CoStar's Retail News Roundup: Oct. 14 to Oct 20, 2007

CoStar Reports on Retail Expansion Plans, New Developments, Acquisitions/Mergers/Sales, Personnel, Sustainability and more...

By Sasha M Pardy

October 15, 2007

This week in the Retail Roundup, CoStar reports on expansions and new concepts at Target, Costco, Original SoupMan, Au Bon Pain, Lindt, Damon's Grill, True Religion, and more; new retail developments in CA, AZ, ID, IA, MT, NJ, FL, IL and TX; acquisition, merger, or sale activity at Macerich, Cafaro, Kimco, Ahold and Green Courte; sustainability efforts at Bond Cos., Fresh & Easy, and more; Personnel changes at NAI, KC Commercial, Cole Cos., Woolbright, and more.

Did you miss last week's CoStar Advisor story spotlighting the country's largest retail centers under construction? Follow this link to read, "USA's Largest Retail Centers Defy Definition.

ICSC Says Spending Pace Keeps Up, Despite Weather Dragging Down September Sales
The International Council of Shopping Centers says September's dip in retail sales continues a sluggish trend that was further impacted by warm weather. September comparable chain store sales grew by 1.7%. The month ranks in the top three of most important months in terms of sales volume all year for retailers. The year-to-date trend for comp-store sales is running at 2.3%, which compares to 3.9% for the same 2006 period.

Abnormally warm weather dragged down apparel category performance. To put this in perspective in comparison to September sales growth last year, ICSC says that Weather Trends International described this September as "8th warmest and 21st driest September in 113 years of records", while last September was the "31st coldest and 37th wettest."

ICSC dampens the alarm, however, saying the "Fundamental spending pace has not changed much in September after adjusting for the weather impact." For October, ICSC expects a continuation of the year-to-date trend for comp-store sales of 2.5%.

In addition to appearing every week in the national news and retail news section of our web site, you may also receive the Retail News Roundup via email by contacting the editor, Sasha Pardy at spardy@CoStar.comAlso, click hereto subscribe to CoStar's dedicated Retail RSS Feed.

EXPANSIONS / NEW CONCEPTS

Target Completes 2007 Store Opening Program with Grand Opening of 61 Stores Yesterday
Minneapolis-based Target Corporation (NYSE:TGT) simultaneously celebrated the grand opening of 61 new stores yesterday, Oct. 14th. The event marks the completion of the discounter's store opening program for 2007 of 111 new stores, exceeding its goal of opening 100 new stores annually. The company wants to double its size over the next 15 years to about 3,000 stores.

Costco to Add 25 U.S. Warehouses in FY08
Issaquah, WA-based Costco, operator of 383 U.S. warehouse stores, recently reported fiscal year 2007 results, which included a 7% increase in net sales, 6% increase in comparable store sales and a slight improvement in earnings per share for the year. During the year, Costco opened 24 new U.S. stores. For fiscal 2008 (which started September 3, 2007), Costco expects to add approximately 25 new U.S. stores and in addition, will relocate eight to 10 stores. Fiscal 2008 stores for the remainder of this year include stores already opened in Chico, CA; Victorville, CA; Montgomery, AL; and Columbia, MD. Stores planned for the remainder of the year are located in Selma, TX; Omaha, NE; Union Gap, WA; Visalia, CA; Gig Harbor, WA; Richmond Hill, ON; and Albuquerque, NM. The typical Costco store is 140,000 square feet and located adjacent to major shopping centers.

Soup and Ice Cream? Cold Stone and SoupMan Team Up on Co-Branded Store
The national soup and sandwich franchise, The Original SoupMan and 1,400-store ice cream franchise, Cold Stone Creamery are teaming up to open a new, co-branded store format in New York City. Located at 2 Astor Place in New York, the first Original SoupMan/Cold Stone Creamery store will celebrate its grand opening in early November. A franchisee will be opening the co-branded store, which will be a test for the concept, as neither franchisor has announced plans for future stores.

Lindt Chocolates More than Triples the Size of its U.S. Headquarters by Vida Gintvainis
Stratham, NH-based Lindt & Sprungli, the premium chocolate maker and retailer with eight production facilities and more than 100 stores, completed a multimillion dollar expansion of its U.S. headquarters and production facility, at One Fine Chocolate Place in Stratham.

