Longmont's Twin Peaks Mall to Get Major Makeover

LONGMONT -- Baby steps won't be enough to revive 27-year-old Twin Peaks Mall. It's going to take blowing the roof off the joint.
That's what the mall's new owners, NewMark Merrill Mountain States, told an audience of more than 150 people Wednesday that attended the second public meeting the company has hosted since it bought the mall in February.

Managing director and principal Allen Ginsborg told the crowd that after receiving input from more than 2,000 community members and, even more important from the standpoint of making Twin Peaks a strong revenue generator again, more than 100 retailers, the mall as it is must cease to exist.

The mall was in foreclosure when NMMS bought it in February for $8.5 million, a fraction of the $33.6 million the previous owner had paid in 2007.
"For the most part the retailers that want to move into this market are not traditional, enclosed, regional mall tenants," Ginsborg said. "It's an open-air format. That's the direction they're driving this to.
"We see this project as a different type of experience. More of an outdoor, community oriented center."
Ginsborg unveiled an artist's rendering that showed a large fountain with kids playing, some outdoor seating, decorative features and storefronts that surrounded the plaza. The "Twin Peaks" sign stood atop an open-air archway.

Marketing Tool Most Real Estate Pros Want?

A very interesting article about technology in the Real Estate Business.  Legend Retail Group has been doing iPad tours for over a year.  They are a great tool to use and the way the industry is going with the new technology.  A great way to carry around demos, tours, aerials and any information you need in one handy carrying case.  No need to haul around 3 Ring binders anymore!

Daily Real Estate News | Wednesday, April 04, 2012

The iPad is the marketing tool that more than three out of four of 110 real estate professionals recently surveyed say they would most like to have, according to the survey by Imprev, a marketing technology company.
The real estate professionals surveyed selected up to five marketing products they most wanted, with the iPad coming out No. 1, followed by 35 percent who want an automated “drip” e-marketing campaign, 29 percent who prefer single property Web sites, 28 percent who said personal blogs, and 25 percent who eyed video.
“Real estate agents are shouting that they want their iPad apps,” says Renwick Congdon, Imprev’s CEO and founder. “The iPad from Apple is quickly becoming a ubiquitous marketing and productivity tool for the real estate industry.”
While the iPad is rated what agents most want to have, real estate pros surveyed said their current favorite technology is the smartphone.
“Mobile marketing continues to accelerate at breakneck speed,” says Congdon. “It’s a game changer for the industry.”

Click the link for the rest of the article.

Marketing Tool Most Real Estate Pros Want?

Best Buy to shut 50 stores

MINNEAPOLIS — Best Buy said it plans to close 50 big-box stores and open 100 smaller locations focused on mobile technology in the U.S. in fiscal 2013 and cut $800 million in costs by fiscal 2015. The news came Thursday as the biggest U.S. specialty-electronics retailer posted a fiscal fourth-quarter loss partly due to restructuring charges, but its adjusted results topped Wall Street's expectations.

Best Buy's strategy of focusing on closing some of its hulking stores to concentrate on smaller Best Buy Mobile outlets illustrates the shifting nature of the electronics industry. Shoppers aren't flocking to big-box stores as they used to. And sales of TVs, digital cameras and video-game consoles have weakened, while sales of tablet computers, smartphones and e-readers have increased.

The company said it has not finalized which locations will be targeted for closure.

"We are quite deliberate and thoughtful when we make such decisions," Best Buy spokeswoman Susan Busch said. "We are working to ensure the impact to our employees will be as minimal as possible, while serving all customers in a convenient and satisfying way."

Busch said the company will announce details about specific store locations and timings for closings once they are finalized.

Best Buy operates 23 big-box stores and five mobile locations in Colorado, according to Best Buy spokeswoman Kelly Groehler. That total includes 19 big-box stores and four mobile stores in metro Denver.
Best Buy lost $1.7 billion, or $4.89 a share, for the period ended March 3. That compares with a profit of $651 million, or $1.62 a share, a year ago.

