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Issue Number 14
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The Dealmakers Issue Number 14 for the week of April 16. My Way by Ted Kraus Ann and I went to the Monterey ICSC Dealmaking and because it’s California, we came back happy; it’s our favorite state (even nation). While I don’t think the show was a record breaker, it was in the record book of high attendance and everyone we spoke with were happy troopers. Some of the trends I noticed were the percentage of brokers in attendance appeared higher than other shows we go to, but California has "lead" the nation in tenant representation, so this was not surprising and Southern California appears to have less new construction going on than other sections of the nation, but both brokers and developers seem to be active in recycling, and of course, rents are rising. What I really like about California is it’s "informal," meaning no ties or suits "allowed." Why, even John Riordan went causal, which is saying something. I think he likes to wear a suit and tie when gardening. The "casual look" looks good on him, maybe more "suits" should try it. New York and the rest of the country should adopt this approach. Also, its time has come. While I heard no real complaints, a number of companies were bitching that even with the expansion of the Vegas show, they still couldn’t get a booth. I found that hard to believe, so when we got back, I called the ICSC to confirm they were sold out and they are. It’s going to be a really "big" show. I forget exactly how large the expansion is, but I think it’s in the 50% neighborhood and they’re still sold out. Vegas will be a zoo. With the economy still booming and the industry healthy, attendance will set another record and because of the expansion, not only will there be lots of new exhibitors, but there will be more confusion than in the past. While the ICSC puts on a great show and Vegas has been running smooth for years, you can’t expand this much and to some degree move exhibitors around (most are still in the old location) without expecting some chaos. I suggest you add a day to your itinerary just to make sure you get to see everything. If at this year’s show you don’t learn, network or start a few deals, it’s your fault. What I did notice in California is that the REITs are beginning to "partner" with local developers to recycle and in many cases demall their centers. It seems they (REITs) don’t have the creativity or entrepreneurs to do it themselves. I saw three or four such projects and they appear to be successful, so expect this new found partnership to spread throughout the country. Indirectly, this ties into my stance for the last few years that the "larger developers" do not have the ability to handle problems. I assume that’s the reason Simon is trying to sell (they might have by now) 15 of their smaller centers. It takes management skill to run a million sq.ft. mall that is successful, it requires a lot more skills to handle a project that isn’t preforming. Ann and I bumped into Chris Negro of Bostonian Shoes while we were at the ICSC’s "Beach Party/Reception" the night before the "dealmaking" in Monterey. The three of us got into a long discussion on the trials and tribulations of our industry and I was starting to get into one of my long winded sermons and looked up. Here we were, standing on a beautiful beach looking into a clear Pacific Ocean with bon fires set up all over, music playing and being served drinks and decent food. I said, "you know, it ain’t that bad afterall, they pay us decently to do this for a living and most people would call it a vacation." Thinking about it on the flight back, I started to appreciate or I should say re-appreciate the industry, it has treated me relatively well over the last quarter of a century. When I as vice president of real estate for a men’s and women’s ready-to-wear chain called Ups N’ Downs, I got into a personality clash with the chairman of the board and as my punishment, I was told to go to the western region and visit every mall in eight states for three months and not come home during that period. At first, I was extremely upset for being exiled, then it dawned on me, I was going to get paid to travel eight states. I was single at the time and had a ball. While I’m no longer single, I still love to travel and when Ann and I can travel together, I’m still having that ball. I guess I allow the frustrations of the business to block out the reality of how fortunate I am. Anyway, now whenever I get frustrated with the industry, I picture myself on the beach, with the fires burning and the sun setting on the Pacific, it helps calm me down. I also attended the ICSC’s Charlotte, NC Dealmaking and keeping in step with the rest of the ICSC’s events, it either set a record or came dam close, with 1530+/- dealmakers in attendance. It was an extremely upbeat show with not a sour face in the crowd; everyone is making money and in most cases, more than they ever made before. What I found interesting was there were two "points" I was constantly encountering both in Charlotte and California. The first was the question "Are there any new retailers out there?" and the second was the statement "There’s no space left to lease, or at least any space the a tenant would want." I responded dozens of times that there were no new, different or exciting retailers "out there." About the only new thing I heard of was Kroger Supermarkets is beginning to experiment with a 25,000 sq.ft. store geared toward the smaller markets (30,000 population). If anyone "out there" knows of any new retailers, please let us know. Regarding the second statement, I think the lack of available decent space is true nationwide. In theory, that means there will be a lot of new construction coming on-line shortly and while hundreds of new centers will be built in the near future, I think the shortage will continue. The nature of the industry has changed. The days of the "Kmart at one end, A&P at the other and 20 small shops in between" are over, at least for now. The majority of larger centers built have all "anchors" or at least 96% anchors and two or three "smaller shops." There’s less risk involved in this type of development and today’s developer is not the risk taker of prior days. However, there has to be some bright developers out there that will recognize this shortage and build centers with more small shops (paying high rents) available for locals, regional and nationals. Now I have to get political, which is something I try not to do in this magazine. However, occasionally something occurs that makes it so I can’t stand quietly by. I just read that the ICSC is having Pat Buchanan as a luncheon speaker in Vegas on Tues, May 25th. Now, last year it was bad enough to have Jessie Jackson and Jack Kemp as speakers. I still haven’t forgiven Jackson for the "Himmie town" comment (but honestly, I don’t think he cares if I forgive him or not). In fairness to Jessie, while I don’t think he looks kindly on the white race, he only seems to hate Jews, so it’s only 35% to 40% of our industry that should have been offended by him. Buchanan is another matter. He’s a much bigger man. He seems to be anti- Jews, Blacks, Italians, gays and immigrants. Oh, and women aren’t to swift either because they’re not bright enough to take care of themselves, they need us "big strong men" to protect them and help ‘em make decisions. Buchanan, in my opinion, represents the worst of America and what we should be ashamed of. Yes, he has a hard core group of religious fanatics that support him, but I truly believe that if God felt Buchanan and his gang was representative of mankind, the second coming would be here tomorrow, since he/she would destroy the world and consider mankind his/her biggest mistake. In case you haven’t noticed, I dislike the man. Now, because I am a Liberation, I believe he has the right to express himself no matter how bigoted those statements might be, but because the ICSC is paying him to speak, it’s my money that’s supporting the man. Yes, it’s the ICSC’s "right" (because we can’t stop ‘em) and in a way, I agree with the idea of bringing in interesting and controversial speakers, but Buchanan is going too far. I’m sure he will speak to a standing room only audience and he won’t ask the Jews, Italians, gays or immigrants to leave the room or country (for $25,000 to $35,000 he can be a kinder, gentler person), but I for one plan to boycott the event.
Value City Department Stores trades as Value City at 99
locations in DE, GA, IL, IN, KY, MD, MI, MO, NJ, NC, OH, PA, TN, VA, WV and Washington,
D.C. The department stores occupy spaces of 85,000 sq.ft. in regional malls, power and
strip centers. Plans call for 12 openings in the coming 18 months. Expansion will take
place in IL, MD, MI and Washington, D.C. Preferred demographics include a population of
75,000 within three miles earning $35,000 as the average income. Leases running 10 years,
with options, are typical. J. Silver Clothing, Inc. trades as J. Silver Clothing at 50
locations in CT, FL, MD, MA, NY, RI and Washington, D.C. The women’s apparel stores
occupy spaces of 2,500 sq.ft. in downtown store fronts and strip centers. Preferred
anchors include Kmart and Wal*Mart. Plans call for 30 openings in the coming
18 months. Expansion will take place in the existing markets. Leases running five years,
with options, are typical and the company cites Fashion Cents, Rainbow and Rave
as competition. Hair Cuttery operates 750 locations in DE, FL, GA, IL, IN, MD, NJ,
NC, PA, SC, VA, WV, WI and Washington, D.C. The hair salons occupy spaces of 1,200 sq.ft.
in strip centers. Preferred anchors include drug stores and supermarkets. Plans call for
100 openings in the coming 18 months. Expansion will take place in the existing markets.
Leases running five years are typical. Lauriat’s Inc. trades as Lauriat’s Books, Encore
Books, Book Corner and Royal Discount Books at 75 locations in CT, DE, ME, MD,
MA, NH, NJ, NY, PA, RI and VT. The book stores occupy spaces of 5,000 sq.ft. to 6,000
sq.ft. in strip centers. Plans call for as many as 15 openings in the coming 18 months.
Expansion will take place in the existing markets. Preferred demographics include a
five-mile population of 50,000 earning $60,000 as the average income. Leases running five
years, with options, are typical. The Robert Organization trades as Lucille Roberts Health Clubs
at 65 locations in NJ, NY and PA. The women’s health clubs occupy spaces of 6,000
sq.ft. to 10,000 sq.ft. in downtown store fronts, freestanding facilities, specialty and
strip centers. Growth opportunities are sought in DE, NJ, NY and PA. Lot Stores operates 34 locations in MD, NJ, NY, PA and Washington,
D.C. The variety stores, selling apparel, household items and hardware, occupy spaces of
4,000 sq.ft. to 8,000 sq.ft. in downtown store fronts, regional malls and strip centers.
Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for 12
openings in the coming 18 months. Expansion will take place in the existing markets.
Preferred demographics include a population of 20,000 within one mile earning $37,000 as
the average income. Leases running 10 years, with two options of five years each, are
typical. Crown Industries Inc. does business as Royal Auto Supply at
14 locations in DE, NJ, NY and PA. The automotive parts stores occupy spaces of 6,000
sq.ft. in power and strip centers. Preferred anchors include Home Depot. Plans call
for as many as four openings in the coming 18 months. Expansion will take place in DE, NJ
and PA. Leases running five years, with options, are typical. La Femmina Beauty trades as The Lemon Tree at 64 locations
in CT, MD, NJ, NY and PA. The family hair salons occupy spaces of 800 sq.ft. to 1,200
sq.ft. in downtown store fronts, freestanding facilities and strip centers. Preferred
co-tenants include card stores, florists and supermarkets. Plans call for as many as 10
openings in the coming 18 months. Expansion will take place in the existing markets.
