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The
Dealmakers Issue Number 21 for the week of June 16, 1995. My Way
by Ted Kraus One of
the more popular topics of discussion in Vegas was a statement made by, I believe, a
luncheon speaker, stating that Wal*Mart and Kmart alone have an excess of 34 to 36 million
sq. ft. of surplus space. Thinking it through, at only $3.50 psf in carrying costs and an
average of five years left on the lease, that's $600 MILLION in liabilities, not including the manpower costs of attempting to
lease the space. Saying they represent 20% of
the available space for subleasing nationwide (by credit tenants, let's discount the ma/pa
tenants) and we're talking $3 billion dollars in liabilities... money even Congress would
respect. What makes matters worse is this
isn't prime or even secondary space, it's tertiary at best.
Most have been offered to the same 200 national/regional retailers at least 20
times in the past two months alone. Some
space just can't be leased. There are still
some vacant WT Grants' stores available and until fire or flood comes the owners way, they
will remain that way. Retailers have set up
surplus space departments, spent money on mass mailings and teleleasing and advertising
(thank you), but they have been able to eliminate only the tip of the iceberg; the good
stuff... the garbage keeps settling back at the bottom of the list. Until recently, most of these retailers, in the
back of their minds, thought of their surplus properties as an "asset" where
they could make money in subleasing (and in some rare cases, they did). Today, as top management begins to realize the
potential threat these liabilities have on their company's bottom line, the "Surplus
Space VP" is under pressure to make almost any deal.
Better to sublease and subsidize another retailer $2 psf than have to pay the
entire occupancy cost of $6 yourself. A few
years ago, I received a call from the
chairman of a major retail chain with a considerable amount of surplus property. He wanted to know what we could do to assist them
in leasing. I did my dog and pony show in
addition to providing substantial insight on what his company was doing wrong in
subleasing (probably my biggest mistake). He
was "shocked" or didn't believe what I said about his company and had the head
of their real estate department get involved. Reluctantly,
I repeated myself and ended up in a "debate" with his VP. Needless to say, I didn't get the assignment, but
I am happy to report they followed the VP's advice and now have an additional five million
sq. ft. to lease. (If I can't make money, I
might as well derive satisfaction from being right).
While they have made some departmental improvements, overall they have no idea what
they are doing when it comes to subleasing. Although
I don't expect them to be calling me back in this lifetime, this is the type of property
many people call me about every day seeking help. Few
seem to like what I have to say on what has to be done, and in my old age, I seem to be
becoming more candid with every caller. Because
we're offered and work on this type of property all the time, I'm becoming a control
freak, at least when it comes to dealmaking/brokerage in real estate. Without "control" to some degree, the
broker in seven out of 10 times gets "screwed" and the deal is either not done
or takes forever to close. I get frustrated
after I introduce the buyer/tenant to the owner. If
I'm not the management company, it seems both parties seem to forget I exist (unless a
major problem occurs, than I get 18 phone calls within 15 minutes from both sides). If I am the management company, than they need my
"information" and everything appears to go smoother. That's the main reason we want management. In itself, management is boring and not very
profitable (but does help pay the overhead) but by "controlling leasing and sales, it
becomes sexy and profitable. Being forgotten
wouldn't be that bad if I knew I was going to be paid and the deal done, but in most
cases, both parties need me as a mediator. Without
sounding like an egomanic, I usually understand the potential problems better than the
retailer or developer (mostly, I think because I usually use common sense and I'm not
emotionally involved). Keeping me involved
(or any broker who's competent) usually makes the deal go smoother, faster and lowers the
chance that the deal will die. Another
reason for needing to be involved is it eliminates any "problems" when it
becomes "payday." That's when the
owner always wants to argue, "well, all you did was make a phone call and introduce
me; how can you justify that much money?" It's
simple, I knew the phone number to call and "you" don't pay me for deals not
done (rightfully so); therefore when I "hit", I have to "hit" big (or
at least decent). What I
have learned these last few years is that I'm better off having a smaller
leasing/management company, doing less deals but spending more time per deal. It also makes more sense to work only on the
"bigger deals" which at the end of the year, nets us more. Now don't get me wrong, I'm not against or above
smaller deals, it's just that you have to have a larger organization than we have to do
'em or at least justify 'em. Six years ago,
I'll never forget, we grossed close to $4 million and lost money. (It wasn't easy but I'm talented). We had something like 23 people in our leasing
department and I got to play "executive" (which I learned, the hard way, I'm not
good at). Today, at least theoretically, we
pick and choose what we work on, and if I can't make a decent dollar off it, I don't take
an assignment. It isn't because we don't want
assignments, it's that I've learned I don't make money off crummy assignments. I get two dozen calls a week wanting to know if we
want to work on an "open" listing, and in Vegas, I could have gotten 20 centers
to work on. When I was young and innocent
(about 10 months ago) I'd work on 'em. Today,
I explain to the owner, "you have a problem, you want me to bust chops trying to make
an extremely difficult deal, then if I'm lucky, you'll pay me what amounts to half a
commission. No thank you." They usually reply "all you have to do is
make a few phone calls, I'll do the rest." Either
they are stupid or I have no idea what leasing is about.
