The Dealmakers Issue Number 47 for the week of January 9, 1998.

 

My Way by Ted Kraus

 

The recent ICSC Dealmaking show in New York City finally provides me with my first legitimate reason I have to bitch in quite some time; not about the show itself, that was great and extremely well attended, but the quality of food served at the cocktail reception on Monday night was horrible.  In a city with 25,000 restaurants and some of the finest food in the world, the Hilton managed to serve rotten pizza and a "fish" product I'd wouldn't serve my cat.  Now, don't get me wrong, if I had to choose between rotten food and a great show, I'd take the great show every time, but I hope the ICSC has a talk with the Hilton about their food quality before next year's event.

 

Anyway, that was my one real complaint about the show.  As I said, it was well attended with nearly 3,500 of my closest friends showing up, and almost everyone appeared upbeat and making money.  Brokers that I consider totally incompetent are doing deals right now, it's that easy and of course, everyone is looking to acquire centers and almost everyone has a financial "source" with really deep pockets.  My dog Max claims to have over $250 million available for the right deals.  There must be a lot of money floating around, since few brokers are complaining about being stiffed on their commission (of course they're still being chewed down after the commission agreement is signed, but that's besides the point).

 

I was talking to a friend of mine who's a developer and he mentioned a large national retailer had hired "consultants" to assist 'em in evaluating sites, expansion and renewals.  When he said the name of one of the consultants, I said he was one of the biggest ganefs in the industry; he responded, "Yeah, isn't that great."  I love to have a "menu" to choose from when dealing with a retailer or broker (these "consultants" don't get paid a commission, they're paid by the retailer to provide advice, however, some I am sure will provide whatever advice the developers want for the right amount of money).  When these companies look for a consultant, what do they do, turn to the Yellow Pages under "Crooks?"  The good news is that the consultants can't corrupt the retailer, they've been corrupt for years.

 

While I'm at it, let me address some of the complaints about the NYC Show I did hear and in most cases can't agree with.  First, I heard a number of exhibitors complain about paying $100 for a table for their booth and $250 to exhibit (which is higher than most shows).  Well I for one would gladly pay $350 for a two day event that attracts 3,500 dealmakers.  At ten cents a head, I'd couldn't fax to all of 'em that cheap even if all were part of MCI's Friends And Family Plan.  The legitimate complaint was that the hotels were extremely expensive and provided poor service.  Yes, that's true, but the show was in New York, a town not known for being economical.  Some suggested we hold the show somewhere else that's less expensive, but that wouldn't work if attendance is considered imperfect (and it is).  Besides Manhattan being one of the few areas on the east coast that can accommodate this size of a crowd, no where else could attract so many out of towners (bring the family, come in over the weekend, see a show and do some Christmas shopping).

 

One developer complained that December was a poor time of the year to hold the show, since he's too involved with Thanksgiving and Christmas to think about deals; he felt it should be held in January.  Again, I disagree.  By having it in December and in New York, I feel it increases the attendance and that's the name of the game.  Oh, I asked him if he did any good at the show and he said yes; I guess some people can never be pleased.

 

The only legitimate complaint I heard was that the exhibits were spread over three floors, which is a pain.  However, the Hilton is the largest facility in NY short of something like the Javits Center, which if you think it costs a lot to exhibit at the Hilton, Javits makes Vegas look cheap.  The success of the show means more companies want to exhibit than there's comfortable space for, that should be our biggest problem.  My past complaints about some of these shows have been the low attendance and the ICSC's inability to promote hard enough to bring in more bodies, now that the economy is booming that's a moot point.

 

One trend I did notice at the show is that besides brokers taking on more importance every day (but we still get no respect), there are only two types of brokers making real money right now; either they exclusively represent a retailer or they're the exclusive on a property.  If your a "conventional" broker that looks at a center and then tries to "match" a retailer to a vacancy without a signed agreement, you're having a hard time making it.  A positive trend that I noticed in several conversations with developers, retailers and brokers alike, while all were satisfied with sales and profits, they plan on re-evaluating and in most cases cutting back on operating expenses (airline costs came up a lot).  Also, many institutions are beginning to look into lowering the CAM costs of their centers.  It may be finally hitting home that the higher the CAM costs, the lower the potential rent.  The reason I think all this is good is while I don't believe we're in for trouble in the near future, (six months) the economy will change and one way to insure you're still in business during the next recession is to have a low overhead.  These companies don't want to be stuck in a jam and have to make drastic changes at the last minute.  ...smart thinking.

 

Another possible trend is that several retailers are contemplating outsourcing their disposition departments.  There is no synergism between "buying and selling" retail space and it hasn't worked out well for many retailers.  They're stuck with the bad sites and subleasing detracts from making new deals.  These retailers are also looking into outsourcing the management of their closed stores.  Outsourcing can make sense, especially when they've gotten rid of their "good property" and sub-leasing "drek" is something their in-house staff can't do.  There are times that experts make sense.

 

This is off the topic of the New York show, but I was reading recently (I'm getting old, so I can't remember where) that in the greater Chicago area there are over 140 stores available in the 25,000 sq.ft. to 125,000 sq.ft. range; is this a sign of things to come for retailing nationwide?  Let's hope not.

 

 

Retailers Expanding in The South-Central Region

 

Fiesta Mart, Inc. operates 40 locations in TX.  The supermarkets occupy spaces of 25,000 sq.ft. to 48,000 sq.ft. in strip centers.  Plans call for 10 openings in the coming 18 months.  Expansion will take place in the existing market, with an emphasis on the Dallas-Fort Worth and Houston markets.  Preferred demographics include a population of 100,000 within three miles earning $25,000 as the average income.  Leases running five to 20 years are typical.

  For more information, contact Buster Freedman, Fiesta Mart, Inc., c/o United Equities, 6909 Ashcroft, Suite 200, Houston, TX 77081; 713-772-6262, Fax 981-4035.

 

Winn-Dixie Stores, Inc. trades as Winn Dixie at 1,200 locations in AL, IN, MS, TN, FL, KY, NC, TX, GA, LA, SC, OK and VA.  The supermarkets occupy spaces of at least 45,000 sq.ft. in freestanding facilities and strip centers.  Plans call for 120 openings in the coming 18 months.  Expansion will take place in the Sunbelt region.  Preferred demographics include a population of 30,000 within two miles earning $35,000 as the average income.  Leases running 20 years are typical.

  For more information, contact J.D. Dismuke, Winn-Dixie Stores, Inc., 5050 Edgewood Court, Jacksonville, FL 32254-3601; 904-783-5000, Fax 783-5694.

 

Felts Family Shoe Stores trades as Felts Shoes at nine locations in AR and OK.  The stores, selling shoes for the entire family, occupy spaces of 1,800 sq.ft. in downtown store fronts and strip centers.  Plans call for two openings in the coming 18 months.  Expansion will take place in OK.  Preferred demographics include a population of 35,000 within 10 miles earning $35,000 as the average income.  Leases running five years, with a five-year option, are typical.

  For more information, contact Byrce Felts, Felts Family Shoe Stores, PO Box 420, Tahlequah, OK 74464; 918-456-3220, Fax 456-3220.

 

General Novelty, Ltd. trades as Coach House Gifts, It's A Small World and Dollar World at 165 locations nationwide, exclusive of the Eastern seaboard.  The stores, selling gifts and greeting cards, occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in regional malls.  Preferred anchors include Dillard's, Kmart, Target and Wal*Mart.  Plans call for the opening of four units in the coming 18 months.  Expansion will take place in TX and the Midwestern region.  Preferred demographics include a population of 100,000 within 25 miles earning $30,000 as the average income.  Leases running 12 years are typical.

  For more information, contact Fritz Ieuter, General Novelty, Ltd., 420 East 58th Avenue #200, Denver, CO 80216; 303-292-5537, Fax 296-1528.

 

Beall's, Inc. trades as Bealls Outlets at 126 locations in AZ, FL and GA.  The department stores, offering apparel, gifts and domestics at price-points up to 70% off department store prices, occupy spaces of 8,000 sq.ft. to 25,000 sq.ft. in regional malls and strip centers.  Preferred anchors include supermarkets.  Plans call for 30 openings in the coming 18 months.  Expansion will take place in AL, AZ, FL, GA, MS and SC.

  For more information, contact Seth Layton, Beall's, Inc., 1806 38th Avenue East, Bradenton, FL 34208; 941-747-2355, Ext. 330, Fax 747-5741.

 

Weiner's Stores, Inc. trades as Weiner's Stores at 139 locations in LA and TX.  The apparel stores occupy spaces of 25,000 sq.ft. in strip centers.  Preferred co-anchors include Dollar General, Family Dollar and supermarkets.  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 Bealls, Kmart, Marshalls, Palais Royal, TJ Maxx and Wal*Mart 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.

 

Tosco Marketing Co. does business as Circle K at 650 locations throughout the Southeastern region.  The convenience stores occupy spaces of 2,500 sq.ft. in freestanding facilities on land areas running 40,000 sq.ft.  Growth opportunities are sought in AL, FL, GA, KY, NC, OH and SC.  Preferred demographics include at least 1,500 homes within one mile having an average income of at least $25,000.  Leases running 20 years, with four five-year options, are typical and the company cites Southland, RaceTrac and Speedway as competition.

