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The Dealmakers Issue Number 32 for the week of September 5, 1997. My Way by Ted Kraus As I've mentioned on numerous occasions, I've been in this business for over a quarter of a century, and that's probably just a few years less than 25% of our readers have been alive. While the shopping center industry is maturing, it's still relatively young in comparison to most professionals and while I'm old by some standards (if this was the computer industry, I'd be ancient), I'm also young enough to still be active in the field but can also remember way back when the industry was really fun. It was a young, exciting field with millionaires being made every day who were extremely entrepreneurial, usually had little cash to their name, were always banking on the next deal to save their butt, but they were great "party" companies. Back then, today's most respectable chairman's of the board had some of the most beautiful "nieces" on both arms at every ICSC show, VP's of real estate for major retailers handed out "J's" like they were business cards and everyone was up 'til 5 am at every ICSC event "whoring" around with someone. I sometimes think some of the most creative deals ever done were when the leasing people were either stoned or drunk. God, those were the days, we thought they'd never end, we'd all stay young forever and make our fortunes. Many did. Some who made it, later lost it, and some who made it, then lost it have made it again. The shopping center industry 20 to 25 years ago was much akin to where the computer industry is today. Fast paced, exciting and ever changing fun. Now I mention all this not to complain and reminisce about the good old days, but to set the tone for the rest of this story. In the last few months a number of friends have told me about remarks they heard said about me when my name came up. The most complimentary was that I was the "Howard Stern" of real estate (anyone wanta play bongo?) and then it goes downhill from there. I've been called a has been, an old relic, a few names I can't write in a family publication, an old fart, someone who was famous in the '70s, but overall "they" (whoever "they" may be") feel my best days have passed and what I write is the economics of the old days, not the accounting of today. Well, they might be right, I don't have the "hunger" I did when I was younger (take a look at my pot belly, it's full) and there's more of my life behind me than ahead (at 52, I don't expect to live to 105, especially when I smoke three packs a day), but I have to believe there's still some steam left under all this gray hair and with 25 years of observing and doing, I must have learned something which someone might benefit from. When we started this publication it was called The White Elephant and was meant to specialize in problemed property and provide me with a vehicle for free advertising, since I had just started the brokerage business and the advertising expenses were killing me. We quickly changed the name from White Elephant to Retail Vacancy Reporter because I learned the hard way that no one wanted to pay for a publication called The White Elephant. I also learned that we had to broaden our appeal if I wanted to sell subscriptions, since distressed real estate was not a big enough market at the time. I looked around at the competition and there was The National Mall Monitor, Shopping Center World, Shopping Center Digest, National Real Estate Investor, Stores and a few other retail publications, all of which only discussed enclosed malls and felt the strip industry was for the peons (a little like IBM feeling the PC would never have an impact on main frames). Being the contrarian I am (and because I felt we didn't have a prayer going against the big boys) we positioned what is now The DealMakers (we've gone through a number of names trying to position ourselves, Retail Leasing Reporter, The Lead Sheet, Dealmakers Weekly and now just the DealMakers). The "Strip" magazine. Most (no, let's be honest, all) of the other publications either ignored, laughed at us or thought we'd go under, since the market for strip oriented publications was limited. For the first decade, we really struggled, first because few were interested in strips and second because I had no idea what I was doing. I was extremely lucky in that strips started to grow in importance, therefore increasing the number of subscribers and then I met Ann who took over the publication, started to make it respectable, hired professionals like Chris to be our editor, Janet to be one of our reporters, Terri for ad sales, Jessica working with subscribers and the rest of the crew who do a great job and most importantly, Ann loves the bottom line. She accomplished something I could never do, she made us profitable. While we're still small when compared to the free circulations of World or Today, we've carved out a nice niche that supports our family and crew. Anyway, going back to my story, after the publication was a little less than a year old, I read somewhere that trade publications should have an editorial to be considered respectable and since I wanted to be one of the "big boys," I decided to start one. While trying to decide what to call it, Frank Sinatra's "My Way" was playing on the radio and since that's always been one of my favorite songs, a name was picked. That was the easy part, now I had to decide what to write about and man was that hard. No matter what you think of my statements, grammar or over use of "quotation marks," I dare you to try and write a column twice a month for 19 years, it can really stink. I asked our first editor what she thought I should write about and she responded, "Why not talk about what you do everyday; leasing." Sounded good to me and the rest is history. Most people complain about the difficulty of reading "My Way" at first, but after they read a few issues they get into the rhythm of it which in essence is: I write like I talk. Because my livelihood at the beginning did not depend on the publication (the brokerage arm subsidized the publishing arm for many years and its now paying us back), I had more "freedom" than most publications. I wrote about my frustrations in leasing and what I did everyday to make a deal happen. Then strange things started to happen, people called and either congratulated me for saying what they had been thinking for years or cursed me out for being an idiot. Because I elected to put my picture in every issue (I gotta get around to changing it, I haven't looked that good in 15 years), I was recognized at most of the shows and people I've never met or spoke to in my life would come up and start a conversation like we were old friends. Believe it or not, I'm an introvert and had trouble dealing with it, but after awhile you get used to it and I started to get even more insight to write about after listening to their complaints. I've always taken the position I'd rather be right than rich, so I've said things they were not necessarily "good" for my career but somehow I've always managed to eat, pay most of the bills and have little trouble liking myself and provide information and insight our subscribers need. So, I'd rather do it "My Way." I've criticized individual companies, brokers, developers, retailers, the ICSC and anyone else I was ticked at on a particular day. In my humble opinion, I've said what had to be said. Sometimes I was right, sometimes I was wrong, but like Howard, shock power has it's place. I've gotten people to listen (of course I've also gotten people to cancel their subscription, ban me from their booth, refuse to advertise, and send threatening letters), but I've always believed that a man is judged by the enemies he makes and over the years I've made a lot of powerful enemies (which always makes me laugh, since they could usually buy and sell me with their pocket change and anyway, who the hell is Ted Kraus that they should possibly care what he says or thinks?). While I am not involved in the day to day operations of the publication except for writing "My Way" twice a month, this aspect of the "job" has always brought me joy. It's fun telling off people. I have several people a year come up to me and ask where I get the right to say what I say. I always respond with, "My football, My rules, start your own publication if you don't like it." Let's be honest, wouldn't you like the ability after some a-hole screws you on a deal to tell thousands of people what a good for nothing bum he is. Anyway, getting back to me being an old fart, first I think there is not a new world order, at least not yet and someone has to try and be a voice of reason "out there" and I don't see the other publications saying rents are nuts, the prices the REITs are paying are crazy, there's too much money being lent for inferior projects and that developers, brokers and retailers often screw up. Right now the economy is too good for anyone to worry or more importantly, care about these mistakes, but it should still be said. History requires it. Sure it would be "nicer," easier and more politically correct to try and justify $25 psf rents for a so-so center, explain why 100% financing is good for the industry and why it makes sense for a REIT to buy a center at a 9«% CAP with limited upside, but that would be stupid and a lie. I'm a lot like my grandmother who lived through the great depression, while she was well off when I was a kid, the trauma of the depression stayed with her for life. The affects of our last recession/depression and some personal financial failures will never leave me, so I tend to be somewhat cautious, but sometimes your justified in being paranoid. This newsletter is the only shopping center publication dedicated exclusively to dealmaking (which doesn't make us better or worse, just us). It's extremely entrepreneurial-oriented and to a large extent, geared towards the little guy, which is what we are and most of the industry was about when we started. If that's a "has been" attitude, so be it.
Retailers Expanding in The PA/NJ/DE Markets The Bon-Ton Stores trades as Bon Ton at 70 locations in GA, MD, NJ, NY, PA and WV. The department stores occupy spaces of 45,000 sq.ft. to 80,000 sq.ft. in freestanding facilities and regional malls. Growth opportunities are sought in the existing markets. For more information, contact Stephen Evans, The Bon-Ton Stores, 2801 East Market, York, PA 17402; 717-757-7660, Fax 751-3196. Quick Chek Food Stores, Inc. trades as Quik Chek Food Stores at 100 locations in NJ. The convenience stores occupy spaces of 4,000 sq.ft. to 5,000 sq.ft. in freestanding facilities and end-caps of strip centers. Plans call for eight openings annually. Expansion will take place in the existing market. For more information, contact Robert Delia, Quick Chek Food Stores, Inc., 3 Old Highway 28, Whitehouse Station, NJ 08889; 908-534-2200, Fax 534-9126. Reynolds Bros., Inc. trades as Rafters and Reynold's Bros. at 19 locations in MD and NJ. The apparel stores occupy spaces of 6,000 sq.ft. in strip centers. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 50,000 within three miles earning $60,000 as the average income. Leases running five years are typical and the company cites department stores as competition. For more information, contact Edwin Snyder, Reynolds Bros., Inc., 1000 Airport Road, Lakewood, NJ 08701-5913; 908-367-5600, Fax 367-3625. Seaman's operates 42 locations in CT, NJ, NY, OH and PA. The furniture stores occupy freestanding facilities and spaces in strip centers. Growth opportunities are sought in the existing markets as well as in MD. For more information, contact Steven Halper, Seaman's, 300 Crossway Park Drive, Woodbury, NY 11797; 516-496-9560, Fax 682-1610. Family Toy Warehouse operates 24 locations in OH, IN and PA. The toy stores occupy spaces of 20,000 sq.ft. in freestanding facilities and strip centers. Plans call for as many as eight openings in the coming 18 months. Expansion will take place in NJ, OH and PA, with a focus on the metropolitan areas of Philadelphia and Pittsburgh, PA and Cleveland, OH. For more information, contact David Vender, Family Toy Warehouse, c/o Equity Properties, 1990 Sproul Road, Broomall, PA 19008; 610-353-6300, Fax 353-9256. Bryn Mawr Stereo & Video operates 13 locations in DE, MD, NJ and PA. The electronics stores, specializing in audio and video equipment for the home and car, occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in freestanding facilities and strip centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in the existing markets. For more information, contact Steve Lokoff, Bryn Mawr Stereo & Video, 320 Henderson, King of Prussia, PA 19406; 610-878-3700, Fax 878-3000. Crossroads Food Mart operates 26 locations in PA. The convenience stores occupy spaces of 4,200 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market. For more information, contact Richard Guttman, 200 Speers Street, Belle Vernon, PA 15012-1017; 412-483-3533, Fax 483-5226.
