|
Issue Number 31
|
|
The Dealmakers Issue Number 31 for the week of August 27, 1999. Jewelry Stores Looking To Expand Nationwide Saslow’s, Inc. trades as Saslow’s at 21 locations
in NC and VA. The jewelry stores occupy spaces of 700 sq.ft. to 1,500 sq.ft. in power
centers and regional malls. Preferred anchors include Belk, Dillard’s,
Goody’s, Sears and Wal*Mart. Plans call for three openings in the coming
18 months. Expansion will take place in NC, SC, TN, VA or WV. Leases running five to ten
years are typical. Hannoush Jewelers operates 45 locations in CT, ME, MA, NH and NY.
The jewelry stores occupy spaces of 1,000 sq.ft. to 2,000 sq.ft. in power centers and
regional malls. Plans call for 10 openings in the coming 18 months. Expansion will take
place along the East Coast. King’s Jewelry operates 44 locations in MD, OH, PA and WV. The
jewelry stores occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in regional malls, outlet and
power centers. Preferred anchors include Wal*Mart and major department stores.
Plans call for six openings in the coming 18 months. Expansion will take place in the
existing markets. Preferred demographics include a population of 30,000 within three miles
earning $25,000 as the average income. Leases running seven to ten years are typical. Ultra Stores, Inc. trades as Ultra Diamond and Gold at 90
locations in 26 states. The stores, selling gold and diamond jewelry, occupy spaces of
3,000 sq.ft. in downtown store fronts, entertainment and outlet centers. Preferred
co-tenants include ladies fashion and high end fashion retailers. Plans call for 50
openings in the coming 18 months. Expansion will take place nationwide. Leases running
five to seven years are typical. Michaels Jewelers operates 12 locations in CT. The jewelry stores
occupy spaces of 1,500 sq.ft. to 1,800 sq.ft. in regional malls. Preferred anchors include
Lord & Taylor. Plans call for 11 openings in the coming 18 months. Expansion
will take place in the existing market. Preferred demographics include a population of
70,000 within three miles earning $45,000 as the average income. Leases running 11 years
are typical. New Construction Kappa Properties Co. recently broke ground on a shopping center in
Pittsburgh, PA. The 106,000 sq.ft. project will be anchored by a 65,000 sq.ft. Giant
Eagle Supermarket. The remaining stores will include a mix of small tenants from 1,000
sq.ft. to 3,000 sq.ft., and mid-size tenants from 10,000 sq.ft. to 40,000 sq.ft. In
addition, there will be two, one acre outparcels available. A May 2000 opening is planned. Developers Diversified Realty and Wilmorite, Inc. recently
formed a joint venture to develop Connecticut Commons, an open-air power center at
the intersection of I-84 and State Route 72 in Plainville, CT. The 500,000 sq.ft. project
will be anchored by a 150,000 sq.ft. Lowe’s Home Improvement store, a 101,711
sq.ft. Kmart store, a 90,000 sq.ft., 21-screen Sony Theaters and a 20,740
sq.ft. A.C. Moore store. The balance of the space will be occupied by specialty
stores and restaurants. A Spring 2000 opening is planned. DDR’s interest in the
development is being financed through Prudential Retail Value Fund. The Mills Corporation recently broke ground on Arundel Mills
in Anne Arundel County, MD. Located at the intersection of I-295 and Route 100, the 1.4
million sq.ft. project will be anchored by a 55,000 sq.ft. Jillian’s, a 31,250
sq.ft. Bed Bath & Beyond, a 30,000 sq.ft. Sun & Ski Sports, a 25,000
sq.ft. FYE (For Your Entertainment) store and a 22,000 sq.ft. Iguana Amerimex
furniture store. In total, more than 200 specialty retailers are expected to lease space
at the mall. The mall’s trade area encompasses more than 4.6 million people and total
retail sales in MD are projected to be approximately $4.1 billion during the
project’s first ten years of business. The $250 million project, which is being
developed with Kan Am, is expected to open during Fall 2000. The company has placed
its off-site expansion plans for Grapevine Mills on hold for at least a year as it
tries to add anchors and make changes to the decor of the mall. Current plans call for the
development of an 82,000 sq.ft. Polar Ice twin sheet skating rink and a 25,000
sq.ft. Iguana Amerimex Mexican and South American furniture store. The additions will
leave the mall with four unused anchor spaces. If and when expansion comes, it may
resemble the 300,000 sq.ft. Oasis concept used in the recent expansion of Sawgrass
Mills in FL. In other news, the company announced that it is targeting CA and Europe
in an ambitious plan of expansion. The company is looking at sites in Spain and Northern
Italy and at sites in downtown Los Angeles and San Francisco, CA. Plans for the Los
Angeles site include an upscale outdoor shopping center that would include a hotel and
office space. General Growth Properties Inc. is putting the finishing touches on RiverTown
Crossings in Grandville, MI, just outside of Grand Rapids. The 1.3 million sq.ft.
project will be anchored by Sears, Hudson’s, Younkers, J.C. Penney and Kohl’s.