The Minneapolis-based company said its quarterly results included $2.6 billion in charges. They were mostly related to its purchase of Carphone Warehouse Group's interest in the Best Buy Mobile profit-sharing agreement and related costs, as well as an impairment charge tied to writing off Best Buy Europe goodwill and restructuring charges.

Taking these items out, adjusted earnings were $2.47 a share, above the $2.15 a share that analysts surveyed by FactSet forecast.

Revenue rose 3 percent to $16.08 billion but missed Wall Street's $17.18 billion estimate.
For the full year, Best Buy lost $1.23 billion, or $3.36 a share, compared with a profit of $1.28 billion, or $3.08 a share, in the prior year. Adjusted earnings were $3.64 a share, which tops the previous year's $3.43 a share.

Colorado Papa John’s restaurants for sale

The Baltimore company that owns 40 Papa John’s pizza restaurants in Colorado wants to sell all of its locations and already has a buyer for four in the Denver area.
PJCOMN Acquisition Corp., which is operating under bankruptcy protection, has another 32 locations in Minnesota that are also for sale.

The company is offering its restaurants in three lots, divided by location — Denver, Colorado Springs and Minnesota — and expects to reveal the successful bidders and backup bidders on March 21.
Bidders must pass muster with Louisville, Ky.-based Papa John’s International Inc.    (Nasdaq: PZZA), and the bankruptcy court judge has the final say in any sale. No one connected with PJCOMN, Papa John’s or the bankruptcy case was willing to respond to questions, but the details are spelled out in documents filed in various court cases.

Of the 32 Denver-area restaurants PJCOMN is offering to auction off, the company said it’s already found a buyer for four: 12093A W. Alameda Ave., Lakewood; 14575 W. 64th Ave., Arvada; 2420 Arapahoe Road, Boulder; and 1901 Youngfield St., No. 107, Golden.
PJCOMN has asked for bankruptcy court approval to sell those four to L&J Associates LLC for $22,000 each. An Oklahoma company, L&J Associates operates six Papa John’s restaurants in Colorado, including in Castle Rock and Brighton.

PJCOMN noted in court documents that the four stores are unprofitable and should be closed “as their continued operation will not maximize a recovery to creditors in this case.”

PJCOMN said the four locations would be closed if the judge doesn’t approve the sale.
The $88,000 L&J Associates is offering will go to an affiliate of General Electric Capital Corp., which lent the owners of PJCOMN $8.96 million to finance the 2007 purchase of the restaurants.

The General Electric affiliate, known as GECPAC Investments I LLC, holds the senior secured claim against PJCOMN, which still owes the company $7.69 million.

Brian Q. Mills of Castle Rock and H. Clifford Harris, who lives in Maryland, each own half of PJCOMN. They also borrowed $1.25 million from Capital Delivery Ltd., a subsidiary of Papa John’s International that provides financial help to franchisees.

Capital Delivery sued PJCOMN in federal court in Kentucky last August, claiming the franchisee had defaulted on its loan. The lawsuit demanded the repayment of $1 million in principal and $441,382 in interest.

GECPAC Investments I in September sued PJCOMN in Baltimore, also claiming default on a loan, and convinced a judge to appoint a receiver for PJCOMN.

PJCOMN filed for Chapter 11 bankruptcy protection in Maryland the day after the receivership order, and later blamed “financial problems caused primarily by the franchisor” for the bankruptcy filing.

Before making the filing, PJCOMN sued Papa John’s International in state court in Kentucky, claiming the purchase left them indebted for millions of dollars that they wouldn’t have borrowed had Mills and Harris had a more accurate financial picture of the restaurants.

Mills and Harris bought PJCOMN from Blackstreet Capital Management LLC, a private equity fund in Chevy Chase, Md., for $11.2 million. Their lawsuit claims neither Blackstreet nor Papa John’s International disclosed more than $1.9 million in liabilities, including unpaid taxes. PJCOMN later dropped Blackstreet as a defendant.