Who's Opening & Where Eckerd Drug Stores (813-399-6355) recently opened an 11,200 sq.ft. store in St. Petersburg, FL and an 11,200 sq.ft. store in Palmetto, FL. The company plans to open an 11,200 sq.ft. store in Pace, FL during January 1998. Starbucks Coffee Company (206-447-1575) recently opened a unit in downtown Seattle, WA. The company plans to open 1,200 sq.ft. coffee shops at Stockdale Village Shopping Center, The Marketplace Shopping Center and inside a new Barnes & Noble bookstore in Bakersfield, CA. Bugle Boy (805-579-2339) recently opened its first mall location in FL with a 4,000 sq.ft. store at Regency Square Mall in Jacksonville. Walt Disney Co. (818-265-3382) plans to open as many as 30 DisneyQuest facilities nationwide in the coming years. DisneyQuest units will feature interactive games and motion-simulator rides. The first unit, expected to be 100,000 sq.ft., will open in Orlando, FL during Summer 1998 and a second unit is planned for Chicago, IL during 1999. Home Depot (770-433-8211) plans to open a store in Rock Hills, SC during March 1998 and a 114,000 sq.ft. store at South Bay Center in Dorchester, MA during early 1998. Borders, Inc. (313-913-1323) plans to open a 22,586 sq.ft. Borders Books Music & Cafe in Mount Kisco, NY during Fall. Cinema Grill (312-849-3100) plans to open a 12,000 sq.ft. three-screen dinner-theater at Eastland Mall in Charlotte, NC during December. Cinema Grill, which operates 21 locations nationwide, combine movie watching with dining. Hannaford Bros. Supermarket (919-575-5600) plans to open a 55,000 sq.ft. store in Cornelius, NC. The company also plans to open a 55,000 sq.ft. supermarket at Sterling Creek Commons in Portsmouth, VA. Lowe's Co., Inc. (910-651-4223) plans to open stores averaging 150,000 sq.ft. in Garland and Rockwell, TX during early 1998. Meijer's, Inc. (616-453-6711) plans to open a 230,000 sq.ft. store in Merrillville, IN during early 1998. Sears, Roebuck & Co. (847-286-0545) is considering whether or not to build an 85,000 sq.ft. store at Hemet Valley Mall in Hemet, CA. Fred Meyer, Inc. (503-797-3450) is considering whether or not to build a 128,000 sq.ft. store fronting Highway 101 in Florence, OR. The site is across from a proposed factory outlet center. CompUSA, Inc. (972-982-4000) plans to open a 40,000 sq.ft. store in Honolulu, HI during summer 1998. It will be the company's first location in HI.
New Construction R.J. Waters & Associates, Inc. is developing East Cocalico Town Center in Denver, PA. The 200,000 sq.ft. project will be anchored by a supermarket and junior department store. Three pad sites remain available for lease. The company is developing Warwick Towne Center in Lititz, PA. The 130,000 sq.ft. project will be anchored by Giant supermarket and a medium-sized retailer. Three pad sites are available for lease. The company is developing Birmbury Commons in West Chester, PA. The 125,000 sq.ft. project will be anchored by a supermarket. Four pad sites remain available for lease. The company is developing Jenners Village in Penn Township, PA. The 110,000 sq.ft. project will be anchored by a supermarket and drug store. Four pad sites are available for lease. The company is developing Atherton Commons in State College, PA. The 70,000 sq.ft. mixed-use project is anchored by Red Lobster, a hotel, office space and retail space. Two pad sites remain available for lease. The company is developing Granite Run Center in Media, PA. The 55,000 sq.ft. project has space available for lease, The company is also developing East Bradford Shops in West Chester, PA. The 40,000 sq.ft. project is anchored by Happy Harry's Discount Drug. The site has one pad site available for lease. For more information, contact R.J. Waters & Associates, Inc. at (610-444-6000). CBL & Associates Properties, Inc. recently completed the development of phase I of Springhurst Towne Center in Louisville, KY. The 828,000 sq.ft. power center is anchored by Target in 122,000 sq.ft., Kohl's Department Store in 87,000 sq.ft., Party Source in 43,000 sq.ft. and Kitchen & Company in 26,000 sq.ft. Other anchors at the project will include a 238,000 sq.ft. Meijers opening during March 1998; a 19-screen 77,000 sq.ft. Cinemark movie theater opening next month; a 30,000 sq.ft. T.J. Maxx opening during November; a 15,000 sq.ft. Old Navy store opening during November and a 20,000 sq.ft. Books-A-Million opening late this year. In addition, the power center will have 23 small shops and six outparcels occupied by O'Charley's, On The Border, Sonic Drive-In, Steak 'N Shake, Wendy's and Great Financial Bank of Louisville. For more information, contact CBL & Associates Properties, Inc. at (423-855-0001), Fax (490-8662). Forest City Ratner Cos. recently broke ground on a 13-level, 335,000 sq.ft., $160 million retail and entertainment center in the Times Square area of New York City, NY. The project will include a 25-screen, 5,000 seat AMC Theater; a 60,000 sq.ft. Madame Tussaud's Wax Museum (its first in North America); a 20,000 sq.ft. HMV Records store and a 20,000 sq.ft. Just For Feet athletic footwear store. A variety of theme restaurants will also be located at the project. A Spring 1999 opening is planned. For more information, contact Forest City Ratner Cos. at (216-267-1200). Developers Diversified Realty Corporation recently broke ground on phase II of Peach Street Square Shopping Center in Erie, PA. The 71,250 sq.ft. expansion will be anchored by a 26,250 sq.ft. PetsMart and a big box electronics store. Phase I, which opened last year, has a GLA of 404,262 sq.ft. and is anchored by Wal*Mart, Lowe's Home Improvement, Cinemark, Kohl's and Media Play. Total GLA after completion of phase II will be 475,512 sq.ft. The company also recently broke ground on Merriam Town Center in Merriam, KS. The 486,000 sq.ft. project will be anchored by a 111,847 sq.ft. Home Depot which is expected to open next month. Other tenants, which are expected to begin opening during Spring 1998, will include Cinemark Theatre, Hen House Supermarket, T.J. Maxx, PetsMart, OfficeMax, Party City, Chili's and Blockbuster Video. For more information, contact Developers Diversified Realty Corporation at (216-247-1740). Thomas J. Klutznick Co. is developing a full block retail structure on North Michigan Avenue's Magnificent Mile in Chicago, IL. Tenants at the project will include a 15,000 sq.ft., two-level Tiffany & Co. store; a 37,000 sq.ft., four-level Polo Ralph Lauren store; a 22,000 sq.ft., two-level Pottery Barn store; a three-level, 37,000 sq.ft. Banana Republic store and a 43,000 sq.ft. CompUSA computer store. Tenants are expected to begin opening next month. The site is designed to give the appearance of separate buildings joined together, however, the development is a single 217,000 sq.ft. structure. The retailers will not be connected and each will have its own separate storefront. In addition, the site is being developed with the necessary infrastructure to support a hotel tower that may be added at a later date. For more information, contact Thomas J. Klutznick of Thomas J. Klutznick Co. at (312-280-1906). Prime Retail, Inc. and Sansone Group have agreed to develop an outlet/value retail and entertainment center in Eureka, MO. The 700,000 sq.ft. enclosed mall will be built on a 113-acre parcel of land located across from Six Flags Over Mid-America theme park. The project is expected to open during early 1999 and will be tenanted by designer and specialty outlet stores from all categories, a variety of big box value retailers, a multi-screen movie theater and several entertainment and theme restaurants. For more information, contact Prime Retail at (410-234-1755) or Sansone Group at (314-726-6888). Chelsea GCA Realty, Inc. recently broke ground on Wrentham Village Premium Outlets in Wrentham, MA. The $76 million project, which is being built in three phases, is expected to open during Fall with 50 stores. For more information, contact Chelsea GCA Realty, Inc. at (201-228-6111).