The Lindt USA facility received an addition of 300,000 square feet, bringing its total size to approximately 392,000 square feet over two stories. The industrial building was renovated in 2007 and is in the Rockingham Industrial submarket. The expansion is designed to provide for increased production and storage capabilities.

Lindt cited "robust year-after-year growth" and increased consumer demand, along with an AC Nielsen study revealing that the premium chocolate market grew 24% over the last year while the overall chocolate market grew only 3.9%, as its reasoning behind the expansion. The company said it also plans future expansion efforts. The average Lindt chocolate store is 1,800 square feet and located in an upscale regional mall.

Au Bon Pain Growing Quickly Through Franchisees With Flexible Prototypes

Boston, MA-based Au Bon Pain completed a management buyout in 2005 and has since forged ahead with expansion plans, menu improvements, branding changes, and new concepts. In early 2006, the company had 119 units; now its count exceeds 250 units, including international restaurants. The fresh bread gourmet soup and salad quick service restaurant company offers franchisees a number of different concepts designed to fit into different market situations.

Its urban cafés are designed to cater to the hurried customer and at 2,500 to 3,500 square feet are typically located in large office towers or on urban street locales with a number of office workers. The Bistro, Au Bon Pain is designed for suburban locations with more attention paid to seating areas and comfortable design; at 4,000 square feet the company prefers locations in regional lifestyle and fashion anchored centers. For a lease term, Au Bon Pain asks for 10 years with four consecutive five-year options to renew at a predetermined rent.

The company also has formats for non-traditional situations, such as airports, hospitals, universities, and more. Markets curently targeted include Greater New York City; Plattsburgh, NY; Albany, NY; York, PA; Pittsburgh, PA; Baltimore, MD; Toledo, OH; Milwaukee; and Dallas. To date, Au Bon Pain limits itself to the Eastern, Southeastern and Midwestern areas of the country.

Damon's Grill Announces New Prototype and Southeast Expansion
Columbus, OH-based Damon's Grill, casual dining sports grill restaurant company with a chain of 75 units in 16 states and the U.K., recently resurfaced from a corporate restructuring led by Charlotte, NC-based Alliance Development Group, which acquired the company more than a year ago. Damon's has big plans to expand in the Southeastern U.S. by opening new units under a new prototype design. Damon's will debut the new prototype in Charlotte with two new restaurants, but the sites are yet to be secured. The new prototype will step away from Damon's typical lodge-style restaurants with a more contemporary dining room and bar aimed to appeal more to women and families than before. Elements will include more natural light and HDTVs. Damon's will likely open 10 to 15 new restaurants per year.

True Religion to Grow Fifty-Stores Strong by 2009's End
Los Angeles-based True Religion Apparel, a premium apparel brand primarily known for its True Religion Jeans, recently completed a strategic review with Goldman Sachs. The result of the review, which the company has been working on since last summer is significant expansion. True Religion will add four more stores by the close of 2007, bringing its total store count to 15. In addition, the company plans significant growth during 2008 and 2009, increasing store count to 30 by the end of 2008 and 50 by the end of 2009. In addition, the company recently hired an experienced apparel industry store executive as VP of real estate, Marc Klein, who is responsible for securing new store sites. True Religion is flexible in its square footage requirement, but targets upscale shopping centers in affluent markets across the country.

Books-A-Million Expanding in PA and NB
Birmingham, AL-based Books-A-Million (NASDAQ:BAMM), book retailer with 200 stores in 20 states under banners Books-A-Million and Bookland, will enter two new states, Pennsylvania and Nebraska as part of its fiscal 2008 expansion plans to open eight superstores, relocate four stores and close six stores. After this 2008 correction to its store base, the retailer plans 15 to 20 new stores in 2009. The retailer typically locates in 15,500 square-foot spaces and prefers regional malls, power centers, and lifestyle centers.

Fresh & Easy Will Celebrate Grand Opening of Six Stores in CA Next Month
Fresh & Easy Prototype

U.K. grocery leader Tesco recently revealed its specific plans to penetrate California's Inland Empire with its U.S. grocery store format, Fresh & Easy Neighborhood Market via 46 store locations in the Inland Empire and many of those are already under construction. Tesco will celebrate its first store grand openings on Nov. 8th, when six Fresh & Easy grocery stores will open in Los Angeles, Orange, Riverside and San Bernardino counties. At an average size of 10,000 square feet per store, Fresh & Easy's small grocery store format is intended to become the convenient way to shop for fresh groceries. Stores in Phoenix, Las Vegas and more in Southern California are on the way.

