Issue 42 for the week of November 24, 1995

The Dealmakers Issue Number 42 for the week of November 24, 1995.

My Way by Ted Kraus

No one ever claimed that the people in our industry are bashful, but I just came across one of the biggest displays of gall I've encountered in 25 years in this business. A friend of mine sent me a copy of a letter he received from their tenant, ClothesTime. The letter invited my friend to their annual Christmas Party at the Disneyland Hotel in Anaheim, CA. To attend, however, my friend had to make a "contribution" of $50 for every lease he had with Clothestime (they had four stores, therefore $200 in "contributions"). To save my friend paperwork (aren't they considerate), he didn't have to send ClothesTime a check, they'd deduct the cost from November's rent.

My friend called ClothesTime after receiving the letter and explained that while he appreciated being invited, he'd prefer the cash, "so don't deduct it." November's rent came in and guess what, all the stores had deducted $50 from rent. His accounting department called the tenant saying the deduction was improper, but so far, they have been given the runaround regarding getting the deducted rent. That's either chutzpah like I've never seen before or they're desperate. I guess that's one way to raise money for a party.

Talking about retailers, another friend, who is a retailer, explains that because of today's difficult retail climate, whenever he calls any of his major landlords to set up an appointment, he first feels obligated to explain that he isn't coming to tell 'em his company is going "11" and requires a rent reduction. While his company is solvent and he's joking, this appears to be a major trend. Between Edison's liquidation of 500 stores, Petrie stores closing like crazy, Fayva going bye-bye, Today's Man losing their shirt, etc., etc., etc. and etc. and the uncertainty of retailing right now, there is a major abundance of space available for sub-leasing today. While the "A" locations are still commanding a substantial premium, the "B" and "C" locations are going wanting, and in most cases, are being leased at attractive rentals for the retailer. This is causing major pressure on the landlords. They're ending up not competing with other centers for tenants, but competing with their own tenant, who quite often can lease at lower rates than the owner. Haven't we been here before?

Imagine the poor landlord in a middle market that has Fashion Bug as a tenant. If they go "11," who does he replace 'em with? No one I can think of that's of similar "quality." What makes matters worse, landlords have now replaced the banks and investors as the "preferred" method of financing a retailer's expansion program. Demanding $10 to $20 a foot in T.I. above a "vanilla box" is not uncommon for many strip oriented retailers and in the malls, the "Limiteds" of the world can command $150 per ft. in T.I. What happens when this generation of retailers goes "11?" The debt on the center is insane; the rents are artificially high because the developer added to the rent the cost of the Tenant Improvements, so a $9 rent becomes a $12 cost (and because the tenant wanted the additional funding, they didn't negotiate quite as hard on rent, so the $9 could have been $7). When these tenants disavow their leases, the owner becomes dead meat, he can't lease the space at "pro forma."

Lately, it seems, I've been having more conversations regarding sub-leasing from the tenant than directly from the landlord, and I've become somewhat active in the sale of retail chains (the ones where their real estate is worth more than the company) than in the past 20 years. Unfortunately for the industry, companies like Keen Realty, Prime Locations and Shottensteins have a great future ahead of 'em (they're good companies, don't get me wrong, but for them to prosper, the rest of the industry has to suffer).

On a different subject, I just received a fax from a third friend, Steve Felix of Levin Management Corp. Steve sent me a copy of his notes from a conference he attended called "Technology & Real Estate" (he's always been a leading edge type of guy). Anyway, some of his notes I find "fascinating," such as "only one third of the attendees (real estate people) have been on the World Wide Web, a much lower percentage than most professionals."

That confirms my contention that real estate people are not computer illiterate, they're computer retards. Other trends that are occurring now are smaller offices because of technology, downsizing and more support personnel operating out of their home. (I'm glad I don't own any office buildings.) Video conferencing will be common within two years, affecting the airline/travel industry adversely (but we'll have more time with our families, that's good). Location, for many industries, is no longer or will no longer be that important (but don't worry, in retailing, location, location, location is still true.) But for many industries, the combination of computers, modems, video broadcasting, etc. means "why have expensive New York City offices, locate in the cheaper south or midwest." There is a migration of the middle/upper middle class out of the cities and that will affect retailing more so than in the past. Steve's notes go on and on regarding the impact of technology on real estate, finances and our personal lives.

In the last three weeks alone we've (TKO) gotten six or seven letters/e-mail from users of our real estate forums saying that they have ended up doing deals because of the Internet and our (free) service in particular. That seems to be becoming the norm. I recently taught a course at New York University on "DealMaking on the Internet." The class was evenly divided between male and female and young and old (young being 25 to 35 and old being over 50 [that's me]). The students wanted to learn, except for one broker who only wanted to know "How do I make money off the net now." When I tried to explain he first had to understand what the "on-line" world was about before he could make money on it, he got up and left, so there's one in every crowd.

Again, I'll repeat my past comments, if you're not "surfing the net," you'll be in major trouble within the next few years. Try out the ICSC's On-line service, Shopping Center World's or any of the commercial on-line providers, but try 'em now. (Of course, ours are the only free ones.) Microsoft just announced they'll be adding an "MLS" type service to their on-line service shortly. While this will have more of an immediate impact on the residential broker, within a few years, it will have a substantial impact on our industry as well.

P.S. In my November 10 My Way, I misidentified the company that provided the only decent food at the ICSC show in Kansas City. Everyone knows that it was Einstein Brothers Bagels who had the best food at the show. The next time I write about food I'll use my stomach instead of my head.

Drug Stores Looking To Expand

Taylor Drug Stores, Inc. trades as Taylor Drug at 34 locations in KY and IN. The pharmacies occupy spaces of 8,500 sq.ft. to 9,000 sq.ft. in freestanding facilities and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact William Harrison, Taylor Drug Stores, Inc., PO Box 1884, Louisville, KY 40201; 502-368-6541, Fax 368-6541, Ext. 444.

