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The
Dealmakers Issue Number 22 for the week of June 26, 1996. My Way
by Ted Kraus I'm
positive the main reason small shop space is leasing slow is not because retail sales are
soft or retailers aren't making a profit, but because developers either don't want to or don't know how to lease. Here's a perfect example, I recently called
National Realty & Development on behalf of a client seeking space in the area National
has a center. The first time I called, I
asked for whoever was leasing the ABC Center in the town of XYZ. I was told that I had to be more specific, since
they have numerous centers in that town with the same name (Da). When I explained to the receptionist that they had
only one center by any name in that town, she still contended the name and city were not
enough. I then said it was anchored by Caldor
and Foodtown, does that help? She then
connected me to voice mail, where I left a message. I
waited a day, received no return call and called again.
This time I was connected to someone else's voice mail and left another message. I waited another day, didn't receive a return call
so I tried again (who says brokers don't work hard for our money). This time I got connected to a live person. (Sidebar--I believe voice mail is slowing down
productivity in our society, not increasing it.) I
explained who I was, who I represented and what center we were interested in. I was told that they did not have enough space
available to accommodate our client (Funny, I had a letter in front of me from them
offering 9,000 sq.ft. and the letter was five days old).
I said fine, but keep us in mind if something should change. The leasing rep then said that they were contacted
by another broker three or four months ago for the same tenant. I asked if they had made the deal with the
retailer (I already knew the answer). He
responded no, but wanted me to be aware. While,
believe it or not, I try not to be argumentative, something about this bugged me so I
responded, "There's no need to worry, when we negotiate the lease, we put in a
provision saying that if the landlord doesn't pay us, the tenant has the right to take it
out of rent plus 18% interest," that's usually sufficient to satisfy most landlords
that the tenant knows us and we're representing them.
My sarcasm was lost on him, so I tried to end the conversation with "Do you
have any other centers with this type of square footage available in New Jersey?" He
responded that before they could release that information (I guess it's classified, for
the Presidents eyes only) he requires written authorization from the tenant. I said, "Have a nice day" and hung up. They are so paranoid that they might have to pay a
commission that they'd almost rather not make a deal.
It reminds me of a Rickel's store manager I was talking to who complained that
customers kept getting his store dirty. I
suggested he not allow them in, which he was agreeable to, but felt his supervisor might
get upset. Well, he no longer has to worry
about customers dirtying up his store...they're out of business. The
same is true for leasing, yes, no one likes to pay a commission and yes, some brokers
claim to represent a retailer when they don't, but if you're a developer who can't
"control" the entire leasing process and the broker(s) involved, you have no
right to be in business. First make the deal,
then worry about commissions. I get calls all
the time from brokers claiming to represent the same tenant. If I don't have a relationship with the tenant, I
say "great, set up a meeting, if we make a deal, you get paid, if we don't, you
won't." It's such a simple concept few
brokers have trouble understanding it. First,
it's a sin that I had to call three times to speak to a leasing rep (and they didn't know
I was a broker). Then to "waste"
75% of the time on the phone discussing brokerage instead of trying to make a deal is
insane. Making matters worse, the
receptionist interrogated me for five minutes before letting me talk to anyone. Something is wrong here. I wouldn't be surprised if he calls the tenant
directly to try and get around the broker. Of
course, if they had spoken to a broker three months ago and no deal was made, why didn't
they call the tenant to find out where they could make a deal? Guess it required to much effort. On a
different note, the other day I was reading that Sizzlers was going bankrupt, not because
they didn't have any money, but because they wanted to disavow bad leases. Their assets are nearly three times that of their
liabilities, so they are in good financial shape. Bankruptcy
laws have to be changed to prevent this type of theft and while it might be legal, it is
robbing the developer. I am not pro developer
(or retailer or broker), but this is totally insane.
It's just not fair. Yes, bankruptcy is
necessary to help out a company when they're in trouble.
Unfortunately, our industry has more than its fair share of bankruptcies and most
of it was due to stupid decisions, not the desire to screw developers or retailers, but
they needed to go "11" to stay in business not just make more money. A friend of mine who is a CPA and auditor said
bankruptcy is no longer about insolvency, it's become a marketing strategy. He's right, but that's wrong. More and more retailers are going "11"
just to screw the landlord. Caldor basically
said that when they went "11," "We're not insolvent, we just want the same
`sweetheart' deals that developers gave Bradlees when they went under." The
biggest problem in the bankruptcy process is the judges, they do not follow or obey the
bankruptcy code, they make up their own rules as they go along and in their court, they
are god. Through our management division we
get involved in tenants' bankruptcies occasionally. The
law says that the tenant has to notify the landlord within 90 days if they intend to
disavow the lease. Few, if any, do. Sometimes we have to wait two or three years to
find out what's happening with the property and that's usually resolved by the retailer
converting to "7" instead of "11."
This is just an example of the stupidity involved, there's a lot more. In a
recent article in Chain Store Age, they contended that the next major retail shakeout will
not occur until after the next recession. I
disagree, I think it will increase tremendously within the year to 18 months, and by then
the next recession will be here and it will get worse.
