Issue 30 for the week of August 25, 1995

The Dealmakers Issue Number 30 for the week of August 25, 1995.

My Way by Ted Kraus

Just Visit The Friggin' Site Already

Five or six years ago, when TKO helped pioneer the concept of "downsizing" (we've always been leaders) we decided to concentrate on the sale of shopping centers and big box leasing (less people means concentrate on what makes the most money). When it comes to sales, we try to put together (if the seller provides the information) a decent sales package and since, in my former lives, I've been a developer and retailer, I can usually discuss the center's upside somewhat intelligently, highlighting the good, the bad and the ugly. One of my biggest frustrations is that most potential buyers have a tendency to over analyze. Yes, when you're spending millions you should be careful, but most potential buyers (I keep saying "potential" because they spend most of their time being a "potential" buyer and very little being an "actual" buyer) get the sales package and can spend weeks evaluating the numbers, but don't bother to ever see the project. We recently sent a sales package to someone, who for two weeks, was constantly calling us for backup information (which was fine) and then wanted a conference call with the seller (also fine), which I set up. After spending an hour asking the same questions I had previously answered, he starts to debate the asking price. Since the seller is the bashful type and I'm not, I asked if 1) he had seen the property yet (I knew the answer), and 2) was he prepared to make a firm offer (and again I knew the answer). He answered no to both. I asked how he could start to negotiate the price or express real interest in the centers until he visits the sites. He continued to debate the matter for another half an hour and the seller finally spoke up and said he was "willing" to discuss the price after he visited the sites, not before. We ended the conference call with a very unhappy "potential" buyer who did not like me.

One of the problems facing our industry, and REITs in particular, is that "financial types" head-up the acquisition department, not the "developer/operations" type. They make all their decisions based on "numbers," not reality. Someone, I can't remember who, was making fun of people who make "gut" decisions and statements. They contended "research" was the only way to make predicitions. Didn't the banks "research" loans in the '80's? Doesn't the government "research" or at least start a committee to research everything they do? Great research, I'll take the "gut" assessment of an experienced individual anyday. Talking about banks, I had lunch with two bankers recently (they treated, I didn't need a loan). They were complaining that banking was getting as bad as it was in the '80s when my dog was borrowing at one point below prime. Too much money pursuing too few borrowers. Rates were down, they stopped requiring personal guarantees and the projects they were lending on left a lot to be desired. But they (loan officers) were under pressure to lend and a "man's gotta do what a man's gotta do." Hopefully, we're not going to be expanding the RTC again.

Talking of people who like to waste time, I recently met with a broker and seller of a vacant industrial building that the owner wanted to convert to retail. After driving the market and discussing the situation with the owner, I said the most logical thing to do was demolish the building and build from scratch. The owner agreed, then wanted to know if I wanted a tour of the building; it would only take a half an hour. I asked, "Why tour it if it's going to be demolished?" He said, "Well, if you're involved with the project, don't you want to see the building?" He couldn't understand me when I said, "No, the building has nothing to do with the center." I think I hurt his feelings, and he still didn't understand why I didn't want a tour.

On a different note, I mentioned a few weeks ago that Ann & I recently went on a vacation to California and occasionally played tourist. We probably visited four or five outlet centers while there. Recently, Ann, Josh and I have been driving the northeast and have "visited" another four or five outlet projects. Talk about boring. The look is the same, the tenant mix is identical and the value to the consumer isn't there. I'm not a big regional mall person since many tend to also look alike and have an identical tenant mix, but in comparison to the outlet industry, regional mall developers are creative and the variety of retailers is flourishing. I don't mean to harp on outlets, but they better get their act together shortly or they're in deep trouble.

Now let's discuss leasing. Man, it's getting bad out there. First, a friend of mine (yes, believe it or not I have some, not many, but as Mark Twain said, "If you can count the friends of your lifetime on one hand, consider yourself lucky") has, in one of his centers, an anchor lease that was up for renewal (35 years goes fast when you're having fun). About six months before the expiration date, an outside broker calls my friend, explains they are the exclusive broker for the retailer's renewals and that his fee is $3 per sq. ft. It took my friend five years to accept that big box users have an exclusive broker you had to pay off if you wanted the deal, but this one really blew his mind. After confirming with the tenant that the broker really did have an exclusive, a new rent number was thrown out. The broker wanted to pay what amounted to a 30% increase on a 35 year old rent and have the landlord do a lot of work. While this isn't a great center, it is decent, so my friend stayed firm. The $3 semi gross rent could easily be replaced with a $7 to $10 net deal, and if a brokerage fee was to be paid, it wouldn't exceed what this broker wanted. Not wanting to lose the tenant if he didn't have to, he called the retailer's head of real estate directly and was told, "deal with our exclusive broker, not me." The deal died and the tenant is moving out next week. Stupidity personified. Retailers are dumber than I ever thought if they don't realize that most (but not all) of their "exclusive brokers" cost'em money and, more importantly, good locations.

People say ours is a cut throat industry, and it is, but I have seen the enemy and it is us. When I started in this industry 25 years ago, it was a simpler world. When you'd made a deal with a tenant, it was done. Sometimes they took possession and were open before the lease was signed. Now I'm not saying that's how it still should be (but that wouldn't be the biggest sin in the world either), but today a company's "word" (and a company is only people) means nothing. I've been involved in several deals lately where a big box user agreed to the terms, a lease was sent and negotiated, and at the last minute, they called to say they changed their mind. If this happened once in a blue moon I could understand, but one company did it to me three times (fool me once, you're a fool; fool me twice, I'm a fool; what does three times say about me?). Another company negotiated the entire lease, we were a day away from signing and then they called and said, "Oh, we forgot to tell you, we don't want to open this year, we're looking at 1997." Scum. Oh well, I'm 50, so only 15 more years and I'm out of here.

