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CoStar's Retail News Roundup: Jun. 21 to 27, 2009

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.
June 22, 2009
This week in the Retail Roundup, CoStar reports on expansions or new concepts at Aeropostale, Perry Ellis and Cubavera, and H-E-B; new retail development news in NV and NC; acquisition, merger, loan or sale activity at Jimmy Jazz and Man Alive, Filene's Basement, and Jack-in-the-Box; closings, cutbacks, defaults, or bankruptcy news at Eddie Bauer, Ruehl, E.J.'s Shoes, Extended Stay Hotels, and Bally Total Fitness; personnel or corporate announcements at Centro Properties Group and Sperry Van Ness; sustainability or green building news at Supervalu's Cub Foods; and more.


(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


Aeropostale Launches Its Own Tween Concept Store
Teen apparel retailer, Aeropostale, Inc. (NYSE: ARO), recently opened its first "P.S. from Aeropostale" store in the Palisades Mall in West Nyack, New York. The concept targets girls and boys ages seven to twelve, often referred to as "tweens" -- it’s a target market Aeropostale has yet to tackle -- its core brands targets 14 to 17 year-olds.

Following through on its previously announced plans to launch the concept this year, Aeropostale still intends to open a total of 10 P.S. stores this year. Most will be opened in the New York metropolitan area. If the concept's test phase is successful, Aeropostale sees a 500-store potential for P.S. in this country.

Perry Ellis Opens First Cubavera Store in Miami
Perry Ellis International (NASDAQ:PERY) recently opened its first stand-alone Cubavera store in the U.S. at the Miami International Airport. Perry Ellis describes Cubavera as a "one-stop destination for apparel, accessories and gifts with Latin flavor.” The 900-square-foot store works elements of Latin culture into the music, visuals, and merchandising at the store. The store is apparently a test, as the company has yet to announce more aggressive U.S. plans for the brand.

H-E-B One Step Closer on 50-Store Distribution Center in Temple, TX
San Antonio, TX-based grocery retailer, H-E-B, has completed its purchase of 160 acres of land planned for a new, 400,000-square-foot distribution center at Central Pointe and Wendland Road in northeast Temple, TX. The center is designed to serve 50 stores and employ 116 people. Philadelphia-based Bingswanger negotiated the deal between the Temple Economic Development Corporation and H-E-B.


(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


The Legends at Sparks Marina Now Open
Kansas City-based retail developer, RED Development, celebrated the opening of the first phase of The Legends at Sparks Marina in Sparks, Nevada last week. The $1.1 billion project will eventually encompass 1 million square feet of retail / restaurant / entertainment space. This first wave of Legends' tenants includes about 29 retailers and restaurants, but by the first week of August, about 47 tenants are expected to be open as part of the first phase.

First phase tenants already open include Scheels All Sports (295,000 sq. ft.), Saks Off 5th (28,000 sq. ft.), Target, Best Buy, Louisiana Kitchen, Olive Garden, Samsonite Factory Outlet, Easy Spirit, Nine West Outlet, Ann Taylor Factory, Bose Factory Store, Banana Republic Factory Store, BCBG Max Azria, GAP Outlet, Tommy Hilfiger, OshKosh B’Gosh, Carter’s, Gymboree Outlet, BCBGirls, Vans, GUESS Factory Store, Bath & Body Works, Jones New York, Kasper, Nike Factory Store, GameStop, Lucky Nails, and GNC. By early August, Off Broadway Shoe Warehouse, Subway, Sprint, Freshberry, Converse, Harry & David, Volcom, Adidas, Lane Bryant, Fuddrucker’s, Rack And Pinz bowling, Cadillac Ranch, Grimaldi’s Coal Brick Oven Pizza, Styles For Less, Old Farmer’s Almanac, and Kenneth Cole are expected to open. As part of the second phase, a 13-screen IMAX theatre and three more restaurants are expected to join the ranks.

Central to the project is the 135-foot Legends Tower, which features an eight-lane bowling alley at its base and a western-style steakhouse, dubbed Cadillac Ranch, on the second floor. The Legends also boasts several sculptures of historical figures from the region. Other features include a 65-foot ferris wheel that is part of the Scheels sports store, waterfalls, water fountains, mist pools and outdoor fireplaces.

The property is also planned to include an 1,000-room upscale casino resort developed by Las Vegas-based Olympia Gaming, but that's been halted until sufficient capital can be raised. RED estimates that the combined development will draw more than 800,000 tourists to the Reno-Sparks area and generate $600 million in taxable sales annually.