So the law has to be changed now not five years from now. Some of the statistics they discussed were scary. They contend that we're in a stable period right
now, with only 3,293 stores going out of business last year compared to a high of 5,300 in
1992. Either way, that's a lot of vacant
space. I know
the ICSC's Government Affairs is involved in reviewing and coming up with suggestions on
how the bankruptcy code should be changed, but I consider this one of the most important
pieces of legislation they must lobby to change and they should be pushing even harder. Next to the dealmaking shows, this has to be the
most important contribution the ICSC can do for its members. Two
other articles in Chain Store Age were interesting.
One was their editorial, which in essence said, "all specialty stores have a
finite life span and then should or will be forced out of existence after a given period
of time. I agree wholeheartedly. Nothing is forever and as another friend, Jeff
Levy, said, "There are only temporary tenants left today, no one stays the length of
their lease anymore." The rapid growth
of the category killers has also caused the rapid decline of the category killers. Computer City, Media Play, Best Buy and Incredible
Universe are just a few examples of companies getting "hot" and then cold in a
short period of time. The fact that Marshalls
"had" to be sold to TJX Companies or Pace to Wal*Mart (but in my opinion, that
was a brilliant move on Kmart's end, sell a losing division to their arch rival who can't
seem to make their version of the concept work either and you hurt 'em in the long run) or
Melville's decision to "spin off" Linens & Things and Bob's are another
example that these concepts have a limited potential and lifespan. This
ties into their last article, which is how the Internet will affect conventional
retailing. The answer? No one knows for sure, but it will be (in my
humble opinion) a lot sooner and a lot harder than most believe. Weak retailers and developers used to have years
before their failures forced them out of business. Today,
its a lot less time before incompetency shows up. Supermarkets
Seeking Sites H.E.
Butt Grocery Co. trades as HEB at 231 locations in LA, TX and Mexico. The supermarkets occupy spaces of 40,000 sq.ft. to
80,000 sq.ft. in freestanding facilities and strip centers.
Growth opportunities are sought in TX and Mexico. For more information, contact Eric Moede, H.E.
Butt Grocery Co., 646 South Main Avenue, San Antonio, TX 78204; 210-246-8000, Fax
246-8530. Demoulas/Market
Basket trades as Market Basket at 57 locations in MA and NH. The supermarkets occupy spaces of 50,000 sq.ft. in
freestanding facilities and strip centers. Plans
call for as many as six openings in the coming 18 months.
Expansion will take place in the existing markets. For more information, contact Michael Katenbach,
Demoulas/Market Basket, 881 East Street, Tewksbury, MA 01876; 508-851-0200, Fax 851-4962. Abco
Markets, Inc. trades as Abco Markets at 65 locations in AZ.
The supermarkets occupy spaces of 30,000 sq.ft. to 42,000 sq.ft. in freestanding
facilities and strip centers. Plans call for
as many as eight openings in the coming 18 months. Expansion
will take place in the existing market. For more information, contact Bob Baynes, Abco
Markets, Inc., 3001 West Indian School Road, Phoenix, AZ 85017; 602-222-1600, Fax
222-1346. Genuardi's
Family Markets operates 27 locations in DE and PA. The
supermarkets occupy spaces of 45,000 sq.ft. to 65,000 sq.ft. in power and strip centers. Plans call for five openings in the coming 18
months. Expansion will take place in DE, NJ
and PA. Leases running 30 years, including
options, are typical. For more information, contact Skip Genuardi,
Genuardi's Family Markets, 805 East Germantown Pike, Norristown, PA 19401; 610-277-6000,
Fax 279-5281. Hughes
Markets, Inc. trades as Hughes Family Markets at 53 locations in CA. The supermarkets occupy spaces of 38,000 sq.ft. in
freestanding facilities and strip centers. Plans
call for the opening of four units in the coming 18 months.
Expansion will take place in the existing market.
Leases running 25 years, with four options of five-years each, are typical. For more information, contact Richard Ramonette,
Hughes Markets, Inc., 14005 Live Oak Avenue, Irwindale, CA 91706; 818-856-6580, Fax
856-6040. Roche
Brothers Supermarkets, Inc. operates 13 locations in MA.