P.S. I guess this isn't the best editorial to "speak" to exclusive brokers in, but what the hell, we're friends. We're adding to our Leasing Agents Book of Leads Directory an "Exclusive Broker Section," so if you're one, call Ann at 609-587-6200 or fax a request for our free listing form to 609-587-3511. The added publicity couldn't hurt.

Supermarkets Seeking Sites

The Original Irvine Ranch trades as Irvine Ranch Market at one location in CA. The natural food market is looking for spaces between 10,000 sq.ft. and 16,000 sq.ft. in downtown store fronts, freestanding facilities and strip centers. Plans call for five openings in the coming 18 months. Expansion will take place in Seattle, WA and Los Angeles/Orange County, CA. Preferred demographics include a population of 250,000 within three miles earning $65,000 as the average income. Leases running 30 years are typical.

For more information, contact Denise Stiles, The Original Irvine Market, 2651 Irvine Avenue, Costa Mesa, CA 92627; 714-969-8643, Fax 631-0329.

Ralphs Supermarkets operates 175 locations throughout CA. The stores occupy spaces of 45,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for 15 openings in the coming 18 months. Expansion will take place in the existing market. Leases running 20 years are typical.

For more information, contact Sandra Yavitz, Ralphs Supermarkets, 1100 W. Artesia Boulevard, Compton, CA 90220; 310-884-9000, Fax 884-2616.

Arden Group, Inc. does business as Gelson's Markets at 12 locations in CA. The stores occupy spaces of 35,000 sq.ft. to 40,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing market.

For more information, contact Patricia Patance, Arden Group, Inc., 2020 South Central Avenue, Compton, CA 90220; 310-638-2842, Fax 631-0950.

Ball's Food Stores trade as Price Chopper Foods and Hen House Markets at 21 locations in KS and MO. The stores occupy spaces of 45,000 sq.ft. to 70,000 sq.ft. in freestanding facilities and power centers. Preferred anchors include Sam's Club, Target and Wal*Mart. Plans call for two openings in the coming 18 months. Expansion will take place in the existing markets. Also, the company will explore IA and NE for growth opportunities.

For more information, contact William White, Ball's Food Stores, 5300 Speaker Road, Kansas City, KS 66106; 913-321-4223, Fax 321-3237.

Consumers Markets operates 24 locations in AR, KS and MO. The stores occupy spaces of at least 50,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Dave Miller, Consumers Markets, 639 West Chestnut Expressway, Springfield, MO 65802; 417-866-4305, Fax 866-4305, Ext. 213.

H.E. Butt Grocery Co. does business as HEB at 228 locations in TX. The stores occupy spaces of 40,000 sq.ft. to 80,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing market.

For more information, contact Eric Mode, H.E. Butt Grocery Co., 646 South Main Avenue, San Antonio, TX 78204; 210-246-8000, Fax 246-8530.

Alfalfa's Market operates 11 locations in CO, NM, WA and Canada. The natural foods stores occupy spaces of 20,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Rodney Love, Alfalfa's Market, 1645 Broadway, Boulder, CO 80302; 303-440-5220, Fax 440-5280.

Buyers & Sellers of Commercial Properties

The Nova Group has the listing to sell 7.2 acres of land in New Braunfels, TX. The site is located adjacent to Wal*Mart, Target and HEB Grocery. The asking price is $1.1 million. The company also has the listing to sell 2.83 acres of land at River Oaks Shopping Center in Georgetown, TX. The site is located between Wal*Mart and HEB Grocery. The asking price is $465,000.

For more information, contact Kevin Spruill at (210-308-6682), Fax (366-3937).

United Commercial Development recently purchased Casa Linda Plaza Shopping Center in Dallas, TX from Equitable Life Assurance Society of the United States. The 320,000 sq.ft. project, which is 84% leased, is anchored by Albertson's, Eckerd's, Blockbuster Video, Blockbuster Music, The Gap and Chili's.

For more information, contact Jean Smith or Mickey Ashmore at (214-526-6262).

Brannen/Goddard Company is in the market to purchase strip centers in the Southeast. Preferred sites are located in metropolitan Atlanta, GA and the state of GA. The company's price range is between $1 million and $10 million.

For more information, contact Peter J. Pelt at (404-980-4000), Fax (952-1188).

CB Commercial Real Estate Group, Inc. brokered the sale of Union Square Marketplace in San Jose, CA. The 189,451 sq.ft. project, which is anchored by Safeway, PayLess Drug Store, Hometown Buffet, Blockbuster Video, Payless ShoeSource and GNC, was sold by Angelo and Crisula Markoulis to an off-shore investment group for $19.55 million.

For more information, contact Doug Yoder or Dixie Divine at CB Commercial's San Jose office at (408-453-7470).

CB Commercial Real Estate Group, Inc. brokered the sale of Jantzen Beach Center in Portland, OR. The 734,000 sq.ft. project, which is anchored by Montgomery Ward, Kmart, Computer City, Ross and Toys 'R Us, was sold to Birtcher Northwest by Prudential Real Estate Investors of Chicago for $18 million.

For more information, contact Bob Dunn at CB Commercial's Portland office at (503-221-4848).

Allen Fuller Co. Realtors has the listing to sell single and multi-tenant retail net leases in CT and FL. Prices range between $1 million and $20 million. The company is also in the market to purchase single tenant retail buildings. Preferred sites have at least a 10 year term, offer competitive returns, have a B+ credit rating, have rental increases, and located in metropolitan areas with prices between $500,000 and $10 million.