Sources of Financing Capital Leasing Funding, L.P. (212-587-7676) recently provided $8.1 million credit lease financing for a Linens 'N Things with a CVS guarantee in Braintree, MA under its new proprietary Extended Amortization Program. CLF's Extended Amortization Program enables a borrower to finance a net lease with an investment grade tenant through the first renewal period of the lease on a non-recourse, self-amortizing basis. As a result, the borrower receives up to 20% more loan proceeds (or alternatively free cash flow) while being able to defer up to 40% of the taxable amortization income to the first renewal period of the lease. In the case of Linens 'N Things, CLF's borrower was able to increase its loan proceeds to $8.1 million. Between increased loan proceeds and cash flow, the borrower received over $300,000 more than if he had financed just the initial term of the lease. Equally important, they were able to defer approximately $2 million of taxable amortization income to the last five years of the lease. The loan was closed in three weeks. In addition to the Extended Amortization Program, CLF and NationsBank recently announced a new "one close" construction permanent loan program. Developers seeking construction and permanent credit lease financing for properties net leased to investment grade tenants can now combine the closing into one process. Not only does the developer save time and money on the closing but is able to rate lock his permanent loan before construction begins. The first property financed under this program was an Eckerd Drug store being developed in TN. The Ackman-Ziff Real Estate Group LLC (212-697-3333) recently arranged $17 million in financing for a Bradlees-anchored shopping center in MA. Aries Capital (312-642-0100) recently funded two retail properties in Orlando, FL totaling $9.225 million. Lehman Brothers purchased the loans for securitization. The 535 Plaza, received $5.125 million in financing. The site consists of two retail buildings and a restaurant occupied by International House of Pancakes, Subway and Athlete's Foot. The second multi-tenanted retail center received $4.1 million in financing. The company also recently funded loans totaling $5.6 million for two retail properties in KS. The loans were purchased by Smith Barney for securitization. The first project, Stanley Station Shopping Center in Overland Park, received $3.675 million of financing. The 65,160 sq.ft. project is anchored by Quik Trip, Hardee's and La Petite. The second project, Trailridge Shopping Center in Shawnee Mission, received $1.93 million of financing. The site consists of three buildings with 10 tenants anchored by Pet Food Save Mart, Pogo's and a movie theater.
Buyers & Sellers Alper Commercial has the listing to sell Breakwater Plaza in North Cape May, NJ. The 48,000 sq.ft. project is anchored by a dark Shop 'n Bag. The asking price is $1.4 million. For more information, contact Susan McGaughran at (609-345-1800), Fax (345-8228). Kin Properties, Inc. is in the market to acquire single tenant properties nationwide. Properties of interest are occupied by Kmart, Target, Wal*Mart, supermarkets and other retailers. For more information, contact Lee Cherney at (914-683-8080, Ext. 111), Fax (683-8088). Petroleum Properties Corp. is in the market to acquire gasoline stations under lease to major oil companies, privately-owned gas stations, unimproved one to five acre parcels zoned commercial and shopping center outparcels. Properties of interest are located in the following areas: In Delaware: New Castle, Sussex and Kent counties. In Maryland: Montgomery, Prince George's, Anne Arundel, Howard, Hartford and Baltimore counties. In New Jersey: all counties northeast and west of Mercer, Atlantic, Camden, Gloucester and Burlington counties. In Pennsylvania: Chester, Bucks, Mongtomery, North Hampton, Cumberland, Lancaster, Delaware, York, Philadelphia and Dauphin counties. In Virginia: Arlington, Fairfax and Prince Williams counties. For more information, contact William Saslaff at (410-435-7000), Fax (435-7502). PFG Capital Corporation has the listing to sell a 42,708 sq.ft. grocery/credit anchored shopping center in Hamburg, PA and a 59,900 sq.ft. grocery/credit anchored shopping center in Roaring Spring, PA. The company also has the listing to sell a 25,000 sq.ft. newly constructed Staples in Carlisle, PA. For more information, contact Michael Rhoads at (717-840-0087). Prime Locations has the listing to sell 87 former Color Tile locations in AL, AZ, AR, CA, CO, CT, DE, FL, IL, IN, IA, KY, LA, MD, MA, MI, MN, MT, NE, NH, NJ, NY, ND, OK, PA, RI, TN, TX, VA, WV, WI and WY. For more information, contact Jim Matthews at (972-991-7000), Fax (991-1218). Anthony C. Giamo Real Estate has the listing to sell four land parcels in Limerick Township, PA. Sites available include a 13+ acre site; a 4.7 acre site approved for retail/office; a 3.5 acre site approved for a 36,000 sq.ft. office building and an 8.5 acre site approved for a 70,000 sq.ft. retail/office building. The company also has the listing to sell two land parcels in Pottstown, PA. The sites include a seven-acre parcel and an eight-acre parcel. For more information, contact Anthony Giamo at (610-489-3033), Fax (489-3433). Jeffrey A. Hubley Company has the listing to sell an 80,000 sq.ft. shopping center in New Castle, IN. The project is anchored by Hill's Department Store. For more information, contact Jeff Hubley at (317-469-4596), Fax (469-4000). Berger Realty has the listing to sell a former 200-seat Chinese restaurant on a three acre site in Egg Harbor Township, NJ. The site is located in front of the English Creek Shopping Center which is anchored by ShopRite, Thrift Drug, West Coast Video, A.C. Moore Arts & Crafts and Encore Books. For more information, contact Ben Schreiber at (609-390-9300). Jeffery Realty, Inc. has the listing to sell Laneco Plaza in Wind Gap, PA. The 115,000 sq.ft. project is anchored by Laneco. The asking price is $3.5 million and assumable financing of $2.63 million at 9.25% is required. The company has the listing to sell Park Plaza Shopping Center in Oldbridge, NJ. The 59,000 sq.ft. project is anchored by Quick Chek, Buy Rite, Wind Mill and a pharmacy. The asking price is $4 million with a 10% cap rate, plus all vacancies to the buyer. Financing is available. The company has the listing to sell Franklin Mall in Somerset, NJ. The neighborhood center has an asking price of $1.3 million. The company has the listing to sell 14 acres of land in Greenbrook, NJ. The corner site is zoned commercial. The company also has the listing to sell a 24,000 sq.ft. retail site fronting Route 17 in Paramus, NJ. The building is anchored by Petals, Safavina Carpets and First Union. The asking price is $4.9 million. For details, contact Roy W. Pascal at (908-668-9600), Fax (668-5225). ARC Properties, Inc. on behalf of a partnership with J.P. Metz Co., ADP International, Inc. and the Ourisman Partners, recently acquired a four-story retail facility on Rittenhouse Square in Philadelphia, PA leased to Urban Outfitters. ARC Properties is also in the market to acquire single tenant & build-to-suits, land for development, commercial properties for expansion, NNN with 15 year terms and increases in major markets nationwide. The company plans to invest $65 million to acquire such projects. For more information, contact ARC Properties, Inc. at (973-345-1900), Fax (345-FAX1). Aries Deitch & Endelson, Inc. has the listing to sell Whalley Crossing in New Haven, CT. The project is anchored by Walgreen's, Dunkin Donuts and Dollar Haven Discount. The asking price is $2.5 million. For more information, contact Victor Benel at (914-949-2800, Ext. 114). Venture Stores, Inc. plans to sell 49 of its stores to Kimco Realty Corp. and then lease them back. The stores are located in seven states. The deal is valued at $135 million. For more information, contact Venture Stores, Inc. at (314-281-5500) or Kimco Realty Corp. at (516-869-9000). Commercial Realty Resources brokered the sale of the Parallel Road Shopping Center in Kansas City, KS. The 23,519 sq.ft. project is anchored by AutoZone. For more information, contact Greg Patterson at (816-931-3101). Olympia Partners has the listing to sell an On The Border ground lease in Amarillo, TX. The site is leased for 10 years, with four five-year options. The asking price is $725,000. The company has the listing to sell a NNN leased Pier 1 store in Amarillo, TX. The site is leased for 10 years, with three five-year options. The asking price is $1.14 million. For more information, contact Thomas Mather at (317-571-9400), Fax (571-0037). Richard Ray Real Estate has the listing to sell a 10,430 sq.ft. building on the corner outparcel of Piney Green Shopping Center. The project is anchored by Kmart, Food Lion and Family Dollar. For more information, contact Betty Robinson at (910-346-8218), Fax (346-5844). Developers Diversified Realty Corporation recently acquired a 30 acre parcel of land in Oviedo, FL. The company plans to develop a 220,000 sq.ft. shopping center on the site which will include eight major retailers ranging from 10,000 sq.ft. to 53,000 sq.ft., including a 48,000 sq.ft. HomePlace. The center is expected to open during Summer 1998. For more information, contact Developers Diversified Realty Corporation at (216-247-4700), Fax (247-1118). Simon DeBartolo Group, Inc. recently acquired a 50% interest in Dadeland Mall in Miami, FL. The 1.4 million sq.ft. project is anchored by Burdines, Burdines Home, J.C. Penney, Lord & Taylor, Saks Fifth Avenue and Limited/Express. An 800,000 sq.ft. expansion is being planned. For more information, contact Simon DeBartolo Group, Inc. at (317-636-1600). Allen Fuller Co. Realtors represents clients in the market to acquire shopping centers in FL and other strong growth markets. Preferred properties have GLAs of at least 75,000 sq.ft. and one or two anchors. Properties with upside potential, value added and/or redevelopment potential are also preferred. For more information, contact David Mufson at (305-532-0881), Fax (532-0882). Thatcher & Associates Commercial Real Estate is in the market to acquire food anchored shopping centers and/or portfolios thereof. Preferred projects have true triple NNN's with a 10% cap or better. The company is also in the market to acquire 10+ screen movie theaters. For more information, contact Thatcher & Associates at (301-898-0509), Fax (898-0268). Jackson-Cross*Oncor International represented the seller in the sale of Summerdale Plaza in Upper Darby, PA. The project is anchored by Kmart, SuperFresh, Rite Aid and Radio Shack and the transaction was valued at $4.4 million. For more information, contact Anthony Curcio at (215-561-8965). Klaff Realty, LP brokered the sale of more than 15 acres of land in Highland Park, IL to Dayton Hudson Corporation. Dayton Hudson plans to develop a 135,000 sq.ft. Target Greatland store on site which is expected to open during October 1998. The site was formerly occupied by a 99,150 sq.ft. Kmart which will be demolished. For more information, contact Marty Wynne at (312-360-1234).