Leases running five years, with two options running five years each, are typical and the
company is franchising. Nationwide Formal Wear trades as Small’s Formal Wear at
75 locations in CT, DE, MD, MA, NJ, NY, PA, and VA. The stores, offering the rental and
sale of men’s formalwear, occupy spaces of 700 sq.ft. to 1,000 sq.ft. in regional
malls. Plans call for as many as three openings in the coming 18 months. Expansion will
take place within the existing markets. Preferred demographics include a population of
200,000 within five miles earning $25,000 as the average income. Leases running 10 years
are typical and the company prefers a vanilla shell. Marburn Stores, Inc. trades as Marburn Curtain Warehouse at
19 locations in NJ, NY and PA. The stores, selling curtains and bed and bath linens,
occupy spaces of 7,500 sq.ft. to 10,000 sq.ft. in power centers. Preferred anchors include
Kmart, T.J. Maxx and Wal*Mart. Plans call for three openings in the coming
18 months. Expansion will take place in DE, NJ, NY or PA. Leases running 15 years are
typical and the company prefers a vanilla shell. S&A Stores, Inc. trades as S&A Stores at 12
locations in NJ and NY. The general merchandise stores occupy spaces of 4,000 sq.ft. to
10,000 sq.ft. in downtown store fronts. Plans call for three openings in the coming 18
months. Expansion will take place in the existing markets. Somerset Tire Service, Inc. does business as STS Tire and Auto
Center at 61 locations in NJ, NY and PA. The automotive service centers occupy spaces
of 5,350 sq.ft. in freestanding facilities. Plans call for 20 openings in the coming 18
months. Expansion will take place in the Philadelphia, PA metropolitan area, central and
northern NJ and on Long Island, NY. Preferred demographics include a population of 30,000
within three miles earning $50,000 as the average income. Leases running 10 years are
typical, however, the company prefers build-to-suit deals or to purchase its locations.
The company cites Goodyear, Firestone, Sears and Pep Boys as competition. Glass Garden Inc. trades as ShopRite at six locations in NJ
and NY. The supermarkets occupy spaces of 50,000 sq.ft. to 65,000 sq.ft. in downtown store
fronts, freestanding facilities and strip centers. Plans call for two openings in the
coming 18 months. Expansion will take place in the existing markets. Leases running 20
years are typical. Orloski Service Stations, Inc. trades as Orloski Quik Marts
at 45 locations in PA. The convenience stores occupy spaces of 1,500 sq.ft. to 5,000
sq.ft. in freestanding facilities and strip centers. Preferred anchors include Kmart,
T.J. Maxx and Wal*Mart. Plans call for three openings in the coming 18 months.
Expansion will take place in the existing market. Leases running 30 to 40 years are
typical.
Uniwest Development Corporation recently broke ground on Fort
Evans Plaza in Leesburg, VA. The 273,000 sq.ft. project, which is located at the
intersection of Route 15 and Fort Evans Road, will be anchored by a 133,000 sq.ft. Home
Depot store, a 60,000 sq.ft. Grand Home Furnishings store, a supermarket and
27,400 sq.ft. of small shop space. Shop space from 1,200 sq.ft. is available for lease.
The site is expected to open during November. The company is currently developing Borders
Plaza in Sterling, VA. The project, located at the intersection of Route 7 and Route
777, will be anchored by Borders Books & Music, Today’s Man, Next Day Blinds,
Chicken Out and Vitamin Superstore. A Fall opening is planned. GreenCastle Development Company, in a joint venture with The
Robert Hekemian Family Interests, plan to develop Crosspoint Shopping Center in
Hagerstown, MD. The 400,000 sq.ft. project will be anchored by Target and a major
grocery chain supermarket. The center, which will be developed in two phases, will
encompass 80 acres bounded by Interstate 81, Massey Boulevard and Valley Mall. A
March 2000 opening is planned. Timber Development Corp. recently broke ground on Greencastle
Market Place Shopping Center in Greencastle, PA. The project will be anchored by a
37,000 sq.ft. Food Lion Supermarket and an 8,000 sq.ft. Dollar General
store. Another 20,000 sq.ft. of small shop space and one outparcel will also be developed. Wilton Partners recently acquired 13.31 acres of land located in
the heart of the West Shaw Retail Corridor in Fresno, CA for the development of Northwest
Plaza. The 130,000 sq.ft. project will be anchored by a 27,000 sq.ft. OfficeMax
store, an 18,800 sq.ft. Just For Feet store and a 19,000 sq.ft. Old Navy
Clothing Co. store. The site has high visibility and good accessibility to both Shaw
and Marty Avenues. With traffic counts of over 42,000 cars passing the future retail
center per day on Shaw Avenue alone, the development is located in the center of the prime
retail corridor in Fresno County. Northwest Plaza is one of the last available parcels in
excess of 10 acres in the West Hsaw Retail Corridor. Within the last several years, more
than one million sq.ft. of new retail construction has been completed between Marks and
Blythe Avenues. The residential growth in the northwest area of Fresno is one of the
leading growth areas in Fresno County. The proposed and planned residential units in this
area are estimated to add over 26,000 new people to the existing population base.
Currently, demographics include a three-mile population of 111,912 earning $50,476 as the
average household income. The company recently developed Colonades Shopping Center
in Richmond, VA. The 136,000 sq.ft. project is anchored by Marshall’s, Shoe
Carnival, OfficeMax and CompUSA. LMS Commercial Real Estate plans to break ground during Fall on Windsor
Commons in Lancaster, PA. The 182,041 sq.ft. project is expected to be anchored by a
supermarket and a discount store. Spaces of 2,500 sq.ft., 5,000 sq.ft., 10,000 sq.ft. and
20,000 sq.ft. are available for lease. In addition, the site has five outparcels available
for sale or lease. The center will be developed at the intersection of Route 4 South and
Chapel Church and demographics include a three-mile population of 34,430 earning $47,872
as the average income. Retailers in the area include Festival Foods, Eckerd Drugs
and Blockbuster. A Summer 2000 opening is planned. Federal Realty Investment Trust plans to break ground during Spring
on Pentagon Row in Arlington, VA. Situated on 18 acres of land adjacent to Fashion
Centre at Pentagon City, the mixed-use project will consist of more than
300,000 sq.ft. of street-level retail and nearly 500 mid-rise residential apartments above
the retail portion. The retail portion will be anchored by Harris Teeter, specialty
shops, restaurants and entertainment venues. A Fall 2000 opening is planned. The
development is the first mixed-use, ground-up development project for the company and will
serve as a model for other forthcoming urban, mixed-use developments across the country.
The trust’s real estate portfolio contains 120 retail properties, consisting of
neighborhood and community shopping centers and main street retail buildings located in
strategic metropolitan markets across the U.S. S/S Land Holdings, LLC recently broke ground on Standley Lake
Marketplace in Westminster, CO. The 193,000 sq.ft. project, located on the northeast
corner of Wadsworth Parkway and Church Ranch Boulevard, will be anchored by Safeway
Marketplace and Longs Drug store. Furniture, home furnishing and other
neighborhood convenience tenants will occupy 100,000 sq.ft. of in-line store space. Five
pad sites will also be developed. Shea Properties is developing SeaCliff Village Shopping Center
in Huntington Beach, CA. The project, being developed on 27 acres at the intersection of
Goldenwest and Yorktown, is replacing the existing SeaCliff Village Shopping Center.
Leases have been signed with Lucky Supermarket and Sav-On drug store for a
68,000 sq.ft. combination store and with Orchard Supply Hardware for a 55,000
sq.ft. store. Negotiations are ongoing with an office supply store, a card and gift store,
a toy store, an arts and crafts retailer and several restaurants. An October opening is
planned.
World of Science, Inc. (716-475-0100) recently obtained an increased revolving line of credit commitment from its lender, Marine Midland Bank. The three-year commitment provides for a revolving credit facility of up to $24 million, up from $18 million, to be used for inventory financing, new store construction and general corporate purposes. World of Science is a leading specialty retailer of a variety of traditional and distinctive science and nature products which emphasize both educational and entertainment values. The company currently operates 74 permanent stores and 67 seasonal stores. Ackman-Ziff Real Estate Group (212-697-3333) recently arranged the following loan transactions totaling $51.375 million. The company placed a permanent loan for Cardiff Plaza in Egg Harbor Township, NJ, a 139,453 sq.ft. project anchored by Rx Place, Office Concepts and Goodwill Industries of NJ. The company recently arranged a permanent loan for Harrisonburg Plaza in Harrisonburg, VA, a 101,794 sq.ft. project 100% leased to four tenants. The company arranged a permanent loan for Midlothian Plaza in Midlothian, TX, a 73,221 sq.ft. project 85% leased to 14 tenants. The company arranged the sale and acquisition/permanent loan for a 27,200 sq.ft. property net leased to T.J. Maxx in Mount Kisco, NY. The company arranged an acquisition/permanent loan for a 126,840 sq.ft. neighborhood center in Brockton, MA. The project is anchored by Shaw’s Supermarket, Consolidated Stores, Fashion Bug and Friendly’s. The company arranged a bridge/acquisition loan with an earnout for South Brunswick Square in Monmouth Junction, NJ. The 265,841 sq.ft. project is anchored by Grand Union Supermarket, Blockbuster Video, Radio Shack, Fashion Bug and Pizza Hut. The debt was arranged with a west coast based lender and the equity was arranged with a New York based opportunity fund. The company recently arranged a bridge/acquisition loan with an earnout for Seacourt Pavilion in Toms River, NJ. The 270,000 sq.ft. project is anchored by Marshall’s, Loews Theater, Sears, Lucille Roberts, Pier 1 Imports, Old Country Buffet and Wendy’s. The property includes 5.5 acres of undeveloped land which is expected to house an OfficeMax store, a Don Pablo’s restaurant and additional parking. The debt was arranged with a west coast based lender and the equity was arranged with a New York based opportunity fund. The company also arranged a permanent loan for a retail property located at Madison Avenue and 67th Street. The property consists of three contiguous five-story buildings totaling 20,000 sq.ft. with ground floor and second floor retail. Floors three through five are a mix of office and residential space. Breslin Realty Development Corp. (516-741-7400), together with Houlihan-Parnes, recently arranged financing for an existing Barnes & Noble store in Manhasset, NY. The 25,000 sq.ft. facility is owned by Fred Colin and Wilbur Breslin. G.E. Capital Corp. was the lender for the $5 million loan.