Space for an additional 120 to 125 stores, including Barnes & Noble and Old
Navy, will also be developed. In addition, the mall will offer an eight-restaurant
food court, five sit-down restaurants and a 20-screen movie theater. Anchor tenants are
expected to begin opening this month with the bulk of the mall stores opening during
November. The Brookhill Group recently began an expansion and total
renovation of Hoover Square Shopping Center in Hoover, AL. New tenants will include
OfficeMax in 23,500 sq.ft. and Hi-Fi Buys in 13,600 sq.ft. Current anchor T.J.
Maxx is increasing its size from 32,000 sq.ft. to 40,000 sq.ft. The renovation work
will include a new exterior building facade, upgraded parking facilities and landscaping,
and relocation of entrances on U.S. 31. When the work is completed during Fall, the
center’s size will have increased 28% to 94,000 sq.ft. Dominck’s recently purchased a 13.5 acre parcel of land at The
Glen, formerly the Glenview Naval Air Station, in Glenview, IL for the
development of a 62,500 sq.ft. supermarket with an accompanying 28,000 sq.ft. of inline
stores. Space for three outlots for restaurant/retail uses and a bank totaling 23,800
sq.ft. will also be developed. The purchase price was $7.1 million. The redevelopment of
the former Naval station will also include the construction of 168 single-family homes, a
retirement community, a championship quality 18-hole golf course with a neighborhood of
299 single-family homes and 62 multi-family homes and a 164,000 sq.ft. community center.
Additional land sales are pending. Caruso Affiliated Holdings plans to break ground during September
on The Grove at Farmers Market in Los Angeles, CA. The 640,000 sq.ft. project,
which is being developed on 20 acres adjacent to the historic Farmers Market, will
be anchored by a two-level, 120,000 sq.ft. Nordstrom store, a 39,000 sq.ft. Crate
& Barrel store, a 30,400 sq.ft. Banana Republic store, which will feature a
new line of linens, tableware and home decor items, and a 26,050 sq.ft. Gap store
which will feature all Gap brands including the debut of Gap Body, a new line of
skin care and spa products. Pacific Theatres will premiere its Arc Light
movie experience with a 10 to 12 screen complex that will also include cafe-style
restaurants for pre- and post-movie dining. Maggiano’s, a Chicago, IL-based
restaurant, will open a 17,000 sq.ft. unit at The Grove, its first unit in the Los Angeles
market, as well. The project is expected to open during February 2001. Williams C. Jennings Co. is redeveloping the former Pipeline
Plaza, located near North East Mall, in Hurst, TX. The 10.3 acre development,
now named Pipeline Village, will be anchored by a 49,210 sq.ft. Toys ‘R Us
store and a 6,500 sq.ft. Men’s Wearhouse store on a pad site. Both stores
alreay have located near North East Mall, which is undergoing a $200 million expansion,
and the adjacent Shops at North East Mall, a $41 million discount center also under
construction. Additional space is available for lease at the 135,000 sq.ft. Pipeline Plaza
project. At one time, the center was anchored by Amber’s, Best Buy, Boot Town
and Michael’s. After all of the tenants vacated the center in 1996, it closed. Buyers & Sellers CBL & Associates Properties, Inc. recently acquired York
Galleria Mall in York, PA for $68.9 million. The company funded the acquisition through
financing provided by Wells Fargo. The 767,000 sq.ft. project, which is 93% occupied, is
anchored by The Bon Ton, Boscov’s, JC Penney and Sears. The company also announced
the sale of four assets, including two department stores and two freestanding properties,
for total proceeds of approximately $30 million. The sale includes a store currently
leased by Dillard’s at Hamilton Place Mall in Chattanooga, TN; a store at Pemberton
Square Mall in Vicksburg, MS to be occupied by Dillard’s during Fall; a freestanding
Regal Cinemas in Jacksonville, FL that is currently under construction and a freestanding
Hannaford Food & Drug store in Richmond, VA. CB Richard Ellis has the listing to sell 8th Avenue Shops in Mesa,
AZ. The 93,424 sq.ft. project is anchored by a supermarket and drug store. The center is
100% leased by a mix of multiple store operators with long-term leases at below-market
rents. The asking price is $8.736 million. Consolidated Affiliates, LLC as preferred developer on behalf of
Walgreen’s is in the market to acquire land in Atlantic, Middlesex, Monmouth and
Ocean counties in NJ. Preferred sites should range from one to three acres and be located
at signalized intersections of two main streets with significant traffic counts. Aries Deitch & Endelson, Inc. represents a buyer in the market
to acquire single tenant retail sites in the Northeastern region. Preferred properties
should have good credit and at least 10 years remaining on the lease. Prices should be
between $1 million and $10 million and all cash deals are possible. Adams, Kelly & Associates has the listing to sell a series of
to-be-built Eckerd Drug stores in the Northeastern region. The units will be available for
acquisition beginning in November. Edens & Avant recently acquired the following 12 shopping
centers: The Corridors at Ponte Verda, anchored by Harris Teeter, in Jacksonville, FL;
Marketplace at Ocala, anchored by Winn-Dixie, in Ocala, FL; Crofton Station, anchored by
Giant Foods, in Crofton, MD; Heritage Park Plaza, anchored by Super Stop & Shop, in
East Longmeadow, MA; First Street Station, anchored by Harris Teeter and Eckerd, in
Albemarle, NC; Taylorsville, anchored by Harris Teeter and Advance Auto, in Taylorsville,
NC; University Center, anchored by Harris Teeter and Eckerd, in Greenville, NC; Shaker
Towne Centre, anchored by Heinen Supermarket, CVS and Shaker Heights Hardware, in Shaker