Paramount Development Completes East Park Plaza
According to CoStar Property Professional, a new 250,000-sqare-foot community shopping center was recently completed in Johnston County, NC. Anchored by an 184,146-square-foot Wal-Mart Supercenter, East Park Plaza is located at the corner of I-40 and Highway 42 in Garner.

Paramount Development Corporation's site plan for the project shows Wal-Mart flanked by a 27,000-square-foot building set to house six tenants to the east, and a 15,000-square-foot building to the north planned to house eight small shop tenants along Highway 42.


(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 ACTIVITY


Jimmy Jazz to Acquire Finish Line's Man Alive and Decibel Stores
Footwear and active apparel retailer, The Finish Line (Nasdaq: FINL), has reached a deal with Man Alive Acquisition, LLC ("MA") an entity controlled by Jimmy Khezrie, the owner and operator of Jimmy Jazz stores, to assume certain assets and liabilities associated with its street wear apparel banner, Man Alive banner.

Calling the Man Alive chain "unprofitable", Finish Line CEO, Glenn Lyon, said the company is exiting the Man Alive business to focus on its core Finish Line stores. During fiscal 2008, Finish Line closed nine Man Alive stores, leaving it with 82 stores as of Apr. 18, 2009 -- the company had planned to close another 10 to 20 stores by Feb. 27, 2010.

Under terms of the agreement, MA will acquire 75 Man Alive and Decibel retail stores and associated intellectual property, from Finish Line for $7 million. When the transaction closes in early July, the Finish Line will be left with 685 of its namesake stores in 47 states.

Lyon described Jimmy Jazz as "an established and growing leader in the urban apparel market." Brooklyn-based Jimmy Jazz currently operates more than 80 stores at major street retail locations and regional malls throughout the U.S. -- 30 of its stores are located in the New York metro area. The company intends to continue operating the acquired stores under the Man Alive and Decibel banners.

The Man Alive stores average 3,461 square feet each and are located in AL, FL, GA, IL, IN, KY, LA, MD, MI, MN, MS, NC, OH, OK, PA, SC, TN, TX, and VA.

Jack-in-the-Box Secures Unidentified Buyer for its Quick Stuff C-Store/Gas Chain
Fast food operator, San Diego-based Jack in the Box Inc. (NYSE: JBX), announced a plan last October to exit its convenience store business by selling its chain of 61 Quick Stuff convenience / gas stations. Now, nearly eight months later, Jack-in-the-Box has secured a buyer. The company entered into a purchase agreement with an unidentified buyer that has agreed to acquire 55 of the 61 stores, which are primarily located in California and Texas. Each station is adjacent to a Jack-in-the-Box restaurant -- these are not being sold as part of the deal. The deal is expected to close by Sept. 27, 2009.

Vornado and Syms Partner to Save Iconic Retailer Filene's Basement
On June 15, Syms, in a joint venture with high-profile landlord, Vornado Realty Trust, prevailed at the second Filene's Basement bankruptcy auction with a $62.4 million bid. On June 17, a bankruptcy judge approved the sale to the duo. The deal includes the leases for 23 Filene's Basement stores, its trade name, inventory and distribution center. Click here to read the full 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.





CLOSINGS/CUTBACKS/BANKRUPTCIES/DEFAULTS


Eddie Bauer Files Bankruptcy; Private Equity Comes Through With $220M Offer to Keep Two-Thirds of Stores Open
Eddie Bauer, outdoor apparel and accessories retailer with a rich, 89-year history and 371 stores in the U.S. and Canada, filed bankruptcy on June 17, 2009 at both U.S. and Canadian courts. The company listed approximately $476 million in assets and $427 million in liabilities in the filing.

Simultaneously, Eddie Bauer said a purchase agreement was reached with CCMP Capital Advisors to buy the company's assets at bankruptcy auction for $202 million. According to Crain's Chicago, CCMP has committed to keeping only 250 Eddie Bauer stores open. For the full story, click here.

Abercrombie & Fitch Liquidating 29-Store Ruehl Chain
Specialty apparel retailer, Abercrombie & Fitch (NYSE: ANF ) is discontinuing its Ruehl division. The retailer is closing all of its 29 Ruehl stores by the end of 2009.