Care Pharmacy, Inc. trades as Care Pharmacy at three locations in ME and NH. The pharmacies occupy spaces of 5,000 sq.ft. in freestanding facilities. Plans call for one opening in the coming 18 months. Expansion will take place in NH. The company also operates two card stores trading as Cassidy's Hallmark Card Stores.

For more information, contact Francis J. Cassidy, Care Pharmacy, Inc., 98 South Main Street, Rochester, NH 03867; 603-335-2685, Fax 335-2690.

Thrifty/Payless, Inc. trades as Payless at 536 locations in CA. The drug stores occupy spaces of 20,000 sq.ft. in freestanding facilities and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing market.

The company also trades as Thrifty at 460 locations in CA. The drug stores occupy spaces of 20,000 sq.ft. in freestanding facilities and strip centers. Plans call for 10 openings in the coming 18 months. Expansion will take place in the existing market.

For more information on the above two companies, contact James Gaube, Thrifty/Payless, Inc., 9275 S.W. Peyton Road, Wilsonville, OR 97070; 503-682-4100, Fax 685-6064.

Thrift Drug, Inc. does business as Kerr Drug Stores at 98 locations in NC, SC and VA. The drug stores occupy spaces of 6,000 sq.ft. to 12,000 sq.ft. in freestanding facilities, regional malls and strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Lee Vrcek, Thrift Drug, Inc., 615 Alpha Drive, Pittsburgh, PA 15238; 412-963-6600, Fax 967-8293.

May's Drug Stores, Inc. does business as May's Drug Stores at 20 locations in MO and OK and as Drug Warehouse at 14 locations in MO and OK. The drug store occupy spaces of 8,000 sq.ft. to 8,400 sq.ft. in strip centers, while the drug warehouse units occupy spaces of 16,000 sq.ft. to 20,000 sq.ft. in strip centers. Growth opportunities are sought in the existing markets.

For more information, contact Gerald Heller, May's Drug Stores, Inc., 6705 East 81st Street, Tulsa, OK 74133-4158; 918-496-9646, Fax 496-8241.

New Construction

Homart is planning to break ground on Brass Mill Center and Brass Mill Commons in Waterbury, CT during Spring 1996. Brass Mill Center will be a two-level, 900,000 sq.ft. project anchored by Filene's in 165,000 sq.ft., Sears occupying 138,000 sq.ft., J.C. Penney occupying 126,000 sq.ft. and Lechmere in 65,000 sq.ft. Space is also be provided for a sporting goods superstore, a 12-screen movie theater, 140 specialty shops and a food court. The adjoining project, Brass Mill Commons, will be 200,000 sq.ft. and anchored by general merchandise, apparel, electronics, books, office products and restaurant tenants. Additional tenants at the two sites are expected to be announced during the first quarter of next year. The projects, which will be constructed at the same time, are expected to open during Fall 1997.

For more information, contact Scott Keeney of Homart, leasing agent of the project, at (312-551-5450), Fax (551-5485).

Horizon Group, Inc. recently completed the construction of Lakeshore Marketplace in Muskegon, MI. The project is anchored by Toys 'R Us, Ben Franklin Crafts, Witmark and Elder Beerman. The company also recently broke ground on phase I of Berkshire Outlet Village in Lee, MA. The 220,000 sq.ft. project is 70% pre-leased. Tenants who have leased space are expected to be announced during the second quarter of 1996. Phase I is expected to open during August 1996. The company is in the process of acquiring land for a 175,000 sq.ft. phase II expansion.

For more information, contact the Horizon Group, Inc. at (616-798-9100).

Posel Management Company recently broke ground on Ritz Center in Voorhees, NJ. The 125,000 sq.ft. project is anchored by a 54,000 sq.ft., 12-screen Ritz movie theater. A 65,000 sq.ft. space and a restaurant outparcel, with a liquor license, is available at the site.

For more information, contact Sy Goldberg of Posel Management at (215-627-0900).

Coast Income Properties is constructing The Courtyard at Carmel Mountain Ranch in Carmel Mountain Ranch, CA. The 130,000 sq.ft. project will be anchored by a 35,000 sq.ft. Linen 'N Things, a 30,000 sq.ft. Borders Books, a 25,000 sq.ft. Staples and an 11,000 sq.ft. Petco. The site is expected to open during the first quarter of 1996.

For more information, contact Dave Hagglund or Peter Orth of CB Commercial Real Estate Group, Inc., the leasing and marketing agents, at (619-546-4614 or 546-4623).

Who's Opening and Where...

Barnes & Noble (212-633-3512), within the last few weeks, opened 60,000 sq.ft. bookstores at Lincoln Triangle and Union Square in New York City, NY; a 28,000 sq.ft. unit in Bloomington, IN; a 25,200 sq.ft. unit in Cincinnati, OH; a 30,000 sq.ft. unit in Augusta, ME; a 27,000 sq.ft. store in Columbia, SC; a 30,000 sq.ft. unit in the Georgetown section of Washington, D.C.; a 25,000 sq.ft. store in Myrtle Beach, SC; a 20,020 sq.ft. store in Fremont, CA; a 30,000 sq.ft. unit in Champaign, IL; a 30,000 sq.ft. unit in Evansville, IN and a 20,000 sq.ft. store in Forest Hills, NY.

Eddie Bauer (206-882-6470) opened a 6,300 sq.ft. store at Eaton Centre in Toronto, Ontario, Canada last month. The unit marks the 400th for the chain. The company also recently opened an outlet store at Supermall of the Great Northwest in Auburn, WA and is planning to open four superstores during 1996.

Finast Supermarkets (216-518-6129) opened a 60,000 sq.ft. food and drug store at The Greens of Strongsville in Strongsville, OH several weeks ago. The store also includes a full-service branch of Fifth Third Bank. The company currently operates 41 units in OH.