NEW SUPPLY

Westcor Celebrating Grand Openings at a Feverish Pace, 9M SF this Year
Phoenix-based Westcor, subsidiary of Macerich and one of Arizona's largest retail developers, will complete 9 million square feet of new and redeveloped square footage this year, the most in its history. Westcor provided CoStar with updates on these developments, most of them being very significant in size and in their markets:

SanTan Village will be the first regional shopping center in Gilbert. The 1.2-million-square-foot, 120-acre center is part of a larger master-planned community and will feature 130 shops and restaurants, it will be fully complete spring 2008.

Estrella Falls will be the first regional shopping center in the Southwest Valley and city of Goodyear. The project, currently undergoing infrastructure construction, is located at the center of a 300-acre mixed-use development. Westcor plans a power center in 2008 and the regional open-air shopping center in 2009 on the site.

Prasada is a 3,355-acre master planned community currently undergoing infrastructure construction located in the city of Surprise; Westcor will create an urban retail village and regional shopping center at Prasada.

The 1-million-square-foot Promenade at Casa Grande in Pinal County will celebrate the first phase of opening next month while the second phase will open spring 2008.

Scottsdale Fashion Square is receiving an $130 million renovation and expansion that will include Barney's New York and 100,000 square feet of specialty shops.

The 596,000-square-foot luxury mall, Biltmore Fashion Park is planned to receive 611,000 square feet of additional retail, residential and entertainment space, the site is located on Camelback Road in Phoenix and Westcor is currently in the entitlement process on the site.

The 892,469-square-foot Desert Sky Mall in Phoenix will celebrate the completion of its redevelopment next month, which involves several interior and exterior improvements and new stores.

The 1-million-square-foot Fiesta Mall in Mesa is nearing completion on an interior renovation and Westcor has plans for future redevelopment of the property

Next week, Westcor is celebrating the grand opening of the first phase of Marketplace at Flagstaff Mall, a 435,000-square-foot open-air expansion at the company's existing 354,519-square-foot mall that will include Best Buy, Home Depot, Linens N Things, Marshalls, Old Navy, Petco, and more.

Cabela's and Foursquare Pair Up on Three Retail Developments

Carlsbad, CA-based Foursquare Properties has once again secured outdoor sports attraction retailer, Cabela's to anchor one of its developments. Cabela's will open an 80,000-square-foot store at South Billings Plaza, located along I-90 in Billings, MT. Foursquare is building a 338,000-square-foot open-air retail center at the 28-acre site. Other retailers have yet to be announced; Cabela's plans for a early summer 2008 opening.

Cabela's, which on average draws 4 million shoppers to its stores annually, is also opening at a Foursquare property in Post Falls, ID. The Pointe at Post Falls, located at I-90 and Seltice Way on 135 acres, will be an 850,000-square-foot regional power and entertainment center that will host a Cabela's grand opening next year. The retailer has also signed on for an 80,000-square-foot store at Foursquare's Gateway at Rapid City, a 515,000-square-foot regional power and lifestyle center located on 54 acres along I-90 in central Rapid City, IA. That store should break ground soon and be open summer 2008.

Simon / Chelsea Break Ground on 430,000 SF Outlet Center
Indianapolis, IN-based Simon Property Group, the country's largest retail property owner with a portfolio of 257 million square feet, has broken ground on Jersey Shore Premium Outlets, a project of its Chelsea Property Group subsidiary. The 435,000-square-foot upscale outlet center is located just off the Garden State Parkway at exit 100A on Route 66 in Tinton Falls, NJ. The single-story project will be home to 120 outlet stores joined in a village-style layout. Jershey Shore Premium Outlets will be the third Chelsea outlet center in New Jersey when it opens fall 2008.

Capmark Provides $50M Loan for Redevelopment of Transwestern Development

Capmark Finance originated a $50 million loan for Transwestern Investment Co. and Arthur Hill & Co. to redevelop Twelve Mile Crossing at Fountain Walk, a 737,000-square-foot festival-style shopping center located across from the Twelve Oaks Mall in Novi, MI. The center is currently anchored by Cost Plus World Market, Dick's Sporting Goods and The Great Indoors and features a number of theme restaurants, as well as an Emagine movie theatre. Sources say the mall has always struggled with reaching full occupancy, due to lack of visibility and access. Reportedly, the owners will be tearing down the portion of the mall occupied by a skate park to make way for a new Gold's Gym and a main-street style row of shops.