Abercrombie launched the Ruehl brand in late 2004, targeting post-grads aspiring for a New York City lifestyle that embrace culture and art; the apparel is described as "casual, authentic, cool, sexy and sophisticated." Abercrombie opened 13 Ruehl stores during 2007 and 2008 combined and opened one store during 2009, as planned. As of the end of 2008, the average Ruehl store was 9,357 square feet. For the full story click here.

E.J.'s Shoes Files Bankruptcy; 12 Stores in Danger of Closing
St. Louis-based shoe retailer, E.J.'s Shoes, filed Chapter 11 last week. The company listed assets between $500,000 and $1 million and liabilities between $10 million and $50 million in its filing. E.J.'s was formerly known as "Famous Brand Shoes," a banner it sold to Brown Shoe Company in 2007.

Forty-year old E.J.'s currently operates E.J.'s Designer Shoe Outlet stores in MO (2), AZ (4), and CA (1), as well as eight stores under the Shoe Cents banner in the Houston, TX area. The company warned that its stores in Texas and Arizona would close unless it is successful in renegotiating its leases with landlords.

Bally Total Fitness Emerging From Bankruptcy
Bally Total Fitness has secured a bankruptcy exit plan. The fitness center company has reached an agreement with its lenders, a group including JP Morgan Chase, Wells Fargo Foothill LLC, CIT Business Credit and Anchorage Crossover Credit, to reduce Bally's debt by $660 million. Under terms of its reorganization, which is pending Bankruptcy Court approval, Bally's secured debt holders, which Bally owed $292 million, would get 94% equity in the reorganized Bally's. The company's unsecured creditors would get 3% equity, while Bally's management would get the balance.

Bally's filed bankruptcy for the second time in less than two years on Dec. 3, 2008. According to the filing, Bally's had assets of $1.16 billion and liabilities of $1.58 billion. The Chicago-based company operates 328 fitness centers in 25 states.

Hotel Woes: Lightstone’s Extended Stay Chain Files for Bankruptcy, Randyl Drummer
The news this week that Extended Stay Hotels filed for Chapter 11 protection citing $7.1 billion in assets against $7.6 billion in liabilities drew few surprises in the commercial real estate industry -- though many were struck when David Lichtenstein and his Lightstone Group LLC bought the chain from The Blackstone Group at 92.5% leverage two years ago for $8 billion at the pinnacle of the private equity boom. Click here to read the full 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.





PERSONNEL ANNOUNCEMENTS


Centro Properties Group Names New VP of Leasing, by Stephen Martin
Centro Properties Group has named Cathy Mancari as its new vice president of leasing in the south regional office. Mancari will manage a 2.6 million-square-foot portfolio of new development, power and neighborhood shopping centers in Alabama and Florida.

Mancari, previously a senior leasing executive at Weingarten Realty, has nineteen-years of real estate experience. Prior to serving at Weingarten, she was a senior leasing representative for New Plan Excel Realty Trust. Mancari is a member of ICSC and CREW (Commercial Real Estate Women), and is a CCIM candidate.

Alexander Joins Sperry Van Ness/ Lighthouse Commercial, by Meghan Drennan
Charlotte-based Sperry Van Ness/Lighthouse Commercial Realty hired Scott Alexander as an associate advisor. He will specialize in the leasing and sale of freestanding, single-tenant properties, as well as multi-tenant retail centers.

Prior to joining SVN, the 18-year real estate veteran worked in operations and purchasing for Ryan Homes. He is an active member of the International Council of Shopping Centers and will pursue candidacy for the Certified Commercial Investment Member designation. Alexander graduated from The University of Kansas with a bachelor's degree in history.

Sperry Van Ness/Lighthouse Commercial Realty is an affiliate of the international Sperry Van Ness organization.


(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


Supervalu Awarded LEED Gold for New Cub Foods Store
Grocery magnate, Supervalu, announced on Jun. 22 that it was awarded LEED® (Leadership in Energy and Environmental Design) Gold NC2.2 Certification for a Cub Foods store it opened in November at 1177 Clarence Street in Phalen, MN (St. Paul area). The 62,900-square-foot store is one of only three stores in the country to be awarded LEED Gold Certification, said Supervalu.

"Green" elements of the project include 44 skylights run by a solar-powered GPS system; a parking lot lit with LED lights; reuse and recycling of construction materials and waste; energy efficient lighting; a maintenance-free floor; a landscape irrigation system; and more. There are currently 73 stores located in Minnesota, Wisconsin, Illinois and Iowa.


(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.

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