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Issue Number 34
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The Dealmakers Issue Number 34 for the week of September 18, 1998. It Keeps Growing & Growing & Growing & Growing & Growing & Growing & Growing & Growing( I Guess You Get The Gist ) Ann and I attended the Florida ICSC dealmaking event in Orlando and it was hot. First in the "bad" way, the heat and humidity was unbearable, but also it was hot in a "good" way, the show is great and keeps getting better. Over 2,400 dealmakers were present, which set a record over last year’s record breaking show. If you think about it, with over 2,400 dealmakers, it represents about seven percent of the ICSC’s entire membership, which is remarkable. There’s only a handful of shows, besides Vegas, that have this high of a turnout. Retailers wise, there appears to be a higher percentage of retailers walking the floor than any other show. Several retailers told me that the three "hot" spots for them are California, Texas and Florida and they always do well at these three shows, sometimes better than Vegas. The only two negatives about the show is the heat outside and that if the show continues to grow, the ICSC might (but they are trying hard to avoid it) have to move the location from the Cyprus Gardens, which is one of my favorite hotels in the country. The staff and facilities are great and extremely accommodating. The show is there for next year and with a little luck, for many years thereafter. Ever retailer I spoke to had an open to buy on new locations, it wasn’t an unlimited open to buy, but they were being aggressive and were willing to speak to everyone, so if you were a broker or developer, you had a willing ear to make your pitch. While we were exhibiting, Ann and I spent a lot of time walking the floor and saw a preponderance of financial institutions begging to loan money. One developer said he closed on a loan a few days before the show at 6 7/8%, 2 points, 30 years and non recourse. He was a happy trooper. What amazed me, one large developer with three major projects being built in Florida, had only one person at their booth, with obsolete graphics, handouts and materials on the centers; just one large leasing plan he showed to prospective tenants, but nothing they could walk "home" with. Talk about being unprepared and unprofessional. I was talking to one developer who was marketing nine centers, Ann joined us and after a brief conversation made a pitch for them to advertise in the Dealmakers ( Josh’s tuition is due). His response was there’s no need to advertise, since they were in the process of setting up a Web site and that would handle it. I commented that if he didn’t want to advertise with us, I could understand (but Ann has problems with that concept), but if they think that the Net will resolve all their marketing problems, he doesn’t understand the Internet, Home Pages or leasing. We got into a brief "discussion" and after five minutes I decided that since he wasn’t paying me for advice, the hell with him, let him screw up and waste thousands of dollars. Without sounding like a fanatic, no one in the industry has been promoting being on-line or Home Pages longer than me and I think the Net is phenomenal, but it’s a tool, not a cure to all your ills. I also went to the Value Retail News conference and dealmaking held in Atlanta and what a difference an industry makes. I haven’t been to an offprice/outlet show in five to seven years and its was half the size of the shows I used to attend. Also, the excitement/vigor that you encounter at an ICSC dealmaking event was missing. What used to be an industry of innovators and entrepreneurs is almost (don’t take this personal) an industry of has beens. A number of attendees complained the show was slow because it was held the week before Labor Day and people were either going away or taking their kids to college. I don’t agree with that excuse, but I do agree with their contention it’s smaller because of the vast consolidation, especially among REITs. One of the luncheon speakers gave a statistic that said 65% of all outlet centers are owned by six or seven players...talk about consolidation. Another reason the attendance isn’t as high is there is not the same amount of brokers involved in outlet retailing as there are in traditional retailing. I have no idea why, but there isn’t and many of the brokers involved appear not to have a great reputation. On the subject of consolidation, one of the prime complaints I heard from retailers is that the day to day operation of the centers are deteriorating. Yes, the parking lot is clean and the shrubbery is kept up, but the promotional activity of the centers are becoming boring, standardized and don’t pull like they used to. They contend that the REITs have centralized everything to save money, which they have, but they lack creativity and events geared towards an individual market.. Of course the prime reason for the lackluster event is that business stinks and therefore new development and rapid expansion is limited. In my humble opinion, business stinks because the retailer stinks even more. I’ve been in a dozen outlet centers in the last few months and there’s few real bargains available. In most cases I could do better at Macy’s and the selection would be better. I saw a Polo pullover I like that was "on-sale" for $39.99. Looked good, the price was great, so I went to buy it and than made the mistake of picking it up. It was half the weight of a "real" Polo. Yes, it was manufactured by Polo (or at least licensed by Polo) but it was manufactured for their outlet stores at a different weight so it could be sold cheaper. They weren’t offering bargains, they were offering cheap merchandise at cheap prices. The public may not be bright, but they are not that stupid. The retailer deserves poor sales. Parting thoughts, a friend of mine (or at least a decent acquaintance) runs one of the most popular Home Pages on real estate (http://www.pikenet.com) and in addition to the vast amount of information he provides, there’s an e-mail "newsletter" he provides for those interested. Anyway, a week or two ago he did an interesting article on REITs and their follow up. His opening line was "For a bit of fun, I decided to test how quickly large REITs would respond to an inquiry for leasing space. So I sent e-mail to large REITs outing space requirements in Denver, Boston, and New Jersey." Overall the REITs performed poorly, either not getting back to him or taking more than a week. Only one responded promptly. God, companies spend hundreds of thousands of dollars on Home Pages and e-mail and then a real live customer comes along and it seems no one is reading the e-mail. Talk of stupidity, and it’s not just REITs that are guilty of this sin, the vast majority of all types of companies are. The advantage of the Net and e-mail is instant communication and it isn’t happening. Even if you build it and they come, what good is it if you don’t follow up. Retailers Expanding in the Western States Chick’s Sporting Goods, Inc. trades as Chick’s
Sporting Goods at eight locations in CA. The sporting goods stores occupy spaces of
40,000 sq.ft. to 50,000 sq.ft. in freestanding facilities and power centers. Growth
opportunities are sought in the existing market. Leases running 20 years are typical and
the company prefers a vanilla shell. Save Mart Supermarkets of California trades as Save Mart, Smart
Foods and Food Max at 91 locations in CA. The supermarkets occupy spaces of
45,000 sq.ft. in freestanding facilities and strip centers. Plans call for five openings
in the coming 18 months. Expansion will take place in the existing market. Leases running
50 years are typical. Krause’s Custom Crafted Furniture, Inc. trades as Krause’s
Custom Crafted Furniture and Castro Convertibles at 88 locations in AZ, CA, CO,
CT, FL, IL, NV, NJ, NM, NY, TX and WA. The furniture stores occupy spaces of 10,000 sq.ft.
