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Issue Number 34
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The Dealmakers Issue Number 34 for the week of September 17, 1999. My Way by Ted Kraus Lately I’ve been traveling more than usual and revisiting numerous markets I haven’t been to in the last few years. Man, what a difference a couple of years make. There appears to be a new power center on every street corner, with one of its anchors being a 16 to 20-plex theater. Wal*Mart, Target, Kohl’s, Best Buy, Circuit City, Barnes ‘N Noble, Ross Stores and Lowe’s will be having major problems matching their growth in the next few years, because they’re all cannibalizing their own stores now by opening in these new centers that no matter what they rationalize overlap their existing stores. There doesn’t appear to be much meat left for them to continue their feeding frenzy. When the downturn comes, they’re in big trouble, even if you discount the impact of the Internet. The immediate problem appears to be the large vacancies caused either by relocations, the new batch of bankruptcies or older stores closed because they couldn’t cope with these "new" competitors. I came across one center anchored by Service Merchandise, Filene’s Basement, HomePlace and Loehmann’s. That poor owner has real problems. I think enclosed malls have bigger problems than strip centers. One 800,000 sq.ft. center I went into was undergoing an extensive renovation. The mall, 20+ years old, was the first in the market and did great. Then a competitor came in and took away some of the old mall’s sparkle. Five years later, another, newer and improved mall opened and left them as the "convenience" mall for shoppers. The developer is trying to rejuvenate the center (about six years too late) by renovating and making sweetheart deals with retailers. Some mall-oriented tenants have to expand, so they succumb, make the deal (usually a complete turnkey with an allowance for fixtures and a low rent), but quickly learn rent and allowance mean nothing if the customer isn’t shopping at the center. This owner, I have to give credit to, is trying. He’s putting in ma’s and pa’s and anyone who can fog up a mirror, but he doesn’t seem to care about quality or use. One store was a combination of religious books, conventional gifts, crafts, flower arrangements and photo enlargements, all in 1,000 sq.ft. In several of the older centers I came across, the owner was trying entertainment as the answer to the center’s rebirth. In one case, they put in the world’s worse looking laser tag game that not only turns off customers (who are usually teenagers and have absolutely no taste, so it’s really hard to have poor taste with them), but admission is priced so high, few would even go to it once. Others have leased space to "high end" family entertainment centers (who they provided lots of TI to) that are also failing because the operator has no experience, in addition to pricing themselves out of the market. While I’m in Philly for the ICSC dealmaking show, Ann will be in Vegas at FunExpo, another trade show for the family entertainment industry. It’s, in a way, the entertainment industry’s equivalent to our May convention. Most of the "who’s-who" in family entertainment will be there (The other big show for the entertainment industry is IAAPA, held in Atlanta, GA in November). While I’m sure the Dave & Buster’s of the world will be there, 1,000's of ma and pa’s who have been in the business for 20 years, not 20 weeks, will also be there and most will be looking for new locations (hint, hint). These operators run locations that are the poor man’s Dave & Buster’s. Instead of costing a family of four, $150 for a hamburger dinner and games at D&B’s, their operation costs $50 and to the kids in particular, they’re having as much fun. Of course, these operators don’t pay as much rent as D&B, but also don’t require as much TI. As most of our readers know, I use "My Way" to bitch about the stupidity I encounter in our industry. Well the other day I received the following letter, which makes me feel I’m not alone. I’m keeping the author’s name anonymous to "simplify matters," but I’m willing to bet this happens to many: "I have enjoyed reading your various articles in The Deal makers publication. Most of your brokerage stories, about developers, brokers and retailers are right on tract with today’s real estate environment and make you wonder how some of these people ever made any money. Reading your article in the last paragraph of the August 13, 1999, My
Way section reminded me of a transaction I tried to close on a small shopping center
property in an area with no growth potential. The owner, who we will call Frank (the only
people I have ever had trouble with in the real estate brokerage business have been named
Frank) listed a blank square foot strip for $1 million. Per my figures, based on a current
proforma and the current NOI, the property was worth only $600,000 to $650,000. I figured
I would take it and the owner would be realistic when he saw offers much lower. In the next few days another broker presented me an offer for $650,000 and said that they planned on tearing down the site and that by not having any leasing it would work to their advantage. I presented the offer and tried to plead with Frank that this was a fair deal based on the condition of the property and the fact that there were no leases and this was probably more than the land itself was worth. Frank said he would take $900,000 and to my surprise, the buyers agreed. It was at this point Frank said he would take the deal but would only pay a $24,000 total commission. I was totally against this, since our agreement was for six percent, but decided to let the cooperating broker make the call since it was his clients buying the property. He said let’s take four percent, or $36,000, and get the deal done. I called Frank, he said this was not acceptable and to tell the other broker that was final. I knew he was already ripping us off by two percent and told the other broker we were already giving him a great deal. The other broker agreed since we were only talking about $11,000 difference out of a $900,000 deal. I again went to Frank and tried to explain what a good deal this was and would he reconsider. Frank then decided to call the buyer (14 times to be exact) on his own over the next several days and work around us. The buyer was loyal to his agent and would not respond. This did show that Frank was willing to sell, but let $11,000 worth of brokerage fees kill the deal. I told the broker that I was very upset and that I was going to irritate my client so much that he would go directly to him and try and work around me. After calling him and telling him what I felt, he was indeed so mad at me that he called the other broker. He did not realize I had already worked out a deal with the other broker to pay me my portion of the deal, should he get it worked out. The other broker got along well with Frank for the first few conversations, but when it came down to the commission, he still did not want to pay the $11,000 difference. The other broker tried for about a month to no avail and phoned me and said what I had said to him about a month earlier ( to go [adjective] himself). Can you guess what profession Frank was? A doctor. The deal never did materialize and the property still sits there and has gone through two new brokers. I would be willing to bet no one ever offers $900,000 again. I thought you would get a kick out of this true brokerage deal scenario. Please keep writing your articles, they are very entertaining. Also, Frank still thinks I am the craziest broker in town." Retailers Expanding in The PA, NJ & DE Markets Wegmans Food Markets Inc. trades as Wegmans Food Markets at
59 locations in NJ, NY and PA. The supermarkets occupy spaces of 100,000 sq.ft. to 120,000
sq.ft. in power and strip centers. Plans call for the opening of four stores in the coming
18 months. Expansion will take place in the existing markets. Preferred demographics
include a population of 50,000 within three miles earning $75,000 as the average income.
Leases running 20 years, with six options running five years each, are typical. Rebel Valley Cigar Superstores operates five locations in DE and
PA. The stores, selling cigars and tobacco products, occupy spaces of 2,500 sq.ft. to
3,500 sq.ft. in freestanding facilities. Preferred co-tenants include Home Depot,
Lowe’s, Target, Wal*Mart, auto parts stores and regional malls. Plans call for
five openings in the coming 18 months. Expansion will take place in the Philadelphia, PA
metropolitan market. Preferred demographics include a population of 50,000 within five
miles earning $45,000 as the average income. Leases running five years are typical and the
company prefers former bank branches, gas stations, convenience store and fast food
restaurants with ample parking and high traffic counts. Today’s Man Inc. trades as Today’s Man at 29
locations in CT, MD, NJ, NY, PA and VA. The men’s apparel stores occupy spaces of
18,000 sq.ft. to 20,000 sq.ft. in downtown store fronts, freestanding facilities, power
centers and regional malls. Plans call for as many a eight openings in the coming 18
months. Expansion will take place in the existing markets. Preferred demographics include
a population of 300,000 within five miles earning between $45,000 and $65,000 as the
average income. Leases running 10 years, with three options running five years each, are
typical. Somerset Tire Service, Inc. does business as STS Tire and Auto
Center at 66 locations in NJ, NY and PA. The automotive service centers, which also
sell tires, occupy spaces of 5,600 sq.ft. in freestanding facilities. Plans call for 12
openings in the coming 18 months. Expansion will take place in Eastern PA; Bergen County,
NJ and Long Island, NY. Preferred demographics include a population of 10,000 within one
mile earning $50,000 as the average income. Leases running 10 years are typical. Adventure Dining Inc. trades as Kahunaville at five
locations in DE, MA, NY, OH and PA. The tropical-themed restaurants, which also feature an
arcade and retail store, occupy spaces of 30,000 sq.ft. to 40,000 sq.ft. in regional
malls. Growth opportunities are sought in NJ, NY, OH and PA. Mark Group trades as Mark Fore & Strike at 18 locations
in FL, GA, MA, NJ, NY and RI. The stores, selling men’s and women’s classic
apparel for 40 to 60 year-olds, occupy spaces of 3,000 sq.ft. in freestanding facilities,
outlet, specialty and strip centers. Growth opportunities are sought in CA, FL, MA, NJ, NY
and the Mid-Atlantic region. TOL Franchise Group trades as Top Of The Line Fragrances at
five locations in FL, NJ, PA and TN. The stores, selling cosmetics and fragrances, occupy
spaces of 700 sq.ft. to 1,200 sq.ft. in regional malls, outlet and power centers. Plans
call for three openings in the coming 18 months. Expansion will take place in FL, NJ and
PA. Leases running 10 years are typical and the company is franchising. Burlington Brands operates eight locations in AL, FL, MO, NV, NC,
PA, SC and TN. The stores, selling irregular men’s and women’s apparel, occupy
spaces of 5,000 sq.ft. in outlet centers. Plans call for one opening in the coming 18
months. Expansion will take place in PA. City Look Menswear operates six locations in NJ and NY. The
men’s apparel stores occupy spaces of 1,500 sq.ft. to 2,000 sq.ft. in downtown store
fronts and regional malls. Growth opportunities are sought in NJ. Quik Chek Food Stores, Inc. trades as Quik Chek Food Stores
at 105 locations in NJ. The convenience stores, which also sell gasoline, occupy spaces of
4,000 sq.ft. to 5,000 sq.ft. in freestanding facilities. Plans call for 12 openings 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. Wakefern Food Corp. trades as ShopRite at 189 locations in
CT, DE, NJ, NY and PA. The supermarkets occupy spaces of 60,000 sq.ft. to 79,000 sq.ft. in
downtown store fronts, freestanding facilities, power and strip centers. Preferred
co-tenants include department stores and home improvement retailers. Growth opportunities
are sought in the existing markets. Preferred demographics include a population of 40,000
to 60,000 within three to five miles earning at least $20,000 as the average income.
Leases running 20 years are typical. John Harvard’s Brew House LLC trades as John Harvard’s
Brew House at 15 locations in DE, GA, MA, NY, OH, PA, RI and Washington, D.C. The
restaurants and micro breweries occupy spaces of 8,000 sq.ft. to 9,000 sq.ft. in
freestanding facilities. Plans call for as many as 10 openings in the coming 18 months.
