 21 home improvement stores and currently operates 423 units throughout North America.

Claire's Stores, Inc. (305-433-3900) reported that its net income for fiscal year 1996, ended February 3, 1996, increased 30% to $30.913 million from $23.855 million in FY95. FY96 sales increased 14% to $344.851 million from $301.435 million last year and comparable store sales increased three percent for the year. During FY96, the company opened 122 stores and purchased 85 to bring its year-end total to 1,460 units operating throughout North America, the Caribbean, England, Japan, Scotland and Wales.

Tandy Corporation (817-390-3011) recently announced that its discussions regarding the sale of its Computer City division to CompUSA, Inc. have been discontinued. The company operates 99 Computer City locations nationwide.

Fretter, Inc. (810-220-5000) recently announced that all of its Fred Schmid home electronics stores are up for sale. The company operates 62 stores in CO, MI, IL, MA, OH, MT, NH, PA and WY.

Cort Business Services Corporation (703-968-8500) announced that its 1995 revenues increased 9% to $179.3 million from $164.6 million during 1994. Operating earnings increased 18.1% to $26.7 million and pro forma net income increased 27.2% to $11.5 million. The pro forma results reflect the company's initial public offering and the related debt retirement transactions. The company operates 95 rental showrooms, 61 furniture clearance centers and 55 warehouses in 27 states.

Store Closings

Pic 'n Pay, Inc. (704-847-8871) recently closed eight self-service, discount shoe stores and is planning to close an additional 41 stores in TX.

Bertucci's, Inc. (508-921-8081) plans to close two restaurants in Orlando, FL and one unit in NJ.

National Dollar Stores (415-882-9888) plans to close its remaining 21 discount stores in CA and HI.

Color Tile, Inc. (817-870-9400), which is closing 234 underperforming stores nationwide, recently closed four stores in the Hampton Roads, VA area.

Who's Opening and Where...

Tiffany & Co. (212-605-4696) plans to open a 7,700 sq.ft. store in the Iwasaki Building in Tokyo, Japan during May. The company also plans to open stores in the United States and Asia this year.

Ralphs Grocery Co. (310-884-9000), which recently acquired two Smith's Food and Drug Center stores in Bakersfield, CA, plans to reopen them as Food Max units later this year.

ZuZu, Inc. (214-922-8226) recently opened a restaurant in Paris, France and is planning to open three additional units in France this year.

CompUSA, Inc. (214-383-4488) plans to open a 34,200 sq.ft. store at CompUSA Center in Anchorage, AK during the Summer. The store will be the company's first unit outside of the contiguous U.S. The company also plans to open a 30,300 sq.ft. store at HomePlace Square Shopping Center in Dallas, TX during the Spring.

Jerry's Famous Deli, Inc. (818-766-8311) recently opened a 7,500 sq.ft. unit in Old Town Pasadena, CA. The company is also planning to open a unit in Westwood, CA during May and is exploring growth opportunities in Orange County, CA and Las Vegas, NV. The five-unit chain operates deli-style restaurants, featuring over 700 menu items, on a 24-hours-a-day basis.

Waban, Inc. (508-651-6063) recently opened a BJ's Wholesale Club in Langhorne, PA and is planning to open units in Exton and Lancaster, PA during the Summer.

Kmart (810-643-1000) recently opened a 175,000 sq.ft. Super Kmart Center in Wallingford, CT.

D.O.C. Optics Corp. (810-354-7100) plans to open optical stores in Chesterfield Township, Dearborn and Troy, MI this year. The company currently operates 114 units in FL, IL, IN, MD, MI, MO, OH and WI.

The Big Party (617-323-0822) plans to open 15 stores within the coming 18 months. The company currently operates 11 party supply stores throughout New England.

Roberds (513-859-5127) plans to open a 250,000 sq.ft. furniture superstore in Cincinnati, OH during the middle of this year.

Kohl's Department Stores (414-783-1300) plans to open two 85,000 sq.ft. department stores in Charlotte, NC and single units in Omaha, NE and Toledo, OH during August as well as stores in Strongsville, OH and Moline, IL during September.

Furniture To Go (407-276-2750) recently opened a 24,400 sq.ft. store at Cedarbrook Plaza in Wyncote, PA. The company, which operates eight other locations, is planning to expand its retail furniture chain into Northeastern markets this year.