to 12,000 sq.ft. in freestanding facilities, power and specialty centers. Growth
opportunities are sought in AZ, CA, CO, IL, NV, NM, TX and WA. Preferred demographics
include a population of 300,000 within five miles earning $35,000 to $100,000 as the
average income. Leases running seven to ten years are typical. Ralphs Grocery Co. trades as Ralphs and Food 4 Less
at 326 locations in CA. The warehouse-style supermarkets occupy spaces of 51,000 sq.ft. to
59,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are
sought in the existing market. Fisco Farm & Home Stores operates nine locations in CA. The
stores, selling apparel, hardware, farm supplies and pet supplies, occupy spaces of 18,000
sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market.
The company prefers to locate its stores in rural locations. Leases running five years,
with options, are typical. GKM Enterprises, Inc. does business as Hooper Camera & Video
Centers at nine locations in CA. The stores, offering photographic supplies and photo
processing services, occupy spaces of 2,000 sq.ft. in strip centers. Preferred anchors
include supermarkets. Plans call for two openings in the coming 18 months. Expansion will
take place in Southern CA. Leases running five years, with options, are typical. Auto Parts Club trades as Auto Depot at one location in CA.
The store, selling automotive parts and accessories, occupies a 30,000 sq.ft. freestanding
facility. Growth opportunities are sought in the existing market. Preferred demographics
include a population of 350,000 within five miles earning $40,000 as the average income.
Leases running 20 years are typical. Family Bargain Corp. does business as Factory To U and General
Textiles at 149 locations in AZ, CA, NV, NM, OR, TX and WA. The stores, selling
general merchandise, apparel and housewares, occupy spaces of 10,000 sq.ft. to 18,000
sq.ft. in power centers and regional malls. Plans call for 45 openings in the coming 18
months. Expansion will take place in the existing markets. Bag N’ Baggage trades as Bag N’ Baggage, Biagio
Luggage and Robertos at 82 locations in AZ, CA, CO, NV, NM, OK, TX and WA. The
luggage stores occupy spaces of 2,000 sq.ft. to 2,500 sq.ft. in regional malls. Growth
opportunities are sought in the existing markets. Leases running seven years are typical. Delrose Shoe Co., Inc. does business as Freeman’s Shoes
and Coast Footwear at 11 locations in CA. The family shoe stores occupy spaces of
4,000 sq.ft. to 6,000 sq.ft. in freestanding facilities, regional malls and strip centers.
Preferred co-tenants include fashion retailers. Growth opportunities are sought in the
existing market. U.S. Factory Outlets, Inc. trades as U.S. Factory Outlets at
25 locations nationwide. The stores, which are factory outlets 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 eight 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 or less as the average income. Leases running 10 years,
with three five-year options, are typical. Leisure Entertainment Corp. trades as Laser Quest at 54
locations throughout North America. The laser tag entertainment facilities occupy spaces
of 8,700 sq.ft. to 10,000 sq.ft. in freestanding facilities and strip centers. Plans call
for 24 openings annually. Expansion will take place throughout North America. Preferred
demographics include a population of 250,000 within seven miles earning $40,000 as the
average income. Leases running 10 years are typical. Mergers and Acquisitions AFC Enterprises, Inc. (770-391-9500) recently signed a purchase agreement with Cinnabon International, Inc. The deal is expected to close by the end of the month. Cinnabon operates and franchises 358 cinnamon roll bakeries in 39 states, Canada and Mexico. AFC plans to operate Cinnabon within its Bakery Cafe Group which also includes Chesapeake Bagels, Bakery & Cafe and Seattle’s Best. CORT Business Services Corporation (703-968-8500) recently completed its acquisition of Instant Interiors Corporation. Instant Interiors operates 10 rental showrooms in the IL, IN, MI and OH. Following the acquisition, CORT operates 118 rental showrooms, 80 furniture clearance centers and 74 warehouses in 32 states. Apple South, Inc. (706-342-4552) continued its divestiture of its Applebee’s Neighborhood Grill & Bar restaurants by selling 18 units in WI to Wisconsin Hospitality Group, LLC; 16 units in Nashville, TN to Woodland Group, Inc. and four units in Rockford, IL to Bloomin’ Apple, LLC. The combined selling price was $59.5 million. Following these transactions, the company has sold 161 Applebee’s units, has 80 more under contract and 38 units in two markets in which the company has written offers. Galveston’s Steakhouse Corp. (909-789-7606) recently reached a definitive purchase agreement with Paragon Steakhouse Restaurants, Inc. to acquire all 80 of its U.S.-based restaurants and a restaurant food distribution company. Paragon Steakhouse Restaurants is owned by Kyotaru Co., Ltd. of Japan. Galveston, which plans to change its name to Group Steakhouse Corp., is receiving financing from Trenwith Securities, Inc., Ally Capital Corp. and Structure Management. Currently, Galveston operates two Cutter’s Roadhouse restaurants in CA. Paragon’s restaurants trade as Hungry Hunter, Mountain Jack’s and Carvers. Apparel Retailers Expanding in The Western States Barcelino Continental Corp. trades as Barcelino and Barcelino
Per Donna at nine locations in CA. The men’s apparel stores occupy spaces of
4,000 sq.ft. space in downtown store fronts and specialty centers. Plans call for three
openings in the coming 18 months. Expansion will take place in CA, OR and WA. Leases
running 10 years are typical and the company prefers a tenant allowance. Arizona Outfitters operates eight locations in AZ. The stores,
selling western and outdoor clothing, occupy spaces of 4,000 sq.ft. in regional malls.
