CoStar's weekly column covering expansions, new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales, loans, shopping center development activity, personnel changes, sustainability, green building, and more in retail real estate.
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| Expect to see more JoS. A. Bank stores open up next year |
This week in the Retail Roundup, CoStar reports on
expansions or new concepts at JoS. A. Bank and Forever 21;
new retail development news in MD and MI;
acquisition, merger, loan, sale, or IPO activity at Stonemason Partners;
closings, cutbacks, defaults, or bankruptcy news at Bulgari;
personnel or corporate announcements at NAI Earle Furman;
sustainability and green building news at Denny's; and more.
Did you miss last week's CoStar Advisor national retail story, A Not-So-Long Road to Recovery for Retail Real Estate? If so, click here to read the story
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@CoStar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.
EXPANSIONS / NEW CONCEPTS
JoS. A. Bank to Open Up to 40 New Stores in 2010
Hampstead, MD-based men's apparel retailer, JoS. A. Bank Clothiers (Nasdaq:
JOSB), is accelerating its store expansion program in 2010. The company plans to open 30 to 40 new stores in fiscal 2010, as compared to its expectation to open between 10 to 15 new stores during the full year of 2009. In this announcement, JoS. A. Bank said it has opened 350 of its 467 stores (now in 42 states) in the past ten years alone -- its long term plan is to operate 600 stores in this country.
R. Neal Black, president and CEO of JoS. A. Bank commented, "Quality real estate opportunities are beginning to open in the marketplace and we are ready to expand our store base at a more rapid rate. We believe we are poised to take advantage of these opportunities...We have a proven ability to open 60 stores a year and these future store openings will put us back on the track we were on prior to the national economic crisis.”
In 2008, the JoS. A. Bank's new stores averaged 4,110 square feet.
Forever 21 Announces Six New Stores at GGP Malls; Retailer Continues to Backfill Vacant Department Stores
General Growth Properties ("GGP") announced that Forever 21 recently executed leases to open six new stores, totaling 580,000 square feet, at GGP malls.
Specifically, these six new stores in GGP malls are planned to open in 2010 at Baybrook Mall in Friendswood, TX; The Woodlands Mall in Woodlands, TX; the North Star Mall in San Antonio, TX; the Mall St. Matthews in Louisville, KY; the Fashion Show Mall in Las Vegas, NV; and the Riverchase Galleria in Birmingham, AL.
With an average store size of 96,666 square feet for these new stores, Forever 21 is at the very top of the size range for its current store fleet -- according to CoStar Tenant, its current average store size is just over 11,500 square feet. Forever 21 calls these large format stores "fashion department stores."
According to the Los Angeles-based retailer's website, aside from these new GGP leases, six new Forever 21 stores are scheduled to open soon at the Los Cerritos Mall in Cerritos, CA; Inland Center in San Bernardino, CA; Legends @ Sparks Marina in Sparks, NV; West Towne Mall in Madison, WI; Scottsdale Fashion Square in Scottsdale, AZ; and Stonestown Galleria in San Francisco, CA. Additionally, eight new Forever XXI stores are on track to open at the Cross County Shopping Center in Yonkers, NY; Dallas Galleria in Dallas, TX; Burlington Mall in Burlington, MA; Fox Hills Mall in Culver City, CA; Kings Plaza Mall in Brooklyn, NY; Metropolis @ Metrotown in Burnaby, AL; Barton Creek Square in Austin, TX; and Potomac Mills in Prince William, VA. Aside from these stores, CoStar Tenant records show that Forever 21 has moved into at least ten new stores already this year.
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@costar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.
NEW SUPPLY
Faison / Atapco Moving Forward on Clemson Corner Shopping Center
Charlotte, NC-based Faison Enterprises, together with its Baltimore-based joint venture partner, Atapco Properties, recently announced that it completed funding arrangements and closed on the purchase of 37 acres of land in Frederick, Maryland to develop Clemson Corner Shopping Center. PNC Real Estate Finance provided the partnership with a $6.5 million initial loan facility that will convert into a full construction loan of $29.5 million.
This project has been in the works for a long time, as Faison spent five years annexing the property, located at the intersection of US Route 15 and Maryland Routes 26 and 355, into the City of Frederick.
The 380,000-square-foot shopping center will be anchored by a Wegman's supermarket, Lowe's Home Improvement Center, and Marshalls store. Additionally, about 57,000 square feet of small shop space is planned and Wachovia is set to open a bank on an outparcel of the center. Clemson Corner's grand opening is scheduled for spring 2011.
Ryan Wilner of KLNB Retail serves as the leasing agent for Clemson Corner.
