Issue 16 for the week of May 5, 1995

The Dealmakers Issue Number 16 for the week of May 5, 1995.

My Way by Ted Kraus

The recent Value Retailing Show (that's the outlet industry's equivalent to the ICSC's May show in Vegas), I'm told, had record attendance from retailers, developers and brokers alike and deals were being done. That's the good news. But in conversations with friends of mine who are outlet retailers and developers, they all expressed the same concern; sales are off in the outlet industry and everyone (developer/retailer/broker and REIT) is concerned. Understanding the reason is easy, apparel sales overall stink and the outlet industry is very heavy into apparel, therefore they are taking a bigger hit than even conventional retailing is. I personally think this change in buying patterns is a permanent demographic change and not just a normal dip in sales. My reasoning being 1) an "aging" society (it's easier to sell new styles to a 24-year old single female than a 32-year old married mother worrying about paying for braces for her 12-year-old); 2) a permanent change in the wealth of our nation (we're not as rich as we use to be and something has to "give," and eliminating one or two outfit purchases a year is the "easy" first cut and 3) a "casual" dress movement is spreading across the country (TKO was a pioneer in the casual dress movement, but we started out with "Casual Monday through Friday" instead of the "Dress Down Friday.") I personally think that the apparel industry has a tough five years ahead with a lot of bankruptcy or mergers coming. Too many apparel retailers look alike, sound alike and carry the identical merchandise and except for price, you can't tell one from another. Without substantial annual increases in sales as they had become accustomed to, 15-20% of the apparel retailers have MAJOR problems ahead (many of 'em are living with these problems right now).

Another problem facing the outlet industry is it has matured and there are few "good" locations left to expand/develop in. Some of the retailers/developers contend that there are plenty of sites available (but deep down they know the truth), since manufacturers are now willing to open closer to the department store than they were in the past. When the industry first started, the manufacturer couldn't/wouldn't open near the department store for fear of antagonizing their best customer. Today, they locate closer because the department store is no longer their best customer; the department store now pushes its "house brand" over the "name brand," and therefore the name brand has less of a name or in some cases no name. Van Huesen sells mostly in their outlet stores, not at Macy's or Nordstroms, so how can they say to the consumer "30-50% off the department store price?" Go to any flea market and you'll see Calvin Klein and Polo being sold, (most of it I think is legitimate). Now Calvin's outlet stores can advertise, "15-20% off Advertised Flea Market Prices."

The "funniest" story I heard was about the Horizon Group, one of the major developers in the outlet industry. They are starting to hold meetings with key outlet tenants to explore developing a new concept, LARGE strip centers close to urban populations anchored by big-box, off-price and outlet tenants, I think they called 'em small "Mills Concept". I hate to tell 'em this, but the shopping center industry gave that type of retailing a name years ago... Power Centers. Enclosed malls are adding mini anchors that are "value oriented," power centers have always been oriented towards price and more and more outlet retailers are beginning to have either more outlet stores than conventional units or no longer sell to the conventional retailer, so they are no longer branded goods. I can buy, quite often, Florsheim shoes at Macy's for the same price as "Marty's Discount Stores." Of course neither provides service, but that's another story. There is no clear line of difference between off-price, outlet or conventional retailing and I personally feel that hurts outlet retailing the most.

On a different note, I did a "broadcast fax" to 3,000 of my closest friends, who also might be potential clients, (we do leasing and management) telling 'em great things about us and suggesting (begging?) them to drop by our booth in Las Vegas. Anyway, in part of the fax I mentioned we specialize in big box leasing. WOW... what a response. I must have gotten 70 to 100 calls from "small" developers (they owned anywhere from seven to 25 centers, I should be that small) talking about their closed Wal*Marts, Kmarts, Hechingers, Builders Square, etc. Unfortunately for them, while there is still a great demand for big box spaces by retailers, all or most of their spaces are in secondary or tertiary locations. They have a problem and it won't be resolved easily. What was also interesting was the vast majority are NOT going to Vegas, even though they own 500,000 to 3 million square feet. That always amazes me; how can someone own millions of dollars of retail space and not go to Vegas (or St. Louis)? Maybe that's one of the problems in our industry and country, things come too easy, so why exert that extra effort.

Another amazing idiosyncrasy of our industry is a major big box user is seeking to hire a "regional" VP (I guess this is the same as the supermarket position of "VP of Bananas") to supervise an eight state territory. Now that in itself makes sense, what confuses me is they have eight exclusive brokers in that area. So his job is to approve/reject what the brokers bring him, not generate deals himself. That is illogical IF you want good real estate at a decent rent. What further complicates matters is he/she/it will be based on the west coast, but their territory is on the east coast. That's a great way of ensuring your real estate VP is abreast of what's happening in their territory (I'm being sarcastic if you didn't realize it). Oh well, it's only money.

