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To: Bill Harmond who wrote (60770)	6/6/1999 9:34:00 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

>>They wanted close to $1 million per acre based on the traffic flow to their store although I could share the parking lot<G> Depending on the location, that doesn't sound expensive. What is that...$70,000 per year to operate adjacent to Walmart? Sounds like a good deal. William, You point about the location is the key. This story is a bit long but I will try and cut to the chase. We live basically in the country. land here typically is "cheap." Walmart bought a farm that was 100 acres in 1990 at $700/acre which was above the going rate by $100/acre at the time. This farm was 3/4 mile west of my the "mall" in which my Meadville jewelry store is located. I placed the word mall in quotes because the building is a poor excuse for a mall at 900,000 sq. ft with two achors. A Kmart and a Wards. Walmart built a superstore on the 100 acre farm leaving six acres remaining for an adjoining shopping strip center. The last time my lease was up for renewal the Landlord I have wanted more rent for a run down mall. I decided to contact the Walmart real easted department with a grand plan of building a strip center and locating myself within the strip center and leasing out the balance. The real estate people were very nice. They explained how Walmart operates. Walmart buys land in small towns or in suburbs of larger towns with a little extra to sell. They buld their stores and then sell the remaining land for their cost to build their store and buy the land. The store here cost them about $6 million to build. They were asking $6 million for the adjacent land. Note I am not William Harmond so I could not afford to pay $6 million for six acres, pay to build a strip center and move my store. Eventually, a developer did buy and build there. Let's look at the return on investment. The six acres cost Walmart $4,200 in 1990. They sold it in 1997 for $6 million not bad:-) Where did you get the figure of $70,000 per year to operate next to Walmart?