Issue Number 46 for the week of December 12, 1997
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The Dealmakers Issue Number 46 for the week of December 12, 1997.

My Way by Ted Kraus

We're almost done with 1997, so while I won't bore you with my predications for '98, here's some of my thoughts on the state of the industry. A perfect example of the meshugass we're in is when Ann and I had a meeting with a prospective client that had several problemed properties he wanted us to lease, sell or set on fire (I personally favored fire). We came up with several approaches on marketing and repositioning the centers, but all were rejected as being too unconventional (if conventual methods would have worked, the properties wouldn't have been vacant for the last two years). Anyway, after the meeting Ann said that with that type of imagination she feels sorry for his wife when they're in bed. I never quite looked at it that way before, but there's merit in her comments. Our industry, that only a few short years ago was dominated by doers and entrepreneurs is growing up, and it's not in a manner a mother would be proud of. As I have said before, we have too many bean counters, rigid thinkers and "suit type" people running the show and in most cases besides not being risk takers or creators, they tend to be just short of totally incompetent; it's only the booming economy that's keeping these incompetents from being unmasked and they're growing in numbers every day.

The economy is so good or at least it has the impression that rents are escalating at ridiculous rates, some centers have increased their asking (and they don't negotiate much) rate by 25% in the last six months alone. This Christmas should be a record setter, which will keep things going full blast for another six months so don't expect rental increases to slow down.

Because of a new client, I've been traveling the tri-state area (NJ, NY & PA) a lot lately and have noticed there are no vacancies to speak of in this region except for areas you wouldn't want to be in anyway. Rents in centers that were $15 a foot 18 months ago have risen to $25 a foot and the landlord insists we kiss his ring before he signs the lease. It's become so competitive that some anchors have offered to provide 100% of the financing for a proposed center to assure a location in the project. Another problem that keeps growing in popularity is that you can count on one hand the number of people left in this industry that actually keep their word if a better deal should appear and I really despise working under these conditions. I won't even comment on my thoughts on voice mail.

Of course, even with the economy storming along at record rates, there are companies going under and industries failing. Examples abound, the bagel business is having major problems; Manhattan Bagel went "11;" Brueggers Bagels was bought by Quality Dining last year with grandiose plans to expand the chain and after losing millions in 12 months was "forced" to sell the business back to the original owners at a major loss; Boston Market is buying back their Einstein Bagels from their franchisees so as to improve the bottom line. The catalog showroom industry is on it's death bed. The electronics industry is still having its share of problems. The book and music business is slowing and the pet supply business is in the doldrums and of course, the apparel industry, once the powerhouse of retailing is beginning to come back to life, but not with outstanding numbers.

It also seems that the shortage of product for acquisition is becoming more acute every day. As I have mentioned on numerous occasions, we run five e-mail forums on the Internet on commercial real estate dealmaking. Because of this, we've become the center of the universe for our 9500+/- members when it comes to asking questions (which is the reason we started the forums, it provides us with great insight into what's happening throughout the country). The most common question I get (20 to 50 times a week) is "Do I know of any property for sale, anywhere?" The answer is always the same, "Sure I do, lots, but none that anyone with intelligence would buy, they're going at a 9 to 10 1/2 % CAP with no upside (yes, I know that occasionally you can find a gem, but that's the exception not the rule). In the last three months, the amount of calls I'm receiving has doubled on this subject as it seems everyone in our industry has become desperate for deals, no matter how bad they may be. Companies are becoming more "creative," willing to buy a strip center, then flip the anchor(s) at a lower cap rate so as to increase the return on the rest of the center. They're also willing to purchase the vacant locations of retailers (if the retailer owns the fee) and shoot craps they can find a replacement. REITs are spinning off centers into separate companies, one representing secure investment and the other are "higher risks" with higher returns. When the "blank" hits the fan, I wouldn't want to own any of these high risk stocks. One center we're negotiating on doing the management and leasing for recently sold for 9 1/4% (180,000 sq.ft. five year old center, 85% rated tenants with no upside). Now why buy it? While I believe the industry has at least another good year ahead of it, when we go into the dumps and the center develops vacancies that can't command its $23 psf pro forma rate, the return will drop to eight percent.

Talking about the Net, I was discussing with a friend of mine, Steve Felix, his new business which is basically teaching the real estate industry how to use technology and the Internet to increase productivity and make deals. Steve's company is only a few months old, but he already has several clients. But being the contrarian that I am, I mentioned to him the biggest problem I saw for him was whether or not the industry is smart enough to know they're stupid (when it comes to high tech). While most of the industry is beginning to use the computer for word processing and to some degree, database management, the computer and Internet provide us with a phenomenal tool that few use to its full potential. There are dozens of software packages available that are inexpensive and can increase our presentation to clients/tenants, add photographs to our leasing letters, provide leasing tools such as broadcast fax and demographic analysis, management reports, etc. and the cost of these programs is low, so why not purchase and learn 'em now while we all have a positive cash flow going.

Scanners have dropped to as low as $200, so there's no excuse for even the smallest company not to have one; digital cameras, which are great both for presentations and internal reports, can be had for $300 or less, and if you're willing to "live" with used equipment, portable computers can be bought for as low as $500. That way when you're on a leasing/sales meeting, all the information you need is at your fingertips.

E-mail is great, as is the Internet, but only about 25% of our industry uses it, which doesn't make any sense. If you're a developer/investor with more than three centers to your name and don't have a Web Site with leasing brochures, demographics, etc. available for downloading 24 hours a day, you're making a mistake.

On a similar note, I was speaking to a friend of mine who's 45 and we were discussing the future of the industry. He, to say the least, was not overly optimistic at least when it came to the broker or small developer. He felt that a combination of technology and the mega acquisitions/mergers will put all of us "small" players out of business. I've never understood these mega acquisitions of brokerage firms; what makes a great brokerage firm is the individual broker, not the company (yes I know large companies can offer more services than the little guy) and no matter what the radically right might want, slavery is still illegal in this country so the acquiring company doesn't "own" the brokers. The larger a company becomes, the more difficult I think it is to keep top producers and therefore after the merger, the new company stagnates. Anyway, I disagreed completely with his thinking. Yes, technology will change how we work, but there will always be a need for "live" dealmakers who can both negotiate and understand the situation. The mergers, in my option will provide opportunities for the little guy to provide "outservices" and handle the problems the big boys don't want. I think the industry, as far as brokers and dealmakers are concerned, will shrink over the next decade, but those remaining will be even better paid. The secret is to make sure your one of the survivors.

 

Apparel Retailers Expanding Nationwide

Peace Frogs operates 41 locations in DE, MA, NJ, TX, VA and Washington, D.C. The stores, selling unisex casual clothing, occupy spaces of 200 sq.ft. to 300 sq.ft. inline space or a 16 x 12 VW van kiosk in regional malls. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place along the East Coast. Preferred demographics include a population of 250,000 within 10 miles earning $50,000 as the average income. Leases running three years are typical.

For more information, contact Catesby Jones, Peace Frogs, 1073 Wisconsin Avenue Northwest, Washington, D.C. 20007; 202-625-2089, Fax 337-8396.

Wilsons The Leather Experts operates 470 locations in 45 states and Washington, D.C. The stores, selling leather apparel and accessories, occupy spaces of 1,900 sq.ft. to 2,600 sq.ft. in regional malls. Preferred anchors include Dillard's, JC Penney and Nordstrom. Growth opportunities are sought nationwide. Preferred demographics include a population of 300,000 within five to ten miles earning $45,000 as the average income. Leases running 10 years are typical.

For more information, contact Jon Halper, Wilsons The Leather Experts, 7401 Boone Avenue, Brooklyn Park, MN 55428; 612-391-4938, Fax 391-4138.

Paul Jardin of USA trades as 3 Day Suit Broker, Paolo and Paul Jardin of USA at nine locations in CA. The men's apparel stores occupy spaces of 10,000 sq.ft. in freestanding facilities. Plans call for the opening of four units in the coming 18 months. Expansion will take place in Orange County, CA. Preferred demographics include a population of 300,000 within three miles earning $50,000 as the average income. Leases running five to seven years are typical and the company cites Men's Wearhouse as competition. The company also only opens its stores on Fridays, Saturdays and Sundays.

For more information, contact Sam Shahinan, Paul Jardin of USA, 6415 DeSoto Avenue, Woodland Hills, CA 91605; 818-703-7848, Fax 703-6600.

Paul Harris Stores, Inc. trades as Paul Harris at 236 locations in 27 states east of the Rocky Mountains. The women's apparel stores occupy spaces of 4,000 sq.ft. to 6,000 sq.ft. in regional malls. Preferred anchors include fashion department stores and other women's apparel stores. Plans call for 100 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 120,000 within five miles earning at least $45,000 as the average income. Leases running 10 years are typical.