Parting thoughts: I've been getting calls from fellow brokers the last month or so wanting to know if there is anything we can co-broker on, it seems business has been in a lull lately. I'm just hoping business is in a lull and not going to hell....

The good news is because we distribute the Dealmakers to all the major convention hotels in Vegas, we have to get a room count on attendees weeks ahead of the show. Attendance is up substantially, short of a natural disaster this show will be a blow out.

Retailers Seeking Sites Nationwide

Best Buy Company, Inc. trades as Best Buy and Concept II at 205 locations nationwide. The appliances and electronics stores occupy spaces of 28,000 sq.ft. to 58,000 sq.ft. in strip centers and freestanding facilities. Concept II stores use a warehouse superstore format while Best Buy stores use a traditional format. Plans call for 47 openings in the coming 18 months. Expansion will take place nationwide. The company prefers new construction.

For more information, contact Marilyn Williams, Best Buy Company, Inc., 7075 Flying Cloud Drive, Eden Prairie, MN 55344; 612-947-2000, Fax 947-2316.

Great Earth Companies trades as Great Earth Vitamins at 110 locations nationwide. The stores, specializing in health items, occupy spaces of 500 sq.ft. to 800 sq.ft. in regional malls and strip centers. Plans call for up to 25 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Steve Stern, Great Earth Companies, 110 E. 59th Street, New York, NY 10022; 212-421-4000. Only written proposals are accepted.

Lady of America operates 136 locations nationwide. The health spas occupy spaces of 2,400 sq.ft. to 10,000 sq.ft. in freestanding facilities, power, specialty and strip centers. Plans call for 25 openings in the coming 18 months. Expansion will take place nationwide. Demographic requirements include a population of 20,000 within three miles earning $20,000 as the average household income. Leases running five to 10 years are typical.

For more information, contact Gary Landson, Lady of America, c/o Lanco Realty, 3300 Chimney Rock/ Suite 204, Houston, TX 77056; 713-952-9988, Fax 952-1828.

Great Clips, Inc. trades as Great Clips at 560 locations throughout North America. The hair salons occupy spaces of 900 sq.ft. to 1,200 sq.ft. in regional malls, power and strip centers. Plans call for more than 200 openings in the coming 18 months and the company plans to have 3,000 units open by the year 2000. Expansion will take place throughout North America. Leases running five years are typical.

For more information, contact Dean Wieber, Great Clips, Inc., 3800 W. 80th Street/ Suite 400, Minneapolis, MN 55431; 612-893-9088, Fax 844-3444.

Check Express, Inc. trades as Check Express at 184 locations nationwide. The stores, offering check cashing, money transfers and money orders, occupy spaces of 1,200 sq.ft. to 2,000 sq.ft. in freestanding facilities with high visibility. Plans call for up to 35 openings in the coming 18 months. Expansion will take place nationwide. Leases running three to five years with options are typical.

For more information, contact Rudy Frederico, Check Express, Inc., 101 E. Kennedy Boulevard/ Suite 3800, Tampa, FL 33602-5154; 813-223-3338. The company only accepts written proposals.

Moto Photo, Inc. trades as One Hour Moto Photo and Portrait Studio at 465 locations throughout North America and Norway. The stores, offering one-hour photo processing, portraits and related services and accessories, occupy spaces of 1,600 sq.ft. in regional malls and strip centers. Approximately 85% of the units operating are franchised. Plans call for 80 openings in 1995 and the company plans to have 1,000 units open by the year 2000. Expansion will take place throughout North America and Norway.

For more information, contact Audrey Sacks, Moto Photo, Inc., 4444 Lake Center Drive, Dayton, OH 45426; 513-854-6686, Fax 854-0140.

Aamco Transmission, Inc. trades as Aamco Transmission at 700 locations nationwide. The automotive service centers, specializing in transmission repair, occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in freestanding facilities. Plans call for 30 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact John Hagan, Aamco Transmission, Inc., 1 Presidential Boulevard, Bala Cynwyd, PA 19004; 215-668-2900, Fax 664-4570.

Party City operates 113 locations in NY, PA, CA, FL, AL, GA, TN, TX, OH, IL, NJ, NC, MD, AZ, AR, CT and DE. The party supply stores occupy spaces of 6,000 sq.ft. to 10,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for 50 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Valerie Szymaniak, Party City, 1440 Route 46, Parsippany, NJ 07054; 201-335-8900, Fax 316-9578.

The Athlete's Foot Group, Inc. trades as The Athlete's Foot at 700 locations worldwide. The athletic apparel and footwear stores occupy spaces of 1,200 sq.ft. to 1,500 sq.ft. in regional malls, outlet and power centers. Plans call for 25 corporate openings and 40 franchised openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a three-mile population of 50,000 earning $30,000 as the average income. Leases running 10 years are typical.