Bertucci's, Inc. (508-921-8081), which operates 76 brick oven pizza restaurants, plans to open eight units this year including restaurants in Atlanta, GA and Chicago, IL.

Stater Brothers (909-783-5002) recently opened a 35,000 sq.ft. supermarket in Bloomington, CA and is planning to open 40,000 sq.ft. supermarkets in Yucaipa, Loma Linda and Palm Springs, CA during 1997.

Stein Mart (904-346-1500) plans to open a 40,000 sq.ft. off-price family clothing store in Biloxi, MS during May.

Circle K (602-437-0600) recently opened a 3,000 sq.ft. Emily's Market, a combination food market and take-out restaurant, in Chandler, AZ. The test concept will carry all the ingredients necessary to prepare a meal, including meats and vegetables. However, if a customer does not want to cook, a selection of ready-to-eat meals is also available. No indoor seating is available. The company plans to open as many as 12 units in the Phoenix, AZ market within the coming two years. The company plans a national rollout of the concept if the tests prove successful.

Gottschalks, Inc. (209-434-4744) plans to open a 160,000 sq.ft. department store at Fashion Fair Shopping Center in Fresno, CA next month. The store will replace a Weinstocks, which is being closed by Federated Department Stores.

Lowes (910-651-4223) plans to open a 150,000 sq.ft. Lowe's Home Improvement Warehouse in Columbia, SC during mid-1997.

George Washington slept there, now Wal*Mart wants you to shop there. Wal*Mart Stores, Inc. (501-273-4000) plans to build a store on part of the farm where George Washington grew up in Stafford, VA. Even though the land has been zoned commercial for many years, local historical groups are putting up a fight to save the farm and keep Wal*Mart, and others, from building on the site.

Blockbuster Entertainment Group (305-832-3000) plans to open a 3,500 sq.ft. Blockbuster Video store in Harlem, NY during the Spring.

International Cutlery Ltd. (212-924-7300) plans to open seven stores and one kiosk in malls throughout NY beginning in May. The company currently operates seven locations.

Mergers & Acquisitions

Claire's Stores, Inc. (305-433-3900) recently acquired the assets of Bow Bangles, a 50-unit accessories chain operating throughout the United Kingdom.

Grill Concepts, Inc. (310-820-5559) recently agreed in principle to acquire The Grill restaurant in Beverly Hills, CA for 850,000 shares of common stock. The Grill is a well known, upscale restaurant set in the traditional style of old-time grills of New York and San Francisco, with black and white marbled floors, polished wooden booths and deep green upholstery. Grill Concepts operates six Daily Grill restaurants in CA.

Tosco Corporation (203-977-1000) recently announced that it has agreed to purchase all of the outstanding shares of The Circle K Corporation and merge Circle K with Tosco. The deal is worth approximately $710 million. Circle K operates 2,500 company and franchised convenience stores, 1,900 of which sell gasoline. Tosco operates 130 convenience stores, which will be converted to Circle K units, and serves other markets under the BP brandname.

Retailers Keeping Up with The Times

Discovery Zone, Inc. (305-627-2400) recently launched an alternative entertainment concept for pre-teens and teens, aged 10 to 15, called NiteZone at selected Discovery Zone FunCenters throughout Southern Florida and Northern California. NiteZone is open on Friday and Saturday nights from 7:30 p.m. to 10:30 p.m. and offers kids videos, music, competitive obstacle courses, electronic skill games, basketball, air hockey, dancing, food and prizes.

Staples, Inc. (508-370-8967) plans to open a catalog call center in Tulsa, OK next month. Staples Direct, the catalog and delivery division of Staples, Inc., services the needs of small to medium sized companies as well as the home office market. It will be the company's third catalog call center.

T.G.I. Friday's (214-450-5400), through a license agreement with Capital Mercury Shirt Corp., recently launched a national rollout of its spring line of Friday's Wear men's shirts. The clothing line includes sport, dress and knit shirts and features the Friday's logo on the labels, but not on the outside of the clothing. The shirts are available at department stores nationwide.

