Unique Circuit City configuration Provides Win-Win Solution for Tel-Twelve Mall in Southfield, Mich.
SOUTHFIELD, Mich., Sept. 9 /PRNewswire/ -- Ramco-Gershenson Properties Trust (NYSE NYSE
See: New York Stock Exchange : RPT) developed a most unusual solution to reconfiguring tenant space at Tel-Twelve Mall in Southfield, Mich., to accommodate a one-of-a-kind store for Circuit City, the nation's largest specialty retailer of name-brand electronics and appliances. The announcement was made today by Dennis Gershenson, President and Chief Executive Officer of the company.
Ramco-Gershenson Properties Trust was faced with the challenge of finding a mutually satisfactory answer to the problem of an under-performing regional sporting goods operation at Tel-Twelve Mall. The company was also committed to strategically relocating several merchants who wished to expand and remodel their stores. The creative solution was to relocate and expand three merchants, terminate the sporting goods lease and convince Circuit City to build its first 45,000 square-foot Superstore in an enclosed mall. However, the most unique aspect of the Circuit City configuration is that the existing mall common area will run right through the middle of the store. The store will be opened by March, 1997.
"We were faced with the challenge of finding sufficient space to accommodate Circuit City's needs," said Mike Ward, Executive Vice President and Chief Operating Officer Chief Operating Officer (COO)
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Ramco-Gershenson Properties Trust. "We were able to show Circuit City the benefit of how dividing their store by the mall's common area would create greater exposure for their merchandise mix. Circuit City is excited about the configuration, and we're pleased to have them at Tel-Twelve. We're looking forward to a long-term partnership which will be mutually beneficial for both Circuit City and the company."
According to Gershenson, when the Circuit City remerchandising strategy is completed, the Tel-Twelve asset is expected to increase its net operating income -- on an annualized basis, before debt service -- by more than $450,000.
Gershenson added, "Developers in today's highly competitive environment must learn to think 'outside the box', explore new ideas and unconventional store concepts. We have an aggressive management team that recognizes the need to provide meaningful incentives for stores that create market dominance; strategically protect and maximize the long-term value of our assets; and, capitalize on win-win partnerships. Traditional anchors and big-box 'category killers' -- combined with ancillary specialty stores which fill specific needs -- have proved to be a successful formula in the '90s."
Ramco-Gershenson Properties Trust has a portfolio of 30 shopping centers with more than 6 million square feet of gross leaseable area, located in Michigan, Ohio, Florida, New York, New Jersey, Maryland and Wisconsin. Headquartered in Southfield, Mich., the company is a fully integrated, self- administered, publicly traded real estate investment trust (REIT REIT
See: Real Estate Investment Trust
See real estate investment trust (REIT). ). The Trust owns, develops, acquires, manages and leases regional malls and community shopping centers, as well as single tenant retail properties, nationally.
SOURCE Ramco-Gershenson Properties Trust
/CONTACT: Dennis Gershenson, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , or Richard Smith, CFO See Chief Financial Officer. , of Ramco-Gershenson, 810-350-9900, or fax, 810-350-9925/
CO: Ramco-Gershenson Properties Trust; Circuit City ST: Michigan IN: SU:
SC -- DEM See digital elevation model. 022 -- 7962 09/09/96 12:55 EDT http://www.prnewswire.com