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Issue Number 30
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The Dealmakers Issue Number 30 for the week of August 21, 1998 My Way by Ted Kraus As I mentioned a few months ago, we decided to expand Dealmakers by periodically having special reports on various aspects of the industry. The first example being our "Brokers Resource Guide" of a few weeks ago. This issue features the E-center or for us commoners, the Entertainment Center (whatever that means). When Ann, Dawn, Janet and Chris started researching this aspect of the retail real estate business, I did not expect any earth shattering information to be uncovered, just an article on what’s happening in this niche of our industry. Well the article ended up being 32 pages (and if it wasn’t for time restraints, it could have been 64 or 88 pages, and based on what we’ve learned, if Ann had called herself a consultant instead of a reporter, we could sell the study for $75,000-$125,000). The entertainment/specialty center represents billions of dollars a year being spent by developers and retailers as they produce new concepts, billions more are being spent by local, state and federal agents (which means our tax dollars) to rejuvenate downtowns and distressed communities. Smart developers and retailers are joining the advisory boards of the redevelopment authorities and therefore are in a prime position to obtain billions in grants and tax incentives when the boards they sit on recommend developing e-centers (God, this is a great country). A lot of what’s happening right now in e-centers reminds me of the birth of outlet retailing 20 years ago or so. Mega theaters are popping up at every street corner, mall and CBD and more are on the way. The problem being that while any one company’s expansion plans are feasible, there’s no way the country can support the ambitious plans of all. In South Florida (Broward County & Miami-Dade County) alone there’s 89,000 theater seats in 485 screens. The operators better being praying for a lot of rain this year so the consumer is in the mood to see lots of movies. Many of the developers of these newfangled concepts have never developed an entertainment center in their life and while we’re all virgins at some point in our life, a lot of the money they are spending on this unproven concept is my tax dollars or public money invested via REITs. Now don’t get me wrong, I’m not against e-centers, I think they have merit, but like everything this industry gets obsessed with, we tend to over do it and not only are there hundreds of new entertainment centers and billions of dollars being spent right now, hundreds more and billions more are in the planning stages. The good news is many/most won’t be built. Remember Discovery Zone was God’s gift to developers just a few years ago and within 20 miles of my house, four 25,000 sq.ft. to 50,000 sq.ft. family entertainment centers have failed in the last two years alone. In fairness, for every negative I can give, some developer or retailer specializing in entertainment retailing can provide two or three success stories, but few have a real operating history so while there are great opportunities available in this relatively new industry, the pitfalls are humongous. However, after reading the reports and discussing all the activity with Ann, we’ve decided that this is too large of an industry to be a sub topic and therefore, we’re going to start a publication called ESP (Entertainment & Specialty Projects). Because of the tremendous growth and changes going on, we’ll publish twice a month and either fax or e-mail weekly updates to subscribers. In addition, subscribers will have access to a Home Page specializing in e-centers and specially centers (I’m determined to bring technology into our publishing arm). Because the industry is so graphic, we’ll be having lots of pictures to help convey these new concepts. While it won’t have a "My Way" (yes Virginia, there is a Santa Claus) we’re equipping reporters with electronic cameras and sending ‘em out to visit these projects, not relying solely on press releases or what we’re told or the pictures provided. We won’t have an editorial opinion, but we will make sure the facts are correct. Yes. I’m promoting our new concept (but I have the right, I own 50% of it), but I’m also trying to convey the excitement I have for what we’re learning. Will the concept last? Who knows, a few years ago power centers were all the rage and the answer to everything, now they’ve almost become boring. But for the next few years, it’s something we all should be watching. On a different topic, Ann and I just got back from the Boston Dealmaking and while it wasn’t a great show, it was good. The new facility it was held at made the show "easier" on both attendees and exhibitors. There were about 1,100 dealmakers present and while everyone was trying to hustle a deal, it wasn’t with the usual enthusiasm I’ve been seeing lately. It might be just the summer doldrums, the fact the day the show started the Dow dropped 300 points or that it was just Bostonians being their usual reserved self. It’s either my imagination or companies are hiring younger people every day. I felt, at times, that I doubled the average age of the meetings when I joined in. God, they’re young. While talking to friends who are almost as old as me, the majority said that while they had no different proof, their "gut" was telling ‘em the economy was slowing down. Almost all of ‘em were almost giddy when they then added that none of the "youngsters" have ever been involved in a downturn and it will be a bloodbath for them. During another conversation, a broker was telling me that while business is good, he’s getting nervous because tenants are starting to pay $30-35 psf in rent for space that they can’t economically justify more than $20-25. These are retailers appear to be saying "since my competitors are here, I have to be here, no matter what the cost, the hell with profits." Three years ago I started asking everyone how long they thought the boom would last. The average answer was three to four years. Two years ago I asked the same question and the answer was two to three years. Last year the answer was two years. At Boston, the majority said one year. The party may be coming to an end, but if we’re lucky, I think it can be a soft landing with just the market, REITs and a dozen or so of the big box users taking the "big" hits. Retailers Seeking Sites Throughout Florida Stacy’s Ethan Allen Interiors operates five locations in FL.
The home furnishings stores occupy spaces of 15,000 sq.ft. to 20,000 sq.ft. in
freestanding facilities and strip centers. Plans call for two openings in the coming 18
months. Expansion will take place in Southeast FL. Preferred demographics include a
population of 150,000 within five miles earning $45,000 as the average income. Autry Greer & Sons, Inc. trades as Greers at 37
locations in AL, FL and MS. The supermarkets occupy spaces of 12,000 sq.ft. to 28,000
sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in
the existing markets. J.R.B. Enterprises, Inc. does business as Silk, Silk, Silk
at 26 locations in FL. The stores, selling silk flowers and plants, occupy spaces of 1,500
sq.ft. to 1,800 sq.ft. in power centers and regional malls. Preferred anchors include Home
Depot and furniture stores. Growth opportunities are sought in the existing market.
Preferred demographics include a population of 50,000 within five miles earning $35,000 as
the average income. Leases running three to five years are typical. Stuart’s Juvenile Shoe Store, Inc. does business as Stuart’s
Juvenile Shoes at four locations in FL. The children’s shoe stores occupy spaces
of 1,200 sq.ft. to 2,000 sq.ft. in regional malls and strip centers. Growth opportunities
are sought in the existing market. Sound Advice operates 22 locations in FL. The consumer electronics
stores occupy spaces of 17,000 sq.ft. in freestanding facilities and strip centers. Growth
opportunities are sought in the existing market. The company is in the process of opening
three stores in FL. Lil’s Champ Food Stores, Inc. trades as Little Champ Food
Stores at 500 locations in FL and GA. The convenience stores occupy spaces of 3,000
sq.ft. in freestanding facilities and end-caps of strip centers. Growth opportunities are
sought in FL. Mayor’s Jewelers, Inc. trades as Mayor’s Jewelers
at 24 locations in AL and FL. The jewelry stores occupy spaces of 2,500 sq.ft. to 3,000
sq.ft. in freestanding facilities and regional malls. Growth opportunities are sought in
FL and GA. Marathon Oil Company trades as Speedway at 466 locations in
AL, FL, GA, IL, IN, KY, LA, MI, MS, NC, OH, SC, TN, WI and WV. The convenience stores,
which also sell gasoline, occupy spaces of 2,000 sq.ft. in freestanding facilities. Growth
opportunities are sought in the existing markets. Buning International trades as Buning The Florist at 14
locations in FL. The florists occupy spaces of 2,000 sq.ft. in a variety of real estate
settings. Growth opportunities are sought in the existing market. The company is
franchising. Atlantic Mower Parts & Supplies operates 18 locations in CT, FL
and MI. The stores, selling aftermarket lawnmower parts and supplies, occupy spaces of 500
sq.ft. to 1,000 sq.ft. in freestanding facilities. Plans call for as many as three
openings in the coming 18 months. Expansion will take place in FL. New Construction Simon DeBartolo Group plans to expand North East Mall in
Fort Worth, TX to 1.7 million sq.ft., from its current 1.1 million sq.ft. Under the plan,
a new 300,000 sq.ft. Dillard’s store will be built to consolidate the two
Dillard stores located at the mall’s east and west ends. A two-story Sak’s
Department Store and a Nordstrom store will also be developed as will 60,000
sq.ft. of additional specialty shop space. Current anchors Sears and Montgomery
Ward will have their stores remodeled and the 234,000 sq.ft. J.C. Penney store
will be expanded to 274,000 sq.ft. The food court will be relocated to a more central
position within the mall. The movie theater at the mall will be relocated to an adjacent
390,000 sq.ft., $41 million project called the Shops at North East Mall. That
project is expected to be completed during Fall 1999. In addition, three parking garages
will be constructed increasing the center’s parking from 5,379 to 7,600 vehicles.