America's Shirt Catalog (317-321-9999), which sells men's dress shirts, t-shirts and silk ties via the Internet, was recently opened by Carl Levinson. The web site offers a variety of dress shirts and ties as well t-shirts and sweatshirts at discounted prices. In addition, the company has placed samples of its dress shirt materials at 60 Indiana dry cleaners. Orders are taken via the Internet and by phone. The company expects to have first year sales of $250,000. To access the company's web site, type http://www.al.com/shirt/.

Kranzco Realty Trust (610-941-9292) is offering tenants at its 38 shopping centers the opportunity to advertise on the World Wide Web. For a small fee, the tenants can advertise their stores and merchandise and display their company logo. To access Kranzco's Web site, type http://www.krt.com/.

Lead Sheet

Maurices

Mark Robillard

105 West Superior Street

Duluth, MN 55802

218-727-8431, Fax 720-2102

Apparel

The 600-unit chain operates locations nationwide. The stores, which sell women's apparel, occupy spaces of 3,500 sq.ft. to 5,500 sq.ft. in a variety of real estate settings. Plans call for as many as 50 openings in the coming 18 months. Expansion will take place nationwide exclusive of AL, CA, CT, FL, LA, MA, ME, MS, NH, RI, TX and VT.

American Greeting Corp.

dba Cardamerica, Cards-N-Such, Scribbles

Andrea Law

One American Road

Cleveland, OH 44144

216-252-7300, Ext. 1531, Fax 671-1188

Cards & Gifts

The 400-unit chain operates locations nationwide. The stores, selling greeting cards and gifts, occupy spaces of 1,800 sq.ft. to 2,700 sq.ft. in regional malls. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place nationwide.

More Computers

Martin Rudman

c/o Grubb & Ellis

455 South Gulph Road/ Suite 230

King of Prussia, PA 19406

610-337-4244, Ext. 236, Fax 337-1616

Computers

The one-unit company operates a location in PA. The computer store occupies a 15,000 sq.ft. freestanding facility. Plans call for two openings in the coming 18 months. Expansion will take place in either DE, NJ or PA. The company will also consider spaces at regional malls and strip centers.

The Colonel's Pantry, Inc.

dba Colnel's Pantry

James Salmon

PO Box 1358

Morganton, NC 28680

704-437-8000, Fax 437-8324

Convenience Store

The nine-unit chain operates locations in NC. The convenience stores occupy spaces of 2,000 sq.ft. in freestanding facilities and strip centers. Plans call for as many as two openings in the coming 18 months. Expansion will take place in the existing market.

Belk Stores, Inc.

dba Belk Department Stores

Bill Wilson

2801 West Tyvola Road

Charlotte, NC 28217

704-357-1000, Fax 357-1883

Department Store

The 280-unit chain operates locations in AL, AR, DE, FL, GA, KY, MD, MS, NC, SC, TN, TX, VA and WV. The department stores occupy spaces of 60,000 sq.ft. to 80,000 sq.ft. in freestanding facilities, regional malls and strip centers. Growth opportunities are sought in the existing markets.

Mazol Enterprises

dba Insurance Claims Fire Sale

Sia Showghi

1515 La Branch Street

Houston, TX 77022

713-659-8640, Fax 659-8644

Discount/Variety

The eight-unit chain operates locations in TX. The discount/variety stores occupy spaces of 4,000 sq.ft. to 50,000 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 market.

Cleaning Concepts, Inc.

dba La Fresca Environmental Dry Cleaning

Gerald David

4107 West Magnolia Boulevard/ Suite 8

Burbank, CA 91505

800-866-4742, Fax 848-4934

Dry Cleaners

The one-unit company operates a location in CA. The store, which features environmentally-friendly dry cleaning services, occupies a 2,500 sq.ft. end-cap space at a strip center. Plans call for 35 openings in the coming 18 months. Expansion will take place in AZ, CA, NV and SC. The company is also seeking pad sites running 3,500 sq.ft.

J.R. Holcomb & Co.

dba Holcomb's Educational Material

David Krulcik

3205 Harvard Avenue

Cleveland, OH 44101

216-341-3000, Fax 341-5151

Educational

The 10-unit chain operates locations in OH and PA. The stores, selling school and office supplies, educational materials and stationary items, occupy spaces of 4,000 sq.ft. in strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets.