For more information, contact Norma Harrington, The Athlete's Foot Group, Inc., 1950 Vaughn Road, Kennesaw, GA 30144; 404-514-4500, Fax 514-4903.

Dayton Hudson Corp. trades as Target Stores at 623 locations nationwide. The stores, offering general merchandise and apparel at discount prices,occupy spaces of 125,000 sq.ft. in power centers. Plans call for up to 70 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Carolyn Brooktner, Dayton Hudson Corp., PO Box 1392, Minneapolis, MN 55440-1392; 612-370-6073, Fax 304-5660.

One Hour Martinizing Dry Clean operates 850 locations nationwide. The drycleaning stores occupy spaces of 1,200 sq.ft. to 2,000 sq.ft. in a wide variety of real estate. Growth opportunities are sought nationwide.

For more information, contact Jerry Laesser, One Hour Martinizing Dry Clean, 2005 Ross Avenue, Cincinnati, OH 45212; 513-351-6211, Fax 731-5513.

Goodyear Tire & Rubber Co. trades as Goodyear Auto Service Centers at 900 locations nationwide. The automotive service centers, which require service bays, occupy spaces of 5,000 sq.ft. in a variety of real estate settings. Growth opportunities are sought nationwide.

For more information, contact Lucinda Weiss, Goodyear Tire & Rubber Co., 1144 East Market Street, Akron, OH 44316; 216-796-1313, Fax 796-1931.

Service Merchandise Co., Inc. trades as Service Merchandise at 409 locations nationwide. The catalog showrooms occupy spaces of 40,000 sq.ft. to 50,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought nationwide.

For more information, contact Floyd Dean, Service Merchandise Co., Inc., 7100 Service Merchandise Drive, Brentwood, TN 37027; 615-660-6000, Fax 660-3934.

Little Professor Book Centers, Inc. trades as Little Professor Book Company at 115 locations nationwide. The franchised book stores occupy spaces of 3,000 sq.ft. to 12,000 sq.ft. in anchored strip centers and regional malls. Plans call for 10 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a trade area population between 40,000 and 50,000 earning at least $30,000 as the average income. Leases running five to 10 years are typical.

For more information, contact Chuck Hilscher, Little Professor Book Centers, Inc., 130 S. First Street, Ann Arbor, MI 48104; 313-994-1212, Fax 994-9009.

Lease Signings

Gold & Company, Inc. (412-471-4455) leased 2,395 sq.ft. to Prime Sports Merchandising, Inc. at the Strand Building in Pittsburgh, PA.

Metro Commercial Real Estate, Inc. (609-866-1900) represented The Ground Round restaurant in the leasing of a 65,000 sq.ft. pad at Southridge Regional Mall in Des Moines, IA. The company plans to build a 4,442 sq.ft. restaurant on the site. Metro Commercial is the exclusive tenant representative for The Ground Round throughout the country and is seeking sites in PA, NJ, DE, OH, MN, MD, MA, CT, RI and NY.

Glimcher Group (412-765-8079) leased 2,000 sq.ft. to Heights Family Images Salon at Lake Hills Plaza in Horseheads, NY.

Divaris Real Estate, Inc. (804-497-2113) leased 2,380 sq.ft. to Pet World at York River Crossing Shopping Center in Haynes, VA. The company also leased 1,200 sq.ft. to Compu-Link at Drug Emporium Plaza in Newport News, VA.

Buyers & Sellers

Blume Realty has the listing to sell Makoviney Motors in Olympia, WA. The 1.2 acre site, which currently has an office building and a metal auto repair shop building on it, is zoned retail/commercial. The corner site is located in the capital business corridor near a shopping center, state offices and a hospital. The asking price is $795,000.

For details, contact Bob Terhune at (360-491-4600 or 791-3368), Fax (459-8747).

Quest Realty, Inc. has the listing to sell 28 acres of land zoned and approved for a 200,000 sq.ft. shopping center in FL. The company also has clients interested in purchasing shopping centers and net-net-net leases.

For details, contact Sydney Y. Cole at (813-378-0608), Fax (378-5368).

Grubb & Ellis Commercial Real Estate Services brokered the sale of a 10,775 sq.ft. retail property at the Ontario Auto Mall in Ontario, CA. Sun County Marine, a boat dealership, purchased the site for $1.5 million.

For details, contact Skip Crane, Ian Brown or George Economos at (714-937-0881).

Property Concepts is in the market to purchase neighborhood shopping centers with redevelopment or expansion possibilities and having a GLA of at least 50,000 sq.ft. Sites anchored by food and drug stores are preferred.

For details, contact Jim O'Donnell at (404-399-6701), Fax (399-0479).

Bradley Real Estate, Inc. acquired St. Francis Plaza in Santa Fe, NM for $5.2 million.

For details, contact Bradley Real Estate, Inc. at (617-421-0675).