  For more information, contact Phillip White, Tosco Marketing Co., 5650 Breckenridge Park Drive, Suite 300, Tampa, FL 33610; 813-744-5235, Fax 744-5221.

 

Richard Rosen, Inc. trades as Bonanza City, Broadway Fashion, Popular Dry Goods and Texas Store at 11 locations in NM and TX.  The general merchandise stores occupy spaces of 20,000 sq.ft. in downtown store fronts, freestanding facilities, outlet and strip centers.  Preferred anchors include supermarkets.  Plans call for the opening of four units in the coming 18 months.  Expansion will take place in AZ, NM and TX.  Preferred demographics include a population of 150,000 within 200 miles earning at least $15,000 as the average income.  Leases running one to two years, with options, are typical and the company cites Wal*Mart as competition.

  For more information, contact Richard Rosen, Richard Rosen, Inc., 210 South Mesa, El Paso, TX 79901; 915-533-7923, Fax 533-5160.

 

Oshman's Sporting Goods, Inc. trades as Oshman's and Super Sports USA at 50 locations nationwide.  The sporting goods stores occupy spaces of 50,000 sq.ft. to 75,000 sq.ft. in power centers and regional malls.  Plans call for eight openings in the coming 18 months.  Expansion will take place in AZ, CA, NV, OR and WA.  Preferred demographics include a population of 300,000 within seven miles earning $50,000 as the average income.

  For more information, contact Martin Moskowitz, Oshman's Sporting Goods, Inc., 31368 Via Colinas #110, Westlake Village, CA 91362; 818-865-2425, Fax 865-8934.

 

The Right Start, Inc. trades as The Right Start at 43 locations in CA, CO, CT, GA, IL, MD, MA, MI, MN, MO, NJ, NY, OH, PA, VA and WA.  The stores, selling infant and toddler apparel and related items, occupy spaces of 2,000 sq.ft. to 2,200 sq.ft. in freestanding facilities and specialty centers.  Preferred anchors include Zainy Brainy, Gymboree, Gap Kids/Baby Gap, Motherhood Maternity, Lord & Taylor and gourmet supermarkets.  Plans call for as many as 40 openings in the coming 18 months.  Expansion will take place in the existing markets as well as in FL and TX.  Preferred demographics include a population of 100,000 within three miles earning $70,000 as the average income.  Leases running five years, with options, are typical.

  For more information, contact Ron Blumenthal, The Right Start, Inc., 5334 Sterling Center, West Lake Village, CA 91361; 818-707-7100, Fax 707-7132.

 

 

New Construction

 

JDN Development Co. plans to develop a 640,000 sq.ft. shopping center on 106 acres of land near the entrance of the Valley Ranch community in Irving, TX.  The site will be anchored by a 205,000 sq.ft. Wal*Mart Supercenter and a 60,000 sq.ft. United Artists movie theater.  Other retailers for the project are expected to be announced throughout construction this year and the center is expected to open during early 1999.  The site is part of a 238-acre mixed-use development which will also include a 120-acre office complex and a hotel.  The office complex and hotel will be developed by Olympus Real Estate Corp., who sold the land to JDN for the development of the shopping center.

  For more information, contact JDN Development Co. at (404-262-3252).

 

Prime Retail, Inc. recently broke ground on a factory outlet center located at the northwest corner of I-70 and Route 65 in Hagerstown, MD.  The 410,000 sq.ft. project will be developed in two phases with phase I consisting of 210,000 sq.ft. with 50 stores and a food court.  Specific tenants cannot be announced until the grand opening nears, which is expected during this Summer, but the mix will include men's, women's and children's apparel retailers, as well as housewares, electronics, gifts, shoes and other accessories retailers.  The project will be constructed in a village-style, with rows of shops divided by courtyards.  A children's playground will be provided.

  For more information, contact Prime Retail, Inc. at (410-234-0782).

 

Developers Diversified Realty Corporation  and Petrie Dierman Kughn recently announced a joint venture to develop two shopping centers in MD.  The first project will be a 230,000 sq.ft. shopping center in Salisbury anchored by a home improvement store, a national pet store retailer, a major office supply retailer and an off-price mid-size department store.  Ground breaking is planned for early this year.  The second project is the 750,000 sq.ft. Centre at Hagerstown in Hagerstown.  Ground breaking is expected to take place during the Summer and no tenants have been announced.  Both projects will be developed by Petrie Dierman Kughn and managed by Developers Diversified Realty Corp.

  For more information, contact Developers Diversified Realty Corp. at (216-247-4700) or Petrie Dierman Kughn at (703-749-4500).

 

Ripco Real Estate is leasing the Square at West Windsor in West Windsor, NJ, which is currently being developed by a local developer.  The 215,000 sq.ft. project will feature five anchors and spaces up to 50,000 sq.ft. are available for lease.  Negotiations with several tenants are ongoing.  The site is expected to open during Fall.

  For more information, contact Ben Starr of Ripco Real Estate at (610-834-8000).

 

Prairie Ridge Investments and E.R.T. Development Company plan to develop The Centre at Preston Ridge in the 718-acre master-planned community of Frisco Bridges, located approximately 20 miles north of downtown Dallas, TX.  The 900,000 sq.ft. project, located on 126 acres, is planned as an open-air regional center with several major tenants in excess of 100,000 sq.ft. and other national and regional tenants ranging from 5,000 sq.ft. to 50,000 sq.ft.  The site, which is expected to open during Summer 1999, will be located adjacent to Stonebriar Mall, a 1.1 million sq.ft. regional mall.

  For more information, contact Prairie Ridge Investments at (214-696-5270).

 

SJD Development, Inc. plans to develop Lakeside on Preston in Dallas, TX.  The 440,300 sq.ft. project will consist of 389,300 sq.ft. of retail space, 40,500 sq.ft. of restaurant space and 10,500 sq.ft. of office space.  The center will be located at the intersection fo Preston Road and Spring Creekway Parkway and estimated 2001 demographics include a three-mile population of 60,966 earning an estimated $99,084 as the average household income.

  For more information, contact Steven Ewing of Exeter International Properties at (972-735-9096), Fax (735-9306).

 

Lincoln Property Company and The Trademark Companies are currently developing Trinity Commons in Fort Worth, TX.  The 205,000 sq.ft. project will be anchored by a 63,280 sq.ft. Tom Thumb supermarket, a 20,400 sq.ft. DSW store, a 12,000 sq.ft. Crown Books store and a 9,680 sq.ft. Ultra3 jewelry store.  Four freestanding pads, housing three restaurants and a Blockbuster Video store, are also being developed.  The site is located on the northwest corner of Hulen Street and Bellaire Drive, between I-30 and I-20, two of the major east-west highways connecting Fort Worth, Arlington and Dallas.  Demographics include a one-mile population of 18,370 earning $78,000 as the average household income.

  For more information, contact Lincoln Property Company at (214-740-3300).

 

 

Buyers & Sellers

 

Boyd, Page & Associates represented MBL Life Assurance Corp. in its sale of the Commons at Mission Bend Shopping Center in Houston, TX.  The 55,000 sq.ft. project is anchored by Chili's, Luby's Cafeteria and Walgreen's Drugs and was sold to The Commons at Mission Bend Investments, Inc.

  For more information, contact Culver Stedman or David Boyd at (713-877-8400).

 

Ramco-Gershenson Properties Trust recently acquired the following portfolio of shopping centers for $124.5 million.  The 139,228 sq.ft. Cox Creek Plaza, anchored by Wal*Mart, in Florence, AL; the 209,562 sq.ft. Athens Town Center, anchored by Wal*Mart and Bruno's, in Athens, AL; the 111,653 sq.ft. Crestview Corners, anchored by Wal*Mart and Piggly Wiggly, in Crestview, FL; the 129,130 sq.ft. Indian Hills, anchored by Wal*Mart and Ingles, in Calhoun, GA; the 137,223 sq.ft. Mays Crossing, anchored by Wal*Mart and Ingles, in Stockbridge, GA; the 170,436 sq.ft. Hickory Corners, anchored by Wal*Mart, Food Lion and OfficeMax, in Hickory, NC; the 211,524 sq.ft. Ridgeview Crossing, anchored by Wal*Mart, Ingles and Belk, in Elkin, NC; the 138,490 sq.ft. Stonegate Plaza, anchored by Wal*Mart and Food Lion, in Kingsport, NC; the 155,584 sq.ft. Holly Springs, anchored by Wal*Mart and Ingles, in Franklin, NC; the 243,484 sq.ft. Taylor's Square, anchored by Wal*Mart, Belk Outlet and Goody's, in Greenville, SC; the 217,319 sq.ft. Edgewood Square, anchored by Wal*Mart, Goody's and Bi-Lo, in North Augusta, SC; the 261,707 sq.ft. Northwest Crossing, anchored by Wal*Mart, Ingles and Goody's, in Knoxville, TN; the 98,155 sq.ft. Cumberland Galleria, anchored by Wal*Mart and Ingles, in New Tazewell, TN; the 114,192 sq.ft. Tellico Plaza, anchored by Wal*Mart and Bi-Lo, in Lenoir City, TN and the 171,546 sq.ft. Highland Square, anchored by Wal*Mart and Kroger, in Crossville, TN.

