After Simon Property Group gave up trying to buy its biggest mall-owning rival, attention shifted to its $2.3 billion purchase of Prime Retail Outlets.
The owner of Tyrone and Gulf View Square malls, Simon will land the teeming Prime Outlets Ellenton and Orlando in a deal sealing control of 77 of the nation's 217 outlet mall properties.
Antitrust regulators are still combing the deal struck seven months ago, but likely not with the same zeal as when Simon had a second offer out to grab General Growth Properties Inc., too. That $11 billion deal would have added 158 more top-tier malls to Simon's 380-mall trophy case, or a third of all the regional malls in the United States.
But it wasn't a lack of cash or regulators that put the kibosh on Simon. It became evident General Growth didn't want Simon once the management and creditors took a lower offer, said David Simon, chief executive.
Locally the Manatee County outlet would bookend Tampa Bay with Tampa Premium Outlets, a counterpart Simon has planned for years at State Road 52 and Interstate 75 in Pasco County.
The Pasco mall was supposed to open in 2008, but was put off until 2011 by the economic collapse. The inactivity energized the rumor mill about sites closer to town. One had Sierra Properties wooing Simon's Pasco project south as part the sprawling Cypress Creek development at SR 56. Meanwhile, a Washington, D.C., developer appeared with plans for a mall-size hotel-retail development at the Florida State Fairgrounds. That harks back to a mid 1990s attempt to put an outlet mall there to feed off the tourists drawn to the Seminole Hard Rock Casino.
It's too late for Simon to open in 2011. The players will not comment on rumors or when the market might recover enough for another outlet mall.
"We are still very committed to Tampa-St. Pete and think it would be an outstanding market for our Premium Outlets concept," said Michelle Rothstein, a Simon spokeswoman. "We hope to have an announcement in the near future."
Shailendra Group, the Atlanta developer that wants to fit the Premium Outlets mall into part of 950 acres it acquired in 2002, heard the rumors.
"I cannot comment," said Ron Weaver, Shailendra's Tampa attorney. "But we do have the best site."
SOURCE: St. Petersburg Times
Friday, June 25, 2010
Wednesday, June 23, 2010
Site work begins on outlet mall in Oklahoma City
The original agreement, signed by the Oklahoma City Council in May 2008, called for the city to spend $2.3 million on infrastructure for the site and sales tax rebates of up to $550,000 a year over a decade as reimbursements for actual expenses.
Michigan-based Horizon Group hoped to open the 340,000-square-foot Outlet Shoppes at Oklahoma City at Interstate 40 and Council Road by fall 2009. Instead, the national economic crash put those plans on hold.
Brent Bryant, the city's economic development program manager, confirmed Friday that the Economic Development Trust is set to review a modified agreement Tuesday that increases the costs of infrastructure from $2,395,000 to $3,937,690. The increase includes $1 million for a road that originally was to be built by Horizon, with the remainder of the increase reflecting revised estimates and not a change in the incentives' scope.
"They were going to build a public street, turn around and dedicate it to the city,” Bryant said. "After 2008, the financing requires less debt and more equity — and this (the city paying for the street) is in response to them requesting more assistance. At the end of the day, this will be a public street.”
Officials with Horizon could not be reached for comment Friday. Bryant said the agreement requires Horizon to close on the purchase of the land, execute a construction contract and show proof of financing by Aug. 31.
Safeguards in the original contract remain, Bryant said. Those safeguards include providing documentation on sales and regional marketing expenses. The $5.5 million allows Horizon to be reimbursed for up to $550,000 in regional marketing costs for each of the 10 years.
Bryant added the reimbursement is structured so that it will not exceed 12.5 percent of sales tax revenues generated by the mall.
About 112,000 cars drive along I-40 at Council on a daily basis.
Alison Oshel, a retail specialist with the Greater Oklahoma City Chamber, said the mall's location and the marketing aimed at regional shoppers will help the local economy. She said the outlet mall will generate new sales taxes for Oklahoma City instead of shifting existing dollars within the city.
"It is extremely important because the outlet mall customer will drive significantly further than any other shopper,” Oshel said. "This is a customer who will not only spend money at the outlet shops; they also will spend money to eat, attend our entertainment venues and perhaps spend a night or two in one of our hotels.”
