Tanger®, a renowned operator of outlet and open-air retail shopping destinations, has embraced the holiday spirit with its recent acquisition of Bridge Street Town Centre in Huntsville, Alabama. This 825,000-square-foot open-air lifestyle center is not only a market dominator but also a festive addition to Tanger’s portfolio.
Unwrapping Bridge Street Town Centre
In a strategic move, Tanger acquired Bridge Street Town Centre for $193.5 million, utilizing cash on hand and available liquidity. This acquisition aligns seamlessly with Tanger’s external growth strategy, adding a vibrant touch to its diverse retail offerings.
Key Highlights:
- Market Dominance: Bridge Street Town Centre stands tall as the dominant shopping destination in Huntsville, one of the fastest-growing markets in the country.
- Dynamic Tenant Mix: With over 80 retail stores, restaurants, and entertainment venues, the center boasts an impressive tenant mix. Notable brands include Lululemon, Sephora, Lovesac, and the market’s only Apple Store.
- Strategic Location: Nestled within Cummings Research Park, the second-largest research park in the U.S., and in proximity to Redstone Arsenal, the center benefits from the city’s thriving technology and military hub.
Tanger’s Festive Investment Approach
Stephen Yalof, President and CEO of Tanger, expressed enthusiasm about this acquisition, stating, “The addition of Bridge Street Town Centre is a natural extension of our capabilities and consistent with our long-term strategy of investing in dominant open-air retail centers.”
Financial Insights:
- Investment Return: Management expects the center to deliver a first-year return in the mid-eight percent range, showcasing the financial prudence behind this festive investment.
- Continued Growth: Tanger’s acquisition spree continues, with Bridge Street Town Centre marking the company’s third center addition this quarter. It follows the grand opening of Tanger Nashville and the acquisition of Asheville Outlets.
- Strategic Financing: The company funded the Huntsville and Asheville acquisitions totaling $263.5 million through cash on hand and draws on the company’s credit facility. In addition, Tanger raised gross proceeds of $57.5 million through its at-the-market (ATM) equity program during the fourth quarter.
Huntsville: A Winter Wonderland for Investments
Rated as one of the Top Places to Live in the U.S., Huntsville adds a touch of magic to Tanger’s portfolio. With a robust economy fueled by more than 40 Fortune 500 companies, the city provides a promising backdrop for Tanger’s strategic investments.
Unique Features of Huntsville:
- Technology Hub: Nicknamed ‘The Rocket City,’ Huntsville is a technology and military hub, home to the U.S. Space and Rocket Center and numerous industries, including space exploration technology, biotechnology, and information technology.
- Economic Diversity: The city’s durable and dynamic economy, coupled with outsized residential and tourism growth, positions it as a prime location for retail centers like Bridge Street Town Centre.
- Strategic Location: The center’s location within Cummings Research Park and proximity to Redstone Arsenal adds to its appeal, contributing to the overall success of Tanger’s investment strategy.
‘Tis the Season for Strategic Acquisitions
As Tanger unwraps the gift of Bridge Street Town Centre, it underscores the company’s commitment to creating value and embracing the festive spirit in retail investments. The holiday season has brought not only joy to shoppers but also a new gem in Tanger’s crown, marking a celebratory finale to 2023.
For more information on Tanger’s festive acquisitions and its innovative approach to retail, visit Tanger’s Investor Website or explore the Huntsville addition at tanger.com/Huntsville.
About Tanger®: Tanger Inc. (NYSE: SKT) boasts over 42 years of expertise in the retail and outlet shopping industries. With a portfolio of 38 outlet centers and one open-air lifestyle center, Tanger continues to innovate the retail experience, providing shoppers with over 3,000 stores operated by more than 700 different brand name companies. As a publicly traded REIT since 1993, Tanger’s commitment to excellence is evident in its well-positioned properties across tourist destinations and vibrant markets in 20 U.S. states and Canada.
Safe Harbor Statement: This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company encourages investors to review its filings with the SEC, as they identify additional factors that could cause actual results to differ from those contained in forward-looking statements. The Company does not undertake any obligation to update these forward-looking statements, except as required by law.
Contact: Tanger Inc. Investor Relations Phone: 1-800-4TANGER Website: investors.tanger.com
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