Berry Farms Town Center Will Soon Break Ground in TN
Brentwood, TN-based Boyle Investment Company has yet again delayed the ground breaking of Berry Farms Town Center, a mixed-use development planned to include 600 housing units, 500,000 square feet of retail and 500,000 square feet of office space in Williamson County, TN - the Nashville area. September was the expected date of ground breaking for the project, which has been in process since 2004, however, the event has been delayed to occur by the end of this fall. The Town Center sits on a 233-acre tract, which is the first phase of a 600-acre master planned community that at completion will include 1,100 homes including community uses, 1.6 million square feet of retail space and 3.5 million square feet of office space. Boyle aims to create a small-town feel with the development and maintain the history of the area.

Arboretum South Barrington Snags Gold Class Cinema and More
Northbrook, IL-based The Jaffe Companies, a Midwest retail developer, broke ground on The Arboretum of South Barrington, located on 85 acres in a northwest Chicago suburb. The $200 million, 600,000-square-foot open-air lifestyle center is scheduled for completion of its 350,000-square-foot phase I next fall. Jaffe has secured Gold Class Cinema, a luxury movie theatre operator new to the U.S. top open an eight-screen, 40,000-square-foot cinema complete with bar and lounge. Other tenants announced include Chico's, Coldwater Creek, Soma, White House/Black Market, Ann Taylor Loft, J. Crew, Aveda, DSW, The Limited Too, Soft Surroundings, Victoria's Secret, Panera Bread, Ruth's Chris Steak House, and more. Located at the northeast quadrant of Higgins Road and Hwy. 59 at the I-90 interchange in South Barrington, the lifestyle center is across the street from a Target shopping center and Cabela's site.

Galaxy Development to Build Power Center at Prasada in Surprise, AZ
Galaxy Development Group is the developer planning for the other retail space (Westcor is developing a larger portion) that will become a part of the 3,355-acre Prasada master planned community in Surprise, AZ. Galaxy just purchased a 46-acre site within the development for $12 million; its intentions are to construct a 400,000-square-foot power center, named Cotton Lane. This center, however, won't start construction until 2010, delivering 12 to 15 months later. Prasada will benefit from the widening of Loop 303, which will make the road a major corridor for North Phoenix and the West Valley.

Fidelis Realty Completes Land Assemblage, Breaking Ground on Power Center in Houston

After years of property assemblage, Fidelis Realty Partners of Houston is breaking ground on Village Plaza at Bunker Hill, a 450,000-square-foot retail center located on 46 acres at Bunker Hill and I-10 on Houston's west side. Fidelis' demolition of a manufacturing facility has allowed it to move forward on the center, which will be anchored by an 125,000-square-foot H-E-B Market, an 83,000-square-foot Dick's Sporting Goods, Circuit City, Petsmart and 35,000 square feet for restaurants and other uses. The H-E-B will open mid-2008, while the remainder of the development will follow later in the year.

500,000-SF Florin Mall Rebuild in Sacramento Progressing
Stonehenge Property Group demolished the 489,556-square-foot enclosed Florin Mall in Sacramento, CA, to make way for a new open-air retail center. The company is now completing foundation work for the new property, Florin Mall Towne Centre, which will include 500,000 square feet of shops including Wal-Mart Supercenter, Mervyn's, 24 Hour Fitness, a renovated Sears that was never knocked down, Starbucks, GNC, Old Navy, and more. The $76 million project covers 45 acres at the northwest corner of Florin Road and Stockton Boulevard in Sacramento and is scheduled to deliver June of next year. Jim Teare and Blair Wheatley of Colliers' Roseville, CA office are marketing the new center for lease at $32.00 to $42.00-per-square-foot, triple-net.