For more information, contact Howard Barnett, Paul Harris Stores, Inc., 6003 Guion Road, Indianapolis, IN 46254; 317-293-3900, Fax 298-6940.

Wild West Shirt Co., Inc. does business as Shirtworks and T-Shirts West at six locations in ID, MT, UT and WA. The stores, selling imprinted sportswear, occupy spaces of 1,200 sq.ft. to 1,300 sq.ft. in regional malls. Plans call for at least one opening in the coming 18 months. Expansion will take place in MT.

For more information, contact Linda Barefield, Wild West Shirt Co., Inc., 1400 North Rouse, Bozeman, MT 59715; 406-587-5133, Fax 587-5347.

Double J of Broward, Inc. trades as Ritchie Swimwear at eight locations in FL. The stores, selling swimwear, occupy spaces of 600 sq.ft. to 1,000 sq.ft. in specialty centers near water. Plans call for one opening in the coming 18 months. Expansion will take place in Southern FL. Leases running five to seven years are typical.

For more information, contact Michael Berger, Double J of Broward, Inc., 4525 East 11th Avenue, Hialeah, FL 33013; 305-681-0672, Fax 687-0537.

Weiner's Stores, Inc. trades as Weiner's at 139 locations in LA and TX. The apparel stores occupy spaces of 25,000 sq.ft. in strip centers. Preferred co-tenants include Dollar General, Family Dollar, supermarkets and check cashing stores. Plans call for as many as 12 openings in the coming 18 months. Expansion will take place in AL, AR and MS. Preferred demographics include a population of 30,000 within three miles earning $30,000 as the average income. Leases running 10 years are typical and the company cites Wal*Mart, Marshalls, TJ Maxx, Kmart, Bealls and Palais Royal as competition.

For more information, contact Tammi Pearson, Weiner's Stores, Inc., PO Box 2612, Houston, TX 77252-2612; 713-688-1331, Fax 688-0773.

American Retail Group, Inc. does business as Modern Woman at 178 locations nationwide. The women's apparel stores occupy spaces of 4,600 sq.ft. to 5,000 sq.ft. in regional malls, specialty and strip centers. Preferred anchors include TJ Maxx and book stores. Plans call for 20 openings in the coming 18 months. Expansion will take place in major metropolitan areas nationwide, exclusive of the Southeastern region. Preferred demographics include a population of 250,000 within 10 miles.

For more information, contact Ted Pfeiffer, American Retail Group, Inc., 1850 Colonial Village Lane, Lancaster, PA 17601; 717-391-3161, Fax 391-3183.

Lids, Inc. trades as Lids at 185 locations nationwide. The stores, selling caps and related accessories, occupy spaces of 300 sq.ft. to 1,000 sq.ft. in downtown store fronts, regional malls, outlet and specialty centers. Plans call for 150 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years are typical.

For more information, contact Michael Dicosola, Lids, Inc., 60 Glacier Drive, Westwood, MA 02090; 617-326-9400, Fax 326-1661.

Mothers Work, Inc. trades as A Pea In The Pod, Mimi Maternity, Maternite, Motherhood Maternity, Maternity Works, Episode and Episode Outlet at 605 locations nationwide, exclusive of AK, ND, SD, VT, WV and WY. The stores, selling maternity and bridge apparel, occupy spaces of 800 sq.ft. to 3,000 sq.ft. in regional malls, outlet and power centers. Plans call for 75 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years are typical.

For more information, contact Edward Tress, Mothers Work, Inc., 456 North 5th Street, Philadelphia, PA 19123; 215-873-2214, Fax 625-9379.

Surreys of Florida, Inc. trades as Surreys at 21 locations in FL. The stores, selling better European menswear, occupy spaces of 2,000 sq.ft. to 2,500 sq.ft. in regional malls. Preferred anchors include Saks, Neiman Marcus, Macy's, Bloomingdale's and Burdine's. Plans call for 10 openings in the coming 18 months. Expansion will take place in CA, GA, NV, NC and SC. Leases running 10 years are typical.

For more information, contact Steven Shiekman, Surreys of Florida, Inc., 5125 NW 77th Avenue, Miami, FL 33166; 305-592-8300, Fax 592-6850.

 

Buyers & Sellers

Grubb & Ellis has the listing to sell 28 acres of land, zoned retail, at the southeast corner of Camp Creek Parkway and Interstate 20 in Douglasville, GA. The site is divisible and outparcels are also available. All utilities are available to the site. Demographics include a three-mile population of 28,444 earning $51,738 as the average household income.

For more information, contact Rob Beauchamp or Jim Knight at (770-552-2400), Fax (552-2401).

Rosen Equity Group, through a FL limited partnership known as Deerfield Associates, Ltd., recently acquired Shoppes of Deer Creek in Deerfield Beach, FL. The 209,059 sq.ft. project is anchored by Kmart, Uptons, Jo-Ann Fabrics, McDonald's, Kentucky Fried Chicken and Long John Silvers. The company is in the market to acquire anchored shopping centers, net leased, commercial properties or deals that require skilled professional attention and redevelopment. Joint venture projects will also be considered.

For more information, contact David Rosen at (516-822-5350), Fax (433-3821).

Sigma National, Inc., along with Goodman Segar Hogan Hoffler, represented Food Lion in its acquisition of 10.142 acres of land in Virginia Beach, VA.

For more information, contact Tred Spratley at (804-320-6100).

Equity Investment Group recently acquired Eastland Square Shopping Center in Columbus, OH from American Express for $2.5 million. The 133,588 sq.ft. project is anchored by Big Bear, Hancock Fabrics and Family Dollar. The company recently acquired Karl Plaza and Glengary Heights in Columbus, OH from Hudson Advisors. Karl Plaza, a 97,349 sq.ft. project anchored by Staples, was purchased for $4.55 million and Glengary Heights, a 100,473 sq.ft. project anchored by Super Saver Cinema and Aldi's, was purchased for $4.487 million. The company recently acquired Dixie Village Shopping Center in Gastonia, NC from a private investor for $6.18 million. The 223,760 sq.ft. project is anchored by Winn Dixie and Matthews Belk. The company also recently acquired Swansea Crossing in Swansea, MA from Claremont Swansea Limited Partnership for $7.85 million. The 178,928 sq.ft. project is anchored by Sears Home Life, Marshall's, Rx Place and Joann Fabrics. The company is in the market to acquire shopping centers priced below replacement cost with upside potential nationwide. The company is also looking for sites within growth markets to develop shopping centers. The company will also joint venture projects with developers who have anchor lease commitments and development sites for grocery store anchored centers or other big box users.

For more information, contact Bob Sutton or Brian Meeks at (219-426-4704) or Scott Werbel at (404-364-2984).

CB Commercial Real Estate Group, Inc. represented Home Depot in its sale of a 14.5 acre site in Huntington Beach, CA and the sale of a seven acre site in Monrovia, CA. The properties were listed for a combined total of $13 million.

For more information, contact Brian Bethea at (714-939-2211).

Eagle Realty Group has the listing to sell Westgate Plaza Shopping Center in Durham, NC. The 194,479 sq.ft. project is anchored by Circuit City, Toys 'R Us and Drug Emporium. The asking price is $7.425 million. The company has the listing to sell a 2,610 sq.ft. freestanding former Wendy's restaurant in Highland Heights, KY. The asking price is $525,000. The company has the listing to sell a 9,534 sq.ft. freestanding former Bellissimo's in Fairfield, OH. The asking price is $975,000. The company also has the listing to sell a freestanding 5,600 sq.ft. existing Fuddruckers restaurant in Cincinnati, OH. The asking price is $950,000.

For more information, contact Eric Abroms of Eagle Realty Group at (800-361-7234), Fax (513-361-7778).

Litvin/LaRue/Greenfield Commercial Real Estate, Inc. brokered the sale of a 300,000 sq.ft. Homemaker's furniture store in Chicago, IL. The site was acquired by The Clare Group.

For more information, contact Gary Greenfield at (708-773-1555).

James E. Hanson, Inc. recently completed $20 million in sub-investment grade sale/leasebacks with an institutional client. The fund has $150 million to invest in single tenant sale/leaseback transactions on the following basis: tenant can be sub-investment grade; turnaround companies with a good story; minimum size is $3 million-no maximum; no geographic restraints; properties can be existing or to be built; and the fund will do pre-construction purchases with full funding up front of land acquisition.

For more information, contact Peter Kellner at (201-488-5800), Fax (488-0246).

Northeast Pools has the listing to sell two acres of land adjacent to the arena and across from Wyoming Valley Mall in Wilkes Barre, PA. The asking price is $1.2 million.

For more information, contact A.J. Minichello at (717-822-1188), Fax (824-3027).