Tractor Supply Co. (615-366-4646) plans to open a 26,547 sq.ft. store in Wichita, KS during October. It will be the company’s second store in Wichita. Overall, the company operates 243 stores in 26 states. Williams-Sonoma (415-421-7900) is reportedly interested in opening a store on Walnut Street near Avenue of Arts in downtown Philadelphia, PA. Circuit City Stores, Inc. (804-527-4000) plans to open its second Manhattan, NY location, this one on East 86th Street, during Spring. The Buckle, Inc. (308-236-8491) recently opened stores in Tucson, AZ and at Citrus Park Town Mall in Tampa, FL. During the remainder of this year, the company is planning to open 24 more stores, including openings in five new states. Currently, the company operates 223 casual apparel stores for young men and women in 29 states. Host Marriott (301-380-9000) is planning to open five "large format" food courts this year, including a 34,000 sq.ft., seven-unit court in Times Square in New York during late 1999. Under its master lease program, the company typically operates an entire food court inside a shopping mall. Ledo Pizza & Pasta (301-474-7551) plans to open a 2,559 sq.ft. restaurant at Hunters Woods Village Center in Reston, VA during June. The company, which has approximately 50 units, mostly in MD, is beginning to expand into the northern VA market. The Hunters Woods unit will be the company’s fifth with more planned for the market. Filene’s Basement Corp. (617-348-7000) plans to launch a new off-price retail chain called Aisle 3 at nine locations in MD, NJ and NY. The stores, which will only be opened on weekends, will sell name-brand men’s and women’s clothing as well as home furnishings and gourmet foods. Phillips Petroleum Co. (918-661-6600) plans to re-enter the AZ market after a 30-year hiatus with at least six gas stations and convenience stores in the Phoenix and Tucson markets beginning in June. The expansion comes as Phillips is converting its convenience store format to a larger look called Kicks 66 which uses 3,600 sq.ft. and offers parking for 22 cars in front of the store. The conversion began two years ago and the company has converted nearly a third of its 300 stores. Phillips plans to raze and rebuild 15 existing convenience stores a year for the next five to ten years, and add 30 new sites each year. AZ will be the first new market it brings its stores to. At one time, the company had gas stations in all 50 states, but the Arab oil embargo in the early 1970s forced the company to scale back its operations. It began pulling out of markets like AZ where it didn’t have an easy supply of oil. However, the company kept a watchful eye on AZ’s growing population and then learned that there were thousands of AZ residents that still held Phillips 66 credit cards offering the company some name recognition as it returned to the market. To help it with its supply of oil for the stores, the company constructed a pipeline in 1997 from its refineries in TX to a site in AZ. Circuit City Stores, Inc. (804-527-4000) recently announced that its CarMax subsidiary will delay its expansion into the Los Angeles, CA market until 2000 as it focuses on improving profitability by adding satellite used-car superstores and new-car franchises into the major metropolitan markets where it currently operates. In making the announcement, the company’s chairman and CEO said, "as we have learned more about how to operate most effectively in large metro markets, we have concluded that we need a larger number of smaller locations than we had originally envisioned for Los Angeles. We want to be certain that we enter the market with a storing pattern which will allow us to be successful from the start. In addition, postponing our Los Angeles entry will enable us to focus our full attention on improving the profitability of our existing markets." During the second half of last year, the company began testing the hub/satellite operating process in the Miami, FL; Houston and Dallas/Fort Worth, TX markets. In those markets, the company has been able to significantly reduce operating overhead for the satellite locations by sharing reconditioning, purchasing and business offices while maintaining at each store the same used-car selection and sales. By applying this concept to its new locations, the company is looking to add profitable fill-in satellite locations on a four to six acre sites with a 12,000 sq.ft. building. The company now believes that the most appropriate storing plan for Los Angeles is 10 stores to be opened in the first 12 to 18 months of market entry. In the coming fiscal year, the company expects to enter only one new market, that being Nashville, TN. The company plans to continue to look for opportunities to open satellite stores and new car franchises in existing multi-store markets. Currently, the company operates 28 CarMax locations. Target (612-304-6099) is looking to open a store on Chicago, IL’s Block 37. However, no negotiations with the city have begun and Target hasn’t said whether or not it will seek public money to open the store. Firehouse Subs (904-791-9787) recently opened a 50-seat restaurant in a portion of the former Paul Lewis Tire Center in San Marco, FL. It will be the chain’s 17th location. The company is planning to open nine addition restaurants this year, including units at Kernan Square in St. Johns County, FL; Julington Creek Square in St. Johns County, FL and at the Shoppes at Wells Lake in Orange Park, FL. Venator Group (212-720-3700) plans to open 190 stores this year, including 140 in its athletic division of Foot Locker, Champs Sports and Colorado. The company added that it would scale back remodelings and relocations for the year to 100. Ikea (610-834-0180) is planning to open a 200,000 sq.ft. home furnishings store on the border of Emeryville and Oakland, CA during February 2000. One of 140 stores in 28 countries, it is expected to bring in $1 million in sales tax annually, which will be shared by both cities.
Brandenberg Realty Associates, Inc. (914-241-9170) has been retained by Rudco Properties as the exclusive leasing agent for Cortlandville Crossing in Cortland, NY and Glenwood Plaza in Oneida, NY. Cortlandville Crossing is a 235,000 sq.ft. strip center anchored by Big Kmart. A 100,000 sq.ft. freestanding Wal*Mart shares the same parking lot. Other tenants include Farm & Country, JC Penney, Sears and Fashion Bug. The project has a vacant 30,000 sq.ft. former Bon-Ton Department Store that can be expanded up to 60,000 sq.ft. Glenwood Plaza is a 220,000 sq.ft. shopping center anchored by Price Choppers, Eckerd Drug, Big Lots, Fashion Bug, Sears and a six-screen movie theater. The project has a 30,000 sq.ft. portion of a former Jamesway store available for lease. DLC Management Corporation (914-631-3131) has been retained as the exclusive leasing and managing agent and development consultant for Mahopac Village Centre in Mahopac, NY and the Mall at IV in Paramus, NJ. Mahopac Village Centre is a 149,000 sq.ft. project anchored by A&P, Mandees, Rite Aid and McDonald’s. Store spaces from 1,500 sq.ft. to 10,300 sq.ft. are available for lease. Mall at IV is a 135,000 sq.ft. project that is planned to be redeveloped. Anchor positions and small shop space are available for lease. Equity Properties, Inc. (610-645-7700) has been named the exclusive leasing agent of Skippack Square Shopping Center in Skippack, PA. The 35,000 sq.ft. project, which is expected to open during Fall, will be anchored by CVS. New England Retail Properties, Inc. (860-529-9000) has been appointed by CHK South Hadley Associates as the exclusive leasing and marketing agent for South Hadley Square in South Hadley, MA. The 150,000 sq.ft. project is anchored by a 56,000 sq.ft. Big Y Supermarket. A phase II expansion will include additional in-line space and two outparcels. Goldman Retail Associates (310-235-0444) exclusively represents Rite Aid in the disposition of its surplus properties located in Los Angeles, Orange and Ventura counties in CA. The company is currently marketing 17 sites ranging from 3,000 sq.ft. to 23,000 sq.ft. The company also works closely with American Stores (Lucky and Sav-on) and other national chain retailers on the leasing of their surplus sites throughout Los Angeles County, CA. Collier Tingley International (209-221-1271) is the exclusive leasing agent for Thrifty/Payless (Rite Aid) in the central CA region. The company is currently disposing of 15 former Thrifty/Payless sites in Fresno, Kings, Tulare, Kern and Inyo counties. The sites range in size from 4,991 sq.ft. to 21,440 sq.ft. Trammell Crow Company (561-394-3388) has been awarded the leasing and management assignment at River Bridge Center in West Palm Beach, FL. The 218,000 sq.ft. project is anchored by Publix, Walgreens, Crafts & Stuff and United Artists Theaters. The center was recently acquired by CIN Riverbridge, LP from AEW Capital Management, LP for $21 million.
Kimco Realty Corporation is aggressively looking to acquire
shopping centers nationwide. Preferred projects should have GLAs of at least 100,000
sq.ft., be institutional grade properties with long term leases, well-located in key
growth markets or regional locations and candidates for redevelopment. All cash deals are
possible. During 1998, the company closed on more than $700 million in acquisitions adding
9.8 million sq.ft. to its portfolio. Rosen Associates Management Corp. is in the market to acquire
neighborhood and community shopping centers nationwide. The company’s interests range
from complete redevelopments to stabilized investments. Petroleum Properties Corporation has been appointed exclusive
developer for a major West Coast gasoline market that is interested in one to two acre
interstate locations; one to two acre locations at high-traffic intersections and shopping
center pad sites in the Philadelphia, PA metropolitan area, western, central and northern
NJ. When forwarding locations include the location or outbound survey, current verified
traffic counts, one to three mile demographic reports, ground or aerial photographs, an
area map with the site located and the zoning of the site. Divaris Real Estate, Inc. has the listing to sell a shopping center
in the Hampton Roads market of VA. The center is anchored by a national drug store, has
below market rents and is located near a major regional mall. The site has strong upside
potential through the lease up of 10,254 sq.ft. of in-line space. The company brokered the
sale of Glenwood Square Shopping Center in Chesapeake, VA. The 53,744 sq.ft. project was
acquired from Glenwood Partners, LLC from Hodges Farms II for $2.95 million. DLC Management Corporation recently acquired Seacourt Pavilion in
Toms River, NJ. The 247,000 sq.ft. project is anchored by Loews Theaters, Pier One
Imports, Marshalls and Old Country Buffet. Plans are underway to expand the center to
300,000 sq.ft. and spaces from 1,000 sq.ft. to 43,000 sq.ft. are available for lease. The
center is located adjacent to Ocean County Mall. The company recently acquired South
Brunswick Square in South Brunswick, NJ. The 266,000 sq.ft. project is anchored by Grand
Union, Fashion Bug, Radio Shack and Blockbuster Video. The site has anchor positions of
50,000 sq.ft. and 70,000 sq.ft., as well as several smaller units, available for lease. Mid
Valley Associates, LLC, a joint venture between DLC and The Praedium Funds,
acquired Mid Valley Mall in Newburgh, NY. The 290,000 sq.ft. project is anchored by Price
Chopper, Rx Place, Fashion Bug, Casual Male, Firestone and Kentucky Fried Chicken. Spaces
from 16,500 sq.ft. to 81,000 sq.ft. are available for lease. Ryan’s Family Steak Houses, Inc. is selling 19 undeveloped or
excess properties and six vacant buildings. These locations offer high visibility,
excellent access, convenience to local retail, utilities and DOT curb cuts. Many of these
locations are either adjacent to or across from newly constructed Wal*Mart SuperCenters. LMS Commercial Real Estate has the listing to sell two one-acre
outparcels at Penn Plaza in Lancaster, PA. The project is anchored by Weis Markets, Dollar
General, Goodwill Fashions and Mattress King. The asking price is $280,000 per acre. The
company is also in the market to acquire parcels of land running one to twenty acres in
PA. Preferred parcels should have a population of 8,000 to 10,000 within one mile of the
site. Catron Real Estate, Inc. has the listing to sell 11 acres of land
located at the intersection of Route 450 and Highbridge Road in Bowie, MD. The asking
price is $1.325 million. Hasbrouck Real Estate Corp. has the listing to sell outparcels at a
shopping center in Waynesboro, VA. The project is anchored by Food Lion. The sites are
ideal for gas/convenience stores, fast food restaurants, auto parts stores, auto care
stores, a self-service car wash or a self storage complex. CV REIT, Inc.’s wholly owned subsidiary, Montgomery CV
Realty Trust has entered into conditional agreements of sale to acquire three shopping
centers in the Mid-Atlantic region for cash and debt totaling approximately $40 million.