Landlord's Duty To Mitigate Damages Does Not Give Tenant A Free Ride! by Kenneth A. Rosen, Esq. A tenant's duty to pay rent does not disappear when the tenant vacates premises before the expiration of the lease. But the law also imposes a duty upon a lessor of commercial or residential property to mitigate its damages by attempting to re-lease the space to another acceptable tenant. In Host Marriott Corporation vs. Fast Food Operators, Inc., Fast Food breached its sublease with Marriott by refusing to pay rent after it vacated the premises. It vacated after receiving $239,006 of condemnation proceeds and decided that a fast food restaurant could no longer profitably operate at the site. Fast Food informed Marriott that it was leaving, was terminating the sublease and would no longer pay rent as of July 31, 1993, and then it immediately vacated. Marriott refused to recognize this unilateral termination. In January 1994, despite it purported position that it had terminated its sublease, Fast Food asked Marriott to permit the sublease to be assigned to Fleetwood Kitchens, Inc. for Fleetwood's cabinetry business. Although a cabinetry business was a different use from the acceptable use specified under the sublease, Marriott immediately forwarded a credit application to Fleetwood. In consenting to assignment of the sublease, Marriott required that Fast Food's rent due to Marriott under the sublease be current at closing and that Fast Food remain liable to Marriott under the sublease. These conditions were already specified in the Fast Food sublease and were a matter of policy in all of Marriott's lease assignments. The court concluded that these conditions were justified and reasonable because the proposed assignment was for ten years with renewal options until the year 2014 while the sublease ran through the year 2028 and Fast Food had paid no rent since June 1993. Nevertheless, Fast Food rejected the condition that it remain liable under the assigned sublease. In addition, Fleetwood did not return the credit application to Marriott. On March 2, 1994, Lewis Topper, President of Fast Food, reiterated his position that Fast Food was no longer obligated under the sublease and stated that, to accommodate Marriott, he again proposed Fleetwood as a new subtenant. Marriott offered to permit the termination in exchange for a money settlement - Fast Food's condemnation proceeds of $239,006.11. Topper refused. On April 5, 1994, Marriott again forwarded a credit application to Fleetwood. The parties negotiated unsuccessfully for the next two months; Fast Food continued to refuse to pay its back rent or to remain liable under the sublease. Nonetheless, Marriott approved Fleetwood's credit and conditionally approved the assignment. Then, Fast Food insisted the Marriott pay the broker's fee. With this additional condition, the assignment to Fleetwood made no economic sense for Marriott and in June 1994 negotiations broke down, although the parties did continue some negotiations through the Winter of 1994. During this time, Fast Food attempted to sublet the vacated space and retained a broker who's sign was placed on the premises. Based on this, Marriott believed that it had no right to retake the premises and saw no reason for it to seek out another subtenant. The United States District Court concluded that Marriott had fulfilled its obligation to mitigate its damages by working closely with Fast Food to approve the assignment of the sublease to Fleetwood. The court held that Marriott had no obligation to look for another tenant while these negotiations continued. Furthermore, the court agreed that it would have been economically unreasonable for Marriott to agree to be unprotected for as long as twenty-four years under an assignment if the renewal options were not exercised, or to forgive the rent arrears or to pay the broker's commission of $19,000 up front. The court found that Marriott was under no obligation to accept any potential tenant at whatever cost and that Fast Food had no right to demand that it be placed in a better financial position than it would have been in had it not breached the sublease. Kenneth Rosen is a member of Ravin, Sarasohn, Cook, Baumgarten, Fisch & Rosen, P.C., attorneys at law, Roseland, NJ; 973-228-9600, Fax 228-2550.
Supermarkets Seeking Sites in The PA/NJ/DE Markets Clemens Markets, Inc. trades as Clemens Markets at 14 locations in PA. The supermarkets occupy spaces of 40,000 sq.ft. to 55,000 sq.ft. in power and strip centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in the existing market. For more information, contact Jack Clemens, Clemens Markets, Inc., 1555 Bustard Road, Kultsville, PA 19443; 215-361-9000, Fax 393-9886. Wegmans Food Markets, Inc. trades as Wegmans at 54 locations in NY and PA. The supermarkets occupy spaces of 75,000 sq.ft. to 100,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for six openings in the coming 18 months. Expansion will take place in the existing markets. The company prefers to purchase its sites, but will consider leases, with options, equaling 50 years. For more information, contact Paul Gilbert, Wegmans Food Markets, Inc., 1500 Brooks Avenue, Rochester, NY 14692-0844; 716-328-2550, Fax 464-4636. Riverside Market trades as Bi-Lo at 63 locations and Riverside Market at 38 locations in DE, MD, PA and WV. The supermarkets occupy spaces of 55,000 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 NY, OH or PA. Leases running 20 years are typical. For more information, contact Bob Coleman, Riverside Market, Route 255 & Shaffer Road, Du Bois, PA 15801; 814-375-5740, Fax 375-5381. Genuardi's Family Market trades as Genuardi's at 27 locations in DE, NJ and PA. The supermarkets occupy spaces of 30,000 sq.ft. in freestanding facilities and strip centers. Plans call for five openings in the coming 18 months. Expansion will take place in the existing markets. For more information, contact Skip Genuardi, Genuardi's Family Market, 805 East Germantown Pike, Norristown, PA 19401-2496; 610-277-6000, Fax 277-7783. The Penn Traffic Company trades as P&C Food Market, Quality Markets, Insalaco Markets and Big Bear at 265 locations in NY and PA. The supermarkets occupy spaces of 37,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for as many as six openings in the coming 18 months. Expansion will take place in NY, OH and PA. The company cites Wegman's, Tops and Kroger as competition. For more information, contact David Norcross, The Penn Traffic Company, State Fair Boulevard and Van Vleck, Syracuse, NY 13209; 315-457-9460, Fax 461-2403. Binghamton Giant Markets, Inc. trades as Giant Food Market at 12 locations in NY. The supermarkets occupy spaces of 30,000 sq.ft. to 40,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in NY and PA. The company prefers to purchase is locations. For more information, contact Ferris Akel, Binghampton Giant Markets, Inc., 100 Oakdale Road, Johnson City, NY 13790; 607-762-5414, Fax 762-5416. Camellia Food Stores, Inc. trades as Be-Lo Foods, Food City and Meatland at 41 locations in DE, MD, NC and VA. The supermarkets occupy spaces of 17,000 sq.ft. in freestanding facilities, power and strip centers. Growth opporunities are sought in the existing markets. For more information, contact Guy Sykes, Camellia Food Stores, Inc., 1157 Production Road, Norfolk, VA 23502; 804-855-3371, Fax 853-7405.