Growth opportunities are sought in the existing market. Preferred demographics include a
population of 500,000 within five miles earning $28,000 as the average income. Leases
running 10 years are typical. Cargoland, Inc. does business as Red Eye and Zoom at
23 locations in AZ and CA. The stores, selling junior apparel and accessories, occupy
spaces of 1,200 sq.ft. to 1,300 sq.ft. in regional malls. Plans call for at least three
openings in the coming 18 months. Expansion will take place in the existing markets.
Leases running five years are typical. Buffalo Exchange trades as Buffalo Exchange and Buffalo
Kids at 16 locations in AZ, CA, NV, NM, OR, TX and WA. The stores, selling new and
used clothing, occupy spaces of 2,000 sq.ft. to 3,500 sq.ft. in freestanding facilities
and strip centers. Plans call for 10 openings through 1999. Expansion will take place in
CA, ID, LA, OR and TX. Leases running three years, with options, are typical. Everything But Water, Inc. trades as Everything But Water at
29 locations in AZ, CA, FL, IN, MN, OH, SC and TN. The stores, selling swimwear and
accessories, occupy spaces of 1,500 sq.ft. in regional malls. Plans call for 10 openings
in the coming 18 months. Expansion will take place in the existing markets. Leases running
six years, with options, are typical. Sources of Financing ACE Cash Express, Inc. (972-550-5000) has received a $90 million working capital revolver and a $35 million line of credit available January 1, 1999. The credit facility began syndication in April with a $110 million commitment and was oversubscribed by more than 25%. ACE increased the facility to $125 million. Wells Fargo & Company is the lead agent and Chase Bank is the co-agent. Other participants are First Union Corp., Guaranty Federal Bank, F.S.F., NationsBank, N.A. and Paribas. The facility provides ACE with a $90 million revolving line of credit to support working capital needs. In addition, ACE obtained a $35 million term facility to refinance its current term loan. Crown American Realty Trust (814-535-9347) recently closed on a $465 million 10-year mortgage loan with GE Capital Real Estate. The new loan is secured by cross-collateralized mortgages on 15 of Crown’s regional malls with only limited recourse to the company. The loan bears interest at an annual fixed rate of 7.43% and is payable monthly, interest only during the first two years, and then amortizing during the last eight years based on a 25-year amortization schedule, with the remaining principal balance due on September 10, 2008. Loan proceeds were used to refinance $280.6 million in existing mortgage loans issued in 1993 as part of the company’s initial public offering, a $110 million interim loan with GECRE secured by two of the 15 mortgaged mall properties, and a $30 million secured term loan. The remaning proceeds were used to establish an $8.7 million reserve to fund the remaining costs of the Patrick Henry and Nittany Mall expansion projects, to pay at closing $4.1 million of loan financing costs and expenses, to pay $16.6 million in prepayment penalties with respect to the $280.6 million existing mortgage loans and the $30 million secured term loan, and $12.1 million in prepaid interest and various real estate tax, capital improvement and related loan reserve funds. In addition, the company received approximately $23 million at closing from various reserves and deposits it had established previously with respect to the new loan and the loans that were repaid. These returned desposits together with the remaining net loan proceeds amounted to $25.9 million, which was used to pay down the company’s existing general working capital line of credit with GECRE. Who’s Opening & Where Thrift Management, Inc. (954-985-8430) recently opened a 10,000 sq.ft. Think Thrift! store in Pompano Beach, FL. The company, which currently operates six stores in the Miami-Dade and Broward county markets, is planning to open stores in central and northern FL. The stores offer a variety of budget-priced new and used merchandise, such as apparel, housewares and linens, toys, furniture, small appliances, books and records. The company’s merchandise is obtained both through direct donations of goods and through purchases from various independent contract collectors. Auntie Anne’s (717-442-4766) recently opened a unit inside a Wal*Mart near Laurel Mall in Hazleton, PA. It is the company’s 500th hand-rolled pretzel store overall. Auntie Anne’s operates units in 42 states and five countries. Hastings Entertainment (806-372-2300) plans to open a 28,000 sq.ft. store at Village at Time Corners in Fort Wayne, IN during October. The store offers books, videos and other entertainment media. Overall, the company operates 125 stores in 16 states. Crown American Realty Trust (814-536-4441) announces that Gap Kids plans to open a 4,206 sq.ft. store, Braun’s Fashions plans to open a 3,200 sq.ft. store, and Foot Locker plans to open a 6,000 sq.ft. store at Nittany Mall in College Township, PA. Sonny’s Franchise Company, Inc. (407-660-8888) recently opened Sonny’s Real Pit Bar-B-Q restaurants in Oakwood, GA; Orange City, New Port Richey, Venice and Merritt Island, FL. The openings give the company 105 restaurants in AL, FL, GA, KY, LA, MS, NC and SC. The company is planning to open as many as 15 units annually in the coming five years. Circuit City Stores (804-527-4000) plans to open a 30,000 sq.ft. store in Boulder, CO during late summer or early fall 1999. It will be chain’s first in the Boulder market. The Limited, Inc. (614-479-7000) plans to open a 2,900 sq.ft. Bath & Body Works store at Rock Hill Galleria in Rock Hill, SC during November. Fred Meyer (503-797-3450) plans to open a 127,000 sq.ft. store in Florence, OR and a 165,000 sq.ft. store in Wasilla, AK. Sound Advice, Inc. (954-922-4434) plans to open a 15,000 sq.ft. Sound Advice store at Tallahassee Mall during November and a 15,000 sq.ft. Bang & Olufsen concept store at Mizner Park in Boca Raton, FL next month. It will be the company’s second B&O store (the first is located at Adventura Mall in Miami) and features B&O’s line of high-end stereos and home theater systems. Sound Advice is planning to open as many as six stores during both fiscal 1999 and fiscal 2000. Garden Fresh Restaurant Corp. (619-675-1600), which operates the Souplantation and Sweet Tomatoes restaurant concepts, plans to open units in Atlanta, GA; Houston, TX; Vancouver, WA and Jacksonville, FL. During fiscal 1999, the company plans to open 12 units including entry into the Denver, CO and Raleigh, NC markets. Currently, the company operates 56 salad buffet restaurants in AZ, CA, FL, GA, NV, NM, TX and WA. Dollar Discount Stores (610-497-1991) plans to open as many as 20 stores in Appleton, Green Bay, Madison and Milwaukee, WI in the coming year. Gart Sports (303-861-1122) recently entered the Seattle, WA market by changing the name and format of two existing Sportmart stores in Lynnwood and Tacoma. The company also opened a new 35,704 sq.ft. store in