Kentucky Fried Chicken (502-456-8300) recently opened a restaurant in New Dehli, India through its licensee KFC India Holdings Pvt. Ltd., despite militants' threats and government action. In addition to serving fried chicken, the restaurant is also serving vegetarian burgers and other items, cooked separately, to respect Indian sensitivities. KFC, which plans to open 30 restaurants in India over the next few years, has yet to open in Bombay, Maharashtra another potential trouble spot. Bal Thackeray, a government leader has said that KFC won't be allowed to open in his state because he was convinced, after a conversation with Mrs. Gandhi, that consumption of processed chicken would lead to diseases like cancer and tuberculosis. Thackeray said, "A poison like Kentucky Fried Chicken will only help in controlling the country's population boom, as it would lead to more deaths. We have better alternatives to control the population."

Baby Superstore (803-297-9444) recently opened a 42,300 sq.ft. store in San Antonio, TX. The company is planning to open a second unit in the San Antonio market.

Borders, Inc. (313-995-9702) recently opened a Borders Books and Music store in Tucson, AZ; a unit at Perimeter Village Shopping Center in Atlanta, GA; a store in Fairfax, VA and a store in Germantown, TN. The company expects to be operating more than 100 units by the end of the year and have sales in excess of $700 million. Average store sales are $7.2 million annually.

Camelot Corp. (214-733-3005) recently opened five Mr. CD-ROM Stores in the Dallas, TX market. The stores ranged in size from 1,000 sq.ft. to 3,000 sq.ft. and offer more than 1,500 software titles. These corporate-owned units are the first of a planned 100 corporate and franchised stores to be opened by Christmas, 1996.

Ralphs Grocery Company (310-884-9000) recently opened two Food 4 Less warehouse units in Anaheim, CA and a store in Inglewood, CA. The units are among the series of store conversions from Ralphs conventional supermarket to the Food 4 Less price-impact warehouse format, following the merger between Ralphs Grocery Company and Food 4 Less Supermarkets, Inc. The company operates 350 units in Southern CA, 27 in Northern CA and 37 in the Midwest. The Food 4 Less division operates 62 units in Southern CA.

Melville Corp. (914-925-4188) recently opened a 50,000 sq.ft. Linens 'N Things store in Totowa, NJ.

The Pep Boys (215-229-9000) recently opened a 22,000 sq.ft. supercenter in Hartford, CT, marking its entrance into the state. The company, which is looking to open 100 units during fiscal 1996, is planning to open supercenters in Orange and Hamden, CT during the fourth quarter and is looking to open stores in CT and other New England states including Boston, MA next year.

Uptons (770-662-2500) recently opened a 57,000 sq.ft. store at Spectrum Center in Reston, VA.

Bugle Boy (805-579-2339) recently opened a store at Lake Elsinore Outlet Center in Lake Elsinore, CA.

Brooks Brothers (212-827-6810) recently opened a 7,000 sq.ft. men's apparel store at SouthPark Mall in Charlotte, NC.

Books-A-Million (205-942-3737) plans to open as many as 25 superstores during 1996.

Caswell-Massey (212-486-4259) recently opened an 1,100 sq.ft. cosmetics store in Soho, NY. The company, which was founded in 1752, currently operates five units in Manhattan.

Kohl's Department Stores (414-783-5800) plans to open two department stores in Wichita, KS and units in Springfield, MO; Louisville, KY; Jackson, MI, Niles and Cleveland, OH. The stores will average 88,250 sq.ft. and are scheduled to open this spring. The company opened 18 stores in 1994 and 22 stores in 1995 throughout the Southeast and Midwest.

High Tech Burrito (415-456-0606) recently opened a 1,300 sq.ft. restaurant in Albany, CA and 1,044 sq.ft. and 1,277 sq.ft. units in Berkeley, CA. The company, which currently operates six restaurants, plans to open 10 additional units during 1996 throughout the greater San Francisco Bay area.

The Italian Oven (800-332-6836) plans to open company-owned restaurants in Peters Township, PA, North Huntingdon, PA and two in Columbus, OH during January.

Bruegger's Bagel Bakery (802-862-4700) recently opened a unit in Plano, TX through its franchisee Ciatti's, Inc. The company is also looking to open a unit in Dallas during January and another unit in Plano by December 1996. Ciatti's agreement calls for 30 units within the coming five years.

Federated Department Stores, Inc. (513-579-7905) plans to open a Bon Marche unit in Olympia, WA next year and a Macy's unit in Miami, FL next year.

Electronics Boutique (610-430-0383) recently opened its first non-mall store trading as Stop-n-Save Software at a strip center in Edgemont, PA. The 5,000 sq.ft. store features more than 7,000 software titles. The company is also looking to open a 10,000 sq.ft. combination store of Stop-n-Save and Brandywine Collectibles, a sports collectibles, comics and historical memorabilia store, during January in Springfield, PA and another unit during the fall. Electronics Boutique operates 529 stores throughout North America and the United Kingdom.

Wal*Mart (501-273-4000) plans to open a 127,000 sq.ft. unit at Meadowview Square Shopping Center in Ravenna Township, OH during October 1996.

Manhattan Bagel Company (908-544-0155) recently opened its first store in Columbus, OH through its franchisees Anthony and Michael D'Errico.

Shari's Management Corp. (503-641-6338) recently opened Shari's Restaurants in Aurora and Parker, CO while a unit is under construction in Thorton, CO. The company, which currently operates 88 restaurants, is planning to open as many as 40 units in the coming five years.

Pet Food Warehouse (612-542-0123) plans to open six units in the Minneapolis-St. Paul area and as many as five units throughout the upper Midwestern region during 1996.