Woolbright Celebrates Opening of First Tenants at Collection at Vanderbilt in Naples

Boca Raton, FL-based Woolbright Development, a leading Florida retail developer, will celebrate the opening of the first tenants at The Collection at Vanderbilt in Naples, FL, following the August 2007 delivery of the center. The 225,000-square-foot open-air upscale shopping center is located across from a Ritz Carlton Resort at the northwest corner of Vanderbilt Beach Road and Airport Pulling Road in the southwest Florida town well-known as a winter escape for rich and famous from around the world. PF Chang's moderately priced concept, Pei Wei already opened last month, however, tenants opening this month include Merle Norman, Maximum Tan, Puddy and Pearl, Persona Boutique, Naples Trust Realty Co, and The Good Life.

Kimco Progressing on Target-Anchored Power Center in Omaha Area
New Hyde Park, NY-based Kimco announced Target as the latest anchor tenant secured for Metro Crossing, a 510,027-square-foot power center under construction in Council Bluffs, IA that will serve residents from Western Iowa and the Omaha area. Target will open a 133,000-square-foot store in 2009, while Metro Crossing's other tenants, Bed Bath & Beyond, Hobby Lobby, Petsmart, Famous Footwear, Lane Bryant/Cacique, and more will open spring-summer 2008.

Westfield Calls on Omniplan for Expansion and Renovation at West L.A. Mall

Architecture firm Omniplan has been awarded with contract to design an $75 million expansion and renovation at Westfield Fox Hills, an 850,000-square-foot enclosed regional mall in Culver City on the 405 Freeway, the West Los Angeles, CA area. Currently anchored by Macy's and JC Penney, Omniplan will be adding a 160,000-square-foot Target, more structured parking, and a 300,000-square-foot expansion adding new shops and restaurants. In addition, changes will be made to the façade and the existing mall's interior and food court will be renovated. Construction is scheduled to begin at the end of this year, with completion slated for spring 2009.

ACQUISITIONS / MERGERS / SALES

Macerich Identified as $515M Winning Bidder for Westfield North Bridge Mall in Chicago

Santa Monica, CA-based retail REIT, Macerich, is rumored to be in the final stages of due diligence for the $515 million purchase of Westfield North Bridge Mall, located at 520 N. Michigan Avenue, which is well known as Chicago's Magnificent Mile. The mall's current owners, John Buck Co., Morgan Stanley Real Estate Fund and Westfield America put the mall on the market in July.

The 685,000-square-foot mall is anchored by a four-story Nordstrom and a 9-screen AMC theatre and features upscale specialty shops such as Armani, Hugo Boss, Harley Davidson, Kenneth Cole, The LEGO Store, Sephora, Tommy Bahama, Virgin Megastore, Ethel's Chocolate Lounge and restaurants including ESPN Zone, Grand Lux Cafe, Tuscany Café, PF Chang's, California Pizza Kitchen, Prime Steak & Stone Crab, and more. Westfield reports specialty store sales at North Bridge average $780-per-square-foot, which ranks third among its entire 61-mall U.S. fleet.

The $515 million-deal, expected to close over the next two weeks, would also include an 1,100-car parking garage and an 135,000-square-foot office building. At $752-per-square-foot, Macerich would be making a generous investment to improve its primarily-suburban fleet of 73 regional malls.

Kimco's YTD Acquisitions are up to 8.3M SF and $2.0B
New Hyde Park, NY-based Kimco Realty Corp, retail REIT with 1,519 shopping centers comprising 180 million square feet, acquired 15 retail properties totaling 1.1 million square feet during its fiscal third quarter. Through these transactions, Kimco placed $185.4 million on properties primarily in the areas of Long Island, NY; Riverside-San Bernardino, CA, Charlotte, NC, and Mexico City, Mexico. Kimco also disposed of 14 properties totaling 1.3 million square feet during the quarter for $201 million. As one of the country's largest retail property owners, Kimco has acquired much more than it has disposed of so far this year. The tally for the year is the acquisition of 77 properties totaling 8.3 million square feet for $2 billion and the sale of 46 properties totaling 4.8 million square feet for $664.7 million.

After $100M Midwest Mall Purchase from Cafaro, Cabot Awards JLL with Leasing

Boston-based Cabot Investment Properties has selected Jones Lang LaSalle's Retail division to lease and manage approximately 1.8 million square feet of retail space in three Midwest malls:

The 747,341-square-foot Ashtabula Mall (Ashtabula, OH)is anchored by JC Penney, Sears, Dillard's, Steve & Barry's, and a Super Kmart.

