(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)
GREENSBORO, NC-Tanger Factory Outlets has closed on the purchase of the two-thirds it did not own of a joint venture in nine outlet centers from partner Blackstone Real Estate Advisors for $282.5 million. The two firms acquired the properties in December 2003 from Charter Oak Partners for $491 million.
As a result of the deal, the total amount of square footage in Tanger's portfolio has jumped from 4.9 million sf to 8.2 million sf. The REIT currently owns 33 centers in 22 states across the country.
Tanger funded the buy with the sale of three million common shares at $27.09 each, $250 million of 6.15% senior unsecured notes due Nov. 15, 2015, and the issuance of 2.2 million of preferred shares at a price of $25 each. Excess proceeds from the offerings were used, in part, to prepay a $77.4-million mortgage.
The outlets are in Rehoboth, DE; Riviera Centre-Foley, AL; Myrtle Beach, SC; Park City, UT; Hilton Head, SC; Lakes Region-Tilton, NH; Lincoln City, OR; Westbrook, CT; and Tuscola, IL. Tanger, which currently leases and manages the centers under its company, has a number of expansion opportunities at the properties, said Steven Tanger, the company's president and COO, during a conference call when the deal was announced in August.
Tanger executives said during the call that since the company has managed the nine outlets, sales per-sf have jumped from $280 to $295, and occupancy rates have risen from 93% to 94%. Expansion opportunities are also a possibility at the properties, they say. Tanger has two expansions underway in its portfolio. The company is adding 46,400 sf to its center in Locust Grove, GA, as well as 21,000 sf to its property in Foley.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
