Tanger acquires North Carolina center for $70 million
Tanger Outlets has expanded its portfolio to 38th centers via an acquisition.
The company has acquired Asheville Outlets in Asheville , N.C., as part of its growth strategy in an all-cash, off-market transaction of $70 million. It is Tanger's second outlet center in North Carolina, and the second fully-owned addition to Tanger's portfolio this quarter, following the grand opening of Tanger Outlets Nashville in Tennessee last month.
The 382,000-sq.-ft. Asheville Outlets has a 95% occupancy rate. Anchored by Sportsman’s Sarehouse and Dillard’s Clearance center, its tenant mix of 70 stores includes Nike, Under Armour, American Eagle, Coach and J.Crew. In line with Tanger’s current initiative to add home goods brands to its tenant lineups in certain locations, Ashville Outlets also houses West Elm, Crate & Barrel and Le Creuset.
“A lot of our centers are in tourism locations in the Southeast, but they’re also places where people live, work and dine," Tanger’s executive VP of leasing Justin Stein told Chain Store Age earlier this year. "So we set out on a diversification strategy and the number of home goods retailers in our centers has skyrocketed."
Tanger will officially transition the center to Tanger Outlets Asheville in early January 2024. The company expects its newest shopping center to deliver a first-year return in the mid-eight-percent range, with potential for additional growth over time.
Located near Blue Ridge Parkway, The Biltmore Estate and the North Carolina Arboretum, Asheville Outlets was fully redeveloped and converted by the seller in 2015 from an indoor regional mall to the open-air outlet shopping center it is today.
"Asheville is a dynamic and growing market with outsized potential," said Tanger CEO Stephen Yalof, president and CEO of Tanger. "We will drive additional value by increasing center productivity through selective re-merchandising, elevating the center's food and beverage offerings and adding high-performing retail partners."
Tanger's centers, which comprise over 14 million square feet, are located in 20 states and in Canada and are leased to over 2,900 stores operated by more than 700 different brand name companies.