  For more information, contact Dennis Gershenson at (248-350-9900), Fax (350-9925).

 

Appaloosa Land Company has the listing to sell a 65,340 sq.ft. pad site in Houston, TX.  The site is divisible.  The asking price is $490,450.  The company is in the market to acquire projects in the Houston, Dallas, Austin and San Antonio, TX markets.  Preferred projects are priced from $500,000 to $1 million.

  For more information, contact Victor Botrie at (281-558-9697), Fax (558-9330).

 

Trinity Financial/MCO Construction is in the market to acquire shopping centers nationwide.  Preferred projects are priced from $500,000 and have solid cash flow, stable tenancy and recent renovations.

  For more information, contact Gregory Jackson at (215-382-4800), Fax (476-8980).

 

Allen Fuller Co. Realtors represents investors in the market to acquire anchored shopping centers having GLAs of at least 75,000 sq.ft. nationwide.  The investors are also in the market to acquire single-tenant retail site, with at least 10 years remaining on the lease, nationwide.

  For more information, contact David Mufson at (305-532-0881).

 

Kitchell Development Company recently sold Rainbow Promenade Shopping Center in Las Vegas, NV to Pan Pacific Retail Properties, Inc. for $31.3 million.  The 229,000 sq.ft. project is anchored by a 10-screen United Artists Theater, Linens 'N Things, OfficeMax, Barnes & Noble, Cost Plus, Petco, Aaron Brothers, Party City and Nevada Bob's.

  For more information, contact Don Glatthorn at (602-264-4411).

 

Crown American Realty Trust recently acquired Valley Mall in Hagerstown, MD from Hagerstown Valley Mall Associates for $31.7 million.  The 680,000 sq.ft. project is anchored by JC Penney, Bon-Ton and Montgomery Ward.  The purchase also included 31 acres of land adjacent to the mall which can be used for future mall expansion.

  For more information, contact Mark Pasquerilla at (814-535-9364).

 

Mile High Properties brokered the sale of Coal Mine Shopping Center in Littleton, CO.  The 122,396 sq.ft. project was sold for $6.85 million.

  For more information, contact Charles Webb, Richard Schierburg or Grant Nelson at (303-832-0817).

 

Erwin L. Greenberg & Associates is in the market to acquire shopping centers located east of the Mississippi River.  Preferred projects should have GLAs between 75,000 sq.ft. and 350,000 sq.ft. and be priced from $5 million.

  For more information, contact Mark Bomse at (410-837-2500), Fax (837-0596).

 

Inland Real Estate Corporation recently acquired seven shopping centers for an aggregate cost of $53 million.  The centers include Cobbler Crossing Shopping Center in Elgin, IL.  The 102,634 sq.ft. project is anchored by Jewel/Osco, Goodyear Tire, Baskin Robbins, Fantastic Sam's, Hallmark, The Bedding Experts and Brueggers Bagels.  Mallard Crossing Shopping Center in Elk Grove Village, IL.  The 82,949 sq.ft. project is anchored by Eagle Food Store, Hollywood Video, Payless Shoe, Fannie May and Family Bookstore.  Calumet Square Shopping Center in Calumet City, IL.  The 39,936 sq.ft. project is anchored by Super Trak Auto, Aaronson Furniture and Popeye's Fried Chicken.  Sequoia Plaza Shopping Center in Milwaukee, WI.  The 35,253 sq.ft. project is anchored by a U.S. Post Office, Pizza Hut, Kinkos and Play It Again Sports.  River Square Shopping Center in Naperville, IL.  The 58,566 sq.ft. project is anchored by Al's Seafood, Salon Suites and West Egg Cafe.  In addition, the company acquired a 70,300 sq.ft. project leased to Dominick's Finer Foods in Schaumburg, IL and a 70,300 sq.ft. project leased to Dominick's Finer Foods in Highland Park, IL.

  For more information, contact Lou Quilici or Steve Sanders at (708-218-8000).

 

Prime Retail, Inc. recently acquired Niagara International Factory Outlets in Niagara Falls, NY and Shasta Factory Stores in Shasta, CA from Benderson Development Co. for a combined purchase price of $101 million.  The 534,000 sq.ft. Niagara International Factory Outlets' lead tenants include Bose, Brooks Brothers, Burberry's, Calvin Klein, Christian Dior, Coach, Donna Karan, Eddie Bauer, Gap, J. Crew, Jones New York, Nautica, Off 5th-Saks Fifth Avenue Outlet, Polo Ralph Lauren and Tommy Hilfiger.  The 165,000 sq.ft. Shasta Factory Outlets' lead tenants include Bugle Boy, Polo Ralph Lauren, Tommy Hilfiger and VF Factory Outlet.

  For more information, contact Prime Retail at (410-234-0783).

 

Klaff Realty, LP recently acquired two properties in CT previously occupied by Lechmere, a subsidiary of Montgomery Ward, through a competitive bankruptcy auction.  The properties, located in North Haven and Milford, contain approximately 61,000 sq.ft. each and are both available for lease.

  For more information, contact Marty Wynne at (312-360-1234).

 

HRE Properties, Inc. recently completed the acquisition of the anchor portion of Arrowhead Shopping Center in Jonesboro, GA for $2.26 million.  The single tenant site consists of a 117,500 sq.ft. Value City Department Store.

  For more information, contact Willing Biddle at (203-863-8200).

 

Cohen and Company, Inc. Real Estate brokered the sale of Spring Creek Centre in Fayetteville, AR.  The 600,000 sq.ft. project, which is expected to open this year, will be anchored by a 212,000 sq.ft. Wal*Mart Supercenter, a 152,000 sq.ft. National Home Center, a 50,000 sq.ft. Service Merchandise, a 30,000 sq.ft. Goody's Family Clothing store and a 28,000 sq.ft. T.J. Maxx store.  The site is located adjacent to Northwest Arkansas Mall.  The buyer was Developers Diversified Realty Corporation and the seller was an AR-based developer.

  For more information, contact Helen Putterman or Richard Kaiser at (212-679-1222), Fax (679-1533).

 

Colliers Macaulay Nicolls International brokered the sale of Lynnwood center in Lynnwood, WA.  The 164,724 sq.ft. project is anchored by Safeway, Sports Authority and Payless.  Parkway Capital, Inc. purchased the site from American Properties Investments, Inc. for $20.175 million.

  For more information, contact Terry Moss or Paul Sleeth at (206-223-0866).

 

Duke Realty Investments has the listing to sell Marketview Shopping Center in Champaign, IL.  The 173,553 sq.ft. project is anchored by Toys 'R Us, Barnes & Noble and T.J. Maxx.  Both Toys 'R Us and Barnes & Noble own their own real estate.  The asking price is $7.5 million.  The company has the listing to sell Sugarcreek Plaza in Dayton, OH.  The 152,140 sq.ft. project is anchored by Cub Foods and Drug Emporium.  Cub Food owns its own real estate.  The asking price is $7.8 million.  The company also has the listing to sell Lakewood Plaza in Bloomington, IL.  The 195,310 sq.ft. project is anchored by K's Merchandise, Staples and Shoe Carnival.  The asking price is $9.5 million.

  For more information, contact Larry Myrvold at (317-574-3517), Fax (574-4013).

 

 

Overheated Sales

 

by Alan A. Alexander

Many of us in the shopping center field have barely come to grips with the most recent recession and we are already seeing signs of an overheated buying spree by investors trying to amass a large shopping center portfolio.

 

There is little doubt that over the long term, shopping centers should be a strong investment primarily because they are the enabling vehicle for the shoppers of the United States to gain the goods and services that they need and desire to fulfill the American dream.  As a result I think it is fairly safe to say that the long term health of shopping centers in general is quite good.

 

However, it is the short term health, not of shopping centers, but of investors in shopping centers that I am concerned with here.

 

I am aware of one recent sale where a shopping center was sold, based on an unsolicited offer which was almost the source of amazement to the seller, who was a very sophisticated owner of income producing properties, including shopping centers.  The price was well above what was anticipated by the seller and a deal was concluded, still to the amazement of the seller.  It is quite possible that the buyer saw value that the seller did not, but it is also possible that the buyer in the haste of trying to patch together a large portfolio overpaid for the property and unless very near miraculous deals present themselves, the property could belong to the lender in the short term.

 

Conservative buyers and owners have, in recent years, cut down on the debt coverage ratios and loan to value ratios and this should hold them in good stead during economic downturns.  The lenders were almost out of the lending market for a long period of time because the economics did not make sense, but it appears that financing is loosening up and old habits are hard to break.

 

We are aware of another sale where the sale price and debt load make the viability of the project somewhat questionable.  It appears that the buyers have concluded that their expertise will bring about some immediate increases in the fortunes of the shopping center and therefore the higher payment will be fully justified.  So far that has not been the case as this property was well managed and leased prior to the sale, so the chances of a major increase in its fortunes were rather remote.  In the meantime debt service is not being met and it appears to be only a matter of time before the lender becomes the proud owner of the shopping center.  A more complete job of due diligence may well have averted this disaster for both buyer and lender.