Oshel noted that only four outlet malls are in the development stage nationwide.
"It's a great location,” Oshel said. "Its proximity to Bricktown and the Adventure District means that the out-of-town customer really can turn what would otherwise have been just a shopping trip into a day or two of entertainment and dining in Oklahoma City. Being just off of I-40 and visible from the highway will also draw from those who would otherwise just drive through town without stopping.”
Currently the closest outlet mall from Oklahoma City is in Gainesville, Texas — a 135-mile drive. The Outlet Shoppes at Oklahoma City is expected to generate 1,000 jobs with $19 million in direct payroll.
SOURCE: NewsOK
Michael Kors opens at The Crossings Premium Outlets
On my prior visit to The Crossings Premium Outlets I noted that the Michael Kors store was under construction. That store is now open.
At the time this space was one of only two vacancies. Now that this store is open, another store is closed and under construction. It appears that the former Final Cut BCBG Max Azria is closed and under construction. It is in the blue section next to Maidenform. In conversations with mall personnel, it appears that this was their clearance store. They have a permanent store just a short distance away (currently next to Pepperidge Farm). Due to their success they are remodeling the Final Cut space which is larger and going to make it the permanent BCBG Max Azria store. No word yet on what will be going into the existing BCBG space.
Additionally, there is a temporary store in the old Book Cellar Space. It is now a temporary Christian Books store.
As an interesting aside, you can see a clear indication of the history of this center in this picture.
The original owners built the mall in phases. Each phase was designated as a color. The Red phase, the Green phase etc. This is still evident on the mall maps. Originally all stores in a particular section had to have signs that matched that sections color. After Premium took over the center they changed this policy. You can now have signs of any color. This is better for the retailers. It allows them to be consistent with their logos and signage. This creates an interesting dynamic in the mall. You can spot the newer stores by their signs. In the above picture you can see all the signs are blue except Rue 21.
Mark Libell
At the time this space was one of only two vacancies. Now that this store is open, another store is closed and under construction. It appears that the former Final Cut BCBG Max Azria is closed and under construction. It is in the blue section next to Maidenform. In conversations with mall personnel, it appears that this was their clearance store. They have a permanent store just a short distance away (currently next to Pepperidge Farm). Due to their success they are remodeling the Final Cut space which is larger and going to make it the permanent BCBG Max Azria store. No word yet on what will be going into the existing BCBG space.
Additionally, there is a temporary store in the old Book Cellar Space. It is now a temporary Christian Books store.
As an interesting aside, you can see a clear indication of the history of this center in this picture.
The original owners built the mall in phases. Each phase was designated as a color. The Red phase, the Green phase etc. This is still evident on the mall maps. Originally all stores in a particular section had to have signs that matched that sections color. After Premium took over the center they changed this policy. You can now have signs of any color. This is better for the retailers. It allows them to be consistent with their logos and signage. This creates an interesting dynamic in the mall. You can spot the newer stores by their signs. In the above picture you can see all the signs are blue except Rue 21.
Mark Libell
Tuesday, June 22, 2010
Simon, Coke ink marketing agreement
Simon Brand Ventures and Coke extended the comprehensive marketing alliance for multiple years, although a news release did not give a specific time period for the agreement. Terms of the agreement were not disclosed.
The effort includes the multi-mall event featuring past "American Idol" finalists.
The agreement will help Coke reach "important demographic groups, especially teens and young adults," said Mikael Thygesen, president of Simon Brand Ventures, in the release.
The nation's largest mall owner and operator in 2009 was the first to feature the Coca-Cola Interactive Video Vender, a touch-screen vending and interactive technology.
SOURCE: Indystar
Mark Libell
16th Annual Pig-N-Whistle Barbeque
It was a perfect day. It was sunny with a comfortable 70 degree temperature. There was a great turn out.
I would like to personally thank David Ober, Jeff Cohen, Ron Simkin and Ed Woods for having such an amazing event.
The Council of Developers of Outlet Centers and Retailers (DOCR) is a not-for-profit service organization dedicated to meeting the needs of those involved in the fast track "value" industry.