Bellevue. Newriders, Inc. (949-718-4630) plans to open an 8,500 sq.ft. El Paso Bar-B-Que restaurant at Easyriders Plaza in Tulsa, OK before the end of the year. Neiman Marcus (214-741-6911) plans to open a 12,000 sq.ft. Galleries of Neiman Marcus store at Westlake Center in downtown Seattle, WA during Summer 1999. The company also plans to open a 90,000 sq.ft. department store, that could be expanded to 135,000 sq.ft., at International Plaza in Tampa, FL during Fall 2001. Benihana, Inc. (305-593-0770) recently signed separate franchise agreements to open restaurants in Austin, TX and Anchorage, AK. The TX franchisee has also agreed to open a unit in San Antonio. There Is Still Room for The Small Operator by Alan Alexander, SCSM, CPM We are seeing an unprecedented consolidation of companies and shopping centers, including the mergers of two of the largest owners of shopping centers in the United States. Large management companies are buying up smaller, more localized management companies. We are seeing the various REIT’s buying up existing product at a brisk pace. The general theme of all of this consolidation is that you either get bigger or you get out. While there is some truth to the "bigger is better" theory, it does not join forces with one of the major national players in the field of shopping centers. There is little doubt that there are many advantages to being a part of a major shopping center organization. Generally, the larger players have built up excellent reputations over the years and that will make it a little easier to talk with tenant prospects, to get financing, to obtain needed outside help and to have all of the tools necessary to do our job in today’s complicated and competitive environment. In the past, many of us liked to think of ourselves as a "jack of all trades" within the industry. We were, essentially, managers and we managed on a day to day basis but we could handle the leasing of a store or two or we could put together a marketing campaign if necessary. Quite often we really did not have that much experience with leasing or marketing, but we had seen it done by others and felt fairly comfortable with taking on the chore if necessary. With today’s very sophisticated and competitive market we can no longer be the "jack of all trades" because that means we are master of none. A third party manager who offered his or her services in the past for anything and everything needed in a shopping center should be taking careful stock of his or her abilities and should be concentrating on offering those services only and being the best at those services. Even within the area of shopping center management there are major differences in how one manages a small neighborhood shopping center as compared to the needs of a major super regional mall or specialty shopping center. It becomes clear that there are two choices for the smaller operator, but they are not to either get big or to get out. The choices are to either get big or to find your :niche." There are those individuals out there who are, in fact, good at all phases of shopping center operations and they will do well no matter the direction taken. However, for most of us it is more likely that we are good managers, good leasing agents or have good marketing skills, but we are not expert at all of them. Rather than offer one’s services in all areas with the chance of doing many of them poorly, it makes more sense to take some time to do an objective analysis of one’s past experience and accomplishments and choose the specific direction from those strengths. With a solid background of say "small shopping center management" one is very likely to have a good chance of success if that background is used as the basis for the service to be offered. It is much more difficult, in today’s competitive environment, to hold one’s self out as a manager of all types of shopping centers when one has not managed a super regional center, an outlet center or a specialty shopping center. They are all shopping centers, but they all have unique characteristics and management needs. The same specialization can be applied to geography as well. The small operator is very likely to know a fairly small geographic area quite well and to understand the history and the vital forces of that area. It is much more difficult for the small operator to hold one’s self out as an expert in shopping centers in the state of California, by way of example. It is likely that one could well be expert in the San Francisco Bay Area or the Sacramento metropolitan area, but not an entire state or multiple states. The small operator has the advantage of making his or her own decisions, of establishing and enforcing a very high level of expertise, establishing a high level of ethics and morality, a strong work ethic and a dedication to each client that is much more difficult for the larger organization to attain because of the large number of personnel and management levels within that larger organization. That is not to say that the larger organizations do not strive for all of these attributes, but it is more difficult for them to attain as the company expands. The small operator has the ability to treat each client as though he or she were the only client. No client wants to feel they are given short shrift because the manager or leasing agent is too busy to give special attention to each situation. While that is the reality for all of us, the small operator has the flexibility and motivation to spend the time needed with each situation and put in longer hours, if necessary, to cover all of the bases. There is no need for the small operator, whether manager, leasing agent of marketing specialist to just give up and join a larger company. The small operator must take careful stock of past experiences, abilities, accomplishments and desires and from that information find the proper "niche" for his or her services. He or she must then go about marketing those services as the most focused, most experienced and most dedicated professional in that specific geographic area. Potential clients are going to be much more interested in what a candidate has accomplished rather than the number of years he or she has been in business. The marketing effort must then be backed up by service that is second to none. While there is no guarantee of success under any circumstances, the shopping center professional that takes the time to find the proper "niche," assuming the background to support it, is very likely to reach the conclusion that "bigger is not necessarily better." Alan Alexander is a Senior Vice President of Woodmont Real Estate Services, Inc., 1050 Ralston Avenue, Belmont, CA 94002; 650-341-7737, Fax 341-7757. Lead Sheet Accessories The three-unit chain operates locations in MD. The stores, selling accessories and apparel, occupy spaces of 2,000 sq.ft. in downtown store fronts and regional malls. Growth opportunities are sought in the existing market. RW Reed Co. Accessories The four-unit chain operates locations in MS. The