 

Convenience Stores Looking for Sites Nationwide

Stop-N-Go of Madison, Inc. trades as Stop-N-Go Stores at 42 locations in IL and WI. The convenience stores occupy spaces of 3,200 sq.ft. to 4,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in south central WI and northern IL. Preferred demographics include a population of 5,000 within three miles earning $40,000 as the average income. Leases running 15 to 20 years are typical.

For more information, contact John Becker, Stop-N-Go of Madison, Inc., 2934 Fish Hatchery Road, Madison, WI 53713; 608-271-4433, Fax 271-1222.

Cox Oil, Inc. does business as Little General at 25 locations in TN. The convenience stores occupy spaces of 2,400 sq.ft. in freestanding facilities. Plans call for six openings in the coming 18 months. Expansion will take place in western KY, eastern AR and the bootheel of MO. Leases running 10 years, with three five-year options, are typical.

For more information, contact Harold Petty, Cox Oil, Inc., 623 Perkins, Union City, TN 38261; 901-885-6444, Fax 885-2784.

Stockton Marketing, Inc. trades as B.P. Branded and Jiffy Stores at six locations in CA. The convenience stores, which also sell gasoline, occupy spaces of 5,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. The company prefers to purchase its locations.

For more information, contact Robert French, Stockton Marketing, Inc., 1308 West Robin Hood Drive #14, Stockton, CA 95207; 209-472-7616, Fax 477-4419.

Kent Oil, Inc. trades as Kent Kwik Convenience Stores at 26 locations in AZ and TX. The convenience stores, which also offer quick lube service, occupy spaces of 2,500 sq.ft. to 3,500 sq.ft. in freestanding facilities. Plans call for as many as six openings in the coming 18 months. Expansion will take place in AZ, TX and NM. Preferred demographics include a population of 20,000 within one mile earning $40,000 as the average income. Leases running 20 to 25 years are typical.

For more information, contact Bill Kent, Kent Oil, Inc., 3314 West Loop 250, Midland, TX 79707; 915-563-1620, Fax 697-8911.

Ottawa Oil Co., Inc. trades as Party Mart, One Stop and Courtview at six locations in OH. The convenience stores occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in freestanding facilities. Preferred anchors include Wal*Mart. Plans call for two openings in the coming 18 months. Expansion will take place in northwest OH. Preferred demographics include a population of 100,000 within five miles earning $30,000 as the average income. Leases running 15 years are typical.

For more information, contact Dennis Knott, Ottawa Oil Co., Inc., 10305 U.S. 224, Ottawa, OH 45875; 419-523-6441, Fax 523-5568.

Express Shops operates 26 locations in AL, MS and TN. The convenience stores, which also sell gasoline, occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in freestanding facilities and power centers. Preferred anchors include Wal*Mart. Plans call for three openings in the coming 18 months. Expansion will take place in northwestern AL, northern MS and southwestern TN. Leases running 20 years are typical.

For more information, contact Hamilton Smith, Express Shops, 211 Franklin Street, Tupelo, MS 38802; 601-844-7272, Fax 842-0334.

United Dairy Farmers trades as United Dairy Farmers Store at 208 locations in KY, IN and OH. The convenience stores, which also sell gasoline, occupy spaces of 3,600 sq.ft. in freestanding facilities. Plans call for six openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Clare Diedrichs, United Dairy Farmers, 3955 Montgomery Road, Cincinnati, OH 45212; 513-396-8700, Fax 396-8736.

Johnny Quik Food Stores, Inc. operates 21 locations in CA. The convenience stores occupy spaces of 2,800 sq.ft. in freestanding facilities. Plans call for five openings in the coming 18 months. Expansion will take place along Coastal CA. Preferred demographics include a population of 25,000 within two miles earning $50,000 as the average income. Leases running 20 years are typical and the company is franchising.

For more information, contact George Bral, Johnny Quik Food Stores, Inc., 5794 East Shields #101, Fresno, CA 93727; 209-291-7136, Fax 291-1656.

Dandy Double, Inc. operates 11 locations in TX. The convenience stores occupy spaces of 1,200 sq.ft. in freestanding facilities. Plans call for three openings in the coming 18 months. Expansion will take place in eastern TX. Preferred demographics include a population of 10,000 within 10 miles earning $20,000 as the average income. Leases running seven years are typical.

For more information, contact Rick Conarroe, Dandy Double, Inc., 1601B South Chestnut, Lufkin, TX 75901; 409-639-9644, Fax 639-9645.

Food Spot operates 29 locations in FL. The convenience stores occupy spaces of 2,400 sq.ft. in freestanding facilities, specialty and strip centers. Plans call for as many as four openings in the coming 18 months. Expansion will take place in the existing market.

For more information, contact Bruce Wilnar, Food Spot, 7901 Ludlam Road, Miami, FL 33143; 305-666-0642, Fax 667-5473.

The Baltus Co. trades as Baltus Bread & Butter Stores at seven locations in WI. The convenience stores occupy spaces of 3,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 20,000 within five miles earning $20,000 as the average income. Leases running 10 years are typical.

For more information, contact John Baltus, The Baltus Co., 407 South Chestnut Avenue, Marshfield, WI 54449; 715-384-3178, Fax 389-2159.

Wooten Oil Company trades as Kwik Mart Convenience Stores at 23 locations in NC. The convenience stores, which also sell gasoline, occupy spaces of 2,400 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 100,000 within 15 miles earning $20,000 as the average income.

For more information, contact S. Dillon Wooten, Wooten Oil Company, PO Box 858, Goldsboro, NC 27533-0858; 919-734-1357, Ext. 217, Fax 735-4677.

 

Sources of Financing

The Capital Markets Group of Berkshire Mortgage Finance (800-662-5787) recently closed a $14.7 million loan to replace existing construction loan financing with permanent financing for Joilet Commons Shopping Center in Joilet, IL. The 10-year loan carries a rate of 7.79% and amortizes over 30 years with a loan to value of 80%. Constructed between 1995 and 1997, the project contains 249,312 sq.ft., of which the borrower is financing 159,184 sq.ft. (63.8%). The balance of the space is owned and operated by Target and is not part of the loan. Other tenants include PetsMart, MC Sports, Gap/Old Navy, Barnes & Noble and La-Z-Boy.

Belgravia Capital Corporation (714-724-8700) has secured $14.6 million for a Hong Kong-based investor to refinance two of its Southern CA shopping centers. An $11.45 million floating interest rate loan was arranged to refinance the 114,000 sq.ft. Harbor Place Shopping Center in Fullerton, CA. The loan has a 10-year term amortized over 30 years. The project is anchored by Lucky's and Staples. The second loan is for $3.2 million to refinance the 49,943 sq.ft. Plaza del Sol in San Diego, CA. The 10-year term loan amortizes over 25 years. Belgravia Capital Corp. recently closed on a $6 million fixed-rate permanent loan for Waken & Co. to refinance its 65,000 sq.ft. Hacienda Heights Shopping Center, anchored by Ralphs, in downtown Los Angeles, CA. The company also recently closed on a $4.2 million floating rate loan for Wohl Investment Company to acquire the 36,500 sq.ft. Diamond Bar Center. The Kmart-anchored center features an 85% LTV.

The Ackman-Ziff Real Estate Group LLC (212-697-3333) recently closed on a $3.865 million acquisition loan for a 250,000 sq.ft. community shopping center in AR. The project is anchored by Wal*Mart and Buds. The loan has an 80% LTV and was priced at 170 basis points over the yield to maturity of 10-year U.S. Treasury Notes. The company also recently arranged $43.8 million of debt and equity financing for The Mall of Abilene in Abilene, TX and Sunset Mall in San Angelo, TX. The 680,036 sq.ft. Mall of Abilene is anchored by Dillard's, Grissom's, JC Penney, Sears and Service Merchandise. The 561,724 sq.ft. Sunset Mall is anchored by Bealls, Dillard's, JC Penney, Sears and Service Merchandise.

Bridge Capital, LLC (310-373-0103) recently closed an $18.5 million transaction on behalf of Arnold Industries. Arnold Industries recently acquired The Mid-Town Plaza, a 1.3 million sq.ft. mixed-use retail/office complex in Rochester, NY. The company also recently closed on a $4 million transaction on behalf of George Zamias Developer. The mezzanine loan was secured by the Cloverleaf regional mall in Richmond, VA, which was financed by Bridge Capital, Ltd. last year for $16 million. The funds will be used to provide additional equity for the construction of a regional mall in northeastern Pittsburgh, PA.

 

Mergers & Acquisitions

Schmitt Music Company (612-313-2363) recently signed a letter of intent to acquire Jenkins Music Company, a four-store piano and organ chain based in Kansas City, MO. The acquisition gives Schmitt Music Co. 23 stores in the West-Central region. Schmitt Music Co. also plans to retain the Jenkins Music Co. name.