For more information, contact David Mufson at (305-532-0881), Fax (532-0882).

Malan Realty Investors, Inc. recently purchased The Shops at Fairlane Meadows in Dearborn, MI. The 330,115 sq.ft. project is anchored by Mervyn's, Target, Best Buy and Kids 'R Us. The property was purchased from Ford Motor Land Development Corp. for $16.6 million.

For more information, contact Michael K. Kaline at (810-644-7110).

Kransz Companies is in the market to purchase value added/redevelopment retail in good locations. Projects of interest have vacant or below market rent big box space or land for development.

For more information, contact Jay Krigsman at (714-285-0200), Fax (285-1161).

Duffy & Company has the listing to sell a 6,900 sq.ft. strip center in Southeast Denver, CO. The project, which is currently vacant, is located on a busy arterial road and Blockbuster Video is planning to construct a store adjacent to the site. The asking price is $425,000.

For more information, contact James McCrimmon at (303-758-3105), Fax (758-3253).

SCS Investments has the listing to sell 4,446 acres of land, in three separate tracts, in San Angelo, TX. The sites are zoned commercial and adjoin recreational lakes and residential developments. The asking price is $10,011,280.

For more information, contact Scott C. Steger at (915-944-7112), Fax (944-7112).

Quest Realty, Inc. has the listing to sell a 28 acre parcel of land zoned and approved for 200,000 sq.ft. of building in the Sarasota/Bradenton area of FL. The company also represents clients in the market to purchase shopping centers and triple net leases.

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

Letovsky Real Estate Corp. represents clients in the market to purchase net leased big box retail projects, restaurants and ground leases. Short term leases will be considered. Terms can be all cash or leveraged.

For more information, contact Clifford Letovsky at (514-933-4300), Fax (933-5430).

Food Tenants Hungry for Sites Nationwide

Gorant Candies, Inc. trades as Gorant Candies and Yum Yum Tree at 65 locations in OH and PA. The candy stores occupy spaces of 4,000 sq.ft. in power centers. Preferred anchors include drug stores and supermarkets. Plans call for up to four openings in the coming 18 months. Expansion will take place in the existing markets. Leases running five years with a five-year option are typical. The company also trades as Abbott's Cards & Gifts in OH and PA.

For more information, contact Judi Doan, Gorant Candies, Inc., 8301 Market Street, Youngstown, OH 44512; 216-726-8821, Fax 726-0325.

Caffino, Inc. operates 14 locations in CA. The stores, selling coffee, expresso and pastries, occupy spaces of 1,000 sq.ft. to 1,500 sq.ft. in freestanding facilities and strip centers having good visibility and high traffic. Plans call for 30 openings in the coming 18 months. Expansion will take place in CA, IL and MA.

For more information, contact Mike Austin, Caffino, Inc., 6140 Stoneridge Mall Road/ Suite 450, Pleasanton, CA 94580; 510-460-2939, Fax 416-0120.

Deli Development Corp. does business as Schlotzky's Deli at 435 locations nationwide, except in MN, MT, NH, RI and VT. The delicatessens occupy spaces of 1,800 sq.ft. to 2,700 sq.ft. in downtown store fronts, freestanding facilities, regional malls, outlet and strip centers. Plans call for 250 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Henry Arsenault, Deli Development Corp., 153 Broadway/ Suite 201, Raynham, MA 02767; 508-823-2381, Fax 828-9383.

IHOP Corporation trades as International House of Pancakes at 650 locations nationwide, except in OH, ID, KY, WV, WY, ND, SD and VT. The restaurants occupy spaces of 4,000 sq.ft. to 5,000 sq.ft. on a one-acre pad in freestanding facilities and end caps of strip centers. Plans call for 60 openings in the coming 18 months. Expansion will take place in the existing markets.

For more information, contact Joe Kennedy, IHOP Corporation, 1050 Wall Street West/ Suite 670, Lyndhurst, NJ 07071-3615; 201-935-5200, Fax 935-7402.

Hospitality Associates trades as a Fuddruckers franchisee at eight locations in PA, NY and NJ. The restaurants, serving gourmet hamburgers, occupy spaces of 2,000 sq.ft. to 5,000 sq.ft. in freestanding facilities, power and strip centers. Plans call for 20 openings in the coming 18 months. Expansion will take place in the Philadelphia, PA metropolitan area. Preferred demographics include a population of 150,000 within five miles earning $35,000 as the average income. Leases running 20 years are typical.

Magic Restaurants trades as a Red Robin Restaurants franchisee at six locations in the New York City metropolitan area. The restaurants occupy spaces of 6,000 sq.ft. to 7,500 sq.ft. in freestanding facilities, regional malls, power and strip centers. Plans call for three openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 150,000 within five miles earning $35,000 as the average income. Leases running 20 years are typical.

Beefsteak Charlies operates 10 locations in the New York City metropolitan area. The restaurants occupy spaces of 6,000 sq.ft. to 10,000 sq.ft. in freestanding facilities and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market. Preferred demographics include a population of 150,000 within five miles earning $30,000 as the average income. Leases running 20 years are typical. The company is franchising.

Tea House trades as Wok & Roll at 15 locations in NY, NJ, PA, OH, HI, TX and GA. The Chinese restaurants occupy spaces of 600 sq.ft. in food courts of regional malls and specialty centers. Plans call for 10 openings in the coming 18 months. Expansion will take place nationwide in malls doing greater than $300/psf. Preferred demographics include a population of 250,000 within 10 miles earning $35,000 as the average income. Leases running 10 years are typical.