Cole National Corporation (216-449-4100) recently opened an optical store in Yonkers, NY, the company's 1,000th store nationwide. The company trades as Sears Optical, Montgomery Ward Vision Center and BJ's Optical within host stores and in freestanding stores as Sears Optical.

Lease Signings

The Sansone Group, Inc. (314-822-9009) leased 2,000 sq.ft. to Gateway Cleaners and 1,600 sq.ft. to Professional Opticians of Florissant at Dierbergs Clocktower Place in St. Louis, MO.

Great Mall of The Bay Area (408-945-4022) leased 3,608 sq.ft. to Star Force, 3,851 sq.ft. to The Sharper Image Outlet and 52,171 sq.ft. to Totally 4 Kids at Great Mall of The Bay Area in Milpitas, CA.

Property Resources (919-831-9090) leased 54,000 sq.ft. to Henredon Furniture Industries in a former Rose's space at Beacon Plaza in Raleigh, NC.

Western Investment Real Estate Trust (916-791-0600) leased 9,800 sq.ft. to Q-Zar of CA at Skypark Plaza Shopping Center in Chico, CA.

Grubb & Ellis (714-937-0881) leased 12,240 sq.ft. to Planet Kids, Inc. at Tustin & Katella Plaza West in Orange, CA.

Summit Realty and Development Corp. (407-889-5700) leased 2,500 sq.ft. to Fischer & Schemmer, MD, PA/Bartow Eye Clinic in Bartow, FL.

The Goldstein Group (201-703-9700) leased 31,000 sq.ft. to T.J. Maxx at Interstate Shopping Center in Ramsey, NJ.

Torode Realty Ltd. (403-428-8501) leased 8,381 sq.ft. to SAAN Stores and 4,421 sq.ft. to Warehouse One at Beverly Shopping Centre in Edmonton, Alberta, Canada; 6,809 sq.ft. to Liquor Barn, 2,250 sq.ft. to Regional Laboratory, 6,000 sq.ft. to Roger's Video and 3,500 sq.ft. to a day care center at Heritage Shopping Centre in Edmonton, AB; 1,547 sq.ft. to Koffee Cafe, 1,510 sq.ft. to Flowers in the Park, 1,170 sq.ft. to Panagopoulous Pizza, 1,500 sq.ft. to Rustic Charms and 1,417 sq.ft. to Arizona Tanning at Strathcona Station Shopping Centre in Sherwood Park, AB.

Mertz Corporation (609-234-9600) leased 5,888 sq.ft. to Video Update at Mayfair Shopping Center in Philadelphia, PA.

Glimcor Realty Ltd. (412-765-8079) leased space to Fuddruckers for restaurants in Harmarville and Greensburg, PA.

Koll (312-894-1010) leased 4,465 sq.ft. to Karen Clothing and Coat Co. and 955 sq.ft. to Color Magic at Sanders Court Shopping Center in Northbrook, IL; 3,000 sq.ft. to Bev's Hallmark Shop, 2,064 sq.ft. to Sally Beauty Salon and 1,800 sq.ft. to McDonald's Express at Hinsdale Lake Commons in Willowbrook, IL; 2,400 sq.ft. to Once Upon A Child, 1,459 sq.ft. to Uhlemann Optical and 5,192 sq.ft. to N.D. Video at Market Meadows in Naperville, IL and 1,065 sq.ft. to Mail Boxes Etc. and 1,373 sq.ft. to Travel Agent International at Iroquois Center in Naperville, IL.

Kaiserman Management Company, Inc. (215-546-2665) leased 4,000 sq.ft. to Boston Market and leased space to St. Jude Shop and Manhattan Bagel at Barclay Farms Shopping Center and Office Pavilion in Cherry Hill, NJ.

LaSalle Partners (203-275-6100) leased space to Baubles Bangles 'n Beads at Civic Center Mall in Hartford, CT.

CB Commercial Real Estate Group (708-948-6903) leased 9,521 sq.ft. to Family Dollar Stores at Grand Plaza in Franklin Park, IL.

Neal*Mannausa, Inc. (941-365-1511) leased 1,095 sq.ft. to Patchington's at Avenue of Flowers Shopping Center in Longboat Key, FL.

Financial News...

Smith's Home Furnishing (503-222-7558) recently converted its Chapter 11 bankruptcy to a Chapter 7 liquidation at its remaining nine stores.

Eckerd Corporation (813-399-6355) reported that its third quarter sales increased 11.7% to $1.165 billion. Pharmacy sales increased 18.3% and non-pharmacy sales increased 4.4% over last year's results. Comparable store sales increased 10.2% during the quarter. The company currently operates more than 1,700 drugs stores in 13 states and more than 500 Eckerd Express one-hour photo stores in nine states.

Cato Corporation (704-554-8510) reported that sales for its third quarter fell three percent to $105.8 million compared to $109.1 million during the same period last year. Comparable store sales fell eight percent for the quarter. The company currently operates 671 units trading as Cato Fashion/Cato Plus and It's Fashion! in 22 states.

Venture Stores, Inc. (314-281-7800) reported that its third quarter sales fell 4.1% to $444.6 million compared to $463.6 million during the same period last year. Comparable store sales for the quarter fell eight percent. The company, which operates 115 stores in nine states, plans to reposition itself as a value-oriented family store beginning in the first quarter of 1996.

The Dress Barn, Inc. (914-369-4600) reported that its first quarter sales, ended October 28, increased six percent to $137.4 million compared to $129.9 million during the same period last year. However, comparable store sales fell four percent. The company currently operates 776 units in 43 states.

Ernst Home Centers, Inc. (206-621-6700) reported that sales for fiscal year 1995, ended October 28, increased 8.5% to $572 million, but that comparable store sales fell 4.6%. During its fiscal year, the company opened 24 superstores and closed eight of its base stores. Recently, the company completed the roll-out of its new homestyles department, which includes specialty kitchen and bath items, floor coverings, domestics, storage systems and home decor products, at its stores.