Heights, OH; Super Stop & Shop, anchored by Super Stop & Shop, in Richmond, RI;
Litchfield Landing, anchored by Harris Teeter and Eckerd, in Pawley’s Island, SC;
Shoppes at Woodruff, anchored by Staples, in Greenville, SC and Towne Crossings, anchored
by Bed Bath & Beyond and Michaels, in Richmond, VA. The latest acquisitions bring the
total number of centers acquired so far this year to 21. The company expects to close on
approximately 20 more centers in the next few months. Parsi Real Estate Group represents a commercial real estate
investment group in the market to acquire single tenant retail sites. Preferred
transactions should be at least $3 million. Worthington Investments has the listing to sell a Rite Aid drug
store in New England. The store is expected to open next month. The company is in the
market to acquire net leased properties ranging in price from $750,000 to $15 million and
has an immediate need for a credit net leased property in New England priced from
$900,000. Reisenfeld & Company represented Giant Eagle in the acquisition
of land at the intersection of Routes 20 and 44 in Painesville, OH. Giant Eagle plans to
open an 80,000 sq.ft. supermarket on the site during Spring 2000. Who’s Opening & Where Lowe’s Home Improvement (336-658-4223) plans to open a 150,000 sq.ft. store at Rosedale Plaza in Bakersfield, CA late this year. Golden Corral (919-781-9310) plans to open a 9,952 sq.ft., 354-seat restaurant in Rock Hill, SC next month. The restaurant will be the company’s first in York County and its fifth in SC. The company currently operates and franchises 437 restaurants. Meijer, Inc. (616-453-6711) recently broke ground on a new store prototype in Angola, IN. The 150,000 sq.ft. store, which is smaller than the chain’s typical 216,000 sq.ft. average store size, will have a facade resembling a village street. A revamped interior is also planned. A Spring 2000 opening is planned and the development cost is expected to be $10 million. The outside will be designed to look like a series of buildings along a village street and the inside will carry on the village theme with a series of shops so rather than putting all the groceries on one side and all other goods on the other, merchandise will be arranged by category. For example, the baby shop will sell food, formula, bottles, clothing, diapers and other baby-related goods. The selection will be the same as in the superstores, but with smaller quantities in stock. The company plans to open several of the new prototype stores and will watch the results before deciding whether or not to adopt the format company-wide. Currently, the company operates 121 stores in MI, IN and OH and is planning to open six additional stores before the end of the year in IL and northern KY. Kmart Corporation (248-643-1000) is considering developing a second Super Kmart in Detroit, MI on the far northwestern side on the site of the former Bonnie Brook golf course. Construction is not expected to begin until next year on the 150,000 sq.ft. store which is expected to cost between $12 million and $17 million. Pier 1 Imports (817-878-8000) recently opened a 14,000 sq.ft. store at a former Computer City location in Anchorage, AK, the company’s first store in the AK market. Overall, the company operates more than 800 stores in 49 states, Puerto Rico, Canada, the United Kingdom and Japan. Bassett Furniture Industries Inc. (540-629-6000) plans to open a 25,150 sq.ft. Bassett Direct store in Amherst, NY during Fall and a store in Poughkeepsie, NY. The stores will be the company’s first two units in NY. Until this past March, all 35 Bassett Direct retail operations were licensed locations, owned and operated by franchisees under Bassett specifications. The company debuted its first self-run furniture store in January in Greenville, SC and has since added five more corporate locations in NC, SC, TN and VA. The company plans to add 25 more corporate Bassett Direct stores by the end of the year, plus another 30 to 35 stores in 2000, working toward the goal of 200 licensed and company-owned stores by 2004. A freestanding Bassett Direct store will sell only furniture built by Bassett and accessories, such as wallpaper and area rugs, licensed by Bassett and marketed under the company name. Financial News Starbucks Corporation (206-447-1575) reported that its third quarter consolidated net revenues increased 27% to $424 million from $334 million during its third quarter last year. Retail sales increased 26% to $356 million and specialty sales revenues increased 33% to $68 million. Comparable store sales increased six percent for the quarter. Net earnings for the quarter were $24.6 million, up from $7.9 million last year. During fiscal year 2000, the company plans to open 600 stores worldwide including at least 350 company-operated stores and 100 licensed stores in continental North America and a total of 150 stores in the Pacific Rim and the United Kingdom. Currently, the company operates and franchises more than 2,300 stores in North America, the United Kingdom, the Pacific Rim and the Middle East. www.starbucks.com Stein Mart, Inc. (904-346-1500) reported that its second quarter net income increased 3.6% to $9.4 million from $9.1 million during the second quarter last year. Net sales for the quarter increased 14.5% to $244.9 million from $214 million last year. Comparable store sales increased 0.7% for the quarter. During the quarter, the company opened six stores and is planning to open 28 stores by the end of the year. Currently, the company operates 196 stores in 29 states. Play Co. Toys & Entertainment Corp. (760-471-4505) recently entered into an investment agreement with an investment banking firm to take public its subsidiary, Toys International.com, Inc. in an initial public offering. The investment