Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/122387
r e T a i l i n g T o d a y law forbidding loans with interest rates above 25 percent. The new law would double that limit; other bills would go further. Opponents argue that the legislation would only encourage predatory lending and drive already strapped borrowers even further into debt. Regardless of the policy divide, Financial Service Centers members are good tenants, says Edward D'Alessio, the organization's general counsel. "In New York, in order to get a check-cashing license through the Department of Financial Services, you must have either a lease or the right to occupy the premises you are seeking to do business in for three years," he said. "So landlords like that." Among the biggest players in this field is Spartanburg, S.C.–based Advance America, Cash Advance Centers, which operates some 2,500 units across 29 states and was acquired by Grupo Elektra last year for $780 million. "We like high-traffic retail locations," said Jamie Fulmer, Advance America, Cash Advance Centers' senior vice president of public affairs. "We generally like bigbox retailers, and we like large regional grocery store chains." Advance America, Cash Advance Centers prefers end caps to stand-alones, and all its sites are leased, at terms between three and five years, Fulmer says. "Our footprint is relatively small," he said. "We can operate in one of the smaller bays in a shopping center and be effective." 72 SCT / M a y 2 0 1 3 The short-term financial-services industry may be maturing, Fulmer says. "We certainly aren't on a rapid growth trajectory like the recent rollout we once were on," he said. Others concur. "The market growth for storefronts has remained relatively flat," said Cantu, citing research from Stephens Inc., a Little Rock, Ark.–based analysis firm, which reports that business trends in 2012 were similar to 2011; store volume and revenue grew modestly because Internet expansion exceeded store growth. That development was also seen at the largest privately held company in this field, Chicago-based PLS Financial Services, which has about 400 outlets across nine states. PLS was named one of the fastest-growing companies in 2008 and 2009 by Crain's Chicago Business. Since then, its growth has slowed. "We look for dynamic retail shopping," said Ken Crane, vice president of the PLS real estate department. "High exposure is a big driver in what we do." If location allows, "we do free-standing buildings on corners as often as we can. It doesn't work in New York City or Boston, but in places like Dallas, Houston or Phoenix, we've purchased a lot of corners and redeveloped them." The firm's ideal model is the bank branch, and when it does lease, five to 10 years are the preference. "We could lease space in a small shopping center, but we want the end part closest to the intersec- tion that gives you all the car traffic." Without the pressure to meet Wall Street expectations, Crane says the firm does not force a deal. "We're very disciplined about our requirements," he said. "Some people talk about sites like an 'A,' 'B,' 'C,' or 'D' site. We always stay to our 'A's — we never deviate from our program." Other leaders in this industry include ACE Cash Express, based in Irving, Texas; Cash America International, in Fort Worth, Texas; Check into Cash, in Cleveland, Tenn.; CNG Financial, in Cincinnati (whose subsidiary is Check 'n Go); DFC Global Corp., Berwyn, Pa. (which uses the names Dollar Financial and The Check Cashing Store, among others); EZ Corp., Austin, Texas; and QC Holdings, Overland Park, Kan. "Our stores are where our customers live, work and shop," said Cantu. "Storefronts add enormous economic value to the communities in which they do business." And Fulmer says he is proud of what a company like Advance America can bring to the neighborhood. "We have a long track record of being a professional company that meets the needs of millions of American consumers," Fulmer said. "We take great pride in our brand and the professional look in which we present ourselves to the marketplace." SCT