Livonia Marketplace Breaks Ground in Detroit Area
Livonia Marketplace broke ground August 27th at the intersection of 7 Mile Road and Middlebelt in Livonia, MI. The site is being redeveloped by a group including Grand / Sakwa Properties, Lormax Stern Development and Konover South.
The property was once home to the Livonia Mall, which was an enclosed mall built in 1964. Following the closure of most of its anchor tenants, Konover shuttered the mall, with the exception of Sears and JoAnn Fabrics, on May 31, 2008. Demolition began in February 2009 and in July, JoAnn closed its store.
Walmart has signed on to open a Supercenter at the 325,000-square-foot shopping center. Aside from Walmart's building, five other multi-tenant buildings are on the drawing board for the 40-acre center. Livonia Marketplace's delivery is scheduled for the last half of 2010.
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@costar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.
ACQUISITION/MERGER/SALE/LOAN/IPO ACTIVITY
Stonemason Partners to Acquire $100M in Shopping Centers and Distressed Commercial Assets
Miami-based Stonemason Partners has completed its initial round of fundraising for a new investment fund ("Fund I"). With this fund, which Stonemason built up over the last year through securing numerous investors, the full service commercial real estate company plans to expand its portfolio of properties through the acquisition of more than $100 million worth of multi-tenant retail assets and distressed commercial property throughout the Southeastern and Eastern Seaboard states over the next four years.
Stonemason plans to acquire properties that are candidates for redevelopment, repositioning, and/or re-tenanting. Gustaf Arnoldsson, managing member of Stonemason, said the company plans to "capitalize on the current market conditions" and described its position as "bullish on the market opportunities" available. “We are in the beginning stages of a monumental shift in the market," Arnoldsson concluded in the press release.
Launched in June 2008, Stonemason has grown to have 15 property management accounts, however, it also owns a strip center, apartment building, and hotel in South Florida.
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@costar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.
CLOSINGS/CUTBACKS/BANKRUPTCIES/DEFAULTS
Bulgari Closing Some U.S. Stand-Alone Stores
Italian luxury jewelry company, Bvlgari S.p.A. ("Bulgari"), was established in 1884; but unfortunately, it's 125th anniversary year has not been so sweet, at least in the United States. The retailer's July 30th second quarter report revealed that Bulgari's U.S. sales were down 51.6% over the same quarter last year.
The latest news from Bulgari,
according to Women's Wear Daily, is that the company closed its jewelry stores in Palm Beach, FL and Aspen, CO, as well as its Madison Avenue store in New York City. However, it plans to open smaller, new stores in San Francisco, Las Vegas, and Dallas. According to CoStar Tenant, the retailer's stand-alone U.S. stores range 500 to 4,400 square feet.
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@costar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.
PERSONNEL ANNOUNCEMENTS
NAI Earle Furman Gains Retail Investment Specialist
Greenville, SC-based NAI Earle Furman recently hired Tim Roller as an investment specialist in its retail division. Roller started his commercial real estate career in 2005, working as a retail investment specialist for Anderson, SC-based McCoy Wright Realty, where he ended his time at the company as one of Anderson's top producing agents. Prior to that, he worked in software business development and consulting for Ahold Information Services and Prima Consulting for a period of eight years. Roller is a CCIM candidate.
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@costar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.
SUSTAINABILITY / GREEN BUILDING
Denny's Restaurant in Chicago Area Becomes LEED Certified
A Denny's franchisee has received LEED certification from the U.S. Green Building Council for a new restaurant on Plainfield Road in Joliet, IL. This is the first Denny's restaurant to receive LEED certification.
According to the
Chicago Tribune, the owner built the 150-seat restaurant for under $1 million, which is typical for a new, non-green Denny's. Building features that qualified the restaurant for LEED certification include a white reflective roof, skylights with mirrors built by Amish craftsmen, water-efficient fixtures and equipment, use of recycled materials in construction and design, energy-efficient appliances, motion-censored and energy efficient lights, and more. The franchisee touts that the restaurant costs $10,000 less per month to operate than his previous 20-year-old Denny's restaurant.
(Editor's Note: To keep up on happenings and trends in retail real estate, subscribe to CoStar's Retail News Roundup, a weekly column covering retailer expansions and new concepts, store closings, bankruptcies, cutbacks, acquisition, mergers, sales. new shopping centers, personnel changes, and sustainability. Follow this link for access to back issues of the roundup. In addition to appearing every week in the national news and retail news sections of our web site, you may also receive the Retail News Roundup for free via email by requesting to be added to the distribution list by contacting senior editor, Sasha Pardy at spardy@costar.com Also, click here to subscribe to CoStar's dedicated Retail RSS Feed.