Poll Foods trades as Major's Steakhouse at four locations in NY. The restaurants occupy spaces of 5,000 sq.ft. to 8,000 sq.ft. in downtown store fronts, freestanding facilities and strip centers. Plans call for five openings in the coming 18 months. Expansion will take place in the New York City metropolitan area. Preferred demographics include a population of 150,000 within three miles earning $35,000 as the average income. Leases running 20 years are typical.

Giannas Foods trades as Fowl Play at three locations in NY and NJ. The fast food restaurants, specializing in chicken, occupy spaces of 600 sq.ft. in regional malls. Plans call for two openings in the coming 18 months. Expansion will take place in NY, NJ and CT. Preferred demographics include a population of 250,000 within 10 miles earning $30,000 as the average income. Leases running 10 years are typical.

Cajun America trades as Cajun USA at 12 locations in VA, PA, NY and NJ. The restaurants, serving Cajun-style food, occupy spaces of 600 sq.ft. to 700 sq.ft. in food courts of regional malls. Plans call for six openings in the coming 18 months. Expansion will take place in the existing markets as well CT, MD and DE. Preferred demographics include a population of 250,000 within 10 miles earning $35,000 as the average income. Leases running 10 years are typical.

Alberto's Food Corp. trades as Alberto's Villa at three locations in PA. The Italian bistro restaurants occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in regional malls. Preferred anchors include Macy's and Nordstrom's. Plans call for eight openings in the coming 18 months. Expansion will take place in OH, PA, NJ, NY and CT. Preferred demographics include a population of 250,000 within seven miles earning at least $40,000 as the average income. Leases running 15 years are typical.

Cafe Spasso operates two locations in NY. The bistros, serving American and Italian food, occupy spaces of 5,000 sq.ft. in freestanding facilities, specialty and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in Long Island, NY.

For more information on the above nine companies, contact Paul Fetscher, c/o Great American Brokerage, 630 Third Avenue/ 18th Floor, New York, NY 10017; 212-557-7272, Fax 557-1685.

I Can't Believe It's Yogurt operates 1,200 locations worldwide. The units, selling frozen desserts, occupy spaces of 1,000 sq.ft. in downtown store fronts, freestanding facilities, power centers and regional malls. Plans call for 15 openings in the coming 18 months. Expansion will take place worldwide.

Boxies Cafe operates five locations in TX, FL and SC. The restaurants occupy spaces of 2,500 sq.ft. to 3,000 sq.ft. in freestanding facilities, power and strip centers. Preferred anchors include supermarkets. Plans call for 15 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include a population of 10,000 within one mile earning $35,000 as the average income. The company is franchising.

For more information on the above two companies, contact Cory Bird, c/o The Brice Group, PO Box 809112, Dallas, TX 75380-9112; 214-392-3012, Fax 788-5036.

Elmer's Restaurants, Inc. does business as Elmer's Pancake & Steak House at 28 locations in AL, CA, ID, MT, OR and WA. The family restaurants occupy spaces of 6,400 sq.ft. in freestanding facilities. Growth opportunities are sought in OR and WA. The company is franchising.

For more information, contact Anita Goldberg, Elmer's Restaurants, Inc., 11902 S.E. Stark Street, Portland, OR 97216; 503-252-1485, Fax 257-7448.

Restaurant Sites trades as Border Cafe at six locations in MA, NJ and MD. The Mexican restaurants occupy spaces of 7,500 sq.ft. in freestanding facilities. Plans call for four openings in the coming 18 months. Expansion will take place in MD, NJ and CT.

Restaurant Sites also trades as Hometown Buffet at 71 locations nationwide. The buffet-style restaurants occupy spaces of 10,000 sq.ft. in power and strip centers. Plans call for 30 openings in the coming 18 months. Expansion will take place nationwide.

Restaurant Sites does business as Dakota Steakhouse at eight locations in CT, NY and UT. The restaurants occupy spaces of 8,500 sq.ft. to 10,000 sq.ft. in freestanding facilities. Plans call for five openings in the coming 18 months. Expansion will take place in CT, NY and PA.

Restaurant Sites also does business as a Chili's Restaurant franchisee at 28 locations in New England and NY. The Tex-Mex restaurants occupy spaces of 6,200 q.ft. in freestanding facilities. Plans call for seven openings in the coming 18 months. Expansion will take place in MA, CT, VT, NH and ME.

For more information on the above four companies, contact Richard Gallivan, Restaurant Sites, 28 Somers Road, Hampden, MA 01036; 413-566-0216, Fax 566-2227.

Corral Northeast, Inc. trades as Golden Corral Restaurants at 25 locations in VA, MD, DE, PA and OH. The steak and buffet restaurants occupy spaces of 11,200 sq.ft. in freestanding facilities, power centers and regional malls. Plans call for 20 openings in the coming 18 months. Expansion will take place in the Northeastern region. Preferred demographics include a population of 75,000 within five miles.

For more information, contact Robert Berkheimer, Corral Northeast, Inc., 10630 Little Patuxent Parkway, Columbia, MD 21044-3204; 410-964-6481, Fax 964-6485.

Del Taco, Inc. trades as Del Taco at 275 locations in AL, AZ, CA, GA, IL, MO, NH, NV and UT. The fast food restaurants, serving Mexican-American food, occupy spaces of 2,000 sq.ft. to 2,400 sq.ft. in freestanding facilities with drive-thrus. Preferred anchors include discount stores, home improvement stores and supermarkets. Plans call for 50 openings in the coming 18 months. Expansion will take place in CA, NV, UT and Rochester, NY. Leases running 20 years with options are typical. The company is franchising. The company prefers to purchase its sites or build-to-suit deals.

For more information, contact James Farley, Del Taco, Inc., 1800 West Katella Avenue, Orange, CA 92667; 714-289-4220, Fax 289-4227.