The 426,785-square-foot Southland Mall (Marion, OH) is anchored by Elder-Beerman, Jo-Ann Fabrics, Regal Cinemas, Sears, and Steve & Barry's.

The 514,564-square-foot North Park Mall (Marion, IN) is anchored by Elder-Beerman, JC Penney, Lance's Supermarket, and Sears.

Cabot acquired the mall portfolio from Youngstown, OH-based mall developer, Cafaro Company, at the end of August for $100 million.

Ahold Selling Tops Markets to Morgan Stanley Private Equity in $310M Deal
Supermarket giant Ahold is selling its Tops Markets division to Morgan Stanley Private Equity in a transaction valued at $310 million. Under terms of the deal, capitalized lease obligations will remain with Tops although Ahold will retain contingent liability for the majority of these lease obligations. Tops operates 71 grocery stores in middle and western New York State and northwestern Pennsylvania under two banners, Tops Markets and Martin's Super Food Stores. Ahold's decision to release Tops after 16 years of ownership is the result of its 2006 announcement that it would conduct a strategic review of its portfolio. Ahold's primary U.S. chain is Stop & Shop, which holds significant market share in New England. Morgan Stanley, which plans to continue and grow the Tops operation, plans for the deal to close by the end of this year.

Greene Courte Partners to Place $800M Via New Fund Targeted at Main Street Retail/Mixed-Use
Chicago-based Green Courte Partners, private equity real estate investment firm that was founded in 2002, has closed on its second investment fund, Green Courte Real Estate Partners II, LLC ("GCREP II"). Green Courte will leverage the $262.5 million fund to invest $800 million.

Green Courte's focus is to acquire high quality, niche assets that will generate strong risk-adjusted returns over a long period of time. The company has narrowed down these niche assets to include retail and mixed-use properties in urban shopping districts, suburban downtowns, resort shopping districts, and college towns. Green Courte also acquires parking assets and manufactured housing communities. Through its initial Fund I, Green Courte has committed to over $500 million of such investments.

Green Courte's current retail/mixed-use investments include:

Howelson Place, a 73,000-square-foot property in Steamboat Springs, CO slated for completion in 2008

Fiore Square, a 50,000-square-foot property in Lake Forest, IL scheduled for completion in the coming months

Alpenglow, a 31,248-square-foot project in Steamboat Springs, CO expected to be completed soon

The Shoppes of Long Grove, a 47,176-square-foot suburban retail center existing in Long Grove, IL

River Walk, a 219,521-square-foot project in Steamboat Springs, CO scheduled for completion in 2008

Hilltop Shops, a 30,565-square-foot property in Boulder, CO planned for future redevelopment

CLOSINGS / CUTBACKS

Bombay's Bankruptcy Winning Bidders Plan to Close Entire Store Fleet
Fort Worth, TX-based Bombay Company, operator of 384 furniture and home accessories stores across the country, in September filed for reorganization under Chapter 11. In that filing, Bombay said it would continue to operate business as usual, funded by an $115 million debtor-in-possession (DIP) financing facility from GE Capital and GE Canada.

Today, the company announced that a venture between Gordon Brothers Retail Partners and Hilco Merchant Resources submitted the winning bid at the auction for Bombay's business operations. A hearing on the agreement between Bombay and the joint venture will be reviewed for approval early next week.

Gordon and Hilco proposes a liquidation of Bombay's U.S. stores and the venture intends to begin store closing sales immediately following court approval. However, Bombay's intellectual property rights and real estate assets are not part of the proposed transaction.

Gordon Brothers is a long-time liquidator of retailer's assets. Its real estate arm, DJM Realty, handles real estate disposition for retailers.

INITIAL PUBLIC OFFERINGS

Update: Virgin Mobile I.P.O. Sold at Low End Price
Virgin Mobile USA, the wireless phone carrier that is the product of a joint venture between Richard Branson's Virgin Group and Sprint Nextel, raised $412.5 million via an initial public offering on October. The price range for the offering had previously been set at $15 to $17-per-share, but Virgin ended up pricing the 27.5 million shares at $15-per-share. The company will use the majority of the proceeds to repay debt. Virgin Mobile has experienced strong growth in its subscriber base and now has more than 4.8 million members.