stores, selling accessories and apparel, occupy spaces of 5,000 sq.ft. in downtown store fronts, freestanding facilities and regional malls. Growth opportunities are sought in the Southern region. Leases running 20 years are typical. Color, Inc. Apparel The 42-unit chain operates locations nationwide. The family apparel stores occupy spaces of 400 sq.ft. to 700 sq.ft. in regional malls and entertainment centers. Plans call for six openings of each concept in the coming 18 months. Expansion will take place in CA, CO, FL, LA, MA, MD, MN, MO, NV, PA, TX, WA or Washington, D.C. Leases running five years, with options, are typical. Royal Formal Wear Corp. Apparel The eight-unit chain operates locations in MD, VA and Washington, D.C. The stores, selling and renting formalwear, occupy spaces of 1,000 sq.ft. in strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in MD and VA. Leases running five years are typical. AutoNation USA Automotive The 37-unit chain operates locations in AZ, CA, FL, GA, IN, IA, MI, NV, NC, OH, TX and VA. The concept, offering used cars, occupy freestanding facilities on 10 to 20 acres of land. Preferred co-tenants include big-box users. Plans call for at least 60 openings in the coming 18 months. Expansion will take place nationwide. The company prefers to purchase its sites. Six Robblee’s Heavy Duty America, Inc. Automotive The 13-unit chain operates locations in AK, CA, MT, OR and WA. The automotive parts and supplies stores occupy spaces of 8,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing markets. Western Tire Centers Automotive The 18-unit chain operates locations in AZ and NM. The automotive centers occupy spaces of 6,000 sq.ft. to 12,000 sq.ft. in freestanding facilities. Plans call for one opening in the coming 18 months. Expansion will take place in Las Vegas, NV. Landhope Corporation Convenience Store The 15-unit chain operates locations in DE, MD and PA. The convenience stores, which also sell gasoline, occupy spaces of 3,000 sq.ft. in freestanding facilities. Plans call for three openings in the coming 18 months. Expansion will take place in MD and PA. Leases running at least 25 years are typical. Kerasotes Theater, Inc. Entertainment The 100-unit chain operates locations in IL, IN, MN and MO. The movie theaters occupy spaces of 40,000 sq.ft. in freestanding facilities. Preferred co-tenants include Wal*Mart. Plans call for two openings in the coming 18 months. Expansion will take place within the existing markets. The company prefers to purchase its locations. MPI School & Instructional Supply Educational The seven-unit chain operates locations in IL, MI and NM. The stores, selling educational materials, occupy spaces of 6,000 sq.ft. to 7,000 sq.ft. in freestanding facilities and strip centers. Plans call for at least two openings in the coming 18 months. Expansion will take place in CO, IL, IN, MI, MN, OH, PA and WI. The company prefers to purchase its locations. Comcast Cellular Communications Electronics The 30-unit chain operates locations in PA. The stores, selling cell phones and pagers, occupy spaces of 1,200 sq.ft. to 3,000 sq.ft. in regional malls and strip centers. Growth opportunities are sought in the existing market. Headstart Hair Care Salons Hair Salon The 71-unit chain operates locations in AL. The hair salons occupy spaces of 1,200 sq.ft. in regional malls and strip centers. Preferred anchors include Kmart, TJ Maxx, Wal*Mart and supermarkets. Plans call for six openings in the coming 18 months. Expansion will take place in FL. Preferred demographics include a population of 30,000 within three miles earning $35,000 as the average income. Leases running five years, with a five-year option, are typical and the company prefers $15,000 in tenant improvements. Chef Central Housewares The company plans to open its first store during 1999. The concept will offer gourmet cooking utensils and housewares while using 15,000 sq.ft. spaces in freestanding facilities and specialty centers. Plans call for 10 openings in the coming 18 months with expansion taking place in CT, NJ and NY. Preferred demographics include a population of 100,000 within five miles earning at least $60,000 as the average income. Ten-year leases will be sought. The concept is from owners of Bed Bath & Beyond. Cole Vision Corp. Optical The 74-unit chain operates locations nationwide. The optical stores occupy spaces of 1,200 sq.ft. in strip centers. Preferred anchors include discount stores, fashion retailers and supermarkets. Plans call for 60 openings in the coming 18 months. Expansion will take place nationwide, exclusive of the Northeastern region. Preferred demographics include a population of 50,000 within three miles earning $40,000 as the average income. D.O.C. Optics Corp. Optical The 117-unit chain operates locations in FL, IL, IN, MD, MI, MO, OH and WI. The optical stores occupy spaces of 1,200 sq.ft. to 4,000 sq.ft. in regional malls and strip centers. Growth opportunities are sought in FL, IN, MI, MO, OH and WI. Leases running five years are typical and the company is franchising. The Paper Store, Inc. Party Supplies The nine-unit chain operates locations in MA. The stores, selling party supplies, cards and gifts, occupy spaces of 9,000 sq.ft. in downtown store fronts, freestanding facilities, regional malls and strip centers. Growth opportunities are sought in the existing market. Petland Discounts Pet Supplies The 108-unit chain operates locations in CT, NJ and NY. The pet supply stores occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in downtown store fronts and strip centers. Plans call for 12 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical. Larry’s Shoes, Inc. Shoes The 13-unit chain operates locations in CO and TX. The shoe stores occupy spaces of 4,000 sq.ft. to 8,000 sq.ft. in freestanding facilities and strip centers. Plans call for two openings annually. Expansion will take place in the existing markets. Leases running 10 years are typical. First Cash, Inc. Specialty The 65-unit chain operates locations in CT, DE, MA, MD, ME, NH, OK, RI, TX and VT. The pawn shops occupy spaces of 3,500 sq.ft. to 5,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in AL, CT, FL, GA, MA, MD, ME, NC, RI, SC, TN, VT, VA and Washington, D.C. Dan’s Supreme Super Markets, Inc. Supermarket The 18-unit chain operates locations in NY. The supermarkets occupy spaces of 20,000 sq.ft. to 50,000 sq.ft. in strip centers. Growth opportunities are sought in the existing market. Fiesta Mart, Inc. Supermarket The 40-unit chain operates locations in TX. The supermarkets occupy spaces of 25,000 sq.ft. to 48,000 sq.ft. in freestanding facilities and strip centers. Plans call for five openings in the coming 18 months. Expansion will take place in the existing market. Leases running 15 years are typical. The Mad Butcher, Inc. Supermarket The eight-unit chain operates locations in AR. The supermarkets occupy spaces of 34,000 sq.ft. in strip centers. Growth opportunities are sought in the existing market. Leases running five