(For more retail coverage, click GlobeSt.com/RETAIL.)
LAS VEGAS-Chelsea Premium Outlets is expanding its 435,000-sf Las Vegas Premium Outlets. The 104,000-sf addition will replace surface parking with structured parking. The $53-million expansion, which will bring 30 new tenants to the development, is slated for a year-end 2007 completion.
Las Vegas Premium Outlets opened in August 2003 and is 100% occupied. The total development cost was $165 million including about $25 million for the land, according to SEC filings. The 35-acre development was a joint venture of Roseland, NJ-based Chelsea and publicly held Simon Property Group of Indianapolis. In October 2004, Chelsea became a wholly owned subsidiary of Simon.
The new retail space will be added on the west (I-15) side of the development. The first parking garage is under construction on the south side of the mall. A second garage will be built on the north side of the mall when the first garage is complete.
The mall's current tenants include A/X Armani Exchange, Coach, Kenneth Cole, Polo Ralph Lauren and Dolce & Gabbana. Chelsea isn't revealing the new tenants just yet. Without going into detail, a Chelsea source tells GlobeSt.com the expansion is occurring because the center is performing well.
Simon's most recent SEC filings don't provide specifics on the performance of Las Vegas Premium Outlets, but did say that its 33 US premium outlet centers on average produced per-sf sales of $453 per sf in the second quarter of 2006, an increase of 6.3% from Q2 2005. Newly signed leases during the quarter averaged $23.78 per sf in base rent, up 4.2%, according to the report.
At the same time it opened Las Vegas Premium Outlets, Chelsea acquired another Vegas outlet mall, the 477,000-sf Belz Factory Outlet World, for $173 million, according to SEC filings. Located near Warm Springs Road and Las Vegas Boulevard South, the center was renamed Las Vegas Outlet Center. Talisman Cos. of Coral Gables, FL, owns the only other major outlet center in Southern Nevada, Fashion Outlets of Las Vegas, which is located near the California border in Primm, NV.
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