agreement anticipates IPO proceeds of approximately $20 million to $25 million through the sale of 22% of Toys International. Additionally, as part of the investment agreement the investment banking firm participated in a $2.8 million pre-IPO private equity placement in Toys International. Toys International currently operates 19 of the company’s 26 stores as well as its Internet operations. The company posted net income of $148,868 in the year ended March 31, compared to a net loss of $2.1 million in the prior year. Play Co. Toys posted sales of $34.4 million for the March 1999 year, a 52.3% increase over its prior year sales of $22.6 million. www.playco.com Unique Casual Restaurants, Inc. (978-774-6606) recently changed its corporate name to Champps Entertainment, Inc. The new name better reflects the company’s primary business which is owning, operating and franchising Champps Americana restaurants throughout the U.S. The company is effectuating the name change through a merger with a newly formed, wholly-owned subsidiary. The company will also change its ticker symbol from UNIQ to CMPP. The company currently owns and operates 18 Champps Americana restaurants and franchises 13 units. The company also has three restaurants under construction in Atlanta, GA; Chicago, IL and Houston, TX. Tuesday Morning Corporation (972-387-3562) reported that it posted second quarter net income of $2.5 million, compared to a net loss of $0.7 million during the second quarter last year. Net sales increased 27% to $107.7 million from $84.8 million last year and comparable store sales increased 16.4% for the quarter. The company currently operates 365 deep-discount closeout home furnishings and gift stores throughout North America. These stores open eight times a year for four-week to six-week "events" during the retail industry’s peak selling seasons. www.tuesdaymorning.com IHOP Corp. (818-240-6055) reported that its second quarter systemwide net income increased 21.5% to $7.9 million. Systemwide sales increased 11.2% to $278 million with comparable store sales up 1.7% for the quarter. During the quarter, the company opened 22 restaurants, 17 company owned and five franchises. Currently, the company operates and franchises 864 units nationwide. The company also announces that it has filed a listing application with the New York Stock Exchange. The company said trading of its common stock on the NYSE is anticipated to begin in mid-September under the new trading symbol "IHP." www.ihop.com CVS Corporation (401-765-1500) reported that its second quarter net sales increased 16.1% to $4.36 billion from $3.76 billion during the second quarter last year. Comparable store sales increased 11.6% for the quarter. Pharmacy sales increased 19.5% for the quarter and accounted for 58% of total sales. Third party prescription sales were 86% of pharmacy sales during the quarter. Excluding the impact of the 1998 non-recurring charges, comparable net earnings for the quarter increased 25.2% to $162.6 million from $129.9 million. The 1998 non-recurring charges included a $10 million charge to cost of goods sold for markdowns on non-compatible Arbor merchandise and a $158.3 million charge to operating expenses for direct and other merger-related costs pertaining to the CVS/Arbor merger. During the second quarter, the company opened 38 stores and relocated 53 others. Currently, the company operates more than 4,100 stores in 24 states. Lead Sheet The Buckle, Inc. Apparel The 240-unit chain operates locations nationwide. The stores, selling better lines of casual apparel for juniors and young men, occupy spaces of 4,500 sq.ft. to 5,000 sq.ft. in regional malls. Plans call for 45 openings in the coming 18 months. Expansion will take place in the Southeastern, Southwestern and Western regions. Leases running 10 years are typical. Burton’s Menswear, Inc. Apparel The eight-unit chain operates locations in VA. The stores, selling men’s and women’s apparel, occupy spaces of 5,000 sq.ft. in power and strip centers. Plans call for one opening in the coming 18 months. Expansion will take place in the existing market. Leases running 15 years are typical and the company prefers a vanilla shell. McGillen’s Inc. Arts/Crafts/Fabrics The six-unit chain operates locations in FL. The stores, selling arts, crafts and hobby supplies, occupy spaces of 12,000 sq.ft. to 20,000 sq.ft. in power and strip centers. Growth opportunities are sought in central and western FL. Preferred demographics include a trade area population of 100,000 earning $35,000 as the average income. Western Tire Centers Automotive The 18-unit chain operates locations in AZ and NM. The automotive supply and service centers occupy spaces of 6,000 sq.ft. to 12,000 sq.ft. in freestanding facilities. Plans call for as many as two openings in the coming 18 months. Expansion will take place in AZ, NV or NM. The company prefers to purchase its locations. Buck A Book Books The 20-unit chain operates locations in CT, MA, NH and RI. The book stores occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in downtown store fronts. Preferred anchors include big box discount retailers. Plans call for as many as eight openings in the coming 18 months. Expansion will take place in CT, ME, MA, NH and RI. Preferred demographics include a population of 75,000 within three miles earning $45,000 as the average income. Leases running five years, with options, are typical. The Norman Group Inc. Cards & Gifts The 15-unit chain operates locations in NJ and PA. The Hallmark Gold Crown card and gift stores occupy spaces of 4,000 sq.ft. to 6,000 sq.ft. in regional malls, entertainment, power and strip centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical. Chico Dairy Company Convenience Store The 38-unit chain operates locations