 

No matter that the economy has improved dramatically for most of us in the shopping center field, the fact remains that we are still over stored and that excess capacity will not be absorbed any time in the immediate future.  Some of that excess capacity needs to go through a change of use to make it viable and some of just needs to wait until the market catches up.  In either case, time will be needed for the solutions to work and in our business time is money.  There is little doubt that there are still under performing properties in the market place and these can represent true value, but it will also take considerable expertise to bring the value out and it is very likely not going to be done over night.

 

Optimism is a wonderful thing and our business has its share, but we have to temper that optimism with a very large dose of reality and not let our judgement be impaired by the "good economic news" of the moment.  The old stand bys of location, location, location, tenant mix and market rents will hold us in good stead if we just apply them before we make our decisions and not believe our own hype that where everyone else has failed, we have the "smarts" to make this the better mouse trap.

 

We must view the shopping center as a long term investment and make purchases with that view in mind and fully understand that there will be good and bad times and the measure of our long term success generally depends on how well we weather the bad times.

 

Alan Alexander is a Senior Vice President of Woodmont Real Estate Services, Inc., 1050 Ralston Avenue, Belmont, CA 94002; 707-224-5126, Fax 224-5018.

 

 

Who's Opening & Where

 

Inca Computer Company (313-567-5018) recently opened its first three stores in Dearborn, MI; Costa Mesa, CA and Birmingham, MI.  The full-service computer stores allow customers to purchase, upgrade and service computers.

 

Purina Mills, Inc. (314-768-4100) recently opened an America's Country Store in Fort Mill, SC.  The store sells horse, bird and pet food and supplies as well as lawn and gardening equipment.  The company operates three other units in Kalamazoo, MI; Westfield, IN and Walla Walla, WA.

 

CompUSA, Inc. (972-982-4000) recently opened a 26,300 sq.ft. store at Colony Square Shopping Center in Sugar Land, TX; a 25,000 sq.ft. store in Spokane, WA and stores in Boston, MA; Raleigh, NC; Reno, NV; Salt Lake City, UT and Wichita, KS.  The company is planning to open a 31,400 sq.ft. store at Grossmont Trolley Center in La Mesa, CO early this year; a 28,000 sq.ft. store at Tower Plaza Shopping Center in Omaha, NE during the Summer and a 26,000 sq.ft. store at Easton Market Shopping Center in Columbus, OH during the Summer.

 

Kmart (810-643-1000) recently opened a 99,000 sq.ft. Big Kmart store at the site of a former Clover store in downtown Philadelphia, PA.  It is the first Big Kmart store to be located in the downtown area of a major city.  In addition, the company recently opened 24 Big Kmart stores in the Dallas and Houston, TX markets.

 

Maggiano's Little Italy/Corner Bakery (214-770-9373) recently opened a 12,500 sq.ft. restaurant at South Coast Plaza in Costa Mesa, CA.  It is the chain's first unit west of Chicago, IL.

 

CVS (401-765-1500) recently began converting 72 former Revco stores in the Greensboro, NC market.  The company eventually plans to convert all 2,600 former Revco stores to its CVS format.

 

Great Earth Vitamins, Inc. (310-571-0571), which currently operates 140 stores, plans to open as many as 75 additional stores nationwide by 2000.  The company's long-term goal is to have 500 stores operating by 2003.

 

Sears, Roebuck and Co. (847-286-0545) plans to test a new concept store call The Great Indoors in the Denver, CO market.  The store, which is expected to open during February, will be for do-it-yourself home decorators while catering to customers who are remodeling or redecorating kitchens, bathrooms, bedrooms and other rooms.  The company plans to open a second unit at an undetermined location.  In addition, Sears plans to open a 92,356 sq.ft. department store at Lakeshore Mall in Sebring, FL during Spring 1999.

 

Beall's Department Stores, Inc. (941-747-2355) is looking to open an 87,000 sq.ft. store at a former Wal*Mart space at Fountain Court Plaza in Bradenton, FL.

 

Sun Television and Appliances, Inc. (614-492-5600) plans to open as many as 20 stores in rural markets in OH, IN, KY, PA, VA and WV during 1998.  The company recently reached an agreement to assume the leases of six stores formerly operated by Steinberg's in Cincinnati, OH; Columbus, IN; Morristown, TN and Richmond, KY.

 

The May Department Stores Company (314-342-6300) plans to construct a 95,000 sq.ft. Kaufmann's department store at Nittany Mall in State College, PA.

 

Schnuck Markets (314-994-4444) plans to open two supermarkets in Rockford, IL during 1998.

 

Eckerd Drug Store (813-399-6355) recently opened an 11,200 sq.ft. store that features a double drive-thru and an Eckerd Express one-hour photo lab in Venice, FL.  The company plans to open identical stores in Largo and Sarasota, FL during April 1998.

 

Pacific Sunwear of California, Inc. (714-701-4000) recently opened a 6,000 sq.ft. store in the Greenwich Village area of New York, NY.  It is the company's first street-front store.

 

CarMax Auto Superstores (804-527-4000) recently opened a 73,000 sq.ft. store in the Dallas/Fort Worth, TX area.  It is the company's second of five units planned for the market.

 

The Home Depot (770-433-8211) recently announced plans to open 61 stores throughout CA through fiscal year 2000.  If the company meets its goal, the company will have more than 150 stores in the state.

 

 

Financial News

 

Charming Shoppes, Inc. (215-245-9100) reported that its third quarter income was $164,000, compared to a third quarter loss of $3.6 million last year.  Third quarter sales fell to $236.2 million from $242.3 million last year.  Comparable store sales fell one percent during the quarter.  At the end of third quarter, the company operated 1,139 stores, trading as Fashion Bug, nationwide.

 

Barnes & Noble, Inc. (212-633-3300) reported that its company revenues for the third quarter increased 15% to $614.8 million from $532.6 million.  Revenues in the Barnes & Noble stores increased 22% to $503.7 million from $412.7 million.  Operating profit increased to $10 million, a 118% increase from $4.6 million last year.  During the quarter, Barnes & Noble comparable store sales increased 9.3% and B. Dalton comparable store sales fell 0.4%.  During the quarter, the company opened 16 Barnes & Noble stores and closed one and opened three B. Dalton stores and closed six to end with 469 Barnes & Noble stores and 556 B. Dalton stores.

 

The Dress Barn, Inc. (914-369-4600) reported that its first quarter net sales increased 9% to $156.2 million from $142.8 million last year.  Comparable store sales increased six percent during the quarter.  Net income was up 40% to $11.1 million from $7.9 million last year.  During the quarter, the company opened 23 stores and ended the quarter with 691 stores nationwide.

 

Eagle Hardware & Garden (206-227-5740) reported that its third quarter sales increased 26% to $249 million from $198 million during the third quarter last year.  Third quarter profit was up 17% to $8.9 million from $7.6 million last year.  Comparable store sales increased eight percent for the quarter.  The company plans to open a store in Coeur D'Alene, ID during its fourth quarter and a La Quinta, CA store next month.  The company plans to open as many as seven stores in Southern CA this year.  Currently, the company operates 30 stores in seven states.

 

Wal*Mart Stores, Inc. (501-273-4000) reported that its third quarter total sales were $28.777 billion, up 12% from $25.644 billion during the third quarter last year.  Net income for the quarter increased 16% to $792 million from $684 million.  By division, the Wal*Mart division had an 18% increase in operating profit to $1.499 billion from $1.27 billion.  The Sam's division had an 11% increase in operating profit to $230 million from $207 million and the International division had an operating profit of $52 million compared to an operating loss of $15 million last year.  The company currently operates 1,904 Wal*Mart stores, 436 Supercenters, 444 Sam's Clubs, eight Argentina units, eight Brazilian units, 144 Canadian Wal*Mart stores, three China store, two Indonesia Supercenters, 396 Mexican units and 12 Puerto Rico units.

 

OfficeMax, Inc. (216-921-6900) reported that its third quarter net income increased 33% to $31.435 million from $23.719 million during the third quarter last year.  Operating income for the quarter increased 37% to $50.925 million from $37.102 million during the quarter.  During the quarter, the company opened 39 stores and currently operates 659 stores in 48 states and Puerto Rico.

 

Kohl's Corporation (414-703-7000) reported that its third quarter net sales increased 26.7% to $757.8 million from $598.1 million during the third quarter last year.  Comparable store sales increased 10.6% for the quarter.  Net income increased to $32.5 million from $21.9 million last year.  During the quarter, the company opened 10 stores and ended the quarter with 182 stores.  During Spring, the company plans to open 15 stores.

 

Manhattan Bagel Company, Inc. (732-544-0155) recently announced that as a result of recent losses ($14.2 million during the third quarter) and being placed in default by its primary lender, First Union National Bank, it has filed a voluntary petition for reorganization under Chapter 11.  The filing will enable the company and franchisees to conduct business as usual while the company develops a plan of reorganization.  The company said that it is pursuing a number of actions to improve its operating results.  With company-owned stores identified as a major component of the operating losses, the company has undertaken a program to sell those stores to franchisees or close them.  Before filing for bankruptcy, the company operated and franchised 360 stores in 19 states.