Papa John’s International admits to introducing buyer and seller, but not to withholding any financial information.

Papa John’s International counted 3,010 restaurants in North America at the end of last year; all but 597 are company-owned.

Mills and Harris also say they weren’t aware of potential legal trouble over how delivery drivers were paid. Rival Pizza Hut Inc. — a subsidiary of Yum Brands Inc. (NYSE: YUM) — was sued in California in 2004 over allegations the company failed to reimburse drivers for using their personal vehicles to deliver pizzas and failed to pay wages. The case was settled two years later for $5.1 million.

Shane Bass, a former delivery driver for PJCOMN in Denver and Aurora, filed a suit in federal court in Denver in 2009 and made allegations similar to those in the Pizza Hut case. The lawsuit was later certified as a class action involving more than 1,000 current and former employees. Drivers in Minnesota filed their own class-action lawsuit.

PJCOMN has agreed to settle the two lawsuits for a combined $300,000. The proposed settlement requires the approval of the bankruptcy court.

Grocery centers and outlets lead development

Real Estate Snapshot - Grocery centers and outlets lead development

New York City -- A retail real estate market report, issued by Savills US retail group, found that, even as recovery remains slow, a few formats are progressing at a faster clip than others.

According to Gerry Mason, head of Savills, the majority of recent and planned retail development is in the grocery-anchored and outlet center category. CBL & Associates and Tanger Outlets are among the most active developers scheduled to break ground in 2012.

The largest U.S. retail real estate investors, according to the report are Blackstone, New York City, which transacted $10.73 billion in 2011; DDR, Beachwood, Ohio, which transacted $1.66 billion; and Cole RE Investments, which transacted $1.52 billion in 2011.

The report provided a general overview of the U.S. market as it stands, which showed that marginal vimprovements in the second half of 2011 are leaving most cautiously optimistic about 2012.

However, it still suggested more retailers will fail in 2012. “The retail market is still purging tired concepts and inefficient business models,” said Mason. He suggested Talbots could be a victim, as it is accepting bids to be purchased and will likely file for bankruptcy protection if a deal can’t be reached. Sears Holdings Corp. is another, as it recently announced plans to close 100-120 of its total 2,200 full-line stores in 2012.

“Also, in fourth quarter 2011, Gap announced plans to close 189 stores in the U.S. and downsize numerous Old Navy locations. More closings could follow as the company shifts its focus overseas,” Mason said.

Retailers expected to lead the expansion charge are discount retailers such as Dollar General, Ross Dress for Less and Big Lots). These retailers can fill large footprints and generate strong sales volumes in a recessionary environment, said the report. Other notable movers will be Nordstrom, J.C. Penney, Starbucks and Apple, said the report.

A SMASH HIT

Smashburger’s varied menu has put it on a sizzling growth pace

By Steve Raabe The Denver Post

 
Smashed ground beef is proving to be a winning concept for Denver-based Smashburger.

With 143 locations opened nationwide since its inception in 2007, Smashburger is one of the fastest-growing restaurant chains in the U.S.

Commitments from newly signed franchisees will bring the store total to 450 by 2014.

But that number is small fries to Smashburger chief executive Dave Prokupek, who said the business “easily” could reach 2,000 to 3,000 outlets in the next 20 years.

“No one has ever really grown this fast in the first five years,” he said during a recent lunchtime interview at the Tabor Center Smashburger, gripping a napkin in one hand and in the other a grilled chicken sandwich with goat cheese and spinach.

Gourmet grilled chicken in a joint named after a burger? That’s part of the Smashburger appeal, analysts say. In what the industry defines as the “better burger” niche within the hamburger hierarchy, Smashburger is wooing customers with a diverse menu ranging from customizable burgers to chicken sandwiches and salads to innovative sides such as flash-fried mixed vegetables.