Expansion of the mall is expected to cost between $150 million and $200 million and is
expected to be completed during Fall 2000. ARC Properties plans to break ground during Fall on Edison
Crossroads in Edison, NJ. The 315,000 sq.ft. project, located on Route 1 at I-287,
will be anchored by Edwards Super Food Stores and Home Depot. Additional
tenants will include Worldwide Carpet, Applebee’s and McDonald’s.
The site is expected to open during Fall 1999. The company is planning to develop Parkway
70 Plaza in Brick, NJ. The project will be anchored by Target and Lowes Home
Improvement Center. Timber Development Corp. recently broke ground on Hannah Plaza
on Cresaptown, MD. The project will be anchored by a 40,000 sq.ft. Food Lion, Dollar
General and Holiday Hair. An additional 10,000 sq.ft. of specialty shop space
will also be developed. The company is currently developing Westside Plaza in
Chambersburg, PA. Food Lion is the anchor and pad sites are occupied by Wendy’s
and Financial Trust Bank. Approximately 21,000 sq.ft. of specialty shop space will
also be developed. The company holds land options in two PA cities and plans to begin
developing two shopping centers during Spring 1999. Majestic Realty Co. is planning to develop Citrus Plaza in
Redlands, CA. The 450,000 sq.ft. power center will be anchored by a 117,000 sq.ft. Target
store, an 81,000 sq.ft. Edwards Cinema and Staples. Future plans call for
the development of a 1.3 million sq.ft. regional mall with five department store anchors
on an adjacent parcel of land. The site is located at the intersection of Highland and San
Bernardino freeways and freeway access is available. Demographics include a trade area
population of 430,000 earning $58,000 as the average household income. Apparel Retailers Looking To Open Stores in Florida Whatchamacallit Fashions operates five locations in TN and TX. The
women’s apparel stores occupy spaces of 2,000 sq.ft. to 10,000 sq.ft. in regional
malls, power and strip centers. Plans call for as many as five openings in the coming 18
months. Expansion will take place in FL, GA, TN and TX. Preferred demographics include a
five-mile population of 100,000 within five miles earning $50,000 as the average income. Harriets Flair operates 12 locations in CT, FL, NJ and NY. The
stores, selling moderately priced trendy women’s sportswear, occupy spaces of 5,000
sq.ft. to 10,000 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 markets. Preferred
demographics include a population of 25,000 within two to five miles earning $50,000 as
the average income. Dorbarry Shops, Inc. trades as Dorbarry Shops at one
location in FL. The women’s apparel store occupies a 750 sq.ft. space in a tourist
hotel. Growth opportunities are sought in the existing market. The company is only
considering space located at major tourist hotels throughout FL. Bora Bora, Inc. trades as Bora Bora at 10 locations in
Puerto Rico. The stores, selling men’s, women’s and children’s sportswear
and beachwear, occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in regional malls. Preferred
anchors include Wal*Mart. Plans call for six openings in the coming 18 months.
Expansion will take place in FL. Preferred demographics include a population of 100,000
within five miles earning $20,000 as the average income. Leases running 10 years are
typical and the company cites Gadzooks and Pacific Sunwear as competition. Frayne Sportswear Manufacturing trades as Frayne Fashions at
30 locations in FL. The stores, selling misses casualwear, occupy spaces of 2,500 sq.ft.
to 3,200 sq.ft. in strip centers. Preferred anchors include supermarkets, drug stores,
junior department stores and better discount fashion retailers. Plans call for two
openings in the coming 18 months. Expansion will take place in the existing market. The
company caters to a female clientele aged fifty-five and older and prefers to locate its
stores near retirement areas and where older winter travelers stay. Leases running three
years are typical and the company cites Beall’s, Today’s Woman and Belk’s
as competition. Sunworks operates eight locations in FL. The apparel stores occupy
spaces of 2,000 sq.ft. to 4,000 sq.ft. in outlet, specialty and strip centers. Preferred
co-tenants include movie theaters and restaurants. Plans call for two openings in the
coming 18 months. Expansion will take place in the existing market. Leases running seven
years are typical. Maui Clothing Co., Inc. operates four Maui Water Water
stores, two Escape To Maui stores and two Maui Clothing stores all in HI.
