Westgate’s owner, the Ellman Cos, is working out a deal with Tanger Factory Outlets Inc. to locate a 400,000-square-foot upscale outlet mall nearby, said Ellman Executive Vice President Tim Wright.
“Should the agreement be finalized, this center would sit on approximately 35 acres along Loop 101 near Glendale Avenue. It is imperative to note that this agreement has not been finalized; the two companies are merely in the discussion phase,” Wright said.
The outlet mall would sit on land at the western edge of Westgate, which currently is undeveloped and used for overflow parking for special events. It would accommodate 75 stores. There is not yet a timetable for possible construction and opening.
Westgate sits adjacent to Jobing.com Arena and University of Phoenix Stadium in Glendale.
Tanger is scouting the Valley for two outlet mall locations. One will likely land east of Scottsdale, on the Salt River Pima-Maricopa Indian Community. The other probably will be in the West Valley.
Tanger malls include outlet stores for retailers and brands including Abercrombie & Fitch, Adidas, American Eagle, Ann Taylor, Forever 21, Nike, Brooks Brothers, Coach, Calvin Klein, Disney Store, Old Navy, Hollister, Charlotte Russe and Talbots.
Landing Tanger would be a big win for Westgate, which has been challenged by the economy and building its retail base in the midst of competition from the Park West development in Peoria, as well as the more established retail corridor in the Arrowhead area of Glendale and Peoria, along Bell Road.
“Tanger Fashion Outlets is a premier, leading retail fashion outlet developer. With the Ellman Cos.’ real estate experience and market knowledge, as well as the support of the city of Glendale, a partnership would be incredibly beneficial to the West Valley,” Wright said.
Tanger spokeswoman Mona Walsh said the Greensboro, N.C.-based mall developer is scouting numerous sites in the Phoenix area, but declined to comment on Westgate.
“We’re looking at a number of locations,” she said.
But a source familiar with the matter said Tanger is close to finalizing a deal at Westgate.
Walsh said Tanger malls usually total 300,000 to 350,000 square feet and accommodate as many as 90 stores. Tanger (NYSE:SKT) already has 34 outlet malls in 22 states, with locations including Barstow, Calif.; Myrtle Beach, S.C.; Fort Myers, Fla.; Branson, Mo.; Terrell, Texas; and Park City, Utah. Tanger also just announced plans for a mall just outside Washington.
Westgate opened in 2006. Its restaurants and the AMC Theatres at the complex have fared well, especially when there are events or games at the arena or stadium. Retail stores have been challenged by the economy and the lack of big-box or department store anchors.
Westgate recently got some good news with the city of Glendale agreeing to pay the National Hockey League $25 million to help cover the Phoenix Coyotes’ 2011 costs and give the city and league another season find a new owner. The Coyotes might have moved to Canada this off-season if Glendale had not agreed to the payment.
Westgate also is home to a DeVry University campus and some offices.
SOURCE: Phoenix Business Journal
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