Loehmann's (718-409-2000), which operates more than 80 off-price apparel stores, is planning to go public.

The May Department Stores Company (314-342-6300) reported that its net earnings for the third quarter decreased to $135 million compared to $139 million during the same period last year. Third quarter sales increased 7.4% to $3.08 billion compared to $2.86 billion last year. During the quarter, the company opened 31 department stores and 25 Payless Kids expansion stores. During the first nine months of 1995, the company has opened 147 Payless ShoeSource stores. Currently, the company operates 344 department stores and 4,582 Payless stores.

Edison Brothers Stores, Inc. (314-331-6000) recently filed for Chapter 11 Bankruptcy protection listing assets of $992.7 million and liabilities of $608.7 million. The company, which operates more than 2,700 stores, plans to close at least 500 stores and sell its Time-Out/Space Port mall-based entertainment centers. The company also plans to merge its Jeans West stores with its Oaktree stores. The company also operates stores under the tradenames J. Riggins, Zeidler & Zeidler, 5-7-9 Shops, Repp Ltd., Spirale, Wild Pair, Bakers and Leeds.

MacFrugal's Bargains-Close Outs, Inc. (310-761-4167) reported that its third quarter total sales decreased 3.9% to $152.379 million compared to $158.549 million during the same period last year. Comparable store sales for the quarter fell 11.9%. The company currently operates 303 discount stores trading as MacFrugal's Bargains-Closouts and Pic 'N Save in 16 states.

Phar-Mor, Inc. (216-746-6641), which emerged from bankruptcy during September, reported that its first quarter sales, ended September 30, decreased 7.6% to $254.8 million compared to $275.7 million last year. The company currently operates 102 discount drug stores.

General Nutrition Companies, Inc. (412-288-4621) reported that its systemwide sales for the third quarter increased 30% to $213 million. Comparable store sales increased 12.2% at company-owned stores and 16.8% at franchised stores. The company currently operates 2,377 units nationwide and in 13 countries.

50-Off Stores, Inc. (210-805-9300) reported that third quarter net sales fell to $37.9 million compared to $45.2 million last year. Comparable store sales fell 12.8%. Currently, the company operates 102 off-price stores.

Stop & Shop Companies, Inc. (617-380-8000) reported that sales during its third quarter increased 5.5% to $901.159 million compared to $854.566 million last year. Comparable store sales for the quarter increased one percent. The company currently operates 107 Stop & Shop supermarkets, 51 Purity supermarkets and 64 Li'l Peach convenience stores.

Claire's Stores, Inc. (305-433-3900) reported that its third quarter sales increased 15% to $79.835 million compared to $69.5 million during the same period last year. Comparable store sales increased five percent. The company currently operates 1,301 women's fashion accessories stores under the tradenames Claire's, Claire's Boutiques, Claire's Accessories, Dara Michelle and Topkapi in 48 states, Canada, the Caribbean and Japan.

Musicland Stores Corporation (612-932-7700) recently announced that it plans to file a registration statement for an initial public offering of up to 49% of Suncoast Motion Picture Company. The offering is expected to be held during the first quarter of next year. Proceeds from the stock sale will be used to reduce debt and for further expansion. The company currently operates 403 Suncoast units in 46 states and Puerto Rico.

Today's Man, Inc. (609-235-5656) reported that its third quarter sales increased seven percent to $54.9 million compared to $51.1 million during the same period last year. However, the company reported a net loss of $4.1 million compared to net income of $220,800 last year. Comparable store sales declined 11% for the quarter. In other news, the company announced that it plans to postpone all new store openings during 1996. The company currently operates 35 menswear superstores and one outlet store along the East Coast and in the Midwestern region.

Lead Sheet

Windsor Fashions, Inc.

dba Windsor Fashions

Leon Zakaria

3901 South Broadway

Los Angeles, CA 90037

213-232-8121, Fax 234-3970

Apparel

The 25-unit chain operates locations in CA and NV. The stores, selling junior ready-to-wear apparel and accessories, occupy spaces of 5,000 sq.ft. in regional malls. Growth opportunities are sought in CA.

Bridgewater Auto Body, Inc.

dba Bridgewater Auto Body

c/o L.E. Keller

Keller & Co., Inc.

56 Rt. 173 West

Hampton, NJ 08827

908-730-8744, Fax 735-6553

Automotive

The three-unit chain operates locations in NJ. The automotive body repair shops occupy spaces of 4,000 sq.ft. to 6,000 sq.ft. in freestanding facilities. Preferred locations are primary US or state roads having a daily traffic count of at least 15,000 vehicles. Plans call for as many as 15 openings in the coming 24 months. Expansion will take place in central and northern NJ as well as eastern PA. The company will either purchase its sites or sign a lease running 10 years with four options running five years each.

Comp USA

James Goold

14951 North Dallas Parkway

Dallas, TX 75240

214-982-4488, Fax 982-4600

Computers

The 88-unit chain operates locations nationwide. The computer stores occupy spaces of 26,000 sq.ft. in freestanding facilities and strip centers. Plans call for as many as 30 openings in the coming 18 months. Expansion will take place nationwide.

The Markettes

A.C. West, Jr.

PO Box 729

Hartsville, SC 29550

803-332-2201, Fax 383-0190

Convenience

The 15-unit chain operates locations in NC and SC. The convenience stores occupy spaces of 2,000 sq.ft. in freestanding facilities. Plans call for one opening in the coming 18 months. Expansion will take place in SC.

Rainbow Marketers, Inc.

dba Rainbow Marketers

Brad Lemoine

PO Box 54045

Lafayette, LA 70505

318-235-5098, Fax 235-5067

Convenience

The 18-unit chain operates locations in LA. The convenience stores occupy spaces of 2,000 sq.ft. in freestanding facilities. Preferred locations are corner lots. Plans call for three openings in the coming 18 months. Expansion will take place in the existing market.