Roberds

Wayne Hawkins

1100 East Central Avenue

West Carrollton, OH 45449

513-859-5127, Fax 859-6037

Electronics

The 23-unit chain operates locations in FL, GA, IN and OH. The stores, selling consumer electronics as well as appliances and furniture, occupy spaces of 65,000 sq.ft. in freestanding facilities and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in FL and OH.

Kerasotes Theater, Inc.

dba Kerasotes Theater

Steve Frishman

c/o Mid-America Real Estate Corp.

2 Mid-America Plaza/ Suite 330

Oakbrook Terrace, IL 60181

708-954-7300, Fax 954-7304

Entertainment

The company operates 300 screens at 100 locations throughout the Midwestern region. The movie theaters occupy spaces of 40,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in IL. The company prefers 10-acre parcels of land to build its theaters on.

Mickey Finn's Sports Cafe Corp.

dba Mickey Finn's Sports Cafe

John Vonnes

2211 Peoples Road

Bellevue, NE 68005

402-292-2056, Fax 292-9712

Food

The four-unit chain operates locations in NE. The restaurants occupy spaces of 4,000 sq.ft. in strip centers. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place nationwide.

Consolidated Stores, Inc.

dba Odd Lots, Big Lots

Jerry Large

300 Phillipi Road

Columbus, OH 43228

614-278-6715, Fax 278-6546

General Merchandise

The 543-unit chain operates locations in AL, FL, GA, IL, IN, KS, LA, MD, MI, MO, NC, NY, OH, OK, PA, SC and TN. The stores, selling general merchandise and close-out items, occupy spaces of 25,000 sq.ft. to 30,000 sq.ft. in freestanding facilities and strip centers. Plans call for 80 openings in the coming 18 months. Expansion will take place in KS, LA, OK, FL, TX, NY, MS, NC and SC.

Health Force

Pat Hiller

177 Crossways Park Drive

Woodbury, NY 11797-2047

516-496-2300, Fax 496-3283

Health

The 60-unit chain operates locations nationwide. The concept offers health and nursing services while using spaces of 1,500 sq.ft. in a variety of real estate settings. Plans call for as many as 12 openings in the coming 18 months. Expansion will take place nationwide. The company, which is franchising, prefers to locate its sites in cities with large populations.

Window Works

Ed Johnson

6321 Bury Drive

Eden Prairie, MN 55346

612-937-2004, Fax 934-5665

Home Decor

The 19-unit chain operates locations in AZ, CO, CT, FL, IL, IN, MA, MI, NJ, OH, PA and VA. The stores, selling window treatments and accessories, occupy spaces of 1,000 sq.ft. to 1,200 sq.ft. in strip centers. Plans call for 15 openings in the coming 18 months. Expansion will take place in the Midwestern region.

Kitchen Bazaar, Inc.

dba Kitchen Bazaar

Donald Morrison

12104 Indian Creek Court/ Suite J

Beltville, MD 20705

301-419-2330, Fax 210-5236

Housewares

The 16-unit chain operates locations in MD, VA, TX, OH, NC, NY, PA and Washington, D.C. The stores, selling gourmet housewares, occupy spaces of 5,000 sq.ft. in upscale centers. Growth opportunities are sought nationwide.

Thorn EMI

dba HMV Record Store

Bob Williams

333 Ludlow Street

Stamford, CT 06902

203-969-0105, Fax 969-0144

Music

The 13-unit chain operates locations in NY, MA, GA, CT, OH, KY, PA and Washington, D.C. The stores, selling music and videos, occupy spaces of 10,000 sq.ft. in regional malls. Plans call for one opening in the coming 18 months. Expansion will take place within the existing markets.

Office Depot, Inc.

dba Office Depot

John Grode

2200 Old Germantown Road

Del Ray Beach, FL 33445

407-265-4258, Fax 265-4400

Office

The 504-unit chain operates locations throughout North America. The office supply stores occupy spaces of 25,000 sq.ft. to 50,000 sq.ft. in freestanding facilities, regional malls, power and strip centers. Plans call for 80 openings in the coming 18 months. Expansion will take place nationwide.

Heel Quik, Inc.

dba Heel/Sew Quik

Raymond Robbins

6425 Powers Ferry Road #250

Atlanta, GA 30339

770-951-9440, Fax 933-8268

Service

The 600+-unit chain operates locations worldwide. The stores, offering shoe repair, clothing alterations, monogramming, dry cleaning, keycutting and laundry services, occupy spaces of 330 sq.ft. to 600 sq.ft. in regional malls, power and strip centers. Plans call for 50 openings in the coming 18 months. Expansion will take place worldwide. The company also locates its concept in super-supermarkets and transportation hubs.