Kranzco Realty Trust purchased three shopping centers in MD and two shopping centers in VA for $49.3 million.

For details, contact Kranzco Realty Trust at (215-941-9292).

Source Real Estate & Investment Company has the listing to sell six acres of land zoned commercial in Clinton Township, MI. The site, which fronts Gratiot, is buildable up to 70,000 sq.ft. and is located near Target and Sports Authority.

For details, contact Glenn Hirsch at (810-799-3030), Fax (799-3035).

Kappa Properties Co. is selling a 63,000 sq.ft. space in the 300,000 sq.ft. West Boca Square in Boca Raton, FL. The center is fully leased and has an annual cash flow of $400,000. The asking price is $3.5 million.

For details, contact Richard Nimtz at (412-963-2535), Fax (963-3522).

KG Properties has the listing to sell Rancho Colonia in Sacramento, CA. The five-acre site includes 57,222 sq.ft. of retail space as well as two pads. The asking price is $1.85 million with $1.1 million of financing available.

For more information, contact Chris Gianvlias at (916-383-5011), Fax (383-9405).

Dalfen's Limited is selling four strip centers each 20,000 sq.ft. to 35,000 sq.ft. and fully leased. The centers, which are located in Newfoundland and New Brunswick, Canada, can be purchased as a group or individually.

For details, contact Murray Dalfen at (514-344-5010), Fax (342-4473).

PropertyLink is looking for a principal interested in a partnership interest in a retail project. The asking price is $700,000.

For details, contact Don McCoon at (209-667-1196), Fax (667-1196)

Ley Properties has the listing to sell Circle K Center in Pearland, TX. The 18,000 sq.ft. project is located in the central business district on a new five-lane road. The site has undervalued rents, 90 parking spaces and upside potential. The asking price is $1.3 million.

For details, contact Abby Gale Brown at (713-627-1770), Fax (627-1774).

Investors Real Estate Network has the listing to sell PB Outlet Mall in West Palm Beach, FL. The 108,000 sq.ft. mall has factory outlet tenants, two out parcels and an 86,000 sq.ft. expansion pad. The asking price is $6.2 million.

For details, contact Ron Sadaka at (407-833-9100), Fax (655-2417).

Harle Properties, Inc. has the listing to sell five freestanding 13,500 sq.ft. Walgreen's Drug stores under construction. Leases run 60 years. The package shows an NOI of approximately $1,366,273. The asking price is $15.18 million based on a 9% cap. Financing is available.

For details, contact Michael Staver at (817-481-8181), Fax (488-5841).

Who's Opening and Where...

Barnes & Noble, Inc. (212-633-3311) recently opened a store on Citadel Drive in Colorado Springs, CO. The company operates 268 bookstores nationwide.

D.I.Y Home Warehouse, Inc. (216-328-5100) recently opened an 83,000 sq.ft. store with a 20,000 sq.ft. outdoor lawn and garden center in Medina, OH and an 86,000 sq.ft. store with a 15,000 sq.ft. outdoor lawn & garden center in Mentor, OH. The company is planning to open two more stores in the Akron, OH area during the second quarter this year. The company operates 13 locations in Ohio.

Baby Superstore (404-984-1323) plans to open a store at Coral Way Plaza in Westchester, FL during July. The company is also looking for up to eight additional sites in South Florida. The company operates 46 locations.

KidSource (407-995-8444) plans to open a store in Kendall, FL during July.

ABC Warehouse (313-335-4222) recently opened a 35,000 sq.ft. store in Brighton, MI. The company also plans to open two more stores later this year.

Cinemark (214-696-1644) recently opened a movie theater at Woodhill Center in Lexington, KY. The theater has rocking chairs, a computerized ticket system and a digital sound system. The company operates 1,200 screens in 27 states.

Ingles Markets, Inc. (704-669-2941) is rolling out a new concept it calls "one-stop shopping." Using megastores, which are approximately 52,000 sq.ft., the supermarket company offers more than 20,000 items, from car wax to cream cheese, at its stores. Other services include a bank teller to cash checks. The company has opened eight megastores in GA and NC and is planning to renovate or build 15 more this year. Overall, the company operates 182 stores in six Southeastern states.

Borders, Inc. (313-913-1393) plans to open a store in Thousand Oaks, CA during February 1996.

Today's Man (609-235-5656) recently opened a superstore in Skokie, IL. The company is planning to open stores in Northbrook and in the Near North neighborhood of Chicago, IL this fall. The company is also planning to open 12 stores in the Chicago area in the next three years. In addition to its Skokie location, the company operates stores in Schaumburg, Naperville and Oakbrook Terrace, IL.