In 25 years of doing this, I've never just made a phone call to get a deal done. If it's that simple, why bother paying a
commission, the owner could do it himself. Of
course, they come back that they're too busy picking out the color of the toilet paper for
their office to be involved in leasing. Mid-Atlantic
Sites Sought The
White House operates 35 locations in MD, VA, PA, FL, NC, SC, NJ, CA, AZ, TX and
Washington, D.C. The stores sell women's
apparel, accessories and gifts, all of which is white, using spaces of 1,000 sq.ft. in
upscale malls and specialty centers. Growth
opportunities are sought in the existing markets. For more information, contact Rick Sarmiento, The
White House, 7600 Energy Parkway, Baltimore, MD 21226-1733; 410-437-7747, Fax 437-8922. Food
Lion, Inc. trades as Food Lion at 1,049 locations in DE, FL, GA, KY, MD, NC, SC, TN, VA,
WV, TX, OK, LA and PA. The supermarkets
occupy spaces of 29,000 sq.ft. to 33,000 sq.ft. in power and strip centers. Plans call for 50 openings in the coming 18
months. Expansion will take place in the
Mid-Atlantic and Southeast regions. For more information, contact Ed Oberle, Food
Lion, Inc., 2110 Executive Drive, Salisbury, NC 28145; 704-633-8250, Fax 636-5024. Hi-Gear
Tire & Auto Supply trades as Hi-Gear Auto at 66 locations in MD, VA and Washington,
D.C. The automotive supply stores occupy
spaces of 4,000 sq.ft. in strip centers and freestanding facilities. Growth opportunities are sought in the existing
markets. Leases running five years with a two
to three-year option are typical. For more information, contact Stanley Love,
Hi-Gear Tire & Auto Supply, 110 Ritchie Road, Capitol Heights, MD 20743; 301-336-3000,
Fax 499-4805. Wawa,
Inc. trades as Wawa at 525 locations in CT, DE, MD, NJ and PA. The convenience stores occupy freestanding spaces
of 3,200 sq.ft. Plans call for 10 openings in
the coming 18 months. Expansion will take
place in the existing markets. Leases running
30 years are typical. For more information, contact Frederic Schroeder,
Wawa, Inc., 260 Baltimore Pike, Wawa, PA 19063; 610-358-8000, Fax 358-8828. GFS
Realty, Inc. trades as Giant Food and Super G at 162 locations in VA, MD, DE, PA, NJ and
Washington, D.C. The supermarkets occupy
spaces of 61,000 sq.ft. to 66,000 sq.ft. in power, specialty and strip centers as well as
freestanding facilities. Plans call for nine
openings in the coming 18 months. Expansion
will take place in the Washington, D.C.-Baltimore, MD and Philadelphia metropolitan areas. Leases running 25 years are typical and the
company prefers to build its own stores. For more information, contact Eugene Doerfler, GFS
Realty, Inc., PO Box 1804, Dept. 671, Washington, D.C. 20013; 301-341-8422, Fax 618-4969. Valu
Food, Inc. trades as Valu Food at 16 locations in MD and PA. The supermarkets occupy spaces of 40,000 sq.ft. to
55,000 sq.ft. in strip centers. Growth
opportunities are sought in the existing markets. Preferred
demographics include a three-mile population of 20,000 earning $40,000 as the average
income. Leases running 30 years are typical. For more information, contact Louis Denrich, Valu
Food, Inc., 4701 O'Donnell Street, Baltimore, MD 21224; 410-342-3910, Fax 342-6352. Spain's,
Inc. trades as Spain's and Dollar Express at 76 locations in PA, NJ and DE. Spain's stores sell cards and gifts while using
spaces of 3,000 sq.ft. to 11,000 sq.ft. and Dollar Express stores sell general merchandise
while using spaces of 7,000 sq.ft. to 12,000 sq.ft. The
company prefers to locate its stores in power and strip centers as well as freestanding
facilities. Preferred anchors include Kmart,
Wal*Mart, Bradlees and Caldor. Plans call for
14 openings in the coming 18 months. Expansion
will take place in PA, NJ, DE and MD. For more information, contact Howard Savage,
Spain's, Inc., 1700 Tomlinson Road, Philadelphia, PA 19116; 215-969-7888, Fax 676-1166. Melville
Corp. trades as Bob Stores at 24 locations in MA, CT, NH, RI, NY, NJ and PA. The family clothing stores occupy spaces of 40,000
sq.ft. to 50,000 sq.ft. in power and strip centers. Preferred
anchors include supermarkets and superstores (i.e. books, music, electronics and home
improvement). Plans call for 20 openings in
the coming 18 months. Expansion will take
place in VA, MD and Washington, D.C. Preferred
demographics include a population of 200,000 within five miles earning at least $50,000 as
the median household income. Leases running
10 years are typical. For more information, contact Dan Katz, Melville
Corp., 1 Theall Road, Rye, NY 10580; 914-925-4170, Fax 925-4010. Holiday
Hair Fashions trades as Holiday Hair at 195 locations in PA, NJ, DE, MD, WV and VA. The hair salons occupy spaces of 900 sq.ft. to
1,200 sq.ft. in strip centers. Preferred
anchors include Kmart, Wal*Mart and supermarkets. Plans
call for 12 openings in the coming 18 months. Expansion
will take place in the existing markets. Leases
running three years are typical. For more information, contact Ron Chmielewski,
Holiday Hair Fashions, PO Box 268, 2020 Hamilton Street, Allentown, PA 18105;
610-820-4930, Fax 820-4941. The
Cosmetic Center, Inc. trades as The Cosmetic Center at 71 locations in VA, MD, PA, NC and
GA. The beauty supply stores occupy spaces of
6,000 sq.ft. to 6,500 sq.ft. in power centers. Preferred
anchors include T.J. Maxx, women's ready-to-wear stores, shoe stores and fabric stores. Plans call for 15 openings in the coming 18
months. Expansion will take place in the
existing markets. Preferred demographics
include a population of 100,000 within three to four miles earning $42,000 as the average
income. Leases running 20 years are typical. For more information, contact Ben Kovalsky, The
Cosmetic Center, Inc., 8839 Greenwood Place, Savage, MD 20763; 301-497-6800, Fax 497-6632. Fairworld,
Inc. trades as Festival Cleaners at 18 locations in VA, MD and Washington, D.C. The dry cleaners occupy spaces of 1,200 sq.ft. to
1,800 sq.ft. in power and specialty centers. Preferred
anchors include supermarkets. Plans call for
three openings in the coming 18 months. Expansion
will take place in VA, MD, NJ, TX, GA or IL. Leases
running 10 years are typical. For more information, contact Joseph Park,
Fairworld, Inc., 7531 Leesburg Pike/ Suite 201, Falls Church, VA 22043; 703-821-6808, Fax
356-3670. Landhope
Corporation trades as Landhope Farms at 15 locations in PA, MD and DE. The convenience stores occupy spaces of 3,000
sq.ft. in freestanding facilities. Plans call
for the opening of four units in the coming 18 months.