Petco Animal Supplies, Inc. (619-453-7845) recently acquired the four-unit Pet Food Savemart, Inc. chain, based in Kansas City, MO; and the six-unit PetCare Superstore chain, based in Chicago, IL. Petco plans to convert all of the stores to its concept by mid-1998 and open additional stores in both markets.

Star Buffet, Inc. (801-463-5525) recently completed its strategic alliance with Stacey's Buffet, Inc. Under the revised terms of the alliance, Star will provide certain management and administrative services for the 23 Stacey's Buffet restaurants located primarily in FL. Star has also agreed, subject to certain conditions, to lend Stacey's up to $4.5 million over the next year, with the initial advances used for working capital. In exchange, Star will receive warrants to purchase Stacey's common stock and be granted two seats on Stacey's board of directors. Also, as part of the revised terms, Stacey's has granted an option to acquire six of Stacey's restaurants in FL and Star has elected to exercise the option. The transaction is expected to close next month. Star currently operates seven JJ North's Grand Buffet restaurants, two Casa Bonita Mexican restaurants and 16 franchised HomeTown Buffet restaurants.

Gristede's Sloan's, Inc. (212-541-5534) recently completed the acquisition of City Produce Distributors, Inc., a 29-unit chain of supermarkets in NY.

Apple South, Inc. (706-342-4552) recently signed a letter of intent to sell a 75% interest in its 10-unit Harrigans Grill & Bar restaurant chain to Pinnacle Restaurant Group for $10 million. The deal is expected to close next month.

E-Z Serve Corporation (800-368-6253) recently signed a letter of agreement to sell 104 convenience stores in eight states to FFP Partners, L.P. The proceeds from the sale will be used to reduce the company's debt. E-Z Serve also recently signed a letter of agreement to sell 31 convenience stores in central FL to Automated Petroleum & Energy Company, Inc. The deal is expected to close at the end of this month.

Quizno's Corporation (303-291-0999) recently acquired the Bain's Deli chain for $1.2 million in cash and stock. Bain's operates 63 restaurants in shopping mall food courts in the Eastern U.S. Quizno's operates 248 units in 34 states.

Mail Boxes Etc. (619-455-8800) recently announced that its board of directors has approved the sale of the company to U.S. Office Products Co. in a stock swap. Mail Boxes Etc. will operate as a wholly owned subsidiary of U.S. Office Products.

ShopKo Stores, Inc. (414-496-7234) recently announced that it plans to acquire Penn-Daniels Incorporated in a $61 million deal which includes the assumption of $43 million of Penn-Daniels debt. Penn-Daniels is a family-owned retail chain operating 19 stores trading as Jacks and Lots-A-Deals in IL, IA and MO. ShopKo plans to remodel, remerchandise and rename the stores. The deal is expected to close by the end of the month.

Home Depot (770-433-8211) recently acquired Deekay Enterprises, Inc., owner of National Blind & Wallpaper Factory, a telephone mail order service, and Habitat Wallpaper & Blinds, which operates 13 stores in IL, MO and OH. The businesses will each become separate subsidiaries of Home Depot and continue to be run by their founder. Financial terms of the all cash deal were not disclosed.

 

Lease Signings

Retail Realty Group, Inc. (813-960-8244) leased 27,608 sq.ft. to Big Lots/Odd Lots in a portion of a former Kmart store at South Square Shopping Center in Brooksville, FL; 20,000 sq.ft. to Price Cutter at Kmart Plaza in Largo, FL and 20,000 sq.ft. to Price Cutter in a portion of a former Kmart store in Lakeland, FL.

The Macerich Company (510-939-7600) leased 32,000 sq.ft. to 24 Hour Fitness at County East Mall in Antioch, CA.

Sigma National, Inc. (804-320-6100) leased 23,500 sq.ft. to OfficeMax at Marketplace Shopping Center in Christiansburg, VA.

Island Associates Real Estate, Inc. (516-587-5050) leased 12,000 sq.ft. to Gold's Gym in Port Jefferson, NY and space to Checkers Hamburgers for its first sit-down unit at Bay Shore Center in Bay Shore, NY.

Rappaport Management Company (703-205-6465) leased 1,651 sq.ft. to Starbucks at Penn Mar Shopping Center in Forestville, MD and 7,000 sq.ft. to Hollywood Video at Muddy Branch Square Shopping Center in Gaithersburg, MD.

Realco Group, Inc. (516-294-7070) leased 8,000 sq.ft. to Trader Joe's in Hewlett, NY.

Colliers Lanard & Axilbund (215-925-4600) leased spaces to Jenny Craig Weight Loss Centers at Larchmont Shopping Center in Mount Laurel, NJ and at Cherry Hill Shopping Center in Cherry Hill, NJ and space to MAB Paints at Lancaster Dress Center in Feasterville, PA.

DEI, Inc. (312-787-3280) leased 4,000 sq.ft. to Ameritech, 2,000 sq.ft. to Computer Reniassance, 3,280 sq.ft. to Fazoli's and 5,250 sq.ft. to Tri Bella Restaurant at Menard's Shopping Plaza in Batavia, IL and 30,000 sq.ft. to TJ Maxx, 35,000 sq.ft. to Bed Bath & Beyond, 14,535 sq.ft. to Old Navy, 9,000 sq.ft. to Ultra3, 13,000 sq.ft. to Factory Card Outlet, 12,000 sq.ft. to Shoe Carnival, 27,340 sq.ft. to PetsMart and 19,851 sq.ft. to Michaels Arts & Crafts at Randall Square Shopping Center in Geneva, IL.

The Sansone Group (314-727-6664) leased 17,500 sq.ft. to Cost Plus at The Shoppes at Sunset Hills in St. Louis, MO.

Goldman Retail (310-235-0444) leased 21,440 sq.ft. to Rite Aid in Arcadia, CA; 19,000 sq.ft. to Sam Ash Music in Hollywood, CA; 19,836 sq.ft. to Sam Ash Music in Canoga Park, CA; 3,100 sq.ft. to 99 Cents Store in Atwater, CA; 2,350 sq.ft. to The Pet Dept. at Kmart Shopping Center in Atasacdero, CA and subleased 3,685 sq.ft. to Video Stage from Chief Auto Parts in Reseda, CA.

CB Commercial Real Estate Group (708-948-6903) leased an 84,000 sq.ft. former Kmart store in Mundelein, IL to Driver's Mart Worldwide.

 

Closings

Montgomery Ward (312-467-2000) recently closed its remaining 33 Lechmere stores throughout New England.

Spinnaker's Restaurant (615-370-0081) recently closed its restaurants at Inlet Square Mall in Murrells Inlet, SC and at Briarcliffe Mall in North Myrtle Beach, SC. The closings were attributed to the intense competition in the area.

Wolohan Lumber and Home Improvement Center (517-793-4532) recently closed its store in Madison, WI. The company, which had operated the store since the early 1970s, cited economic factors as the reason for the closure.

Builders Square (210-616-8555) plans to close 12 underperforming stores in southern FL and the Chicago, IL area by February 1998.

Winn-Dixie Stores (904-783-5000) recently closed its supermarket on Devine Street in Columbia, SC. The company had operated the unit since 1952, but determined that it was not economically feasible to remodel the store and sign a new lease at a higher rent.

Taco Cabana, Inc. (210-804-0990) plans to exit the CO market and close 10 other restaurants in undisclosed markets. The restaurants being closed are underperformers.

 

Exclusives: Leasing & Management Assignments

DJM Asset Management, Inc. (212-922-1200) has been appointed the exclusive national real estate representative for Hit or Miss, Inc.

Ripco Real Estate Corp. (610-834-8000) has been named the leasing agent for the John A. Robbins Companies' portfolio of shopping centers, which total approximately 1.2 million sq.ft. The projects include Prices Corner Shopping Center, a 500,000 sq.ft. project anchored by Sears, JC Penney and Staples in Wilmington, DE; West Goshen Center anchored by Acme, Kmart, Staples and Chester County Book Company in West Goshen, PA; Doylestown Center, a 255,000 sq.ft. project anchored by Acme, Bon Ton and Staples in Doylestown, PA and Town Center of New Britain, anchored by Clemens Supermarket and Rite Aid, in New Britain, PA.

CNM Associates (404-869-2700) has been named the exclusive leasing agent for the 53,384 sq.ft. The Village at Southlake in Morrow, GA; the 40,301 sq.ft. The Crossings at Roswell in Roswell, GA; the 75,486 sq.ft. The Terrace at Windy Hill in Marietta, GA; the 70,082 sq.ft. Fountains of Gwinnett in Norcross, GA; the 50,168 sq.ft. Citadel Square in Stone Mountain, GA and the 38,165 sq.ft. Cumberland Festival in Atlanta, GA.