Financial News

Best Buy Co., Inc. (612-947-2443) reported that earnings increased 38% in fiscal 1995 over fiscal 1994. Earnings increased to $57.651 million compared to $41.71 million in FY94. Revenues of $5.08 billion in FY95 were 69% higher than FY94 and were attributed to the addition of 53 stores to the electronics chain. The company plans to open 47 stores in fiscal year 1996, including seven in the Miami, FL area. An additional 20 stores will be expanded or relocated. The company currently operates 204 stores in 27 states.

CKE Restaurants, Inc. (714-778-7109) reported mixed fiscal 1995 results. Net income was $1.3 million, down from $3.7 million last year. Operating income, exclusive of the operating losses sustained by the company's Boston Chicken franchise operations, increased 11% to $11.7 million. Revenues for FY95 were $443.7 million compared to $463.5 million last year. CKE Restaurants, Inc. is the parent company of Carl Karcher Enterprises, Inc. which operates 660 Carl's Jr. restaurants in CA, NV, OR, AZ and Mexico, as well as 27 Boston Chicken restaurants.

T.J. Cinnamons, Inc. (201-422-0910) reported a net loss of $2.5 million for its fiscal year ended December 31, 1994. However, revenues for the same period increased 26%. The company, an operator and franchisor of retail bakeries specializing in gourmet cinnamon rolls, has implemented a personnel, occupancy, operational and administrative cost reduction plan for FY95.

Blockbuster Entertainment (305-832-3320), the largest shareholder of Discovery Zone Fun Center, is taking over the management of the company. The take over comes after Discovery Zone announced it ended 1994 with a loss of $24.9 million compared to a 1993 profit of $3.3 million. As part of the takeover, Blockbuster is selling its Block Party entertainment centers in Albuquerque, NM and Indianapolis, IN to Discovery Zone for $15 million.

Realty Resources (610-687-6444) member firms recorded more than $74 million in leasing and sales transactions in March, down from $90 million in March of 1994. The downturn is attributed to a shortage of available space which is leading many retailers to opt for build-to-suit deals. Realty Resources is a nationwide network of commercial brokerage firms specializing in retail real estate.

Foley's, a division of May Department Stores Co. (314-342-6466), reported that sales in 1994 rose to $1.63 billion from $1.58 billion in 1993. Foley's operates 49 department stores.

Tandy Corporation (817-390-3011) reported that first quarter results showed retail sales were 31% higher over the same period last year. The first quarter ended March 31. Sales and operating revenues for the quarter were up 24% to $1.226 billion. Sales for the same period last year were $992 million. The company operates 6,700 Radio Shack stores, 73 Computer City Supercenters and nine Incredible Universe stores.

Starbucks (206-447-7272) reported that during its second fiscal quarter, which ended April 2, consolidated net sales increased 66% to $101 billion compared to $61 billion for the same period in 1994. Increases were also reported in retail sales (62%), specialty sales (110%) and mail order sales (50%). During the second quarter the company opened 57 stores and operates 539 locations in CA, CO, CT, GA, IL, MD, MA, MN, NV, NJ, NY, OR, PA, TX, VA, WA, Washington, D.C. and British Columbia, Canada. The company plans to open 110 stores during the second half of its fiscal year.

Broadway Stores, Inc. (213-227-3884) is contemplating the sale of its 12 Broadway Southwest stores. The stores are located in AZ, CO, NM and NV. The company operates 83 department stores under the tradenames of The Broadway, Emporium and Weinstocks.

Kohlberg Kravis Roberts & Co. agreed to buy Bruno's, Inc. (205-940-9546) for approximately $1 billion. Bruno's operates 254 supermarkets under the tradenames of Bruno's, Food Max, Food World, Food Fair and Piggy Wiggly in AL, FL, GA, and MS. KKR, which is buying 97% of Bruno's stock, plans to finance the deal with $270 million in cash and the balance through bank loans and debt securities.

Lead Sheet

Simply Fashion Stores, Ltd.

dba Simply Fashions

Beth Sullivan

PO Box 188

Birmingham, AL 35201-0188

205-951-1700, Fax 951-1510

Apparel

The 190-unit chain operates locations in AL, AZ, FL, IL, IN, KS, KY, MO, NM, OH, TX, AR, GA, LA, MS, NC, SC, TN and VA. The stores occupy spaces of 2,600 sq.ft. to 3,600 sq.ft. in strip centers. Preferred anchors include Wal*Mart, Kmart and major supermarket chains. Growth opportunities are sought in Miami, FL, MD and Washington, D.C. Preferred demographics include a population of at least 50,000 within three miles earning an average income of $32,000 or less.

Develco

dba Oil Changers

Seth Bland

4511 Willow Road/ Suite 1

Pleasanton, CA 94566

510-734-5800, Fax 734-5858

Automotive

The 42-unit chain operates locations in CA. The automotive service centers, featuring an oil change in 10 minutes or the next visit is free, occupy freestanding facilities on a land area of 10,000 sq.ft. to 20,000 sq.ft. Plans call for up to 12 openings in the coming 18 months. Expansion will take place in CA.