Acquirer of Colonial Properties' 2.7M SF of Retail Stands to Raise $118.8M from I.P.O.
New York City's Och-Ziff Capital Management Group has priced its initial public offering of 36 million Class A shares to trade on the New York Stock Exchange under trading symbol OZM at $30 to $33-per-share. Och-Ziff dubs itself "one of the largest alternative asset managers in the world." As was mentioned in a recent Retail Roundup, Och-Ziff, under shell OZRE Retail LLC, closed on a joint venture with Colonial Properties Trust, under which it retained an 85% interest in 11 of Colonial's retail centers totaling 2.7 million square feet. That portfolio is valued at $360 million, but the acquisition price was not disclosed.

SUSTAINABILITY/ GREENING

Springbrook Prairie Pavilion Breaks Ground in Naperville
Bond Cos., a mixed-use and retail developer with offices in Chicago, Los Angeles and Richmond, along with its joint venture partner MDC Properties, started construction of a 223,440-square-foot lifestyle center on 27 acres at the northwest corner of 75th Street and Fort Hill Drive in Naperville, IL.

A 50,000-square-foot Whole Foods Market will be Springbrook Prairie Pavilion's primary anchor tenant. Other tenants on the roster include Loehmann's, Cost Plus World Market, HomeGoods, Nordstrom Rack, Buffalo Wild Wings, Road Runner Sports, Bank of America and Chase Bank. Completion is slated for summer 2008. Whole Foods and a central plaza will be built at the core of the development, where events and gatherings can be held. Other features include pedestrian walkways, bike paths and landscaping.

Bond and MDC are building Springbrook in accordance with the USGBC's Silver-Level LEED Certification standards. "We have gone to great lengths to make certain it is different in form and function. The design assures that it will blend almost seamlessly into the surrounding natural environs. In addition, there are many 'sustainable' features that contribute to the preservation of the environment," said Robert J. Bond, president of Bond Cos.

BDO Seidman Survey Reveals Corporate Image as Primary Motivator for Retailers to be "Green"
Chicago-based consulting firm BDO Seidman has released the results of its Retail Compass Survey, which polled 140 CFOs of retailers with revenues in excess of $100 million across the country about attitudes towards "green" practices. Results included:

Two-thirds of CFOs say their company is actively involved with “green” or environmentally friendly practices, and forty-four percent of those indicate they have increased their investments in these practices during the past two years.

83% of the top 100 largest retailers are involved in green practices and a majority, and 62% of those have increased their investment in such over the past two years.

While 34% of retailers are focused on environmentally modifying operations and structures, 9% are focused on selling green products; 57% are doing both.

When questioned about motivation to be green, 66% of CFOs cited corporate image as the primary motivator; 15% cited tax breaks; and 10% cited city/state zoning regulations.

Fresh & Easy Commits to Third Party Measurement of Greenhouse Gas Emissions
El Segundo, CA-based Fresh & Easy Neighborhood Market, the U.S. subsidiary of Tesco PLC that is breaking into this country with small-format grocery stores on the west coast, continues to make announcements regarding its sustainability initiatives. The company has committed to the California Climate Action Registry, which focuses on greenhouse gas emission reduction and will hold Fresh & Easy to measure and continually reduce its impact on the environment, by third party auditors.

ICSC Names Research Scholar for Retail Real Estate Sustainability
The International Council of Shopping Centers has named Jerry Yudelson, principal of Yudelson Associates, a Tuscon, AZ-based environmental consulting firm, as ICSC's first Research Scholar for Retail Real Estate Sustainability. Yudelson will hold the title for two years, serving the purpose of spreading knowledge about "green" building.

ICSC says it created the research position to keep up with current times. Yudelson will contribute to ICSC publications and speak at conferences on the subject of environmental sustainability. About his new position, Yudelson says, “ICSC has huge global reach, and the need to change the environmental footprint is pretty important, and it will only happen by concerted action by a company.”

Yudelson holds in-depth experience in this field. He has served on the national board of the U.S. Green Building Council and is an expert on the Leadership in Energy and Environmental Design (LEED) rating system. He has written six books on environmental sustainability, of note is The Green Building Revolution and Green Building: A to Z. His firm provides consultant services to developers working on green builds.

PERSONNEL

NAI Starts NAI ReStore Under Direction of David Solomon
Princeton, NJ-based NAI Global, manager of 5,000 commercial real estate professionals and 375 offices in more than 55 countries, has formed NAI ReStore, a venture that will service retailers and shopping center owners/developers.