The centers include: The Lakewood Shopping Center in Ocean County, NJ. The 203,000 sq.ft.
project is anchored by a 76,000 sq.ft. ShopRite Supermarket. Woodcrest Shopping Center in
Cherry Hill, NJ. The company has assumed the management and leasing responsibilities for
the shopping center and operating partnership units. The anticipated closing of this
transaction will be determined once plans to redevelop and expand the center with a major
supermarket are completed. The center is planned to be expanded to 150,000 sq.ft. The
third center to be acquired is Cherry Square Shopping Center in Northampton, PA. The
75,000 sq.ft. project is anchored by Redner’s Warehouse Market. A 10,000 sq.ft.
expansion of this center is planned. The addition of these properties will increase the
size of the existing shopping center portfolio by 25% to a total of two million sq.ft. The
company currently owns 19 income producing properties aggregating approximately 1.6
million sq.ft., principally shopping centers, located in the Mid-Atlantic region and FL. The Cooperman Co. is in the market to acquire good retail locations
in the Eastern region having GLAs of at least 20,000 sq.ft. Complete Property Management, Inc. has the listing to sell 12 acres
of land in White Township, NJ. The site, which is divisible, is located at the
intersection of Route 519 and Village Drive. The asking price is $200,000 per acre. Harding & Associates Inc. has the listing to sell 2.4 acres of
land in Richmond, VA. The site, which is located at the intersection of I-288 and Hull
Street, is located adjacent to a newly opened Target store. The asking price is $1.2
million. Northland Commercial has the listing to sell one acre of land at
the intersection of Ringwood and Union Avenue in Wanaque, NJ. Thatcher & Associates Brokerage represents a client in the
market to acquire supermarket-anchored shopping centers having GLAs of at least 85,000
sq.ft. in DE, MD and VA. Preferred projects should be located in primary and/or stable
secondary markets. Value priced properties with dark stores in stable markets will also be
considered. All cash deals or reasonable assumable financing deals are possible. The
company also represents a client in the market to acquire land located East of the
Mississippi River that is suitable for the development of power centers and/or big box
stores Atlantic Realty Companies recently acquired a retail property at
the corner of Wisconsin and Woodmont Avenues in the Bethesda, MD central business
district. Known as the home of Parvizian Rugs and the defunct Bell Laundry, the three
contiguous buildings covering 41,000 sq.ft. will be renovated and renamed Bethesda Corner.
The site is presently 50% occupied. The seller was Metropolitan Properties and financing
was provided by Crestar Bank. Paragon Realty Group LLC is in the market to acquire neighborhood
and community shopping centers in the Mid-Atlantic and Northeastern regions. Sigma National, Inc. and its affiliate, Sigma Development of
Virginia, Inc., a preferred Rite Aid developer in Richmond, VA, recently completed two
transactions. AH-Sigma Richmond, LLC purchased 1.476 acres at the northwest corner of Hull
Street Road and Courthouse Road in Chesterfield County, VA where it plans to build an
11,200 sq.ft. Rite Aid Drugstore and a 900 sq.ft. Crestar bank branch. AH-Sigma
Fredericksburg, LLC purchased 5.8 acres at the northeast corner of Route 3 and Old Plank
Road in Fredericksburg, VA where it plans to build an 11,200 sq.ft. Rite Aid Drugstore.
The company sold 3.16 acres of the acquired site to Fortress Self Storage for use as a
self storage facility. Equity Properties has the listing to sell an 8,500 sq.ft. strip
center in the Germantown section of Philadelphia, PA. The 10-year-old center is 90%
occupied. Anthony Realty, Inc. has the listing to sell a one acre site
located at the intersection of Route 34 and Lloyd Road in Aberdeen Township, NJ. The site
is located at a signalized intersection, is zoned "regional commercial" and has
a five-mile population of 125,792. Mid-Atlantic Realty Trust recently acquired Saucon Valley Square in
the Saucon Valley area of the Bethlehem/Allentown, PA market. The 112,000 sq.ft. project
is anchored by a 50,000 sq.ft. SuperFresh supermarket and a 32,000 sq.ft. Hoyts Cinema.
Other tenants include Blockbuster Video, Holiday Hair and Radio Shack. The acquisition
price was $8.2 million in cash. The Covington Co. is in the market to acquire grocery store
anchored strip centers in the Mid-Atlantic region. Phoenix Associates, LLC has the listing to sell a Walgreen’s
store in Palm Bay, FL. The site is currently under development and is expected to open
during September. The asking price is $3.59 million. RE Funding, Inc. is in the market to acquire strip centers and
single tenant facilities in Summit County, OH. Preferred single tenant properties should
have at least 10 years remaining on the lease term. Preferred deals should be between
$500,000 and $3 million.
Pathmark Stores, Inc. (908-499-3205) recently sold its chain of 132 supermarkets in DE, NJ, NY and PA to Royal Ahold for $1.75 billion, including the assumption of $1.5 billion of debt. Royal Ahold, which operates more than 1,000 supermarkets along the East Coast, including the Edwards, Stop & Shop, Giant, Bi-Lo and Tops Market chains, plans to convert its 73 Edwards supermarkets in NJ, New York City and Long Island, NY into Pathmark stores and renovate them to create "a customer paradise." The other Pathmark stores in the chain will also receive renovations. Ahold plans to save $30 million in the first year and $50 million in the second year by restructuring Pathmark’s debt. Pathmark acquired such a huge debt load when it fought off a hostile takeover attempt in 1987. In addition, Ahold plans to buy the outstanding shares of SMG-II Holdings Corp., which controls Pathmark, for $250 million. In addition to its U.S. stores, Ahold operates approximately 3,600 supermarkets in 17 countries. Its 1998 sales topped $30 billion. Jones Apparel Group, Inc. (215-785-4000) plans to acquire Nine West Group for $885 million, plus the assumption of $550 million of Nine West debt. Jones Apparel plans to install one of its directors, Mark Schwartz, as chairman of Nine West, which will become a wholly owned subsidiary of Jones Apparel. Jones Apparel is a designer and marketer of sportswear, jeanswear, suits and dresses. Its brands include Jones New York, Evan-Piccone, Rena Rowan and Saville. The company operates approximately 200 outlet stores nationwide and its 1998 revenues were $1.69 billion. Nine West Group is a manufacturer and marketer of women’s footwear sold through more than 7,000 stores including 1,095 of its own retail stores domestically and 431 internationally. Its brands include Nine West, Amalfi, Bandolino, Pappagallo and Easy Spirit. Its 1998 revenues were $1.87 billion. The deal is expected to close during June. Maverik Country Stores Inc. (307-886-3861) plans to acquire 38 Circle K convenience stores in UT. The acquisition will give Maverik 100 stores in the state. Tosco Marketing Co., Circle K’s parent, has been selling stores in markets where it does not have a large concentration of units. The deal will give Maverik more than 170 stores in seven states. Let’s Talk Cellular & Wireless, Inc. (305-358-8255) recently signed a definitive agreement under which National Cellular Investors, LP will acquire substantially all of the assets of National Cellular, Inc., a 100% owned subsidiary of Let’s Talk Cellular & Wireless. Terms of the deal were not disclosed. The sale of the subsidiary is consistent with the company’s ongoing strategic initiatives to divest non-core assets. National Cellular is a wholesale distributor of wireless communications products. The company was acquired by Let’s Talk Cellular & Wireless as part of its Telephone Warehouse acquisition in June 1997. David Eisenberg, co-chairman and CEO, said, "As we pursue our strategy to become the leading specialty retailer of cellular and wireless products and services, it has become evident that our low margin wholesale operation no longer remains core to the Let’s Talk Cellular & Wireless retail strategy. This transaction is beneficial to both parties and will allow us to focus our resources and our attention on our core retail business." Let’s Talk Cellular & Wireless currently owns and operates 268 stores nationwide. A&W Restaurants, Inc. (734-662-5544), its equity partner, Grotech Capital, and Long John Silver’s Restaurants, Inc. (606-388-6000) recently signed a definitive agreement under which A&W and Grotech Capital will acquire LJS upon the consummation of a Plan of Reorganization for LJS in its Chapter 11 case. LJS plans to file a motion with the Bankruptcy Court seeking approval of certain provisions of the definitive acquisition agreement, including bidding procedures for third parties and the payment of a "topping" fee. LJS filed a voluntary petition under Chapter 11 in June 1998 as part of a financial restructuring. In order for the acquisition by A&W to be consummated, LJS will need to obtain confirmation of a Plan of Reorganization. The company is currently working with its creditors and others to develop such a plan and expects to file a plan during late Spring. A&W said that each company will operate independently, and current LJS executives will continue to manage LJS’ day-to-day operations. A&W Restaurants operates nearly 1,000 units in 46 states and 17 foreign countries. Long John Silver’s operates more than 1,300 restaurants in 37 states, Singapore and Thailand. Restaurant Teams International, Inc. (903-758-2811) recently signed a definitive agreement to acquire the Fatburger hamburger chain from FB Holding Corp. for $8 million. The closing is expected to occur by the end of this month. Fatburger, founded in 1952, currently operates 13 company-owned restaurants in the Los Angeles, CA market and franchises 22 locations in Southern CA and Las Vegas, NV. Three additional franchised locations are slated to open by August of 1999. Currently, there are commitments and deposits for another 24 franchised units throughout the U.S. Restaurant Teams expects system-wide sales for current Fatburger restaurants to approach $26 million this year. Restaurant Teams International operates the Street Talk Cafe and Fresh’n Lite chains in TX. The Waccamaw Corporation (843-236-4606) and HomePlace Stores Inc. (216-328-9500) recently reached a merger agreement which will create one of the nation’s largest home furnishings retailers, initially with 120 stores in 27 states and annual sales in excess of $600 million. Under terms of the agreement, a new corporation will be formed as HomePlace of America, Inc. and the current HomePlace stores, Waccamaw Stores and future new stores will operate under the HomePlace nameplate. Greg Johnson, president and CEO of the Waccamaw Corp. will serve as president and CEO of the new combined chain and the corporate headquarters of the new company will be consolidated into Waccamaw’s headquarters in Myrtle Beach, SC. HomePlace’s corporate headquarters in OH will be closed. The merger agreement, which is supported by HomePlace’s unsecured creditors’ committee and the boards of directors of both companies, is subject to the approval of the bankruptcy court and HomePlace’s creditors. HomePlace expects to file a Plan of Reorganization with the court soon. Upon approval of the plan by the court, the merger is expected to be completed during June. HomePlace and its affiliates filed voluntary Chapter 11 petitions in January 1998. HomePlace currently operates 75 stores in 23 states and Waccamaw currently operates 45 stores in 11 states. Commercial Condominiums Revived? by Alan Alexander, SCSM, CPM I just received a real estate company newsletter in the mail and one of the articles was promoting the advantages of commercial condominiums, for both retail and office buildings. It