Continental Real Estate Companies (305-854-7342) has been awarded the exclusive management contract for Omni International Mall in downtown, Miami, FL. The 880,000 sq.ft. project is part of a mixed-use project that include a 528-room hotel. Anchors include JC Penney and an AMC Theater.

CB Commercial Real Estate Group, Inc. (714-939-2211) has been appointed exclusive agent to handle 38 surplus properties for Home Depot in eight Western states. The program involves the sale of excess pad sites, freestanding vacant buildings of approximately 100,000 sq.ft. and subleases of existing buildings. The majority of the assets available for sale is the surplus land adjacent to Home Depot stores.

 

Food Tenants Hungry for Sites Nationwide

Wilshire Restaurant Group, Inc. trades as Marie Callender Pie Shops, Inc. at 150 locations in AZ, CA, CO, ID, IL, MN, NV, NM, OR, TX, UT, WA, WI and Mexico. The family-style, sit down restaurants occupy spaces of 6,500 sq.ft. in freestanding facilities and regional malls. Plans call for as many as 15 openings in the coming 18 months. Expansion will take place in the Western region. The company is franchising.

For more information, contact Greg Lynds, Wilshire Restaurant Group, Inc., 1100 Town & Country Road #130, Orange, CA 92668; 714-542-3355, Fax 542-8078.

Snapps Restaurants, Inc. trades as Rally's at 81 locations in OH. The fast food restaurants, specializing in hamburgers, occupy spaces of 1,000 sq.ft. in freestanding facilities. Plans call for six openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 15,000 within one mile earning $30,000 as the average income.

For more information, contact Jeff Mattingle, Snapps Restaurants, Inc., 37 East Hudson Street, Columbus, OH 43202; 614-447-9100, Fax 447-9119.

Eegee's, Inc. trades as Eegee's at 17 locations in Tuscon, AZ. The sandwich restaurants occupy spaces of 1,800 sq.ft. to 2,350 sq.ft. in freestanding facilities. Preferred anchors include big box retailers. Plans call for as many as two openings in the coming 18 months. Expansion will take place in the existing market. Leases running 10 years are typical.

For more information, contact Bob Greenberg, Eegee's, Inc., 3360 East Ajo Way, Tucson, AZ 85713; 520-294-3333, Fax 889-4340.

Winchell's Donut Houses operates 198 locations in AZ, CA, CO, KS, OK, OR, NM, UT, WA, MO and NE. The bakeries, offering donuts, muffins and bagels, occupy spaces of 900 sq.ft. to 1,200 sq.ft. in freestanding facilities and strip centers. Preferred anchors include Kmart, Wal*Mart, Target, laundromats, video stores and supermarkets. Plans call for 16 openings in the coming 18 months. Expansion will take place in southern CA. Leases running five years are typical and the company is franchising.

For more information, contact Diane MacAdam, Winchell's Donut Houses, 1800 East 16th Street, Santa Ana, CA 92701; 714-565-1800, Fax 565-1801.

Pretzels Plus, Inc. trades as Pretzels Plus at 25 locations in KY, MD, NH, NC, PA, SC, TN and VA. The stores, selling hand rolled soft pretzels and sandwiches, occupy spaces of 600 sq.ft. to 1,000 sq.ft. in downtown store fronts and regional malls. Preferred anchors include Dillard's, JC Penney, Lord & Taylor, Macy's and Sears. Plans call for 12 openings in the coming 18 months. Expansion will take place in the existing markets as well as in OH and IN. Preferred demographics include a population of 200,000 within 20 miles earning $40,000 as the average income. Leases running five years are typical and the company is franchising.

For more information, contact Alan Harbaugh, Pretzels Plus, Inc., 639 Frederick Street, Hanover, PA 17331; 800-559-7927, Fax 633-5078.

Fast Food Management trades as Arby's and El Pollo Loco at 10 locations in Southern CA. The restaurants occupy spaces of at least 2,000 sq.ft. in freestanding facilities and power centers. Preferred anchors include TJ Maxx, Kmart and Wal*Mart. 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 two miles earning $35,000 as the average income. Leases running 20 years are typical.

For more information, contact Walter Beck, Fast Food Management, 15643 Sherman Way #430, Van Nuys, CA 91406; 818-781-8305, Fax 781-8308.

The Abkey Companies does business as Fuddruckers at 12 locations in FL and TN. The restaurants occupy spaces of 6,500 sq.ft. in freestanding facilities, power centers and regional malls. Plans call for three openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 250,000 within three miles earning $50,000 as the average income. Leases running 10 years, with two 10-year options, are typical.

For more information, contact Betty Amos, The Abkey Companies, PO Box 330927, Coconut Grove, FL 33233-0927; 305-442-4284.

Pizza USA Management, Inc. trades as Pizza USA at 11 locations in CA, FL, IA, KS and NY. The pizza restaurants occupy spaces of 750 sq.ft. in food courts at regional malls. Plans call for three openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Raymond Nevin, Pizza USA Management, Inc., 1761 West Hillsboro Boulevard, Deerfield Beach, FL 33442; 954-428-5660, Fax 428-5560.

Restaurant Systems International trades as Everything Yogurt at 150 locations in AL, AR, CA, CO, CT, DE, FL, GA, MD, MS, MI, NJ, NY, NC, NE, OH, PA, TX, VA and Washington, D.C. The restaurants, serving frozen yogurt, occupy spaces of 600 sq.ft. to 700 sq.ft. in downtown store fronts and regional malls. Preferred anchors include Dillard's, JC Penney, Macy's, Nordstrom, Sears and movie theaters. Plans call for as many as 30 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 250,000 within three miles earning $40,000 as the average income.

For more information, contact Dennis Corcoran, Restaurant Systems International, 1000 South Avenue, Staten Island, NY 10314-3403; 718-494-8888, Fax 494-8776.

Xando Coffee & Bar operates 10 locations in CT, FL, NY, PA and Washington, D.C. The restaurants, serving coffee drinks all day and alcoholic beverages and coffee cocktails at night, occupy spaces of 1,700 sq.ft. to 2,500 sq.ft. in downtown store fronts, freestanding facilities and specialty centers. Preferred co-tenants include restaurants, movie theaters and college campuses. Plans call for as many as 15 openings in the coming 18 months. Expansion will take place in the existing markets as well as in DE, MD, MA, NJ, RI and VA.

For more information, contact Craig Hantgen, Xando Coffee & Bar, c/o Esquire Properties, Inc., 575 Lexington Avenue, Suite 410, New York, NY 10021; 212-572-8388, Fax 572-8308.

Diamond Dave's Taco Co., Inc. trades as Diamond Dave's Taco Co. at 36 locations in IL, IA, MN, MO, SD and WI. The Mexican restaurants occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in freestanding facilities, regional malls and strip centers. Plans call for eight openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years, with a five-year option, are typical and the company is franchising.

For more information, contact Stan White, Diamond Dave's Taco Co., Inc., 201 South Clinton Street #281, Iowa City, IA 52240; 319-337-7690, Fax 337-4707.

Fireweed Ventures, Inc. trades as T.C.B.Y. at seven locations in ID. The restaurants, serving frozen yogurt, occupy spaces of 1,500 sq.ft. in downtown store fronts, specialty and strip centers. Preferred anchors include video stores. Plans call for as many as three openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 40,000 within three to five miles earning $50,000 as the average income. Leases running five years are typical and the company cites Baskin Robbins and Dairy Queen as competition.

For more information, contact Jim Mowbray, Fireweed Ventures, Inc., 620 West Franklin Street, Boise, ID 83702; 208-384-5010, Fax 384-1969.

Consolidated Products, Inc. does business as Steak N Shake at 250 locations in AR, FL, GA, IL, IN, IA, KS, KY, MI, MS, MO, NC, OH and TN. The restaurants occupy spaces of freestanding facilities on one acre of land near heavy retail concentrations and regional malls. Plans call for 75 openings in the coming 18 months. Expansion will take place in FL, KY, OH, IL, IA, MI, MO, GA, TN, NC and WI. Preferred demographics include a population of 40,000 within three miles earning $45,000 as the average income. Leases running 18 years, with options, are typical.

For more information, contact James Richmond, Consolidated Products, Inc., 36 South Pennsylvania Street, Indianapolis, IN 46204; 317-633-4100, Fax 656-4500.

Penn Station, Inc. trades as Penn Station East Coast Subs at 47 locations in KY, IN, MS and OH. The restaurants, serving hot submarine sandwiches and fresh cut fries, occupy spaces of 1,600 sq.ft. to 1,800 sq.ft. in freestanding facilities and strip centers. Preferred anchors include Wal*Mart, Meijer's and video stores. Plans call for 50 openings in the coming 18 months. Expansion will take place in the Midwestern, Southern and Southeastern regions.

For more information, contact Mark Partusch, Penn Station, Inc., 8276 Beechmont Avenue, Cincinnati, OH 45255; 513-474-5957, Fax 474-7116.