Expansion will take place in CT, MD, MA, NJ, NY, PA, RI, VA and Washington, D.C. Preferred
demographics include a population of one million within five miles earning $50,000 as the
average income. Pennsylvania Liquor Control Board trades as Wine & Spirits
Shoppe at 649 locations in PA. The stores, selling alcoholic beverages, occupy spaces
of 2,800 sq.ft. in downtown store fronts, regional malls, power, specialty and strip
centers. Plans call for six openings in the coming 18 months. Expansion will take place in
PA. Leases running five years, with options, are typical. Zheng’s Family Restaurant operates nine locations in GA, IN,
MD, MI, NH, OH, PA and VA. The Chinese restaurants occupy spaces of 5,000 sq.ft. to 10,000
sq.ft. in freestanding facilities, power and strip centers. Preferred co-tenants include Kmart,
Marshalls, Sears, Target, multi-plex cinemas and supermarkets. Growth opportunities
are sought in MD, MI, NJ, NY, OH, PA and VA. Preferred demographics include a population
of 350,000 within five miles earning at least $50,000 as the average income. Leases
running 10 years, with options, are typical. The Robert Organization trades as Lucille Roberts Health Clubs at more than 60 locations in NJ, NY and PA. The women’s fitness centers occupy spaces of 6,000 sq.ft. to 10,000 sq.ft. in downtown store fronts, specialty and strip centers. Plans call for as many as 25 openings in the coming 18 months. Expansion will take place in CT, DE, NJ, NY and PA. Preferred demographics include a population of 150,000 within five miles. Leases running 15 years are typical. The company also trades as Lucille Roberts Express at 15
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. Preferred demographics include a population of
100,000 within four miles. Leases running 15 years are typical. The company is licensing
this concept. The Book Market, Inc. trades as Book Market at more than 50
locations nationwide. The book stores, which operate on a temporary basis, occupy spaces
of 7,000 sq.ft. to 30,000 sq.ft. in freestanding facilities, regional malls, outlet, power
and strip centers. Plans call for 100 openings in the coming 18 months. Expansion will
take place nationwide. Preferred demographics include a population of 100,000 within five
miles earning $40,000 as the average income. Leases running three to six months are
typical. New Construction The Woodmont Corporation, in association with Creative Real
Estate and Colony Holding Company, recently broke ground on Cranberry
Commons in Cranberry Township, PA. The 552,000 sq.ft. project, being developed along
State Highway 228, will be anchored a 135,197 sq.ft. Lowe’s Home Improvement
Warehouse, a 124,162 sq.ft. Target store, an 86,500 sq.ft. Kohl’s
Department Store, a 30,000 sq.ft. T.J. Maxx, a 23,884 sq.ft. Staples
store and a 19,235 sq.ft. PetsMart store. An additional 50,000 sq.ft. of specialty
store space will also be developed. The center is expected to open during Summer 2000. R.J. Waters & Associates, Inc. broke ground in May on the first
phase of the Shoppes at Kissel Village Shopping Center in Warwick Township,
Lancaster County, PA. The 136,000 sq.ft. project will be anchored by Giant Food and
CVS Pharmacy. Other tenants will include Blockbuster Video, Radio Shack,
McDonald’s, GNC, Frankford Cleaners, The Framery Etc. and a Chinese buffet
restaurant. The center, which is scheduled to open during April 2000, is being constructed
by Ames Construction and B.R. Kreider & Son, Inc. Construction financing
is being supplied by Wilmington Trust of Pennsylvania and Fulton Bank. The Pennsylvania Real Estate Investment Trust, plans to acquire 50
acres of the 86-acre Frankford Arsenal in the Bridesburg section of Philadelphia,
PA for the development of a 500,000 sq.ft. power center. The acquisition price was not
disclosed and no retail tenants have signed leases for the project. The arsenal dates to
1816 and turned out guns and ammunition until the Defense Department closed it in 1977.
Developer Mark Hankin bought the property from the Defense Department in 1983 with plans
to redevelop the 167 buildings into more than two million sq.ft. of office and industrial
space. Hankin plans to use the money from the sale to continue rehabbing the southern
portion of the property. The northern section of the property PREIT is acquiring is made
up of older warehouses that will be razed. Companies operating in the northern part will
be relocated to the southern section, which has about 600,000 sq.ft. of space that is only
50% occupied. However, before any development can begin the zoning on the property needs
to be changed from industrial to retail. The Pederson Group plans to break ground during January on Anthem
Marketplace in Anthem, AZ. The $12 million, 125,000 sq.ft. project will be anchored by
a 55,000 sq.ft. Safeway grocery store. The balance of the space is expected to be
occupied by a video store, dry cleaners, bank and other neighborhood stores. Space for
four outparcels, expected to be occupied by restaurants, will also be developed. The
shopping center will be part of a 5,800-acre master-planned community that broke ground
during March. Approximately 40 families live in Athem now, but more than 1,000 homes are
expected to be occupied by the time Anthem Marketplace opens in July 2000. Marinita Development Co. recently broke ground on a 146,865 sq.ft.
shopping center on 14.5 acres of land in Bermuda Dunes, CA. The Mediterranean-style
project will be anchored by a 58,595 sq.ft. Ralphs Marketplace and a 13,905 sq.ft. Walgreen’s
drug store. A Fall 2000 opening is planned. Watkins Associated Developers is planning to develop a 102,350
sq.ft. shopping center at the intersection of Merritt Island Parkway and Courtenay Parkway
in Merritt Island, FL. The project will be anchored by a 51,420 sq.ft. Publix
Supermarket and a 16,900 sq.ft. T.J. Maxx store. Demographics include a trade area
population of 13,998 earning $54,995 as the average household income. A Summer 2000
opening is planned. Courtelis Company plans to develop Granada Shoppes in
Naples, FL. The 300,000 sq.ft. Mediterranean-themed project, located at the southeast
corner of Immokalee Road and Tamiami Trail, will include space for eight anchor stores
ranging in size from 7,000 sq.ft. to 35,000 sq.ft. set amidst large lakes, lush
landscaping and pedestrian paths. The development will also include two Class
"A" office buildings with a total of 90,000 sq.ft. Demographics include a trade
area population of approximately 285,000 earning $66,615 as the average household income. Craig Realty Group plans to break ground in February 2000 on Cabazon
Co. Stores in Cabazon, CA. The 65,000 sq.ft. factory outlet center will have 25
tenants including Reebok, Adidas and Greg Norman Collection. The center,
which will be developed just east of the 473,000 sq.ft. Desert Hills Premium Outlets,
will have an upscale "Beverly Hills look" with a domed tower, detailed cornices
and colors similar to those at Desert Hills. The two outlet centers will be tied together
by a walkway that will encourage shopping at both developments. The $4 million Cabazon Co.
Stores project is expected to open during October 2000. The lead partner of Craig Realty
Group, Steve Craig, was also the development partner of Desert Hills in 1990. Craig left
the group, Ginsburg Craig, when it merged with Chelsea GCA Realty Inc. which
still owns Desert Hills. Mergers & Acquisitions Nevada Bob’s Canada (403-294-0600) plans to acquire Las Vegas, NV-based Nevada Bob’s Pro Shop, which sought bankruptcy protection in March. The Canadian company will buy it out of bankruptcy as approved by the bankruptcy court. The new company, Nevada Bob’s Golf, will comprise 247 stores, including 159 franchise locations, with expected annual revenues of $250 million. The company will maintain corporate headquarters in Calgary, Alberta. Nevada Bob’s Canada is also acquiring GDH International, parent of the Alien Sports golf line and several smaller brands. GDH will maintain its headquarters, in Arlington, TX and will maintain manufacturing and distribution operations for Nevada Bob’s Golf. Shareholders of both Nevada Bob’s Pro Shop and GDH have approved the merger. Approximately 90% of GDH and Nevada Bob’s Pro Shop shareholders have ownership in both companies. Once the merger is completed, Nevada Bob’s Canada will issue 34.5 million shares, with warrants for an additional 12.7 million shares, accounting for 40% of the new company. Owners of Nevada Bob’s Pro Shop and GDH will hold the remaining shares. CSK Auto Corporation (602-265-9200) recently announced that its wholly-owned subsidiary, CSK Auto, Inc., has entered into a definitive agreement with PACCAR Inc. to acquire PACCAR’s wholly-owned subsidiary which operates 192 stores under the trade names of Grand Auto Supply and Al’s Auto Supply in AK, CA, ID, NV, OR and WA. These stores produced sales of approximately $225 million in the past year. CSK Auto will pay approximately $143.2 million in cash for the stock of PACCAR’s subsidiary. CSK will fund the purchase through its senior credit facility, which will be increased. CSK currently operates 926 stores in 17 states trading as Checker, Schuck’s, Kragen and Big Wheel/Rossi. The acquisition of the 192 stores solidifies CSK’s position as the leading retailer of automotive aftermarket parts and accessories in the Western U.S. The closing is expected to take place next month. The Kroger Co. (513-762-4000) recently announced that the Federal Trade Commission has approved its acquisition of most of the assets of the John C. Groub Company, Inc., a family-owned retailer that operates 30 supermarkets in southern IN primarily under the banner Jay C Stores. Under terms approved by the FTC, two Groub stores, a Foods Plus supermarket and a Jay C Store, both in Columbus, IN, will be sold to Roundy’s, Inc. The Kroger store in Madison, IN, also has been purchased by Roundy’s. Nearly all of the 28 stores acquired by Kroger will continue to operate under their existing names of Jay C Stores, Foods Plus and Ruler. Kroger currently operates 2,206 grocery stores, 798 convenience stores, 380 fine jewelry stores and 43 food processing facilities. www.kroger.com Rite Aid Corp. (717-761-2633) is rumored to be either merging or downsizing its chain after a year of disappointing earnings. Some analysts said that the chain’s troubles came about from over-aggressive growth. In a cryptic statement, the nation’s third largest pharmacy chain said it is discussing "possible corporate transactions that, if consummated, would be material." In March, the company reported a 39% drop in fourth quarter earnings that it attributed to a store opening spree. The company currently operates more than 4,000 stores in 30 states. The merger rumors have Rite Aid merging with Walgreens, CVS and Eckerd as well as Wal*Mart, Sears or Safeway. However, such mergers would face regulatory scrutiny and are less likely to happen. Analysts think that instead, the company will sell several hundred of its stores on the West Coast, particularly the Thrifty-Payless stores it acquired for $2.5 billion in 1996, because it has had a hard time adjusting to the typical pharmacy format on the west coast, which differs from the east coast. Acme Markets (540-988-2561) recently acquired a Lowe’s Foods store in Spring Lake, NC. The store will become Acme’s first in the state of NC. The company plans to take possession of the store late this month and begin a remodeling campaign. Boston Chicken, Inc. (303-216-5172), its senior lenders and Boston Market Acquisition Company recently discontinued negotiations for BMAC’s purchase of certain assets of the company. The company and its senior lenders had been negotiating with BMAC on the terms of a final agreement, the details of which are confidential. The company disclosed BMAC’s bid to purchase the company for approximately $140 million last month. Boston Chicken is currently operating under Chapter 11 protection and is operating 862 restaurants in 33 states. www.boston-market.com Mom And Pop Tenants Getting Lost? by Alan Alexander, SCSM, CPM The shopping center industry is flourishing, vacancies are down, rents
are up and everyone is happy, at least for the moment. After the last credit crunch and
economic downturn, financing became more difficult and lenders were more demanding in
pre-conditions for providing the monies for the new shopping centers, and rightly so. One only has to tour three or four malls in a given day and then at the end of the day try to reflect on which was which. While most of our malls and shopping centers are attractive and well maintained, the tenant mix for many of the centers is almost identical. We see the same chains, with the same store fronts and the same merchandise, displayed in the same way. There is little to distinguish one from the other. This is where the mom and pop tenant plays an important role for the shopping center. Over the years we have been privileged to work with many excellent mom and pop tenants and have learned from their individuality. A few years ago we did a survey within the merchants of one of the very large centers that we managed to determine where the maximum productivity came from. With rare exception, the good mom and pop tenants out produced the chain stores in terms of sales per square foot. The good mom and pop tenant was able, and willing, to react faster to trends in their field, more likely to work on window displays that they felt attracted the local customer and very aware of what was going on in the mall or center and making sure they were up to those standards, and in many cases ahead of the pack. On the negative side, the poor mom and pop tenant creates problems for all of them. Quite often they have no business plan, they are enamored with the "American Dream: of having their own business" with little understanding of how difficult and demanding retail is. They are often under capitalized and most often quite opinionated in their ignorance. The distinction between the good and poor mom and pop tenant is fairly easy to evaluate, and this author would agree, well worth the time and effort. Generally we evaluate tenants on two different sets of criteria. The first, and most important, is their ability as a merchant. The second is their financial stability which is shown by both credit and net worth. A few years ago we talked with an independent jeweler for a small specialty center. He did custom jewelry in the window of this shop as well as selling standard items. He was always excited when he talked about his business and obviously loved making jewelry. All was going well with the interview until we arrived at the financial information. Unfortunately, he had been through some tough times and had a very weak financial statement, but very good credit. We decided to take a chance on him for two reasons. The first and most important reason was his obvious interest and excitement about his business. The second was that we were unable, up to that time, to find another jeweler that was satisfactory for our location. A lease was completed, the tenant moved in and we have never been sorry. In the poor sales months he sometimes had a hard time coming up with the rent on the due date, but over the years he has always paid his rent and been a credit to the center. Had we stayed with very strict financial guidelines, we would likely not have such a good tenant. In another situation, a neighborhood shopping center, we had a 1,200 sq.ft. store available. An individual came to us to open a sport shoe store. We were quite skeptical as we were within three miles of a major mall and he had no experience in shoe stores, but did have a good business background. We threw several obstacles in his way asking for a business plan, evidence that had the proper supplier contacts, a commitment to advertise at an aggressive level, evidence of considerable financial backing, etc. Each step of the way he complied and eventually removed all of the objections we had made. We completed the arrangements and he has been a very high producing tenant from day one. Additionally, he was helpful to other tenants in the center by showing them better ways to merchandise, advertise and operate their stores. There is little doubt that we can also come up with horror stories about trying to work with inexperienced or undercapitalized merchants only to see them fail and take some of our potential cash flow with them as well as diminish the image of our shopping center. I would submit that we must take some of the blame for the failure of these tenants. We are typically reluctant to take the time and put forth the effort to really understand their concept and to evaluate their business understanding to the extent that will be necessary to give them at least even odds of making the business a success. Additionally, once we have made the decision to allow them into our center we most often take little interest in their operation other than to collect their rent and be sure they obey the rules. We need to spend more time seeking out these truly unique merchants, spend more time working with them on their concepts and helping them to understand the nature and scope of the business they are about to embark on and, once we have taken them into the fold, we need to work with them and help them as they go about their daily operations. We should visit these merchants on a very regular basis, no less than once per month, to discuss how they are doing, to make suggestions that may be helpful and to provide them with the necessary support to improve their chances of success. These suggestions are not the basis for an altruistic, help your fellow man, do good program, but rather an approach to finding and retaining productive, unique retailers that will enhance the image of our shopping center, will assist them in running a successful business and will, eventually, contribute substantially to our bottom line. It is all too easy to pursue the national and regional chains and forget the mom and pop tenant in the process, and while we want and need the chains, we also want and need the individuality that is provided only by the "one of a kind," mom and pop tenant. Alan Alexander is a senior vice president of Woodmont Real Estate Services, Inc., 10870 East Cochise Avenue, Scottsdale, AZ 85259-4840; 480-860-2680, Fax 860-2681, e-mail aaacon@compuserve.com. Food Tenants Hungry for Sites Nationwide Successful Sub Restaurant, Inc. does business as Premo’s
Subs at two locations in FL. The sandwich restaurants occupy spaces of 1,200 sq.ft. in
downtown store fronts. Plans call for three openings in the coming 18 months. Expansion
will take place in southeastern FL. Leases running five years are typical. Philly Franchising Co. trades as Philly Connection at 82
locations in AL, FL, GA, KY, NC, SC and TN. The restaurants, specializing in cheesesteaks
and hoagies, occupy spaces of 1,400 sq.ft. to 2,800 sq.ft. in strip centers. Preferred
anchors include supermarkets. Plans call for 10 openings in the coming 18 months.