Figaro's Italian Pizza, Inc. does business as Figaro's Italian Kitchen at 59 locations in CA, ID, MN, ND, OR and WA. The stores, offering Italian dishes on a take-out basis only, occupy spaces of 1,200 sq.ft. to 1,400 sq.ft. in freestanding facilities. Preferred anchors include Wal*Mart and major supermarket chains. Growth opportunities are sought in OR, WA, ID and NV. Preferred demographics include a population of 20,000 within five miles earning $40,000 as the average income. Leases running five years with two options of five years each are typical. The company is franchising.

For more information, contact Max Bennett, Figaro's Italian Kitchen Inc., 1500 Liberty Street S.E. #160, Salem, OR 97302; 503-371-9318, Fax 363-5364.

Golden Franchising Corp. trades as Golden Fried Chicken at 106 locations in AR, AZ, OK, TX and Mexico. The fast food restaurants occupy spaces of 1,800 sq.ft. in freestanding facilities. Preferred anchors include Wal*Mart and supermarkets. Plans call for 12 openings in the coming 18 months. Expansion will take place in the existing markets. Preferred demographics include a population of 10,000 within three miles earning $30,000 as the average income. Leases running five years with three options of five years are typical. The company is franchising.

For more information, contact Victor Erwin, Golden Franchising Corp., 11488 Luna, Dallas, TX 75234; 214-831-0911, Fax 831-0401.

Rock Bottom Restaurants, Inc. trades as Rock Bottom Brewery at five locations in CO, MN, TX and OR. The brew pubs occupy spaces of 10,000 sq.ft. to 15,000 sq.ft. in freestanding facilities. Plans call for at least three openings in the coming 18 months. Expansion will take place in IL, KS and OH.

For more information, contact Dawn Perry, Rock Bottom Restaurants, Inc., 1001 16th Street, Denver, CO 80265; 303-534-7616, Fax 534-2129.

Cracker Barrel Old Country Stores does business as Cracker Barrel at 218 locations in TN, AL, GA, FL, NC, SC, IL, MI, IA, WY, WI, WV, VA, CO, IN, KS and KY. The restaurants occupy spaces of 9,700 sq.ft. in freestanding facilities. Growth opportunities are sought in TN.

For more information, contact Jim Torcivia, Cracker Barrel, PO Box 787, Lebanon, TN 37088; 615-444-5533, Fax 443-9433.

Diversifoods, Inc. trades as Tropik Sun Fruit & Nut at 97 locations nationwide. The stores, selling candy and snacks, occupy spaces of 180 sq.ft. to 800 sq.ft. in power centers and regional malls. Plans call for 15 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Harry Wellard, Diversifoods, Inc., 37 Sherwood Terrace/ Suite 101, Lake Bluff, IL 60044; 708-234-3407, Fax 234-3856.

Uno Restaurant Corp. trades as Uno Restaurants Chicago Bar & Grill at 135 locations nationwide. The restaurants occupy spaces of 6,300 sq.ft. in freestanding facilities regional malls and end caps of strip centers. Plans call for 43 openings in the coming 18 months. Expansion will take place nationwide.

For more information, contact Maurie Molod (New England, VA, Cincinnati, OH), Kurt Hoffman (Columbus, OH; Philadelphia, PA; Baltimore, MD; Denver, CO and Washington, D.C.) or Micki Kahn (CT, FL and NY), Uno Restaurant Corp., 100 Charles Park Road, West Roxbury, MA 02132; 617-323-9200, Fax 323-7170.

Andre-Boudin Bakeries trades as Boudin Sourdough Bakery & Cafe at 28 locations in CA and IL. The stores, selling sourdough French bread, cafe fare, salads and gourmet foods, occupy spaces of 2,000 sq.ft. in regional malls. Plans call for three openings in the coming 18 months. Expansion will take place in CA.

For more information, contact Tim O'Shea, Andre-Boudin Bakeries, 132 Hawthorne Street, San Francisco, CA 94107; 415-882-1849, Fax 882-1818.

Lead Sheet

Kid's Sportworld

David Hill

1762 Clarkson Road

Chesterfield, MO 63017

314-530-1300, Fax 821-2966

Apparel

The three-unit chain operates locations in MO. The stores, selling athletic clothing and footwear for children in the age bracket of toddlers through young teens, occupy spaces of 2,800 sq.ft. in strip centers. Plans call for up to three openings in 1996. Expansion will take place in the existing market. Leases running five years are typical.

Miller International

dba Miller Stockman

Juliet Wright

8500 Zuni Street

Denver, CO 80221

303-428-5696, Fax 430-1130

Apparel

The 36-unit chain operates locations in CO, CA, NV and UT. The western wear stores occupy spaces of 3,500 sq.ft. to 5,000 sq.ft. in regional malls, outlet and power centers. Preferred anchors include JC Penney, Mervyn's, Macy's, Nordstrom's, Wal*Mart and supermarkets. Plans call for five openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical.

Specialty Retailers, Inc.

dba Palais Royal, Beall's,

Fashion Bar, Stage

Mel Ward

10201 South Main Street

Houston, TX 77025

713-669-2761, Fax 660-2709

Apparel

The 250-unit chain operates locations in AR, LA, MS, MO, KS, TX, OK, IL and IA. The stores, selling clothing and shoes for the family, occupy spaces of 18,000 sq.ft. to 20,000 sq.ft. in regional malls and strip centers. Plans call for 25 openings in the coming 18 months. Expansion will take place in the existing markets. Leases running 10 years are typical.