Villa Enterprises Management trades as Villa Pizza at 100 locations in AZ, CA, CO, CT, FL, HI, IL, IN, IA, KS, LA, MD, MA, MN, MS, NJ, NM, NY, NC, OH, OR, PA, RI, SC, TN, TX, VA, WA, WI, Italy and the United Kingdom. The quick-serve Italian restaurants occupy spaces of 500 sq.ft. to 1,200 sq.ft. in downtown store fronts, outlet centers and regional malls. Plans call for 20 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years, with a 10-year option, are typical and the company is franchising.

For more information, contact John Scotti, Villa Enterprises Management, 17 Elm Street, Morristown, NJ 07960; 201-285-4800, Fax 285-5252.

Roselyn Bakeries, Inc. trades as Roselyn Bakeries at 41 locations throughout IN. The bakeries occupy spaces of 1,200 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include supermarkets. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. Leases running 10 years are typical.

For more information, contact Jeffrey Clark, Roselyn Bakeries, Inc., 2425 East 30th Street, Indianapolis, IN 46218-2798; 317-925-8901.

Janet Russell Candies operates 17 locations in CA, ID, MT, UT and WY. The candy stores occupy spaces of at least 800 sq.ft. in downtown store fronts, regional malls and specialty centers. Plans call for as many as three openings in the coming 18 months. Expansion will take place within the existing markets.

For more information, contact R.K. Redenbaugh, Janet Russell Candies, 863 East 7th South Street, Salt Lake City, UT 84102-3498; 801-322-4662, Fax 575-8600.

Pacific Bells trades as Taco Bell at 10 locations in OR and WA. The Mexican fast food restaurants occupy spaces of 2,500 sq.ft. in freestanding facilities. Preferred anchors include Wal*Mart and movie theaters. Plans call for five openings in the coming 18 months. Expansion will take place in Portland, Newport and Astoria, OR. The company prefers to purchase its locations.

For more information, contact Dennis January, Pacific Bells, 10207 SE Mill Plain Boulevard, Vancouver, WA 98664; 360-896-6961, Fax 896-6998.

The Pizza Ranch, Inc. trades as Pizza Ranch at 91 locations in IL, IA, MI, MN, NE, ND, SD and WI. The restaurants, serving pizza and chicken, occupy spaces of 4,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls and strip centers. Preferred anchors include Wal*Mart and supermarkets. Plans call for 30 openings in the coming 18 months. Expansion will take place in the Midwestern region. Preferred demographics include a population of 30,000 within 10 miles earning $25,000 as the average income. Leases running one to seven years are typical and the company is franchising.

For more information, contact Lawrence Vander Esch, The Pizza Ranch, Inc., 1112 Main, Hull, IA 51239; 712-439-1150, Fax 439-1125.

Wahoo's Fish Taco operates eight locations in CA and CO. The restaurants, serving grilled fish tacos, occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in freestanding facilities, power and strip centers. Preferred co-tenants include Blockbuster Video, Starbucks, bagel stores and movie theaters. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place in Los Angeles, Orange and San Diego counties in CA. Preferred demographics include a population of 60,000 within five miles earning $60,000 as the average income. Leases running 10 years are typical and the company, which prefers a vanilla shell, cites Rubio's Fish Tacos, La Salsa and Baja Fresh as competition.

For more information, contact Brad Rodgers, Wahoo's Fish Tacos, c/o Curtis & Associates, 3187-F Airway Avenue, Costa Mesa, CA 92626; 714-540-1400, Fax 540-7411.

 

Who's Opening & Where

Raymour & Flanigan Furniture (315-453-2520) plans to open a 50,000 sq.ft. store in Springfield, MA and a 50,000 sq.ft. store in Newington, CT during Spring 1998.

Wal*Mart (501-273-4000) plans to open a 205,000 sq.ft. Supercenter at Mount Pleasant Corporate Center in Racine, WI.

American Multi Cinema, Inc. (816-221-4000) plans to open a 20-screen, 84,000 sq.ft. movie theater at River Park Square in Spokane, WA during Summer 1999.

Kohl's Corp. (414-703-7000) plans to open stores at Brookhollow Shopping Center and Chesterfield Crossing Shopping Center in Richmond, VA and a store at a former Wal*Mart store in Mechanicsville, VA.

Farmer Boys Food, Inc. (909-789-9080) is looking to open 15 restaurants in the Inland Empire area of CA during the next two years.

Hobby Lobby (405-745-1100) plans to open a 64,700 sq.ft. store at a former Cub Foods location at Coldwater Crossing Shopping Center in Fort Wayne, IN.

Shell Oil Company (713-241-4951) recently opened a new concept store called Encompass at the Galleria in Houston, TX. The store features one-of-a-kind items that take customers on a journey into the 21st century and to exotic places around the world. Customers can experience and purchase exclusive, top-of-the-line merchandise from countries all over the world including innovative travel-related technology, one-of-a-kind golf items, exclusive Shell racing paraphernalia and more.

Office Depot (561-265-4258) recently opened a 29,000 sq.ft. store at Midway Plaza in Opelika, AL and a 37,000 sq.ft. store at Pablo Plaza in Jacksonville Beach, FL. The company also announced plans to open as many as 100 stores during 1998.

Planet Hollywood (407-363-7827) and Aladdin Gaming LLC plan to develop a 1,000-room hotel and casino with the Planet Hollywood theme with an adjacent 2,600-room Aladdin Hotel & Casino on the site of the recently closed Aladdin Hotel & Casino. Demolition of the closed hotel will take place soon and the new complex is expected to open during 1999.

Rainforest Cafe, A Wild Place To Shop and Eat (612-945-5400) recently opened a 23,000 sq.ft. restaurant with 4,600 sq.ft. of retail space at Grapevine Mills in Grapevine, TX. The company recently opened its second Mexican unit, a 13,000 sq.ft. restaurant at Centro Comercial Santa Fe in Mexico City. The company also recently opened a 21,000 sq.ft. restaurant with 3,500 sq.ft. of retail space at Arizona Mills in Tempe, AZ.

Hollywood Video (503-677-1600) recently opened a 6,144 sq.ft. video store in Cobb County, GA. The company is planning to open a 6,500 sq.ft. stores in Somerville, Hazlet, Tinton Falls, Somerville, Garfield, Old Bridge, Jersey City, Byram, Piscataway, South Plainfield and East Brunswick, NJ.

OfficeMax, Inc. (216-921-6900) recently opened 15 stores simultaneously. Stores were opened at: Market Square in Auburn, AL; in Gadsden, AL; at Carlisle Plaza in Carlisle, PA; in Cookeville, TN; at East Town Mall in Green Bay, WI; at Spotswood Valley Square in Harrisonburg, VA; at Timberline Park Village Shopping Center in Jacksonville, FL; at Creston Park Mall in Janesville, WI; in Bradley, IL; in North Kansas City, MO; in Midland, MI; at Southern Hills Plaza in Oklahoma City, OK; at Ahwatukee Foothills in Phoenix, AZ; in Salem, OR and at Warminster Town Center in Warminster, PA. The company also plans to open a 23,500 sq.ft. store in Greenwood, SC; a 23,500 sq.ft. store at Springhurst Towne Center in Louisville, KY and a 23,000 sq.ft. TriMax Super Center at Cross Country Plaza Shopping Center in Columbus, GA during Spring 1998. In addition, the company recently opened its first unit in Japan, near the city of Nagoya. The company plans to open as many as 200 stores in Japan in the coming years.

Vons Grocery Company (818-821-7050) plans to open a 42,480 sq.ft. supermarket at Sport Chalet Village Shopping Center in La Canada, CA during June 1999.

Home Depot (770-433-8211) plans to open a 130,000 sq.ft. store at Broad Creek Crossing Shopping Center in Norfolk, VA during August 1998. In addition, the company plans to open 32 stores in FL in the coming three years. Stores scheduled to open in 1998 will be located in Venice, Vero Beach, Oviedo, Lake Wales, Pinellas Park, Hollywood and Panama City. Stores scheduled to open in 1999 will be located in Jacksonville Beach, Seminole, Brandon, Bradenton, Stuart, Weston, Coral Springs, Delray Beach and Tampa. Stores scheduled to open during 2000 will be located in Orange City, Bonita Springs, Miami Shores, Lakeland, Jacksonville, Titusville, Winter Park, Palm Bay, Orlando, Kissimmee, Delray Beach, West Palm Beach, Miami and Tampa (2).

Starbucks (206-447-7954), which operates nine stores in the Phoenix, AZ market, plans to open 10 additional units, including its first Tucson, AZ locations, by the end of January.

Gaylan's Trading Co. (614-479-7000) plans to open a two-level 170,000 sq.ft. sporting good store at The New E Zone in Schaumburg, IL during Summer 1998.