years are typical. Roundy’s, Inc. Supermarket The 75-unit chain operates locations in OH and WI. The supermarkets occupy spaces of 30,000 sq.ft. to 70,000 sq.ft. in strip centers. Preferred co-tenants include discount department stores. Plans call for as many as five openings in the coming 18 months. Expansion will take place in MI, OH and WI. Leases running 20 years are typical. Real Estate Professionals Making News Midland Red Oak Realty, Inc. (915-687-4011) announces that Don Davis has been named senior vice president of investments. In his new position, Davis will be responsible for evaluating acquisitions primarily in Southwestern middle markets. Center Trust (310-458-1224) announces the appointment of David Newsome to the new position of vice president-development. Under Newsome’s leadership, the company intends to initiate an aggressive program of redevelopment within its portfolio and focus on new development opportunities. Edison Brothers Stores, Inc. (314-331-6000) announces that Michele Ann Bergerac has been named president of Edison Footwear Group and will oversee all merchandising for Edison’s Bakers and Wild Pair footwear chains. Bergerac most recently served as vice president and divisional merchandise manager of women’s, men’s and children’s shoes for Foley’s. The company announces that Lee Johnson has been named senior vice president, stores. The company also announces that Michela English, president of Discovery Enterprises Worldwide, has been named to its board of directors. Robinson-Sigma Commercial Real Estate, Inc. (757-490-3300) announces that D. Wood Belcher has joined the company and will specialize in third party business development, land acquisitions and tenant representation for the retail services division. Restoration Hardware, Inc. (415-945-3549) announces that Millard Drexler has been elected to the company’s board of directors. Drexler is the president and chief executive officer of Gap, Inc. ShopKo Stores, Inc. (920-429-7234) announces that Ingrid Davis has been named senior vice president of stores and will assume responsibility for all store operations for the 147-unit chain. The Macerich Company (310-394-6911) announces the promotion of Doug Kiehn to regional vice president of its newly-formed Central California Region. In his new position, Kiehn will initially assume oversight of Buenaventura Mall in Ventura, Fashion Fair Mall in Fresno and Northridge Mall in Salinas. Financial News Kohl’s Corporation (414-703-7000) reported that its second quarter net sales increased 21.6% to $758.7 million from $623.9 million last year. Comparable store sales increased 10.4% for the quarter. Net income increased 50.4% to $31.3 million from $20.8 million last year. The company, which currently operates 197 department stores, plans to open 17 stores during the third quarter; 19 stores during Spring 1999 and as many as 25 stores during Fall 1999. The Wet Seal, Inc. (714-583-9029) reported that its second quarter earning increased to $4.8 million from $3.4 million during the second quarter last year. Sales for the quarter increased 19.9% to $113 million from $94.3 million last year with comparable store sales up 4.3% for the quarter. During the quarter, the company opened 10 stores and is planning to open an additional 48 during the second half of the year. Currently, the company operates 414 specialty apparel stores in 42 states. Albertson’s, Inc. (208-385-6200) reported that is second quarter sales increased 8.5% to $4 billion from $3.7 billion during the second quarter last year. Comparable store sales increased 0.8% for the quarter. Net earnings increased 17.3% to $128.4 million from $109.4 million last year. During the quarter, the company opened 18 stores and is planning to open 31 stores during the remaining half of the year. One Price Clothing Stores, Inc. (864-433-8888) reported that its second quarter net income increased 47% to $3.52 million from $2.39 million during the second quarter last year. Total net sales for the quarter increased 11.2% to $95.8 million from $86.1 million last year with comparable store sales up 10.1% for the quarter. During the second quarter, the company opened three stores and has closed 39 underperforming stores during the first half of year. Currently, the company operates 624 stores. K&G Men’s Center, Inc. (404-351-7987) reported that its second quarter net sales increased 28.6% to $30.3 million from $23.5 million during the second quarter last year. Comparable store sales increased 6.8% for the quarter. Net income was $1.3 million, up from $1.1 million last year. During the quarter, the company opened one store. During the second half, the company plans to open stores in Atlanta, GA; Philadelphia, PA and Seattle, WA. Currently, the company operates 29 men’s apparel stores in 16 states. Hastings Entertainment, Inc. (806-372-2300) reported that its second quarter net income increased 40.6% to $1.8 million from $1.3 million during the second quarter last year. Total revenues for the quarter increased 11.7% to $91.2 million from $81.7 million last year and comparable store sales increased six percent. During the quarter, the company opened six stores and is planning to open six stores during the second half of the year. Overall, the company plans to open 54 stores by the end of fiscal 2000. Currently, the company operates 123 stores, averaging 21,200 sq.ft., primarily in small to medium-sized markets in the Midwestern and Western regions. The stores offer books, music, software and videotapes for sale and/or rent. Pizza Inn, Inc. (214-701-9955) reported that its fiscal year 1998 revenues dipped slightly to $68.6 million from $69.1 million during FY97. Net income for FY98 increased slightly to $4.88 million from $4.53 million last year. During the year, the company opened 82 restaurants and currently operates 503 units nationwide. Genovese Drug Stores, Inc. (516-420-1900) reported that its second quarter total sales increased 7.8% to $186.5 million from $173.1 million last year. Comparable store sales increased 5.7% during the quarter. Net income was up 70.9% to $2.2 million from $1.3 million last year. During the quarter, the company opened two stores and currently operates 138 drug stores in CT, NJ and NY. Deb Shops, Inc. (215-676-6000) reported that its second quarter net sales increased to $58.5 million from $48.6 million last year. Net income was up to $3.8 million from $1.3 million. The company currently operates 278 specialty apparel stores in 35 states and 17 bookstores in five states. Factory Card Outlet Corp. (630-238-0010) reported a second quarter net loss of $402,000, compared to net income of $1.8 million during the second quarter last year. Sales increased 33.7% for the quarter to $54.7 million from $40.9 million last year and comparable store sales were up 1.4% for the quarter. The company currently operates 205 stores in 22 states and plans to open eight stores before January 1999. Buyers & Sellers Netrust is in the market to acquire NNN retail sites nationwide.