Mr. Paperback

Robert Foss

1135 Hammond Street

Bangor, ME 04401

207-990-4107, Fax 942-9226

Books

The 18-unit chain operates locations in ME. The stores occupy spaces of 4,000 sq.ft. to 12,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market. Leases running 10 years are typical.

Wills Book & Stationary Co., Inc.

dba Wills Book & Stationary

Randy Jorgensen

103 Longale Road

Greensboro, NC 27419

910-299-1411, Fax 299-1414

Books

The 12-unit chain operates locations in NC, SC and VA. The book stores occupy spaces of 4,000 sq.ft. to 12,500 sq.ft. in regional malls and freestanding facilities. Plans call for three openings in the coming 18 months. Expansion will take place in the existing markets.

1/2 Off Cards, Inc.

Stuart Kramer

First Development Corporation

1328 Motor Parkway

Hauppauge, NY 11788

516-234-3200

Card Store

The 220-unit chain operates locations throughout North America. The discount card stores occupy spaces of 2,000 sq.ft. in power and strip centers. Plans call for 15 openings in the coming 24 months. Expansion will take place in the Long Island, NY market. Leases running 10 years are typical.

Just A Buck

Steve Bakst/Stacy Sheinbaum

315 Rt. 211 East

Middletown, NY 10904

800-332-2229, 201-871-0370

Fax 871-7168

Discount

The 18-unit chain operates locations in NY, MA, OH, CT, PA, FL and VA. The stores, selling general merchandise at the fixed price point of $1, occupy spaces of 3,000 sq.ft. to 5,000 sq.ft. in regional malls, outlet and power centers. Preferred anchors include Wal*Mart and Kmart. Plans call for 15 openings in the coming 18 months. Expansion will take place in the East Coast. Leases running 10 to 20 years are typical. The company is franchising.

Arbor Drugs

Robert Beal

PO Box 2510

Troy, MI 48007-2510

810-643-9420, Fax 637-1679

Drug Store

The 162-unit chain operates locations in MI. The stores occupy spaces of 11,000 sq.ft. in freestanding facilities and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing market.

Marcus Theater Corp.

dba Marcus Theater

Greg Marcus

250 E. Wisconsin Avenue #1600

Milwaukee, WI 53202-4223

414-274-0514, Fax 272-5878

Entertainment

The 43-unit chain operates locations in WI and IL. The theaters occupy spaces of 45,000 sq.ft. to 50,000 sq.ft. in regional malls, strip centers and freestanding facilities. Growth opportunities are sought in the existing markets.

Quizno's Corporation

dba Quizno's Classic Subs

Ronald J. Feldman

7555 E. Hampden Avenue/ Suite 601

Denver, CO 80231

303-368-9424, Fax 368-9454

Food

The 72-unit chain operates locations in CO, IL, FL, MO, CA, MI, UT, GA, NM, IN and NE. The Italian deli style restaurants, featuring oven baked sub sandwiches, salads, soups and desserts, occupy spaces of 1,200 sq.ft. to 1,700 sq.ft. in downtown store fronts, regional malls, outlet, power, speciality, and strip centers as well as freestanding facilities. Plans call for 100 openings in the coming 18 months. Expansion will take place in AZ, ID, KS, KY, MT, OH, NV, NC, OK, TN, TX, WA, WI, WY and OR. The company is franchising.

MacFrugals Bargains-Closeouts, Inc.

dba MacFrugel's Bargains/Closeouts

Patricia Wehner

2430 East Del Amo Boulevard

Dominguez, CA 90220

310-761-4167, Fax 631-8567

General Merchandise

The 280-unit chain operates locations in AL, AZ, CA, CO, FL, GA, ID, LA, NM, NV, TX, UT and IL. The stores occupy spaces of 20,000 sq.ft. in power and strip centers as well as freestanding facilities. Growth opportunities are sought in the existing markets.

Quality Stores, Inc.

dba Farm & Fleet, County Post

Donald M. Kettler

1460 Whitehall Road

North Muskegon, MI 49445

616-744-2491, Fax 744-2136

General Merchandise

The 90-unit chain operates locations in IN, OH, MI, PA, NY and WV. The stores sell soft goods, agricultural supplies, hardware, home improvement items and automotive parts. The Farm & Fleet stores occupy spaces of 30,000 sq.ft. to 45,000 sq.ft. in strip centers and freestanding facilities and the County Post stores occupy spaces of 15,000 sq.ft. in strip centers and freestanding facilities. Plans call for five openings in the coming 18 months. Expansion will take place in the existing markets.