Triarc Restaurant Group (954-351-5215), franchisor of Arby's Restaurants, recently signed a development agreement with Sybra, Inc. (404-587-0290) which calls for the development of 150 Arby's Restaurants in the coming 10 years. The units will be developed in the markets of Harrisburg and Philadelphia, PA; Baltimore, MD; Detroit, MI; Dallas/Fort Worth, TX and Washington, D.C.

Tiffany & Co. (212-605-4132) plans to open a 6,900 sq.ft. store at The Americana at Manhasset in Manhasset, NY during Summer 1998. The company recently opened a store at SouthPark Mall in Charlotte, NC and a 758 sq.ft. boutique at El Palacio de Hierro department store in Mexico City, Mexico. It is the company's first store in Mexico City.

The National Basketball Association (212-407-8000) plans to open the first NBA Store, a 15,000 sq.ft. unit, at 666 Fifth Avenue in New York, NY during September 1998. The store will be the first retail establishment owned, operated and merchandised by a North American sports league.

 

Lead Sheet

American Multi Cinema

dba AMC

Alan Benjamin

2049 Century Park East

Los Angeles, CA 90067

310-553-0515, Fax 553-1734

Entertainment

The 222-unit chain operates locations in AZ, CA, CO, DE, FL, GA, IL, KS, LA, MD, MA, MI, NE, NJ, NY, NC, OH, OK, PA, TX, VA, WA and Washington, D.C. The movie theaters occupy spaces of 70,000 sq.ft. to 120,000 sq.ft. in downtown store fronts, power centers and regional malls. Preferred co-tenants include book stores, sporting good stores and restaurants. Plans call for 30 openings in the coming 18 months. Expansion will take place nationwide, Europe and Asia.

Wehrenberg Theatres

Bill Pauley

1215 Des Peres Road

St. Louis, MO 63131

314-822-4520, Fax 822-8032

Entertainment

The 33-unit chain operates locations in AZ, IL and MO. The movie theaters occupy spaces of 50,000 sq.ft. to 90,000 sq.ft. in freestanding facilities and regional malls. Plans call for six openings in the coming 18 months. Expansion will take place in AR, IA and NE. Preferred demographics include a population of 100,000 within five miles earning $30,000 as the average income. Leases running 20 years are typical and the company cites AMC as competition.

House of Fabrics

James Webb

PO Box 9110

Van Nuys, CA 91409

818-385-2306, Fax 385-2390

Fabric

The 262-unit chain operates locations nationwide, exclusive of the Southeastern region and TX. The stores, selling fabrics and crafts, occupy spaces of 10,000 sq.ft. to 12,000 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include Kmart, TJ Maxx, Wal*Mart and supermarkets. Plans call for 10 openings in the coming 18 months. Expansion will take place in the Midwestern and Western regions. Preferred demographics include a population of 60,000 within three miles earning $35,000 as the average income.

24 Hour Fitness Center

Taeo Tsakos

PO Box 9071

Pleasanton, CA 94566

510-416-7370, Fax 416-3147

Fitness

The 152-unit chain operates locations in CA, HI, NV, OR and TX. The fitness centers occupy spaces of 20,000 sq.ft. to 35,000 sq.ft. in freestanding facilities, power and strip centers. Preferred co-tenants include Wal*Mart and restaurants. Plans call for at least 20 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 70,000 within three miles earning $35,000 as the average income. Leases running 10 years are typical.

Barbers Hairstyling For Men & Women

dba City Looks International

Julie Wolleat

300 Industrial Boulevard NE

Minneapolis, MN 55413

612-331-8500, Fax 331-2821

Hair Salon

The 64-unit chain operates locations in IL, IA, MI, MN, ND, PA, WI, France and Russia. The hair salons occupy spaces of 1,000 sq.ft. in downtown store fronts, regional malls, power and strip centers. Preferred anchors include upscale department stores. Plans call for 10 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 30,000 within two miles earning $40,000 as the average income. Leases running five years are typical and the company is franchising.

40 Winks, Inc.

dba 40 Winks

Gerry Barr

Westmont Plaza

Westmont, NJ 08108

609-854-5470, Fax 869-0025

Home Furnishings

The 14-unit chain operates locations in NJ and PA. The stores, selling bedding, occupy spaces of 3,000 sq.ft. in strip centers. Plans call for six openings in the coming 18 months. Expansion will take place in DE, NJ and PA. Leases running five years, with a five-year option, are typical and the company is franchising.

M.A. Bruder & Sons, Inc.

dba MAB Paints

Dan Battista

600 Reed Road

Broomal, PA 19008

800-388-2812, Fax 325-2718

Home Improvement

The 175-unit chain operates locations in AL, DE, FL, IL, IN, MD, NJ, NC, OH, PA, SC, TN, VA and Washington, D.C. The stores, selling paints and wallcoverings, occupy spaces of 3,500 sq.ft. to 5,000 sq.ft. in strip centers. Plans call for 24 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 60,000 within five miles earning $40,000 as the average income. Leases running five years are typical and the company cites Sherwin Williams and Glidden as competition.

Marks & Morgan Jewelers, Inc.

dba Marks & Morgan Jewelers

Hugh Rose

3559 Washington Road

Augusta, GA 30904

706-731-0037, Fax 736-3310

Jewelry

The 126-unit chain operates locations in AL, FL, GA, MS, NC, SC, TN and VA. The jewelry stores occupy spaces of 1,500 sq.ft. in regional malls. Plans call for 20 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical.

Leather Loft Stores

Roger Healey

PO Box 1070

Exeter, NH 03833

603-778-8484, Fax 772-3945

Luggage

The 143-unit chain operates locations nationwide. The stores, selling luggage and small leather goods, occupy spaces of 2,250 sq.ft. in outlet centers. Preferred anchors include upscale women's fashion retailers. Plans call for as many as eight openings in the coming 18 months. Expansion will take place nationwide. Leases running five years are typical.

Newberry Comics, Inc.

dba Newberry Comics

Ria McNamara

1000 Boston Turnpike

Shrewsbury, MA 01545

508-845-5000, Fax 842-6100

Music

The 15-unit chain operates locations in ME, MA, NH and RI. The stores, selling compact discs, music videos, CD-ROM software, t-shirts, comic books, posters and rock and pop culture items, occupy spaces of 3,000 sq.ft. to 4,500 sq.ft. in power centers. Preferred anchors include Home Depot and Staples. Plans call for as many as four openings in the coming 18 months. Expansion will take place in MA, NH and RI. Leases running five years are typical and the company cites Best Buy, Circuit City and Transworld as competition.

Street Corner News

Michael Karr

c/o Venture Resources, Inc.

800 West 47th Street #420

Kansas City, MO 64112

816-531-8898, Fax 531-8818

Newsstand

The 15-unit chain operates locations in CT, GA, KS, MN, MO, NJ, NY, SC and TN. The stores, selling newspapers, magazines and convenience store items, occupy spaces of 200 sq.ft. to 450 sq.ft. in regional malls. Preferred co-tenants include food courts. Plans call for 30 openings in the coming 18 months. Expansion will take place nationwide. Leases running eight years are typical and the company, which is franchising, cites Gateway News and Today's News as competition.

Sterling Vision

dba Sterling Optical, Site for Sore Eyes, Duling Optical, Singer Specs, Kindy Optical

Robert Greenberg

1500 Hempstead Turnpike

East Meadow, NY 11554

516-887-2100, Fax 390-2120

Optical

The 350-unit chain operates locations in 30 states, Canada and St. Croix. The optical stores occupy spaces of 900 sq.ft. to 1,500 sq.ft. in downtown store fronts, regional malls, power and specialty centers. Plans call for 50 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 100,000 within five to ten miles earning $35,000 as the average income. Leases running 10 years are typical and the company is franchising.

Petland, Inc.

dba Petland

Stan Miehnowicz

195 North Hickory Street

Chillicothe, OH 45607

614-775-2464, Fax 775-2575

Pets

The 140-unit chain operates locations in 28 states. The stores, selling pets, pet supplies and accessories, occupy spaces of 3,000 sq.ft. to 7,000 sq.ft. in regional malls, power and strip centers. Preferred anchors include Kmart, Target, Wal*Mart and supermarkets. Plans call for 15 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 100,000 within five miles earning at least $25,000 as the average income. Leases running five years are typical and the company, which is franchising, cites PetsMart and Petco as competition.

Heel Quik, Inc.

dba Heel/Sew Quik

Jackie Tanase

1720 Cumberland Point Drive, Suite 5

Marietta, GA 30067

770-951-9440, Fax 933-8268

Service

The 683-unit chain operates locations AL, AZ, CA, FL, GA, IL, IN, KY, LA, MA, MO, MS, MT, NC, NE, NJ, NY, OH, PA, SC, TN, TX, WY and Washington, D.C. The stores, offering quick-service shoe and garment repairs, occupy spaces of 100 sq.ft. to 600 sq.ft. in specialty centers. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for 70 openings in the coming 18 months. Expansion will take place worldwide and the company is franchising.