Avalon Stores, Inc.

dba Avalon Shoe Salon

Stuart McLean

1434 North High Street

Columbus, OH 43201

614-297-1388, Fax 297-1390

Shoes

The company operates one store in OH. The company is seeking spaces running 1,000 sq.ft. to 1,500 sq.ft. in downtown store fronts and freestanding facilities. Preferred sites include historical buildings and inner city buildings in good condition. Plans call for as many as six openings in the coming 18 months. Expansion will take place in OH, TX and throughout the Midwestern region.

Chesapeake Knife & Tool

Mel Herman

9385-G Gerwig Lane

Columbia, MD 21046

410-720-5114

Specialty

The 22-unit chain operates locations throughout the Eastern and Southeastern regions. The stores, selling cutlery and related gifts, occupy spaces of 650 sq.ft. to 850 sq.ft. in regional malls. Plans call for as many as three openings in the coming 18 months. Expansion will take place in the existing markets.

The Fresh Market, Inc.

dba The Fresh Market

Tom McCloud

802 Green Valley Road #306

Greensboro, NC 27408

910-272-1338

Supermarket

The 19-unit chain operates locations in GA, NC, SC, TN and VA. The gourmet supermarkets occupy spaces of 14,000 sq.ft. to 20,000 sq.ft. in community and neighborhood strip centers. Plans call for as many as 12 openings in the coming 18 months. Expansion will take place in FL, GA, NC, SC, TN and VA.

GI Joe's, Inc.

dba GI Joe's

David Orkney

9805 Boeckman Road

Wilsonville, OR 57070

503-682-2242, Fax 682-7200

Variety

The 13-unit chain operates locations in OR and WA. The stores, selling sporting goods as well as apparel, electronics, hardware and automotive supplies, occupy spaces of 60,000 sq.ft. to 75,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in WA.

Video To Rol, Inc.

dba Video To Rol

Lee Goldstein

3987 Oneida Street

New Hartford, NY 13413

315-737-7301

Video

The 10-unit chain operates locations in NY. The video stores occupy spaces of 4,500 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 market.

Exclusives: Leasing & Management Assignments

Claire's Stores, Inc. (305-433-3900) recently acquired the assets of Bow Bangles, a 50-unit accessories chain operating throughout the United Kingdom.

Space Place

Alabama

Birmingham- Hillcrest Shopping Center is anchored by Office Depot, Big Lots and FoodMax. The project has a 25,000 sq.ft. Baby Superstore becoming available for sublease during September. Demographics include a five-mile population of 210,000 earning $44,000 as the average income.

For details, contact Amy Kennedy or Steve Sachs of Alterman Associates, Inc. at (770-984-1323), Fax (984-1607).

Colorado

Denver- Lakeside Shopping Center is anchored by Montgomery Ward and Target. The 260,000 sq.ft. project has spaces from 1,000 sq.ft. to 25,000 sq.ft. available for lease. The site fronts I-70 which generates a daily traffic count of 82,000 vehicles. Demographics include a five-mile population of 321,295 earning $41,024 as the average income.

For details, contact Gene Stone of Sevo Miller, Inc. at (303-721-1000), Fax (721-7249).

Florida

Boca Raton- West Boca Place is anchored by Office Depot. A 10,680 sq.ft. space is available for lease. In Fort Lauderdale- A 22,000 sq.ft. former Petstuff space is available for lease at a project anchored by Sports Authority, Office Depot, Linen Supermarket and Smart & Final.

For details, contact Melody Dowd of Schmler & Feurring Realty, Inc. at (407-488-9100), Fax (482-0181).

Massachusetts

Springfield- Big D Plaza is anchored by Big D Carpet & Tile. The 40,000 sq.ft. project has a 1,000 sq.ft. space, a 3,500 sq.ft. end-cap space and up to 30,000 sq.ft. in an expansion area available for lease. Pad sites are also available for lease. Demographics include a five-mile population of 203,243 earning $33,207 as the median income.