Aco, Inc.

dba Aco Hardware

David Gronbach

23333 Commerce Drive

Farmington Hills, MI 48335

810-615-2604, Fax 615-2696

Hardware

The 65-unit chain operates locations in MI. The stores occupy spaces of 8,000 sq.ft. to 10,000 sq.ft. in strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. Leases running 10 years are typical.

Peppermint Records

dba Peppermint Music

Justice Wade

881 Memorial Drive SE

Atlanta, GA 30316

404-223-0144, Fax 223-0144, Ext. 237

Music

The 13-unit chain operates locations in AL, GA, LA, MS and NC. The record stores occupy spaces of 1,500 sq.ft. to 3,500 sq.ft. in power centers and small regional malls. Plans call for 15 openings in the coming 18 months. Expansion will take place in the existing markets as well as SC. Leases running five years are typical.

Sports Shoes, Inc.

dba The Sports Shoe

Marty Jung

1770 Corporate Drive

Norcross, GA 30093

404-279-7494, Fax 279-7180

Shoes

The 19-unit chain operates locations in GA. The stores occupy spaces of 4,500 sq.ft. in upscale strip centers. Plans call for three openings in the coming 18 months. Expansion will take place in GA.

Ace Cash Express

dba Ace America's Cash Express

William Gibbs

1231 Greenway Drive

Irving, TX 75038

214-550-5000, Fax 550-5150

Specialty

The 400-unit chain operates locations in AR, CO, GA, LA, MD, NC, OH, SC, TX, VA, MN, AZ, OK and Washington, D.C. The stores, offering check cashing and related services, occupy spaces of 1,000 sq.ft. to 1,200 sq.ft. in strip centers and freestanding facilities. Plans call for 90 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running three years with options are typical.

Samson Sales, Inc.

dba Sam's World of Golf & Tennis

Arnold Kohn

23215 Commerce Park/ Suite 214

Beachwood, OH 44122

216-360-0294, Fax 360-0993

Sporting Goods

The 15-unit chain operates locations in MD, OH and PA. The stores occupy spaces of 4,500 sq.ft. to 5,500 sq.ft. in strip centers. Plans call for one opening in the coming 18 months. Expansion will take place in OH.

Fresh Fields Markets

dba Fresh Fields

Maurice Kreindler

4948 Boiling Brook Parkway

Rockville, MD 20852

301-984-4874, Fax 231-9602

Supermarket

The 17-unit chain operates locations in VA, MD, IL, PA and CT. The supermarkets, offering natural food products as well as a full service deli and bakery, occupy spaces of 15,000 sq.ft. to 30,000 sq.ft. in strip centers and freestanding facilities. Plans call for 12 openings in the coming 18 months. Expansion will take place in the existing markets as well as NJ, NY and Washington, D.C.

Space Place

Massachusetts

Watertown- Watertown Mall is anchored by Stop 'N Shop, Walgreens and Bradlees. The 250,000 sq.ft. project has a 4,900 sq.ft. space available for lease. The site is located near Arsenal Mall. Demographics include a three-mile population of 301,000 earning $59,000 as the average household income and a five-mile population of 730,000 earning $57,000 as the average household income.

For details, contact David Rosen of Rosen Associates Management Corp. at (516-822-5350), Fax (433-3821).

Michigan

Owosso- Wal*Mart Plaza is anchored by Wal*Mart, Fashion Bug and Toy Works. The 153,000 sq.ft. project has spaces available for lease in Phase II. Other tenants include Dollar Tree, Maurice's, Rent-A-Center, Sally Beauty Supply and H&R Block. The site fronts M 21. Demographics include a five-mile population of 28,000 earning $28,000 as the average household income and a 10-mile population of 49,000 earning $30,000 as the average household income.

For details, contact Jay D. Stein of Sandor Development Co. at (317-925-9011), Fax (927-0725).

Montana

Missoula- Holiday Village Shopping Center is anchored by Albertson's, Osco Drugs and Joanne Fabrics. The 126,000 sq.ft. project has a 7,200 sq.ft. space available for lease. The site is located near the University of Montana. Demographics include a three-mile population of 54,000 earning $32,000 as the average household income, a five-mile population of 63,000 earning $34,000 as the average household income and a 10-mile population of 73,000 earning $35,000 as the average household income.

For details, contact David Rosen of Rosen Associates Management Corp. at (516-822-5350), Fax (433-3821).

New York

Massena- Massena Towne Centre is anchored by Wal*Mart. The 220,000 sq.ft. project has spaces from 3,000 sq.ft. available for lease in Phase II as well as up to four outparcels available for lease. The site fronts NY State Route 37 and is located near the 750,000 sq.ft. St. Lawrence Center Mall. Demographics include a 25-mile population of 67,104 earning $36,000 as the average income.

For details, contact Gloria Mercado of Brahin Properties at (215-563-7222), Fax (563-2449).