in MD, PA and WV. The convenience stores, which also sell gasoline, occupy spaces of 2,400 sq.ft. in freestanding facilities. Plans call for two openings in the coming 18 months. Expansion will take place in PA and WV. Preferred demographics include a population of 5,000 within two miles earning $20,000 as the average income. Leases running 20 years are typical. Elder-Beerman Corp. Department Store The 61-unit chain operates locations in IL, IN, KY, MI, OH, PA and WV. The department stores occupy spaces of 60,000 sq.ft. to 100,000 sq.ft. in regional malls and power centers. Plans call for five openings in the coming 18 months. Expansion will take place in IL, IN, MI and OH. Preferred demographics include a population of 35,000 within five miles earning $55,000 as the average income. Leases running 10 to 20 years are typical. Zany Brainy Educational The 75-unit chain operates locations in AL, AZ, CA, CO, DE, GA, IL, IN, KS, KY, MD, MN, MO, NE, NV, NJ, NY, NC, OH, PA, SC, TN, UT, WA and WI. The stores, selling educational toys, games, multimedia and arts and crafts for children, occupy spaces of 8,500 sq.ft. to 11,000 sq.ft. in regional malls, power, specialty and strip centers. Plans call for 25 openings annually. Expansion will take place nationwide. Basketball City Entertainment The company operates one unit in NY. The facility, which features basketball courts, weight rooms, volleyball courts and a sports lounge, occupies a 45,000 sq.ft. space in an entertainment center. Downtown sights are also sought. Plans call for three openings in the coming 18 months. Expansion will take place in NY, NC, PA or Washington, D.C. A national roll-out is expected to follow. The Robert Organization Fitness The 15-unit chain operates locations in NJ, NY and PA. The aerobic studios occupy spaces of 3,500 sq.ft. to 4,500 sq.ft. in downtown store fronts, power, specialty and strip centers. Growth opportunities are sought in CT, DE, NJ, NY and PA. Leases running 15 years are typical and the company is franchising. Dollar General Corp. General Merchandise The 3,800-unit chain operates locations in 24 states. The general merchandise stores occupy spaces of 7,200 sq.ft. to 8,000 sq.ft. in freestanding facilities and strip centers. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for 750 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 6,000 within three miles earning $35,000 as the average income. Leases running three to five years are typical. Universal/Spencer Gifts Inc. Gifts The 26-unit chain operates locations nationwide. The stores, selling unusual and unique gifts and licensed merchandise, occupy spaces of 1,600 sq.ft. to 1,850 sq.ft. in specialty centers. Growth opportunities are sought nationwide. Preferred demographics include a population of 400,000 within five miles earning $35,000 as the average income. Leases running 10 years are typical. Fantastic Sam’s International Hair Salon The 1,325-unit chain operates locations nationwide. The family hair salons occupy spaces of 1,200 sq.ft. in power and strip centers. Preferred anchors include supermarkets. Plans call for at least 150 openings in the coming 18 months. Expansion will take place in MD, southern NJ and the Philadelphia, PA market. Preferred demographics include a population of 50,000 within five miles earning $24,000 as the average income. Leases running five years, with a five-year option, are typical and the company is franchising. Fiesta Salons Inc. Hair Salon The 225-unit chain operates locations in KY, IN, MI, OH and WV. The hair and tanning salons occupy spaces of 1,200 sq.ft. in strip centers. Preferred anchors include big box retailers and supermarkets. Growth opportunities are sought in the existing markets. Leases running five years are typical. M.A. Bruder & Sons Inc. Home Improvement The 160-unit chain operates locations in AL, DE, FL, IL, IN, MD, MO, NJ, NC, OH, PA, SC, TN, VA and Washington, D.C. The stores, selling paints, wallcoverings and window treatments, occupy spaces of 3,500 sq.ft. to 5,000 sq.ft. in freestanding facilities. Plans call for 18 openings in the coming 18 months. Expansion will take place in DE, FL, IL, IN, NJ and PA. Preferred demographics include a population of 150,000 within five miles earning $35,000 as the average income. Leases running five years are typical and the company prefers a vanilla shell. Gallery Gift Shoppes Inc. Housewares The 13-unit chain operates locations in CT, MA, NH and RI. The stores, selling table top and kitchen housewares, occupy spaces of 20,000 sq.ft. in regional malls and power centers. Preferred co-tenants include Crate & Barrel, T.J. Maxx, Target, Bed Bath & Beyond, Linens ‘n Things and department stores. Growth opportunities are sought in the Northeastern region. Preferred demographics include a population of 150,000 within six miles earning $55,000 as the average income. Leases running 10 years, with a five-year option, are typical. Music City Record Distributors Music The 26-unit chain operates locations in FL, SC and TN. The stores, selling pre-recorded music and related products, occupy spaces of 1,800 sq.ft. to 3,800 sq.ft. in freestanding facilities, entertainment, power, specialty and strip centers. Preferred co-tenants include Blockbuster Video, Hollywood Video, drug stores and supermarkets. Plans call for five openings in the coming 18 months. Expansion will take place in central TN and the north Gulf Coast region. Preferred demographics include a population of 50,000 within three miles earning $37,000 as the average income. Leases running three to five years, with options, are typical. Paper Warehouse Party Supplies The 100-unit chain operates locations in AR, CO, IA, KS, MN, MO, NE and WA. The stores, selling party supplies, occupy spaces of 4,000 sq.ft. to 8,000 