The stores, selling men’s and women’s apparel, occupy spaces of 3,000 sq.ft. in
regional malls, outlet and strip centers. Plans call for three openings of each concept in
the coming 18 months. Expansion will take place in FL, HI and Guam. Preferred demographics
include a population of 50,000 within five miles earning $40,000 as the average income. Financial News Simon DeBartolo Group (317-636-1600) plans to change its corporate name to Simon Property Group, Inc. The change will become effective upon completion of its pending acquisition of Corporate Property Investors. The new name will align with Simon’s strategic direction of leveraging a national branding initiative to drive shopper loyalty and provide value-added services to its portfolio. The DeBartolo family’s role with Simon Property Group will remain unchanged and the DeBartolo family will maintain its ownership stake in Simon. The company, which is the world’s largest REIT, currently owns or has an interest in 216 properties and, together with its affiliated management company, owns or manages approximately 154 million sq.ft. of space in 35 states. Simon is expected to close on the CPI acquisition during the third quarter. Blockbuster Entertainment’s (770-858-5536) parent company, Viacom Inc., is considering selling all or part of its Blockbuster Video chain. The company is seeking to find the right business mix to increase its profits and recently announced that it plans to spend $200 million to build movie theaters in Brazil. The company’s investors have been pressuring it to get rid of Blockbuster. Weis Markets Inc. (717-286-4571) reported that its second quarter sales increased 2.4% to $457.6 million from $446.9 million during the second quarter last year. Net profits for the quarter fell to $16.7 million from $18.8 million last year. Comparable store sales increased 1.6% for the quarter. The company currently operates 154 supermarkets in MD, NJ, NY, PA, VA and WV and 42 SuperPetz pet supply stores in 11 states. Winn-Dixie Stores, Inc. (904-783-5000) reported that its fiscal 1998 sales increased three percent to $13.6 billion from $13.2 billion with average store sales up three percent and comparable store sales down 0.3% for the year. Net earnings for FY98 were down 2.8% to $198.6 million, compared to $204.4 million last year. During the year, the company opened and acquired 84 stores and closed 90 older stores. At the end of its fiscal year the company operated 1,168 stores. Aaron Rents, Inc. (404-231-0011) reported that its second quarter revenues increased to $93.8 million from $77.5 million during the second quarter last year. Net earnings for the quarter increased to $5.6 million from $4.6 million. The company currently operates 421 rental-purchase stores in 32 states. OfficeMax, Inc. (216-921-6900) reported that its second quarter sales increased 13% to $874 million from $776 million during the second quarter last year. Comparable stores sales, excluding computers, increased six percent. Including computers, comparable store sales decreased one percent. During the quarter, the company opened 21 stores and remains on track to open 120 stores this year. Currently, the company operates 753 stores in 48 states and Puerto Rico. Spiegel, Inc. (708-769-2177) reported that its second quarter net loss was $2.4 million, as compared to a net loss of $13.5 million during the second quarter last year. Revenues for the quarter decreased two percent to $684 million from $696.2 million. Net sales fell four percent overall, with an 11% decrease in catalog sales and a five percent increase in retail sales. Comparable store sales at its Eddie Bauer stores fell nine percent. The company currently operates more than 500 specialty retail stores trading as Eddie Bauer, Eddie Bauer Home and AKA Eddie Bauer. The company also publishes Spiegel and Newport News catalogs. Applebee’s International, Inc. (913-967-4000) reported that its second quarter net earnings increased 10% to $13.4 million from $12.2 million during the second quarter last year. Systemwide sales for its Applebee’s concept increased 13% to $520.9 million from $460 million during the second quarter last year. Systemwide comparable store sales fell 1.2% for the quarter. During the quarter, the company opened 28 Applebee’s units and ended the quarter with 1,004 restaurants. Systemwide sales for its Rio Bravo Cantina concept increased 21% to $39.8 million from $32.8 million during the second quarter last year. Comparable store sales fell 5.6% for the quarter. The company currently operates 61 units nationwide. Friendly Ice Cream Corporation (413-543-2400) reported that its net income for the second quarter increased to $2.9 million from $900,000 during the second quarter last year. Total revenues for the quarter were virtually unchanged at $178.7 million this year and $178.8 million last year. Comparable store sales increased 3.6% for the quarter. The company currently operates and franchises 685 restaurants in 15 northeastern states. Sears, Roebuck and Co. (847-286-0545) is reviewing the possibility of selling its Western Auto subsidiary because it has been disappointed with its performance. It is currently doing the same with its HomeLife furniture chain. Just For Feet, Inc. (205-408-3000) reported that its second quarter net sales increased 56% to $175.3 million from $112.4 million last year. Comparable store sales increased 2.2% for the quarter. During the quarter, the company opened six stores in AR, CA, FL, NV, OK and TX. The company currently operates and franchises 101 Just For Feet stores and 39 Sneaker Stadium stores in 27 states and 153 company and franchised specialty stores in 21 states. Garden Ridge Corporation (281-579-7901) reported that its second quarter net sales increased nine percent to $69.6 million from $63.6 million during the second quarter last year. Comparable store sales increased three percent. The company currently operates 22 home decor stores selling silk and dried flowers, housewares, seasonal, pictures and frames, party supplies, pottery, crafts, candles, home accents and baskets, in FL, GA, IL, KY, MO, NC, OK, SC, TN, TX and VA. General Nutrition Companies, Inc. (412-288-4600) reported that its second quarter consolidated revenues increased 24% to $328 million from $266 million during the second quarter last year. Net earnings increased 21% to $28 million from $23 million. Comparable store sales at company-owned stores increased three percent and comparable store sales at franchised stores increased 11.8% during the quarter. During the second quarter, the company opened 149 domestic stores and 19 stores in Canada. The company currently operates and franchises 3,732 stores nationwide and in 21 foreign countries. Who’s Opening & Where Albertson’s (208-385-6200) plans to open a supermarket in Spokane, WA. The company has waited nearly two years for the developer of the site, Farallon Development, to get approval for the project. Wal*Mart (501-273-4000) is looking to open a 220,000 sq.ft. Supercenter adjacent to West Side Plaza in Columbia, SC. The company also plans to expand it 126,640 sq.ft. discount store in Jacksonville, FL into a 228,172 sq.ft. Supercenter. Construction is expected to be completed next year. Noodle Kidoodle (516-677-0500) plans to open nine stores, including locations in Eastchester, NY; Houston and San Antonio, TX, before the end of the year. Babbages Etc. (817-424-2130) is currently testing a new concept called Planet X at two mall locations in Glendale, CA and Paramus, NJ. Two additional stores in FL and NH are expected to open next month. The stores carry a large assortment of toys, action figures and graphic novels in addition to the company’s standard stock of video games and PC software. The test will run through the holiday season and if successful, the company plans to remodel additional stores to the Planet X format. Frozen Fusion (602-948-5604) recently opened two fruit smoothie stores in Chicago, IL and a store at Universal Studios’ City Walk in Universal City, CA. Future growth is expected to take place in Denver, CO; Las Vegas, NV; Auburn Hills, MI; Scottsdale, AZ and in FL, MD, NJ and NY. The company currently operates units in AZ, CA, IL, MA, PA and Washington, D.C. Long-term growth calls for 300 units in the coming five years. PetSmart (602-580-6100) is planning to open a 26,040 sq.ft. store at the Home Depot Shopping Center in Rock Hill, SC during 1999. Kohl’s (414-703-7000) is rumored to be looking at six sites in the St. Louis, MO market in which to open department stores. Three are former Venture store locations are among the sites rumored. Starbucks Corporation (206-447-7954) plans to open at least 400 stores domestically and 100 stores internationally during its fiscal 1999 