West Babylon- Great South Bay is anchored by Caldor, J.C. Penney, Swezey's and Best. The 514,746 sq.ft. project has spaces of 1,600 sq.ft., 3,750 sq.ft. and 6,500 sq.ft. available for lease. The site fronts Montauk Highway and Wellwood Avenue.

For details, contact Greg Levine of Mall Properties, Inc. at (212-935-1330), Fax (832-5369).

North Carolina

Greenville- Greenville Square is anchored by Kmart and Office Depot. The 155,000 sq.ft. project has a 2,400 sq.ft. space available for lease. The site fronts Arlington Boulevard and Bypass Rt. 264. Demographics include a three-mile population of 63,489 earning $31,219 as the average income.

For details, contact Joe Savaro of Brahin Properties at (215-563-7222), Fax (563-2449).

Pennsylvania

St. Davids- St. Davids Square is anchored by T.J. Maxx, Filene's Basement, Drug Emporium, Genuardi and Micro Center. The 216,891 sq.ft. project has a 2,500 sq.ft. space available for lease. The site fronts Route 30.

For details, contact Greg Levine of Mall Properties, Inc. at (212-935-1330), Fax (832-5369).

Virginia

Virginia Beach- Mast Farm Property is a planned 157-acre development that will be anchored by a 190,000 sq.ft. Super Kmart. Approximately 90,750 sq.ft. of additional space is available for lease by big-box users. Outparcels are also available for lease. The site fronts Independence Boulevard and Holland Road at Windsor Oaks Boulevard and is located between Pembroke Mall and Lynnhaven Mall. Demographics include a five-mile population of 300,000 earning $48,000 as the average household income.

For details, contact Joseph Mersel of S.L. Nusbaum Realty Co. at (804-627-8610 or 627-8611), Fax (640-2292).

Conversions & Expansions

The Citadel Mall in Colorado Springs, CO is undergoing $40 million worth of renovations and new construction. A three-story, 183,000 sq.ft. Dillard's Department Store is being added to the mall to join anchors Foley's, JC Penney and Mervyn's. The construction will bring the GLA of the mall to 1.1 million sq.ft. Additional seating at the food court is being added along with new storefronts for upper level stores. Outside, a vacant car repair garage is being torn down to make room for additional parking. The work is expected to be completed during August.

For more information, contact Robert Taylor, vice president and general manager of The Citadel Mall at (719-591-2900).

Alamo Hills Plaza in San Antonio, TX recently underwent renovations and a name change and is now looking to change its focus to specialize in home furnishings and design stores. Formerly named Austin Hills, the project was anchored by Kroger supermarket and Walgreens drug store. Currently, the largest tenant at the 120,000 sq.ft. project is the Texas Employment Commission. Insignia Commercial Group, Inc., who was hired to handle the renovations and repositioning of the site, is currently soliciting national furniture chains and home furnishing stores for the project in addition to restaurants and entertainment businesses.

For more information, contact Randy Edwards of Insignia Commercial Group, Inc. at (214-373-9969).

Retailers Keeping Up with The Times

Montgomery Ward (312-467-2000) and ValueVision International, Inc. have signed definitive operating, equity, license and service agreements. Under the terms of the 10-year agreement, Montgomery Ward will purchase 1.28 million shares of common stock in ValueVision for $8 million. ValueVision announced that the company is adding the words, "The Brand Name Channel" to its programming graphics and logo. ValueVision is the third largest home shopping network. The combining of the two companies will allow ValueVision access to Montgomery Ward merchandise at cost, enabling ValueVision to expand its product offerings.

Swerland Apparel Ventures, Inc. (SAVI) (206-575-8300) sells current fashions for men and women at discounts up to 40%. However, the store is only open on Fridays, Saturdays and Sundays. Located in a 14,000 sq.ft. office in Tukwila, WA, the store is able to offer items at a discount because the overhead is so low. The company is hoping that the idea catches on and plans are in the works to open similar stores in Bellevue, Seattle and Tacoma.

Kmart (810-643-1000) is testing a concept called "convenience centers" at 15 of its stores. Convenience centers are usually located near the cash registers and carry items normally found in convenience stores. If the test proves successful, the company plans to add them to new and remodeled stores. The company is also experimenting with or contemplating several other ideas including: expanded furniture departments, moving "impulse items" to the front of the store for better visibility, emphasizing baby and children's merchandise, opening smaller Super Kmart Centers in communities that are not large enough for the typical 185,000 sq.ft. stores, creating security departments where customers can find everything from pad locks to smoke detector in one place, selling its in-store restaurants to an outside chain, selling its auto centers to an outside chain and stocking more national brands while decreasing its inventory of private labels and generic products.

Dayton Hudson (612-375-2200) plans to begin using in-store electronic kiosks to sell tableware at selected stores during August. The kiosk will allow a customer to see, choose and purchase with a credit card dinner plates, glasses and flatware.