Expansion will take place in AL, FL, GA, NC, SC and TN. Preferred demographics include a
population of 30,000 within three miles earning $40,000 as the average income. Leases
running five years are typical and the company is franchising. Stuft Pizza Franchise Co. trades as Stuft Pizza at 32
locations in CA, OR and WA. The pizza and pasta restaurants occupy spaces of 800 sq.ft. to
6,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls, power and
strip centers. Plans call for 15 openings in the coming 18 months. Expansion will take
place in the Western region. Leases running 10 to 20 years are typical and the company is
franchising. American Hospitality Concepts Inc. trades as Tin Alley Grill,
Berkshire Grill and Ground Round at 160 locations in the Mid-Atlantic,
Midwestern and Northeastern regions. The restaurants occupy spaces of 5,000 sq.ft. to
6,000 sq.ft. in freestanding facilities. Plans call for 12 openings in the coming 18
months. Expansion will take place in the existing markets. Franchise Associates Inc. trades as Arby’s and Sbarro’s
at 52 locations in MN and WI. The fast food restaurants occupy spaces of 3,600 sq.ft. to
4,000 sq.ft. in freestanding facilities. Plans call for as many as four openings in the
coming 18 months. Expansion will take place in MN. Leases running 20 years are typical. HDOS Enterprises trades as Hot Dog on a Stick and Muscle
Beach Lemonade at 100 locations in AK, AZ, CA, FL, HI, MI, NV, NM, OH, OK, OR, TX, UT,
WA and WY. The fast food restaurants occupy spaces of 500 sq.ft. in downtown store fronts,
regional malls, entertainment, outlet and power centers. Preferred co-tenants include Nordstrom,
Bloomingdale’s, Lord & Taylor, Saks, Dillard’s, Robinson-May and Macy’s.
Plans call for as many as 30 openings in the coming 18 months. Expansion will take place
in FL, IL, IN, MI and OH. Preferred demographics include a population of 300,000 within 10
miles earning $40,000 as the average income. Leases running seven to ten years are
typical. IHOP Corp. trades as International House of Pancakes at 864
locations nationwide. The family restaurants occupy spaces of 5,000 sq.ft. in downtown
store fronts, freestanding facilities, regional malls, power and strip centers. Plans call
for 75 openings in the coming 18 months. Expansion will take place nationwide. Preferred
demographics include a population of 50,000 within three miles earning $35,000 as the
average income. Leases running 25 years are typical. Consolidated Products, Inc. does business as Steak-N-Shake
at 312 locations in AR, FL, GA, IL, IN, IA, KS, KY, MI, MO, MS, NC, OH, TN and WI. The
family restaurants occupy spaces of 3,880 sq.ft. in freestanding facilities. Plans call
for 90 openings in the coming 18 months. Expansion will take place in the Midwestern and
Southeastern regions. Preferred demographics include a population of 60,000 within five
miles earning $40,000 as the average household income. Leases running 18 years, with
options, are typical. Little Caesar Enterprises Inc. trades as Little Caesars Pizza
at 4,000 locations nationwide. The pizza restaurants occupy spaces of 1,200 sq.ft. to
1,400 sq.ft. in freestanding facilities and strip centers. Preferred anchors include drug
stores, supermarkets and video stores. Plans call for 300 openings in the coming 18
months. Expansion will take place nationwide. Preferred demographics include a population
of 30,000 within three miles earning $50,000 as the average income. Leases running five
years, with options, are typical and the company is franchising. Papa’s Pizza To Go Inc. trades as Papa’s Pizza To Go
at 90 locations in AL, GA, MS, NC, SC and TN. The restaurants, serving pizza, sandwiches,
salads, pasta and wings, occupy spaces of 1,400 sq.ft. to 2,000 sq.ft. in freestanding
facilities and strip centers. Preferred anchors include supermarkets and video stores.
Plans call for 12 openings in the coming 18 months. Expansion will take place in the
existing markets. Preferred demographics include a population of 12,000 within five miles
earning $35,000 as the average income. Leases running 10 years are typical and the company
is franchising. Race Rock International Inc. trades as Race Rock at two
locations in FL and NV. The racing themed restaurants occupy spaces of 20,000 sq.ft. to
30,000 sq.ft. in downtown store fronts, entertainment centers and freestanding facilities.
Growth opportunities are sought nationwide. Paradise Foods Inc. trades as Heavenly Ham at 178 locations
in AL, AR, AZ, FL, GA, LA, NC, SC, TN, VA, CO, CT, DE, ID, IL, IN, KS, KY, MD, MI, MN, MS,
MO, NJ, OH, PA, TX, WV, WI and UT. The stores, selling fresh baked ham and turkey, occupy
spaces of 2,000 sq.ft. to 2,500 sq.ft. in downtown store fronts, freestanding facilities,
power and strip centers. Plans call for 25 openings in the coming 18 months. Expansion
will take place nationwide. Preferred demographics include a population of 100,000 within
three miles earning $30,000 as the average income. Leases running five years are typical
and the company is franchising. Miami Subs, Inc. trades as Miami Subs USA at 190 locations
in FL, GA, NC, SC, TX, CT, NJ, NY, IL, TN, IN, PA, KS, KY, VA, MN and NE. The restaurants,
serving sandwiches, soups and salads, occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in
freestanding facilities, power and strip centers. Growth opportunities are sought
nationwide. Kohr Brothers trades as Kohr Brothers Frozen Custard at 40
locations in AZ, DE, FL, MA, MD, NJ, NY, PA, TX, VA and Washington, D.C. The frozen
dessert restaurants occupy spaces of 600 sq.ft. in freestanding facilities, entertainment
centers and regional malls. Preferred co-tenants include Disney, Gap and Lord
& Taylor. Plans call for 25 openings in the coming 18 months. Expansion will take
place nationwide. Leases running 10 years are typical and the company is franchising. Outback Steakhouses, Inc. trades as Outback Steakhouse at
519 locations nationwide. The steakhouses occupy spaces of 6,200 sq.ft. in freestanding
facilities, entertainment, power and strip centers. Plans call for 100 openings in the
coming 18 months. Expansion will take place nationwide. Leases running five years are
typical. Chinese Gourmet Express operates 56 locations nationwide. The
Chinese fast food restaurants occupy spaces of 700 sq.ft. to 800 sq.ft. in food courts at
regional malls. Plans call for at least 20 openings in the coming 18 months. Expansion
will take place nationwide. Leases running 10 years are typical and the company cites Panda
Express as competition. Bickfords Family Restaurants operates 65 locations in CT, MA, NH,
RI and VT. The family restaurants occupy spaces of 4,000 sq.ft. to 5,000 sq.ft. in
freestanding facilities. Plans call for eight openings in the coming 18 months. Expansion
will take place in the existing markets. Breadsmith Franchising Inc. trades as The Breadsmith at 50
locations in AZ, CA, CT, FL, IL, IN, MA, MI, MN, MO, NJ, OH, SD, VT, WA and WI. The
stores, selling breads baked from scratch daily, occupy spaces of 2,000 sq.ft. in
freestanding facilities and specialty centers. Plans call for five openings in the coming
18 months. Expansion will take place in the Midwestern and Northeastern regions. Preferred
demographics include a population of 100,000 within three miles earning $40,000 as the
average income. Leases running five years, with two options running five years each, are
typical and the company is franchising. Nach-O Fast operates 20 locations in AZ, CA, CO, GA, IL, KS, NE,
NY, UT, WA, WI and Washington, D.C. The Mexican snack food eateries occupy spaces of 150
sq.ft. to 1,000 sq.ft. in downtown store fronts and outlet centers. Plans call for 100
openings in the coming 18 months. Expansion will take place nationwide. Preferred
demographics include a population of 100,000 within three miles earning $25,000 as the
average income. Brinker International does business as Chili’s at 483
locations nationwide. The casual restaurants occupy spaces of 5,672 sq.ft. in freestanding
facilities. Growth opportunities are sought nationwide. Seattle’s Best Coffee operates 60 locations in CA, GA, IL, MD,
MA, OR, PA, VA and WA. The coffee cafes occupy spaces of 1,600 sq.ft. to 2,500 sq.ft. in
downtown store fronts, freestanding facilities, regional malls, power and strip centers.
Plans call for 20 openings in the coming 18 months. Expansion will take place nationwide.
Preferred demographics include a population of 60,000 within three miles earning at least
$60,000 as the average income. Leases running 10 years are typical and the company, which
is franchising, cites Starbucks as competition. Sources of Financing Banc of America Securities (704-388-1227) recently closed a $450 million Rule 144A transaction for Stater Bros. Holdings Inc., a privately-owned 112-unit supermarket chain in CA. In addition, Bank of America’s Southern California Consumer and Commercial Banking Group provided a new $75 million senior credit facility. In its largest sole lead-managed transaction to date, Banc of America Securities served as sole underwriter on the 10-3/4 percent Senior Notes due 2006 and sole dealer-manager on the tender offer related to substantially all of the company’s $165 million of 11 percent Senior Notes due 2001 and all of its $100 million of nine percent Senior Subordinated Notes due 2004. Parmann Commercial Funding (201-236-0500) recently provided a
$1.151 million non-recourse loan to fund a 31,718 sq.ft. strip center in Harlingen, TX.