Food Tenants Hungry for Sites in PA/NJ/DE Markets IMKP, Inc. does business as Red Hot Hens at one location in NJ. The restaurant, specializing in rotisserie chicken, wings and ribs, is seeking spaces running 1,500 sq.ft. to 2,400 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market. For more information, contact Philip Abdala, IMKP, Inc., 251 South Route 73, Marlton, NJ 08053; 609-983-4367, Fax 983-1076. Fuddrucker's operates nine locations in NJ, NY and PA. The restaurants, serving gourmet hamburgers, occupy spaces of 5,000 sq.ft. to 7,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for at least two openings in the coming 18 months. Expansion will take place in DE, NJ and PA. Juice Express operates two locations in NJ. The stores, offering fresh fruit smoothies, occupy spaces up to 1,000 sq.ft. in downtown store fronts and food court spaces. Plans call for at least two openings in the coming 18 months. Expansion will take place in NJ, NY and PA. For more information on the above two concepts, contact Paul Fetscher, c/o Great American Brokerage, 220 East 42nd Street, 28th Floor, New York, NY 10017; 212-557-7272, Fax 557-1685. The Breadstick Baker, Inc. trades as The Breadstick Baker at three locations in PA. The stores, selling breadstick snacks, occupy spaces of 300 sq.ft. to 500 sq.ft. in regional malls. Plans call for eight openings in the coming 18 months. Expansion will take place in DE, NJ and PA. Preferred demographics include a population of 50,000 within three miles. Leases running three to five years are typical and the company is franchising. For more information, contact Mitchell Insel, The Breadstick Baker, Inc., 1362 Naamar Creek Road, Boothwyn, PA 19061; 610-497-1447, Fax 485-6439. Benihana, Inc. operates 46 locations in CA, CO, FL, GA, HI, IL, IN, KY, MD, NV, NY, OH, OR, PA, TN, TX, UT and WA. The Japanese restaurants occupy spaces of 7,000 sq.ft. to 8,000 sq.ft. in freestanding facilities. Plans call for the opening of four units in the coming 18 months. Expansion will take place in MA and PA. Preferred demographics include a population of one million within 10 miles earning $40,000 as the average income. Leases running 15 years are typical and the company is franchising. For more information, contact Thomas Bergen, Benihana, Inc., 8685 NW 53rd Terrace, Miami, FL 33166; 305-593-0770, Fax 592-6371. Mascot, Inc. does business as Cinnabon, City Chicken and Markers at 11 locations in NJ and NY. The restaurants occupy spaces of 850 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include movie theaters. Plans call for two openings in the coming 18 months. Expansion will take place in NJ. Preferred demographics include a population of 50,000 within two miles earning $45,000 as the average income. Leases running 10 years are typical. For more information, contact Marc Gillman, Mascot, Inc., 5 North Regent Street #508, Livingston, NJ 07039-1617; 201-535-1000, Fax 535-0911.
Lease Signings CB Commercial Real Estate Group (708-573-7000) leased 91,500 sq.ft. to Room & Board in Oak Brook, IL. The company plans to use 22,000 sq.ft. for a retail showroom and the remaining 69,500 sq.ft. for a distribution facility. Grubb & Ellis Commercial Real Estate Services (714-937-0881) leased 9,000 sq.ft. to Kragen Auto Parts in Santa Monica, CA and 8,840 sq.ft. to Centinela Feed & Pet Supply in Los Angeles, CA. Breslin Realty Development Corp. (516-741-7400) leased 8,500 sq.ft. to T.G.I. Friday's in Queens, NY and space to Lindt Chocolate USA at The Gardens in Great Neck, NY. Erwin L. Greenberg Commercial Corporation (410-837-2500, home page: http://www.e;greenberg.com) leased 8,000 sq.ft. to Corning Revere Factory Store at White Marlin Mall in Ocean City, MD. Metro Commercial Real Estate, Inc. (609-866-1900) leased 92,000 sq.ft. to Regal Theaters in Warrington, PA. Paragano Associates (201-376-1010) leased 54,000 sq.ft. to the Great Atlantic & Pacific Tea Company for a SuperFresh Supermarket at Windsor-Hights Center in East Windsor, NJ. CB Commercial Real Estate Group (708-948-6907) leased 5,745 sq.ft. to Verlo Mattress, 4,750 sq.ft. to Tuesday Morning, 3,200 sq.ft. to Entenmanns Bakery, 2,375 sq.ft. to Kitchen & Bath Visions and 950 sq.ft. to National Weight Loss at Washington Commons in Morton Grove, IL. Commercial Realty Resources (816-931-3101) leased 17,835 sq.ft. to Randall Stores International for a Save-A-Lot supermarket at Parallel Plaza in Kansas City, KS. Developers Diversified Realty Corporation (216-247-4700) leased 23,000 sq.ft. to OfficeMax at Cascade Crossing in Sault Ste. Marie, MI. Aries Deitch & Endelson, Inc. (914-949-2800) leased 2,000 sq.ft. to Radio Shack at Westchester Square in Hartsdale, NY.
Financial News Brinker International, Inc. (972-770-9507) reported that revenues for its fiscal year increased 14.8% to $1.34 billion from $1.16 billion during its last fiscal year. Net income decreased less than one percent from $60.9 million last year to $60.5 million. At the end of its fiscal year the company operated 537 Chili's restaurants, 99 Macaroni Grill units, 41 On The Border units, 12 Cozymel's units, 15 Corner Bakery units, five Maggiano's units and one Eatzi's unit. Just For Feet, Inc. (205-408-3000) reported that its second quarter net sales increased 92.5% to $112.368 million from $58.379 million during the second quarter last year. Comparable store sales for the quarter increased four percent. During the quarter, the company opened seven stores and currently operates 61 company and 10 franchised Just For Feet superstores in 17 states and 65 company and 52 franchised specialty stores in 18 states and Puerto Rico. General Nutrition Companies, Inc. (412-288-4600) reported that its second quarter consolidated revenue increased 22% to $266 million from $217 million during the second quarter last year. Net earnings increased 35.7% to $23 million and comparable store sales increased 9.3% for the quarter at company owned stores and 15% at franchised stores. The company operates and franchises 3,199 stores trading as General Nutrition Centers, Nature Food Centre, Health & Diet Centre, Amphora, Nature's Fresh Northwest and GNC Live Well. Boston Chicken, Inc. (303-384-5172) reported that its second quarter company revenue increased 81% to $116.596 million from $64.561 million; its net income increased 33% to $19.678 million from $15.916 million and its systemwide gross revenues increased 20% to $311.912 million from $260.472 million. The company currently operates and franchises 1,208 Boston Market restaurants in 38 states. Edison Bros. Stores, Inc. (314-331-6000) reported that its second quarter total sales fell 12% to $236.6 million from $268.8 million, with comparable store sales up 0.3% for the quarter. The company operates more than 1,700 stores throughout North America.
Real Estate Professionals Making The News Pliskin Realty and Development, Inc. (516-997-0100) announces that it has formed a strategic alliance with Grubb & Ellis/Island Realty to provide the Long Island, NY region with a full-service resource for comprehensive retail, commercial and industrial real estate services. Through the alliance the two companies will trade off each other's strengths in the areas of office, industrial and retail brokerage, as well as real estate investments and property management. Craig Realty Group (714-224-4100) announces that Eileen Bohen has been appointed director of retail asset management and general manager for Craig Realty Group and Carlsbad Company Stores. Bohen will be responsible for the management of Carlsbad Company Stores as well as the retail asset management of Craig Realty Group. The company also announces the appointment of Lynette Sonne as tenant coordinator at Craig Realty Group. Sonne's responsibilities will include overseeing the individual stores' construction and improvements. CBL & Associates Properties, Inc. (423-855-0001) announces that Jason Shelton has been appointed to its executive staff and will be assigned a group of community shopping centers with his primary responsibility being leasing. Horizon Group, Inc. (616-798-9100) announces that Paul Comarato has joined the company as vice president of operations. Bradlees, Inc. (617-380-5863) announces that Jack Bush has been elected to its board of directors. Bush, who has almost 40 years of retailing experience, is currently president of Raintree Partners, Inc. of Dallas, TX, a retail and service consulting firm. Manhattan Bagel Co., Inc. (732-544-0155) announces the promotion of Rocco Fiorentino to vice president of business development. He was previously director of business development. In his new position, Fiorentino will be responsible for developing and directing the company's growth opportunities in alternative venues such as supermarkets, convenience stores, military bases and contract feeders. Alexander Summer, L.L.C. (201-984-1717) announces that Peter Rasmusson and James Scancarella have both been promoted to senior vice president. The Schultz Organization (908-855-0001) announces the appointment of Don Rotwein as a sales associate. Whiteweld & Company (201-782-9700) announces the appointment of John Gallo as senior vice president of Whiteweld Financial Services Corp. Gallo will be responsible for providing on-site mortgage services for Whiteweld & Company. Glimcher Group (412-765-3333) announces the appointments of Ronald Yates and Richard Bowen, Jr. to the position of vice president. Edison Brothers Stores, Inc. (314-331-6000) announces that Mark Brown has been promoted to the newly created position of executive vice president, real estate and construction. In his new position, Brown will take charge of Edison's construction department, which is responsible for store design, construction and maintenance, in addition to his existing real estate duties. Ripco Real Estate Corp. (610-834-8000) announces that Jeffrey Scott Cohen, founder of Banyan Associates, Inc., has merged his company with Ripco Real Estate.