is amazing that old ideas seem to get recycled, especially in good economic times. Unfortunately, commercial condominiums have been tried and were found to be sadly lacking success for all but a very few specialized situations. An unnamed newsletter’s article touted the benefits of real estate ownership as opposed to leasing as the main reason that one would want to be part of a commercial condominium. It indicated that long term ownership would very likely produce a profit rather than a bunch of rental receipts, and when successful, that would likely be the case. There are two fundamental flaws in the structure of commercial condominiums. There is no flexibility for the owners/tenants and there is no sophisticated central management. The only major exception is a variation of the condominium concept called strata title and is used in Singapore. An office tower of several floors is put up for sale by the floor. An investor or user can purchase a floor of the building with what is called "strata title" and owns that floor to use as it sees fit. However, the overall management of the building remains in the hands of the developer, so the concept of central management is maintained. In some of our shopping centers in the United States ownership of the center is fragmented with the supermarket, drug stores and some pad or outlot operators owning their own parcels and a developer owning the balance of the center. This whole arrangement is tied together with an REA (restrictive easements and agreements) for the operation of the property, which is generally handled by the developer on behalf of all of the occupants. Those operators who own their own parcels maintain their own buildings and handle reletting of the building should it become necessary. Even that loss of control has been a problem in some shopping centers where the anchor tenant decides to close and can then relet to almost anyone they deem fit. Lack of flexibility: While it is possible to set up some restrictions in the initial documents for a commercial condominium project, one still loses the flexibility that the landlord enjoys. By way of example, we recently had two 1,200 sq.ft. vacancies in a strip center, but they were four stores apart. We found a very good 2,400 sq.ft. tenant and were able to move one of our existing tenants to one of the vacancies thereby creating a 2,400 sq.ft. shop for our prospective tenant. When all of the small shops are individually owned, it is almost impossible to accomplish such a move. When a shopping center or office building is managed by the occupants there is no one to have a "grand vision" for that building and work toward that with each transaction. Most likely you have a group of individual owners who have their own self interest in mind, with a slight view toward the whole. Lack of central management: Almost every condominium owners association is made up of a board of directors chosen from the ranks of the owners themselves. In the case of a commercial condominium these board members would be merchants and/or business owners who have a business to run and their board activities would be secondary. Additionally, these board members are not experienced building operators and may well bring a lot of enthusiasm to the management of the building, but very likely they would not bring a strong background in property management. While it is not uncommon to hire a professional manager to run the building, acting under the board of directors, the board is still in charge and still represents the combined thinking of a board of seven to ten people. This is not to say that some commercial condominiums cannot be successful. This author is aware of one small office condominium in Burlingame, CA. The total building is approximately 27,000 sq.ft., is made up of small one or two man offices who live nearby and who have no desire to build their business beyond the one or two man existing operations. Because it is small, most decisions are easily made and most building occupants attend all board meetings. Within a few miles of this project a condominium office building was tried which consisted of approximately 157,000 sq.ft. The developers were unable to sell the units and it was converted back to a traditional office project. Asia and South America both tried commercial condominium projects several years ago with very little success. South America created a condominium concept called the "caracole" (the snail) which was a multi-story shopping center with a ramped walkway going up the middle to serve all levels. Each operator owned their own space. The failures started at the top levels and worked their way down. Because there was no central management to handle the situation, unit by unit the buildings became boarded up and the project failed. The major advantage of the condominium structure is for the original developer. By selling off major components of the building, the financing is made easier. Instead of having to come up with all of the equity himself he can pre-sell units and minimize the amount of financing needed. In Singapore the early shopping centers were almost all condominium in nature. As these centers aged they needed updating and retenanting and there was no way to get all of the merchants to reach an accord. When there is a strong owner/manager, this situation is much easier to deal with. As this article appears today, this situation still exists in Singapore and other Asian countries. Shopping centers being built today may sell space to the anchors, but most do not sell to the smaller merchants. While one can see why the developers may well be attracted to the condominium concept for commercial properties, one should look at the history and basic problems and until realistic solutions can be found to overcome these problems, they should remain concepts rather than evolving into predictably weak projects. Alan Alexander is a senior vice president with Woodmont Real Estate Services, Inc., 1050 Ralston Avenue, Belmont, CA 94002; 602-860-2680, Fax 860-2681.
Frozen Fusion Franchise LLC trades as Frozen Fusion at 26
locations in AZ, CA, CO, FL, IL, MA, MI, NV, NJ, NY, PA and Washington, D.C. The concept,
offering smoothies and juices, occupy spaces of 500 sq.ft. to 1,000 sq.ft. in downtown
store fronts, entertainment centers and regional malls. Plans call for 65 openings in the
coming 18 months. Expansion will take place in VA; the Baltimore, MD market and the
Philadelphia, PA market. Leases running 10 years are typical and the company, which is
franchising, cites Jamba Juice as competition. Rita’s Water Ice Franchise Corp. does business as Rita’s
Water Ice and Italian Ice at 207 locations in DE, FL, MD, NJ, NY, OH, PA, SC and VA.
The stores, serving frozen desserts, occupy spaces of 800 sq.ft. to 1,000 sq.ft. in
freestanding facilities. Preferred co-tenants include fast food restaurants, supermarkets
and video stores. Plans call for as many as 60 openings in the coming 18 months. Expansion
will take place in DE, FL, MD, NJ, NY and PA. Leases running five years, with options, are
typical and the company is franchising. Sybra Inc. trades as Arby’s at 164 locations in CA, FL,
MD, MI, NJ, PA, TX and VA. The fast food restaurants, specializing in roast beef
sandwiches, occupy spaces of 2,500 sq.ft. in freestanding facilities. Preferred anchors
include Kmart, T.J. Maxx, Wal*Mart and supermarkets. Plans call for 30 openings in
the coming 18 months. Expansion will take place in MD, MI, NJ, PA, TX, VA and WV.
Preferred demographics include a population of 50,000 within three miles earning $45,000
as the average income. Leases running 10 to 15 years are typical. The company is the
second largest Arby’s franchisee in the nation. Vie De France Yamazaki, Inc. trades as Vie De France Bakery
& Cafe at 23 locations in CA, CT, FL, IL, MD, MI, VA, WV and Washington, D.C. The
restaurants, offering freshly prepared bakery products, sandwiches, soups, salads and
coffee, occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in strip centers. Preferred anchors
include Blockbuster Video, drug stores and upscale supermarkets. Plans call for as
many as five openings in the coming 18 months. Expansion will take place in VA and
Washington, D.C. Preferred demographics include a population of 200,000 within three miles
earning $70,000 as the average income. Leases running 10 years are typical and the company
cites Au Bon Pain, Corner Bakery and La Madeline as competition. Glasgall and Associates trades as Charlie Brown and The
Office at 37 locations in NJ and NY. The restaurants occupy spaces of 5,000 sq.ft. in
freestanding facilities. Parking for 100 to 125 cars is required. Plans call for five
openings in the coming 18 months. Expansion will take place in eastern PA. Preferred
demographics include a population of 150,000 within five miles earning $50,000 as the
average family income. Leases running 20 years are typical and the company cites Lone
Star and Outback Steakhouse as competition. Lindt Chocolate operates 50 locations in CT, DE, ME, MD, MA, NH,
NJ, NY, PA, VT and VA. The stores, selling boxed chocolate, occupy spaces of 1,000 sq.ft.
in outlet centers and regional malls. Plans call for 10 openings in the coming 18 months.
Expansion will take place in the existing markets. Leases running five years are typical
and the company cites Godiva and See’s as competition.
Divaris Real Estate, Inc. (757-497-2113) leased 5,100 sq.ft. to Planet Video and 2,000 sq.ft. to Auto Services Discount Club at Elmhurst Square I Shopping Center in Portsmouth, VA; 3,600 sq.ft. to Ebony & Beauty at Birdneck Shopping Center in Virginia Beach, VA; 1,440 sq.ft. to Dollar Plus at East Towne Plaza in Richmond, VA; 18,000 sq.ft. to Just For Feet at Jefferson Plaza in Newport News, VA and 7,500 sq.ft. to Dollar General at Shoppes at Cresthaven in West Palm Beach, FL. Brandenberg Realty Associates, Inc. (914-241-9170), in conjunction with Gerald H. Genet, Inc., leased 106,000 sq.ft. to Big Kmart at Botany Plaza in Clifton and Passaic, NJ. Garrick-Aug Associates Store Leasing, Inc. (212-557-9090) leased 3,500 sq.ft. to Longchamp at 713 Madison Avenue in New York, NY; 1,000 sq.ft. to Papyrus at 2151 Broadway in New York, NY and 5,000 sq.ft. to Toni&Guy at 673 Madison Avenue in New York, NY. Robert K. Futterman & Associates, LLC (212-599-3700) leased 24,500 sq.ft. to Prada at 575 Broadway in New York, NY. Equity Properties (610-645-7700) leased 7,200 sq.ft. to Dollar General at Barley Station Shopping Center in Thorndale, PA. Sigma National, Inc. (804-320-6100) leased space to Consolidated Theaters at Commonwealth Centre Shopping Center in Richmond, VA and 26,040 sq.ft. to PetsMart at Gateway at NorthPointe Shopping Center in Durham, NC. Metro Commercial Real Estate, Inc. (609-866-1900) leased 65,000 sq.ft. to SuperFresh Supermarket at The Plaza at Cherry Hill in Cherry Hill, NJ and 7,900 sq.ft. to Family Dollar at Southwood Shopping Center in West Deptford, NJ. KLNB, Inc. (703-288-4000) leased 10,500 sq.ft. to Rugged Wearhouse at Sudley Manor Square Shopping Center in Prince William County, VA. Sarakreek Management Partners (212-888-4222) leased 8,115 sq.ft. to Dress Barn at La Promenade at L’Enfant Plaza in Washington, D.C. Korman Commercial Properties (215-244-5141) leased 1,988 sq.ft. to Dairy Queen at Parkwood Shopping Center in Philadelphia, PA. Chesapeake Commercial Properties, Inc. (410-581-9400) leased 12,000 sq.ft. to Dollar Express, 6,000 sq.ft. to Sav-On Liquors, 6,600 sq.ft. to Tip Top Diner and 3,000 sq.ft. to One World Travel at Reisterstown Shopping Center in Reisterstown, MD. PFG Capital Corporation (717-840-0087) leased 3,000 sq.ft. to Hockessin Liquor, 2,100 sq.ft. to Gernardo’s Pizza and 1,500 sq.ft. to The Total Picture at Wellington Plaza in Hockessin, DE. Atlantic Realty Companies (703-760-9500) leased 4,720 sq.ft. to Saint Basil Italian Restaurant at Tall Oaks Shopping Center in Reston, VA.