year. American Eagle Outfitters (412-776-4857) plans to open a store at Tacoma Mall in Tacoma, WA next month. Parisian (901-397-2113) recently announced that it plans to become the fourth anchor department store at Arbor Place Mall, a 1.2 million sq.ft. project currently under development in Atlanta, GA. The mall is expected to open during October 1999. Eckerd Drugs (813-399-6355) plans to open an 11,200 sq.ft. drug store in Crystal River, FL during January 1999. OfficeMax, Inc. (216-921-6900) recently launched its new PDQ concept store at Village Square Shopping Center in Woodmere, OH. The 7,500 sq.ft. store offers a full-service CopyMax combined with over 3,000 commodity-type office products, as compared to more than 8,000 in a full-size store. Additional tests of the PDQ concept are expected to take place later this year. The concept is expected to allow OfficeMax penetrate high-density urban locations as well as locate units in office parks, office buildings and on or near college campuses. A&W Restaurants (313-462-0029) plans to open restaurants at Naval bases in Pensacola, FL and Norfolk, VA and at Fort Hood, TX Army base. The units are expected to be open by next month. Borders Group, Inc. (313-913-1323) recently opened a book store in Pasadena, CA. The company is rumored to be looking at a 26,000 sq.ft. space at RiverPoint Village Shopping Center in Fox Point, WI. The Cheesecake Factory (818-880-9323) plans to open an 8,600 sq.ft. restaurant at the Crystal Building in Boulder, CO during mid-1999. U.S. Factory Outlets (212-563-3650) plans to open a 53,000 sq.ft. store at a former Hess Department Store location at Schuykill Mall in Frackville, PA during November. USFO will become the fifth anchor at the Crown American Realty Trust-owned project, joining Kmart, Bon-Ton, PharMor and Sears. Exclusives The Collins Company (310-394-3126) exclusively represents Radio Shack in the counties of Los Angeles, Orange, Ventura, Santa Barbara and San Luis Obispo, CA. The company is seeking sites running 1,800 sq.ft. to 2,000 sq.ft. in end-cap or pad locations and supermarket/drug store anchored neighborhood shopping centers. Preferred demographics include a population of at least 80,000 within three miles having a median household income of $35,000. Source Real Estate & Investment (248-799-3030) has been named the exclusive leasing agent for West Acres Commons Shopping Center in Flint, MI. The 117,000 sq.ft. project is anchored by Farmer Jack, Hallmark and Jumbo Video. The company has been named the exclusive leasing agent for Dexter Crossing Shopping Center in Dexter, MI. The 106,000 sq.ft. project is anchored by Country Market, Dexter Pharmacy, Best Entertainment Video and Hallmark. The company has also been named the exclusive leasing agent for Orchard Square Shopping Center in Romeo, MI. The 111,700 sq.ft. project is anchored by Farmer Jack, Fashion Bug, ACO Hardware and Hollywood Video. Levin Management Corporation (908-755-2401) has been named the exclusive leasing agent for Bernard’s Village Center in Bernards Township, NJ. The 61,000 sq.ft. project is part of The Hills, a 5,200 home master planned community. Available units will range from 1,000 sq.ft. to 12,000 sq.ft. Keen Realty (516-482-2700) has been retained to dipose of 19 former Strauss Discount Auto stores and Crown Book stores. Metro Commercial Real Estate, Inc. (609-866-1900) has been named the exclusive leasing agent for Runnemede Plaza in Runnemede, NJ. The 57,600 sq.ft. project currently has 36,000 sq.ft. available for lease, including a 24,000 sq.ft. former supermarket space. The center is owned by Mainardi Management. Herman/Stewart Construction (301-731-5555) has been awarded the contract to develop six Joe’s Crabshack Restaurants in Hobart, IN; Sterling Heights, MI; Fayetteville, NC; Bowie, MD; Gaithersburg, MD and Utica, MI. The freestanding restaurants will range from 8,000 sq.ft. to 11,000 sq.ft. Real Estare Professionals Making The News Shaw’s Supermarkets, Inc. (508-894-7000) announces that Ross McLaren has been appointed president and chief executive officer of the company. In addition, Scott Ramsay, senior vice president, retail operations, has been promoted to executive vice president, finance and information systems; Paul Gannon, senior vice president, finance and information systems, has been promoted to executive vice president, marketing, store format and real estate, and Jim Walsh, vice president of Shaw’s southern region retail operations, has been promoted to senior vice president retail operations. Darden Restaurants (407-245-4000) announces the appointment of Gary Heckel to president of Bahama Breeze Restaurants, the company’s Caribbean-themed restaurant company. The new division currently operates three restaurants in FL and TN. Expansion is planned for Atlanta, GA; Tampa and Miami FL; Raleigh, NC and Columbus, OH. Lease Signings Garrick-Aug Associates (212-557-9090) leased space to Face Stockholm on Madison Avenue in Manhattan, NY; 2,000 sq.ft. to The American Perfumerie at the World Trade Center in New York, NY and 5,000 sq.ft. to bebe at Crystal Pavilion in Manhattan, NY. Courtelis Company (305-379-8467) leased 15,200 sq.ft. to JoAnn Fabrics and 4,000 sq.ft. to Hallmark Cards at Magnolia Shoppes in Coral Springs, FL; 950 sq.ft. to Supercuts at Briar Bay Shopping Center in Miami, FL; 3,040 sq.ft. to Factory Shoe Warehouse at Airpark Plaza in Miami, FL and 1,363 sq.ft. to Supercuts at Sabal Pointe Plaza in Merritt Island, FL. Tedeschi Realty Corporation (781-871-6900) leased 3,300 sq.ft. to Golf USA at Faunce Corner Crossing in North Dartmouth, MA; 10,000 sq.ft. to Sears Appliance and Electronics Superstore at Cranberry Plaza in Wareham, MA; 1,500 sq.ft. to Elegante Shoe Salon at Turnpike Plaza in Warwick, RI; 29,000 sq.ft. to Ocean State Job Lot at a former Stop & Shop site at Tedeschi Plaza in Rockland, MA and 1,800 sq.ft. to Power Flooring and 1,200 sq.ft. to Casa Nova’s at Eastway Plaza in Brockton, MA. The Swiss Group, Inc. (317-816-9270) leased 9,600 sq.ft. to Creations at Greenwood Place in Indianapolis, IN; 7,200 sq.ft. to Creations at Eastland Place in Evansville, IN; a 4,000 sq.ft. former Taco Bell space to India Gardens in Indianapolis, IN; a 12,000 sq.ft. former JoAnn Fabrics space to Furniture For Less in Castleton, IN; and two former Kenny Rogers restaurants in Columbus, IN and Kokomo, IN to local Chinese restaurants. United Commercial Realty (214-526-6262) leased space to Chucks Restaurant at Prestonwood Plaza Shopping Center in Plano, TX; space to Blockbuster Video in Fort Worth, TX; 8,000 sq.ft. to Noodle Kidoodle at Quail Springs Shopping Center in Oklahoma City, OK and 25,500 sq.ft. to The Oak Mill in Addison, TX. Rappaport Management Company (703-641-9103) leased 1,920 sq.ft. to ROCS Cards & Gifts at Muddy Branch Square in Gaithersburg, MD. Metro Commercial Real Estate, Inc. (609-866-1900) leased 30,000 sq.ft. to Whole Foods Market at Baederwood Shopping Center in Jenkintown, PA; 5,000 sq.ft. to The Men’s Wearhouse in Concord, DE; 4,500 sq.ft. to The Men’s Wearhouse at the Court at Deptford II in Deptford, NJ and 4,500 sq.ft. to The Men’s Wearhouse at Parkview Plaza in Lancaster, PA. Equity Attainment, Inc. (630-325-3200) leased 13,000 sq.ft. to Powerhouse Gym at Lemont Plaza in Lemont, IL. Jacobson, Goldfarb & Tanzman Company, LLC (732-750-4000) leased pad sites to Rio Bravo and Applebee’s at Clifton Commons in Clifton, NJ and space to Lamp and Lighting of the Bowery at Galleria Shopping Center in Manalapan, NJ. Manekin Corp. (410-727-0600) leased 55,000 sq.ft. to SuperFresh at Harundale Plaza in Baltimore, MD. Lamar Companies (973-285-0660) leased 45,000 sq.ft. to Destina Theaters at Independence Plaza in Hamilton Township, NJ. Food Tenants Hungry for Sites in Florida Shells Seafood Restaurants, Inc. trades as Shells at 42
locations in FL, IN and OH. The seafood restaurants occupy spaces of 5,500 sq.ft. to 7,500
sq.ft. in freestanding facilities. Growth opportunities are sought in the existing
markets. Preferred demographics include a population of 100,000 within five miles earning
$40,000 as the average income. Meson Ole Restaurants operates nine locations in FL and NY. The
Mexican restaurants occupy spaces of 3,000 sq.ft. to 4,000 sq.ft. in freestanding
facilities, regional malls and strip centers. Plans call for two openings in the coming 18
months. Expansion will take place in the existing markets. Leases running 15 to 20 years
are typical. East of Chicago Pizza Company trades as East of Chicago Pizza
at 100 locations in OH, PA and IN. The pizza restaurants occupy spaces of 1,200 sq.ft. in
downtown store fronts, freestanding facilities and strip centers. Preferred co-tenants
include Blockbuster Video. Plans call for 30 openings in the coming 18 months.
