Tanger Factory Outlet Centers, Inc. (SKT) recently acquired Prime Outlets at Jeffersonville from Ohio Factory Stores Partnership, a subsidiary of Simon Property Group Inc. (SPG) for approximately $134 million. The acquisition was funded with borrowings under the company's recently transacted $150 million loan.
The acquired property is the largest outlet center in Ohio and currently includes 90 upscale designers and branded stores in five buildings totaling 410,000 square feet. The center is located on two highways, which provide excellent visibility and easy access to a large residential population.
The shopping center is currently 97.0% leased and more than 90.0% of the space is leased to high quality tenants. With this acquisition, which is their first outlet center in Ohio, Tanger further increases its national presence. The location of the property, combined with the high quality of stores, is a good investment and should generate attractive returns to Tanger's shareholders.
Along with the already existing tenants, most of which are nationally recognized, Tanger expects to add on more brands and introduce marketing programs specifically developed for this center with the purpose of further enhancing the value of the center.
Headquartered in Greensboro, North Carolina, Tanger is a publicly-traded real estate investment trust (REIT). The company, through its subsidiary, Tanger Properties Limited Partnership, engages in acquiring, developing, owning, operating, and managing factory outlet shopping centers.
With the closing of this transaction, the company will operate and own a portfolio of 35 upscale outlet shopping centers in 23 states, totaling approximately 10.7 million square feet, leased to over 2,200 stores that are operated by more than 370 different branded companies.
Tanger currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.
TANGER FACT OUT (SKT): Free Stock Analysis Report
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