Expansion will take place within the tri-state region of DE, MD and PA. Leases running 25 years are typical. For more information, contact Mark G. Meleski,
Landhope Corporation, 101 E. Street Road, Kennett Square, PA 19348; 610-444-3300, Fax
444-2926. Youngworld
operates 32 locations in NY, NJ, PA and MD. The
stores, selling children's apparel and juvenile furniture, occupy spaces of 15,000 sq.ft.
to 20,000 sq.ft. in downtown store fronts, regional malls, power, specialty and strip
centers. Preferred anchors include Bradlees,
Caldor and Wal*Mart. Plans call for 15
openings in the coming 18 months. Expansion
will take place in the existing markets. Preferred
demographics include a population of 100,000 within three miles earning $25,000 as the
average income. Leases running 15 years are
typical. For more information, contact Hymie Chera,
Youngworld, 59 Hook Road, Bayonne, NJ 07002; 201-823-8200, Fax 823-8232. Dean
& DeLuca, Inc. trades as Dean & Deluca at 15 locations in NY, NJ, PA and
Washington, D.C. The specialty supermarkets
occupy spaces of 10,000 sq.ft. and the cafes occupy spaces of 1,500 sq.ft. to 2,000 sq.ft.
in power centers and regional malls. Preferred
anchors include Lord & Taylor, Nordstroms and Tiffany's. Plans call for 10 openings in the coming 18
months. Expansion will take place in the
existing markets. Preferred demographics
include a population of 50,000 within three miles earning $70,000 as the average income. Leases running 10 years are typical. For more information, contact Thomas Thornton,
Jr., Dean & DeLuca, Inc., 560 Broadway, New York, NY 10012; 212-431-1691, Fax
334-6183. Silver
Diner Development, Inc. trades as Silver Diner at five locations in VA and MD. The restaurants occupy spaces of 5,500 sq.ft. in
freestanding facilities. Preferred anchors
include upscale power centers, theaters, book stores and record stores. Plans call for up to four openings in the coming
18 months. Expansion will take place in VA,
MD, FL and Washington, D.C. Preferred
demographics include a population of 100,000 within five miles earning $50,000 as the
average income. Leases running 15 years are
typical. For more information, contact William Miller,
Silver Diner Development, Inc., 2551 Virginia Avenue N.W., Washington, D.C. 20037;
202-298-5500, Fax 333-2958. Capital
Management Development Corp. trades as Paolo's, J. Paul's, Old Glory, Pik-A-Pita, Georgia
Brown and Georgetown Seafood Grille at 14 locations in MD, VA and Washington, D.C. The casual upscale dining restaurants occupy
spaces of 5,000 sq.ft. in downtown store fronts, strip centers and freestanding
facilities. Preferred anchors include
upscale retailers, entertainment locations and restaurant cluster locations. Plans call for the opening of four units within
the coming 18 months. Expansion will take
place in the Washington, D.C.-Baltimore, MD metropolitan areas. Leases running 10 years are typical. For more information, contact Steven Fairbanks,
Capital Management Development Corp., 1305 Wisconsin Avenue N.W., Washington, D.C. 20007;
202-333-7336, Fax 333-6395. Timothy's
World Coffee operates 65 locations in NY, PA, MA and Washington, D.C. The gourmet coffee shops occupy spaces of 700
sq.ft. to 2,000 sq.ft. in downtown store fronts. Preferred
anchors include office buildings, book stores and upscale retail stores. Plans call for 20 openings in the coming 18
months. Expansion will take place in the
existing markets. Leases running 10 years are
typical. For more information, contact James de Winter,
Timothy's World Coffee, 1200 W. Broadway, Hewlett, NY 11557; 516-295-0406, Fax 374-0999. U.S.
Factory Outlets, Inc. trades as U.S. Factory Outlets at 23 locations nationwide. The discount stores, selling general merchandise,
apparel and closeouts at bargain prices, occupy spaces of 30,000 sq.ft. to 52,000 sq.ft.
in regional malls, power and strip centers. Growth
opportunities are sought nationwide. For more information, contact Frederic Raiff, U.S.
Factory Outlets, Inc., Seven Penn Plaza, New York, NY 10001; 212-563-3650, Fax 967-9872. First
Development Corporation trades as The Coffee Connection and New World Coffee at 30
locations in NY, NJ, MA and CT. The gourmet
coffee stores occupy spaces of 800 sq.ft. to 2,500 sq.ft. in downtown store fronts,
regional malls, power, specialty and strip centers as well as freestanding facilities. Preferred anchors include theme restaurants,
department stores and active downtown areas. Plans
call for 75 openings in the coming 18 months. Expansion
will take place in NY, NJ, MA, CT, MD, VA and IL. Preferred
demographics include a population of 100,000 within three miles earning $50,000 as the
average income. Leases running 10 years are
typical. For more information, contact The Director of Real
Estate, First Development Corp., 1328 Motor Parkway, Hauppauge, NY 11778; 516-234-3200,
Fax 234-3696. Legal
Sea Foods, Inc. trades as Legal Sea Foods at 12 locations in MA and Washington, D.C. The seafood restaurants occupy spaces of 9,000
sq.ft. in downtown store fronts and regional malls. Preferred
anchors include Nordstroms, Macy's, Bloomingdale's and Lord & Taylor. Plans call for three openings in the coming 18
months. Expansion will take place in VA, MD,
NJ, PA and Washington, D.C. Leases running 10
years with options are typical. For more information, contact John Olson, Legal
Sea Foods, Inc., 33 Everett Street, Allston, MA 02134; 617-783-8084, Fax 254-5573. Magic
Wok International trades as Mr. Wu's, Cajun Cafe and Grill and Little Tokyo at 100
locations in NY, NJ, OH, CA, MI, NC, IN, FL, GA, MA, CT and PA. The fast food Chinese, Japanese and Cajun
restaurants occupy spaces of 500 sq.ft. to 650 sq.ft. in regional malls, outlet and power
centers. Preferred anchors include a minimum
of three major department stores. Plans call
for 30 openings in the coming 18 months. Expansion
will take place in NY, NJ, GA, FL, NC, SC and MD. Leases
running 10 to 12 years are typical. The
company is franchising. For more information, contact David Wu, Magic Wok
International, 14492 Dale Mabry #201, Tampa, FL 33618; 813-265-3955, Fax 265-3428. Vie De
France Yamazaki, Inc. trades as Vie De France Bakery & Cafe at 44 locations in MD, VA,
NJ, CT, CA, IL, WV, FL and Washington, D.C. The
restaurants, serving bakery goods, soups, salads and sandwiches, occupy spaces of 250
sq.ft. to 2,500 sq.ft. in strip centers. Preferred
anchors include Nordstrom's and supermarkets. Plans
call for the opening of four units in the coming 18 months.