Expansion will take place in FL and VA. The company is franchising. Lionshare Group, Inc. does business as Ragin’ Ribs at
four locations in FL. The restaurants, serving ribs, steaks, burgers, chicken and turkey,
occupy spaces of 1,700 sq.ft. to 2,200 sq.ft. in freestanding facilities and end caps of
strip centers. Plans call for as many as 10 openings during 1998 and 30 openings during
1999. Expansion will take place in the Southeastern region. A nationwide roll-out is
planned for the future. Leases running three to five years are typical and the company
prefers to convert existing restaurants. Larry’s Giant Subs operates 55 locations in FL and GA. The
sandwich restaurants occupy spaces of 1,400 sq.ft. In freestanding facilities and strip
centers. Preferred anchors include supermarkets. Plans call for 15 openings in the coming
18 months. Expansion will take place in FL, GA and SC. Leases running five years are
typical and the company is franchising. Barnie’s Coffee & Tea Co., Inc. trades as Barnie’s
Coffee & Tea Co. at 120 locations in the Eastern region. The stores, offering
gourmet coffee and tea, occupy spaces of 1,200 sq.ft. to 1,600 sq.ft. in regional malls.
Plans call for 10 openings in the coming 18 months. Expansion will take place in FL, the
Northeastern region and the Southeastern region. Preferred demographics include a
population of 100,000 within 10 miles earning $40,000 as the average income. Leases
running 10 years are typical and the company is franchising. Peter Piper Pizza operates more than 125 locations in AZ, CA, CO,
FL, NV, NM and TX. The pizza restaurants, which also feature a family fun center, occupy
spaces of 10,000 sq.ft. to 15,000 sq.ft. in freestanding facilities and strip centers.
Plans call for 15 openings in the coming 18 months. Expansion will take place in Broward
and Dade counties, FL. Leases running 10 years are typical. Columbia Restaurant, Inc. does business as Cha Cha Coconuts
and Columbia Restaurant at 10 locations in FL. The restaurants, serving Caribbean
food, occupy spaces of 4,500 sq.ft. to 20,000 sq.ft. in freestanding facilities, regional
malls and specialty centers. Plans call for 10 openings in the coming 18 months. Expansion
will take place in the Southeastern region. Preferred demographics include a population of
100,000 within three to five miles earning $50,000 as the average income. Leases running
10 years are typical. Giff’s Sub Franchise System, Inc. trades as Giff’s
Subs at seven locations in FL. The restaurants, featuring steak subs, soup and salads,
occupy spaces of 800 sq.ft. to 1,000 sq.ft. in strip centers. Growth opportunities are
sought in the existing market. Let’s Make A Dauquiri of Miami trades as Let’s Make A
Dauquiri at one location in FL. The concept offers non-alcoholic and alcoholic frozen
drinks while occupying a 400 sq.ft. space at a specialty center. Plans call for one
opening in the coming 18 months. Expansion will take place in the Southern region. The
company will sign a 10-year lease. Mergers & Acquisitions Rent-Way, Inc. (814-876-5055) recently acquired all the outstanding stock of Fast Rentals, an eight-unit chain with stores in AL and GA. The purchase price was $2.8 million, including assumption of liabilities. The acquisition gives Rent-Way 384 rental-purchase stores in 21 states, primarily in the Eastern and Southeastern regions. Malibu Entertainment Worldwide, Inc.’s (214-220-4925) board of directors recently approved the combination of Malibu and the Houlihan’s Restaurant Group, which was recently acquired by MEI for $127 million. The transaction involves the formation of a new holding company which would own both Malibu’s current entertainment business and the newly acquired restaurant business. Houlihan’s operates and franchises 144 restaurants trading as Houlihan’s and Darryl’s in 28 states. Malibu operates 25 entertainment parks in 13 states, primarily clustered in CA, FL, GA and TX and three adult-oriented motor sports-themed racing parks known as SpeedZones. ACO, Inc. (248-471-0100) recently sold its 29 unit NHD hardware store chain to MSB Acquisitions. MSB plans to sell the assets of the chain. ACO bought the NHD chain, which operates stores in New England, three years ago for $2.1 million. CompUSA, Inc. (972-982-4000) and Tandy Corporation (817-415-3730) jointly announced that the Federal Trade Commission has granted early termination of the Hart-Scott-Rodino waiting period with respect to CompUSA’s acquisition of Tandy’s Computer City subsidiary. Alberston’s Inc. (208-385-6200) plans to acquire American Stores Co. for $11.7 billion, consisting of $8.3 billion in stock and $3.4 billion in debt. The new company, which will be called Albertson’s, will operate more than 2,470 stores in 37 states and have annual sales topping $36 billion. Albertson’s currently operates 916 supermarkets while American Stores operates 1,588 stores trading as Acme Markets, Jewel Food Stores, Lucky Stores, Osco Drug and Sav-on. The corporate headquarters will remain in Boise, ID and Albertson’s plans to retain all current store names. In a separate transaction, Albertson’s announced that its has entered into an agreement with Bruno’s to acquire 15 stores in the Nashville and Chattanooga, TN markets and in Fort Oglethorpe, GA. Hollywood Entertainment (503-570-1600) has agreed to acquire Reel.com, an online video retailer, in a stock exchange valued at $100 million. Reel.com operates a virtual video store offering more than 85,000 movie titles. Hollywood Entertainment, which operates the Hollywood Video chain, thinks the acquisition will give it an edge in the interactive entertainment market, expand its business into cyberspace, and get more people to watch movies. Since Hollywood Video primarily rents videos and Reel.com sells videos, there is very little overlap in the two businesses. Shells Seafood Restaurant, Inc. (813-961-0944) recently acquired three former Chi-Chi’s locations in Bloomington, Oakbrook Terrace and Streamwood, IL. Shells plans to convert and reopen the properties as Shells restaurants during the fourth quarter of this year. New World Coffee & Bagels, Inc. (212-343-0552) recently signed an agreement to acquire Manhattan Bagel Company (732-544-0155) The agreement covers the acquisition of Manhattan Bagel’s 310 store franchise system, two bagel dough manufacturing plants and corporate operations. Both chains would retain their individual identities while consolidating their corporate infrastructure. Under the acquisition, which is subject to bankruptcy court approvals, New World would provide up to $3.5 million for Manhattan Bagel’s secured creditors, provide $11.5 million for Manhattan Bagel’s unsecured creditors, and assume up to $5 million in additional liabilities. No value will be provided to Manhattan Bagel equity holders. The transaction will be primarily financed with cash and debt. The two companies are currently working on a plan of reorganization that would enable Manhattan Bagel to emerge from Chapter 11 protection. The May Department Stores Company (314-342-6300) has agreed to purchase 11 former Mercantile stores from Dillard’s (501-376-5200), which is in the process of acquiring Mercantile. The 11 stores to be acquired by May include six The Jones Store locations in the Kansas City metro area and one in Topeka, KS; two Joslins stores, one in Denver and one in Colorado Springs, CO; one Bacons store in Owensboro, KY and one Root’s store in Terre Haute, IN. May’s Famous-Barr division will operate the seven stores in the Kansas City market under The Jones Store trade name and operate the Terre Haute and Owensboro stores under the L.S. Ayres name. The Foley’s division will operate the Colorado Springs store and the Lord & Taylor division will operate the Denver store. All of the stores will close temporarily for remodeling. In addition, Dillard’s has agreed to sell 15 Mercantile stores to Proffitt’s Inc. E-Z Serve Corp. (800-368-6253) recently sold its 483-unit convenience store chain to EBC Texas Acquisition Corp., an investor group that includes Wayne Rogers, who played Trapper John on MASH. The sale price was $42 million in cash. E-Z Serve operates stores in AL, FL, GA, LA, MS, NC, SC trading as E-Z Serve, Time Saver, Majic Market and Sunshine Jr. EBC operates the Swifty Mart and The Pantry convenience store chains in FL, NC and SC. Finding Financing: The Opportune Investment in A Retail World Bridge Capital The opportunity was the "deal of the century." It involved the purchase of a 750,000 sq.ft. regional shopping center, located in Richmond, Virginia. The seller was an institution seeking to liquidate the last asset in a closed end fund that terminated two years ago. The property was available for purchase at 1/3 of the market value, and at a cap rate of better than 20 percent. The kicker? The deal needed to be closed in two weeks, or it was gone. The company, George Zamias Organization, wanted to finance the acquisition. There was no doubt that it was indeed a tremendous opportunity. There were, however, several obstacles that had to be overcome in a very short period of time. Among them:
Information was exchanged, and a preliminary letter of intent was negotiated within two days of the initial phone call. A due diligence team was mobilized, and we were able to tour the property and market area to ascertain the risk and depth of the opportunity. The loan was structured to incentivize the borrower to refinance the property. This provided not only 100 percent of the acquisition cost, but allowed a $5 million reserve for capital improvements. It also gave the borrower the ability to negotiate and purchase new operating covenants, solve the environmental clean up, and generally improve the property overall. The attorneys for both sides reacted quickly and effectively, allowing the loan to close in less than fifteen days with minimum complications. After the loan closed, the borrower was able to secure the operating covenants, spend some capex dollars improving the property and streamline the management of the property. As evidence of the success of this deal, the property was recently refinanced via a Wall Street lender, at an attractive market rate. Opportunity Dealing The kicker, of course, is to find a financial institution willing to jump into the ring, often with just days, to close the deal. This can be particularly difficult when the property in question may be in dire need of renovation, may have no operating covenants, and perhaps faces environmental issues as well. The opportunistic market has been largely ignored with the influx of easy capital, but there is no question that if a broker knows the right sources of capital, when one of these opportunity-type centers arrives on the market, a real estate entrepreneur can tap into an extremely lucrative specialty. The vast majority of typical retail properties can be financed by traditional sources, if they are stabilized. That is, they show strong occupancies at market rents, have a minimum of lease rollover risk, and require no major capital expenditures. A portion of the properties at the other end of the scale, however, are what we call opportunities. The result is a boon for those real estate entrepreneurs that can react quickly, move fast, and close the deal. At our firm, the deal of the century seems to come along about every two weeks. Each circumstance has been unique, but the common theme was tremendous upside potential with a minimum of downside risk. In some of these transactions, an existing lender or partner was willing to take a large discount for immediate cash. In other cases, an acquisition at a great price would not work for the traditional lender. By providing most of the capital required to acquire and reposition a property and incentivizing the borrower to create value quickly, these properties can earn excellent returns while allowing the borrower to create extraordinary returns. The beauty of private capital is patience and flexibility. Investment decisions can be made without shareholders, rating agencies and senior lenders second guessing each investment. More often than not, the deadline "makes or breaks" the opportunity. Short closings compel the parties to work with someone who can react fast, underwrite quickly and fund immediately upon completion of loan and title documents. Current Trends Typically, the customized aspects that accompany opportunity loans are unacceptable to traditional lenders. The borrower may need specific structural factors (prepayment options, earn-outs), or have other underwriting issues (no operating histories, lease-rollover issues) or legal issues (multi-property ownership, etc.). While traditional lenders may shy away from these caveats, once the deal’s nuances are taken care of - which can be done through opportunity type financing - the majority of these properties are candidates for refinancing once value is created and an income stream stabilized. Why would a lender want to tackle these types of loans, you ask? The attractive aspect to financing these types of projects is the value-creation aspect of the financing itself. The "commodity like" nature of a generic conduit loan and the intense competition for product have lowered spreads to less than 100 basis points versus the comparable treasury for quality real estate projects. While the risk profile of high-yield-mortgage notes, or as we refer to them "HYMNS," is certainly greater than an individual conduit whole loan, which sports a treasury-plus-125 basis point spread. Therefore, in our experience, the conduit "risk-reward" profile is more compelling than one might think. In fact, this market itself is much larger than you might imagine. The types of financing arrangements described above are often required for financings of Class "B" properties, which happens to be most of the total real estate supply in the United States. Conduit loans, or those loans that enable the lender to pool loans into securities, are the ideal bridge for Class "B" properties, and they provide an ample supply of possible properties for eager lenders to consider. The CMBS Market The CMBS market has grown and developed at an astonishing rate since its inception in the early 1990s. Conduits, which have become a primary vehicle in this market, represented 58 percent of CMBS volume in 1997. With 1997 originations of $44 billion, the CMBS market may reach a total market capitalization of $150 billion this year. As the CMBS market has grown, investment in CMBS securities have gone mainstream and the universe of investors in the various classes of CMBS has also grown dramatically. In fact, the liquidity generated by the growth of CMBS loans has become one of the most powerful forces shaping the commercial mortgage market. The ability to trade mortgage securitizations "on the wire" has broadened the number and type of investors active in the CMBS market. While many of these investors take CMBS positions with no intention of trading a security, the liquidity in the marketplace is an essential factor in their participation. As the investor moves down the credit spectrum to unrated securities, however, things become a little less liquid. The universe of buyers is smaller, the time required to settle a trade expands and prices are only indicators of the starting point for price negotiations. Not only are prices subject to change, there are considerable costs in the form of re-underwriting these securities exists for any potential purchaser. There is hope, however. The CMBS industry is still in its infancy stages, but the upward trend in the current market is sure to support phenomenal growth of the former. In fact, some experts predict volume to reach more than $60 billion by the turn of the century. As the influx of capital continues, so too will the distinction between the Wall Street institutional market, and the Main Street private financing market. Remember, real estate is still a "neighborhood" business, and responsive, customized financing will always have a place in the market. In addition, the retail industry is going through a metamorphosis. No doubt, retailers and Wall Street alike will attempt to predict - and participate in - the evolution. For those that are willing to stray away from the safe, predictable path, there are great opportunities yet to be discovered. Ned DeLorme and Bob Kuntz are both principals of the Newport Beach, CA-based Bridge Capital, LLC, a direct lender that specializes in providing short and medium term funds for the acquisition and refinancing of opportunistic real estate and corporate finance transactions. The company purchases notes, provides equity, mezzanine loans, senior and junior debt, participating loans, bridge loans, and buys distressed paper. Buyers & Sellers Westfield America, Inc. recently acquired a 50% interest in Valley
Fair in San Jose, CA and a 100% interest in University Towne Center in San Diego, CA from
TrizecHahn for $332 million. The 1.138 million sq.ft. Valley Fair Mall is anchored by
Nordstrom and Macy’s. It has 161 specialty stores including Coach, Crate &
Barrel, Liz Claiborne, Pottery Barn and Williams-Sonoma. The 1.033 million sq.ft.