The supermarkets occupy spaces of 32,500 sq.ft. to 50,000 sq.ft. in freestanding
facilities and strip centers. Growth
opportunities are sought in MA. Preferred
demographics include a population of 30,000 within three miles earning $50,000 as the
average income. Leases running 30 years are
typical. For more information, contact Robert Annand, Roche
Brothers Supermarkets, Inc., 70 Hastings Street, Wellesley, MA 02181; 617-235-9400, Fax
235-3153. Exclusives:
Leasing & Management Assignments Harvey
Lindsay Commercial Real Estate (804-640-8700) has been named the exclusive leasing and
managing agent for Midtown Shopping Center in Norfolk, VA. Neal
Realty & Investments, Inc. (954-568-0530) has been awarded the exclusive marketing
contracts for Plaza 2800, a 9,080 sq.ft. project in Lauderdale Lakes, FL; Imperial Towers
North Shopping Center, a 9,111 sq.ft. project in Hallandale, FL; and Lauderdale Market
Place, a 260,725 sq.ft. project anchored by Blockbuster Video in Lauderhill, FL. United
Commercial Realty (210-822-5000) has been named the exclusive leasing agent for Grandview
Shopping Center in San Antonio, TX. The
105,000 sq.ft. project is anchored by Gabriel's Liquor Store. The company was also named the exclusive leasing
agent for Exchange Plaza in San Antonio, TX. The
144,000 sq.ft. project us anchored by Circuit City, Ross Dress For Less, Pier One Imports,
Bally's Fitness and Applebee's Restaurant. Outlots
and pad sites are available for lease. Lease
Signings Jones
Lang Wootton (202-331-3333) leased 11,000 sq.ft. to The Fitness Company at The Waterfront
Center in Georgetown, Washington, D.C. Garrick-Aug
Worldwide (212-850-0200) leased 6,000 sq.ft. to Cosmetics Plus on Fifth Avenue in New
York, NY. Montgomery
Group Affiliates (610-825-7100) leased 16,137 sq.ft. to Sneaker Stadium at Festival at
Hamilton in Mays Landing, NJ. United
Commercial Realty (214-526-6262) leased 6,050 sq.ft. to Blockbuster Video in Carrollton,
TX; 6,548 sq.ft. to Blockbuster Video at Green Oaks Plaza Shopping Center in Arlington,
TX; and 10,850 sq.ft. to Edwin Watts Golf in Dallas, TX. Who's
Opening and Where... Albertson's
(208-385-6200) recently opened a 50,222 sq.ft. supermarket in Upland, CA. The company also plans to open five supermarkets,
averaging 55,000 sq.ft., in San Antonio, TX by early 1997. Borders,
Inc. (313-913-1323) plans to open a 27,500 sq.ft. bookstore in Tampa, FL during the Fall;
a 27,500 sq.ft. unit in Monroeville, PA during November; a 20,000 sq.ft. unit at Grand
Traverse Crossing Shopping Center in Traverse City, MI during November and a 27,500 sq.ft.
unit in Creve Coeur, MO during November. The
company recently opened a store in Rocky Ridge Town Center in Roseville, CA. Hollywood
Entertainment (503-677-1600) is on pace to open 260 Hollywood Video stores this year and
is planning to open 200 stores next year. The
company, which currently operates 354 units in 22 states is looking to eventually become a
national chain with 2,000 stores. Sony
Theaters (212-833-6160) plans to open a 60,000 sq.ft. 12-screen Magic Johnson Theater that
will seat 3,500 at Northline Mall in Houston, TX during early 1997. GFS
Realty/Giant Food (301-341-8422) plans to open as many as 45 supermarkets in DE, NJ and PA
in the coming 10 years. The company currently
operates 165 supermarkets. Pathmark
(908-499-3357) is looking to develop a 53,000 sq.ft. supermarket in East Harlem, NY later
this year. RTM
Restaurant Group (404-256-4900), which is the largest Arby's franchisee with 307
restaurants, recently signed an agreement with Arby's that will allow RTM to open an
additional 210 units in the coming 10 years. Overall,
RTM is a franchisee of 515 restaurants in 14 states trading as Arby's, Del Taco, Lee's
Famous Recipe Chicken, Mrs. Winner's Chicken and Biscuits, Shoney's Family Restaurants and
Spinner's Rotisserie Chicken. RCS
Computer Experience (212-949-6935) plans to open a 7,000 sq.ft. store on Madison Avenue in
New York, NY during August. The store, the
company's second, will feature an Internet Center and a service center as well as computer
hardware and software. Venture
Stores, Inc. (314-281-5500) plans to reopen four stores in Indianapolis, IN during August. The company is reopening several stores because of
a turnaround in the company's financial condition. 47th
Street Photo (212-398-1530) plans to open a 12,600 sq.ft. store at The Source in Westbury,
NY during late summer 1997. Claire's
Stores (305-433-3900), which sells women's costume jewelry and accessories, recently
started test-selling junior clothing at its The Icing stores. If the test proves successful, the company plans a
nationwide roll-out of the concept. However,
if the concept fails, the company plans to convert the stores to Claire's Boutique units. U.S.
Factory Outlets, Inc. (212-563-3650) plans to open a 43,000 sq.ft. store in Tupelo, MS
during October. This store will be the first
of series of stores located in factory outlet centers. Act
III (503-221-0213) plans to open a 70,000 sq.ft. 17-screen movie theater at SuperMall of
the Great Northwest during the Fall. New
Construction Cencor
Realty Services recently broke ground in Arboretum Crossing in Austin, TX. The 250,000 sq.ft. project will be anchored by a 45,576 sq.ft. Circuit City, a 40,000 sq.ft. Baby
Superstore, an 18,900 sq.ft. Cost Plus, a 15,675 sq.ft. Just For Feet, a 15,000 sq.ft.