Its largest competitor in the “fast casual” subset of the better-burger category is Five Guys Burger and Fries, a national chain with six times as many U.S. restaurants.

“But Smashburger is different because they have a broader menu. They don’t just have burgers and fries and hot dogs,” said Darren Tristano, executive vice president of Chicago-based restaurant consulting firm Technomic.    Recently, Forbes magazine listed Smashburger as No. 1 among its top 100 “Most Promising Companies.

The Smashburger name derives from the cooking process, in which raw Angus beef meatballs are placed on a grill and smashed into patties by a cook wielding a hand-held steel paddle.

The cook keeps pressure on the patty for 10 seconds, causing it to sear and lock in juices while it continues cooking for another three minutes. According to Prokupek, starting with a loosely packed meatball instead of a preformed patty makes the burger less dense and allows it to better express flavor.

“I eat a lot of burgers, and I would describe this as a very good burger,” said customer David Jasper at the downtown Denver outlet. “They’re juicy and they’re tasty. And you can get in and out of here pretty quick." 

Customers order at the counter, then are served tableside within about five minutes.    The average check is $8. A typical restaurant grosses $959,000 a year.

Although Smashburger is privately owned and not required to report financial information, it recently disclosed to analysts that 2011 sales were $118.7 million, a 72 percent increase from $69 million in 2010. Most of the growth was from opening new outlets. Same-store sales increased 3 percent in 2011.    Smashburger was founded by Denver-based private equity firm Consumer Capital Partners — that same company that until last month was a principal owner of the struggling Quiznos chain. Consumer Capital ceded its Quiznos ownership in a financial restructuring that gave control to New York hedge fund Avenue Capital Group.     

Analysts and Smashburger insiders say the hamburger chain is entirely unaffected by the Quiznos financial problems and restructuring.    “Smashburger is growing much smarter than (Consumer Capital) did with Quiznos,” said restaurant analyst John Gordon of San Diego-based Pacific Management Consulting Group.

While many of Quiznos’ franchisees are one-store mom-and-pop operators, Smashburger is focused on high-volume, multi-store franchise investors, Gordon said.

Initial franchise fees are $40,000 per store, plus royalty payments of 5 percent to 6 percent of gross sales and a marketing fee of 2 percent.    The current mix of Smashburger restaurants is 58 percent owned by franchisees and 42 percent corporate-owned.

Prokupek said that going forward, growth will come primarily from new franchises. Smashburger projects that by 2014, 72 percent of its 464 units will be owned by franchisees.

The chain recently announced an international expansion plan with proposed franchise locations in Calgary and Edmonton, Alberta; Costa Rica and undisclosed countries in South America and the Caribbean; and Middle East locations, including Bahrain, Kuwait and Saudi Arabia.

Franchisee David Whisenhunt opened his first San Diego restaurant in 2010. He now has eight in operation and has the rights for an additional 18 in the area.

“It’s a brand-new brand that’s still catching on,” he said, “but I think the potential is huge.”

Transit-oriented developments springing up in metro Denver

Premium content from Denver Business Journal by Dennis Huspeni

 January 27, 2012
In the last 10 years, “transit-oriented development (TOD)” has gone from a new buzz phrase to reality for Denverites.

The mixed-use developments, which are next to bus and/or light-rail stations, are springing up along the Regional Transportation District’s light and commuter rail lines.

There’s likely a TOD coming soon to a neighborhood near you.
Now that Denver appears to be on the other end of the recession, several stalled TODs are moving forward.
“The good news here is I think people are starting to realize the new normal in the real estate world and the development world,” said Marilee Utter, executive vice president for Colorado Urban Land Institute’s district councils and TOD expert. “All the trends support TODs more than they’ve ever supported them here before. Demand from the consumer is high. Understanding from the regulatory and financial institutions are high — higher than it’s ever been.”

A closer look at two TODs, in different stages of development, reveals the challenges and benefits of having retail, office and residential developments near public transportation.