The 10-year loan features a 25-year amortization. Simon Property Group, Inc. (317-685-7330) recently closed on a three year extension of its existing $1.25 billion unsecured corporate credit facility. The facility now matures in August 2002 and contains a one-year extension, at the company’s sole option. Chase Manhattan Bank and Union Bank of Switzerland were joint arranger and joint book manager. Other co-arrangers included: JP Morgan, Bank of America, Bank One and Dresdner Bank, while the senior managing agents included: Fleet Bank, Hypo Vereinsbank, Commerzbank and Citibank. www.simon.com Lehman Brothers (212-528-3142) recently provided $19.3 million of fixed-rate financing to Forest Plaza Associates for its purchase of Forest Plaza Shopping Center in Staten Island, NY. The 165,158 sq.ft. project is anchored by A&P Supermarket, CVS and Jack LaLanne Fitness Center. The financing was arranged by Holliday Fenoglio Fowler. L.J. Melody & Company (713-787-1900) recently arranged fixed-rate financing in the amount of $14.5 million for Sam’s Wholesale Club in GA. New York Life provided the funding on behalf of the borrower, Herndon Clairmont, LLC. New World Coffee-Manhattan Bagel Inc. (732-544-0155) recently completed a $15 million senior debt financing with BankBoston, NA. Proceeds will be utilized to repay the BET Associates, L.P. senior debt; to repurchase the Manhattan Bagel Company Unsecured Creditors Trust note at an $850,000 discount; to partially finance the Chesapeake Bagel Bakery acquisition; as well as for working capital and general corporate purposes. Under the new financing, BankBoston will provide a $12 million term loan and a $3 million revolving credit line. Who’s Opening & Where The Book Market (423-588-8187) recently opened a store at a former Future Shop location in Eugene, OR. The Book Market has made a deal with Future Shop to occupy all 23 of its shuttered stores in the Northwestern region. The Book Market signed three month leases, with month-to-month options. CVS (401-765-1500) plans to open a 10,300 sq.ft. drug store in Phenix City, AL during November. When the company opens the new store, three of its four other stores in Phenix City will be closed. In other news, the company plans to spend $20 million this fall to change name and convert the 233 Arbor Drug stores its acquired in February 1998 to the CVS name and concept. Chicken Kitchen Corporation (305-867-4433) recently signed a franchise agreement with Rumbee Restaurants, LLC that calls for the opening of six restaurants in the South FL market. Currently, the company operates six restaurants in the Miami, FL area. www.chickenkitchen.com La-Z-Boy Inc. (313-242-1444), which operates 232 La-Z-Boy Furniture Gallery stores nationwide, plans to open 30 stores annually. The stores average 14,500 sq.ft. and are independently owned and operated. Ultimate Electronics, Inc. (303-412-2500) plans to enter the Phoenix, AZ market with as many as 10 stores in the coming three years with the first five stores opening next year. The stores will range in size from 30,000 sq.ft. to 42,000 sq.ft. The company is also planning to open a 30,000 sq.ft. to 35,000 sq.ft. store in Davenport, IA before the end of the year. The company currently operates 30 stores trading as Ultimate Electronics, Audio King and SoundTrack in CO, MN, SD, ID, IA, NM, NV, OK and UT. www.ultimateelectronics.com Weis Markets (717-286-4571) plans to develop a 65,000 sq.ft. supermarket as part of the Paxton Towne Centre in Harrisburg, PA. The store is expected to open during Summer 2000. The company recently opened a 45,600 sq.ft. Mr. Z’s superstore in Tannersville, PA at the site of a former Penn Traffic store it acquired earlier this year. These projects are part of the company’s overall expansion program, its most ambitious in its 87-year history. Since the program began in 1995, the company has built or acquired 30 superstores and remodeled or expanded 48 others. Over the next 18 months, the company plans to invest $173.6 million for the construction of 17 superstores and the expansion or remodel of 18 others. Currently, the company operates 161 stores in MD, NJ, NY, PA, VA and WV. Steak-Out Franchising (770-493-6110) recently opened a franchised restaurant through S3 LLC at Marina Square in Denver, CO. It is the chain’s farthest west location in its 100-unit chain. S3 LLC plans to open three more Denver-area restaurants by the end of the year and have 25 open within the coming four years. The first location is located near the Denver Tech Center and does a majority of business during lunch. Prior to opening the restaurant, the employees distributed 1,000 CD-Roms to the nearby office buildings. The CD-Roms contain a menu, order form and a fax option to send orders directly to the restaurant. Within a month, the restaurant is planning on having a mobile unit that can cook orders for large parties on site. Priceless Kids (518-786-9038), which operates 20 children’s apparel stores in MA and NY, plans to open a store at Vix Plaza in Williamsville, NY, its first in the Buffalo, NY market. Additional stores are planned for Hamburg and Amherst-Tonawanda, NY. The stores average 8,000 sq.ft. and offer a variety of name-brand clothing and accessories, ranging from infant layette items to teen-sized apparel at prices that are 40% to 70% off traditional retail prices. Borders (734-477-1100) plans to open a 23,595 sq.ft. store in Simsbury, CT during Fall; a 23,950 sq.ft. store in Nashville, TN next year; a 26,065 sq.ft. store in Costa Mesa, CA during Fall; a 23,065 sq.ft. store in Santa Cruz, CA during February 2000 and a 25,000 sq.ft. store in Modesto, CA this month. Recently, the company opened stores in Marietta, GA; Fox Point, WI; Santa Rosa, CA; Northglenn, CO; Austell, GA and Tallahassee, FL. www.borders.com Safeway (925-467-3000) plans to open a 55,000 sq.ft. supermarket at Pueblo West Marketplace in Pueblo, CO. Kirkland’s (901-668-2444) recently opened a store at Towne East Square in Wichita, KS. The company currently operates 220 stores, primarily in the Southeastern region, and plans to open 20 stores annually including a store in Topeka, KS later this year. Sandella’s Sandwiches & Pizzas (888-544-9984) recently opened franchised restaurants in Tempe, AZ; University Park, TX; Ocean City, MD and San Antonio, TX. The company is planning to open franchised units in Huntsville, AL; West Nyack, NY (two units at Palisades Mall); Bayshore, NY, Newark International Airport in Newark, NJ and in Addison Circle, TX. Additionally, there are nearly 500 units committed to development by area development representatives. The company anticipates operating 2,500 locations within 10 years. www.sandellas.com Sears (847-286-2500) recently opened a 92,000 sq.ft. department store at Lakeshore Mall in Sebring, FL. The store becomes the fifth anchor at the 501,000 sq.ft. project owned by CBL & Associates Properties, Inc. In other news, Sears has announced that it has decided against converting its 250 hardware stores nationwide to Orchard Hardware & Garden outlets after a test run in Columbus, OH flopped. The company found that customer preferred the Sears name and concept. The company has also changed the name of its stores in Columbus back to the Sears Hardware name. D’Amico & Partners, Inc. (612-374-1776) plans to open a D’Amico & Sons Cafe & Takeout restaurant at Bell Tower Shops in Ft. Myers, FL this month. The opening will be the company’s third restaurant in the Ft. Myers/Naples market. Overall, the company operates 12 locations and has been named one of the "10 great places to get take-out" by USA Today and dubbed a "hot new restaurant" by Bon Appetit magazine. The May Department Stores Company (314-342-6300) recently opened a 120,000 sq.ft. Lord & Taylor department store at The Mall of Georgia in Buford, GA, and a 120,000 sq.ft. store at Lynnhaven Mall in Virginia Beach, VA, its first in that market. Starbucks Coffee International (206-447-1575) and ESCO Korea Co. Ltd., a wholly owned subsidiary of the Shinsegae Department Store Co. Ltd., recently opened the first Starbucks location in Seoul, Republic of Korea. The opening marks the 12th international market that the company entered since 1996. OfficeMax, Inc. (216-921-6900) recently opened its first store, a 23,500 sq.ft. unit, in Sao Paulo, Brazil through a joint venture formed with MGDK & Associados. The believes that the Brazilian market can support up to an additional 50 stores and will also use its foothold in Brazil as a springboard into other South American countries. www.officemax.com Toys ‘R Us, Inc. (201-262-7800) plans to open a 62,263 sq.ft. Babies ‘R Us store at a former Service Merchandise location in Colorado Springs, CO before the end of the year. Home Depot (770-433-8211) plans to open a store at a planned 25-acre retail center on I-30 in Fort Worth, TX; a 105,7000 sq.ft. store in Atascadero, CA, its first in San Luis Obispo County and a store in Delray Beach, FL. All three stores are expected to open sometime next year. In addition, the company plans to expand its EXPO Design Centers concept with stores in Laguna Nigel, CA; Smithtown, NY; Union, NJ; West Bloomfield Hills, MI; Troy, MI; Alpharetta, GA; North Richland Hills, TX and Houston, TX. All of the stores are expected to be opened by February 2000. Another six stores are planned for 2000, but locations have yet to be announced. The company’s overall goal is to be operating 200 EXPO stores throughout North America by 2005. In other news, the company’s request to develop a store in White Bear Lake, MN was recently unanimously rejected by the White Bear Lake City Council. The council cited traffic concerns as the primary reason for the rejection. www.homedepot.com Best Buy Co., Inc. (612-995-7049) recently announced that it plans to enter the New York City metropolitan market with 12 stores during its upcoming fiscal year. The company is planning to open as many as 40 stores in the market over the next three years. The company has signed leases to open stores in Westbury, Bay Shore, West Nyack and Kingston, NY and in Woodbridge, NJ. The NY stores are among the 50 to 55 new stores the company will open nationwide in 2000. In many of the locations, the company will open using its new smaller format store of 30,000 sq.ft. In addition to the NY-area stores, the company is planning to open a store in Charlestown, WV next year. A specific location has not been selected yet. www.bestbuy.com Michaels Stores, Inc. (972-409-1300) plans to open a 20,000 sq.ft. store in Omaha, NE during Spring 2000. The store will be the company’s first in the Omaha market. Huddle House Inc. (404-377-5700) and Thomas & King recently signed a 10-year deal to develop 70 Huddle House restaurants in KY, OH and IN. Huddle House currently operates and franchises 330 restaurants in 12 states and Thomas & King manages more than 65 Applebee’s restaurants. Wal*Mart Stores (401-273-4000) plans to open a 238,244 sq.ft. Supercenter in Gaffney, SC during Summer 2000. Buyers & Sellers 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 market or regional locations and/or be candidates for redevelopment. All cash deals
are possible. 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. ARC Properties, Inc. is in the market to acquire freestanding
retail facilities located in major markets nationwide. Preferred properties should have
NNN leases with increases and at least 15 years remaining on the term. Prices from $1.5
million to $50 million will be considered. The company is also in the market to acquire
land for development. Pliskin Realty and Development, Inc. has the listing to sell a
20,000 sq.ft. shopping center in Lake Grove, NY. The company also has the listing to sell
a 12,000 sq.ft. former Woolworth store on Main Street in Hempstead, NY. The company is in
the market to acquire shopping centers, land and apartment buildings for its own
portfolio. Trammell Crow Co., representing Mobil Oil, is in the market to
acquire sites throughout eastern PA and NJ on which to locate Mobil gas stations with its
On The Run convenience store concept. NAI Terra Marketing has the listing to sell Brick Plaza in Brick
Township, NJ. The 404,000 sq.ft. project is anchored by A&P Supermarket, Barnes &
Noble, The Sports Authority, Nobody Beats the Wiz, Ethan Allen, Sony Theaters and
Applebee’s Restaurant. The asking price is $30 million. Greenebaum and Rose Associates, Inc. represents a cash
investor/developer in the market to acquire high quality/high return shopping centers,
mixed use projects and office buildings in the southcentral-southeastern PA, southern NJ,
DE, MD, VA and Washington, D.C. markets. Properties priced between $2 million and $12
million are preferred. Stafford Smith Commercial Realty has the listing to sell a 23,000
sq.ft. freestanding building fronting NJ Highway 35 in Eatontown, NJ. The site is located
one-half mile north of The Monmouth Mall, a 1.5 million sq.ft. enclosed mall. The property
has parking for 250 cars. Metro Commercial Real Estate, Inc. represented Target in its sale
of three acres of land adjacent to its store on the Black Horse Pike in Turnersville, NJ
to Scarborough Associates for the construction of a 23,500 sq.ft. OfficeMax store. First Washington Realty Trust Inc. recently acquired Newark
Shopping Center in Newark, DE for $11.7 million. The 183,000 sq.ft. project was acquired
from a private partnership and First Washington plans to reposition the center by
anchoring the property with a drug store or supermarket. Equity Properties brokered the sale of 1.5 acres of land on Route
202 in New Britain Township, PA to Goodman Properties for the development of a CVS Drug
store. The new CVS will be a freestanding building of 10,125 sq.ft. with a drive through. Collier Lanard & Axilbund represented American Stores Realty
Corporation in the sale of a 74,000 sq.ft. neighborhood shopping center in Medford, NJ to
Medford Center Associates, L.L.C. The project is anchored by CVS and First Union Bank. Arvida Realty represents a client in the market to acquire a NNN
investment property in FL, preferably in South FL or along the west coast of FL. Preferred
properties should be priced around $1 million. Sperry Van Ness represents a buyer in the market to acquire gas
stations and car wash sites in AZ, CA and NV. Preferred properties should be large
parcels, but existing locations will be considered. Childs Realty Group brokered the sale of Tinley Downes Shopping
Center in Tinley Park, IL. The 47,037 sq.ft. project is anchored by Walgreen’s. The
acquisition price was $5.325 million. SullivanHayes Companies has the listing to sell a 9.71 acre site in
Windsor, CT. The site, which is divisible, is located adjacent to Kmart, Super Stop &
Shop and Blockbuster Video. Demographics include a three-mile population of 22,282 earning
$69,125 as the average household income. The company also has the listing to sell a 3.23
acre site in Berlin, CT. The site is located near Hadfield’s Sport Shop, Webster
Square Shopping Center and a 12-screen Showcase Cinema. Demographics include a three-mile
population of 38,072 earning $61,660 as the average household income. The asking price is
$250,000 per acre. IPG Investment Properties has the listing to sell a two tenant
building anchored by Hollywood Video store in Tucson, AZ. The property is a corner pad in
a shopping center anchored by ABCO Supermarket, Walgreen’s, Burger King, Taco Bell
and Payless Shoes. The asking price is $1.448 million. Net Leased Investments has the listing to sell a triple net leased
36,000 sq.ft. Stein Mart store under construction in Tulsa, OK. No landlord
responsibilities. Ten percent rent increases every five years. The asking price is $2.47
million. Urstadt Biddle Properties, Inc. is in the market to acquire
neighborhood and community shopping centers in CT, NJ and NY, within a one and one-half
hours drive of Greenwich, CT. Preferred properties should have GLAs between 20,000 sq.ft.