 

 

Lease Signings

 

Legend Properties, Inc. (610-941-4034) leased 18,000 sq.ft. to Med Max, 8,500 sq.ft. to Mandees and space to Old Country Buffet at Garden State Pavilion Shopping Center in Cherry Hill, NJ; 25,000 sq.ft. to Swann Pantry Discount Supermarket at Country Square Shopping Center in Quakertown, PA; 2,400 sq.ft. to Computer Renaissance at Talleyville Shopping Center in Wilmington, DE and 1,900 sq.ft. to Coco's Pizza at Cambridge Square Shopping Center in West Chester, PA.

 

Divaris Real Estate, Inc. (757-497-2113) leased 11,952 sq.ft. to Factory Card Outlet at Hanes Point Shopping Center in Winston-Salem, NC; 2,652 sq.ft. to Golden Corral at Chesapeake Square Mall in Chesapeake, VA; 2,500 sq.ft. to C&G Financial at Food Lion Center in Charlotte, NC; 1,600 sq.ft. to C&G Financial at Pineville Town Market in Pineville, NC; 1,600 sq.ft. to C&G Financial in Charlotte, NC; 1,534 sq.ft. to C&G Financial in Charlotte, NC; 1,500 sq.ft. to C&G Financial at Akers Shopping Center in Gastonia, NC and 2,500 sq.ft. to Gold Rush Jewelers in Richmond, VA.

 

The Rotella Group, Inc. (954-765-0778) leased 81,000 sq.ft. to Baers Furniture at Shoppes of Central Park in Margate, FL.

 

Metro Commercial Real Estate, Inc. (609-866-1900) leased 65,000 sq.ft. to Shaw's Supermarket in Newburgh, New Rochelle and Nanuet, NY.

 

Ripco Real Estate Corp. (610-834-8000) leased 5,200 sq.ft. to REPP Ltd. Big & Tall in King of Prussia, PA.

 

Boyd, Page & Associates (713-877-8400) leased space to Starbucks Coffee Co. at Texas Commerce Tower, Penzoil Place, Champions Forest Plaza and Shepherd Plaza in Houston, TX and 7,500 sq.ft. to Lakeshore Learning Store at Post Oak Shopping Center in Houston, TX.

 

Hicks & Rotner Retail (410-823-4250) leased 12,000 sq.ft. to Save-a-Lot at Midtown Market Place in Baltimore, MD; 7,500 sq.ft. to Bikes USA at Columbia Crossing Shopping Center in Columbia, MD; 1,600 sq.ft. to Apsara and 2,937 sq.ft. to His & Hers at Iverson Mall in Hillcrest Heights, MD.

 

 

Exclusives

 

Real Estate Portfolio Specialists, Inc. (818-449-3566) has been appointed the leasing agent for Cities Pavillion in Redlands, CA.  The 500,000 sq.ft. project, which is currently being developed, will incorporate entertainment, sports, learning and retail activities.  The site is expected to open during Fall 1998.

 

Island Associates (516-587-5050) has been named the exclusive broker and management agent for 4117 Hempstead Turnpike in Bethpage, NY.  The 42,000 sq.ft. project has 30,000 sq.ft. available for lease.

 

The R.H. Johnson Company (816-561-5111) has been selected to sublease three former Schnuck's Grocery stores and to market for sale a former Dahl's Foods store.  The three vacant Schnuck's locations are a result of the Hy-Vee Food Stores purchase of the Kansas City, MO Schnuck's locations.  Since these three stores overlap existing Hy-Vee stores, Hy-Vee wishes to sublease these to non-grocery retailers.  The three stores are located in Raytown, MO (60,000 sq.ft.); Olathe, KS (55,000 sq.ft.) and Overland Park, KS (73,000 sq.ft.).  The former Dahl's Food store for sale is a 60,000 sq.ft. unit located in Lenexa, KS.

 

CB Commercial's Las Vegas, NV office (702-369-4800) has been named the property manager for Galleria Commons in Las Vegas, NV.  The 280,000 sq.ft. project is anchored by HomeBase, Stein Mart and CompUSA.

 

 

Closings

 

Bradlees, Inc. (617-380-5863) plans to close its underperforming stores in Groton and New London, CT; Johnson City and Utica, NY and Allentown, PA by the end of February.

 

Petrie Retail, Inc. (201-866-3600) recently closed 100 of its Petrie, Mariannes, Stuarts and Jean Nicole stores in the Mid-Atlantic and Northeastern regions.

 

Federated Department Stores, Inc. (513-579-7000) plans to close its Lazarus department stores at Millcreek and West Erie Plaza in Erie, PA; Beaver Valley and Greengate Mall in Pittsburgh, PA and at Salem Mall in Dayton, OH early this year.  The stores have been underperforming and are being closed as part of the company's strategic refocusing on markets and locations that have higher future growth potential.

 

Southland Corp. (214-828-7039) recently closed its only 7-Eleven store in Alamosa, CO.  The company had operated the store since 1978.

 

 

Mergers & Acquisitions

 

Aaron Rents, Inc. (404-231-0011) announces that it has signed an agreement to acquire the assets of RentMart Rent-To-Own, Inc., which operates 40 rent-to-own stores in TX.  The addition of the stores will give Aaron Rents 378 stores in 29 states.

 

CVS Corp. (401-765-1500) recently completed the sale of its Bob's Stores subsidiary to a management group of Bob's and Citicorp Venture Capital Ltd.  Bob's Stores currently operates 29 units in New England, NJ and NY.  The sale marks the final step in the restructuring of CVS, which formerly was Melville Corp., and included the disposition of its Marshalls, Kay-Bee Toys, This End Up, Wilson's Leather and Linens 'N Things divisions.  Its Thom McAn shoe stores were closed.  In November of 1996, the company formally became CVS Corp. and last Spring the company acquired Revco Drug Stores in a $2.8 billion transaction.

 

Super Valu, Inc. (612-828-4441) has agreed to buy five Jitney Jungle and Delchamps supermarkets in MS and sell them to independent operators later.  The stores are being sold by Jitney Jungle as part of its agreement with the Federal Trade Commission to sell 10 stores from its recently completed acquisition of Delchamps.

 

Jreck Subs Group, Inc. (315-782-0760) recently completed the acquisition of Quality Franchise Systems, Inc., franchisor of the 75-unit Mountain Mike's Pizza chain, which operates restaurants in AZ, CA, CO, NV and OR.  The acquisition give Jreck Subs Group more than 250 restaurants in 14 states.

 

Eateries, Inc. (405-755-3607) recently completed the acquisition of 17 Mexican restaurants from Famous Restaurants, Inc. for $9.425 million.  The acquisition includes the chain of Garcia's Mexican Restaurants, Casa Lupita Mexican Restaurants and Carlos Murphy's Restaurants.  The agreement also includes the development and franchise rights for the concepts.

 

 

Lead Sheet

 

Claire's Boutique

Sharon Levi

2400 West Central Road

Hoffman Estates, IL 60195

847-765-1100, Fax 765-4618

 

Accessories

The 1,800-unit chain operates locations nationwide.  The stores, selling women's accessories, occupy spaces of 800 sq.ft. to 1,200 sq.ft. in regional malls.  Preferred anchors include JC Penney and Sears.  Plans call for 200 openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include a population of at least 200,000 within two miles earning $40,000 as the average income.  Leases running 10 years are typical.

 

Hot Topic, Inc.

dba Hot Topic

Marc Bertone

3410 Pomona Boulevard

Pomona, CA 91768

909-869-6373, Fax 869-6374

 

Apparel

The 108-unit chain operates locations in AZ, CA, CT, GA, IL, IN, MA, MI, NH, NJ, NY, NM, NV, NC, OH, OR, PA, SC, TN, TX and WA.  The stores, selling men's and women's apparel, accessories and gifts, occupy spaces of 1,200 sq.ft. to 1,600 sq.ft. in regional malls.  Preferred anchors include fashion department stores.  Plans call for 40 openings in the coming 18 months.  Expansion will take place nationwide.  Leases running 10 years are typical.

 

Pennsylvania Fashions, Inc.

dba Stockroom

Kim Weismann

155 Thornhill Drive

Warrendale, PA 15086

412-776-9780, Fax 776-4111

 

Apparel

The 210-unit chain operates locations nationwide.  The men's and women's casual apparel stores occupy spaces of 3,000 sq.ft. to 4,000 sq.ft. in regional malls.  Preferred anchors include department stores.  Plans call for 30 openings in the coming 18 months.  Expansion will take place nationwide.

 

Cottman Transmission Systems, Inc.

dba Cottman Transmission

Dennis Fenerty

240 New York Drive

Fort Washington, PA 19034

800-394-6116, Fax 215-643-2519

 

Automotive

The 210-unit chain operates locations in AZ, CA, CO, DE, FL, GA, KS, LA, MD, MA, MI, MS, MO, NV, NJ, NY, NC, OH, OK, OR, PA, TX, VA, WV, Washington, D.C. and Canada.  The automotive service centers, specializing in transmission repairs, occupy spaces of 2,500 sq.ft. to 4,000 sq.ft. in freestanding facilities.  Growth opportunities are sought nationwide.  Preferred demographics include a population of 50,000 within three miles earning $30,000 as the average income.  Leases running 15 years are typical and the company, which cites Aamco as competition, is franchising.