Mikasa China and a 10,000 sq.ft. Party City. The
project is expected to open during November. The
company is planning to break ground late this year on Round Rock Crossing in Round Rock,
TX. The 327,000 sq.ft. project will be
anchored by a 117,453 sq.ft. Target and an Applebee's restaurant. For more information, contact Tom Terkel of Cencor
Realty Services at (214-954-0300). CBL
& Associates Properties, Inc. recently broke ground on Springhurst Towne Center in
Louisville, KY. The 827,550 sq.ft. project
will be anchored by a 238,000 sq.ft. Meijer store, a 123,700 sq.ft. Target discount store,
an 86,000 sq.ft. Kohl's Department Store, a 77,000 sq.ft. 20-screen Cinemark USA movie
theater and a 42,000 sq.ft. Party Source store. Approximately
35,500 sq.ft. of specialty store space will be constructed and future expansion at the
project can accommodate seven more anchor stores. Space
for 13 freestanding buildings is also planned The
project is expected to open during Fall 1997. For more information, contact Mark Gramberg,
project manager ofCBL & Associates Properties, Inc. at (800-333-7310, Ext. 246). Peter
D. Cummins & Associates, Inc. is currently developing Bakery Square in Houston, TX. The 35,000 sq.ft. project will be anchored by a
15,120 sq.ft. Walgreens, a 6,484 sq.ft. Blockbuster Video and a 3,878 sq.ft. NationsBank. The project is expected to open during the fourth
quarter. For more information, contact Blake Tartt, III,
leasing represntative, of New Regional Planning, Inc. at (713-523-2929). Opus
Corporation is currently developing Stanford Ranch Crossing in Roseville, CA. The 380,000 sq.ft. project will be anchored by
Price Club, Sports Authority, Toys 'R Us and Linens 'N Things. Approximately 125,000 sq.ft. is available for
lease. The project is expected to open during
the fourth quarter of this year. The company
is currently developing Highland Grove in Highland, IN.
The 526,445 sq.ft. project will be anchored by Kohl's, Target, Marshall's, Jewel,
Circuit City and OfficeMax. Approximately
40,000 sq.ft. is available for lease. The
project is expected to open during the Fall. The
company is currently developing Eagan Promenade in Eagan, MN. The 350,000 sq.ft. project will be anchored by
Byerly's Foods, Barnes & Noble, HomePlace, OfficeMax and Pier One Imports. The project is expected to open during October. The company is currently developing Long Gate
Shopping Center in Ellicott City, MD. The
475,000 sq.ft. project will be anchored by Target, Kohl's, HomePlace, Safeway and Barnes
& Noble. Eight outparcels for restaurants
and service tenants will also be constructed. The
project is expected to open during the third quarter.
The company is also currently developing Centennial Promenade in Denver, CO. The 540,000 sq.ft. project is anchored by an
already opened Toys 'R Us in phase I. Phase
II anchors will include Borders Books, Ross Dress For Less, OfficeMax, HomePlace, American
Furniture Warehouse and Ultimate Electronics. Phase
II is expected to open during March 1997. For more information, contact the Opus Corporation
at (612-936-4568). McClinton
& Company, Inc. is developing Premiere Place in Pratville, AL. The 385,232 sq.ft. project will be anchored by a
200,072 sq.ft. Wal*Mart Supercenter which is expected to open during August. Anchor spaces of 35,000 sq.ft., 25,000 sq.ft. and
15,000 sq.ft. as well as 50,160 sq.ft. of specialty store space is also being constructed
with a scheduled delivery of Fall 1997. Four
outparcels are also available and the project has a future expansion area of 60,000 sq.ft. For more information, contact McClinton &
Company, Inc. at (334-270-9653). The
Gustine Company is planning to develop a 375,000 sq.ft. power center in Easton, PA. The project will be anchored by a home improvement
center, a junior department store, a supermarket and a book superstore. The company is planning to develop a 345,000
sq.ft. power center in Greensburg, PA. The
project will be anchored by Lowes Home Improvement Center and an electronics store. The company is planning to develop a 240,000
sq.ft. power center in Hazleton, PA. The
project will be anchored by Lowes Home Improvement Center and Weis Supermarket. The company is also planning to develop a 500,000
sq.ft. power center in Reading, PA. The
project, which will be located adjacent to Berkshire Mall, will be anchored by a junior
department store, a discount store, a supermarket, a movie theater and a book superstore. For more information, contact Douglas J. Kyle of
The Gustine Company at (412-381-1122). Hapsmith
Development Corporation recently began the site clearing for SuperMall of the Southwest in
Irving, TX. The 1.3 million sq.ft. project
will have nine anchor stores as well as specialty store space linked in a one-story oval
floor plan with four thematic entrances. The
tenant mix will include manufacturer outlet stores, traditional retailers, catalog outlet
stores, value-oriented retailers and category dominant store. The project is expected to open during Summer
1998. For more information, contact Sheila Lynch of
Hapsmith Development Corp. at (214-953-0808). Mergers
& Acquisitions New
England Development (617-243-7000) recently agreed in principal to merge its property
management and leasing businesses with those from the O'Connor Group (212-308-7700). Under the agreement, the two companies will
contribute their property management agreements to a new company that would be jointly
owned by the two companies. Ownership of the