Properties can be in packages and portfolios and have less than full term leases. Shopping Center Realty Corp. has the listing to sell AutoZone Plaza
in Waterbury, CT. The 14,459 sq.ft. project is fully leased. The company also has the
listing to sell Bennington Plaza in Bennington, VT. The fully leased project is anchored
by Ames and Price Chopper. NAI Mertz Corporation has the listing to sell Ames Plaza Shopping
Center in Berwick, PA. The 67,620 sq.ft. project fronts Route 11 and has expansion
possibilities. Sperry Van Ness represents a client that is in the market to
complete a 1031 Exchange requirement. Preferred properties can be multi-tenant or single
tenant NNN located in Orange County, CA. Prices between $4 million and $10 million are
preferred and up to $3 million in cash as a down payment can be made. Waimea Group, Inc. has the listing to sell Custer Creek Shopping
Center in Plano, TX. The 78,850 sq.ft. project is anchored by Brookshires, Little
Caesar’s and Joan’s Hallmark. The asking price is $6 million. The Hutensky Group LLC has the listing to sell Imperial Plaza in
Philadelphia, PA. The 126,648 sq.ft. project is anchored by Modell’s Sporting Goods,
Deb Shop and Fashion Bug. The company also has the listing to sell Roswell Mall in
Roswell, NM. The 308,733 sq.ft. project is anchored by JC Penney, Wal*Mart, Stage,
Beall’s, Foot Locker and Payless Shoes. The owner of the properties is looking to
consummate an all cash deal before the end of the year. Food Tenants Hungry for Sites Nationwide Fast Food Management does business as Arby’s, El Pollo
and Denny’s at eight locations in Southern CA. The restaurants occupy spaces
of 2,500 sq.ft. in freestanding facilities. Preferred anchors include Kmart and Wal*Mart.
Plans call for three openings in the coming 18 months. Expansion will take place in the
existing market. Preferred demographics include a population of 25,000 within one mile
earning $35,000 as the average income. Leases running 20 years are typical. Subway Development of San Diego trades as Subway at 102
locations nationwide. The sandwich restaurants occupy spaces of 1,200 sq.ft. in strip
centers. Preferred anchors include Kmart, Wal*Mart and supermarkets. Plans call for
at least 10 openings in the coming 18 months. Expansion will take place in San Diego
County, CA. Preferred demographics include a population of 20,000 within one mile earning
$20,000 as the average income. Leases running five years are typical. Erik’s Deli Cafe, Inc. trades as Erik’s Deli Cafe
at 24 locations in CA. The restaurants occupy spaces of 1,400 sq.ft. to 2,600 sq.ft. in
downtown store fronts, freestanding facilities and strip centers. Preferred anchors
include movie theaters. Plans call for as many as five openings in the coming 18 months.
Expansion will take place in central and northern CA. Preferred demographics include a
population of 15,000 within one mile earning $50,000 as the average income. Leases running
10 years are typical. Anthony’s Fish Grotto trades as Anthony’s Fishettes
at five locations in CA. The seafood restaurants occupy spaces of 1,500 sq.ft. in
freestanding facilities. Plans call for one opening in the coming 18 months. Expansion
will take place in the existing market. Leases running 10 years are typical. Western Bagel operates 13 locations in CA. The bagel stores occupy
spaces of 2,000 sq.ft. to 2,500 sq.ft. in specialty and strip centers. Preferred anchors
include supermarkets. Plans call for two openings in the coming 18 months. Expansion will
take place in Southern CA. Preferred demographics include a population of 50,000 within
two miles earning $75,000 as the average income. Leases running 10 years are typical. LAL Enterprises, Inc. does business as Burger King and Denny’s
at 41 locations in CA, NV and WA. The fast food restaurants occupy spaces of 2,400 sq.ft.
in freestanding facilities. Preferred anchors include supermarkets. Plans call for nine
openings in the coming 18 months. Expansion will take place in CA. Preferred demographics
include a population of 10,000 within two miles earning $30,000 as the average income.
Leases running 20 years are typical. Nathans Famous, Inc. trades as Nathan’s Famous at 230
locations nationwide. The fast food restaurants occupy spaces of 150 sq.ft. to 3,000
sq.ft. in outlet centers and regional malls. Plans call for 50 openings in the coming 18
months. Expansion will take place in AZ, CA, CO, NV, NC and SC. Preferred demographics
include a population of 45,000 within three miles earning $57,000 as the average income.