University Towne Center is anchored by Nordstrom, Robinson-May, Macy’s and Sears. It
has 148 specialty stores including Ann Taylor, bebe, Crate & Barrel, Eddie Bauer and
Williams-Sonoma Grande Cuisine. Hobbs Associates has the listing to sell a 2.75 acre parcel of land
in north Prince George County, MD. The site, zoned retail, fronts two major highways which
have a combined daily traffic count of 48,000 vehicles. The site shares north and south
boundaries with McDonald’s and Arby’s. Ross Realty Investments, Inc. represents a Dutch investment fund,
DIM Vastgoed, N.V., in the market to acquire supermarket-anchored shopping centers and
newer power centers in FL, GA, NC and SC. Preferred project should be priced between $10
million and $35 million. The fund has acquired more than $100 million worth of real estate
in the past year and plans to acquire $150 million more in the coming 12 months. Tanger Factory Outlet Centers, Inc. recently completed the
acquisition of Sanibel Factory Stores in Fort Myers, FL for $27.65 million. The 186,072
sq.ft. project features 55 brand name outlets and is 96% occupied. Tanger plans to develop
an additional 12,000 sq.ft. of space at the site and will rename the facility Tanger at
Sanibel Factory Stores. Madison Realty Group, Inc. is in the market to acquire regional
malls and community strip centers throughout the Eastern region. ReMax Properties represents a client in the market to acquire
grocery anchored shopping centers having GLAs of 140,000 sq.ft. or less throughout FL. The Vanguard Co./CRESA-Austin has the listing to sell a vacant
73,000 sq.ft. former Payless Cashways building in San Angelo, TX. The asking price is $2.9
million. Lakeside Country Store is selling a convenience store in Pell Lake,
WI. The sale can also include an adjacent building which contains two apartments. The
asking price for the business is $160,000. The asking price for both the business and
building is $360,000. Northwest Atlantic Real Estate Services has the listing to sell a
portion of Westlake Village Marketplace located on the border of Los Angeles and Ventura
counties in CA. The 292,000 sq.ft. project is anchored by Costco, Albertson’s,
PetsMart, Staples and Michael’s. A 74,000 sq.ft. portion, including Staples,
Michael’s, Taco Bell, Dairy Queen, Panda Panda and Supercuts are included. An asking
price has not been set. Space Place Florida Casselberry- A 4,347 sq.ft. freestanding building is available
for lease at a signalized intersection which has a daily traffic count of 65,000 vehicles.
In Jacksonville- A 10,000 sq.ft. space is available for lease at a 150,000
sq.ft. strip center anchored by Winn-Dixie Marketplace. In Jacksonville
Beach- A 2,700 sq.ft. space is available for lease. The site fronts Beach
Boulevard which has a daily traffic count of 50,000 vehicles. In Ocala- Baseline
Square Shopping Center has spaces from 975 sq.ft. to 32,000 sq.ft. available for
lease. Coral Springs- Royal Eagle Plaza is anchored by Kmart
and Stein Mart. The project has a 6,893 sq.ft. space available for lease. In Miami-
Trail Plaza Shopping Center is anchored by Winn-Dixie. Spaces from 1,100
sq.ft. to 22,000 sq.ft. are available for lease. In Miami Lakes- Royal
Oaks Plaza is anchored by Winn-Dixie. The project has spaces from 750 sq.ft. to
13,500 sq.ft. available for lease. Delray Beach- Congress Square is anchored by CJL
Shoes, Backstreet Clothing, Subway and Dirty Moe’s Raw Bar. The 77,226
sq.ft. project has spaces of 1,033 sq.ft., 1,215 sq.ft. and 2,660 sq.ft. available for
lease. Demographics include a five-mile population of 157,100 earning $72,380 as the
average income. In Dundee- Dundee Ridge Plaza is anchored by Winn-Dixie,
Dollar General and Subway. The 99,210 sq.ft. project has spaces of 1,125
sq.ft., 1,500 sq.ft., 2,050 sq.ft., 3,000 sq.ft. and 8,450 sq.ft. available for lease.
Demographics include a five-mile population of 30,687 earning $52,300 as the average
income. In Jacksonville- Rutgers Plaza is anchored by Food Lion,
Dollar General and Jax Navy Credit. The 79,000 sq.ft. project has spaces of
1,200 sq.ft., 1,400 sq.ft., 2,800 sq.ft. and an outlot available for lease. Demographics
include a five-mile population of 82,092 earning $39,460 as the average in come. Also in Jacksonville-
Emerson Plaza is anchored Food Lion. The 55,215 sq.ft. project has three
spaces of 1,600 sq.ft. each, 1,750 sq.ft. and an 11,165 sq.ft. former Walgreens space
available for lease. Demographics include a five-mile population of 169,934 earning
$48,884 as the average income. In Mt. Dora- Mt. Dora Marketplace is
anchored by Winn-Dixie, Comcast, Subway, Crazy Wings and Wendy’s.
The 78,762 sq.ft. project has spaces of 1,300 sq.ft. and a 15,000 sq.ft. outlot space
available for lease. Demographics include a five-mile population of 36,729 earning $44,547
as the average income. In Orange Park- Tanglewood Station is anchored
by Salvation Army and Lil’ Bambinos Pizza. The 58,390 sq.ft. project
has spaces of 1,000 sq.ft., 1,875 sq.ft., 6,000 sq.ft. and a 30,000 sq.ft. former Food
Lion space available for lease. Demographics include a five-mile population of 67,344
earning $58,719 as the average income. Also in Orange Park- The Park
is anchored by Big Lots, Gold’s Gym and St. of Florida-Jobs & Benefits
Center and Vocational Rehabilitation Center. A Publix is expected to open
during Winter. The 82,582 sq.ft. project has spaces of 1,200 sq.ft., 1,400 sq.ft., 1,950
sq.ft., 2,400 sq.ft. and an outlot available for lease. Demographics include a five-mile
population of 96,445 earning $54,300 as the average income. In Orlando- Oxford
Square is anchored by Eckerd Drugs, Pet Supermarket, Woodworking Unlimited and Checkers
Drive-In. The 59,238 sq.ft. project has spaces of 1,600 sq.ft. and 2,400 sq.ft.
available for lease. Demographics include a five-mile population of 227,154 earning
$61,810 as the average income. In Palm Coast- Flagler Regional Plaza
is anchored by Winn Dixie, Subway, Woody’s Bar-B-Q and Dollar General.
The 94,408 sq.ft. project has spaces of 975 sq.ft., 1,125 sq.ft., 1,300 sq.ft., 1,530
sq.ft., 1,950 sq.ft. and 3,375 sq.ft. available for lease. In West Palm Beach-
Polo Marketplace is anchored by Aaron Rents, Rag Shop, One-on-One Fitness Gym
and Tandy Leather Co. The 70,053 sq.ft. project has spaces of 1,200 sq.ft., 1,800
sq.ft., 2,400 sq.ft., 3,600 sq.ft. and 7,200 sq.ft. available for lease. Demographics
include a five-mile population of 239,769 earning $54,737 as the average income. Seminole- Seminole Mall is anchored by Kmart,
Upton’s, Publix, Stein Mart, Waccamaw, Beall’s and AMC Theater. The
424,358 sq.ft. project has spaces from 525 sq.ft. to 10,198 sq.ft. available for lease. Ohio Columbus- Buckeye Grove Shopping Center is anchored by Kroger
Supermarket. The 96,000 sq.ft. project has spaces from 1,200 sq.ft. to 10,000 sq.ft.,
as well as an outparcel, available for lease. The site is expected to open during Summer
1999. South Carolina Aiken- Kalmia Plaza is anchored by Roses, Food Lion,
Sears and CVS. The 217,930 sq.ft. project has a 41,623 sq.ft. space available
for lease. Demographics include a three-mile population of 26,324 earning $44,482 as the
average income. Also in Aiken- Mitchell Center is anchored by Heilig-Meyers,
Dollar General and SuperPetz. The 102,225 sq.ft. project has spaces of 1,700
sq.ft., 4,500 sq.ft. and 8,000 sq.ft. available for lease. Demographics include a
three-mile population of 37,380 earning $63,568 as the average income. In Greenville-
Weston Square is anchored by Family Dollar. The 78,200 sq.ft. project has
spaces of 2,250 sq.ft., 3,000 sq.ft., 4,000 sq.ft. and 6,000 sq.ft. available for lease.