and 200,000 sq.ft. and be anchored by a supermarket. Projects with vacancy rates as high
as 15% will be considered. Below market rents and expansion potential are a plus. The
company recently sold one its non-core properties in Mesa, AZ. The property, which is
triple net leased to Mervyn’s, was sold for $2.825 million. The Hutensky Group represented JL Associates, Limited Partnership
in the sale of Green Acres Plaza in Saginaw, MI to EIG Operating Partnership for $10.7
million. The 271,000 sq.ft. project is anchored by JC Penney, Fashion Bug, Farmer Jack
Supermarket, Rite Aid and Big Lots. Legg Mason Real Estate Services is in the market to acquire
supermarket anchored neighborhood and community shopping centers in the Eastern region.
Preferred projects should be anchored by national or regional chains and be priced between
$5 million and $25 million dollars. Investment Management Associates is in the market to acquire
shopping centers and land for the development of shopping centers. Preferred unanchored
projects should have GLAs between 35,000 sq.ft. and 40,000 sq.ft. and preferred anchored
project should have GLAs of 100,000 sq.ft. and be anchored by a supermarket. All centers
or acreage must be on corners of major through streets. The company will considering
purchasing larger centers as well. Falcon Development is in the market to acquire commercial
outparcels to retail centers for retail store development. Preferred parcels should be .5
acres to two acres, be an outparcel to a major mall, supermarket-anchored shopping center
or power center, and have high traffic volume. Grubb & Ellis of Florida has the listing to sell a 10-acre site
in Naples, FL. The site is approved for 100,000 sq.ft. of retail and grocery store space.
The site needs to be cleared and filled. The asking price is $2 million. The company also
has the listing to sell a 35-acre site on FL’s west coast. The site has I-35
frontage. Permits and approvals for 200,000 sq.ft. of buildable space have expired, but
can be re-permitted. Bankruptcy News Filene’s Basement Corp. (617-348-7100) recently filed a voluntary petition with the United States Bankruptcy Court in Boston, MA seeking relief under Chapter 11. The company cited a lack of trade support and interruption in inventory deliveries as a primary factor for the filing. Most of the company’s vendors had stopping shipping products because they feared a bankruptcy filing. During the reorganization process the company plans to continue to operate its business, which includes both Filene’s Basement and Aisle 3 stores. The company announced that it has secured a commitment for $135 million in DIP financing from General Electric Capital Corporation and Paragon Capital LLC. The company believes that this financing package will provide sufficient funding to normalize inventory levels and ensure a timely flow of merchandise throughout its reorganization process. Without court approval of the financing, vendors would not resume shipping merchandise. Prior to the filing, the company began implementing strategies to improve merchandising, operations and enhance financial performance, including a reduction of headquarters staff by 15%. The company’s Aisle 3 weekend only concept, which currently operates four locations, is showing strong signs of success and the company plans to open four additional stores in the coming two months. The company also operates 51 traditional Filene’s Basement stores, primarily in the Northeast and Midwest. Three D (714-662-0818) plans to liquidate its chain after failing to climb out of bankruptcy. At one time the company operated 22 stores trading as Three D Bed and Bath in CA and CT and Linens Plus in AZ. The company began selling stores in July and has liquidated seven locations so far. The remaining 15 will also be liquidated as soon as possible. The liquidation comes 13 months after the chain filed for protection saying that its stores would operate as usual. However, the company continued to lose money because of the intense competition in the linens segment. Long John Silver’s (606-388-6300) won the approval of the U.S. Bankruptcy Court for its plan of reorganization paving the way for closing on the sale of the company to A&W Restaurants. A&W plans to pay $220 million for the company and at the sale closing, Long John Silver’s will be officially discharged of the bankruptcy protection it sought in June 1998 and it will be relieved of $300 million in debt. Under terms of the plan both companies will become wholly-owned subsidiaries of a new holding company, Yorkshire Global Restaurants. Both Long John Silver’s and A&W will maintain their current headquarters in Lexington, KY and Farmington Hills, MI, respectively. The newly formed alliance will operate more than 2,200 restaurants nationwide. www.ljsilvers.com JumboSports Inc. (813-886-9688) recently had the deadline for its reorganization plan extended until January 31, 2000 by the bankruptcy court. Since the company hired turnaround experts in April it has renamed the chain Sports & Recreation, although most stores still carry the JumboSports name. While the 42-unit chain still isn’t making money, average sales have risen and monthly sales declines have slowed from 22% in March to 13% in July. The company’s goal is to have October’s sales remain the same as last year’s. Both the company and its suppliers agree that the chain needs to show sales growth by year’s end before they will approve a reorganization plan that would eliminate the remaining debt and find a major investor. T. Eaton & Co. (416-349-7111) recently filed for protection under Canada’s Federal Bankruptcy and Insolvency Act. However, unlike the company’s 1997 filing, analysts do not expect to see the 130-year-old department store chain emerge intact. Nine stores in Quebec were closed temporarily as manufacturers moved to seize merchandise. A liquidation of inventory at Eaton’s 55 remaining stores began at the time of the filing. The company has less than a month to come up with a plan to repay its creditors. At the time of the filing, Eaton’s owed C$170 million to secured creditors and another C$50 million to unsecured creditors. A deal for the company to sell some stores, rumored to be with Federated Department Stores, recently fell through and contributed to the company’s need to seek protection. Exclusives Equity Properties, Inc. (610-645-7700) represents the following retailers: Bargain Brakes/Engine World, seeking spaces running 2,000 sq.ft. to 4,000 sq.ft. along the East Coast; Burlington Coat Factory, seeking 80,000 sq.ft. spaces in DE, NJ and PA; Clothestime, seeking spaces of 3,500 sq.ft. to 4,500 sq.ft. in DE, NJ and PA; Dollar Express, seeking 10,000 sq.ft. spaces in DE, NJ, NY and PA; Family Toy Warehouse, seeking 20,000 sq.ft. locations in DE, NJ and PA; Hollywood Tans, seeking 2,000 sq.ft. sites in DE, NJ and PA; Jiffy Lube, seeking one acre land parcels in DE, NJ and PA; Kiddie Academy, seeking 10,000 sq.ft. freestanding or in-line spaces in DE, NJ and PA; Partyland, seeking 3,000 sq.ft. to 6,000 sq.ft. spaces nationwide; Radio Shack, seeking 2,000 sq.ft. to 2,400 sq.ft. spaces in PA; Rebel Valley Cigars, looking for 2,500 sq.ft. freestanding facilities in DE, NJ and PA; Teacher Parent Showroom, seeking 7,000 sq.ft. spaces in DE, NJ and PA and United Retail Group, seeking spaces running 5,000 sq.ft. to 6,000 sq.ft. in DE, NJ and PA. Insignia/ESG Retail Group (215-561-8900) has been appointed exclusive leasing agent for seven shopping centers throughout the Philadelphia, PA metropolitan market. The seven include the 189,900 sq.ft. Lumberton Plaza in Mount Holly, NJ anchored by SuperFresh and Blockbuster Video; the 146,566 sq.ft. Bristol Plaza in Bristol, PA anchored by Pathmark and Hollywood Video; the 90,134 sq.ft. Lionville Shopping Center in Lionville, PA anchored by Clemens and Regal Cinemas; the 58,995 sq.ft. Springhill Shopping Center in Hellertown, PA; the 40,890 sq.ft. Presidential Plaza in Philadelphia, PA; the 39,848 sq.ft. Pine Watson Shopping Center in Langhorne, PA anchored by Eckerd Drug and the 34,646 sq.ft. North Wales Plaza in Montgomery, PA anchored by Wawa. Madison Partners (310-586-1050) exclusively represents Carl’s Jr. in Los Angeles, CA. The company is seeking corner locations for purchase or ground lease. Minimum size is 18,000 sq.ft. Robinson Sigma Commercial Real Estate Inc. (757-490-3300) was recently awarded the leasing and management contract for Pocono Green Shopping Center in Richmond, VA. NewMarket Advisors (702-221-2500) has been retained by Lucy’s LaundryMart to research and secure retail locations for its expansion into the Las Vegas, NV market. The Las Vegas market will be Lucy’s first expansion outside of CA. Lucy’s LaundryMart is a "multi-complex" laundromat that offers other retailers, such as fast food franchises, coffee shops and banks, the opportunity to be in an all-under-one-roof location. Currently, Lucy’s operates seven locations in Southern CA that range in size from 3,200 sq.ft. to 9,000 sq.ft. Current co-tenants include Starbucks, Burger King and Wells Fargo Bank. www.newmarketadvisors.com United Commercial Realty (214-526-6262) has been awarded retail leasing contracts by Centennial Management Services and Burk Collins Company. Both accounts total in excess of 800,000 sq.ft. The properties UCR will be leasing for Centennial include: the 48,730 sq.ft. Village Park Shopping Center, anchored by Radio Shack, in Arlington, TX; the 28,164 sq.ft. Trinity Oaks Shopping Center, anchored by Alfredo’s Italian and Great Outdoors, in Carrollton, TX; the 45,153 sq.ft. Village Park Shopping Center, anchored by Albertson’s and Kmart, in Colleyville, TX; the 59,637 sq.ft. Skillman Commons Shopping Center, anchored by Dickey’s Barbecue, LePeep Restaurant, Yoli’s Seafood and Mother’s Mesquite, in Dallas, TX and the 81,380 sq.ft. MacArthur/183 Shopping Center, anchored by Blockbuster Video and Sack ‘n’ Save, in Irving, TX. The properties UCR will be leasing for Burk Collins Company include: the 91,276 sq.ft. Northside Marketplace, anchored by Winn-Dixie, in Fort Worth, TX; the 234,529 sq.ft. Irving Market Centre, anchored by Ross Dress for Less, Best Buy, OfficeMax, PetsMart and Mardels, in Irving, TX; the 69,942 sq.ft. Creek Crossing Shopping Center, anchored by Winn-Dixie, in Mesquite, TX and the 188,856 sq.ft. North Hills Village Shopping Center, anchored by Best Buy, Wickes Furniture Store, OfficeMax and Cinemark Movie Theaters, in North Richland Hills, TX. CB Richard Ellis Retail Services (858-646-4718) has been awarded the asset services, construction management and leasing contract for Alamo Plaza in Alamo, CA by Invesco Realty Advisors. The 190,000 sq.ft. project is anchored by Safeway, Rite Aid and Blockbuster Video. Invesco Realty Advisors also awarded the asset services and leasing contact for Chandler Pavillion in Chandler, AZ to CB Richard Ellis. The 162,000 sq.ft. project is anchored by Bed Bath & Beyond, Borders Books, CompUSA and Toys ‘R Us. CB Richard Ellis has been awarded the asset services, construction management, leasing and repositioning contract for the 220,000 sq.ft. Maryland Square in Las Vegas, NV by Bank of America Trust. PM Realty Advisors awarded CB Richard Ellis the asset and construction management, leasing, merchandising and market contract for San Carlos Village in La Mesa, CA. The 160,000 sq.ft. project is anchored by Ralph’s. The company also announces that Mitsui Real Estate Sales, USA has awarded it a contract to provide various strategic services including asset services, construction management, consulting, leasing and marketing for 14 Southern CA retail properties totaling approximately 1.7 million sq.ft. Judd Lofchie & Associates Inc. (630-859-8500) has been appointed the exclusive tenant representative for J. Silver Clothing, Dollar General and Trak Auto in the Chicago, IL metropolitan market. For J. Silver, the real estate firm is implementing a Midwest market rollout plan that provides for 20 stores through 2002. The retailer, based in South Norwalk, CT, offers women’s fashion apparel, shoes and accessories. For Dollar