Namco Cybertainment, Inc.

dba Aladdin's Castle, Cyber Station

Richard Adams

877 Supreme Drive

Bensenville, IL 60106

708-238-2202, Fax 238-0560

Entertainment

The 343-unit chain operates locations nationwide. The game rooms occupy spaces of 2,500 sq.ft. to 30,000 sq.ft. in regional malls. Growth opportunities are sought nationwide.

Gold Coast Brewing Co.

Tim Cox

c/o Parker & Associates, Inc.

3991 MacArthur Boulevard/ Suite 125

Newport Beach, CA 92660

714-859-3116, Fax 851-5168

Food

The one-unit chain operates a location in Southern CA. The brew pub occupies a 6,500 sq.ft. space in a downtown location. Growth opportunities are sought in the existing market. The company is looking for spaces between 5,000 sq.ft. and 8,000 sq.ft. beginning in June 1996.

Huish Family Fun Centers

dba Bullwinkles Restaurants

Cort Huish

33208 Paseo Cervesa/ Suite C

San Juan Capistrano, CA 92675

714-493-5222, Fax 493-5298

Food

The six-unit chain operates locations in CA and OR. The restaurants, which also have family fun centers, occupy spaces of 10,000 sq.ft. to 25,000 sq.ft. in freestanding facilities and in-line spaces at strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the western region.

Western Bagel

Erik Dahl

7814 Sepulveda Drive

Van Nuys, CA 91405

818-786-5847, Fax 787-3221

Food

The eight-unit chain operates locations in Southern CA. The bagel stores, which also sell gourmet coffee, sandwiches and pastries, occupy spaces of 2,000 sq.ft. in freestanding facilities and strip centers. Space is also needed for outside seating areas. Plans call for 15 openings in the coming 18 months. Expansion will take place in the existing market.

Leather Center

Paul Miller

2724 Realty Road

Carrollton, TX 75006

214-418-0073, Fax 416-3022

Furniture

The 38-unit chain operates locations nationwide. The stores, selling upholstered leather furniture and furnishings, occupy spaces of 7,000 sq.ft. in power and strip centers. Plans call for five openings in the coming 18 months. Expansion will take place nationwide.

Consumerhealth, Inc.

dba Newport Dental

Deborah McCarthy

1401 Dove Street/ Suite 290

Newport Beach, CA 92660

714-752-8522, Fax 833-9172

Health

The 15-unit chain operates locations in CA. The dental care units occupy spaces of 2,000 sq.ft. to 3,000 sq.ft. in freestanding facilities and power centers. Plans call for as many as six openings in the coming 18 months. Expansion will take place in the existing market.

Quick Weight Loss Centers, Inc.

dba Quick Weight Loss

David Vender

128 Fayette Street

Conshohocken, PA 19428

610-825-7494, Fax 825-9294

Health

The 50-unit chain operates locations in CT, FL, NJ, NY and PA. The weight loss centers occupy spaces of 1,200 sq.ft. in strip centers. Preferred anchors include supermarkets. Growth opportunities are sought in NJ, PA and the metropolitan New York City area.

Norfolk Paint Company, Inc.

dba Norfolk Paint Company

Nick Wright

1373 Ingleside Road

Norfolk, VA 23502

804-853-4371, Fax 853-6838

Home Center

The eight-unit chain operates locations in VA. The stores, selling paint, carpet, wall coverings and window treatments, occupy spaces of 4,000 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. The company is seeking sites ranging in size from 4,500 sq.ft. to 5,000 sq.ft. in strip centers or freestanding buildings with parking for 20 cars.

Wickes Lumber Company

Cary Owens

706 Deerpath Drive

Vernon Hills, IL 60061

708-367-3400, Fax 367-3765

Home Improvement

The 128-unit chain operates locations in 24 states. The home improvement stores occupy spaces of 53,300 sq.ft. in freestanding facilities. Growth opportunities are sought through acquisitions.

Daddy's Junky Music Stores

Fred Bramante

PO Box 1018

Salem, NH 03079

603-893-4057, Fax 893-3517

Music

The 13-unit chain operates locations in CT, MA, ME and NH. The music stores, selling musical instruments, occupy spaces of 4,000 sq.ft. to 6,000 sq.ft. in strip centers. Plans call for the opening of four units in the coming 18 months. Expansion will take place in the Northeastern region. Preferred demographics include a population of 250,000 within 10 miles. Leases running five years with options are typical.

Pet Pourri, Inc.

dba Pet Commissary

Joseph Haddad

238 Passaic Avenue

Fairfield, NJ 07006

201-575-7379, Fax 575-1449

Pet Store

The three-unit chain operates locations in NJ and PA. The pet stores occupy spaces of 2,000 sq.ft. in freestanding facilities. Growth opportunities are sought in NJ. The company is looking for spaces between 4,000 sq.ft. and 7,000 sq.ft.

Worldwide Shoes, Inc.

dba Shoe Barn, Battaglia

Paul Hanna

360 Miracle Mile

Coral Gables, FL 33134

305-461-1193, Fax 461-2995

Shoes

The eight-unit chain operates locations in FL. The stores, selling men's and women's shoes and accessories, occupy spaces of 1,400 sq.ft. to 2,000 sq.ft. in regional malls, specialty and strip centers. Plans call for two openings in the coming 18 months. Expansion will take place in the existing market.

Kidscource

Blair Hyatt

1001 Yamato Road/ Suite 301

Boca Raton, FL 33431

407-995-8444, Fax 995-0091

Specialty

The three-unit chain operates locations in FL. The stores, selling apparel, footwear, furniture, accessories, educational material, crib and playpen toys, books, tapes, software, party supplies and commodities for children infant through eight-year-old, occupy spaces of 38,000 sq.ft. in power centers and regional malls. Plans call for as many as seven openings during 1996 and as many as 10 openings annually thereafter. Expansion will take place in the Eastern region.