HomeBase, Inc. (949-442-5265) reported that its fiscal 1999 net income increased 26% to $22.3 million from $17.8 million during fiscal 1998, excluding a $16.3 million after-tax charge for store closures taken in the prior year’s third quarter. The prior year’s loss from continuing operations before extraordinary loss was $683,000. Net income for the year is not directly comparable to net income from the prior year because of changes to the HomeBase, Inc. capital structure and non-recurring charges related to the spin-off of BJ’s Wholesale Club, Inc. Sales for the 52-week year totaled $1.44 billion, compared to $1.48 billion during the 53-week prior year, reflecting a comparable 52-week same store sales decline of 0.5%. The company currently operates 84 home improvement stores, averaging 103,000 sq.ft., in 10 western states. BJ’s Wholesale Club, Inc. (508-872-2100) reported that its 1998 net income, excluding a $19.3 million charge to reflect the cumulative effect of certain accounting changes, was $81.8 million, compared to $68.3 million during 1997. Including the cumulative effect of the accounting changes, net income for the fiscal year was $62.5 million. Net sales increased 10% to $3.5 billion, from $3.2 billion during 1997. Comparable store sales increased 5.2% for the year. The company currently operates 96 wholesale clubs compared to 86 one year ago. AutoZone, Inc. (901-495-6500) reported that its second quarter net income increased five percent to $36 million from $34.4 million during its second quarter last year. Sales for the quarter increased 40% to $853 million from $607 million last year with comparable store sales up eight percent for the quarter. During the quarter, the company opened 82 new stores and replaced 22. Five Chief stores were closed. In addition, the company relocated four TruckPro stores. Also during the quarter, the company repurchased 829,000 shares of its common stock for $27 million, bringing the cumulative shares repurchased to 3.9 million for $106 million. The company currently operates 2,700 automotive parts stores trading as AutoZone and Chief in 39 states. The Chief stores are in the process of being converted to the AutoZone name and concept. The company also sells heavy-duty truck parts through 43 TruckPro stores in 14 states. The TJX Companies, Inc. (508-390-3000) reported that its fiscal 1998 income from continuing operations increased to $433 million from $307 million during fiscal 1997. Net sales for the year increased nine percent to $7.9 billion from $7.4 billion in the prior year. The company’s T.J. Maxx and Marshall’s divisions recorded five percent gains in comparable store sales and a 31% gain in operating income. The Winners Apparel, Ltd. division in Canada, posted a 13% gain in comparable store sales and a 56% increase in operating income. The HomeGoods division posted a nine percent comparable store sales increase. The T.K. Maxx division in the United Kingdom recorded a 12% comparable store gain. The company currently operates 604 T.J Maxx stores, 475 Marshalls stores, 35 HomeGoods stores and six A.J. Wright stores in the U.S. In Canada, the company operates 87 Winners Apparel stores and in Europe, the company operates 39 T.K. Maxx stores. Tiffany & Co. (212-755-8000) reported that its fiscal 1998 net sales increased 15% to $1.2 billion from $1.02 billion during fiscal 1997. Net earnings increased 24% to $90.1 million from $72.8 million the previous year. By division: sales at U.S. retail stores increased 20% to $590.1 million with a 10% increase in comparable store sales. Five new stores were opened during the year. International retail sales increased 10% for the year to $462.5 million. Direct marketing sales increased 10% to $116.1 million due to growth in Tiffany’s corporate and catalog sales. Albertson’s, Inc. (208-385-6200) reported a 1998 net profit of $567.2 million on sales of $16 billion, compared to $516 million on $14.7 billion in sales a year earlier. The record sales and earnings came off a fourth quarter that generated $190.4 million in profit on $4.2 billion in sales, up from $174.7 million in profits from $3.8 billion in sales. For the year, comparable store sales increased 0.5%. During the fourth quarter, the company opened 17 stores, bringing to 58 the number of new stores opened during the year on top of the 74 the company acquired. Albertson’s is awaiting approval of its plan to purchase American Stores Co. for $8.3 billion. The deal, expected to be completed before summer, will expand Albertson’s current coverage of 983 stores in 25 states to approximately 2,500 stores in 37 states. American Stores Company (801-536-5600) reported that its 1998 total sales increased 3.8% to $19.9 billion with comparable store sales up 1.5% for the year. Total pharmacy sales increased 20.2% for the year with comparable pharmacy sales up 17.1% for the year. During the year, the company opened 67 stores, completed 77 remodels and closed or sold 44 stores. The company currently operates 1,580 stores in 26 states including 283 food and drug combination stores, 524 supermarkets and 773 stand-along drug stores. The company operates 1,146 pharmacies within its stores. Its stores trade as Acme Markets, Jewel Food Stores, Lucky Stores, Osco Drug and Sav-On Drugs. Borders Group, Inc. (734-477-1100) reported that its fiscal 1998 net income increased 14.8% to $92.1 million from $80.2 million during FY97. Consolidated sales for the year increased 14.5% to $2.6 billion from $2.3 billion in FY97. By division: sales at its superstores increased 23.7% to $1.6 billion with comparable store sales up 3.5% for the year. During the year, the company opened 47 stores to bring its store count to 250. Sales at its Waldenbooks division fell 2.7% to $941.6 million with comparable store sales down one percent. During the year, the company closed 23 stores. The company’s online site, Borders.com, which began operations mid-year, generated sales of $4.6 million. During 1999, the company is planning to open 50 stores, including five international locations.
The Clothestime Stores, Inc. Apparel The 260-unit chain operates locations nationwide. The stores, selling junior apparel, occupy spaces of 4,000 sq.ft. in power and strip centers. Preferred anchors include Barnes & Noble, Old Navy, Ross, T.J. Maxx and Target. Plans call for 40 openings in the coming 18 months. Expansion will take place in AZ, CA, FL, GA, IL, LA, MD, MI, NV, NM, NJ, NY, NC, TX and VA. Preferred demographics include a population of 100,000 within three miles earning $45,000 as the average income. Leases running 10 years are typical. Haband Company Apparel The 17-unit chain operates locations in NJ and PA. The stores, selling men’s and women’s apparel to senior citizens, occupy spaces of 4,000 sq.ft. in 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 GA, NJ and PA. Leases running five years are typical. Hit or Miss James Avallone, Emilio Amendola Apparel The 251-unit chain operates locations nationwide. The women’s apparel stores occupy spaces of 5,000 sq.ft. to 8,000 sq.ft. in downtown store fronts, power and strip centers. Preferred anchors include supermarkets. Plans call for 20 openings in the coming 18 months. Expansion will take place in CT, DE, IL, MD, MA, MI, NJ, NY, OH, PA, RI, VA and WV. Vertigo Apparel The six-unit chain operates locations in CA, FL and GA. The upscale apparel retailers occupy spaces of 1,700 sq.ft. to 2,000 sq.ft. in downtown store fronts, regional malls and specialty centers. Preferred anchors include Bebe, DKNY, Nieman Marcus, Nordstrom and Saks. Plans call for 10 openings in the coming 18 months. Expansion will take place in Chicago, IL; Dallas and Houston, TX; Las Vegas, NV; Los Angeles, Palm Springs and San Francisco, CA; Denver, CO and Washington, D.C. Leases running 10 years are typical. National Book Warehouse, Inc.
The 87-unit chain operates locations nationwide. The stores, which sell books at up to 90% off the original publishers’ price, occupy spaces of 3,500 sq.ft. in outlet centers. Preferred co-tenants include Carter’s, Paper Factory, Osh Kosh and Vanity Fair. Plans call for 15 openings in the coming 18 months. Expansion will take place nationwide. Leases running five years are typical. Grace Energy Corp.
The 40-unit chain operates locations in AR, KS, MO and OK. The convenience stores occupy spaces of 3,600 sq.ft. in freestanding facilities. Plans call for three openings in the coming 18 months. Expansion will take place in AR and MO. CVS
The 4,100-unit chain operates locations in CT, GA, IL, IN, KY, ME, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, VT, VA, WV and Washington, D.C. The drug stores occupy spaces of 8,000 sq.ft. to 11,000 sq.ft. in freestanding facilities. Plans call for 440 openings during 1999. Expansion will take place in the existing markets. Preferred demographics include a trade area population of 18,000. J.L. Hammett Co.
The 62-unit chain operates locations in AZ, CA, CT, FL, IL, ME, MA, MI, MN, NH, NJ, NY, NC, OK, SC, TX and VA. The stores, selling educational items and teachers’ supplies, occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in power and strip centers. Preferred anchors include supermarkets. Plans call for as many as 14 openings in the coming 18 months. Expansion will take place in AZ, MN, NJ, NC, SC, TX and VA. Preferred demographics include a population of 300,000 within five miles earning $60,000 as the average income. Leases running three to five years are typical. Auntie Anne’s Inc.
The 560-unit chain operates locations nationwide. The stores, selling hand-rolled soft pretzels, occupy spaces of 450 sq.ft. to 1,000 sq.ft. in downtown store fronts, entertainment centers and regional malls. Plans call for 70 openings in the coming 18 months. Expansion will take place nationwide. Leases running 10 years are typical and the company is franchising. Benihana
The 51-unit chain operates locations nationwide. The Japanese restaurants occupy spaces of 7,000 sq.ft. to 8,000 sq.ft. in freestanding facilities and regional malls. Plans call for five openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of one million within 10 miles earning $40,000 as the average income. Leases running 15 years are typical. Restaurant Developers Corp.
The 106-unit chain operates locations in IL, NY, OH, PA and VA. The sandwich restaurants occupy spaces of 1,200 sq.ft. to 2,400 sq.ft. in freestanding facilities, regional malls and strip centers. Plans call for 30 openings in the coming 18 months. Expansion will take place within the existing markets. Preferred demographics include a population of 25,000 within one mile earning $25,000 as the average income. Leases running 10 years are typical and the company is franchising. Franchise Concepts Inc.