By leveraging the local market expertise of NAI retail specialists worldwide, NAI ReStore intends to increase the speed and efficiency of acquiring, leasing, and selling retail property for its clients. To support retailers' expansion plans, NAI ReStore will employ NAI Analytics' geo-demographic mapping and customer segmentation products. Other services include site selection, tenant representation, acquisition, disposition, investment sales, valuation and project management.

NAI has appointed David Solomon as president and CEO for NAI ReStore. NAI created ReStore in recognition that real estate is among the most valuable assets for retailers. "Now, with just one click, we can broadcast our retail real estate clients’ needs to our real estate professionals and almost immediately start uncovering new real estate opportunities for them,” said Solomon.

Solomon has been a part of the retail real estate industry since 1990 when he founded The Solomon Organization brokerage, which grew to have a large retail tenant rep and property management business. Other experience includes founding the 20-store Israel Toys R Us franchise and a nationwide chain of DVD kiosks that was sold to an affiliate of McDonald's. In addition, Solomon has personally invested in many shopping centers and retail companies, including Zany Brainy and Boston Chicken.

New Retail Brokerage Firm Opens Doors in Kansas City Area, by Matthew Burdette
KC Commercial Realty Group has opened an office in Prairie Village, KS. Local industry veterans David Bayer, SCLS Richard Hurst, CCIM and Scott Jerwick, have joined together to form the company, which specializes in the leasing, management and development of retail properties.

The trio has been fortunate to launch with nearly 1.5 million square feet under representation. Major projects in Kansas include Lenexa City Center in Village Green, Oak Park Commons, Carrington Crossing, and the Quivira 95 Shops.

Previous to forming KC Commercial, Bayer spent 20 years with Copaken, White and Blitt as a principal and Director of Retail Leasing. Hurst has been associated with Block and Company throughout his 11-year career, specializing in shopping center development and leasing as well as retail tenant representation. Jerwick also has 11 years of experience and most recently served as a vice president with Grubb & Ellis/The Winbury Group, specializing primarily in landlord representation.

With $1.2B Acquired Year-to-Date, Cole has Brought on 50 Employees this Year
Phoenix-based Cole Companies, real estate investment firm specializing in single-tenant, net lease retail assets, has increased the size of its staff by 60% since the beginning of this year. Cole attributes the necessity of adding 50 new staff members to its gangbuster acquisition pace this year. To date, Cole and its affiliates have acquired $1.2 billion in assets, which is nearly double the amount it acquired in 2006. Founder Chris Cole says the company's "planned and controlled growth" has resulted in the need to grow its staff and infrastructure to maintain customer service and execution capabilities. The company also plans to expand its office by 24,000 square feet to accommodate new employees and build an education and training facility. Cole now owns or manages $2.5 billion of real estate assets totaling 15.1 million square feet.

With 1.5M SF Added to Portfolio this Year, Woolbright Development Hires 5 Leasing Agents
Boca Raton, FL-based Woolbright Development, that has acquired more than $1 billion annually and has taken on approximately 1.5 million square feet since the beginning of this year, has recently added five new leasing agents to its team.

With 15 years industry experience, Michael Tegge will direct the leasing teams for the 71,172-square-foot Cascades in Tampa, FL and the under development, 225,000-square-foot Collection at Vanderbilt in Naples, FL.

Emran Ally brings four years of retail leasing experience to Woolbright and is responsible for leasing the 450,000-square-foot London Square in Kendall, FL, a power center anchored by Costco, TJ Maxx, HomeGoods, Ross Dress for Less and Party City.

Anahi Quino has three years of retail leasing and tenant representation experience and is the agent for the 250,000-square-foot Miramar Square, currently under development in Mirimar, FL.

Melinda Galiano brings Woolbright experience in lifestyle and specialty store leasing and will assist with the leasing of several centers in West Palm Beach and Martin counties including the 91,000-square-foot Abacoa Town Center in Jupiter and the 150,708-square-foot Cove Center in Stuart.

With two years retail leasing experience, Meredith Eidelman is leasing the 2008,474-square-foot Wekiva Riverwalk, anchored by Winn Dixie and AMC Theaters and the 100,000-square-foot Lake Mary Center, anchored by TJ Maxx and HomeGoods; both centers are in the Orlando area.