General, the firm will spearhead a new preferred developer program and assist Dollar General in acquiring vacant land and constructing 8,800 sq.ft. to 10,250 sq.ft. stores. The firm will also assist Trak Auto in expanding in the Chicago and northern IN markets. The company has been assigned to market three strip centers in the Chicago market. Those assignments include Green Knoll Shopping Center in Downers Grove, IL; a 27,000 sq.ft. project under development in Chicago and a 30,000 sq.ft. project in Cicero, IL. Financial News Charming Shoppes, Inc. (215-638-6955) reported that its second quarter sales increased 12% to $311.7 million from $279.2 million during the second quarter last year. Comparable store sales increased 11% for the quarter. Net income for the quarter jumped 119% to $20.4 million from $9.3 million last year. During the first six months of the year, the company opened 15 stores, relocated six and closed five brining the total number of operating stores to 1,145 in 44 states, trading as Fashion Bug and Fashion Bug Plus, compared to 1,158 stores a year ago. The company ended the quarter with 10.461 million sq.ft. of leased space. The company’s second quarter 1999 financial results and store count do not include the results of the Modern Woman chain of 127 stores it acquired last month. Deb Shops, Inc. (215-676-6000) reported that its second quarter sales increased 14.1% to $66.7 million from $58.5 million during the second quarter last year. Second quarter net income increased 85% to $7.1 million from $3.8 million last year. In announcing the quarterly results, the company’s CEO Marvin Rounick said in a statement, "in keeping with our expansion philosophy, Deb Shops’ goal is to continue our selective and strategic store additions while eliminating those that do not provide our company with an appropriate return. We are strategically and financially positioned to execute this plan as our cash position and overall balance sheet is, by any measure, among the strongest in the retail universe." Deb Shops, Inc. is a national specialty retailer of fashionable apparel, shoes and accessories for juniors in both regular and plus sizes. The company operates 276 specialty apparel stores in 36 states under the Deb, Deb Plus and Tops ‘N Bottoms names. In addition, the company operates 18 bookstores in five states under the Atlantic Book Shops and Atlantic Book Warehouse names. Carlson Restaurants Worldwide, Inc. (972-450-5400) recently filed a registration statement with the Securities and Exchange Commission for an initial public offering of common stock. The company develops, operates and franchises casual restaurants globally. Its TGI Friday’s system, with over 500 restaurants, is one of the largest global casual dining companies. Carlson Restaurants is a wholly-owned subsidiary of privately-held Carlson Hospitality Worldwide, which will maintain a majority stake following the offering. The lean managing underwriter is Banc of America Securities LLC. Merrill Lynch & Co. and Morgan Stanley Dean Witter are co-managers. Hastings Entertainment, Inc. (806-351-2300) reported that its second quarter net income increased 16.1% to $2.1 million from $1.8 million during the second quarter last year. Total revenues increased 12.3% to $102.4 million from $91.2 million last year with comparable store sales up 4.9% for the quarter. During the first six months, the company has opened 10 superstores and is anticipating opening an additional 10 stores during the remainder of the year. The company is the leasing multimedia entertainment retailer that combines the sale of books, music, software, periodicals, DVDs, videos and video games with the rental of videos, DVDs and video games in a superstore format. The company currently operates 139 stores, averaging 21,500 sq.ft., primarily in small to medium-sized markets throughout the U.S. www.gohastings.com S&K Famous Brands, Inc. (804-346-2500) reported that its second quarter net income fell to $373,000 from $965,000 during the second quarter last year. Total sales for the quarter were up to $35.7 million from $33.8 million last year with comparable store sales even with last year’s quarterly results. During the quarter, the company opened stores in Kingsport, TN; Columbus and Dayton, OH and Lynchburg, VA for a year-to-date total of 10 new stores. As planned, five underperforming stores were closed during the quarter for a total of nine closings year-to-date. S&K Famous Brands is a retailer of value-priced menswear operating 234 stores in 27 states reaching from the Eastern U.S. to TX and from ME to FL. The company stores offer a complete line of men’s apparel generally priced 20% to 40% below department store and specialty store regular prices. www.skmenswear.com Hibbett Sporting Goods, Inc. (205-942-4292) reported that net sales for the second quarter increased 21% to $39.3 million from $32.5 million during the second quarter last year. Comparable store sales increased 1.5% for the quarter. Net income for the quarter increased 21.2% to $1.6 million from $1.4 million last year. During the first half of the year, the company has opened 24 new stores as part of its plan to open 55 stores this year. The company is a rapidly growing, full-line sporting goods retailer operating 196 stores in small markets in 10 states, predominately in the Southeast. The company’s primary store format is Hibbett Sports, a 5,000 sq.ft. store located in enclosed malls and dominant strip centers. Lease Signings Winbrook Realty Group, Inc. (212-643-8080) leased 16,000 sq.ft. to Bare Feet Shoes at Cedarbrook Plaza Shopping Center in Wyncote, PA. NAI Gold & Company, Inc. (412-471-4455) leased 6,000 sq.ft. to Hollywood Video in Pittsburgh, PA. R.J. Waters & Associates (610-444-6000) leased 4,800 sq.ft. to West Coast at Lower Makefield Shopping Center in Lower Makefield, PA; 2,100 sq.ft. to United Cash Advance at Orchard Plaza in Altoona, PA; 1,200 sq.ft. to Hair Cuttery, 1,539 sq.ft. to Mail Boxes Etc., 1,539 sq.ft. to Domino’s and 4,997 sq.ft. to Applebee’s at Pottstown Plaza in Pottstown, PA; 8,450 sq.ft. to Dollar Tree and 1,400 sq.ft. to United Cash Advance at Rockland Plaza in Reading, PA; 1,100 sq.ft. to Holiday Hair at William Penn Plaza in Easton, PA; 16,851 sq.ft. to First National Bank of Newtown at Center Point Place in Warminster, PA; 4,997 sq.ft. to Applebee’s at The Shoppes at Longwood Village in Kennett Square, PA; 1,600 sq.ft. to Wise Eyes and 1,600 sq.ft. to CD Warehouse at North Atherton Place in State College, PA; 1,400 sq.ft. to Subway, 1,400 sq.ft. to Larmon Photo, 1,600 sq.ft. to Dollar Discount at Cross Keys Place in Doylestown, PA; 8,213 sq.ft. to Dollar General and 1,703 sq.ft. to The Hair Station at Plumstead Square in Plumsteadville, PA; 5,000 sq.ft. to Blockbuster and 4,500 sq.ft. to Hallmark at Shoppes at Kissel Village in Lititz, PA; 4,800 sq.ft. to Blockbuster and 4,800 sq.ft. to Chinese Buffet at Centerville Square in Lancaster, PA and 10,125 sq.ft. to CVS at Shoppes at Dilworth Crossing in Dilworthtown, PA. Welco Realty, Inc. (914-576-7500) leased 7,000 sq.ft. to Applebee’s Restaurant at Bay Plaza Shopping Center in the Bronx, NY; 9,000 sq.ft. to Kid City at Sunset Shopping Center in North Babylon, NY; 7,500 sq.ft. to Eastern Mountain Sports in Stamford, CT; 11,000 sq.ft. to Rite Aid in Hoboken, NJ; 6,000 sq.ft. to Lot Stores at Pathmark Center in New York, NY; 8,000 sq.ft. to Eastern Mountain Sports in Bridgewater, NJ; 3,600 sq.ft. to Coconuts at Wicks Plaza in Edison, NJ; 3,600 sq.ft. to Coconuts at Ellwood Shopping Center in Ellwood, NY; 4,000 sq.ft. to Coconuts at Georgetown Shopping Center in Brooklyn, NY and 2,500 sq.ft. to Coconuts in the Bronx, NY. Metro Commercial Real Estate, Inc. (609-866-1900) leased 12,000 sq.ft. to Party City at Siniawa Plaza IX in Dickson City, PA. Colliers Lanard & Axilbund (215-925-4600) leased space to Blockbuster Video, Supercuts and Blue Ribbon Industries Dry Cleaning at Warwick Square Shopping Center in Warwick, PA. National Realty & Development Corp. (914-694-4444) leased 86,000 sq.ft. to Kohl’s Department Store at Northampton Crossings in Easton, PA. Real Estate Professionals Making The News Caribou Coffee Company (612-359-2700) announces that Don Dempsey has been named chief executive officer of the company. Prior to joining Caribou, Dempsey was president/CEO of McDonald’s China. Famous Dave’s of America (612-294-1300) announces the appointment of Martin O’Dowd as president and chief executive officer of the company. Prior to joining Famous Dave’s, O’Dowd was most recently president and chief executive officer of Elephant & Castle Group Inc. and has held top management positions at Rainforest Cafe, Holiday Inn Hotels and Hard Rock Cafe. Kranzco Realty Trust (610-941-9292) announces that Norman Kranzdorf, president and CEO of Kranzco Realty Trust, has been elected a director of privately-held New America Network, Inc. NAI is a global partnership of real estate providers with about 150 member firms serving over 200 markets worldwide. www.krt.com, www.naiweb.com Just For Feet (205-408-3000) Announces that company founder Harold Ruttenberg has stepped down as chief executive officer but will remain with the company has chairman. Ruttenberg started the company with one shoe store in Birmingham, AL in 1977. Today, the company operates more than 300 stores. Assuming the day-to-day operations will be Helen Rockey, who joined the company as president and COO in March. www.feet.com Ralphs Grocery Company (310-884-9000) announces that Harold McIntire, president of the company’s Food 4 Less Warehouse Store Division, will retire at the end of this month. Succeeding McIntire as president of Food 4 Less will be Dave Hirz, Food 4 Less’ group vice president of store operations. In his new role, Hirz will have responsibility for the Food 4 Less division, including all store operations, sales and marketing and administrative functions of the 98-store chain. Koll Development Company (949-833-3030) announces the appointment of Greg Tylka as vice president of finance of the company’s Western division. In his new role, Tylka will be responsible for tracking the financing, construction and leasing progress of nearly 11 million sq.ft. of projects currently under development. Tylka will also perform underwriting reviews of potential development opportunities prior to acquisition. The company also announces that appointment of Kevin Schuck as vice president, development of the company’s AZ division. In his new position, Schuck will oversee the development of retail, office and industrial projects for Koll in AZ and NM. Initially, Schuck will be focused on managing the Summit at Scottsdale, a 47-acre community lifestyle retail center in North Scottsdale, AZ and Prescott’s Century Village, a 175,000 sq.ft. community center in Prescott, AZ. CKE Restaurants, Inc. (714-778-7136) announces that William Foley II will step down as chief executive officer and that Tom Thompson, CKE’s president and chief operating officer, will assume the CEO position. Foley will remain CKE’s chairman of the board. The change is expected to take place during the first quarter next year. Strouds, Inc. (626-912-2866) announces that Robert Menar has been appointed to the new position of chief operating officer of the company. In his new position, Menar will be responsible for the company’s operations including finance, supply chain, real estate and information systems. Lead Sheet The Clothestime Stores, Inc. Apparel The 260-unit chain operates locations nationwide. The stores, selling junior apparel at discount price-points, occupy spaces of 3,000 sq.ft. to 4,000 sq.ft. in entertainment, outlet and power centers. Plans call for 50 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 100,000 within three miles earning $45,000 as the average income. Leases running five years are typical and the company prefers a vanilla shell. United Fashions of Texas Apparel The 48-unit chain operates locations in AZ, CA, NM and TX. The stores, selling junior and misses clothing, occupy spaces of 5,000 sq.ft. to 10,000 sq.ft. in strip centers. Preferred anchors