Exclusives: Leasing & Management Assignments Cameron Real Estate Services, Inc. (941-261-1111) has been selected to provide professional property management services for Grand Central Station, a 158,000 sq.ft. retail and medical plaza; the 600 Building, a 29,500 sq.ft. commercial building; the Dean Mercantile Building, an 18,875 sq.ft. retail and industrial building and Lakewood Plaza, a 24,724 sq.ft. retail project. All four of the sites are located in FL. The Goldstein Group (201-703-9700) has been appointed the exclusive agent for the Jose Tejas property fronting Route 1 in Woodbridge, NJ. The site, which is located near Woodbridge Center, can support a building up to 20,000 sq.ft. for either a retail store or a restaurant. Retailers in the area include ShopRite, OfficeMax, PetsMart, Staples, Marshalls, Computer City, Home Depot, Sports Authority, Toys 'R Us, Kids 'R Us, Caldor, TGI Friday's, Target, Chi-Chi's, Seaman's and Levitz. Griffin Properties (248-443-9000) has been named the exclusive leasing agent of Country Corners Shopping Center in Howell, MI. The 70,000 sq.ft. project will be anchored by Tutor Time Day Care, Gold's Gym, Bagelpalooza and Tropical Sands. Spaces from 2,000 sq.ft. to 20,000 sq.ft. are available for lease. Mertz Corporation (609-234-9600) has been appointed the exclusive agent for Pennsauken Plaza in Pennsauken, NJ. The 34,000 sq.ft. project is tenanted by Dunkin' Donuts, Gaetanos Steaks and Body Graphics. Faison (407-425-9700) has been appointed the leasing and managing agent of eight properties owned by Mutual of New York in Florida. The properties include the 250,000 sq.ft. West Volusia Regional Shopping Center in DeLand; the 226,000 sq.ft. The Marketplace at Delray in Delray Beach; the 154,000 sq.ft. Catalina Centre in Boynton Beach; the 194,000 sq.ft. Coral Springs Mall in Broward County; the 50,000 sq.ft. Inverrery Plaza in Lauderhill; the 181,154 sq.ft. Hillsborough Square in Tampa; the 144,011 sq.ft. Seminole Plaza in Seminole and the 167,733 sq.ft. McGregor Point in Fort Myers.
Lead Sheet Dawahares of Lexington, Inc. dba Dawahares, Martin's A. Dawahare 1845 Alexandria Drive Lexington, KY 40504-3113 606-278-0422, Fax 277-5673 Apparel The 20-unit chain operates locations in KY, OH, TN and WV. The apparel stores occupy spaces of 15,000 sq.ft. to 20,000 sq.ft. in regional malls, power and strip centers. Preferred anchors include supermarkets. Plans call for three openings in the coming year. Expansion will take place in KY. Leases running five to 10 years are typical. Deb Shops, Inc. dba Deb Shops, Deb Plus, Tops 'N Bottoms Stanley Uhr 9401 Blue Grass Road Philadelphia, PA 19114-2305 215-676-6000, Fax 698-8664 Apparel The 285-unit chain of ladies apparel stores operate locations nationwide. The stores occupy spaces of 6,000 sq.ft. in regional malls. Growth opportunities are sought nationwide. G&G Shops, Inc. dba G&G, Rave, Authentika, American High Josh Podell, Richard Rubino 520 8th Avenue New York, NY 10018 212-279-4961, Fax 714-1680 Apparel The 420-unit chain operates locations in 40 states, Puerto Rico and the U.S. Virgin Islands. The stores, selling junior and ladies ready-to-wear apparel, occupy spaces of 2,000 sq.ft. to 2,500 sq.ft. in regional malls. Preferred co-tenants include Buckle, Gadzooks, Pacific Sunwear and Wet Seal. Plans call for 30 openings during 1997 and 40 openings during 1998. Expansion will take place in the existing markets. Leases running five years are typical and the company cites local chains as competition. Michaels Stores, Inc. dba Michaels Arts & Crafts Janet Moorehouse 8000 Bent Branch Irving, TX 75063 214-409-1477, Fax 409-1576 Arts & Crafts The 449-unit chain operates locations throughout North America and in Puerto Rico. The stores, selling arts, crafts, silk floral arrangements, party supplies and home decor items, occupy spaces of 23,000 sq.ft. to 28,500 sq.ft. in freestanding facilities, power and strip centers. Plans call for as many as 45 openings in the coming 18 months. Expansion will take place nationwide. Lube Ventures dba Lube Depot Tom Strauss 1237 West 4th Street Mansfield, OH 44906 330-759-3039 Automotive The 40-unit chain operates locations nationwide. The automotive service centers, which offer quick-change oil changes, occupy spaces of 6,000 sq.ft. to 8,000 sq.ft. in freestanding facilities. Plans call for as many as 45 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 to 15 years, with options, are typical and the company is franchising. Laptop Superstore Roland Chin PO Box 8119 Natick, MA 01760 508-650-3616, Fax 653-4998 Computers The 11-unit chain operates locations in CA, GA, MA, NH and TX. The stores, specializing in computer closeouts, occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing markets as well as in NJ, NY, IL, Washington, D.C. and Canada. Ashland, Inc. dba SuperAmerica Dave Childs PO Box 14008 Lexington, KY 40512 606-357-7365, Fax 357-7997 Convenience Store The 620-unit chain operates locations in KY, WV, OH, IL, WI, PA, MN and SD. The convenience stores, which also sell gasoline, occupy spaces of 3,200 sq.ft. in freestanding facilities. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for 30 openings in the coming 18 months. Expansion will take place in KY, MN, OH, WV and WI. Preferred demographics include a population of 15,000 within two miles earning $45,000 as the average income. Leases running 20 years are typical. Federated Department Stores dba Lazarus Gary Nay 7 West 7th Street Cincinnati, OH 45202 513-579-7905, Fax 579-7185 Department Store The 55-unit chain operates locations in KY, IN, OH, PA and WV. The department stores occupy spaces of 100,000 sq.ft. in freestanding facilities and regional malls. Plans call for the opening of four units in the coming 18 months. Expansion will take place in OH and PA. CVS, Inc. dba CVS Pharmacy Dennis McMullen One CVS Drive Woonsocket, RI 02895 401-765-1500, Fax 769-6593 Drug Store The 1,450-unit chain operates locations in CT, GA, ME, MA, MD, NH, NJ, NY, PA, RI, SC, VA and VT. The drug stores occupy spaces of 8,000 sq.ft. to 11,000 sq.ft. in freestanding facilities. Plans call for 115 openings in the coming 18 months. Expansion will take place in the existing markets as well as in NC and Washington, D.C. Preferred demographics include a population of 18,000 within one mile. Discount Drug Mart Bill Malin 211 Commerce Drive Medina, OH 44256 330-725-2340, Fax 722-2990 Drug Store The 43-unit chain operates locations in OH. The deep discount drug stores occupy spaces of 23,500 sq.ft. in strip centers. Plans call for as many as five openings in the coming 18 months. Expansion will take place in the existing market. Sumarc, Inc. dba Now! Audio Video Richard Shachtman 510 Meadowsland Hillsborough, NC 27278 919-644-2344, Fax 644-1696 Electronics The five-unit chain operates locations in NC and TN. The consumer electronics stores occupy spaces of 12,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets and surrounding states. Leisure Entertainment Corp. dba Laser Quest Randy Iaboni c/o Randy Iaboni Real Estate Ltd. 12 MacPherson Avenue, #4 Toronto, ON M5R 1W8 416-925-7767 Entertainment The 50-unit chain operates locations in AZ, CA, CO, IL, KS, KY, MI, NE, NY, NC, OH, OK, PA, TN, TX, UT, VA, WA, WI and Canada. The centers, offering laser tag games, occupy spaces of 7,500 sq.ft. to 10,000 sq.ft. in freestanding facilities and strip centers. Preferred anchors include regional malls, multiplex movie theaters and other recreational facilities. Plans call for 20 openings in the coming year. Expansion will take place nationwide. Preferred demographics include a population of 250,000 within seven miles earning $40,000 as the median income. Leases running 10 years are typical. The company will also consider