  Belleview Station

Development on the 51-acre “donut hole” of a site near Interstate 25 and Belleview Avenue in Denver was set to start in 2008, before the economy imploded.

“The construction crew was literally on site when Lehman Brothers collapsed,” said Louis “Dutch” Bansbach III, president of Front Range Land and Development Co. “It probably delayed our development four years.”
The Bansbach family has owned land along the I-25 corridor since the late 1880s.

The Belleview Station development area used to house the Paradise Valley Country Club, which later became the public Mountain View Golf Course. It’s affectionately known as the “donut hole” because the Denver Tech Center grew up around it, on much of the land that Bansbach sold.

Development now is starting in earnest, following the advent of RTD’s Belleview light-rail station.
Also, Denver in 2002 approved a new zone to accommodate denser, multi-use development.
And a tax increment financing (TIF) district, the Madre Metropolitan District, was formed to finance infrastructure improvements.

“It’s a stronger market for them now, and a simpler deal,” Utter said.
The first construction project is a five-story, 352-apartment/retail complex on the west side of the development area near Newport Street and Belleview Avenue. Holland Partners Group is building the complex and plans to break ground in coming months.

A company official said of the area, “Belleview Station will certainly be the premier mixed-use community for the Denver Tech Center and all of south Denver.”
Plans call for the residential developments to be on that west side and office buildings to be located closer to the interstate, where they can climb up to 22 stories — though the market likely will sustain only 12 to 15 stories, Bansbach said.

There’ll also likely be a hotel, to go with the retail component. In all, there could be up to 5 million square feet of vertical development, Bansbach said.

“We’ve got very attractive zones there that will allow for a higher density ... much denser than anything you could build in the suburbs,” Bansbach said. “We can build anywhere on this piece at any time.
“And the uses? We’re not limited to just one or two. We can adjust as the market adjusts ... Since we envision this taking 20 to 25 years, that flexibility is very helpful. What’s hot today might not be in demand in 10 years.”
As master developers, the Bansbachs can be patient because they own the land and have no debt against it.
“We know every project affects the other piece,” Bansbach said. “We’re not in this to sell the land as quick as we can. We must sell to people who will add value.”

  Lakewood Federal Center

The City of Lakewood, RTD and the U.S. General Services Administration have a 65-acre site, a light-rail station coming soon and an opportunity to create a TOD from the ground up.
The site is south of Sixth Avenue, between Union Boulevard and Routt Street. To the east is the Federal Center, where almost 1,000 people work. The new St. Anthony West Hospital campus is to the south, and there’s already an RTD park-and-ride bus station at Second Place and Routt Street. The light-rail station there is expected to be open in 2013.

City officials have set the stage for a TOD by changing the zoning there to allow for mixed-use development.
“This type of development, with multimodel transportation, is more the future of development,” said Travis Parker, Lakewood’s planning director. “Right now we’ve got a lot of office parks, residential and retail areas. The transit areas are going to be more holistically designed, not big swaths of land dedicated to a single use. The uses will be integrated.”

That zoning change is key to prime the area for growth.
“One of the things we did early on was have a lot of public involvement in the development plans, then moving forward to implement the zoning,” said Roger Wadnal, Lakewood’s comprehensive planning manager. “We resolved a lot of issues out front and now that’s something the developer will not have to do.”
Parker said, “It’s flexible and developer-friendly. It allows for more density and encourages a pedestrian-friendly environment.”

But there are still challenges to overcome before development can begin:
• City officials are mulling whether to form a TIF district.
• The city must choose a master developer.
• The federal land there still needs to go through a “federal disposition process” before it can be sold or developed.
“There are big infrastructure costs that are not paid for yet,” Utter said, adding Lakewood has “great vision, but implementation is going to be the hard part.”

A master developer might be harder to find, but that’s not all bad, Utter said.
“More developers are in the TOD business ... and the local guys are smaller and it will allow for people who are more specialized to projects — they don’t have to be a mixed-use expert, and it brings more people into play,” she said.