Expansion will take place in VA, MD and Washington, D.C. Preferred demographics include a population of
150,000 within three miles earning $60,000 as the average income. Leases running 10 to 15 years are typical. For more information, contact Skip Couser, Vie De
France Yamazaki, Inc., 8201 Greensboro Drive/ Suite 1200, McLean, VA 22102-3897;
703-442-9205, Ext. 492, Fax 847-0969. Henry
Modell & Co., Inc. trades as Modell's Sporting Goods at 50 locations in NY, NJ and PA. The sporting goods stores occupy spaces of 12,000
sq.ft. to 20,000 sq.ft. in regional malls, power and strip centers. Preferred anchors include Caldor, Marshalls and
Toys 'R Us. Plans call for 10 openings in the
coming 18 months. Expansion will take place
throughout the Northeast. Leases running 25
years are typical. For more information, contact Aaron Fleishaker,
Henry Modell & Co., Inc., 34-24 Vernon Boulevard, Long Island City, NY 11106-5124;
718-956-8600, Fax 956-9635. The
Kotliar Corp. trades as Kotliar's Card & Gift Shops at 22 locations in NY, NJ and MA. The card & gift stores occupy spaces of 3,200
sq.ft. to 3,500 sq.ft. in regional malls. Preferred
anchors include Lord & Taylor. Plans call
for six openings in the coming 18 months. Expansion
will take place in PA, CT and RI. Preferred
demographics include a population of 300,000 within 10 miles earning $35,000 as the
average income. Leases running 10 years are
typical. For more information, contact Al Kotliar, The
Kotliar Corp., 303 Smith Haven Mall, Lake Grove, NY 11755-2103; 516-724-1500, Fax
724-1629. Tiger
Schulmann's Karate Centers operates 23 locations in NY, NJ, PA and CT. The centers occupy spaces of 3,000 sq.ft. in
suburban power centers and spaces of 6,000 sq.ft. to 10,000 sq.ft. for its urban super
school locations. Plans call for 15 openings
in the coming 18 months. Expansion will take
place in the Northeast and Southeast. For more information, contact Jack Burke, Tiger
Schulmann's Karate Centers, c/o JW Burke & Co., 40 Eisenhower Drive, Paramus, NJ
07652; 201-368-0707, Fax 368-3915. Royal
Auto Supply operates 14 locations in PA. The
automotive supply stores occupy spaces of 4,000 sq.ft. to 8,000 sq.ft. in strip centers
and freestanding facilities. Plans call for
two openings in the coming 18 months. Expansion
will take place in PA, NJ or DE. Preferred
demographics include a population of 100,000 within three miles earning $35,000 as the
average income. Leases running five to 30
years are typical. For more information, contact Jon Slenn, Royal
Auto Supply, 300 Enterprise Lane, Colmar, PA
18915; 215-822-1359, Fax 822-1768. Bassett
Management Company, Inc. trades as Bassett's Original Turkey at 10 locations in PA, NJ, MD
and FL. The restaurants, selling fresh
roasted turkey sandwiches and dinners, occupy spaces of 400 sq.ft. to 2,500 sq.ft. in
downtown store fronts, regional malls, power and strip centers. Plans call for 10 openings in the coming 18
months. Expansion will take place in PA, NJ
and NY. Preferred demographics include a
population of 30,000 within one mile earning an average of $40,000. Leases running seven to 10 years are typical. The company is franchising. For more information, contact Roger Bassett,
Bassett Management Company, Inc., 212 Haddon Avenue, Westmont, NJ 08108; 609-869-9000, Fax
869-9030. Bugaboo
Creek Steak House operates nine locations in the Northeast and Mid-Atlantic regions. The restaurants occupy spaces of 7,000 sq.ft. to
10,000 sq.ft. in strip centers, end caps and freestanding facilities. Plans call for 10 openings in the coming 18
months. Expansion will take place in the
Mid-Atlantic region. For more information, contact Jeff Ryan, Bugaboo
Creek Steak House, PO Box 276, Seekonk, MA 02771; 401-433-5500, Ext. 115, Fax 433-5986. Realty
Partners, Northeast trades as Bertucci at 73 locations in MA, NH, NY, CT, NJ, PA, MD, IL,
FL, VA and Washington, D.C. The restaurants
occupy spaces of 6,000 sq.ft. to 7,000 sq.ft. in power, specialty and strip centers as
well as freestanding facilities. Preferred
anchors include T.J. Maxx and Lord & Taylor. Plans
call for 18 openings in the coming 18 months. Expansion
will take place in the existing markets. Preferred
demographics include a population of 50,000 within three miles earning $50,000 as the
average income. Leases running 15 years are
typical. For more information, contact Michael DiGuiseppe,
Realty Partners, Northeast, PO Box 5481, Beverly Farms, MA 01915-0519; 508-921-8081. Yankee
Candle Co., Inc. operates 27 locations in New England, NY, NJ and MD. The stores, selling scented candles, occupy spaces
of 1,200 sq.ft. to 1,500 sq.ft. in downtown store fronts, regional malls, specialty
centers and freestanding facilities. Plans
call for 18 to 24 openings in the coming 18 months. Expansion
will take place in NY, NJ, PA, MD and VA. Preferred
demographics include a population of 500,000 within 10 miles earning $50,000 as the
average income. Leases running eight years
are typical. For more information, contact Anthony P. Villani,
Yankee Candle Co., Inc., Route 5, South Deerfield, MA 01373; 413-665-0004, Fax 665-2491. A.C.&
T. Co., Inc. trades as A.C.T. Foodmart at nine locations in MD, PA and WV. The convenience stores occupy freestanding
facilities of 1,500 sq.ft. on a land area of 43,560 sq.ft.
Preferred anchors include supermarkets. Plans
call for one opening in the coming 18 months. Expansion
will take place the existing markets. Leases
running 25 to 50 years are typical. For more information, contact Mark Fulton, A.C.