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include discount retailers and supermarkets. Plans call for 10 openings in the coming 18 months. Expansion will take place in AR, WA and the Midwestern region. Preferred demographics include a population of 50,000 within five miles earning $50,000 as the average income. Leases running 10 years are typical. Craters & Freighters Franchise Corp. Shipping The 60-unit chain operates locations in AZ, CA, CO, CT, FL, GA, IL, KY, LA, MD, ME, MN, MI, MO, NC, OH, PA, NY, SC, TX, TN, UT, MS, OR, NV and WA. The stores, which provide freight services, occupy spaces of 1,500 sq.ft. to 2,000 sq.ft. in office and warehouse sites with loading docks. Plans call for at least 15 openings in the coming 18 months. Expansion will take place in major metropolitan markets nationwide. The company is franchising. World Class Footwear Shoes The 10-unit chain operates locations in FL. The stores, selling brand-names family shoes and accessories, occupy spaces of 1,600 sq.ft. to 3,500 sq.ft. in freestanding facilities, regional malls, power, specialty and strip centers. Preferred anchors include Burdine’s, Macy’s, Neiman Marcus and Saks. Plans call for as many as 10 openings in the coming 18 months. Expansion will take place in FL and GA. Preferred demographics include a population of 500,000 within 10 miles earning at least $50,000 as the average income. Leases running seven to ten years are typical. Performance Inc. Sporting Goods The 42-unit chain operates locations in CA, CO, IL, MD, NC, OR, PA, VA and WA. The stores, selling bicycles and related apparel and equipment, occupy spaces of 4,200 sq.ft. to 4,500 sq.ft. in freestanding facilities, specialty and strip centers. Preferred anchors include Bally’s, REI, Dick’s Sporting Goods and Wild Oats. Plans call for 15 openings in the coming 18 months. Expansion will take place in AZ, CA, CO, NM, OR, UT and WA. Preferred demographics include a population of 60,000 within 15 miles earning $60,000 as the average income. Leases running five years are typical. The Fruitful Yield National Food & Vitamin Supermarket The 13-unit chain operates locations in IL. The health foods supermarkets occupy spaces of 4,000 sq.ft. in freestanding facilities and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 40,000 within seven miles earning $50,000 as the average income. Leases running five years, with a five-year option, are typical and the company prefers a vanilla shell. Food Tenants Hungry for Sites Nationwide Auntie Anne’s Inc. trades as Auntie Anne’s at 580
locations nationwide. The stores, featuring hand-rolled soft pretzels, occupy spaces of
200 sq.ft. to 1,000 sq.ft. in downtown store fronts, entertainment centers and regional
malls. Plans call for 90 openings in the coming 18 months. Expansion will take place
nationwide. Leases running 10 years are typical and the company is franchising. Creative Foods Corporation does business as Burger King at
19 locations in Brooklyn, the Bronx, Queens, Nassau and Suffolk counties in NY. The fast
food restaurants occupy spaces of 3,000 sq.ft. in downtown store fronts and freestanding
facilities. Preferred anchors include Target. Plans call for the opening of four
units in the coming 18 months. Expansion will take place in Queens, NY. Leases running 20
years are typical and the company prefers a vanilla shell. Cousins Sub Systems, Inc. trades as Cousins Subs at 140
locations in AZ, CO, IL, MI, MN, TX and WI. The restaurants, serving submarine sandwiches,
occupy spaces of 1,400 sq.ft. to 2,200 sq.ft. in specialty and strip centers. Preferred
anchors include Blockbuster and grocery stores. Plans call for 35 openings in the
coming 18 months. Expansion will take place in MI, MO, IN and Puerto Rico. Preferred
demographics include a population of 10,000 within one mile earning $30,000 as the average
income. Leases running seven years are typical and the company, which cites Subway
as competition and prefers a vanilla shell, is franchising. Taco Mayo Franchises Systems Inc. trades as Taco Mayo at 110
locations in AR, IA, KS, LA, MO, MS, NC, OK, SC and TX. The Mexican fast food restaurants
occupy spaces of 1,200 sq.ft. to 2,100 sq.ft. in freestanding facilities and regional
malls. Growth opportunities are sought in AR, KS, LA, MO, OK and TX. Leases running 15
years are typical and the company is franchising. Mascott Corp. trades as Cinnabon Bakery at eight locations
in NJ and as Popeye’s Chicken & Biscuits at one location in NJ. The
Cinnabon units occupy 800 sq.ft. in regional malls while the Popeye’s unit occupies a
3,000 sq.ft. space in a strip center. Plans call for five openings in the coming 18
months. Expansion will take place in the existing market. Preferred demographics include a
population of 50,000 within 10 miles earning $45,000 as the average income. Leases running
10 years are typical. Lampost Franchise Corp. trades as Lamp Post Pizza at 55
locations in AZ, CA and TX. The pizza restaurants occupy spaces of 3,000 sq.ft. to 5,000
sq.ft. in strip centers. Preferred anchors include supermarkets. Plans call for 12
openings in the coming 18 months. Expansion will take place in Orange County, CA and
Austin, TX. Preferred demographics include a population of 30,000 within two miles earning
$60,000 as the average income. Leases running 10 years are typical and the company is
franchising. J&J Restaurant Group, Inc. trades as Bavarian Pretzel Bakery
and Pretzel Gourmet at 65 locations in CT, MD, NJ, NY, PA, VT and WV. The stores,
selling soft pretzels, occupy spaces of 150 sq.ft. to 600 sq.ft. in regional malls. Plans
call for 20 openings in the coming 18 months. Expansion will take place in DE, IN, MI, NJ,
NY, OH, PA and WV. Leases running seven years are typical and the company cites Auntie
Anne’s and Pretzel Time as competition.