The 198-unit chain operates locations nationwide. The stores, selling art and offering custom framing services, occupy spaces of 1,500 sq.ft. to 1,800 sq.ft. in regional malls. Plans call for 12 openings in the coming 18 months. Expansion will take place nationwide. The company is franchising. Select Comfort Corporation
The 260-unit chain operates locations nationwide. The stores, selling mattresses and air beds, occupy spaces of 800 sq.ft. to 1,000 sq.ft. in regional malls, outlet and strip centers. Plans call for as many as 70 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 150,000 within five miles earning $60,000 as the average income. Leases running 10 years are typical. Workbench Holdings, LLC
The 37-unit chain operates locations in CT, IL, MA, MI, NE, NJ, NY, NC, OH, PA and WI. The furniture stores occupy spaces of 5,000 sq.ft. to 10,000 sq.ft. in freestanding facilities and strip centers. Plans call for 15 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years, with two options of five years each, are typical. National Home Center, Inc.
The eight-unit chain operates locations in AR. The building supply stores occupy spaces of 15,000 sq.ft. in freestanding facilities. Plans call for at least two openings in the coming 18 months. Expansion will take place in MO and OK. Leases running 10 years are typical. Reeds Jewelers Inc.
The 103-unit chain operates locations in AL, FL, GA, IA, KS, KY, MD, MS, NC, OH, OK, SC, TN, VA and WV. The jewelry stores occupy spaces of 1,000 sq.ft. to 1,300 sq.ft. in regional malls. Preferred co-tenants include fashion retailers. Plans call for six openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical.
The 520+-unit chain operates locations nationwide. The stores, selling pre-recorded music, videos and related accessories, occupy spaces of 2,700 sq.ft. to 40,000 sq.ft. in outlet centers and regional malls. Growth opportunities are sought in the Chicago, IL market and along the Eastern Seaboard. Leases running 10 years are typical. U.S. Vision
The 641-unit chain operates locations nationwide. The optical stores occupy spaces of 800 sq.ft. to 1,200 sq.ft. in regional malls. Growth opportunities are sought nationwide. Leases running five years are typical. U.S. Factory Outlets, Inc.
The 27-unit chain operates locations nationwide, exclusive of AK, HI, OR and WA. The stores, which are manufacturer outlet stores for more than 250 suppliers, occupy spaces of 36,000 sq.ft. to 52,000 sq.ft. in outlet, power and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place nationwide, exclusive of OR and WA. Preferred demographics include a population of 50,000 within five miles earning $35,000 as the average income. Leases running 10 years, with three options of five years each, are typical. Paper Warehouse
The 143-unit chain operates locations nationwide. The stores, selling paper and party supplies, occupy spaces of 4,000 sq.ft. to 8,000 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include Kmart, Target, Wal*Mart and supermarkets. Growth opportunities are sought nationwide. Preferred demographics include a population of 50,000 within 10 miles earning $50,000 as the average income. Leases running 10 years are typical and the company is franchising. Petland, Inc.
The 165-unit chain operates locations in 28 states and Puerto Rico. The stores, selling pet supplies, occupy spaces of 7,000 sq.ft. in power and strip centers. Preferred anchors include Kmart, Target and Wal*Mart. Plans call for at least 20 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 100,000 within five miles earning at least $35,000 as the average income. Leases running five years are typical and the company, which is franchising, cites Petco and PetsMart as competition. Danielson Food Stores
The seven-unit chain operates locations in OR. The supermarkets occupy spaces of 30,000 sq.ft. to 45,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market. Toys ‘R Us Inc.
The 1,000+-unit chain operates locations nationwide. The stores occupy spaces from 18,000 sq.ft. to 49,000 sq.ft. in freestanding facilities and power centers. Plans call as many as 15 openings in the coming 18 months. Expansion will take place nationwide.
Maryland Annapolis- Gateway Village Shopping Center is anchored
by Best Buy, Burlington Coat Factory, HomePlace, PetsMart and Staples. The
250,000 sq.ft. project has spaces of 6,000 sq.ft. and 10,000 sq.ft., as well as a pad site
of 6,000 sq.ft., available for lease. Demographics include a three-mile population of
37,599 earning $80,463 as the average income. The site is located near Nordstrom, Lord
& Taylor, Saks Fifth Avenue, Hecht’s and Sam’s Club. Baltimore- Parkway Crossing is anchored by SuperFresh,
Jeepers! and Blockbuster Video. The 267,689 sq.ft. project has spaces of 3,250
sq.ft., 6,872 sq.ft. and a former Caldor space of 110,872 sq.ft. available for
lease. Frostburg- Frostburg Plaza is anchored by Ames
Department Store. The 115,404 sq.ft. project has space available for lease. In Hagerstown-
Longmeadow Shopping Center is anchored by Sears, McCrory’s and Routzahn
Furniture. The 270,000 sq.ft. project has space available for lease. In Randallstown-
Brenbrook Plaza is anchored by Kmart and Minnesota Fabrics. The
140,000 sq.ft. project has space available for lease.
Bay City- Majestic Square is anchored by Kroger
Mega-Supermarket, ACO Hardware, Jo-Ann Fabrics and Big Lots/Odd Lot Trading.
The 135,000 sq.ft. project has a 3,720 sq.ft. space available for lease. An adjacent nine
acres is expected to be developed and spaces up to 100,000 sq.ft. are available for lease.
Demographics include a three-mile population of 44,796 earning $34,693 as the average
household income. In East Lansing- Majestic Plaza II is a 92,275
sq.ft. project that is totally vacant and divisible. Demographics include a three-mile
population of 68,447 earning $56,036 as the average household income. The site is within
walking distance of Michigan State University. In Warren- Majestic
Plaza is anchored by Dunham’s Sporting Goods, Jo-Ann Fabrics, Drug Emporium
and Frank’s Nursery & Crafts. The 135,000 sq.ft. project has a 5,083
sq.ft. space available for lease. Demographics include a three-mile population of 110,758
earning $48,653 as the average household income. In Wyoming- Value City
Center is anchored by Value City Department Store and Family Fare
Supermarket. The 119,000 sq.ft. project has spaces from 20,000 sq.ft. to 25,000
sq.ft., as well as a 25,500 sq.ft. outparcel, available for lease. Demographics include a
five-mile population of 191,826 earning $32,911 as the average household income.
Absecon- The Marketplace of Absecon is anchored by SuperFresh
and Eckerd Drugs. The 90,000 sq.ft. project has a 2,750 sq.ft. in-line space and an
outparcel that can accommodate a 5,500 sq.ft. building available for lease. The site
fronts Route 30, just five miles from Atlantic City, and has a daily traffic count in
excess of 40,000 vehicles. Audubon- Black Horse Pike Shopping Center is anchored by
JC Penney and Bradlees. The 497,090 sq.ft. project has space available for
lease. Demographics include a three-mile population of 144,771 earning $40,990 as the
median household income. Howell- A 1,350 sq.ft. space is available for lease at a
project anchored by Dunkin Donuts. The center is located at the intersection of
Route 9 and Alexander Avenue. Demographics include a three-mile population of 62,919
earning $48,196 as the median income. In Lakewood- Seagull Square
Shopping Center is anchored by Edwards Super Food Store, Walgreens and Burger
King. The 100,000 sq.ft. project has spaces from 1,200 sq.ft. to 10,000 sq.ft.
available for lease. Demographics include a five-mile population of 119,000 earning
$39,590 as the median household income. Princeton- Princeton Shopping Center, a 215,000 sq.ft.
project fronting North Harrison Street, has anchor positions from 20,000 sq.ft. to 40,000
sq.ft. available for lease.
Bloomsburg- Columbia Mall is anchored by Sears, The
Bon-Ton, JC Penney and Ames. The 400,000 sq.ft. project has space available for
lease. Demographics include a 20-mile population of 212,000 earning $36,500 as the average
household income. Devon- Valley Fair is anchored by Filene’s
Basement and MedMax. The 113,000 sq.ft. project has a 16,836 sq.ft. space
available for lease. Manheim- Manheim Shopping Center is anchored by Longenecker’s
Hardware and CVS Pharmacy. The 48,000 sq.ft. project, which will be expanding
by 30,000 sq.ft., has four spaces of 1,200 sq.ft. each, two spaces of 2,000 sq.ft. each, a
3,500 sq.ft. space and two spaces of 8,000 sq.ft. each available for lease. Demographics
include and five-mile population of 39,000 earning $53,900 as the average income.
Retailers in the area include Weis Market and Manheim Auto Auction.
El Paso- Pad sites and in-line space are available for lease at
a 14 acre site located at the intersection of Rojas and George Dieter. Build-to-suit deals
are also available. The site has a daily traffic count in excess of 28,000 vehicles and
has a three-mile population in excess of 100,000 earning $50,797 as the average household
income.
Appomattox- Shoppes at Appomattox is anchored by Harris
Teeter, Peebles Department Store and CVS. The 108,635 sq.ft. project has a
1,400 sq.ft. space available for lease. Retailers in the area include Wal*Mart. In Fredericksburg-
Chancellor Shopping Center is anchored by Food Lion and Trak Auto.
The 110,000 sq.ft. project has spaces of 1,200 sq.ft., 1,650 sq.ft. (2) and 30,000 sq.ft.
available for lease. Demographics include a three-mile population of 33,154 earning
$51,616 as the average income. Retailers in the area include Wal*Mart, Kmart and Target.
In Madison Heights- Amelon Square is anchored by Winn-Dixie, CVS
and Advance. The 139,380 sq.ft. project has spaces of 2,000 sq.ft., 2,360 sq.ft.,
3,000 sq.ft. and 14,400 sq.ft. available for lease. Demographics include a five-mile
population of 41,208 earning $40,131 as the average household income. Retailers in the
area include a Wal*Mart Supercenter. In South Hill- Town Square
is anchored by Peebles Department Store and Winn-Dixie. The 133,800 sq.ft.
project has spaces of 3,000 sq.ft., 4,000 sq.ft. and 6,000 sq.ft. available for lease.
Demographics include a five-mile population of 9,562 earning $32,279 as the average
income. Retailers in the area include Wal*Mart. Dale City- Ashdale Plaza is anchored by Fitness
Equation, Dollar General, Tutor Time and NAPA Auto Parts. The 93,000 sq.ft.
project has spaces of 2,393 sq.ft. and 3,683 sq.ft. available for lease. Fairfax- A 22,500 sq.ft. freestanding facility on the ring road
of Fair Oaks Mall is available for lease. The site has visibility from US Route 50.