& T. Co., Inc., PO Box 4217, Hagerstown, MD 21741-4217; 301-582-2700, Fax 582-2719. Portico
Bed & Bath operates four locations in NY, NJ and CT.
The stores, selling bed and bath accessories, occupy spaces of 3,000 sq.ft. to
4,000 sq.ft. in downtown store fronts, regional malls and specialty centers. Preferred anchors include Ann Taylor, Williams
Sonoma, upscale fashion stores and home decor stores.
Plans call for six openings in the coming 18 months.
Expansion will take place in NY, MA, CT, NJ, VA, MD and PA. Preferred demographics include a population of
100,000 within two miles earning at least $65,000 as the average income. Leases running 10 years are typical. For more information, contact Steven B. Greenberg,
Portico Bed & Bath, c/o Greenberg Group, Inc., 1200 W. Broadway, Hewlett, NY 11552;
516-295-0406, Fax 374-0999. Domain
operates 19 locations in NY, NJ, CT, MA, VA and MD.
The home furnishings stores occupy spaces of 4,000 sq.ft. to 6,500 sq.ft. in
downtown store fronts, specialty centers and freestanding facilities. Preferred anchors include Nordstroms, Williams
Sonoma, Saks, Neiman-Marcus and Ethan Allen. Plans
call for 12 openings in the coming 18 months. Expansion
will take place in PA, NJ, NY and CT. Preferred
demographics include a population of 100,000 within five miles earning $75,000 as the
average income. Leases running 10 years are
typical. For more information, contact Josh Podell, Domain,
c/o Greenberg Group, Inc., 1200 W. Broadway, Hewlett, NY 11557; 516-295-0406, Fax
374-0999. Larmon
Photo, Inc. trades as Larmon Photo at 15 locations in PA and NJ. The camera stores occupy spaces of 800 sq.ft. to
1,600 sq.ft. in regional malls and strip centers. Preferred
anchors include supermarkets and large drug store chains.
Plans call for as many as two openings in the coming 18 months. Expansion will take place in the existing
markets. Preferred demographics include a
population of 100,000 within 10 miles earning $45,000 as the average income. Leases running three years are typical. For more information, contact Richard Mcafee,
Larmon Photo, Inc., 966 Old York Road, Abington, PA 19001; 215-887-1248, Fax 886-8523. TOL
Franchise Group trades as Top of The Line Fragrances at eight locations in PA, TN, FL and
NJ. The cosmetics and fragrances stores
occupy spaces of 700 sq.ft. to 1,200 sq.ft. in outlet centers. Preferred anchors include women's fashion stores. Plans call for five openings in the coming 18
months. Expansion will take place in NY, NJ
and PA. Leases running 10 years are typical. The company is franchising. For more information, contact Steven Ciaverelli,
TOL Franchise Group, 515 Bath Avenue, Long Branch, NJ 07740; 908-229-0014, Fax 222-1762. Reading
Dress trades as Lancaster Dress at 12 locations in PA and NJ. The women's apparel stores occupy spaces of 5,000
sq.ft. in power centers. Preferred anchors
include T.J. Maxx. Plans call for one opening
in the coming 18 months. Expansion will take
place in NJ or DE. Preferred demographics
include a population of 100,000 within five miles earning $40,000 as the average income. Leases running 10 years are typical. The company is franchising. For more information, contact Bruce Herring,
Reading Dress, Route 130 South, Cinnaminson, NJ 08077; 609-786-8282, Fax 786-3411. Community
Distributors, Inc. trades as Drug Fair and Cost Cutters at 39 locations in NJ. The drug and general merchandise stores occupy
spaces of 25,000 sq.ft. in strip centers and freestanding facilities. Preferred anchors include T.J. Maxx and
supermarkets. Plans call for six openings in
the coming 18 months. Expansion will take
place in NJ. Preferred demographics include a
population of 35,000 within three miles earning $50,000 as the average income. Leases running 15 years are typical. For more information, contact Frank Marfino,
Community Distributors, Inc., 251 Industrial Parkway, Somerville, NJ 08876; 908-722-8700,
Fax 722-2902. Mergers
& Acquisitions Carmike
Cinemas (706-576-3400) has signed an agreement to purchase 145 screens in GA and FL from
Cineplex Odeon in an all-cash transaction. The
deal is expected to be completed this month. Of
the 145 screens to be acquired, 81 are located in GA, of which 52 are located near
Atlanta. The remaining 64 screens are located
in Jacksonville, Ocala, Orlando, Tampa, Brandon and Clearwater, FL. Carmike Cinemas currently operates 2,046 screens
in 31 states. Revco
Drug Stores, Inc. (216-425-9811) recently purchased Parkland Pharmacy in Cayce, SC. Sunglass
Hut (305-461-6100) plans to acquire the 350-store Sunsations sunglass chain for
approximately four million shares of common stock valued at nearly $120 million. The deal is expected to close by the end of this
month. Sunglass Hut currently operates 977
stores throughout North America, Europe, the Caribbean and Mexico. Harps
Food Stores (501-751-7601) plans to acquire 10 Food-4-Less stores from Wal*Mart Stores
division Phillips Co. Harps plans to convert
the stores to its Price Cutter format. Harps
currently operates 28 stores in AR and OK under the tradenames Harps, Price Cutter and
Cash Mart. Wickes
Lumber Company (708-367-3400) plans to acquire the two-unit chain of Lappo Lumber Company
in an all cash transaction. The deal is
expected to be completed next month. Lappo
Lumber Company operates two building material supply stores in Fruitport and South Haven,
MI. Wickes Lumber Company currently operates
126 building centers and 11 manufacturing facilities in 24 Midwestern, Northeastern and
Southern states. The
Sports Authority (305-735-1701) has entered into an agreement to acquire 16 stores from
SportsTown, Inc. SportsTown has been
operating under Chapter 11 since February and the sale of its inventory and 16 of its 23
store leases was requested by The Official Committee of Unsecured Creditors. Proceeds from the sale will be distributed to
SportsTown's creditors. Ace
Cash Express (214-550-5000) plans to acquire 22 stores from Quick Cash, Inc. The stores are located in AZ. Conversions
& Expansions Horizon
Group, Inc. has renamed its outlet center in Holland, MI "Horizon Outlet
Center-Holland." The center will also
undergo renovations including the addition of a 10,000 sq.ft. family restaurant, small
shops and increased parking. Currently the
191,700 sq.ft. project has 50 tenants including Spiegel, Pfaltzgraff, Carter's
Childrenswear, Jockey, Champion/Hanes, Bass Clothing Outlet, Van Heusen, Eddie Bauer and
Bugle Boy. Work at the center is expected to
be completed during August. The company
recently completed renovation work at Horizon Outlet Center-Edinburgh in Edinburg, IN. Nine stores were recently added, including Ann
Taylor, B.U.M. Equipment, Jockey, Paul Harris Direct and Sunglass Source. The company announced the completion of the
renovation at Horizon Outlet Center-Fremont in Fremont, IN.
