OKLAHOMA CITY-CBL & Associates Properties Inc. has formed a joint venture with Horizon Group Properties Inc. to develop The Outlet Shoppes at Oklahoma City. The 350,000-square-foot project is now under construction, and when completed in summer 2011, it will be the only outlet center in the state and within a 145-mile radius.
The Outlet Shoppes at Oklahoma City marks Chattanooga, TN-based CBL’s entry into the world of outlet centers, according to Michael Lebovitz, executive vice president of development and administration. “We’ve always watched [the outlet center sector] and thought it could be a potential growth area for us,” he tells GlobeSt.com. “As lines have blurred between traditional and outlet retail, we felt this project was a great opportunity for us.”
CBL and North Shores, MI-based Horizon have both contributed equity to the project and are co-developing it. Horizon is responsible for leasing and management.
CBL plans to disclose the project’s price tag when it announces its third quarter earnings in a couple of weeks. In the meantime, the mall REIT announced that it received a $48.9 million construction loan commitment from U.S. Bank for The Outlet Shoppes at Oklahoma City. The loan will have an initial term of three years with two one-year extension options.
The Outlet Shoppes at Oklahoma City is already more than 80% leased to some of the best known outlet center tenants including Saks Fifth Avenue Off 5th, Nike, Tommy Hilfiger, Banana Republic, J. Crew, Brooks Brothers, Coach and Guess? .
Situated on 65 acres at the intersection of Interstate 40 and Council Road, The Outlet Shoppes at Oklahoma City is located eight miles for downtown Oklahoma City. “The project has a terrific location with excellent centrality and proximity to the rest of the market,” Lebovitz says. “It has great visibility off Interstate 40 and is within easy driving distance to a major university.”
Lebovitz notes that college students are “loyal” shoppers of outlet centers. Moreover, Oklahoma’s popularity as a tourist destination – it attracts more than 6 million visitors annually – offers another large base of outlet shoppers.
The Outlet Shoppes at Oklahoma City will contribute to the area's local economy by creating new jobs and generating sales tax revenues. Once complete, the center is estimated to create more than 1,000 new jobs for the community and will generate more than $110 million in annual sales, providing approximately $4 million of incremental local sales tax revenue, according to Horizon.
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