Outdoors Limited

Eugene Spegar

PO Box 803

Uniontown, PA 15401

412-439-2525, Fax 439-7669

Sporting Goods

The two-unit chain operates locations in PA and WV. The stores, selling outdoor sporting goods equipment, ski clothing and limited summer casual wear, occupy spaces of 7,500 sq.ft. in freestanding facilities. Growth opportunities are sought in PA.

Randall Stores, Inc.

dba Cub, Country Markets

William Bell

101 West 23rd Avenue

Mitchell, SD 47301

605-996-7511, Fax 996-1167

Supermarket

The 32-unit chain operates locations in IA, IL, MN, WI, NE, KS and SD. The supermarkets occupy spaces of 50,000 sq.ft. to 70,000 sq.ft. in freestanding facilities and strip centers. Plans call for one opening in the coming 18 months. Expansion will take place in IA.

Smitty's Super Valu, Inc.

dba Smitty's

David La Bau

2231 East Camelback Road/ Fourth Floor

Phoenix, AZ 85016

602-801-1000, Fax 801-9011

Supermarket

The 28-unit chain operates locations in AZ. The supermarkets, which also offer pharmacy services, soft goods and hard lines, occupy spaces of 105,000 sq.ft. in freestanding facilities and strip centers. Plans call for three openings in the coming 18 months. Expansion will take place in the existing market. The company is looking for spaces of approximately 70,000 sq.ft.

Liberty Travel, Inc.

dba Liberty Travel

Richard E. David

69 Spring Street

Ramsey, NJ 07446-1198

201-934-3615, Fax 934-3888

Travel Agency

The 180-unit chain operates locations in NY, NJ, PA, DE, MA, CT, RI, NH and FL. The stores, offering a full line of travel services, occupy spaces of 1,000 sq.ft. to 1,200 sq.ft. in freestanding facilities and end caps of strip centers. Plans call for 15 openings in the coming 12 months. Expansion will take place throughout the existing markets as well as western PA.

The Musicland Group, Inc.

dba Suncoast Motion Picture Company

Bruce Bausman

10400 Yellow Circle Drive

Minnetonka, MN 55343

612-932-7700, Ext. 8052, Fax 931-8300

Video

The 406-unit chain operates locations nationwide. The stores, selling videos, cassette tapes and compact discs, occupy spaces of at least 2,500 sq.ft. in regional malls. Plans call for 50 openings in the coming 18 months. Expansion will take place nationwide.

Buyers & Sellers of Commercial Properties

Hills Department Stores is selling its 80,000 sq.ft. store at Kanawha Mall in Charleston, WV. The site includes the building and approximately 5.5 acres of land. Hills will continue to occupy the building under a lease agreement to be negotiated. The mall is co-anchored by Gabriel Brothers and Stone & Thomas. A Kroger supermarket is located adjacent to the site.

For more information, contact Don Orlando at (412-378-0511, Ext. 321), Fax (378-4250).

Price Associates has the listing to sell Fairway Plaza in Evergreen Park, IL. The 24,812 sq.ft., 100% leased project is located on an outparcel of a Sam's Club and located across from a 1.2 million sq.ft. regional mall. The asking price is $3.15 million.

For more information, contact Jim Ehrlich at (312-641-1800), Fax (332-5820).

Ray Wilkerson Companies, Inc. has the listing to sell Southpark in Greenville, NC. The 7.57-acre, 100% occupied project is anchored by Food Lion, Revco and Advanced Auto. The asking price is $2.75 million. The company has the listing to sell Macon Plaza in Franklin, NC. The 82,474 sq.ft., 75% occupied project is anchored by Roses, Bi-Lo, Rite-Aid and Dollar General. The asking price is $3.5 million. The company has the listing to sell Richardson Plaza in Columbia, SC. The 10.94-acre, 92% occupied project is anchored by Food Lion. The asking price is $6 million. The company also has the listing to sell North 52 Square in North Charleston, SC. The 10-acre, 92% occupied project is anchored by Bi-Lo and Family Dollar. The asking price is $3.5 million. The centers are also part of a four-center portfolio.

For more information, contact Jeff Latimer at (512-458-5993), Fax (458-1648).

Standard Management Company is in the market to acquire shopping centers with asking prices above $10 million and located in the Midwestern and West Coast regions. Older projects and centers drawing a blue collar customer will be considered. All cash transactions are possible.

For more information, contact Gary Goodman at (310-410-2300, Ext. 314), Fax (410-2919).

SF Properties, Inc. is in the market to acquire retail properties or land at well located intersections in NC, NE and PA.

For more information, contact Gerald Cohen at (617-277-0400, Ext. 112), Fax (277-7805).

Mariner Capital Management, Inc. has the listing to sell Villas Plaza in Fort Myers, FL. The 35,610 sq.ft. project has 337 ft. of frontage on U.S. 41 and approximately 220 parking spaces. The asking price is $2.615 million. The company has the listing to sell Pinebrook Commons in Bradenton, FL. The 33,334 sq.ft. project is located adjacent to a Frank's Nursery and Craft Center. The asking price is $3.1 million with $2.55 million of financing possible. The company has the listing to sell Manatee West in Bradenton, FL. The 49,369 sq.ft. project adjoins an Albertson's Grocery Store. The asking price is $3.9 million. The company has the listing to sell the 26,660 sq.ft. Heritage Square in Marco Island, FL. The asking price is $2.2 million. The company also has the listing to sell Edison Square in Fort Myers, FL. The 39,600 sq.ft. project is located on 3.45 acres of land and contains 216 parking spaces. The asking price is $3.5 million with $1.7 million of an assumable mortgage possible.

For more information, contact Lawrence A. Raimondi at (941-437-0555, Ext. 110), Fax (481-8283).