Nine stores were added at the project, including Ann Taylor, Reebok, Mikasa,
Maternity Works, J.Crew, Tommy Hilfiger, Nautica, Sunsations and London Fog. Additionally, the company announced that
construction has begun on the fifth phase of expansion at the Outlets at Gilroy in Gilroy,
CA. Construction of the 71,000 sq.ft.
addition is expected to be completed during the fall.
The company operates a total of 14 outlet centers in eight states. For more information, contact Marianne Napoli or
Gary Geisler of Horizon Group, Inc. at (616-728-5170). Southwest
Properties Venture, owner of Southwest Plaza Regional Shopping Center in Littleton, CO, is
planning to spend $3 million on renovations to the site.
In addition, four stores, Abercrombie & Fitch, Structure, Limited Too and Bath
& Body Works, all of which are divisions of The Limited chain, will be joining the
tenant mix at the project. Last year, the
company spent $1.5 million to remodel the food court and this year upgrades to the
lighting, escalators and aesthetics of the center will be completed. Additionally, The Limited plans to double the size
of its Express store and increase the size of its Lane Bryant store by 50%. The Limited company also has a Victoria's Secret
store at the site. Also opening stores at the
center will be County Seat, Mr. Rags and Nail Focus.
The openings and completion of the renovations are expected during Fall. For more information, contact Shell Cook of
Perlmutter & Co., leasing and management company of the project, at (303-595-9919). Homart
Community Centers plans to open phase II of the redeveloped Shoppers World in Natick, MA
during the fall. Anchors of phase II, which
totals 350,000 sq.ft., include Sports Authority, Bob's Store, Marshalls, Linens 'N Things,
TJ Maxx, Barnes & Noble, Today's Man and three restaurants. Phase I of 245,000 sq.ft., which opened last fall,
is anchored by Toys 'R Us and Kids 'R Us. For more information, contact Homart Community
Centers at (312-551-5100). McNeil
Real Estate Management, Inc. recently completed a $13.5 million renovation and
re-anchoring of Northway Mall in Pittsburgh, PA. Anchors
at the 400,000 sq.ft. "value retail center" include Borders Books and Music,
Dick's Clothing & Sporting Goods, Marshalls and Reading China & More. Also at the site are 35 additional stores, a food
court and Super Saver Cinemas. For more information, contact McNeil Real Estate
Management at (214-448-5800). Claverton
Corporation, Inc., owner of Fairlane Village in Pottsville, PA, has begun a multi-million
dollar renovation of the 330,000 sq.ft. project. Included
in the plan is the renovation and enlargement of the Boscov's department store. Value City and more than 60 retail stores
also tenant the project. For more information, contact Harry J. Reed, Vice
President of Development for Intershop Real Estate Services, the project's property
management firm, at (717-429-1563). Crown
American Realty Trust, owner and operator of Viewmont Mall in Scranton, PA, recently
opened its 140,000 sq.ft. expansion at the site. Twenty-five
retailers have opened in the new space and another 10 are expected to open during August. The project is also getting a new anchor during
August when Kauffman's opens in the former Hess' Department Store location. Occupying 32,000 sq.ft. of the new space is the
Limited Superstore, which features five stores from The Limited, Inc. chain. They include The Limited, Victoria's Secret,
Compagnie International Express, Structure and Bath and Body Works. Other stores opening during August include Lady
Footlocker, Lenscrafter, Radio Shack and Wendy's. During
September, Fashion Bug and Lane Bryant will open in expanded locations. The $27 million renovation began in October 1993. For more information, contact Christine Menna of
Crown America at (814-536-9520). Urban
Retail Properties Co., management company of Military Circle in South Hamptons Roads, VA,
has announced that a $10 million renovation of the mall will begin this summer. Plans include a new 600-seat food court. The company is also negotiating with new tenants
for the project. The work is expected to be
completed by summer 1996. For more information, contact Bob Oliver of Urban
Retail Properties Co. at (708-573-0700). Jim
Wilson & Associates, manager of The Riverchase Galleria in Birmingham, AL, is building
a 255,000 sq.ft., $25 million addition to the 1.5 million sq.ft. project. Included in the expansion will be a 166,000 sq.ft.
