Horizon forms joint venture with CBL

CBL & Associates Properties, Inc. announced that it had formed a joint venture with Horizon Group Properties, Inc. to develop The Outlet Shoppes at Oklahoma City in Oklahoma City, OK. Once complete, the 350,000-square-foot project will be the only outlet center in the state of Oklahoma and the only outlet center within a 145 mile radius. The Outlet Shoppes at Oklahoma City is currently under construction with the grand opening scheduled for late summer 2011. CBL and Horizon are co-developing the project with Horizon responsible for leasing and management.

"The Outlet Shoppes at Oklahoma City is a great opportunity for CBL to enter the outlet center business through a new project that will be extremely successful," said Stephen Lebovitz, president and chief executive officer for CBL. "Outlet centers are a natural extension of our retail expertise and provide us with attractive growth potential. This partnership with Horizon, a recognized outlet center developer, will provide us with access to new relationships with outlet center retailers that will also benefit our core mall portfolio."

The Outlet Shoppes at Oklahoma City will feature dozens of the best names in outlet shopping. The project is currently over 80% leased with offerings including Saks Fifth Avenue Off 5th, Nike, Tommy Hilfiger, Banana Republic, J. Crew, Brooks Brothers, Coach, Guess? and more. The project is strategically located on 65 acres at the intersection of Interstate 40 and Council Road.

Lebovitz added, "We are excited to bring outlet shopping to both Oklahoma City and the state of Oklahoma. We look forward to celebrating the grand opening for The Outlet Shoppes at Oklahoma City in 2011."

"CBL is a terrific partner for The Outlet Shoppes at Oklahoma City," said Gary J. Skoien, Horizon's president and chief executive officer. "They have created a reputation in the retail development industry for recognizing true opportunity and we are excited to have them become a part of this outstanding project."

CBL has received a $48.9 million construction loan commitment from U.S. Bank for the project. The loan will have an initial term of three years, with two one-year extension options.

The Outlet Shoppes at Oklahoma City will contribute significantly 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 generate more than $110 million in annual sales.

Oklahoma City lies in the center of the United States at the junction of three major national interstates: I-35, I-40 and I-44. The metropolitan area serves as the entertainment and social capital of the area with professional sports, rodeos and world-class museums. The city is the nation's 29th largest and is the host to over six million tourists a year. Within an hour's drive of the center are three major universities with over 100,000 students and Tinker Air Force Base, one of the world's largest air depots.

SOURCE: MarketWatch