Krystal Co. trades as Krystal at more than 350 locations in
the Southeastern region. The fast food restaurants occupy freestanding facilities on at
least 35,000 sq.ft. of land. Plans call for 25 openings in the coming 18 months. Expansion
will take place in AL, FL, GA, MS and TN. Leases running 10 years are typical and the
company is franchising. Campbell Soup Company does business as Godiva Chocolates at
210 locations in 27 states. The stores, selling chocolates, occupy spaces of 800 sq.ft. in
outlet centers and regional malls. Plans call for 50 openings in the coming 18 months.
Expansion will take place nationwide. Preferred demographics include a population of
250,000 within 10 miles earning $45,000 as the average income. Leases running 10 years are
typical. Eegee’s Inc. trades as Eegee’s at 20 locations in
Tucson, AZ. The restaurants, specializing in submarine sandwiches, occupy spaces of 2,500
sq.ft. in freestanding facilities. Plans call for as many as three openings in the coming
18 months. Expansion will take place in the existing market. Leases running 10 to 20 years
are typical. Phoenix Restaurant Group trades as Black Eyed Pea Restaurants
and Denny’s at 260 locations in AZ, CO, FL, ID, OK, TX and UT. The restaurants
occupy spaces of 5,000 sq.ft. in freestanding facilities, regional malls, entertainment,
outlet and power centers. Plans call for 15 openings in the coming 18 months. Expansion
will take place in AZ, OK and TX for its Black Eyed Pea units and in AZ, CO, FL, ID, TX
and UT for its Denny’s restaurants. Leases running 20 years, with two options running
five years each, are typical. Nicar Franchising Inc. does business as Great Steak & Potato
Company at 200 locations in 31 states. The fast food restaurants, specializing in
Philadelphia-style cheesesteak sandwiches, occupy spaces of 500 sq.ft. to 1,500 sq.ft. in
downtown store fronts, regional malls, entertainment, outlet, power and strip centers.
Preferred co-tenants include Mail Boxes Etc., pizza shops and Post Offices. Plans
call for 30 openings in the coming 18 months. Expansion will take place in GA, IN, KY, MI,
NC, OH and TN. Preferred demographics include a population of 30,000 within three miles
earning $50,000 as the average income. Leases running 10 years are typical and the
company, which is franchising, prefers a vanilla shell. Bankruptcy News Juicy Lucy’s (800-654-6817), a wholly-owned subsidiary of Franchise Management International, Inc., recently filed for Chapter 11 bankruptcy protection. According to the company, its reorganization plan has already been developed and the company believes that by operating under the protection of the bankruptcy court it will be able to successfully reorganize its affairs and emerge as a viable and profitable company. As part of the restructure, Henry Orlinsky and Tom Bumgardner are no longer members of the board of directors of FMI and E. Wayne Wallhausen and Mark Novell have left the company. The company is actively seeking a new CFO. The operations of FMI, exclusive of Juicy Lucy’s, are not affected by the filing. Montgomery Ward (312-467-2000) recently emerged from Chapter 11 bankruptcy protection, having fulfilled the requirements of its plan of reorganization. The company also announces the completion of a $1 billion inventory financing facility with BT Commercial Corporation. The company currently operates 252 stores in 32 states. Pizza Pit (608-221-6777) recently filed for Chapter 11 protection listing liabilities of $855,065 and assets of only $451,000. The company does not plan to close any of its corporate or franchised pizza restaurants. Management cited a short-term cash flow problem which forced it to miss a loan payment as the reason for the filing. The company currently owns and operates nine units and franchisees operate an additional 30. At one time, the company planned to grow to 100 units. Boston Chicken’s (303-216-5172) request to bypass its two lead lenders and sell the company to Boston Market Acquisition Co. for $140 million was recently rejected by the bankruptcy court which ruled that Boston Chicken would require the approvals of Bank of America and GE Capital before accepting the offer. The lenders claimed that cutting them out of sale negotiations would have violated bankruptcy law and removed any control they had over how money lent to Boston Chicken was spent. Boston Market Acquisition Co. has offered $105 million in cash and would assume up to $35 million in debt for Boston Chicken’s remaining assets, valued at $1.8 billion in bankruptcy court filings. The Ozer Group was recently appointed by the U.S. Bankruptcy Court in DE to liquidate the inventory of Starter Corp. (203-781-4000) which filed for bankruptcy protection in April. Following the liquidation of merchandise, the company will close its 18 outlet stores. To the Editor: Thank you very much for our mention in the Who’s Opening & Where section of Dealmakers. I have already received a great response. I look forward to speaking with you soon. Josh Podell Sources of Financing Marabella Commercial Finance (760-741-0800) recently arranged first mortgages of $537,000, $526,400 