The initial 260,000-sf outlet shopping center opened in October 2000. More recently, pads for a 7,000-sf TGI Friday's and a 40,000-sf, nine-screen movie theater were added under ground leases, and approvals were obtained for a 200,000-sf expansion.
Gary Skoien, Horizon's president and CEO, tells GlobeSt.com, "We absolutely intend to construct the expansion. We're making sure the design in place is the right layout and will probably develop it in phases, beginning with approximately 50,000 sf. We're looking at a 2008 opening."
He estimates the full expansion will cost between $40 million and $50 million. The existing center is well over 90% leased, and has been consistently so from the beginning. Rent rates, Skoien says, "are in the low $20s per sf, triple net. We have real strong interest from three or four prospective tenants for the expanded space," he adds and says they are outlet stores.
"This was an opportune time to sell Gettysburg Village because managing this type of asset is no longer core to our operating strategy," says Ken Balin, president and CEO of AMC Delancey. The company has shifted from owner/operator to a provider of equity capital and resources to JV operating partners. One example is a senior living facility in Hershey with Traditions Development Corp. Balin tells GlobeSt.com, "We expect to have concluded our transition by May 1."
Andrew Kleeman, the company's VP of asset management, points to the $125-million renovation and expansion of Gettysburg National Military Park on the center's doorstep. "The timing is perfect to pull the trigger on the village's phase II expansion," he says. "With the new federal visitors center under construction and several new full-service hotels, Gettysburg is rapidly evolving from a day-trip destination to a world-class historic vacation destination."
In addition to the Gettysburg acquisition, Horizon is opening a 400,000-sf center in El Paso, TX this October. It also recently acquired outlet centers in Wisconsin, Indiana and Washington and has developments underway in Oklahoma City, Omaha and Laredo, TX.
Richard Frolick, EVP of CB Richard Ellis, represented AMC Delancey in the sales transaction. Horizon spoke for itself.
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