Demographics include a three-mile population of 54,278 earning $30,664 as the average
income. In Lancaster- Lancers Centers is anchored by Wal*Mart,
Bi-Lo and CVS. The 180,194 sq.ft. project has a 1,600 sq.ft. space available
for lease. Tennessee Nashville- Priest Lake Plaza is anchored by Kroger,
Revco and Dollar General. The 126,700 sq.ft. project has spaces of 1,030
sq.ft., 2,400 sq.ft. and 4,000 sq.ft. available for lease. Demographics include a
three-mile population of 45,213 earning $49,872 as the average income. Lead Sheet Apparel The 205-unit chain operates locations in AZ, CA, CO, ID, IL, MO, NV, NM, OK, OR, TX, UT and WA. The stores, selling apparel for teenagers, occupy spaces of 5,000 sq.ft. to 6,000 sq.ft. in regional malls. Plans call for 36 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 250,000 within 10 miles earning $40,000 as the average income. Leases running seven years are typical and the company cites The Buckle, Mr. Rags and Pacific Sunwear as competition. J.H.D. Enterprises Ltd. Apparel The 20-unit chain operates locations in NC and VA. The men’s apparel stores occupy spaces of 2,500 sq.ft. to 5,000 sq.ft. in regional malls. Plans call for two openings in the coming 18 months. Expansion will take place in either NC, SC or VA. Preferred demographics include a population of 100,000 within 15 miles earning $30,000 as the average income. Leases running 10 years are typical. Stamor Corporation Apparel The 50-unit chain operates locations in AL, GA, MD, NC, SC, VA and WV. The stores, selling young men’s apparel, occupy spaces of 3,000 sq.ft. in regional malls. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running seven to ten years are typical. Andrews Card & Mercantile Shop, Inc. Cards & Gifts The 26-unit chain operates locations in ID, MT and WA. The stores, selling Hallmark cards and gifts, occupy spaces of 3,000 sq.ft. in downtown store fronts, regional malls and strip centers. Growth opportunities are sought in the existing markets. Enmark Stations, Inc. Convenience Store The 66-unit chain operates locations in GA, NC and SC. The convenience stores, which also sell gasoline, occupy spaces of 1,000 sq.ft. to 3,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing markets. The company prefers to purchase its sites. Strasburger Enterprises, Inc. Convenience Store The 60-unit chain operates locations in TX. The convenience stores occupy spaces of 1,000 sq.ft. to 3,000 sq.ft. in freestanding facilities and strip centers. Plans call for 20 openings in the coming 18 months. Expansion will take place in the existing market. Zip-N-Food Stores, Inc. Convenience Store The four-unit chain operates locations in TX. The convenience stores 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. Elizabeth Grady Face First Cosmetics The 30-unit chain operates locations in CT, MA, NH, NY and RI. The stores, selling skin care products geared toward the 25 to 54-year-old working woman, occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing markets. Essentials, Essentials Plus Cosmetics The six-unit chain operates locations in CT, NJ and NY. The stores, selling nationally branded beauty products, occupy spaces of 1,700 sq.ft. to 3,000 sq.ft. in regional malls. Plans call for one opening in the coming 18 months. Expansion will take place within the existing markets. Leases running 10 years, with options, are typical. Just A Buck Discount The 30-unit chain operates locations in CT, FL, NJ, NY, PA, TN and VA. The stores, selling general merchandise at the fixed price-point of $1, occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in strip centers. Preferred anchors include Wal*Mart and supermarkets. Plans call for 15 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years are typical and the company is franchising. Huntington Learning Corporation The 200+-unit chain operates locations in 30 states. The supplementary education centers occupy spaces of 2,500 sq.ft. in power and strip centers. Growth opportunities are sought in the Northeastern region. Preferred demographics include a population of 40,000 within three miles earning between $55,000 and $120,000 as the average income. Bryn Mawr Stereo & Video Electronics The 18-unit chain operates locations in DE, MD, NJ and PA. The stores, selling consumer electronics and car stereos, occupy spaces of 9,000 sq.ft. to 12,000 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. Discovery Zone, Inc. Entertainment The 202-unit chain operates locations throughout North America. The stores, offering soft play equipment for children, occupy spaces of 14,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought nationwide, primarily in metropolitan areas. Arabica Cafes, Inc. Food The 22-unit chain operates locations in OH. The restaurants, offering coffee, pastries and ice cream, occupy spaces of 1,500 sq.ft. to 3,000 sq.ft. in specialty and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in MI and OH. Preferred demographics include a population of 50,000 within three miles earning at least $40,000 as the average income. Pizza Outlet Food The 100+-unit chain operates locations in MD, OH, PA, VA and WV. The pizza restaurants occupy spaces of 1,200 sq.ft. in downtown store fronts, freestanding facilities, outlet and strip centers. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for as many as 150 openings in the coming 18 months. Expansion will take place in the Eastern, Midwestern and Southern regions. Leases running 10 years are typical and the company is franchising. Portico Bed & Bath Home Furnishings The nine-unit chain operates locations in CT, MA, NJ and NY. The stores, selling linens, bath items and home furnishings, occupy spaces of 2,500 sq.ft. to 4,000 sq.ft. in downtown store fronts and specialty centers. Preferred anchors include Neiman Marcus, Saks, Restoration Hardware and Williams-Sonoma. Plans call for six openings in the coming 18 months. Expansion will take place in CA, MD, VA and Washington, D.C. Preferred demographics include a population of 100,000 within three miles earning at least $65,000 as the average income. Leases running 10 years are typical. Elk Supply Co. Home Improvement The 17-unit chain operates locations in OK. The home improvement stores occupy spaces of 10,000 sq.ft. in downtown store fronts and freestanding facilities. Growth opportunities are sought in the existing market. Jim Scott Organ & Piano Studios, Inc. Music The two-unit chain operates locations in GA. The stores, which sell pianos and organs, occupy spaces of 2,500 sq.ft. to 8,000 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in GA and TN. Carsus Corp. Specialty The 11-unit chain operates locations nationwide. The stores, selling candles, occupy spaces of 1,200 sq.ft. in regional malls. Growth opportunities are sought nationwide. Chick’s Sporting Goods, Inc. Sporting Goods The eight-unit chain operates locations in CA. The stores, selling sporting goods and sports apparel, occupy spaces of 40,000 sq.ft. to 50,000 sq.ft. in freestanding facilities and power centers. Growth opportunities are sought in the existing market. Leases running 20 years are typical and the company prefers a vanilla shell. Sternheimer Brothers, Inc. Sporting Goods The 53-unit chain operates locations in VA. The sporting goods stores occupy spaces of 3,600 sq.ft. to 18,000 sq.ft. in freestanding facilities, regional malls and strip centers. Plans call for at least two openings in the coming 18 months. Expansion will take place in the existing market. Terry Sports Sporting Goods The five-unit chain operates locations in CO and NM. The stores, selling ski equipment and related items, occupy spaces of 2,000 sq.ft. to 5,000 sq.ft. in ski resort areas. Growth opportunities are sought in CO. Camellia Food Stores, Inc. Supermarket The 43-unit chain operates locations in DE, MD, NC and VA. The supermarkets occupy spaces of 17,000 sq.ft. in freestanding facilities, power and strip centers. Growth opportunities are sought in the existing markets. |