 

Maaco Enterprises, Inc.

dba Maaco Auto Painting & Bodywork

Richard Mina

381 Brooks Road

King of Prussia, PA 19406

610-265-6606, Fax 337-6176

 

Automotive

The 515-unit chain operates locations nationwide.  The automotive service centers, specializing in body work and painting, occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in freestanding facilities.  Plans call for 65 openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include a population of 50,000 within five miles earning $35,000 as the average income.  Leases running 15 years are typical and the company is franchising.

 

Precision Auto Care

dba Precision Tune, Precision Lube Express,

Precision Auto Wash

David Moeslein

PO Box 5000

Leesburg, VA 20175

703-777-9095, Fax 777-9190

 

Automotive

The 566-unit chain operates locations nationwide.  The automotive service centers, offering maintenance and washing services, occupy spaces of 1,800 sq.ft. to 3,900 sq.ft. in freestanding facilities and strip centers.  Preferred anchors include Kmart, Wal*Mart and supermarkets.  Plans call for 225 openings in the coming 18 months.  Expansion will take place throughout North America, in Mexico and internationally.  Preferred demographics include a population of 75,000 within three miles earning $35,000 as the median household income.  Leases running 10 years, with four five-year options, are typical and the company is franchising.

 

Rocs Cards & Gifts

Fred Wolf

70 Surrey Lane

Eatontown, NJ 07724

732-542-5527, Fax 542-2280

 

Cards & Gifts

The 1,300-unit chain operates locations nationwide.  The stores, selling alternative cards and gifts, occupy spaces of 1,000 sq.ft. to 2,000 sq.ft. in downtown store fronts, regional malls, power, specialty and strip centers.  Preferred anchors include department stores and supermarkets.  Plans call for 100 openings in the coming 18 months.  Expansion will take place nationwide, mainly in metropolitan areas.  Preferred demographics include a population of 30,000 within three miles earning $40,000 as the average income.

 

Pamida, Inc.

dba Pamida

Bob Ellison

PO Box 3856

Omaha, NE 68103

402-339-2400, Fax 596-7330

 

Department Store

The 149-unit chain operates locations in IL, IN, IA, KS, KY, MI, MN, MO, MT, NE, ND, OH, SD, WI and WY.  The department stores occupy spaces of 40,000 sq.ft. in freestanding facilities and strip centers.  Preferred co-tenants include supermarkets. Plans call for 10 openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include a population of 15,000 within 20 miles.  Leases running 20 years are typical and the company cites Kmart and Wal*Mart as competition.

 

The Walgreen Company

dba Walgreens

Roger Rittinger

200 Wilmot Road

Deerfield, IL 60015

847-940-2500, Fax 914-3078

 

Drug Store

The 2,380-unit chain operates locations nationwide, exclusive of MT and WY.  The drug stores occupy spaces of 12,000 sq.ft. to 15,000 sq.ft. in freestanding facilities.  Plans call for 280 openings in the coming 18 months.  Expansion will take place in the existing markets.  Leases running 20 years are typical.

 

HH Gregg, Inc.

dba HH Gregg

Jack Esselman

c/o JF Esselman, Inc.

9000 Keystone Crossing #730

Indianapolis, IN 46240

317-844-6833, Fax 574-0481

 

Electronics

The 18-unit chain operates locations in KY, IN and TN.  The stores, selling consumer electronics, computers and appliances, occupy spaces of 20,000 sq.ft. to 40,000 sq.ft. in freestanding facilities and power centers.  Plans call for three openings in the coming 18 months.  Expansion will take place in TN and IN.  Preferred demographics include a population of 100,000 within seven miles earning $35,000 as the average income.  Leases running 10 years are typical and the company cites Best Buy and Circuit City as competition.

 

Tandy Corporation

dba Radio Shack

Andy Zeinfeld

300 West Third Street, Suite 700

Fort Worth, TX 76102

817-415-3224, Fax 415-6872

 

Electronics

The 7,000-unit chain operates locations nationwide.  The consumer electronics stores occupy spaces of 2,000 sq.ft. to 2,400 sq.ft. in downtown store fronts, regional malls and strip centers.  Plans call for at least 200 openings in the coming 18 months.  Expansion will take place nationwide.  Preferred demographics include a population of 45,000 within three miles earning $22,000 as the average income.  Leases running five years are typical.

 

Kerasotes Theater, Inc.

dba Kerasotes Theater

Steve Frishman

2 Mid America Plaza, Suite 330

Oakbrook Terrace, IL 60181

630-954-7300, Fax 954-7304

 

Entertainment

The 100-unit chain operates locations in IL, IN, MN and MO.  The movie theaters occupy spaces of 40,000 sq.ft. in freestanding facilities.  Growth opportunities are sought in the existing markets.

 

Leisure Entertainment Corp.

dba Laser Quest

Randy Iaboni

c/o Randy Iaboni Real Estate Ltd.

12 MacPherson Avenue, Number 4

Toronto, Ontario M5R 1W8

416-925-7767

 

Entertainment

The 54-unit chain operates locations in NC, KY, MI, TN, VA, UT, WA, OK, OH, CO, TX, CA, AZ, KS, IL, NY, PA, NE, WI, FL and Canada.  The laser-tag facilities occupy spaces of 7,500 sq.ft. to 10,000 sq.ft. in freestanding facilities and strip centers.  Preferred co-tenants include regional malls, multiplex movie theaters and other recreational facilities.  Plans call for 20 openings in the coming 12 months.  Expansion will take place nationwide.  Preferred demographics include a population of 250,000 within seven miles earning $40,000 as the median income.  Leases running 10 years are typical.

 

Mini-Golf, Inc.

dba Mini-Golf

Joseph Rogari

202L Bridge Street

Jessup, PA 18434

717-489-8623, Fax 383-9970

 

Entertainment

The 1,931-unit chain operates locations nationwide.  The entertainment centers, featuring miniature golf, occupy spaces of 3,000 sq.ft. to 4,000 sq.ft. in regional malls and strip centers.  Growth opportunities are sought nationwide.

 

Ca$h Plus, Inc.

dba Ca$h Plus

Craig Wells

3002 Dow Avenue, Suite 510

Tustin, CA 92680

888-707-CASH, Fax 714-731-2099

 

Financial

The 16-unit chain operates locations in CA and NV.  The stores, offering check cashing services, wire transfers and small loans, occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in downtown store fronts, freestanding facilities, power, specialty and strip centers.  Preferred anchors include supermarkets, drug stores and discount stores.  Plans call for 30 openings in the coming 18 months.  Expansion will take place in the Southwestern region and along the West Coast.  Preferred demographics include a population of 15,000 within one mile earning $50,000 as the average income.  Leases running five years, with two five-year options, are typical and the company is franchising.

 

Luggage Factory Outlet, Inc.

dba Bagmaker's Factory Outlet

William McCarthey

PO Box 187

Ringoes, NJ 08551

908-788-4810, Fax 788-5635

 

Luggage

The 10-unit chain operates locations in FL, ME, NJ, NY, PA and SC.  The stores, selling luggage, handbags and accessories, occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in freestanding facilities and outlet centers.  Plans call for as many as four openings in the coming 18 months.  Expansion will take place in NJ, NY and eastern PA.  Leases running five years are typical.

 

Cali Pronail

Larry Childers

c/o Venture Resources, Inc.

800 West 47th Street, Suite 420

Kansas City, MO 64112

816-531-8898, Fax 531-8818

 

Nail Salon

The 12-unit chain operates locations in FL, KS, LA, OK and TX.  The nail salons occupy spaces of 700 sq.ft. to 900 sq.ft. in power centers and regional malls.  Plans call for 12 openings in the coming 18 months.  Expansion will take place nationwide.  Leases running six to seven years are typical.

 

Computerized Cobbler

Eric Neuner

4911B Clairemont Drive

San Diego, CA 92117

619-273-3742, Fax 273-8507

 

Service

The 10-unit chain operates locations in southern CA.  The stores, offering shoe repairs, occupy spaces of 500 sq.ft. in power centers and regional malls.  Preferred anchors include Macy's and Nordstrom.  Plans call for as many as five openings in the coming 18 months.  Expansion will take place in Los Angeles and Orange counties in CA.  Leases running five years are typical.

 

The Clarks Companies, N.A.

dba Hanover Shoes, Bostonian Shoes, Clarks, Back Bay, Bostonian/Clarks Outlet

Criss Nigro

156 Oak Street

Newton Upper Falls, MA 02164

713-243-4194, Fax 243-4210

 

Shoes

The 213-unit chain operates locations in AZ, CA, CT, DE, FL, GA, IL, IN, KY, LA, MA, MD, MI, MN, MO, OH, NJ, NM, NV, NY, OH, OK, OR, PA, SC, TN, TX, VA and WV.  The men's and women's shoe stores occupy spaces of 1,200 sq.ft. in outlet centers and regional malls.  Plans call for 10 openings in the coming 18 months.  Expansion will take place nationwide.  Leases running 10 years are typical.