malls developed by the two companies are not included in the deal. Buffets,
Inc. (612-942-9760) and HomeTown Buffet, Inc. (619-546-9096) recently announced that they
have signed a definitive agreement to combine the two companies through the merger of
HomeTown Buffet, Inc. with a newly formed, wholly owned subsidiary of Buffets, Inc. Buffets currently operates and franchises 258 Old
Country Buffet restaurants while HomeTown Buffet operates and franchises 93 HomeTown
Buffet units and two Roadhouse Grill units. The
agreement is subject to approvals by both companies' shareholders and is expected to be
completed by the end of the year. Rock
Bottom Restaurants, Inc. (303-417-4000) recently acquired a 50% equity interest in Big
River Grille & Brewing Works. Upon
completion of the transaction, Rock Bottom will execute a 50-50 joint-venture development
agreement with Big River for the development and expansion of additional restaurants. Big River currently operates two restaurants in
Chattanooga and Nashville, TN. A third unit
is expected to open this month at Disney's Boardwalk within the Walt Disney World Resort
in Lake Buena Vista, FL. Rock Bottom
currently operates 40 restaurants trading as Rock Bottom Restaurant & Brewery and Old
Chicago. Clearview
Cinema Group, Inc. (201-377-4646) recently acquired 19 screens at four locations from
Nelson-Ferman theaters. The acquired sites
include The Allwood Sixplex in Clifton, NJ; the Emerson Quad in Emerson, NJ; the
Washington Triple in Washington Township, NJ and the Cinema 6 in New City, NY. Following the acquisition, Clearview Cinemas
operates 40 screen at 11 locations. Fay's
Incorporated (315-451-8000) recently entered into a definitive agreement to sell the
inventory and store assets of its Paper Cutter Division, totalling 29 stores in NY, to The
Party Experience, Inc., a wholly owned subsidiary of Party Stores Holdings, Inc. for
approximately $14 million in cash. The Party
Experience operates 18 Paperama Stores and 20 Party Experience stores in New England and
NY. Real
Estate Professionals Making The News Galbreath
Company/Alexander Summer Division (201-984-1717) announces that Susan Schott has been
promoted to executive vice president and Susan Walsh has been promoted to vice president
of finance. KLNB,
Inc. (703-356-8230) announces that Michael Patz has joined the company. He will specialize in leasing, sales and tenant
representation in the Baltimore, MD area. Hapsmith
Development Corp. (214-953-0808) recently appointed Sheila Lynch to the position of vice
president of corporate communications and leasing for the company's SuperMall projects. In this role, Lynch will direct communications and
leasing activities for the company's two SuperMalls--the SuperMall of the Great Northwest
in Auburn, WA and SuperMall of the Southwest currently under development in the Dallas/Ft.
Worth, TX area. The company announced that
Scott Fisher has joined the company as a leasing executive for the company's SuperMall
projects. R.J.
Brunelli & Co. (908-721-5800) announces that Steven F. Albert has joined the company
as a leasing representative. In his new
position, Albert will be responsible for leasing and tenant representation. Most recently, Albert was senior vice president
and assistant corporate secretary at Felsway Corp., parent of Shoe-Town where his
responsibilities included developing strategy and policies for three retail divisions,
controlling all real estate transactions and managing the liquidation of over 100
Shoe-Town leases. The
Linder Company (317-844-5313) announces that David Sheehy has been promoted to senior
leasing representative. His new
responsibilities will include assisting with management of accounts and leasing agents as
well as new business development. The company
also announces that Scott Gray has been promoted to vice president of leasing. His new responsibilities will include recruiting
additional leasing personnel and enhancing the company's training programs. Richard
Bowers & Co. (404-816-1600) announces that Richard English has joined the company as
vice president in the firm's retail group. English's
responsibilities will include retail brokerage, tenant representation, land sales and
space disposition. Buyers
& Sellers of Commercial Properties Pyramid
Brokerage Company, Inc. recently brokered the sale of three sites to Genuine Parts
Company. The locations include a pad site at
a Wal*Mart store in Syracuse, NY; a site at State Fair Boulevard at Hiawatha Boulevard in
Syracuse, NY and a site on Route 11 in North Syracuse, NY.
Genuine Parts Company plans to build 8,000 sq.ft. freestanding stores at all three
locations. For more information, contact Larry Socia at
(315-445-8501), Fax (445-2074). Allen
Fuller Co. Realtors has the listing to sell single tenant net leases for Eckerd, Best Buy,
Good Guys, Hollywood Video, etc. The company
also represents investors in the market to acquire single tenant retail leases. Preferred leases have upside as well as CPI or
periodic increases. Prices from $3 million to
$50 million will be considered. For more information, contact David Mufson of
Allen Fuller Co. Realtors at (305-532-0881), Fax (532-0882). Auburndale
Properties, Inc. recently acquired Key Plaza Shopping Center in Key West, FL. The 226,800 sq.ft. project is anchored by Kmart,
Byrons, Blockbuster Video and Radio Shack. Leasing
opportunities up to 40,000 sq.ft. are available. For more information, contact Michael Silvershein
at (201-930-8800). H.