Sears department store and automotive center, in addition to 12 retail shops and
restaurants. Completion of the project is
expected during Spring 1996. For more information, contact Jim Wilson &
Associates at (205-260-2500). Intershop
Real Estate Services, manager of Greenville Mall in Greenville, SC, announces that
renovations and construction at the project are underway with an August completion date
expected. Existing anchor, Montgomery Ward,
relocated to a new space within the mall and Parisian department store opened last month. Another existing anchor, J.B. White, is renovating
and expanding its store to 185,000 sq.ft. with July slated as the completion date. For more information, contact Robert Katzen of
Intershop Real Estate Services at (214-987-4800), Fax (987-3662). Tools
for Your Computer Urban
Decisions Systems (UDS) and Restaurant Consulting Group (RCG) signed an agreement to
incorporate RCG's restaurant information database into UDS' database of demographic and
business information. RCG provides
restaurant information on over 385,000 individual restaurants. The information includes names, addresses, phone
numbers, locations, types and categories. UDS
plans to use this information to enhance current products and create new ones by adding
this information to its demographic and business information. Also, Urban Decision Systems (800-633-9568/west
and 800-364-4837/east) has introduced a new software product called MarketReporter which
will allow businesses to generate their own demographic and business information reports
in-house. The software comes ready-to-use
with a base set of 875 demographic variables and a wide variety of reports can be
generated including demographic trends and updates, area, population, socio-economic and
housing profiles and a benchmark summary. Additional
data sets, including shopping centers, merchandise potential, business/daytime census and
traffic volumes, can be acquired. The price
of the program is $7,495. The
publishers of the Directory of Major Malls have released the newest computer tool designed
to help dealmakers quickly identify the hottest growth areas throughout the U.S. Called Directory on Computer (DOC), the program
offers the information found in the 1200-page directory plus lets the user access it
through a variety of ways. The latest edition
also gives users two new options, longitude and latitude designations, which allows users
to implement third-party mapping software to create comprehensive reports. When these features are combined four key
variables, including population, number of households, median age and average household
income, can be used to produce three rings around a particular site. In addition to the new features offered by the
DOC, the standard information found in the Director of Major Malls is also contained. This includes information such as location,
design, expansion plans, demographics, tenants, top contacts and leasing information on
U.S. and Canadian shopping centers and malls having GLAs of 250,000 sq.ft. and up. For more information, contact Tama Shor at
(800-898-6255), Fax (914-426-0802). Buyers
& Sellers of Commercial Real Estate The
Schreiber Company is in the market to purchase neighborhood and community shopping centers
anchored by a supermarket in areas east of the Mississippi River. For details, contact Marvin Schreiber at
(412-963-1000), Fax (963-0520). H.
Stephen Kirschner, Inc. has the listing to sell two enclosed malls, a community shopping
center and a power center. The first enclosed
mall is a 400,000 sq.ft. project located in Western PA.
The site generates sales of $150 psf. An
outparcel is available for development. The
second enclosed mall is a one million sq.ft. project in OH.
The site can be expanded. The third
property offered for sale is a Central PA shopping center anchored by Kmart and a
supermarket. Both anchors have long term, net
leases. The fourth property listed for sale
is a 400,000 sq.ft. power center in Houston, TX. The
site is anchored, 95% occupied, has below market rents and expansion capability. The site is also located across from a mall. For details, contact H. Stephen Kirschner at
(516-462-2200), Fax (499-3322). Mid-Atlantic
Funding Corp. is in the market to purchase income producing properties nationwide. Prices from $2 million and up will be considered. For details, contact Ben Goldman at
(301-549-1478), Fax (549-1927). Fraser
Enterprises has the listings for several net leased properties available for 1031
exchanges. Exchanges valued from $1 million
and up will be considered. The company also
represents a pension fund looking to acquire several net leased properties having at least
B+ credit and at least 10 years remaining on the lease.
Properties nationwide will be considered. For details, contact Bob Fraser at (803-785-3010),
Fax (785-7130). Carolina
Holdings, Inc. is selling the recently completed 63,350 sq.ft. Alamance Square shopping
center in Greensboro, NC. The project is
anchored by Bi-Lo, Revco and Fashion Centers. The
site is located on a road that generates a daily traffic count of 36,800 cars. The asking price is $6 million. For details, contact Robert Benedict at
(803-458-8088), Fax (458-9549). API
Development has the listing to selling a 1+ acre restaurant pad located in front of a
27-acre strip center in Gadsden, AL. The
site is located on a road that generates a daily traffic count of 67,295 cars. The asking price is $295,000. For details, contact Phil Moncrief at
(205-543-7530), Fax (547-0730). Cameron
Real Estate Services, Inc. has the listing to sell Color Tile Center in South Fort Myers,
FL. The project is 100% leased to Color Tile
and two other tenants. All have NNN leases. The asking price is $892,000. The company has the listing to sell San Carlos
Shopping Center in South Fort Myers, FL. The
75,760 sq.ft. project is anchored by Winn Dixie and Eckerd Drugs and is 98% leased. The site fronts U.S. 41. The asking price is $4.7 million. The company also has the listing to sell Lakewood
Plaza in Naples, FL. The 24,724 sq.ft.
project is 100% leased and tenants have NNN leases. The
site fronts U.S. 41. The asking price is
$1.985 million. For details, contact Pamela K. Van Vleck at
(813-277-1111), Fax (277-0536). Julien
J. Studley, Inc. represented Newsroom West Hollywood, Inc. in its purchase of a 5,050
sq.ft. space in West Hollywood, CA for a second Newsroom restaurant. The purchase price was $300,000. For details, contact Don Ferris at (415-929-0205). Price
Associates, Inc. has the listing to sell an 1,800 sq.ft. freestanding Skipper's restaurant
with a drive thru in Chicago, IL. The asking
price is $250,000. For details, contact Jim or Mel Ehrlich at
(312-641-1800), Fax (332-5820). Professional
Consulting Services has the listing to sell 3.7 acres of land zoned commercial on Elida
Road, just west of the Lima Mall in Lima, OH. The
site has frontage on two roads in a high traffic area.
The asking price is $130,000 per acre. For details, contact Ted Yewey at (419-738-4643),
Fax (222-9799). Retailers
Keeping Up with The Times Wal*Mart
(501-273-4000) is testing a catalog in the Springfield, MO area. If the test proves successful, the company plans
to distribute the catalog across the country. The
catalog lists most of the stores' inventory and customers can call an 800 number to place
their order. A delivery service then delivers
the order to the customers' homes. Kroger
(513-762-4214) and BellSouth Cellular Corp. (404-249-0476) are offering shoppers at 66
Kroger stores the convenience of purchasing a cellular phone and service when shopping for
groceries. Available at Kroger stores in IN,
TN, AL, GA and KY are kiosks staffed by BellSouth Cellular personnel who take a shopper's
phone order and prepare the phone for pick up by the time the consumer is finished
shopping. Using a software program developed
by Bellsouth Cellular, the company is able to process a customer's order and have an
activated phone ready for use by the customer in 20 minutes. The kiosks are planned to be installed at
additional Kroger stores. Primeline
Communications Corp. (704-648-1298) recently released technology that allows any computer
user to operate shopping malls on the Internet or on a BBS.
The product, called Online Business Works/Shopping Mall, allows anyone the ability
to market products online by establishing a turnkey electronic mall. The price is $795.