 

Chesapeake Knife & Tool

Jack Herman

635 Potomac River Road

McLean, VA 22102-1402

703-734-1808, Fax 734-1808

 

Specialty

The 18-unit chain operates locations in FL, MD, MA, VA and Washington, D.C.  The stores, selling cutlery and gifts, occupy spaces of 750 sq.ft. to 1,000 sq.ft. in regional malls.  Plans call for six openings in the coming 18 months.  Expansion will take place in MD, VA and Washington, D.C.

 

Del Sol

Ryan Deakins

167 East 900 South

Provo, UT 84606

801-373-8404, Fax 373-0908

 

Specialty

The 83-unit chain operates locations in AL, AZ, CA, CO, FL, GA, HI, ID, IL, IA, LA, MD, MA, MI, MN, MO, MT, NV, NY, PA, SD, TX, UT, WA and WY.  The stores, selling t-shirts, hats, nail polish and jewelry, all of which change colors in the sun, occupy kiosk and push cart spaces in power centers.  Plans call for 40 openings in the coming 18 months.  Expansion will take place nationwide.

 

Consolidated Stores

dba Toy Liquidators

Steve Ramey

Box 28512

Columbus, OH 43228-0521

614-278-7085, Fax 278-6763

 

Toys

The 113-unit chain operates locations in 38 states.  The toy stores occupy spaces of 4,500 sq.ft. in outlet centers.  Plans call for as many as 10 openings in the coming 18 months.  Expansion will take place nationwide.  Leases running five years are typical.

 

Universal International

dba Only Deals

Gary Amoth

5000 Winnetka Avenue North

New Hope, MN 55428

612-533-1169, Fax 533-1158

 

Variety

The 80-unit chain operates locations in IL, IA, MD, MN, NE, NY, ND, SD, TX and WI.  The variety stores occupy spaces of 10,000 sq.ft. to 16,000 sq.ft. in power and strip centers.  Preferred anchors include discount stores and supermarkets.  Plans call for as many as 20 openings in the coming 18 months.  Expansion will take place in the Eastern, Midwestern and Southern regions.  Preferred demographics include a population of 20,000 within five miles earning $35,000 as the average income.  Leases running four years are typical.

 

 

Food Tenants Hungry for Sites in The South-Central Region

 

Schlotzsky's, Inc. trades as Schlotzsky's Deli at 615 locations in 32 states.  The delis occupy spaces of 3,200 sq.ft. in freestanding facilities.  Preferred anchors include Home Depot, Target, Wal*Mart and regional malls.  Plans call for 200 openings in the coming 18 months.  Expansion will take place in TX, GA, NC, SC, CO, FL, KS, KY, TN, WI, MN, VA, WA, AZ, NV, UT and MO.  Preferred demographics include a population of 10,000 within one mile earning $30,000 as the average income.  Leases running 20 years are typical.

  For more information, contact Theresa Seiler or Kelly Arnold, Schlotzsky's, Inc., 200 West 4th Street, Austin, TX 78701; 512-469-7500, Fax 469-7574.

 

Archibald Candy Corp. trades as Fannie Farmer and Fannie May at 25 locations in AZ, CA, CO, FL, GA, IN, KY, MD, NC, OH, TX and VA.  The candy stores occupy spaces of 150 sq.ft. in regional malls.  Preferred anchors include department stores and Victoria's Secret.  Plans call for 50 openings in the coming 18 months.  Expansion will take place in the existing markets.  The company operates a seasonal business.

  For more information, contact Rich Peritz, Archibald Candy Corp., 1137 West Jackson Boulevard, Chicago, IL 60607-2905; 312-432-3471, Fax 243-3992.

 

Edo Japan operates 90 locations in AZ, CA, CO, FL, HI, WA, OR, MD, UT, ID, TX, NV and NM.  The Japanese restaurants occupy spaces of 400 sq.ft. to 800 sq.ft. in power centers and regional malls.  Plans call for 10 openings in the coming 18 months.  Expansion will take place in CA, CO, HI, IL, KS, MI and TX.  Leases running five to ten years are typical and the company is franchising.

  For more information, contact S.K. Ikuta, Edo Japan, 4838 32nd Street SE, Calgary, Alberta T2B 2S6; 403-215-8800, Fax 215-8801.

 

Dog N Suds Drive In Restaurant operates 24 locations in IL, IN, MI, MO, OH and WI.  The fast food restaurants occupy spaces of 2,000 sq.ft. in freestanding facilities.  Preferred anchors include Kmart, Wal*Mart and supermarkets.  Plans call for 15 openings in the coming 18 months.  Expansion will take place in AL, FL, GA, KY, MS and TN.  Preferred demographics include a population of 40,000 within three miles earning $45,000 as the average income.  Leases running 15 years are typical and the company is franchising.

  For more information, contact Richard Morath, Dog N Suds Drive In Restaurant, 3002 Jeremes Landing, Garland, TX 75043; 972-278-3061, Fax 840-2253.

 

RPM Pizza, Inc. trades as Domino's at 142 locations in AL, AR, LA and MS.  The pizza restaurants occupy spaces of 1,100 sq.ft. in freestanding facilities and convenience stores.  Preferred anchors include Blockbuster Video, Kmart and Wal*Mart.  Plans call for 15 openings in the coming 18 months.  Expansion will take place in the existing markets.  Leases running three years, with options, are typical and the company cites Pizza Hut, Papa John's and Little Caesar's as competition.

  For more information, contact Linda Olier, RPM Pizza, Inc., 15384 5th Street, Gulfport, MS 39505; 601-832-4000, Fax 832-1092.

 

J.W. Restaurants does business as China Pantry and Teriyaki Express at 16 locations in CA, CO, TX and VA.  The restaurants, serving Chinese food and Japanese food, respectively, occupy spaces of 500 sq.ft. to 1,000 sq.ft. in outlet centers and regional malls.  Preferred anchors include department stores.  Plans call for three openings in the coming 18 months.  Expansion will take place in CA, CO, NC, TX, NC or VA.  Preferred demographics include a population of 100,000 within five miles earning $50,000 as the average income.  Leases running 10 years are typical and the company cites Panda Express and Edo Japan as competition.

  For more information, contact Jeremy Lao, J.W. Restaurants, 1907 Peaceful Hills Road, Diamond Bar, CA 91789; 909-598-6389, Fax 594-4002.

 

Mirabile Investment Corp. trades as Burger King at 34 locations in AR, MS and TN.  The fast food restaurants occupy spaces of 3,000 sq.ft. in freestanding facilities.  Preferred anchors include Wal*Mart.  Plans call for 15 openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 10,000 within three miles.  Leases running 20 years are typical.

  For more information, contact J.J. McNelis, Mirabile Investment Corp., 3569 Summer Avenue, Memphis, TN 38122; 901-324-0450, Fax 324-2953.

 

Chuy's Comida Deluxe, Inc. trades as Chuy's Hula Hut at nine locations in TX.  The restaurants occupy spaces of 4,500 sq.ft. to 6,500 sq.ft. in freestanding facilities.  Plans call for the opening of four units in the coming 18 months.  Expansion will take place in CO, NV, NM and TX.  Leases running 20 years are typical.

  For more information, contact Paul Brady, Chuy's Comida Deluxe, Inc., 1623 Toomy Road, Austin, TX 78704; 512-473-2783, Fax 473-8684.

 

Kelly's Coffee & Fudge Factory operates 42 locations in AZ, CA, MO and OK.  The restaurants, featuring coffee, baked goods and fudge, occupy spaces of 1,200 sq.ft. to 1,400 sq.ft. in power centers.  Plans call for 25 openings in the coming 18 months.  Expansion will take place in the Midwestern, Southeastern and Western regions.  Preferred demographics include a population of 100,000 within five miles earning $55,000 as the average income.  Leases running 10 years are typical and the company is franchising.

  For more information, contact Shalane Schwalm, Kelly's Coffee & Fudge Factory, 1554 South Sepulvde Boulevard, Suite 201, Los Angeles, CA 90025; 310-478-7713, Fax 477-4254.

 

La Madeleine French Bakery & Cafe operates 53 locations in AZ, GA, IL, LA, MD, TX, VA and Washington, D.C.  The French bakery and cafes occupy spaces of 3,800 sq.ft. to 4,500 sq.ft. in freestanding facilities, regional malls, power and specialty centers.  Preferred anchors include Williams-Sonoma, Banana Republic, Talbots and supermarkets.  Plans call for 15 openings in the coming 18 months.  Expansion will take place in the existing markets.  Preferred demographics include a population of 50,000 within two miles earning $70,000 as the average income.  Leases running 10 years are typical.

  For more information, contact A. Guy Mercvrio, La Madeleine French Bakery & Cafe, 6060 North Central Expressway #138, Dallas, TX 75206; 214-696-6962, Fax 696-0485.

 

 

Space Place

 

Louisiana

 

Lafayette-  Caffery Center is anchored by Winn-Dixie and Rite Aid.  The 87,500 sq.ft. project has a quarter-acre outparcel and two half-acre outparcels available for lease.  Demographics include a five-mile population of 95,700 earning $45,375 as the average income.

  For details, contact Mark Bomse of Erwin L. Greenberg & Associates at (410-837-2500), Fax (837-0596).