Genesco, Inc.

dba Journeys

Frank Fox/Harvey Olsher

Genesco Park

Nashville, TN 37202

615-367-8329,8330, Fax 367-7323

Shoes

The 167-unit chain operates locations nationwide, exclusive of the Northeastern region. The stores, selling men's and women's shoes and accessories, occupy spaces of 1,200 sq.ft. to 1,500 sq.ft. in regional malls. Preferred co-tenants include Pacific Sunwear, Gadzooks and Hot Topic. Plans call for as many as 100 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 100,000 within five miles earning $40,000 as the average income. Leases running 10 years are typical.

Signs Now Corp.

dba Signs Now

Cathy Polich

4900 Manatee Avenue West #201

Bradenton, FL 34209

941-747-7747, Fax 747-5074

Signs

The 200+-unit chain operates locations nationwide. The stores, selling vinyl signs, occupy spaces of 1,600 sq.ft. in strip centers. Preferred anchors include Office Depot, Staples and OfficeMax. Plans call for 50 openings in the coming 18 months. Expansion will take place nationwide.

Running Room

John Stanton

8537 109th Street

Edmonton, Alberta T6G 1E4

403-439-3099, Fax 433-6433

Specialty

The 25-unit chain operates locations in Canada. The stores, selling running shoes and apparel, occupy spaces of 1,500 sq.ft. to 4,000 sq.ft. in downtown store fronts, freestanding facilities and specialty centers. Growth opportunities are sought in the Pacific Northwest and Great Lakes regions. Leases running 10 years are typical. The tenant needs access to an outdoor area for its running clubs that meet at the store for organized runs and educational clinics for marathon runners.

Cal's Best, Inc.

dba Cal Stores

Richard Davila

972 Broadway

Chula Vista, CA 91911

619-476-1010, Fax 476-1099

Sporting Goods

The 10-unit chain operates locations in CA. The sporting goods stores occupy spaces of 8,000 sq.ft. to 15,000 sq.ft. in power centers. Plans call for one opening in the coming 18 months. Expansion will take place in Southern CA. Preferred demographics include a population of 100,000 within five miles earning at least $40,000 as the average income. The company, which cites Sports Chalet, Sports Authority and Oshman's as competition, prefers to purchase its locations.

Eagle Food Centers, Inc.

dba Eagle Food Center

Larry Sanford

Route 67 & Knoxville Road

Milan, IL 61264

309-787-7700, Fax 787-7895

Supermarkets

The 91-unit chain operates locations in IL, IN and IA. The supermarkets occupy spaces of 56,000 sq.ft. in strip centers. Preferred co-tenants include Home Depot, Kohl's, TJ Maxx and Target. Plans call for 12 openings in the coming 18 months. Expansion will take place in the Chicago, IL market. Preferred demographics include a population of 90,000 within three miles earning $40,000 as the average income. Leases running 20 years are typical.

The Sturges Company

dba Sturges Super Value Foods

Director of Real Estate

3466 Stellborn Road

Fort Wayne, IN 46815-4630

219-485-5861, Fax 485-5861

Supermarkets

The eight-unit chain operates locations in KY and IN. 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 CO, IN, KY, MI and OH.

Liberty Travel, Inc.

dba Liberty Travel

Richard David

69 Spring Street

Ramsey, NJ 07446

201-934-3615, Fax 934-3678

Travel Agency

The 197-unit chain operates locations in CT, DE, FL, MA, NH, NJ, NY, PA and RI. The travel agencies occupy spaces of 1,200 sq.ft. to 1,500 sq.ft. in freestanding facilities, regional malls, power and strip centers. Plans call for as many as 20 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 100,000 within five miles earning $45,000 as the average income. Leases running 10 years are typical.

Huntington Learning Corporation

Joseph Mariano

496 Kinderkamack Road

Oradell, NJ 07649

201-261-8400, Fax 261-3233

Tutoring

The 106-unit chain operates locations in CA, CO, CT, DE, IL, LA, MA, NJ, NY, NC, OH, PA, SC and VA. The tutoring centers occupy spaces of 2,000 sq.ft. to 2,500 sq.ft. in power and strip centers. Preferred anchors include Barnes & Noble. Plans call for 20 openings in the coming 18 months. Expansion will take place in CT, MD, NJ, NY and PA. Leases running five years are typical and the company is franchising.

Tehan's Merchandising, Inc.

dba Only $ One

Richard Tehan

4619 Commercial Drive

New Hartford, NY 13413

315-768-6800, Fax 768-8273

Variety

The 20-unit chain operates locations in NY. The variety stores, which sell items at the fixed price-point of one dollar, occupy spaces of 8,000 sq.ft. to 15,000 sq.ft. in power, specialty and strip centers. Preferred anchors include Kmart, Target, Wal*Mart and supermarkets. Plans call for nine openings in the coming 18 months. Expansion will take place in MA, NY and VT.

 

Space Place

Georgia

Athens- Perimeter Square is anchored by TJ Maxx, Wal*Mart, Uptons and Cory Everson Fitness Center. The 330,000 sq.ft. project has a 5,517 sq.ft. end cap space available for lease. The site is located across from Georgia Square Mall.

For details, contact Tammy Mobley of The Sport Shoe at (770-279-7494).

Indiana

Fort Wayne- Coldwater Crossing is anchored by Hobby Lobby, Service Merchandise and Wal*Mart. The 373,847 sq.ft. project has spaces of 1,500 sq.ft., 8,000 sq.ft. and 19,700 sq.ft. available for lease. Demographics include a five-mile population of 142,495 earning $43,258 as the average household income. The site is located near Glenbrook Square Mall.

For details, contact Karen Laymon of Duke Realty Investments at (317-846-4700), Fax (574-4013).

Iowa

Newton- Newton Mall is anchored by Stage Department Store and HyVee Groceries. The 150,000 sq.ft. project has spaces of 1,639 sq.ft., 1,286 sq.ft., and 2,925 sq.ft. available for lease. Demographics include a trade area population of 91,000 earning $36,235 as the average household income.

For details, contact Thomas Adams of First Management, Inc. at (402-344-4600), Fax (344-4602).

Mississippi

Tupelo- A 100,000 sq.ft. strip center will be developed just north of Big Oaks Crossing Shopping Center which is anchored by Wal*Mart SuperCenter, Sam's Wholesale Club and Goody's. A 70,000 sq.ft. space adjacent to Wal*Mart is available, as is 28,000 sq.ft. of shop space and two pad sites. The project is located at the entrance of the 900,000 sq.ft. Mall at Barnes Crossing.

For details, contact Phil Moncrief of API Development at (404-531-0003).

Missouri

Raytown- A 60,000 sq.ft. former Schnucks Supermarket is available for sublease at Highway 350 and Gregory Road. Other tenants at the center include Fashion Bug, PetCare Superstore and Hallmark Cards. Demographics include a five-mile population of 133,150 earning $35,845 as the average household median income.

For details, contact Randi Lefko of The R.H. Johnson Company at (816-561-5111), Fax (561-5551).

Nebraska

Lincoln- Van Dorn Plaza is anchored by Hobby Lobby, Ace Hardware and Hinky Dinky. The 150,000 sq.ft. project has spaces of 1,700 sq.ft., 1,800 sq.ft. and 3,600 sq.ft. available for lease. In Omaha- MidTown Plaza is anchored by Albertsons. The 86,000 sq.ft. project has spaces of 1,250 sq.ft. and 1,400 sq.ft. available for lease.

For details, contact Thomas Adams of First Management, Inc. at (402-344-4600), Fax (344-4602).

New Jersey

Clifton- Botany Plaza is anchored by Pathmark and Trust Company Bank. The 200,000 sq.ft. project has spaces of 1,500 sq.ft. and 7,500 sq.ft. available for lease as well as 113,000 sq.ft., divisible to 25,000 sq.ft., in phase II construction.

For details, contact Dennis Cieri of Winbrook Realty Group, Inc. at (212-643-8080), Fax (643-2626).

South Carolina

Columbia- Park Centre is anchored by Wal*Mart, Harris Teeter and Revco. The 190,000 sq.ft. project has land available for lease. Demographics include a trade area population of 152,034 earning $43,016 as the average household income. In Spartanburg- East Main Centre is anchored by Wal*Mart and Goody's. The 170,000 sq.ft. project has land available for lease. Demographics include a trade area population of 77,929 earning $39,226 as the average household income.

For details, contact JP Properties, Inc. at (770-352-0056).

For more information, contact A.J. Minichello at (717-822-1188), Fax (824-3027).