include Bealls, Payless Shoes and Target. Plans call for as many as six openings in the coming 18 months. Expansion will take place in El Paso, Houston and Corpus Christi, TX and along the TX-Mexican border. Tops Appliance City Appliances The 10-unit chain operates locations in NJ and NY. The stores, selling major appliances, occupy spaces of 25,000 sq.ft. to 50,000 sq.ft. in downtown store fronts and freestanding facilities. Plans call for five openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a trade area population of one million earning $50,000 as the average income. Leases running 25 years are typical. Winslows, Inc. Cards & Gifts The 19-unit chain operates locations in IL, IA, MI, MN and WI. The stores, selling Hallmark cards and gifts, occupy spaces of 3,500 sq.ft. to 5,000 sq.ft. in specialty and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in WI. Preferred demographics include a population of 50,000 within five miles earning $30,000 as the average income. Leases running five years, with options, are typical and the company prefers a vanilla shell. Teruya Brothers Ltd. Convenience Store The six unit chain operates locations in HI. The convenience stores occupy spaces of 3,000 sq.ft. in freestanding facilities on at least 20,000 sq.ft. of land. Plans call for at least two openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 10,000 within one mile earning $30,000 as the average income. Leases running 25 years are typical. Stein Mart Inc. Department Store The 200+-unit chain operates locations nationwide. The stores, selling family apparel, soft home goods and gifts, occupy spaces of 36,000 sq.ft. in strip centers. Preferred co-tenants include upscale grocery stores. Plans call for as many as 40 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 100,000 within five miles earning $55,000 as the average income. Leases running 10 years are typical. CVS Inc. Drug Store The 4,096-unit chain operates locations in AL, CT, DE, FL, GA, IL, IN, KY, ME, MA, MD, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, VT, VA, WV and Washington, D.C. The drug stores occupy spaces of 10,125 sq.ft. in freestanding facilities. Plans call for 140 openings in the coming 18 months. Expansion will take place in the existing markets. Eckerd Corporation Drug Store The 2,900-unit chain operates locations in CT, DE, FL, GA, KS, LA, MD, MS, MO, NJ, NY, NC, OH, OK, PA, SC, TN, TX, VA and WV. The drug stores occupy spaces of 10,000 sq.ft. to 13,000 sq.ft. in freestanding facilities, regional malls and strip centers. Plans call for 300 openings in the coming 18 months. Expansion will take place nationwide. Ice Chalet Entertainment The 11-unit chain operates locations in AZ, CA, NC, OR and TN. The ice rinks occupy spaces of 28,000 sq.ft. to 50,000 sq.ft. in entertainment centers, freestanding facilities and regional malls. Growth opportunities are sought nationwide. Leases running 10 to 15 years are typical. Marquee Cinemas Inc. Entertainment The eight-unit chain operates locations in KY, SC, VA and WV. The movie theaters occupy spaces of 50,000 sq.ft. in freestanding facilities and regional malls. Growth opportunities are sought in the existing markets. Goodwill Industries of Greater NY & NJ General Merchandise The 41-unit chain operates locations in NJ and NY. The stores, selling new and used items, occupy spaces of 8,000 sq.ft. to 15,000 sq.ft. in downtown store fronts, freestanding facilities and strip centers. Preferred co-tenants include T.J. Maxx and supermarkets. Plans call for as many as eight openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical and the company prefers a vanilla shell. Kirkland’s Inc. Gifts The 210-unit chain operates locations nationwide. The stores, selling gifts, decorative accessories, home furnishings and housewares, occupy spaces of 4,000 sq.ft. to 4,500 sq.ft. in regional malls, outlet, power and strip centers. Growth opportunities are sought nationwide. Leases running 10 years are typical. Merlo’s Cutlery Inc. Housewares The 20-unit chain operates locations in AZ, CA, ID, NC, OR, TN, TX and WA. The stores, selling cutlery and gifts, occupy spaces of 500 sq.ft. to 800 sq.ft. in regional malls. Plans call for as many as five openings in the coming 18 months. Expansion will take place in CA, OR, TX and WA. Preferred demographics include a population of 300,000 within 10 miles earning $45,000 as the average income. Leases running 10 years are typical. National Record Mart, Inc. Music The 174-unit chain operates locations nationwide. The stores, selling compact discs, cassettes, videos, DVDs and accessories, occupy spaces of 2,200 sq.ft. to 10,000 sq.ft. in downtown store fronts, regional malls, entertainment and strip centers. Plans call for at least 20 openings in the coming 18 months. Expansion will take place nationwide. Leases running five years, with a five-year option, or a flat 10 years, are typical. U.S. Factory Outlets, Inc. Outlet 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 options running five years each, are typical. Mail Boxes Etc. USA Inc. Service The 3,300+-unit chain operates locations nationwide. The stores, offering business and postal services, occupy spaces of 1,200 sq.ft. to 1,800 sq.ft. in power and strip centers. Preferred anchors include supermarkets. Plans call for at least 300 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 30,000 within three miles earning $40,000 as the average income. Leases running five years are typical and the company, which is franchising, prefers a vanilla shell. The Brown Group Shoes The 840-unit chain operates locations nationwide. The family shoe stores occupy spaces of 6,000 sq.ft. to 8,000 sq.ft. in downtown store fronts, regional malls, outlet, power and specialty centers. Plans call for 120 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 100,000 within five miles earning $40,000 as the average income. Leases running five years are typical. Shonac Corp. Shoes The 50-unit chain operates locations in AZ, CO, FL, GA, IL, IN, KS, MA, MD, MI, MN, MO, NC, NJ, NY, OH, OK, PA, TN, TX and WI. The family shoe stores occupy spaces of 25,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for as many as 20 openings in the coming 18 months. Expansion will take place in FL, GA, IL, MA, MD, MI, NJ, NY, PA, TX and WA. Preferred demographics include a population of 200,000 within five miles earning $60,000 as the average income. Discovery Communications Inc. Specialty The 130-unit chain operates locations nationwide. The stores, selling nature-oriented gifts, occupy spaces of 4,000 sq.ft. in entertainment centers and regional malls. Plans call for as many as 20 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 300,000 within five miles earning $75,000 as the average income. Leases running 12 years are typical. Ron Jon Surf Shop of Florida Inc. Specialty The four-unit chain operates locations in CA, FL and NJ. The stores, selling surf boards and surfing apparel, occupy spaces of 15,000 sq.ft. to 25,000 sq.ft. in regional malls and entertainment centers. Growth opportunities are sought in the Sunbelt states. Leases running 10 years are typical. Glass Garden Inc. Supermarket The seven-unit chain operates locations in NJ and NY. The supermarkets occupy spaces of 55,000 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 25 years are typical. Stater Bros. Markets Supermarket The 155-unit chain operates locations in CA. The supermarkets occupy spaces of 41,000 sq.ft. in strip centers. Preferred co-tenants include drug stores. Plans call for the opening of four units in the coming 18 months. Expansion will take place in the existing market. Leases running 20 years are typical. Family Dollar Stores, Inc. Variety The 3,450-unit chain operates locations in 39 states east of the Rocky Mountains. The variety stores occupy spaces of 7,000 sq.ft. to 8,000 sq.ft. in downtown store fronts, freestanding facilities and strip centers. Preferred anchors include supermarkets. Plans call for 700 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 20,000 within two miles earning $25,000 as the average income. Leases running five years, with options, are typical. Space Place Delaware New Castle- Pad sites of 6,663 sq.ft. and 11,200 sq.ft. are
available for lease at a 270,000 sq.ft. mixed use center located at the intersection of
Route 273 and New Churchmans Road. Demographics include a three-mile population of 43,306
earning $43,004 as the average household income. Florida Deerfield Beach- Rivertowne Square is anchored by Winn-Dixie,
Office Depot, Eckerd Drugs and Denny’s. The 137,000 sq.ft. project has
space available for lease. Demographics include a three-mile population of 118,000 earning
$37,000 as the median income. In Miami- Publix at the Meadows is
anchored by Publix, Supercuts and GNC. The 75,000 sq.ft. project has space
available for lease. Demographics include a three-mile population of 92,000 earning
$43,000 as the median income. Indiana Noblesville- Western Plaza Shopping Center has spaces
from 1,200 sq.ft. to 8,870 sq.ft. available for lease. Demographics include a five-mile
population of 40,837 earning $57,556 as the median income. In Terre Haute-
Spaces from 1,200 sq.ft. to 50,000 sq.ft. are available for lease. Demographics include a
trade area population in excess of 100,000 earning $43,000 as the average income. Plymouth- Pilgrim Place is anchored by Kmart, JC
Penney and Sears. The 179,643 sq.ft. project has space available for lease.
Demographics include a trade area population of 62,683 earning $43,534 as the average
household income. Rushville- Rushville Plaza is anchored by Kroger,
AutoZone and Stage Stores. The 85,000 sq.ft. project has a 12,000 sq.ft. space
available for lease. New Jersey Absecon- The Marketplace of Absecon is anchored by Acme
and Eckerd Drug. The project has spaces of 2,700 sq.ft., 8,500 sq.ft. and a pad
site that can accommodate up to 5,500 sq.ft. of space available for lease. Cherry Hill- Super G Plaza is anchored by Super G.
The project has spaces from 1,200 sq.ft. to 20,000 sq.ft. available for lease. In Cinnaminson-
Cinnaminson Shopping Center is anchored by Acme, Ames and Blockbuster
Video. The project has a 7,000 sq.ft. space available for lease. In Egg Harbor-
The Shore Mall and The Shoppes at Shore Mall Power Center have spaces from
300 sq.ft. to 300,000 sq.ft. available for lease. In Millville- Wheaton
Plaza has spaces from 1,000 sq.ft. to 25,000 sq.ft. available for lease. Cliffwood- Cliffwood Plaza is anchored by A&P
Supermarket. The project has a 3,000 sq.ft. freestanding building available for lease.
In Marlboro- Marlboro Plaza is anchored by Pathmark, T.J.
Maxx, Annie Sez, Sears Hardware and Kohl’s Department Store. The project
has an 11,113 sq.ft. space available for lease. Egg Harbor Township- Cardiff Circle Shopping Center is
anchored by Office Depot, Pathmark Supermarket, Bradlees, Ross Dress For Less and Party
City. The 330,000 sq.ft. project has spaces from 1,200 sq.ft. to 63,000 sq.ft.
available for lease. Demographics include a seven-mile population of 143,603 earning
$58,092 as the average household income. The site is located across from the Shore Mall
which is anchored by Circuit City, Boscov’s and Hoyts Cinema. Fort Lee- Space is available for lease at the proposed 50,000
sq.ft. Fort Lee Towne Shopping Center. Demographics include a three-mile population
of 146,000 earning $77,000 as the average household income. Lambertville- A 10,700 sq.ft. space is available for lease. In Teaneck-
A 16,819 sq.ft. space is available for lease. Morris County- Chester Mall is anchored by Super Rite
Aid. The project has spaces of 1,000 sq.ft. and 2,280 sq.ft. available for lease. In Union
County- Blockbuster Plaza is anchored by Pathmark, Blockbuster Video
and H&R Block. The project has spaces from 1,500 sq.ft. to 20,500 sq.ft.
available for lease. In Warren County- 80 Main Plaza is anchored by Shop
Rite Liquors, Quik Chek, Frank’s Pizza and Summit Bank. The project has
spaces from 1,200 sq.ft. to 6,300 sq.ft. available for lease. Also in Warren County-
Village Square has spaces from 1,200 sq.ft. to 10,000 sq.ft. available for lease.