 

Ohio

 

Dayton-  Eastown Shopping Center is anchored by Village Discount.  The 195,292 sq.ft. project has spaces of 4,000 sq.ft. and 5,700 sq.ft. available for lease.  In Mansfield-  Appleseed Center is anchored by Kroger and Stein Mart.  The 260,000 sq.ft. project has spaces of 3,000 sq.ft., 3,600 sq.ft., 4,400 sq.ft. and an outlot available for lease.  Also in Mansfield-  Kingsgate Mall is anchored by Montgomery Ward and Phar Mor.  The 270,000 sq.ft. project has spaces of 1,352 sq.ft., 2,075 sq.ft., 5,700 sq.ft. and 65,000 sq.ft. available for lease.  Demographics include a five-mile population of 68,679 earning $39,770 as the average income.  Also in Mansfield-  West Park Shopping Center is anchored by TJ Maxx and Dunham's Discount Sports.  The 160,000 sq.ft. project has spaces of 3,124 sq.ft., 3,200 sq.ft., 3,562 sq.ft. and 3,750 sq.ft. available for lease.  Demographics include a five-mile population of 72,292 earning $39,495 as the average income.

  For details, contact Jodi Kibler of Skilken Properties at (614-253-8654), Fax (253-2991).

 

Pennsylvania

 

Wyncote-  Cedarbrook Plaza is anchored by Caldor, Pathmark, Toys 'R Us, Frank's Nursery, Modell's and Hollywood Video.  The 528,000 sq.ft. project has spaces from 900 sq.ft. to 50,000 sq.ft. available for lease.  The site is located near Cheltenham Square Mall.

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

 

Texas

 

Dallas-  Central Forest Shopping Center is anchored by Office Depot, Taco Bueno, Schlotzsky's and Le Peep.  The 94,813 sq.ft. project has space available for lease.  Demographics include a three-mile population of 134,149 earning $65,541 as the average household income.  In Fort Worth-  Hulen Pointe Shopping Center is anchored by AMC Theaters, Designer Shoe Warehouse, Fitness Connexxion and Drug Emporium.  The 174,338 sq.ft. project has space available for lease.  Demographics include a three-mile population of 78,556 earning $54,751 as the average income.  In Irving-  MacArthur/183 Shopping Center is anchored by Sack 'N Save and Blockbuster Video.  The 80,914 sq.ft. project has space available for lease.  Demographics include a three-mile population of 125,170 earning $47,720 as the average income.  In North Richland Hills-  Northwood Plaza Shopping Center is anchored by SAS Factory Shoes, Jenny Craig, Italian Oven Restaurant, Carpet Mills, One Price Clothing, Fantastic Sam's, Leaps & Bounds, Pep Boys, Levitz Furniture and McDonald's.  The 99,618 sq.ft. project has space available for lease.  Demographics include a three-mile population of 95,135 earning $45,405 as the average income.  In Plano-  Park West Plaza Shopping Center is anchored by Brookshires Grocery, Eckerd Drugs and CiCi's Pizza.  The 106,528 sq.ft. project has space available for lease.  Demographics include a three-mile population of 92,664 earning $83,740 as the average income.

  For details, contact ACR Realty, Inc. at (214-503-1799), Fax (342-1121).

 

Houston-  Cornerstone Shopping Center is anchored by Bizarre Bazaar and Captain's Choice Seafood.  The 55,225 sq.ft. project has spaces from 5,280 sq.ft. to 12,600 sq.ft. available for lease.  Also in Houston-  Woodwinds Shopping Center is anchored by Kroger, Walgreen's and Bally's Gym.  The 500,000 sq.ft. project has spaces from 943 sq.ft. to 8,800 sq.ft. as well as a 28,152 sq.ft. pad site available for lease.  In Lake Jackson-  Four Corners Shopping Center is anchored by Pizza Hut, Sleep City Mattress and Lake Theater.  The 75,289 sq.ft. project has a 2,000 sq.ft. space available for lease.  The site is located near Lowe's Home Improvement Center and Brazos Mall.  In Bay City-  Matagorda Plaza Shopping Center is anchored by Beall's, Mr. Gatti's Pizza, Eckerd's, JC Penney, On Cue Music and Dollar General.  The 126,396 sq.ft. project has a 4,500 sq.ft. space and a 36,562 sq.ft. former Safeway space, which is divisible, available for lease.  In Port Lavaca-  Calhoun Plaza Shopping Center is anchored by HEB Supermarket, Eckerd Drugs, Weiner's, Beall's, Family Dollar and Payless Shoes.  The 178,040 sq.ft. project has a 2,400 sq.ft. space available for lease.  In addition, HEB is planning to move to a larger location within the center and its current space will become available either late this year or early 1999.  In Wharton-  Eastgate Plaza Shopping Center is anchored by Eckerd Drugs, Family Dollar, Sears Brand Central, Weiner's, Movie Gallery and Sherwin Williams.  The 103,680 sq.ft. project has a 1,600 sq.ft. space and a 23,000 sq.ft. space available for lease.

  For details, contact Westco Property Management Co. at (281-367-9092), Fax (367-7678).

 

Houston-  Tanglewood Center is anchored by Walgreens and Blockbuster Video.  The project has spaces from 1,300 sq.ft. to 6,500 sq.ft. available for lease.

  For details, contact John Eaker or Kendall Miller at (713-622-8100).

 

Virginia

 

Richmond-  Chesterfield Crossing Shopping Center is anchored by Target, Ukrops and Kohl's.  The project has a 2,700 sq.ft. space available for lease.

  For details, contact Tred Spratley of Sigma National, Inc. at (804-320-6100), Fax (320-6660).

 

Washington

 

Bellingham-  Meridian Plaza has spaces from 919 sq.ft. to 4,524 sq.ft. available for lease.  The site is located across from the one million sq.ft. Bellis Fair and located within a few blocks from Circuit City, The Good Guys, HomeBase, West Marine, Cost Cutter Foods, Wal*Mart and Costco.  In Everett-  College Plaza is anchored by Albertsons and Payless Drugs.  The 166,238 sq.ft. project has a 70,400 sq.ft. space available for lease.  Demographics include a four-mile population of 63,530 earning $32,240 as the average family income.

  For details, contact Kerry Carlson of Ameplaza, Inc. at (253-838-8977).

 

 

Real Estate Professionals Making The News

 

The Brookhill Group (212-753-3123) announces that Robert Belzer has joined the company as vice president-acquisitions.  In his new position, Belzer will be responsible for evaluating acquisitions for the company which specializes in redeveloping under-performing shopping centers.

 

Equity Properties, Inc. (610-645-7700) announces that Peter Quinn has joined the company as a principal and head of the leasing division.

 

Jersey Mike's Franchise System (908-528-7676) announces that Mike Parkhill has joined the company as director of real estate.  Parkhill was formerly with H. Hovnanian Industries.

 

La-Z-Boy Incorporated (313-242-1444) announces that Gerald L. Kiser has been named president and chief operating officer.

 

CNM Associates (770-869-2700) announces that Jacqueline Wammock has joined the company as vice president regional director of leasing for the company's Atlanta, GA retail properties. 

 

Pliskin Realty and Development, Inc. (516-969-0958) announces that the company has launched a new division providing business brokerage services.  The division, JP Business Brokers, will be headed by Pliskin executive vice president Marvin Hartman and have an initial focus on categories such as dry cleaners, laundromats, restaurants, card and gift retailers and convenience stores.

 

The Greenberg Group, Inc. (516-295-0406) announces that Sheri Inkeles has joined the company as senior vice president of the specialty leasing group.  Inkeles is the former leasing director at Corporate Property Investors and Federal Realty Investment Trust.

 

Litvin/LaRue/Greenfield Commercial Real Estate (630-773-7500) announces that Marlon Stone has joined the company as a leasing representative.  Stone's responsibilities will include marketing excess space for Rite Aid Drug Stores in Chicago, IL and Milwaukee, WI.

 

The Home Depot (770-433-8211) announces that Andy McKenna has been appointed to the newly created position of senior vice president-strategic business development.  In his new position, McKenna's responsibilities will include supervising all growth initiatives from research through development and into the implementation stage, as well as chairing a steering committee dedicated to the company's strategic planning process.  Previously, McKenna served as president of the company's Midwest division.

 

Shopco Advisory Corp. (817-263-5723) announces that Joe Barilla has been named the leasing agent for its recently acquired Ridgmar Mall in Fort Worth, TX.

 

The Wet Seal, Inc. (714-583-9029) announces the appointment of Heather Hollister as vice president of real estate of Wet Seal, Contempo Casuals and Limbo Lounge.  In her new position, Hollister will oversee all of the company's real estate for new and existing store locations.  The company plans to open 75 stores this year.

 

The Sembler Company (813-384-6000)announces the following promotions: David Murphy to senior vice president and Amy Goldsmith to leasing representative.  In his new position, Murphy will oversee the build-to-suit division of the company and in her new position, Goldsmith will be responsible for leasing duties at several Sembler-owned shopping centers.

 

Hick & Rotner Retail (410-823-4250) announces that Jennifer L. Davidson has been named leasing representative.  In her new position, Davidson will assist with site selection and general marketing activities for a variety of regional and national retailers, as well as handling small store leasing and tenant representation.  She will also support the leasing efforts for several area shopping centers.