A user-friendly point and click graphical interface helps shoppers get around the
mall and a photograph of the item can be viewed before a purchase is made. The program has an off-line database manager which
does not tie up phone lines. Over 250 store
types are included in the software package which can operate on any 386 or higher
stand-alone IBM-compatible PC. Primeline's
software uses the RIPscrip 2.0 online multimedia technology developed by Telegrafix
Communications which allows transmission over telephone lines and the Internet. Primeline plans to release other Online Business
Works modules, including Online Real Estate, Online Auto Sales, Online Auction House and
Online Matchmakers. Borders
Books and Music (313-995-7262) is testing multimedia sections at eight of its stores in
CA, IL, VA, MD and MI. The sections carry
more then 2,000 software titles on CD-ROM and floppy disks and offer a computer where
customers can test approximately 100 programs. The
company is planning to expand the test sites by 20 this year. Spiegel
(708-769-2569) plans to offer its complete catalog on CD-ROM next year. Comcast
Metrophone (215-784-9060) and Mid-Atlantic Restaurant Systems, L.P., a Boston Chicken
franchisee, have teamed up to allow Comcast's mobile phone subscribers the option of
ordering food from Boston Chicken restaurants in Southeastern PA. The call is free and is transferred to the closest
restaurant where the customer can place his/her order.
A special pick-up line at the restaurants has been established so callers do not
have to wait in the regular line to pick up their order. CompuServe
(614-538-4553) plans to expand its Electronic Mall to the Internet's World Wide Web during
fall. The company started the Electronic
Mall, which is a collection of online stores, numbering more than 170, where customers can
purchase merchandise, 11 years ago. Currently,
more than three million members have access to the mall.
However, that number will increase to well over 20 million when it becomes
available on the Internet. Kentucky
Fried Chicken (502-456-8300) plans to begin selling Taco Bell food at 50 of its 5,100
restaurants in five cities nationwide. If the
test proves successful, the concept may spread to other KFC restaurants. Both restaurants are owned by PepsiCo. America
Online, Inc. (703-918-3452) and Home Shopping Network, Inc. have teamed up to offer
consumers a new shopping outlet on AOL called Global Plaza.
Global Plaza will offer consumers value-priced brand name merchandise. Later this year, AOL and HSN Interactive's
Masterworks will become available and will offer books, artwork, music, jewelry and gifts
for sale. The
first The Athlete's Foot Superstore franchise recently opened inside a SportsTown
(404-246-5300) store in Marietta, GA. The
6,000 sq.ft. Athlete's Foot expands SportsTown's footwear department by 70% and offers
18,000 pairs of shoes from major manufacturers. Plans
are to open Athlete's Foot Superstore franchises in all 23 SportsTown locations in GA, NC,
SC, VA, TX and OK by the end of this year. Space
Place California Culver
City- A 3,540 sq.ft. former Fitting Image
store is available for lease at Fox Hills Mall. The
lease expires June 30, 1999. For details, contact Denni Strozewski of The
Fitting Image at (800-487-4882), Fax (617-422-6212). Florida Tampa- West Village Commons is anchored by Kash N Karry
and Eckerd Drugs. The project has spaces from
750 sq.ft. to 3,050 sq.ft. available for lease. For details, contact Paul Ajdaharian of Brandywine
Real Estate Management Services Corp. at (813-726-6880), Fax (725-4391). Massachusetts Tewksbury- Marshall's Plaza is anchored by Osco Drug. The project has a 26,400 sq.ft. former Marshalls
store available for lease beginning this fall. The
site fronts Main Street. For details, contact Amanda Andrade of Marshalls
at (508-474-7341). Michigan Westland- A 5,500 sq.ft. space is available for lease in a
center anchored by OfficeMax, Best Buy and Shoe Carnival.
The site fronts Central City Parkway, off Warren Road. For details, contact Glenn Hirsch of Source Real
Estate & Investment Company at (810-799-3030), Fax (799-3035). New
Jersey Chester- The 64,588 sq.ft. Chester Shopping Center has
spaces of 1,900 sq.ft., 2,560 sq.ft., 6,000 sq.ft. and 10,400 sq.ft. (or 16,400 sq.ft.)
available for lease. The site fronts Route 24
and Route 206 which generate a daily traffic count of 35,000 cars. Demographics include a five-mile population of
30,600 earning $70,696 as the average income. In
Ledgewood- The 41,000 sq.ft. Morris Canal
Plaza has spaces of 1,800 sq.ft. and 3,500 sq.ft. available for lease. The site fronts Route 46. Demographics include a five-mile population of
100,000 earning $51,542 as the average income. For details, contact Audrey Grant of Complete
Property Management, Inc. at (908-879-5106), Fax (879-8513). North
Carolina Raleigh- Walnut Creek Shopping Center is anchored by Food
Lion and Revco. The 56,000 sq.ft. project has
10 acres expansion land and a pad site available for lease.
Demographics include a three-mile population of 50,000 earning $31,000 as the
average household income and a five-mile population of 114,000 earning $38,000 as the
average household income. For details, contact David Rosen of Rosen
Associates Management Corp. at (516-822-5350), Fax (433-3821). Pennsylvania Morrisville- The 96,000 sq.ft. Morrisville Shopping Center has
spaces between 3,400 sq.ft. and 52,000 sq.ft. available for lease. Demographics include a three-mile population of
140,000 earning $42,360 as the average family income.
In Newtown- The 135,000 sq.ft. Village
of Newtown South has a 1,200 sq.ft. build-to-suit space and a 50,000 sq.ft. space
available for lease. Demographics include a
five-mile population of 100,000 earning $74,000 as the average family income. For details, contact Robert Y. Shasha of The
Cotswold Group at (914-654-0035), Fax (654-0188). Tennessee Nashville- Priest Lake Plaza Shopping Center is anchored by
Kroger and Superx. The 126,700 sq.ft. project
has an 18,000 sq.ft. space available for lease. The
site fronts Hurfreesboro and Bell Roads. Demographics
include a three-mile population of 46,000 earning $46,000 as the average household income
and a five-mile population of 87,000 earning $44,000 as the average household income. For details, contact David Rosen of Rosen
Associates Management Corp. at (516-822-5350), Fax (433-3821). |