Demographics include a three-mile population of 55,000 earning $100,000 as the average
income. Falls Church- A 3,200 sq.ft. former Boston Market
restaurant is available for lease. The site, which has parking for 33 vehicles, fronts
West Broad Street which has a daily traffic count of 34,000 vehicles. Demographics include
a three-mile population of 129,337 earning $85,556 as the average income. Retailers in the
area include Giant Food, CVS, Starbucks, Red Lobster, Long John Silver’s,
McDonald’s and Burger King. Hampton- Langley Square Shopping Center is a 154,000
sq.ft. project currently undergoing a complete remodeling. Both anchor positions and
in-line spaces are available for lease. Demographics include a four-mile population of
121,801 earning $40,758 as the average household income. In Virginia Beach- Holland
Plaza Shopping Center, a 141,967 sq.ft. project, has both small and large shop space
available for lease. Demographics include a three-mile population of 152,704 earning
$45,527 as the average household income. Lexington- College Square Shopping Center is anchored by
Kroger and Peebles Department Store. The 141,400 sq.ft. project has a 14,720
sq.ft. space available for lease. Retailers in the area include Wal*Mart. Richmond- Commonwealth Centre Shopping Center is
anchored by Target, Kohl’s Department Store, OfficeMax, PetsMart, Books-A-Million
and Consolidated Theatres. The 700,000 sq.ft. project has anchor positions
available for lease. In Williamsburg- Cedar Valley Shopping Center is
anchored by Lowe’s Home Improvement Warehouse. The 275,000 sq.ft. project has
anchor positions and outparcels available for lease. Currently, leases are pending with an
office supply store, a wholesale club and a sporting goods store. Richmond- Kmart Plaza is anchored by Kmart and Food
Lion. The project has outparcels available for lease. Sterling- Sugarland Plaza is anchored by Shoppers
Food Warehouse, The Room Store and Burlington Coat Factory. The 205,000 sq.ft.
project has spaces from 1,200 sq.ft. to 14,000 sq.ft. available for lease. Demographics
include a five-mile population of 138,103 earning $84,234 as the average income. Retailers
in the area include Home Depot and Target.
Real Estate Professionals Making The News Millman Search Group (410-337-0030) announces that Lori Marler Kleppin has joined the company as director of its shopping center division. She will be consulting in the areas of leasing, property management, property and corporate marketing, construction and asset management. Longs Drug Stores (925-937-1170) announces the appointment of William Chenevich to its board of directors. Chenevich is a group executive vice president, systems with Visa International. Sears, Roebuck and Co. (847-286-2500) has named Julian Day as executive vice president and chief financial officer. Day is formerly executive vice president and chief financial officer for Safeway, Inc. At Sears, Day will have responsibility for all Sears financial operations. Shoney’s Inc. (615-391-5201) announces that Raymond Schoenbaum, son of Shoney’s founder Alex Schoenbaum, has been named chairman of the company. In other company news, Jeffry Gordon has been promoted to vice president of real estate. James E. Hanson, Inc. (201-488-5800) announces that Jason Stroger has joined the company as a sales associate. Prior to joining Hanson, Stroger spent the past two years as vice president of construction for a large real estate company. Previously, he served as a sales associates and market research specialist with Insignia/ESG, Inc. Carter & Associates (813-387-1703) announces the appointment of Jon Slater to senior associate. Slater specializes in tenant representation, landlord representation, asset acquisition/disposition and market research and analysis. Intimate Brands, Inc. (614-479-7000) announces the appointment of Wendy Burden to the newly created position of executive vice president operations and administration of Victoria’s Secret Stores. Burden will be responsible for finance, information technology and distribution services. Ross Stores, Inc. (510-505-4400) announces that Michael Hamilton has joined the company as senior vice president, stores. Before joining Ross, Hamilton served as executive vice president, operations, for Hill’s Department Stores since 1996. During his tenure there, he was responsible for stores, logistics, real estate, construction, store systems and field merchandising. Prior to Hills, Hamilton spent 23 years with Venture Stores, most recently as executive vice president of stores. Darden Restaurants (407-245-4000) announces the appointment of Greg Buchanan as senior vice president of development for its Bahama Breeze restaurant chain. Buchanan, formerly senior vice president of development and chief financial officer of Friday’s Hospitality Worldwide, Inc., will be responsible for strategic market development, real estate and construction for Bahama Breeze. Bruno’s, Inc. (205-940-9400) recently announced the resignation of James Hagan, its executive vice president and chief financial officer. Hagan resigned to accept a position as chief financial officer of Saturn Retail Enterprises, a newly created retail subsidiary of General Motors Corporation.
Krispy Kreme (336-725-2981) recently closed its store at Yoder Plaza in Newport News, VA, just two years after it opened. The store suffered from a poor design which included a double drive-thru lane that left room for only 20 inside seats. There was also no room to expand the store without tearing it down and rebuilding it. The poor design also meant that the company’s largest pastry-making machines didn’t fit. The company has learned from the experience and no longer uses double drive-thru lanes at its stores. Belk Inc. (704-357-1000) plans to close its 45,000 sq.ft. Howard’s department store at Parkland Plaza in Cayce, SC next month. The company has operated the store since 1976, but is closing it in order to concentrate its efforts on the three Columbia, SC stores that were acquired from Dillard’s in September. The three acquired stores have a combined GLA of nearly 600,000 sq.ft. Service Merchandise (615-660-6000), which recently announced plans to close 134 of its 347 stores, plans to close two of its three stores in Tulsa, OK and its only Buffalo, NY store located at Maple Ridge Plaza. All three of the stores are expected to be closed by June. Dallas Furniture Store Inc. (336-884-5759), a 67-year-old family-owned furniture business, plans to close its retail store during May and convert the space to a self-storage facility. The company is exiting the retail furniture business because its board of directors doesn’t believe the best use of the facility is for furniture retailing and the tight labor market has made it difficult to hire and retain entry-level sales employees. Also, the company has seen a curtailment in its furniture distribution from manufacturers during the past year. That trend is likely to continue as manufacturers seeks out larger retail outlets and vertical retailing to sell its products. Oshman’s Sporting Goods Inc. (713-928-3171) recently closed its 60,000 sq.ft. store at Irvine Spectrum. The two-year-old store was closed because it was underperforming. McDonald’s Corp. (630-623-3000) plans to close 30 of its 100 restaurants in Indonesia due to that country’s economic problems. Potatoes have quintupled in price over the past year in Indonesia which has forced the company to introduce a rice and eggs dish and other value meals without french fries. Also, the economic distress in Asia has made it cheaper to build new restaurants in other countries and the company anticipates opening 2,000 new units in Asia in the coming three years.
Penn Traffic (315-457-9460), which recently filed for Chapter 11 protection, recently was joined by two of its wholly-owned subsidiaries Big M Supermarkets, Inc. and Penny Curtiss Baking Co. Inc. Big M Supermarkets is the franchiser, wholesaler and service provider for more than 200 independent grocery stores throughout NY state. It listed debts of $185 million and $4.2 million in assets. Penny Curtiss manufacturers and distributes fresh and frozen baked goods to Penn Traffic and other stores, including the Big M supermarkets. It listed debts of $182 million and assets of $16.2 million. Last month, Penn Traffic filed for bankruptcy in a pre-arranged plan with its major creditors, who will forgive $1.1 billion of the company’s $1.7 billion debt in return for control of the company. The company lost more than $220 million between 1994 and 1998. Fox Promotions Inc. (908-272-0155), along with Jhane Barnes Collections Inc. and Hartz & Co. Inc., recently were granted an order for relief under Chapter 7 of the Bankruptcy Code after a court-ordered deadline to respond to an involuntary bankruptcy petition filed by the three companies was ignored by Renberg’s Inc. Since the original petition was filed, the three companies have been joined by Mia Shoes Inc. and Capital Factors Inc. The five creditors have lodged claims totaling $146,421 plus interest and associated costs. A trustee will be appointed by the Court that will assess Renberg’s debts and assets, initiate liquidation procedures and distribute those funds to the creditors. It could take more than a year before the creditors see payment, however. The trustee will also seek and review other claims against Renberg’s, examine the possibility of preferential payments, and determine whether finances flowing into the company were transferred to sources other than creditors. Robert Renberg, company president and CEO, issued a statement saying, "please be advised that when Renberg’s lost its lease in Utica Square, it sought the assistance of Fox Promotions from NJ to help with the store closing sale. We were very disappointed with the Way Fox Promotions handled our store closing. Numerous promises were broken and commitments were not kept. Since those matters will be addressed during this litigation, I cannot comment further at this time." Service Merchandise Co.’s (615-660-6000) board of directors recently authorized the company to file for Chapter 11 protection after five vendors filed a petition listing $8 million in claims and seeking court supervision of the chain’s restructuring. The filing comes just a little over a month after the company announced that it would close 134 of its 347 stores, close its Dallas, TX distribution center and cut its company headquarters workforce by 270. In its filing, the company listed total debts of $1.3 billion owed to more than 1,000 creditors and assets of $1.5 billion. The company has obtained $750 million in financing to continue to pay its bills during reorganization. Last year, the company narrowed its product offerings to jewelry, housewares and furnishings and shifted from warehouse distribution to off-the-shelf sales. So far, all of these moves have yet to pay any dividends. Some retail analysts have wondered aloud if the company will survive this bankruptcy filing. Factory Card Outlet Corp. (630-238-0010) and its subsidiaries recently filed voluntary petitions for protection under Chapter 11 of the Bankruptcy Code. In a statement, Stewart Kasen, company chairman, president and CEO, said, "...we had entered into a letter of intent with Catalyst Equity Partners concerning a potential preferred stock investment. This investment would have allowed the company to restructure out of court and pursue its business strategy. Unfortunately, the discussions with Catalyst have terminated and we now realize that an out of court restructuring will not be able to be completed in a timely fashion." The company also announced that it has received a commitment from a group of lenders led by Foothill Capital Corporation for up to $50 million in Debtor in Possession financing to provide the company with adequate working capital to continue its daily operation. Omni Apparel Inc. (804-550-2052) recently filed a Chapter 7 liquidation plan and closed its nine-unit 20 Below chain of women’s apparel stores. Four of the stores were located in the Richmond area, four were located in the Hampton Roads area and one was located in Farmville, all in VA. The company said that the business model just didn’t work as the reason for the closure. In its filing, the company listed $70,344 in assets and $320,140 in liabilities. It has about $290,000 in unsecured claims. |