The site is located adjacent to Country View Village, a 237-unit adult home
community. Also in Warren County- 401 Water Street has spaces from 1,250
sq.ft. to 2,500 sq.ft. available for lease. The site is ideal for convenience stores, dry
cleaners or restaurants. Paramus- The Mall at IV has anchor positions available
for lease. Demographics include a trade area population of 483,864 earning $65,000 as the
average household income. The site is located near Bergen Mall and Garden State
Plaza. In South Brunswick- South Brunswick Square is anchored by Grand
Union, Fashion Bug, Radio Shack and Blockbuster Video. The 265,841 sq.ft.
project has spaces of 50,000 sq.ft., 70,000 sq.ft. and small shops available for lease.
Demographics include a trade area population of 385,000 earning $78,000 as the average
household income. In Toms River- Seacourt Pavilion is anchored by Loews
Theaters, Pier 1 Imports, Marshalls and Old Country Buffet. The 247,452 sq.ft.
project has spaces from 1,000 sq.ft. to 43,000 sq.ft. available for lease. Demographics
include a trade area population of 365,000 earning $49,000 as the average household
income. The site is located adjacent to Ocean County Mall. Parlin- Old Bridge Gateway is anchored by Marshall’s,
Drug Emporium, Petco, Jo-Ann Fabrics, R&S Strauss and Old Navy. The 235,416
sq.ft. project has spaces from 2,000 sq.ft. to 39,000 sq.ft. available for lease.
Demographics include a three-mile population of 57,089 earning $62,260 as the average
household income. Princeton- Princeton Shopping Center is anchored by McCaffrey’s Market, Petco, Mail Boxes Etc., Eckerd Drug and Radio Shack. The 215,000 sq.ft. project has a 25,500 sq.ft. space, which is divisible, available for lease. For details, contact Ted Kraus of TKO Real Estate Advisory Group at (609-587-6200), Fax (587-3511), e-mail (ted.kraus@dealmakers.net), home page (www.dealmakers.net). New York Carle Place- Kids ‘R Us Shopping Center is anchored
by Kids ‘R Us and Joyce Leslie. The project has an 11,400 sq.ft. space
available for lease. In Commack- Pathmark Shopping Center is anchored
by Pathmark, Mandees and Umberto’s. The project has a 2,210 sq.ft.
space available for lease. In Hempstead- Hempstead Village Commons is
anchored by Staples, Site Aid, Pep Boys, Hollywood Video and McDonald’s.
The project has spaces from 10,000 sq.ft. to 34,000 sq.ft. available for lease. In Oceanside-
Oceanside Plaza is anchored by T.J. Maxx, Genovese and Nathans. The
project has a 2,150 sq.ft. space available for lease. Ohio North Kingsville- 12,000 sq.ft. of space remains available for
lease at a shopping center anchored by Dollar General, a small grocery store and a
bank. Pennsylvania Abington- Abington Shopping Center is anchored by Rite
Aid and Shordays Supermarket. The project has spaces from 2,000 sq.ft. to 5,000
sq.ft. available for lease. In Allentown- Airport Plaza is anchored
by Redners, Family Dollar and Wine & Spirits. The project has spaces of
1,600 sq.ft. to 7,200 sq.ft., as well as a pad site and a six-acre expansion area
available for lease. In Bensalem- Neshaminy Square has spaces of
1,500 sq.ft. to 4,000 sq.ft., as well as 6,000 sq.ft. and a 30,000 sq.ft. expansion area
available for lease. In Bethlehem- An 80,000 sq.ft. building is available
for lease fronting Schoenersville Road. In Coatesville- Coatesville Plaza
has a 3,000 sq.ft. end-cap location available for lease. In Delaware County-
Woodlyn Shopping Center has spaces from 1,100 sq.ft. to 7,000 sq.ft. available for
lease. In Hazleton- Hazleton Shopping Center is anchored by Dollar
Express, Blockbuster Video and Parts America. The project has spaces from 3,000
sq.ft. to 25,000 sq.ft. available for lease. In Langhorne- Glenview Plaza
has spaces of 1,000 sq.ft. and 2,000 sq.ft. available for lease. In Montgomeryville-
Five Points Plaza has spaces from 1,920 sq.ft. to 86,000 sq.ft. available for
lease. In Oreland- Oreland Shopping Center has spaces of 1,200 sq.ft.
and 7,400 sq.ft. available for lease. In Philadelphia- A 38,000 sq.ft.
former SuperFresh Supermarket is available for lease on Aramingo Avenue. Also in Philadelphia-
A 29,000 sq.ft. former SuperFresh Supermarket is available for lease at Five
Points Shopping Center. Also in Philadelphia- A 4,000 sq.ft. space is
available for lease between Kmart and a new SuperFresh Supermarket. Also in Philadelphia-
South Philadelphia Plaza is anchored by ShopRite and Drug Emporium.
The project has spaces from 1,300 sq.ft. to 33,000 sq.ft. available for lease. Also in Philadelphia-
A 1,250 sq.ft. former restaurant with a drive-thru is available for lease. In Skippack-
Skippack Square Shopping Center is anchored by CVS. The project has spaces
from 1,600 sq.ft. to 20,000 sq.ft. available for lease. In Warminster- An
8,000 sq.ft. freestanding building fronting Street Road is available for lease. Also in Warminster-
Warminster Shopping Center has spaces of 1,350 sq.ft. and 1,500 sq.ft. available
for lease. Also in Warminster- Warminster Square has spaces from
1,200 sq.ft. to 4,400 sq.ft. available for lease. In West Chester- Bradford
Plaza Shopping Center has spaces from 10,000 sq.ft. to 11,000 sq.ft., as well as a two
acre pad site, available for lease. Allentown- An 8.2 acre parcel of land suitable for up to 56,000
sq.ft. of building is available for lease. Demographics include a three-mile population of
109,601 earning $40,688 as the median household income. In Bristol- Bristol
Commerce is anchored by SuperFresh, Family Toy Warehouse and Eckerd. The
273,000 sq.ft. project has a 113,160 sq.ft. former Caldor store, as well as spaces
of 2,000 sq.ft. and 2,400 sq.ft., available for lease. Demographics include a three-mile
population of 72,875 earning $50,329 as the average household income. In Chambersburg-
Franklin Center is anchored by Food Lion, Big Lots and Perkins Family
Restaurant. The 175,000 sq.ft. project has spaces of 3,900 sq.ft., 4,000 sq.ft. and a
71,272 sq.ft. former Lowe’s store available for lease. Demographics include a
five-mile population of 41,819 earning $45,304 as the average household income. In Devon-
Filene’s Basement at Valley Fair is anchored by Filene’s
Basement. The project has a 14,165 sq.ft. space available for lease. Demographics
include a five-mile population of 105,005 earning $111,214 as the average household
income. In Montgomeryville- General Hancock Shopping Center is
anchored by Costco. The 204,000 sq.ft. project has up to 67,000 sq.ft. of space
available for lease. Demographics include a three-mile population of 59,563 earning
$59,941 as the median household income. In Whitehall- Whitehall Square
is anchored by The Sports Authority, Kids ‘R Us and Phar-Mor Drugs. The
298,000 sq.ft. project has an 85,120 sq.ft. space available for lease. Demographics
include a three-mile population of 116,419 earning $45,900 as the average household
income. Altoona- Orchard Plaza is anchored by Bi-Lo Food
Store and Dollar General. The 90,000 sq.ft. project has space available for
lease. In Birmingham/Thornbury Township- Shoppes at
Dilworthtown Crossing is anchored by Giant, CVS, Blockbuster and Hallmark.
The 125,000 sq.ft. project has a pad site available for lease. In Chester County-
Shoppes at Jenners Village is anchored by Giant and CVS. The 110,000
sq.ft. project has three pad sites available for lease. In Kennett Square- Shoppes
at Longwood Village is anchored by SuperFresh, CVS and T.J. Maxx. The
138,000 sq.ft. project has space available for lease. In Mechanicsburg- Mechanicsburg
Plaza is anchored by Giant Food, CVS and Hallmark. The 67,000 sq.ft.
project has space available for lease. In Oxford- Oxford Town Center
has three pad sites available for lease. In Plumsteadville- Plumstead
Square is anchored by Clemens, Eckerd Drug and McDonald’s. The
70,000 sq.ft. project has space available for lease. In Reading- Rockland
Plaza is anchored by Giant Food, Dollar Tree and Fashion Bug. The 90,000
sq.ft. project has space available for lease. In Warminster- Center Point
Place is anchored by Giant Food, I. Goldberg and T.J. Maxx. The 240,000
sq.ft. project has space available for lease. Bensalem- Neshaminy Mall is anchored by Boscov’s,
Strawbridge’s, Sears and a 24-screen AMC Theater. The 1.027 million sq.ft.
project has space available for lease. Demographics include a trade area population of
546,900 earning $61,400 as the average household income. Cheltenham- A 19,200 sq.ft. space is available for lease. Downingtown- Ashbridge Square @ East Caln is anchored by
Home Depot, Shur Fine Grocery, SuperCuts, Blockbuster Video and Chuck E. Cheese.
The 375,000 sq.ft. project has satellite store spaces from 2,500 sq.ft. to 18,200 sq.ft.
and big box spaces from 20,000 sq.ft. to 98,000 sq.ft. available for lease. In Limerick-
Limerick Crossings has an 80,000 sq.ft. space available for lease. Perkasie- Perkasie Square is anchored by Landis
Supermarket, Eckerd Drug, Blockbuster Video, Hair Cuttery, Subway and Wine &
Spirit Shoppe. The 100,000 sq.ft. project has spaces from 1,200 sq.ft. to 4,000 sq.ft.
available for lease. Demographics include a five-mile population of 62,000 earning $63,000
as the average household income. Reading- North Reading Plaza is anchored by a Wal*Mart
Supercenter. The project has a 78,000 sq.ft. space available for lease. Springfield- Marple Crossroads Shopping Center is
anchored by Marshall’s, Linens ‘N Things, Circuit City, OfficeMax, Frugal
Fannies and K&G Menswear. The project has up to 35,000 sq.ft. available for
lease. Trexlertown- Trexler Mall is anchored by Giant
Supermarket, The Bon Ton, The Wellness Center, Eckerd Drugs, Waldenbooks, Fashion Bug
and Radio Shack. The 270,000 sq.ft. project has three anchor positions available
for lease. Demographics include a 10-mile population of 265,042 earning $51,928 as the
average household income. MVP ARC Properties, Inc. Pg. 5 Bennett Williams Pg. 42 Berger-Epstein Associates Pg. 43 Jeffrey Blank & Assoc. Pg. 24 Book Market Pg. 31 R.J. Brunelli & Co. Pgs. 9, 15 Capital Lease Funding Pg. 7 Complete Property Management Pg. 30 CVS Pharmacy Pg. 63 DLC Management Corp. Pgs. 2, 21 Dealmakers Pg. 62 Developers Realty Pg. 8 DY-CO Pgs. 38, 40 ESP Magazine Pg. 53 E.W. Howell Pg. 61 Equity Properties, Inc. Pgs. 11-14 First Property Enterprises, Inc. Pg. 56 Gibbons, DelDeo, Dolan, Griffinger, Vecchione Pg. 35 Goldstein Group Pg. 61 Grubb & Ellis Pg. 34 Halibej Realty Pg. 19 Harrison & Grass Pgs. 22, 23 Hoyts Cinema Pg. 6 Insignia/ESG Pg. 28 Jeffrey Realty Pg. 16 Kahn & Co. Pg. 27 Kimco Realty Corp. Pg. 3 Kin Properties, Inc. Pg. 51 Langan Engineering Pg. 10 Lavipour & Company, LLC Pg. 44 Lucille Roberts Pg. 58 Stuart Makler & Associates Pg. 46 Marcus & Millichap Pg. 41 NFI Pg. 41 Petroleum Properties Pg. 64 Pliskin Realty & Development Pg. 37 Ravin, Sarasohn, Cook Pg. 29 React Pg. 43 Rosen Associates Pg. 37 Schultz Organization Pg. 17 Shopping Center Properties Pg. 38 Smart Marketing Technologies Pg. 40 Strawberry Square Pg. 44 TKO Pgs. 45, 55, 57 Tenant Search Pg. 59 U.S. Factory Outlets Pg. 39 U.S. Realty Pg. 46 R.J. Waters & Assocs. Pg. 25 Welco Realty, Inc. Pg. 26 Westra Construction Pg. 36 Winbrook Realty Group, Inc. Pgs. 18, 20 Wolfson-Verrichia Group, Inc. Pgs. 32, 33 |