Stephen Kirschner, Inc. has the listing to sell a newly constructed 300,000 sq.ft. power
center anchored by Best Buy, OfficeMax and Barnes & Noble. The project is adjacent to a regional mall. The asking price is based on a 10% cap. The company also has the listing seeking an equity
investor for a 100,000 sq.ft. supermarket anchored project currently under construction in
the Mid-Atlantic region. An investment of up
to $2 million is needed for a 20% annual return. The
project is expected to open late this year. The
company represents a private investment trust in the market to acquire regional mall
portfolios nationwide. Secondary and tertiary
markets will be considered as will individual "A" location and "A"
grade malls at fair market values. The trust
acquires on a long term hold basis. For more information, contact H. Stephen Kirschner
at (516-462-2200), Fax (499-3322). Lead
Sheet Barnie's
Coffee & Tea Co., Inc. dba
Barnie's Coffee & Tea Co. Philip
Jones 340
North Primrose Drive Orlando,
FL 32803-5889 407-894-1416,
Fax 898-5341 Food The
96-unit chain operates locations along the East Coast.
The stores, offering gourmet coffees and teas, occupy spaces of 1,000 sq.ft. in
regional malls. Growth opportunities are
sought in FL, NY and Washington, D.C. Checkers
Drive-In Restaurants dba
Checkers Drive-In Mike
Dew PO Box
1079 Clearwater,
FL 34617 813-441-3500,
Fax 461-0136 Food The
505-unit chain operates locations nationwide. The
drive-through fast food restaurants occupy spaces of 875 sq.ft. in freestanding
facilities. Growth opportunities are sought
in the Eastern region. Chicago's
Pizza Franchises dba
Chicago's Pizza Robert
McDonald 1111
North Broadway Greenfield,
IN 46140 317-462-9878,
Fax 462-8551 Food The
10-unit chain operates locations throughout IN. The
restaurants, serving pizza, sandwiches and salads, occupy spaces of 2,200 sq.ft. in
freestanding facilities. Plans call for one
opening in the coming 18 months. Expansion
will take place in either IL, KY, MI or OH. The
company is franchising. Chubby's Kris
Edwards 11638
Fair Oaks Boulevard Fair
Oaks, CA 95628 916-966-7773,
Fax 863-6778 Food The
55-unit chain operates locations in AR, CA, NV, OR, VA and WA. The restaurants, serving breakfast, lunch and
dinner in a 1950's ambiance, occupy spaces of 1,200 sq.ft. to 1,500 sq.ft. in freestanding
facilities and strip centers. Growth
opportunities are sought in the existing markets. Cousins
Submarines, Inc. dba
Cousins Submarine Sandwich Shop James
Schrank N83W13400
Leon Road Menomonee
Falls, WI 53051 414-253-7700,
Fax 253-7710 Food The
102-unit chain operates locations in AZ, IL, MN and WI.
The restaurants, serving sandwiches, soups and salads, occupy spaces of 1,500
sq.ft. to 2,000 sq.ft. in downtown store fronts, freestanding facilities and strip
centers. Growth opportunities are sought in
the existing markets. Creative
Foods Corp. dba
Burger King Joe
Della Monica 310
East Shore Road, Suite 207 Great
Neck, NY 11023 516-466-3880,
Fax 466-5680 Food The
16-unit chain operates locations in NY. The
fast food restaurants occupy spaces of 3,000 sq.ft. in freestanding facilities, regional
malls, power and strip centers. Growth
opportunities are sought in the existing market. Diedrich
Coffee Eric
Lambiase 2144
Michelson Drive Irvine,
CA 92715 714-260-6785,
Fax 260-1610 Food The
33-unit chain operates locations in CA, CO and TX. The
stores, selling coffee and pastries, occupy spaces of 1,500 sq.ft. to 2,200 sq.ft. in
freestanding facilities, regional malls and end caps of strip centers. Plans call for 40 openings in the coming 18
months. Expansion will take place in the
existing markets. Donatos dba
Donatos Pizza John
Kraft 935
Taylor Station Road Columbus,
OH 43004-9538 614-864-2444,
Fax 575-4466 Food The
100-unit chain operates locations in KY, IN, MI and OH.
The restaurants, serving pizza, occupy spaces of 1,200 sq.ft. to 3,300 sq.ft. in
freestanding facilities and strip centers. Plans
call for as many as 75 openings in the coming 18 months.
