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.
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