American Tire and Service Company

dba Mark Morris, Tire Station, Expert Tire,

Firestone Tire & Service Centers

Ken Lind

2550 West Golf Road

Rolling Meadows, IL 60008

708-981-2200, Fax 981-2371

Automotive

The 1,525-unit chain operates locations nationwide. The automotive service centers occupy spaces of 6,500 sq.ft. in freestanding facilities and strip centers. Preferred anchors include fast food restaurants and any commercial draw. Plans call for up to 50 openings in the coming 18 months. Expansion will take place in all growing markets. Preferred demographics include a population of 30,000 within three miles earning $35,000 as the average household income. Leases running 20 years with options are typical. The company prefers build-to-suit deals.

Shero Enterprises, Inc.

dba Elmer's Drive-In Grocery,

River Liquor

Robert Hensley, Jr.

254 South Industrial Boulevard

Dallas, TX 75207

214-748-8013, Fax 744-5466

Convenience Store

The 10-unit chain operates locations in TX. The stores, selling grocery items and liquor, occupy spaces of 3,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in TX.

Teruya Brothers Ltd.

dba Fastop Convenience Store,

Tinie Super Market

Roy T. Uyehara

1276 Young Street

Honolulu, HI 96814-1893

808-591-8946, Fax 593-8147

Convenience/Supermarket

The 18-unit chain operates locations in HI. The convenience stores occupy spaces of 3,000 sq.ft. in freestanding facilities and the supermarkets occupy spaces of 40,000 sq.ft. in strip centers. Growth opportunities are sought in the existing market. Preferred demographics include a population of 10,000 within one mile earning $45,000 as the average income. Leases running at least 20 years are typical.

Huish Family Fun Centers

Cort Huish

33208 Paseo Cervesa/ Suite C

San Juan Capistrano, CA 92675

714-493-5222, Fax 493-5298

Entertainment

The eight-unit chain operates locations in CA and OR. The fun centers, featuring miniature golf, games and other attractions, occupy freestanding facilities on land areas of five acres. Growth opportunities are sought nationwide. The company also operates two freestanding restaurants, trading as Bullwinkles Restaurants, in CA.

The Brookstone Company

dba Brookstone

Tom Carroll

Vose Farm Road

Peterborough, NH 03458-2111

603-577-8185

Gifts

The 131-unit chain operates locations in 31 states. The stores, selling unique gifts, occupy spaces of 3,500 sq.ft. in regional malls. Preferred anchors include Ann Taylor and Williams Sonoma. Plans call for up to 30 openings in the coming 18 months. Expansion will take place nationwide. Preferred demographics include trade areas with a dense population and higher income levels. Leases running 12 years are typical.

Natural Wonders

Judy Brown

4209 Technology Drive

Fremont, CA 94538-6339

510-252-6600, Ext. 636, Fax 252-6793

Gifts

The 145-unit chain operates locations in AZ, CA, CO, CT, FL, GA, IA, IL, IN, KS, KY, LA, MA, MD, MA, MI, MN, MO, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, SC, TN, TX, UT, VA, WA, WV and WI. The stores, selling nature and science oriented gifts, occupy spaces of 2,200 sq.ft. to 2,500 sq.ft. in regional malls and strip centers. Plans call for up to 20 openings in the coming 18 months. Expansion will take place in the existing markets.

Orchard Supply Hardware Corp.

dba Orchard Supply

Julie Leverton

6450 Via Del Oro Boulevard

San Jose, CA 95119

408-281-3500, Fax 629-7174

Home Center

The 60-unit chain operates locations in CA. The stores, selling hardware and garden products, occupy spaces of 45,000 sq.ft. to 60,000 sq.ft. in freestanding facilities, regional malls and strip centers. Preferred anchors include supermarkets. Plans call for up to seven openings in the coming 18 months. Expansion will take place in Southern CA. Preferred demographics include a population of 100,000 within four miles earning $50,000 as the average income. Leases running 20 years are typical.

E.C. Barton & Co.

dba Bartons Union Salvage

Neil Crowson

2929 Browns Lane

Jonesboro, AR 72403

501-932-6673, Fax 972-1304

Home Improvement

The 43-unit chain operates locations in AR, AL, LA, MO and MS. The stores, selling building supplies, occupy spaces of 4,000 sq.ft. to 30,000 sq.ft. in freestanding facilities. Growth opportunities are sought in the existing markets.

Sterling Vision, Inc.

dba Sterling Optical

Jerry Darnell

10 Peninsula Boulevard

Lynbrook, NY 11563

516-887-2100, Fax 887-2213

Optical

The 190-unit chain operates locations in NY, MA, CA, VA, MD, NJ, CO, IL, WI, MO, PA, IN and FL. The stores, selling eyewear and contact lenses, occupy spaces of 1,100 sq.ft. to 1,500 sq.ft. in regional malls, power and strip centers. Preferred anchors include T.J. Maxx and Wal*Mart. Plans call for 30 openings in the coming 18 months. Expansion will take place in the Southern CA and the Mid-Atlantic region. Preferred demographics include a population of 30,000 within 10 miles earning $40,000 as the average income. Leases running 10 years are typical. The company is franchising.

Orscheln Farm & Home Supply

Mike McClaren

339 North William Street

Moberly, MO 65270

816-263-4335, Fax 263-6053

Specialty

The 84-unit chain operates locations in MN, IA, KS, MO, OK and NE. The stores, selling clothing, automotive, farming, pet, hardware, electrical and plumbing supplies, occupy spaces of 20,000 sq.ft. to 40,000 sq.ft. in freestanding facilities. Preferred anchors include supermarkets. Plans call for 15 openings in the coming 18 months. Expansion will take place in TX, KY and TN. Preferred demographics include a population of 20,000 within 10 miles earning $18,000 as the average income. Leases running five years with three five-year options are typical.