Expansion will take place in KY, IN, MI, NC, OH, SC and TN. El
Centro Foods, Inc. dba
Pizza Man "He Delivers" Robert
Ohanian 6930
1/2 Tujunga Avenue North
Hollywood, CA 91605 818-766-4395,
Fax 766-1496 Food The
52-unit chain operates locations in CA. The
pizza restaurants occupy spaces of 800 sq.ft. to 1,200 sq.ft. in strip centers. Growth opportunities are sought in the existing
market. Emil
Villa's California Barbecue Dave
Price 2730
Cavanaugh Court Hayward,
CA 94545 510-786-0666,
Fax 786-0984 Food The
seven-unit chain operates locations in CA. The
restaurants occupy spaces of 6,500 sq.ft. in freestanding facilities and power centers. Growth opportunities are sought in the existing
market. The
Jan Companies dba
East Side Mario's Nicolas
Janikies 35
Sockanosset Cross Road Cranston,
RI 02920 401-946-4000,
Fax 946-4392 Food The
eight-unit chain operates locations in MA and RI. The
casual Italian restaurants occupy spaces of 6,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing
markets. Java
Centrale Shari
Dorenkamp 1610
Arden Way, Suite 145 Sacramento,
CA 95815 916-568-2310,
Fax 568-1240 Food The
35-unit chain operates locations in AZ, CA, FL, IL, MA, MD, NV, NY and TX. The restaurants, serving sandwiches, soups,
salads, pastries, coffee drinks, gourmet coffees and Italian sodas, occupy spaces of 100
sq.ft. to 2,000 sq.ft. in downtown store fronts, power and strip centers. Growth opportunities are sought nationwide. Le
Peep Restaurants, Inc. dba Le
Peep Mitch
Rhodes 4 West
Dry Creek Circle #201 Littleton,
CO 80210 303-730-6300,
Fax 730-7105 Food The
61-unit chain operates locations in AZ, CA, CO, CT, FL, GA, IL, IN, IA, KS, MI, MN, NE,
NJ, NM, NY and Washington, D.C. The
restaurants, serving breakfast and lunch, occupy spaces of 2,500 sq.ft. to 3,500 sq.ft. in
freestanding facilities and strip centers. Plans
call for as many as eight openings in the coming 18 months.
Expansion will take place nationwide. Legal
Sea Foods, Inc. dba
Legal Sea Foods John
Olson 33
Everett Street Allston,
MA 02134 617-783-8084,
Fax 254-5573 Food The
13-unit chain operates locations in MA, RI, VA and Washington, D.C. The seafood restaurants occupy spaces of 9,000
sq.ft. in downtown store fronts and regional malls. Plans
call for three openings in the coming 18 months. Expansion
will take place in either MD, NJ, PA, VA or Washington, D.C. Little
King Sid
Wertheim 11811
I Street Omaha,
NE 68137 402-330-8019,
Fax 330-3221 Food The
50+-unit chain operates locations nationwide. The
fast food restaurants occupy spaces of 1,000 sq.ft. to 1,800 sq.ft. in freestanding
facilities, regional malls, outlet and strip centers.
Plans call for at least 10 openings in the coming 18 months. Expansion will take place nationwide. Luby's
Cafeterias, Inc. dba
Luby's Cafeteria Carl
Cheaney PO Box
33069 San
Antonio, TX 78265 210-654-9000,
Fax 599-8407 Food The
197-unit chain operates locations in AR, AZ, FL, KS, LA, MO, MS, MT, NM, OK, TN and TX. The cafeteria-style restaurants occupy spaces of
9,500 sq.ft. in freestanding facilities, regional malls and strip centers. Growth opportunities are sought in the existing
markets. Mack
Enterprises dba
Ninety Nine Restaurant Dana
Doe 160
Olympia Avenue Woburn,
MA 01801 617-933-8999,
Fax 933-0821 Food The
38-unit chain operates locations in MA and NH. The
family style restaurant and pubs occupy spaces of 6,000 sq.ft. in freestanding facilities
and power centers. Plans call for eight
openings in the coming 18 months. Expansion
will take place in the existing markets as well as RI. Financial
News... Eckerd
Corporation (813-399-6355) reported that its first quarter net income increased 29% to
$39.4 million from $30.5 million during the same quarter last year. First quarter sales were $1.4 billion, an 11.1%
increase over last year's results. The
operating profit for the quarter increased $65.7 million from $59.5 million last year. Comparable store sales increased 8.9%. The company operates 1,715 Eckerd Drug stores and
517 Eckerd Express one-hour photo labs. PriceCostco,
Inc. (206-313-8255) reported that its third quarter net sales were $4.24 billion, an 11%
increase over $3.82 billion reported during the third quarter last year. Net income for the quarter increased 27% to $41.3
million from $32.6 million and comparable store sales increased five percent. During the third quarter, the company closed five
units. The company currently operates 250
warehouses throughout North America. Circuit
City Stores, Inc. (804-527-4000) reported that sales for the first quarter were $1.61
billion, a 16% increase from $1.39 billion reported last year. Comparable store sales fell 4%. The company currently operates 386 superstores,
five consumer electronics-only stores, 38 Circuit City Express stores and five CarMax
Superstores. Family
Dollar Stores, Inc. (704-847-6961) reported that its third quarter sales increased 12.7%
to $427.9 million, compared to $379.8 million during the third quarter last year. Comparable store sales increased 5.8% for the
quarter. The company currently operates 2,522
stores in 38 states. Genovese
Drug Stores, Inc. (516-420-1900) reported that its operating profit for the first quarter
increased 36.7% to $3.543 million from $2.591 million last year. Net income for the quarter fell to $1.285 million
from $1.543 million last year. Total sales
for the quarter increased 12.2% to $200.823 million.
