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CBL & Associates Properties, Inc. (NYSE: CBL), today announced that it had acquired interests in The Outlet Shoppes at El Paso in El Paso, TX, and The Outlet Shoppes at Gettysburg in Gettysburg, PA. The operating outlet centers are owned and managed by Horizon Group Properties and its affiliates.
CBL has acquired a 75% interest in The Outlet Shoppes at El Paso and a 50% interest in The Outlet Shoppes at Gettysburg, for a total investment of $108.7 million. The total investment includes a cash consideration of $38.2 million, as well as the assumption of $70.5 million of debt, which represents CBL’s share.
“This acquisition allows us to grow our presence in the outlet center industry by investing in two established and successful centers,” said Stephen Lebovitz, president and chief executive officer for CBL. “With our expanded presence, outlet centers will provide an increasing source of growth for the CBL portfolio. Our partnership with Horizon has already been extremely encouraging, both with the outstanding performance of our center in Oklahoma City and with our new development start near Atlanta. We are excited to expand our commitment to this fast-growing format.”
CBL currently owns a 75% interest in The Outlet Shoppes at Oklahoma City in Oklahoma City, OK, which opened 100% leased in August 2011. The 350,000-square-foot outlet center features Saks Fifth Avenue OFF 5TH, Nike, Tommy Hilfiger, Banana Republic, Brooks Brothers, Coach, Guess?, J. Crew, Michael Kors and more. The Outlet Shoppes at Oklahoma City is the only outlet center in the state of Oklahoma and the only outlet center within a 145 mile radius.
CBL is also a 75% partner in the development of The Outlet Shoppes at Atlanta in Woodstock, GA, located in a northern suburb of Atlanta. The 370,000-square-foot development is currently more than 70% leased or committed with key retailers such as Saks Fifth Avenue OFF 5TH, Nike, J. Crew, Nine West, Brooks Brothers, Johnston & Murphy, Levi’s, Skechers, Chico’s, Guess?, Michael Kors, Puma, Under Armour and more. Construction is slated to begin this spring, with a late summer 2013 opening.