Leases running 10 years are typical and the company is franchising. Baker’s Burgers, Inc. trades as Baker’s Burgers at
30 locations in CA. The restaurants occupy spaces of 3,000 sq.ft. to 4,500 sq.ft. in
freestanding facilities. Growth opportunities are sought in the existing market. Caterina’s Franchise Co., Inc. trades as Caterina’s
at five locations in CA. The stores, selling candy, occupy spaces of 700 sq.ft. to 1,000
sq.ft. in strip centers and airport terminals. Growth opportunities are sought in Orange
County, CA. The company is franchising. Warner Food Management does business as Jack In The Box at
34 locations in AZ and CA. The fast food restaurants occupy spaces of 2,000 sq.ft. to
3,000 sq.ft. in freestanding facilities. Plans call for five openings in the coming 18
months. Expansion will take place in CA. Leases running 20 years, with a 10-year option,
are typical. Busy Bee Oriental Food trades as Busy Bee Asian Food at
eight locations in CA. The Oriental fast food restaurants occupy spaces of 1,000 sq.ft. to
3,000 sq.ft. in regional malls. Plans call for as many as two openings in the coming 18
months. Expansion will take place in the existing market. Leases running 10 years are
typical and the company is franchising. Juice It Up operates three locations in CA. The concept offers
yogurt based drinks mixed with fresh fruit and juices as well as vegetable drinks, gourmet
bagels and coffee while using spaces running 900 sq.ft. to 1,500 sq.ft. in power and strip
centers. Plans call for eight openings in the coming 18 months. Expansion will take place
in the existing market. Space Place California Bellflower- Spaces from 1,000 sq.ft. are available for lease at
a 30,000 sq.ft. project. In City of Industry- Spaces from 1,200 sq.ft. to
3,000 sq.ft. are available for lease at a 50,000 sq.ft. project. In Compton-
A 1,600 sq.ft. space is available for lease at a 25,000 sq.ft. project. In Cudahy-
Spaces of 1,000 sq.ft. and 2,000 sq.ft. are available for lease at a 20,000 sq.ft.
project. In Downey- A 3,500 sq.ft. space is available for lease at a 20,000
sq.ft. project. In Long Beach- A 1,000 sq.ft. space is available for lease
at a 15,000 sq.ft. project. Also in Long Beach- Spaces from 800 sq.ft. are
available for lease at a 12,000 sq.ft. project. Also in Long Beach- A 20,000
sq.ft. space, which is divisible, is available for lease. In Los Angeles- A
1,000 sq.ft. space is available for lease at a project anchored by Chief Auto Parts
and McDonald’s. In Paramount- Spaces from 1,200 sq.ft. are
available for lease at a 30,000 sq.ft. project. In Pasadena- A 3,000 sq.ft.
space and a pad site are available for lease at a 30,000 sq.ft. project. In Pico
River- Spaces from 1,400 sq.ft. to 7,000 sq.ft. are available for lease at a
20,000 sq.ft. project. In Pomona- Spaces from 1,000 sq.ft., as well as a pad
site, are available for lease at a 50,000 sq.ft. project. In Sylmar- Units
from 1,000 sq.ft., including a 35,000 sq.ft. space, which is divisible, are available for
lease at a 140,000 sq.ft., Vons-anchored project. Colorado Aurora- Hoffman Heights Center is anchored by Ace
Hardware, Brunswick Recreation Center and Video Buffs. The 240,000 sq.ft.
project has spaces of 672 sq.ft., 1,200 sq.ft. and 4,800 sq.ft. available for lease.
Demographics include a three-mile population of 150,000 earning $45,000 as the average
income. Retailers in the area include King Soopers, McFrugals and Family Dollar. Illinois Champaign- Market View Shopping Center is anchored by Barnes
& Noble, Toys ‘R Us and TJ Maxx. The 173,257 sq.ft. project has spaces
of 1,500 sq.ft., 1,875 sq.ft., 2,500 sq.ft., 4,000 sq.ft. and 18,000 sq.ft. available for
lease. Demographics include a five-mile population of 101,093 earning $45,267 as the
average income. Retailers in the area include Market Place Mall and Kohl’s. Michigan Fenton- Space is available for lease at Village Marketplace.
In Grand Blanc Township- Space is available for lease at a planned shopping
center. In Independence Township- Space is available for lease at Oak
Hill Place. In Meridian Township- Meridian Pointe Shopping Center
has pad sites available for lease. In Pontiac- Space is available for lease
at a retail and entertainment project under development in the central business district.
In Ypsilanti Township- Space is available for lease at a shopping center
expected to open during Spring 2000. Pennsylvania Hampden Township/Harrisburg West Shore- Kmart Center is
anchored by Kmart. The project has a 10,000 sq.ft. space, which can be expanded to
15,000 sq.ft., and a 48,400 sq.ft. outparcel available for lease. Wyncote- Cedarbrook Plaza is anchored by Pathmark
Super Center, Caldor and Toys ‘R Us. The 520,000 sq.ft. project has spaces
from 1,500 sq.ft. to 36,000 sq.ft., including a 21,000 sq.ft. end cap space, available for
lease. Demographics include a three-mile population of 193,957 earning $55,711 as the
average household income. Virginia Dale City- Ashdale Plaza is anchored by Fitness
Equation, Dollar General, Tutor Time and NAPA. The 93,000 sq.ft. project has
spaces of 2,393 sq.ft. and 3,683 sq.ft. available for lease. In Woodbridge- Station
Plaza is anchored by Kmart, Food Lion, West Marine and Blockbuster Video.
The 174,128 sq.ft. project has spaces of 1,200 sq.ft. and 1,500 sq.ft. available for
lease. |