If you would like to become a member of the DOCR follow this link:
http://www.docr.net/member.asp
Mark Libell
Monday, June 21, 2010
Opry Mills tenant mix, timeline unclear after historic flooding
One thing is clear: A post-flood Opry Mills will be different, changing the face and character of the 1.2 million-square-foot shopping center that, according to published reports, brought in more than $200 million in revenue in 2009 from regional shoppers and tourists alike. According to the mall’s owner, Indianapolis-based Simon Property Group, the regions’s second-largest mall draws from a population of 570,000 people.
Billy Lyell, a retail-oriented broker with Nashville Commercial Real Estate Services, said the big-box, anchor tenants are more likely to stay put. Smaller stores, though — those around 10,000 square feet — are likely to see a lot of turnover. Lyell estimated that up to 30 percent may not come back.
“Some of your small tenants might use this as an opportunity to get out,” said Lyell, who is representing one such tenant (which he declined to name) in a search for new space.
SOURCE: Nashville Business Journal
Do you have a store in Opry Mills? What do you hear about whats going on? What are your current plans? I would love to hear your comments?
Coach robbery an inside job.
An employee at the Seattle Premium Outlets’ Coach store is among those involved in the May 27 crime, police say. Police became suspicious of Jeremy Jason Laviguer when he dropped his girlfriend off for work Tuesday at the Seattle Premium Outlets. An alert officer spotted Laviguer at the outlet mall driving a white Honda Accord, the vehicle that police suspected was used as a getaway car in the May 27 takeover robbery at the Coach store.
Detectives quickly tracked Laviguer, 26, to a home in Everett. After talking to him, the plot behind the early morning robbery quickly unfolded, officials said. Laviguer was arrested Tuesday. His girlfriend, Lucianna Marie Jones, 22, and Michael W. Hodgen, 26, were placed behind bars Wednesday.
The robbery had occurred before the store opened. Someone rang the bell around 6:30 a.m. for the delivery door at the back of the store. When the manager opened the door, two men rushed in wearing masks and carrying firearms, according to police. One had a handgun and the other had a rifle. The robbers used plastic ties to bind the two employees’ hands, grabbed an undisclosed amount of cash and fled. No one was injured.
Police allege Jones, who worked at the store, mapped out the backroom and showed the men where the safe was kept, according to a police affidavit filed Thursday in Everett District Court. From the outset police believed the holdup was an inside job, Tulalip Police Chief Jay Goss said.
Detective suspected Hodgen’s involvement after checking his MySpace page. A photo showed him holding a handgun similar to the weapon described by the victims.
More than $5,000 cash was found among the three suspects, police said.
The two men allegedly confessed their involvement. Jones invoked her right to remain silent. All three suspects were booked into the Snohomish County Jail for investigation of first-degree robbery, second-degree assault and unlawful imprisonment. The two men were being held in lieu of $75,000 bail, while Jones was ordered held on $50,000 bail.
SOURCE: HeraldNet
Detectives quickly tracked Laviguer, 26, to a home in Everett. After talking to him, the plot behind the early morning robbery quickly unfolded, officials said. Laviguer was arrested Tuesday. His girlfriend, Lucianna Marie Jones, 22, and Michael W. Hodgen, 26, were placed behind bars Wednesday.
The robbery had occurred before the store opened. Someone rang the bell around 6:30 a.m. for the delivery door at the back of the store. When the manager opened the door, two men rushed in wearing masks and carrying firearms, according to police. One had a handgun and the other had a rifle. The robbers used plastic ties to bind the two employees’ hands, grabbed an undisclosed amount of cash and fled. No one was injured.
Police allege Jones, who worked at the store, mapped out the backroom and showed the men where the safe was kept, according to a police affidavit filed Thursday in Everett District Court. From the outset police believed the holdup was an inside job, Tulalip Police Chief Jay Goss said.
Detective suspected Hodgen’s involvement after checking his MySpace page. A photo showed him holding a handgun similar to the weapon described by the victims.
More than $5,000 cash was found among the three suspects, police said.
The two men allegedly confessed their involvement. Jones invoked her right to remain silent. All three suspects were booked into the Snohomish County Jail for investigation of first-degree robbery, second-degree assault and unlawful imprisonment. The two men were being held in lieu of $75,000 bail, while Jones was ordered held on $50,000 bail.
SOURCE: HeraldNet
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