purchasing land parcels running 3/4 to one acre. Wayne Gretzky Roller Hockey Center Tony Gild c/o The Gild Group 7460 Girard Avenue, Suite 8 La Jolla, CA 92037 619-456-1874, Fax 456-9910 Entertainment The company operates one location in CA. The family recreation center, which features roller hockey, is seeking spaces running 30,000 sq.ft. to 56,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in AZ, CA, NV and TX. Preferred demographics include a population of 175,000 within five miles earning $40,000 as the average income. The company will also consider former ice rinks, bowling alleys and big box space for conversion to its concept. General Nutrition Centers dba GNC Live Well Benjamin Rifkin 921 Penn Avenue Pittsburgh, PA 15222 412-288-4775, Fax 288-2076 Health The two-unit chain operates locations in GA and PA. The stores, selling health foods, vitamins and mineral supplements, occupy spaces of 1,600 sq.ft. to 1,800 sq.ft. in downtown store fronts, regional malls, power and strip centers. Plans call for 10 openings during 1997 and as many as 400 openings by the end of 1998. Expansion will take place worldwide. Bestway, Inc. dba Bestway Joe McElroy 7800 Stemmons Freeway, Suite 320 Dallas, TX 75247 214-630-6655, Fax 630-8404 Home Furnishings The 62-unit chain operates locations in AL, GA, MS, NC, SC and TN. The stores, selling household appliances, electronics and furniture on a rent-to-own basis, occupy spaces of 3,400 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets. Duron, Inc. dba Duron Paint & Wallcovering Bob Waugh 10406 Tucker Street Beltsville, MD 20705 301-937-4600, Fax 937-4371 Home Improvement The 209-unit chain operates locations in FL, GA, IN, MD, NJ, NC, OH, PA, SC, TN, VA and Washington, D.C. The stores, selling paints, wallcoverings and related items, occupy spaces of 2,500 sq.ft. to 3,600 sq.ft. in freestanding facilities and strip centers. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place in the existing markets. Watch World International dba Watch World Marshall Felenstein 649 Broadway New York, NY 10012 212-475-6090 Jewelry The 15-unit chain operates locations in FL, MA, NY, TX and VA. The stores, selling an international collection of watches, occupy spaces of 150 sq.ft. in kiosk locations to 700 sq.ft. in strip centers and regional malls. Plans call for 35 openings during 1997 and 50 openings during 1998. Expansion will take place in CA, TX and the Northwestern region. Bentley's Luggage Corp. dba Bentley's Luggage Robert Young 3353 N.W. 74th Avenue Miami, FL 33122 305-591-9700, Fax 477-4131 Luggage The 107-unit chain operates locations in AK, AL, DE, FL, GA, IL, IN, KY, MA, MD, MI, MN, OH, PA, SC, TN and VA. The stores, selling luggage and gifts, occupy spaces of 2,200 sq.ft. to 5,000 sq.ft. in outlet centers and regional malls. Plans call for at least five openings in the coming 18 months. Expansion will take place in FL, LA and RI. Leases running eight years are typical. Sunglass Hut International dba Sunglass Hut Chuck Mineo 255 Alhambra Circle/Penthouse Miami, FL 33134 800-767-0990, Fax 305-461-6283 Optical The 1,896-unit chain operates locations worldwide. The stores, selling premium sunglasses and accessories, occupy spaces of 150 sq.ft to 1,500 sq.ft. in downtown store fronts, regional malls and specialty centers. Preferred anchors include The Gap, Eddie Bauer, book stores, movie theaters and restaurants. Plans call for 150 openings in the coming 18 months. Expansion will take place worldwide. Leases running 10 years are typical. U.S. Factory Outlets, Inc. dba U.S. Factory Outlets Frederic Raiff Seven Penn Plaza New York, NY 10001 212-563-3650, Fax 967-9872 Outlet The 24-unit chain operates locations nationwide. The stores, selling general merchandise at closeout prices, occupy spaces of 36,000 sq.ft. to 52,000 sq.ft. in regional malls, outlet, power and strip centers. Plans call for six openings during 1997 and eight openings during 1998. Expansion will take place nationwide, with the exception of WA. S. Freedman & Sons, Inc. dba Paper Store Barry Perlis, Jeff Glaser 3322 Pennsy Drive Landover, MD 20785 301-322-5000, Fax 772-7653 Party Supplies The seven-unit chain operates locations in MD, VA and Washington, D.C. The stores, selling party supplies and gifts, occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in freestanding facilities, power and strip centers. Growth opportunities are sought in the Mid-Atlantic region. Ezcorp, Inc. dba Ezpawn Director of Real Estate 1901 Capital Parkway Austin, TX 78746 512-314-3400, Fax 314-3403 Specialty The 250-unit chain operates locations in AL, AR, CO, FL, GA, IN, LA, MS, OK, TN and TX. The pawn shops occupy spaces of 4,500 sq.ft. in freestanding facilities and strip centers. Plans call for 50 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of at least 12,000 within one mile earning $20,000 to $25,000 as the average income. Leases running five years, with three five-year options, are typical. Henry Modell & Co., Inc. dba Modells Sporting Goods Aaron Fleishaker 498 Seventh Avenue 20th Floor New York, NY 10018-6701 212-822-1000, Fax 822-1090 Sporting Goods The 70-unit chain operates locations in MD, NJ, NY, PA and VA. The sporting goods stores occupy spaces of 15,000 sq.ft. to 20,000 sq.ft. in power centers and regional malls. Preferred co-tenants include value-oriented retailers and national retailers. Plans call for as many as 10 openings in the coming year. Expansion will take place in the existing markets. Leases running 10 years are typical.
Mergers & Acquisitions Papa Gino's (617-461-1200) recently signed a definitive agreement to purchase D'Angelo's Sandwich Shops from Pizza Hut. Terms of the deal were not disclosed and the deal is expected to close next month. The deal will create the largest pizza and sub chain in the New England region with a combined 378 restaurants operating in six New England states and NY. Plans call for the opening of 100 additional units in the coming years, with an emphasis on adding stores in CT, ME and NH. The plan also calls for both management teams to remain in place and operate the two businesses as separate chains. Currently, D'Angelo's operates and franchises 203 units and Papa Gino's operates 175 units. The Wet Seal, Inc. (714-583-9029) announces that its offer to acquire Rampage Retailing, Inc., which is in Chapter 11 proceedings in CA, has been accepted by the Bankruptcy Court. The offer calls for The Wet Seal to acquire 17 stores and one leasehold interest in regional malls in several states. The Wet Seal plans to continue to operate the stores under the Rampage name and carry upscale junior apparel and merchandise. Tuesday Morning Corp. (972-387-3562) announces that it has entered into a letter of intent with Madison Dearborn Partners in which Madison Dearborn will make an offer to buy 100% of the outstanding shares of Tuesday Morning common stock, valued at approximately $325 million. Under terms of the letter of intent, Madison Dearborn has until the end of this month to make a definitive offer to Tuesday Morning. In addition, Lloyd Ross, Chairman and CEO and Jerry Smith, President and COO, who collectively own approximately 30% of the outstanding shares of Tuesday Morning common stock, entered into an option agreement with Madison Dearborn pursuant to which Madison Dearborn has the right to acquire these individuals' shares for $25 per share in cash. If a definitive offer is made, a closing is anticipated during the first quarter of 1998. E-Z Serve Corporation (713-684-4304) announces that it has terminated its agreement to sell 37 convenience stores in central FL to Island Holdings, Ltd. The company plans to continue to actively pursue other potential buyers. E-Z Serve operates 665 convenience stores in 15 states.