Academy Corp.

dba Academy

David Gochman

1800 N. Mason Road

Katy, TX 77449

713-579-1555, Fax 492-5204

Sporting Goods

The 32-unit chain operates locations in LA, OK and TX. The stores occupy spaces of 40,000 sq.ft. in freestanding facilities and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in LA and TX.

Step Ahead Investments, Inc.

dba 98 Cent Clearance Center

Bill Coyle

3222 Winona Way

North Highlands, CA 95660

916-349-7238, Fax 349-7200

Variety

The 33-unit chain operates locations in CA and NV. The stores, selling closeout merchandise, occupy spaces of 10,000 sq.ft. to 15,000 sq.ft. in power and value centers. Plans call for up to six openings in the coming 18 months. Expansion will take place in the existing markets. Leases running five to ten years are typical.

First Row Video, Inc.

Tom Strauss

c/o T.S. & Associates

19 Colonial Drive/ Suite 26

Youngstown, OH 44505

216-759-3039, Fax 759-9340

Video

The 25-unit chain operates locations in OH and PA. The stores occupy spaces of 6,000 sq.ft. to 10,000 sq.ft. in freestanding facilities. Preferred anchors include supermarkets. Plans call for six openings in the coming 18 months. Expansion will take place in Western PA and Central OH. Preferred demographics include a population of 100,000 within three miles earning $40,000 as the average income. Leases running five years are typical.

J.C. Flicks

dba J.C. Flicks Video

Joe Wojick

20639 Samherst Court

Joliet, IL 60433

815-727-9370

Video

The 18-unit chain operates locations in AZ, CO and IL. The stores occupy spaces of 5,000 sq.ft. to 10,000 sq.ft. in strip centers. Preferred anchors include Kmart, Wal*Mart and supermarkets. Growth opportunities are sought in UT, ID, MT, WY, CO and IL. Preferred demographics include a population of 10,000 within three miles. Leases running five years are typical.

Financial News...

Hi-Lo Automotive, Inc. (713-663-6700) and Chief Auto Parts, Inc. recently agreed to terminate their merger agreement. Hi-Lo also reported that sales for its second quarter, ended June 30, increased 16.2% to $71 million from $61.1 million for the same period last year. However, comparable store sales for the quarter fell 2.4%. During the quarter, the company opened five stores in TX and currently operates 193 stores in TX, LA and CA.

Musicland Stores Corp. (612-932-7700) reported that revenues for its second quarter, ended June 30, increased 21.5% to $331.7 million from $273.1 million for the same period last year. However, the net loss during the quarter increased to $7.5 million from $2.2 million. Sales at the company's Media Play and On Cue stores increased 172.6% to $93.1 million, and comparable store sales increased 19.1%. Sales at the Sam Goody/Musicland and Suncoast Motion Picture Company decreased 0.6% to $235 million and comparable store sales fell 3.4%. During the quarter, the company opened 13 Media Play stores, 17 On Cue stores, four Suncoast stores and one Sam Goody store, while it closed 10 music stores. Currently, the company operates a total of 1,422 locations; 846 Sam Goody/Musicland units, 387 Suncoast units, 109 On Cue units, 64 Media Play units, 15 United Kingdom units and one Readwell's unit.

OfficeMax, Inc. (216-295-6411) reported that sales for its second quarter, ended July 22, increased 34.3% to $482.46 million, up from $359.117 million for the same period last year. Comparable store sales increased 16.2%. During the quarter, the company opened 16 stores and currently operates 408 units. The company also operates CopyMax and FurnitureMax, two concepts which operate as stores-within-a-store at select locations. Up to 10 CopyMax units are planned for fiscal 1995 and 65 for fiscal 1996. Up to 20 FurnitureMax stores are planned for FY95 with another 65 planned for FY96.

Funco, Inc. (612-946-7222) reported that net sales for its first quarter, ended July 2, increased 22% to $12.261 million, up from $10.072 million during the same period last year. However, the company posted a quarterly net loss of $1.214 million compared to a net loss of $644,000 last year. Comparable store sales fell 23%. The company currently operates 181 stores in MN, TX, IL, WI, MI, MO, NY, MA, PA and Washington, D.C.

Space Place

Alabama

Birmingham- Midway Plaza is anchored by Maxway and Omega Tire. The 100,800 sq.ft. project has spaces of 6,000 sq.ft. and 40,000 sq.ft. as well as a 6,000 sq.ft. pad site available for lease. The project fronts Bessemer Super Highway which generates a daily traffic count of 20,500 cars. Demographics include a five-mile population of 173,565 earning $25,498 as the average income. In Hamilton- Hamilton Heights is anchored by Food World and Wal*Mart. The project has 26,490 sq.ft. available for lease in phase II. The site fronts U.S. Highway 78 which generates a daily traffic count of 11,370 cars. Demographics include a five-mile population of 8,033 earning $26,324 as the average income. In Talladega- Talladega Commons is anchored by Wal*Mart. The project has 50,000 sq.ft. available for lease in phase II. The site fronts East Battle and Haynes Street which generate a daily traffic count of 14,590 cars. Demographics include a five-mile population of 20,466 earning $26,450 as the average income.

For details, contact Rodney Barstein of Barstein & Associates, Inc. at (205-951-1712), Fax (951-1717).

Arizona

Phoenix- A 1,850 sq.ft. space is available for lease in the downtown area. The site is located adjacent to Ruby Tuesday restaurant and Arizona State University.

For details, contact David Jarand of Arizona Retail Group at (602-955-6000), Fax (955-9130).