For details, contact Vicky Chastain of Levy Miller Maretz at (203-389-5377), Fax (389-6302).

New Hampshire

Nashua- Webster Square is anchored by Toys 'R Us, Kids 'R Us, Old Navy Clothing, Barnes & Noble, Filene's Basement, Service Merchandise and Michael's Arts & Crafts. The 248,000 sq.ft. project has spaces ranging from 2,500 sq.ft. to 15,000 sq.ft. available for lease. The site fronts Daniel Webster Highway.

For details, contact Ron Golub of The Stonewood Companies at (617-247-0033).

New Jersey

Allendale- Allendale Shopping Plaza is anchored by A&P Supermarket, McDonald's, Blimpie, GNC and Dress Barn. The 80,000 sq.ft. project has spaces ranging from 2,889 sq.ft. to 3,600 sq.ft. available for lease. In Fairfield- Drug Fair Shopping Center is anchored by Drug Fair, Mailboxes, Etc. and Blimpie. The 40,000 sq.ft. project has a 1,300 sq.ft. space available for lease. In Milton- A&P Shopping Center is anchored by A&P Supermarket. The project has a 2,500 sq.ft. space available for lease. In Ringwood- Fieldstone Park Shopping Center is anchored by Grand Union, Dunkin' Donuts, Mailboxes, Etc. and Dairy Queen. The 90,000 sq.ft. project has spaces ranging from 1,200 sq.ft. to 2,400 sq.ft. available for lease.

For details, contact John Azarian of Azarian Management & Development Co. at (201-444-9888).

Virginia

Richmond- A 2.3 acre site is available for lease, sale or build-to-suit. The site is located adjacent to a 150-acre to be built power center. Also in Richmond- A 4,000 sq.ft. space is available for lease at a shopping center anchored by Books-A-Million.

For details, contact Joe Harding of Harding & Associates, Inc. at (804-282-1590), Fax (282-7147).

Lease Signings

Saul Centers, Inc. (301-986-6207) leased 65,000 sq.ft. to Shoppers Food Warehouse for a Shoppers Club store at Seven Corners Shopping Center in Falls Church, VA.

Mortbitzer Group, Inc. (407-539-1000) leased 750 sq.ft. to Frame Design at Crystal River Shopping Center in Crystal River, FL; 750 sq.ft. to Dunkin' Donuts at Village Marketplace in Port Charlotte, FL; and 1,200 sq.ft. to Priced Rite Liquors at Magnolia Layne Shopping Center in Green Cove Springs, FL.

Colonial Properties, Inc. (203-795-8060) leased 14,400 sq.ft. to Hitchcock Chair Company at Hitchcock Plaza in Orange, CT.

Terranova Corp. (305-358-8700) leased 53,000 sq.ft. to HomePlace, 42,000 sq.ft. to Baby Superstore, 31,000 sq.ft. to Circuit City, 25,000 sq.ft. to Barnes & Noble, 14,500 sq.ft. to Old Navy Clothing Co. and 7,350 sq.ft. to Party Supermarket at Pembroke Crossing in Pembroke Pines, FL.

CB Commercial Real Estate Group, Inc. leased space to Blockbuster Video and Boston Market in Lawndale, CA and 11,250 sq.ft. to Claim Jumper restaurant at Torrance Crossroads Shopping Center in the City of Torrance, CA.

United Commercial Realty (214-526-6262) leased 6,500 sq.ft. to Blockbuster Video in Dallas, TX and 4,500 sq.ft. to Alphagraphics Printshops of the Future at Lakepointe Shopping Center in Lewisville, TX.

Friedland Realty, Inc. (914-968-8500) leased 7,500 sq.ft. to Pioneer Supermarket in the Bronx, NY.

Charter Realty & Development Corp. (203-629-3939), in conjunction with Richard Craig & Associates, leased 61,950 sq.ft. to Regal Cinemas in White Plains, NY.

United Properties (612-831-1000) leased 25,775 sq.ft. to Petters Warehouse Direct at Ridgedale Festival in Minnetonka, MN.

Correction

In the January 12, 1996 issue of The Dealmakers the address and phone number for Lighting Factory Outlet was incorrectly reported. The correct address is: Lighting Factory Outlet, 227 Glen Cove Road, Carl Place, NY 11514; 516-747-4748.