Detroit Free Press from Detroit, Michigan • Page 23

The Detroit News del MM Tomorrow in Strategies Home sweet home Real estate agents urge homeowners to remove themselves emotionally from the selling process. Ttn Detroit News Online All day. every day. http:detnews.com Section 1 Sunday, August 16, 1998 Celebrates Two Years Somerset Collection Mr. 0 St 1 mm sa Occupancy rates, sales exceed national averages for malls Charles V.

Tines The Detroit Sews Nobody's a tougher critic of Mario's than Mario Lelli hlmsfelf, who started the popular Detroit restaurant. Mario's survives dente JON PEPPER Founder pays tribute to the new owner of popular eatery. If the walls could talk at Mario's Restaurant, you would hear some amazing tales about 50 years of business. There would be stories about legendary parties, such as the one for Lee Iacocca when he was named president of Ford Motor Co. Stories about the famous paisani who dined there such as Henry Mancini, Danny DeVito and Don Ameche.

Stories about employees such as Johnny, Leo, Giuseppe and George the Broiler Man. Stories about the 9 million tomatoes that selflessly gave their lives to the cause of fine dining. The walls can't talk, of course, so the 32-year-old owner, Vince Passalacqua, enlisted the next best witness to Mario's half-century of Detroit history, the man whose name has been Photos hy Pablo Martinez Monsivais The Detroit News A view inside Somerset's North Section. Shopper Tina Balagot says she feels much of the success can be attributed to the tenant mix. More than 60 percent of the stores have their only Michigan location in the mall.

By Rene Wisely The Detroit News TROY Two years after the marriage of Somerset's North and South collections, the honeymoon continues. Stores that have been open at least a year saw sales climb 12.5 percent over the year-ago period at Somerset North and 11.5 percent at Somerset South. Occupancy rates are up, too. Somerset North, which opened two years ago today, is 100 percent leased. Somerset South is 90 percent leased with new clients, such as Cartier, P.F.

Chang China Bistro and BOSS Hugo Boss SHOPs, signing up daily. In contrast, the average occupancy rate at a mall is 85 percent, according to International Council of Shopping Centers (ICSC). In sum, the mall has fulfilled its daring original intention: to create, in a suburban setting, a social gathering place equivalent to a traditional downtown district. "Somerset Collection is doing phenomenal," said Nathan Forbes, a principal in ForbesCohen Properties, the managing partner of the center. "Sales have exceeded our projections." Shopper Tina Balagot, an Auburn Hills resident, said much of the success can be attributed to the tenant mix.

More than 60 percent of the stores have their only Michigan location in the mall. "It's clean, it's huge and there is such a variety of stores with a large selection of unique items," she said. Before Somerset North opened, she rarely set foot in the Somerset Collection. "I used to go to Oakland Mall," she said. "Somerset Collection South was always too expensive for me, so the addition of North made the mall accessible to me." Somerset North has attracted other fans besides Balagot.

The ICSC honored Somerset Collection North with a design award. Forbes said developers from around the world often visit the center to study the design and the layout. Somerset is one of the few malls with a successful third floor, and the three-level design was originally seen by some critics as a significant risk. "Most tenants want to be on the first or second floor," said Malachy Kavanagh, spokesman for ICSC. "Those on the third floor don't typically do well." But Somerset North shoppers spend more money on the third on the building since 1948, Mario Lelli.

He is a fit 85 years old, but I'm not supposed to tell you that. "Put down 79," says Mario, a widower who swims at least a half-mile every day at a health club in Oakland County. "It looks better." OK. That settled, my 79-year-old lunch companion and I sit down with Passalacqua at Ameche's old table in the corner of the main dining room and Mario tells his energetic successor that he likes what he sees, 18 years after selling to Passalac-qua's father, Frank, who has since left to run Carl's Chop House. Please see PEPPER, Page 4C level than anywhere else, Forbes Auto lobbyists consider merger court, Warner Bros.

Studio Store, FAO Schwarz, Baby Gap and other family attractions. Although he wouldn't break down the sales by floors, Forbes said the entire Somerset Collection has sales of more than $500 per square foot, almost double the industry average of $291 per square foot. Somerset's success has proved bountiful for the rest of Troy as well, said Jeff Kaczmarek, director of community and economic development for Oakland County. "It helped put us on the radar screen and helped with the perception of Troy and Oakland County," he said. In addition to bolstering the city's image, Somerset is pouring money into the economy.

In 1995, the property on which Somerset North now stands generated a mere $289,326 in taxes. In 1998, the city collected more than $5.2 million in taxes from it. Home and condominium owners in Troy have benefited, too. The average state equalized value of a home in 1996 was $75477. In 1998, it surged to $93,316.

Somerset Collection Size 1,440,000 square feet total Somerset North: 940,000 square feet Somerset South: 500,000 square feet Stores 181 in the Collection Somerset North: 112 stores Somerset South: 69 stores Opened Somerset South 1969 Somerset North 1996 Parking 7,000 spaces Acreage 68.5 acres Sales Of stores that have been opened at least a year Somerset North: 12'A percent over the year-ago period Somerset South: up ll'A percent over the year-ago period Average customer expenditure in 1997: $149.76 Average customer expenditure from January through June 1998: $154.57 Yule Donald, left, tries on a jacket in Saks Fifth Avenue. Salesman Craig Vamvas checks the fit. Somerset South shops upgraded and expanded Daimler-Chrysler deal prompts talks among rivals. By Kenneth Cole Detroit News Washington Bureau WASHINGTON Chrysler pending merger with German luxury carmaker Daimler-Benz AG could inspire another even more astonishing business combinatioa Under consideration is an unlikely marriage between the top lobbying agency for the Big Three the American Automobile Manufacturers '-i 1' opened two years ago, there were dire predictions that the new mall would serve mostly to steal customers from the older facility. Mall developers sought to head off that possibility by making certain the twin malls were different in offerings and flavor.