Space Place Delaware Dover- A 5,300 sq.ft. space is available for lease. In New Castle- An 8,000 sq.ft. space is available for lease. For details, contact Lee Cherney or Rob James of Kin Properties, Inc. at (800-833-4162), Fax (914-683-8088). Wilmington- F&N Shopping Center is anchored by Acme and Rite-Aid. The 75,000 sq.ft. project has space available for lease. For details, contact R.J. Waters & Associates, Inc. at (610-444-6000). New Jersey Bergen County- Botany Plaza is anchored by Pathmark, GNC and Mail Boxes, Etc. The 195,000 sq.ft. project has spaces from 1,500 sq.ft. to 7,500 sq.ft. available for lease in phase I and 115,000 sq.ft., which can be divided to a minimum of 25,000 sq.ft., in phase II. Demographics include a five-mile population of 613,758 earning $51,446 as the average household income. For details, contact Dennis Cieri of Winbrook Realty Group, Inc. at (212-643-8080), Fax (643-2626). Berlin- A 4,000 sq.ft. to 6,000 sq.ft. build-to-suit space is available for lease. The site is located adjacent to A Wal*Mart/Home Depot shopping Center. In Turnersville- A one-acre site is available for lease. The site is located adjacent to a Wal*Mart/Home Depot/Target shopping center. For details, contact Equity Properties, Inc. at (610-645-7700). Eatontown- A 4,500 sq.ft. space is available for lease. In Egg Harbor- An 8,400 sq.ft. space is available for lease. In Paramus- An 8,000 sq.ft. space is available for lease. In Turnersville- A 4,736 sq.ft. space is available for lease. For details, contact Lee Cherney or Rob James of Kin Properties, Inc. at (800-833-4162), Fax (914-683-8088). Hammonton- Blueberry Crossing is anchored by C&T Farm and Tractor. The 68,000 sq.ft. project has spaces of 2,000 sq.ft. and 15,000 sq.ft. available for lease. Demographics include a 10-mile population of 67,000 earning $50,000 as the average income. The site is located near Wal*Mart. In Northfield- Center Point Plaza is anchored by Manhattan Bagel. The 32,000 sq.ft. project has spaces of 1,000 sq.ft. and 3,400 sq.ft. available for lease. Demographics include a five-mile population of 88,000 earning $52,000 as the average income. The site is located near Boscov's and Value City. In North Cape May- Bayshore Mall is anchored by Acme Supermarket and Sears Appliances. The 170,000 sq.ft. project has spaces of 1,500 sq.ft., 1,800 sq.ft., 3,000 sq.ft. and 43,000 sq.ft. available for lease. Demographics include a five-mile population of 35,000 earning $38,000 as the average income. Also in North Cape May- Cape Center has spaces of 650 sq.ft., 1,000 sq.ft. and 1,700 sq.ft. available for lease. In Oceanville- A 40,000 sq.ft. pad site is available for lease. The site fronts Route 9 and Sea Isle Boulevard. Demographics include a five-mile population of 30,000 earning $45,000 as the average income. For details, contact Susan McGaughran of Alper Commercial at (609-345-1800), Fax (345-8228). Manchester- Manchester Plaza is anchored by ShopRite, West Coast Video and Hallmark Cards. The project has in-line space available for lease, as well pad sites running 3,000 sq.ft. and 5,000 sq.ft. available for lease. The project also has space available for lease in a 185,000 sq.ft. phase II expansion. In Toms River- Bellcrest Plaza is anchored by Super Foodtown, Rite Aid and Blockbuster Video. The project has up to 13,000 sq.ft. available for lease. Also in Toms River- A 100,000 sq.ft. project will be developed on Hooper Avenue. The site is located near Ocean County Mall which is anchored by J.C. Penney, Macy's, Sears and Sterns. For details, contact Mike Parkhill of H. Hovnanian Industries at (908-922-6100). Mansfield- Mansfield Shopping Center is anchored by ShopRite, Hallmark, CVS and a 10-screen movie theater. The 160,000 sq.ft. project has spaces up to 25,000 sq.ft. available for lease. The site fronts Route 57 which generates a daily traffic count of 15,000 vehicles. The site is located near Wal*Mart, Sears and A&P. For details, contact Roy Pascal of Jeffery Realty at (908-668-9600, ext. 18), Fax (668-5225). Marlton- Tri Towne Plaza is anchored by Kmart and SuperFresh. The 176,519 sq.ft. project has space available for lease. In Old Bridge- A&P Shopping Center is anchored by A&P. The project has space available for lease. In Vineland- Kmart Shopping Center is anchored by Kmart. The project has space available for lease in a 100,000 sq.ft. expansion area. In Williamstown- Williamstown Shopping Center is anchored by CVS and DE Jones. The 72,000 sq.ft. project has an anchor position, which is divisible, available for lease. For details, contact Mary Ann Savarese of RD Management Corp. at (212-265-6600). Mount Olive- Village Green Shopping Center is anchored by A&P and CVS. The 110,000 sq.ft. project has spaces of 1,200 sq.ft., 1,950 sq.ft. and 3,200 sq.ft. available for lease. Demographics include a three-mile population of 40,000 earning $60,000 as the median income. For details, contact Neal Richards of Vanguard Realty, Inc. at (973-443-9700), Fax (966-0123), e-mail (realnj957@aol.com). Norwood- Spaces of 1,700 sq.ft. and 2,000 sq.ft. are available for lease. The site is anchored by CVS. For details, contact Howard Dean of DY-CO Management Corp. at (914-631-3000). Vineland- Cumberland Mall is anchored by J.C. Penney, Boscov's, Bradlees, Toys 'R Us and Value City. The 900,000 sq.ft. project has an 11,500 sq.ft. end cap space adjacent to Toys 'R Us available for lease. Demographics include a five-mile population of 66,194 earning $40,657 as the average income. In West Windsor- Construction on The Square at West Windsor will break ground next month. The 215,000 sq.ft. project has spaces from 2,000 sq.ft. to 60,000 sq.ft. available for lease. The site fronts Route 1 at Meadow Road, which generates a daily traffic count of 62,000 vehicles. Demographics include a five-mile population of 81,878 earning $110,575 as the average household income. The site is located near Wal*Mart, Barnes & Noble, Home Depot, Sports Authority, Kmart, Toys 'R Us, Sam's Club and Quakerbridge Mall. For details, contact Jeff Cohen of Ripco at (610-834-8000), Fax (834-1793). Pennsylvania Altoona- A 5,151 sq.ft. space is available for lease. In Bala Cynwyd- A 4,550 sq.ft. space is available for lease. In Montgomeryville- A 4,600 sq.ft. space is available for lease. In Mt. Lebanon- A 4,923 sq.ft. space is available for lease. In North Versailles- A 4,800 sq.ft. space is available for lease. In Pittsburgh- A 6,000 sq.ft. space is available for lease. In Plymouth Meeting- A 5,073 sq.ft. space is available for lease. In Upper Darby- A 4,800 sq.ft. space is available for lease. In York- A 4,823 sq.ft. space is available for lease. For details, contact Lee Cherney or Rob James of Kin Properties, Inc. at (800-833-4162), Fax (914-683-8088). Bethlehem- Kmart Shopping Center is anchored by Kmart, Thrift Drug and Piece Goods. The 166,609 sq.ft. project has space available for lease. In Walnutport- Walnutport Shopping Center is anchored by SuperFresh and Fay's Drugs. The project has a 28,000 sq.ft. space, which is divisible, available for lease. For details, contact RD Management Corp. at (212-265-6600). Bucks County- Perkasie Square is anchored by Landis Supermarket, Eckerd Drug, West Coast Video, Subway and Hair Cuttery. The 100,000 sq.ft. project has space available for lease in a 20,000 sq.ft. phase II expansion. Demographics include a five-mile population of 54,000 earning $59,000 as the average household income. For details, contact Berger-Epstein Associates, Inc. at (610-437-7070). Chalfont- A 6.5 acre site is available for lease. The site fronts Route 202. In Philadelphia- A 5.4 acre site is available for lease. The site fronts Aramingo Avenue. In Spring City- A 3.068 acre site is available for lease. The site fronts Route 724. In Upper Chichester- A 3.75 acre site is available for lease. The site fronts Route 452. For details, contact Matthew Mannix, Rich Weitzman or Lee Cooper of Equity Properties at (610-645-7700). Doylestown- Cross Keys Place is anchored by Kmart and SuperFresh. The 210,000 sq.ft. project has space available for lease. In Exton- Fairfield Place is anchored by Toys 'R Us, Sports Authority, Giant, Ross, Staples, Kids 'R Us and Pier 1. The 300,000 sq.ft. project has space available for lease. The site is located across from Exton Mall. In Kennett Square- Shoppes at Longwood Village is anchored by SuperFresh, CVS and TJ Maxx. The 140,000 sq.ft. project has a pad site available for lease. In New Hope- Logans Square is anchored by Giant and Eckerd. The 70,000 sq.ft. project has space available for lease. In Reading- Rockland Plaza is anchored by Giant, CVS and Fashion Bug. The 90,000 sq.ft. project has space available for lease. In Warminster- Center Point Place is anchored by Giant, Caldor and TJ Maxx. The 240,000 sq.ft. project has space available for lease. In Yardley- Lower Makefield Shopping Center is anchored by Giant and Eckerd. The 75,000 sq.ft. project has space available for lease. For details, contact R.J. Waters & Associates, Inc. at (610-444-6000). Dunmore- A 7,500 sq.ft. space is available for lease. In West Pittston- A 2,097 sq.ft. space is available for lease. For details, contact Jim Matthews of Prime Locations at (972-991-7000). East Norriton- East Norriton Crossing is anchored by Genuardi's Supermarket. The 110,000 sq.ft. project, which will be developed during 1998, has spaces from 2,000 sq.ft. to 24,000 sq.ft. available for lease. Demographics include a five-mile population of 164,271 earning $66,954 as the average household income. The site is located near Hechinger, Super G, Staples, TJ Maxx and Kmart. For details, contact Ben Starr of Ripco at (610-834-8000), Fax (834-1793). Harrisburg- Retail spaces from 500 sq.ft. to 5,000 sq.ft. are available for lease at Strawberry Square. Office space from 2,000 sq.ft. to 12,000 sq.ft. is also available for lease. For details, contact Ron Varano at (717-236-5700), web site (www.strawberrysquare.com). Williamsport- Giant Plaza is anchored by Giant Supermarket, Staples, CVS and JoAnn Fabrics. The 131,000 sq.ft. project has spaces of 750 sq.ft. and 4,000 sq.ft. available for lease. For details, contact Howard Dean of DY-CO Management Corp. at (914-631-3000). Wyncote- Cedarbrook Plaza is anchored by Caldor, Pathmark, Toys 'R Us, Modell's and Frank's Nursery. The 520,000 sq.ft. project has spaces from 1,500 sq.ft. to 60,000 sq.ft. available for lease. Demographics include a five-mile population of 461,596 earning $55,711 as the average income. For details, contact Dennis Cieri of Winbrook Realty Group, Inc. at (212-643-8080), Fax (643-2626). Texas College Station- College Station is anchored by Tractor Supply, Big Lots and Dollar General. The project has a 20,091 sq.ft. end cap space and two outparcels available for lease. Demographics include a three-mile population of 60,000 earning $50,000 as the average income. The site is located near Texas A&M University. For details, contact Paul Ajdaharian of Brandywine Real Estate at (813-726-6880), Fax (725-4319). For more information, contact Susan McGaughran at (609-345-1800), Fax (345-8228).
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