MEPC American Properties, Inc. plans to acquire the 1.4 million sq.ft. Regency Square Mall in Jacksonville, FL, the 1.1 million sq.ft. Valley Plaza Mall in Bakersfield, CA, the 478,000 sq.ft. McCreless Mall in San Antonio, TX and Riverlands Shopping Center in New Orleans, LA from North American Property Unit Trust for $295 million. The deal also includes part ownership of an office building in Manhattan, NY. The deal is expected to close by the end of the year.

For more information, contact David Gruber at (214-980-5000).

Cohen and Co., Inc. Real Estate represents clients in the market to purchase shopping centers in Canada.

For more information, contact Helen Putterman at (212-679-1222), Fax (679-1533).

LRA Realty Advisors, Inc. represented First Washington Realty Trust, Inc. in its purchase of Kenhorst Plaza Shopping Center in Reading, PA. The 137,000 sq.ft. project is anchored by Redner's Warehouse Supermarket. Also included in the purchase was a parcel land which will allow expansion of the center by 30,000 sq.ft. The purchase price was $11 million.

For more information, contact Robert Rush at (215-957-1999), Fax (957-6570).

First Atlantic Realty, Inc. has the listing to sell a 17,500 sq.ft. building in East Orange, NJ. The site can also be leased.

For more information, contact First Atlantic Realty, Inc. at (212-315-4444), Fax (315-5214).

David Kaufman & Company will host an auction of Ashwaubenon Plaza in Ashwaubenon, WI. The 211,642 sq.ft. project is anchored by OfficeMax, SuperValu, Discovery Zone and Dunham's Sports. The auction will be held December 14 in Chicago, IL.

For more information, contact Joseph Griese at (800-858-5700).

Harry M. Green Interests, Inc. has the listing to sell a 71,634 sq.ft. shopping center in Freeport, TX. The 93% leased project is anchored by Kroger, Eckerd Drug and Weiners. The asking price is $1.93 million and financing is possible. The company also has the listing to sell a 78,547 sq.ft. shopping center in Angleton, TX. The 90% leased project is anchored by Eckerd Drug and Dollar General, both of which pay percentage rent. The asking price is $1.995 million and financing is possible.

For more information, contact Clifton Love at (713-771-7000), Fax (771-1513).

Horizon Properties has the listing sell a 20,000 sq.ft. former Winn-Dixie in Hollywood, FL. The asking price is $1.25 million. The company is also in the market to acquire retail properties in FL. Projects can be anchored or unanchored.

For more information, contact Joel Benes at (305-350-9944), Fax 371-2621).

RD Capital, Inc. is in the market to acquire supermarket anchored shopping centers in SMSA's with a population of at least 100,000.

For more information, contact Eric Newberg at (212-421-8830), Fax (421-2290).

Allen Fuller Co. Realtors has the listing to sell NNN leases of properties located in FL, MA and TX. Leases are held by companies listed on the NYSE and NASDAQ, are a minimum of 10 years and have a minimum 9% cap. Some leases have a 10% cap with increases. Asking prices begin at $800,000. The company is the market to acquire single tenant net leases and long term NNN leases of credit tenants. Companies holding leases of interest include Wal*Mart, Walgreens, Eckerd and Barnes & Noble.

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

Peter Schweitzer & Associates, Inc. is in the market to acquire retail properties in FL. Preferred properties have GLAs between 20,000 sq.ft. and 100,000 sq.ft., are well located and have upside potential. Properties with vacancies will be considered.

For more information, contact Peter J. Schweitzer at (954-975-7553), Fax (975-7663).

Castle Partners, Inc. is in the market to acquire stable income producing properties and sites that offer the ability to create value through renovation, additional leasing and/or additional development. The company will consider regional, anchored and neighborhood strip centers or freestanding, single tenant net leased properties.

For more information, contact Andrew Hirschberg at (908-719-0019), Fax (719-2888).

Cameron Real Estate Services, Inc. has the listing to sell Color Tile Center in Fort Myers, FL. The 9,840 sq.ft. project is anchored by Color Tile and two other tenants all having NNN leases. The asking price is $892,000 and financing is possible. The company has the listing to sell Lakewood Plaza in Naples, FL. The 24,724 sq.ft. project is 100% leased to tenants having NNN leases. The site fronts U.S. 41. The asking price is $1.985 million. The company has the listing to sell a 3,944 sq.ft. retail center in North Fort Myers, FL. The asking price is $190,000. The company also has the listing to sell a six-unit strip center in Cape Coral, FL. The site fronts Del Prado Boulevard, the major north/south route in the town. The asking price is $637,000.

For more information, contact Pamela Van Vleck at (941-277-1111), Fax (277-0536).

Mid-America Real Estate Group brokered the sale of Nantucket Square Shopping Center in Schaumburg, IL. The 121,489 sq.ft. project is anchored by Jewel/Osco and Super Trak Auto. ORIX Real Estate Equities, Inc. sold the property to Inland Real Estate Investors. The purchase price was not disclosed, but the asking price was listed at $4.8 million.

For more information, contact Michael George, Stanley Nitzberg or Michael Dillon at (708-954-7300).

Prudential Golden Key Realty has the listing to sell a 7,500 sq.ft. retail building in Somerset, NJ. The project is located on a 1.83 acre corner lot. The asking price is $950,000. The company also has the listing to sell seven acres of land zoned retail in Mystic Island. The asking price is $450,000.

For more information, contact Charles Faherty at (908-873-8639), Fax (469-6847).

Shea Commercial Properties, Inc. has the listing to sell an 11,200 sq.ft. convenience strip mall in Pelham, NH. The project is divided into four units which are presently occupied by a convenience store, bakery/deli and restaurant/cafe. The asking price is $575,000.

For more information, contact Harry Shea at (603-893-7663), Fax (894-1977).