The strategy tappears to have worked. Other improvements include: Expanding Saks Fifth Avenue by 40,000 square feet and building a parking structure. Both projects will be completed in November. Expanding Banana Republic to accommodate furniture and moving it from Somerset North to Somerset South. The renovation of Crate Barrel into a multilevel structure to accommodate furniture.

Adding J. Peterman Michigan's only location, to the store lineup. "I enjoy the south side," said shopper Judith Darin of Bloom-field Hills. "It's like an old friend." By Rene Wisely The Detroit News TROY singer Yule. Donald has traveled to a lot of cities, but the Houston resident had never seen anything quite like the 550-square-foot Men's Clothing Fitting Complex at Saks Fifth Avenue in the Somerset Collection South.

It features a well-stocked wet bar, leather chairs, a fireplace, newspapers from around the world, television sets tuned into sports and the stock market report and fitting rooms. "I feel like I am at a country club," Donald said. The Fitting Complex is just one of many changes that Somerset South has made since ForbesCohen Properties, the managing partner of the center, turned its attention to refining 29-year-old Somerset South after opening Somerset North two years ago today. When the North collection Card the international economy growing more interdependent." The heads of both lobbying outfits acknowledged a fusion of domestic and foreign automakers into one trade group is a real possibility. Influencing the idea, they said, is the proposed Daimler-Chrysler merger announced in early May.

"That merger was for the US. auto industry like the Berlin Wall falling down," said Philip Hutchinson, president and chief executive officer of the AIAM. Earlier this decade the Big Three automakers booted several foreign automakers out of the former Motor Vehicle Manufacturers Association. "The attitude was 'We're the home team and as the home team, let's kick out all these Hutchinson said. "But the Daimler-Chrysler merger reflects how automakers in other parts of the world affiliate with each other and has forced (the Big Three) to wake up." AAMA bylaws preclude Chrysler's membership if it proceeds with its merger with Daimler-Benz.

That would leave only General Motors Corp. and Ford Motor Co. in AAMA a scenario also under consideration. But "how can AAMA go on as a two-legged stool?" Hutchinson asked. Andrew Card, AAMA president and chief executive officer, acknowledged "it's difficult to have an association with only two members." Among other things, he said, such a setup "would invite questions regarding anti-trust laws" since GM and Ford control more than 50 percent of the U.S.

market. "There would be fear of (GM and Ford) meeting to set prices and limit products to drive out competition," Card said. Please see A UTO, Page 4C 1 'i-fr I'M 1-1 Tina Balagot checks out stores on other levels of Somerset North. Shopping at the expanded Crate and Barrel in Somerset South are Judith Darin, left, and her daughter, Anna Darin. Bonds, CDs afford refuge from volatile market (AAMA) and its sworn enemy, the Association of International Automobile Manufacturers (AIAM).

Tje international group represents virtually every foreign car company doing business in the United States. If realized, the alliance would underscore the monumental sea change that's taken hold of the auto industry the past six months: Increased cooperation and collaboration among fierce competitors whenever possible. The issue is expected to be discussed in detail at a Sept. 10 meeting of the AAMA governing board. "It's more evidence of our global political economy," said Sam Kazman, general counsel of the Competitive Enterprise Institute, a free market think tank in Washington, D.C.

"With a global economy, you get some globalization of politics as well." Naota Amaki, the consulate general of Japan in Detroit, concurred, adding: "This kind of movement is inevitable with $100,000, CDs are simple and reliable, but current rates around 5 percent are modest and experts do not see them rising any time soon. For investors seeking more growth potential, some experts suggest foreign stocks. European stocks have done well over the past year, and some analysts see further opportunity there as governments ease controls on business. Some think Asia is ripe for bottom fishing, though others think the bottom remains a long way away. By Albert B.

Crenshaw The Washington Post After becoming accustomed to doubling their -money in the stock market every few investors who are growing jittery about Wall Street's gyrations might be looking for an exit strategy. But the problem they face is where to put their cash. Now, in addition to the traditional refuges of good-grade corporate and municipal bonds and US. Treasury securities, investors owed, if the bonds are held to maturity. Treasuries are currently paying from just under 5 percent to a bit over 5.5 percent, depending on length of maturity.

Interest on treasuries is exempt from state and local taxes. High-grade cor-porates are paying 6 to 6.5 percent, and tax-exempt municipal bonds, issued by state and local governments, are around 5 percent. Another very safe alternative is bank certificates of deposit. Insured tjy the government up to er returns will prefer another. If the market loses ground or turns flat fof a prolonged period, there are a number of options.

The traditional refuge from stock market volatility has been bonds corporate or government IOUs that pay interest over a fixed period and return the investor's principal at a specific date. When the issuer is the U.S. government or a blue-chip company, chances are quite good investors will get what they are have easy access to foreign stock markets, new types of investments such as mortgage-backed securities, real estate investment trusts and junk bonds. Deciding which to explore depends greatly on why an investor wants out of U.S. stocks.

Those who are quitting while they're aheal and want to preserve gains will want to look at one set of options, while those who are willing to take new risks and are departing in quest of high.