and $415,000 for three NNN single tenant CSK Auto stores. Heitman Finance Group (312-855-5700) recently arranged $11.3 million in four separate first mortgage loans for the acquisition of three Walgreen’s Drug Stores and one Rite Aid Drug Store. The Walgreen’s stores are located in Novi, MI; Ellisville, MO and Bolingbrook, IL. The Rite Aid store is located in Youngstown, OH. Cooper-Horowitz, Inc. (212-986-8400) recently arranged a $7 million loan for a 55,801 sq.ft. Giant Food Store in Rehoboth Beach, DE; an $8.4 million loan for a 55,801 sq.ft. Giant Food Store in Baltimore, MD and a $5.4 million loan for a 58,953 sq.ft. Winn-Dixie store in Prairieville, LA. GCP Capital Group LLC (516-487-5900) recently arranged construction financing in the amount of $2.435 million for an 85,000 sq.ft. Kohl’s Department Store in Mechanicsburg, PA. Finova Realty Capital Inc. (877-825-4813) recently provided five-year bridge financing of $25.056 million for the acquisition of 358,000 sq.ft. of non-anchored space at Lincoln Mall, a one million sq.ft. regional mall in Chicago, IL. The LIBOR-based, interest-only financing was underwritten at 85% loan-to-value. In addition to the acquisition financing, the loan was structured to include capital for tenant improvements and lease commissions on the existing vacant space. The company recently provided a loan of $17.2 million to refinance Seminole Mall in Seminole, FL. The 427,546 sq.ft. project is anchored by Kmart and AMC Theaters. The 75% loan-to-value note was funded with a 30-year amortization schedule for a 10-year, fixed-rate term. The company recently funded a loan of $61.726 million to refinance Sunnyvale Town Center, a 712,000 sq.ft. project in Sunnyvale, CA. The financing was structured in the form of a three-year $25 million bridge loan used to pay off acquisition and mezzanine financing and a three-year $36 million construction loan to be used for a 250,000 sq.ft. expansion. The company also recently funded an $8.75 million loan to refinance Athens West Shopping Center in Athens, GA. The 175,000 sq.ft. project is anchored by Goody’s, Ingle’s Markets and Office Depot. The loan was structured with a 77% loan-to-value, 30-year amortization and a 1.23 debt service coverage ratio. L.J. Melody & Company (713-787-1900) recently arranged fixed-rate financing in the amount of $8.4 million for Fayetteville Towne Center in Fayetteville, GA. Jackson National Life Insurance Company provided the funding on behalf of the borrower, Retail Planning Corporation. The project, which was completed in May, is anchored by Kroger, Blockbuster Video, Hallmark and Mail Boxes Etc. The company also arranged fixed-rate financing in the amount of $16.25 million for Hamilton Village Shopping Center in Chattanooga, TN. Jackson National Life Insurance provided the funding on behalf of the borrower CNM Hamilton, LP. The 425,000 sq.ft. project is anchored by Wal*Mart, Stein Mart, OfficeMax, Books-A-Million and Waccamaw. Space Place California Laguna Niguel- Laguna Heights Marketplace is anchored by Lucky Supermarket, Payless Drug Store, Blockbuster Video, Crown Hardware, Tutor Time and McDonald’s. The 150,000 sq.ft. project has space available for lease. Demographics include a three-mile population of 85,372 earning $73,007 as the average household income. For details, contact Shea Business Properties at (909-598-9000), Fax (869-0868). Colorado Aurora- Hoffman Heights Center is anchored by Ace
Hardware, Brunswick Recreation Center and Video Buffs. The 240,000 sq.ft.
project has spaces of 672 sq.ft., 1,200 sq.ft. and 4,800 sq.ft. available for lease.
Demographics include a three-mile population of 150,000 earning $45,000 as the average
income. Florida Coral Springs- Outparcel spaces of 5,000 sq.ft. and 7,000
sq.ft. are available for lease at a new shopping center at the intersection of S.R. #7/441
and Wiles Road. The project will be anchored by Walgreens, Burger King, Pointe Bank
and Amoco. In-line space is also available for lease in a 22,000 sq.ft. strip
center being developed. Illinois Schaumburg- Kingsport Plaza has spaces from 1,000 sq.ft.
to 8,000 sq.ft. available for lease. Demographics include a five-mile population of
268,943 earning $74,000 as the average income. New Jersey Cherry Hill- Super G Plaza is anchored by Super G. The
121,618 sq.ft. project has spaces of 2,400 sq.ft., 3,066 sq.ft., 3,600 sq.ft., 3,907
sq.ft., 4,410 sq.ft. and 9,582 sq.ft. available for lease. Demographics include a
three-mile population of 100,568 earning $75,752 as the average income. In Westmont-
Westmont Plaza is anchored by SuperFresh and Jo-Ann Fabrics. The
195,824 sq.ft. project has spaces of 2,000 sq.ft., 23,191 sq.ft. and 23,535 sq.ft.
available for lease. Demographics include a three-mile population of 138,823 earning
$44,870 as the average income. Texas Dallas- Preston Valley Shopping Center is anchored by FuncoLand,
BridesMart, Ascot Tuxedos and Chili’s Grill & Bar. The 89,919 sq.ft.
project has spaces of 3,555 sq.ft., 5,000 sq.ft. and 10,285 sq.ft. available for lease.
Demographics include a three-mile population of 114,495 earning $86,374 as the average
household income. |