Connecticut

Westville- Blake Street Center is anchored by a banquet facility. The 135,000 sq.ft. project has spaces from 800 sq.ft. and up available for lease. The project fronts Whalley Avenue and Blake Street which generate a daily traffic count of 13,300 cars. Demographics include a five-mile population of 230,239 earning $45,703 as the average income.

For details contact, Vicky Chastain of Levey Miller Maretz at (203-389-5377), Fax (389-6302).

Illinois

Elgin- Clocktown of Elgin is anchored by Dunkin' Donuts-Baskin Robbins and Subway. The 9,000 sq.ft. project has a space of 1,495 sq.ft. available for lease. The site is located across the street from Otter Creek Shopping Center which is anchored by Target, Omni, Handy Andy and SoFro Fabrics. In Naperville- University Commons is anchored by White Hen and Dairy Queen. The 26,500 sq.ft. project has spaces from 800 sq.ft. to 1,200 sq.ft. available for lease. Demographics include a three-mile population of 83,000+ earning $61,000+ as the average income.

For details, contact Carolyn A. Rakunas of Equity Attainment, Inc. at (708-325-3200).

Nebraska

Omaha- Montclair Shopping Center has a 76,000 sq.ft. anchor position, which can be divided, and pad sites of 5,000 sq.ft. and 7,000 sq.ft. available for lease. The site fronts 132nd and West Center Road which generate a daily traffic count of 66,000 cars. Demographics include a three-mile population of 76,600 earning $60,500 as the average household income.

For details, contact Scott Seldin of Seldin Company at (402-333-7373), Fax (333-4281).

Ohio

Maumee- Golden Gate Shopping Center is anchored by FoodTown Supermarket and The Pharm Discount Drugs. The 92,668 sq.ft. project has spaces of 1,200 sq.ft. and 9,750 sq.ft. available for lease. The site fronts Anthony Wayne Trail and Conant which generate a daily traffic count of 45,000 cars. Demographics include a five-mile population 97,571 earning $48,822 as the average income. In Springfield Township- Springvalley Shops has an 1,800 sq.ft. space available for lease. The site fronts Airport Highway and McCord Road which generate a daily traffic count of 38,000 cars. The project is located across from the 550,000 sq.ft. Spring Meadows Shopping Center which is anchored by Service Merchandise, Marshalls, Builders Square, Kroger and Target. Demographics include a five-mile population of 124,934 earning $40,257 as the average income.

For more information, contact Mark Zyndorf of Zyndorf/Serchuk, Inc. at (419-249-7070), Fax (255-2439).

Lease Signings

The Sansone Group, Inc. (314-822-9009) leased 3,185 sq.ft. to Kid's Sportsworld and 3,475 sq.ft. to The Army Corp. of Engineers at Mid Rivers Center in St. Charles, MO; 2,020 sq.ft. to First Community Credit Union at Keller Plaza in St. Louis, MO; 4,432 sq.ft. to Coldwell Banker at Dierbergs Heritage Plaza in Creve Coeur, MO; 1,400 sq.ft. to Great Clips at Olympic Oaks Village in St. Louis, MO; and 1,500 sq.ft. to Subway at The Plaza at Sunset Hills in Sunset Hills, MO.

Grubb & Ellis Commercial Estate Services (714-833-2900) leased 4,264 sq.ft. to Stix for a Chinese restaurant and 3,500 sq.ft. to Koo Koo Roo for a chicken restaurant at Park Place in Irvine, CA.

Metro Commercial Real Estate, Inc. (609-866-1900) leased two 65,000 sq.ft. spaces to Giant Food for stores at Hilltown Crossing in Hilltown, PA and at Oxford Oaks in Lower Makefield Township, PA.

Price Associates, Inc. (312-641-1800) leased spaces to Bagel Bros. Bakery and Deli at Northpoint Shopping Center in Arlington Heights, IL and in Chicago, IL.

Store Closings

Venture (314-281-6292) plans to close two stores in IL and one store in OK before the end of the year.

Eagle Country Market (708-697-9787) recently closed its supermarket in Portage, IN.

Longs Drug Stores (510-210-6624) plans to close its last store in Anchorage, AK next month. Earlier this year, Long's closed its other unit in Anchorage.

Oshman's Sporting Goods (713-928-3171) recently closed its store at Jacksonville Market Square Mall in Jacksonville, FL, citing that the store was not perfoming up to standards.

Who's Opening and Where...

Ezra D. Groman Bakeries, Inc. (215-867-7564) plans to open a Groman's Bakeries unit in Allentown, PA this year.

Uptons (404-662-2500) recently opened a 61,000 sq.ft. apparel store at New Hope Commons Shopping Center in Durham, NC. The company is also planning to open a store in Reston, VA during the Fall.

Borders (313-995-9702) plans to open three Borders Books and Music stores next Spring. Stores are planned for Cary, NC; at Parkway Place Shopping Center in Tukwila, WA; and at Rocky Ridge Town Center in Roseville, CA.

U.S Factory Outlets (212-563-3650) recently signed a lease with Massachusetts Mutual Life Insurance Company to open a 56,000 sq.ft. store in Springfield, MA during August 1996.

Corvus Corp. (303-426-8880) plans to open an Underworld, Ltd. lingerie store in Colorado Springs, CO this year. The company currently operates four units in CO.

Panda Management Company (213-257-3698) recently opened a Panda Express restaurant at the Broadway Mall in Hicksville, Long Island, NY, the company's first in the NY area. The company, which operates 171 units in 24 states, is planning to open 40 restaurants during 1995.

Blockbuster Entertainment Group (305-832-3000), in a joint venture with Video Invest Espanola SA, plans to develop 40 more Blockbuster Video stores in Madrid and Barcelona, Spain during the coming three years. Currently, 13 Blockbuster Video stores are operating in Spain.