Comparable store sales increased 7.8%. During
the quarter, the company opened one store and is planning to open as many as 10 drug
stores during the remainder of the year. The
company currently operates 121 units in CT, NJ and NY. Quality
Dining, Inc. (219-271-4600) reported that its second quarter income from restaurant
operations increased 90% to $7.5 million from $4 million during the second quarter last
year. Net income increased 83% to $2.1
million from $1.1 million last year. Second
quarter restaurant sales increased 130% to $55.4 million from $24.1 million last year,
primarily from the addition of revenues derived from the company's 42 Grady's American
Grill restaurants acquired during the first quarter of FY96. Currently, the company operates 63 Burger King
restaurants, 42 Grady's units, 21 Bruegger's Bagel Bakeries, 19 Chili's Grill & Bar
restaurants and five Spageddies Italian Kitchen restaurants. Arby's
(305-351-5100) recently changed its corporate name to Triarc Restaurant Group and is
planning to change the name of its Arby's restuarants to Roast Town. The company plans to convert 50 corporate-owned
Arby's units to Roast Town by the end of this year and the remaining 320 units in the
coming year. Several of the company's largest
franchisees will convert their Arby's units as well.
Roast Town is the company's fast-casual concept that is co-branded by Zuzu's, P.T.
Noodles and T.J. Cinnamon's. Developers
Converting, Expanding & Renovating Shopping Centers CBL
& Associates Properties, Inc. is expanding and renovating Twin Peaks Mall in Longmont,
CO. The 550,000 sq.ft. project, which is
anchored by a 93,600 sq.ft. Joslins, a 75,000 sq.ft. Sears and a 50,904 sq.ft. J.C.
Penney, will be receiving a 94,000 sq.ft. Dillard's Department Store and a 34,000 sq.ft.,
10-screen United Artists Theatre. The movie
theater is expected to open during December, and Dillard's is expected to open during
1997. In addition to the expansion, Sears,
Claire's Boutique, Cyberstation, Gart Sports, General Nutrition Center and Trade Secrets
recently completed renovations to their stores. Other
renovations at the mall will include new food court amenities, new entrances, new floors,
new skylights, new landscaping and interior renovations. For more information, contact Jerry Sink, vice
president of mall management at CBL & Associates Properties, Inc. at (423-855-0001),
Fax (490-8662). Belz
Enterprises is currently constructing a 60,000 sq.ft. expansion at Belz Factory Outlet
Mall-Lakeland in Lakeland, TN. The addition
to the 320,000 sq.ft. project will be anchored by a 20,000 sq.ft. Off 5th-Saks Fifth
Avenue Outlet store, a 7,500 sq.ft. Footlocker outlet store and a 3,500 sq.ft. Danskin
outlet store. Construction is expected to be
completed during Fall. Retailers currently
found at the project include Van Heusen, Bugle Boy, Corning-Revere, Hush Puppies, Bass
Company Store, Casual Corner, Dress Barn, Hit or Miss and Rack Room Shoes. For more information, contact Andy Groveman,
president of Belz Factory Outlet Mall Division at (901-762-7278). Heitman
Retail Properties is currently expanding The Falls Shopping Center in Miami, FL by 405,000
sq.ft., taking its current GLA from 450,000 sq.ft. to 855,000 sq.ft. The project, which is anchored by Bloomingdale's
and a 12-screen United Artists Theater, will be receiving a 230,000 sq.ft. Macy's as well
as 175,000 sq.ft. of specialty store space. Forty
additional retailers will be occupying the new space, including several that are new to
the Dade County area, FL and the U.S. Opening
its first U.S. store will be Mh Way. Openings
their first FL stores will be BCBG, Baby Guess?, Guess?Home, Giorgio Brutini, J.Crew,
Rampage and WPBT Store of Knowledge. Retailers
coming to Dade County for the first time include Bebe, Coach, Crate & Barrel, Bailey
Banks & Biddle, Enzo Angiolini, Eye-X, Garden Botanika, Jessica McClintock, Papyrus,
Pottery Barn and Sweet Factory. Other
retailers occupying the new space include The Athlete's Foot, Barnie's Coffee & Tea,
Bentley's Luggage, Capricorn Shoes, Carlton Cards, Chico's, The Forum, Gordon's Jewelers,
Gymboree, Haagen Dazs, Johnny Rockets, Lechters, On The Shore, Palm Beach Confection,
Regis Salon, Structure, Sunglass Hut, Surf City Squeeze, Talbots and What's In Store. Current tenants AnnTaylor, Bath & Body Works,
Laura Ashley, Limited Express and Mayor's Jewelers all have expanded their stores. Other tenants found at the project include
Williams-Sonoma, The Gap, Gap Kids, Victoria's Secret, Polo/Ralph Lauren, Origins, Mimi
Maternity, Brookstone, Cache, The Limited, Bombay Company and Banana Republic. The expansion is expected to be completed during
October. Future expansion plans call for the
addition of two department stores occupying 320,000 sq.ft. For more information, contact Gerry Bovenkamp,
General Manager of The Falls Shopping Center at (305-255-4570), Fax (235-7248). |