Tanger Outlet Center By Simon

[sevfiv]

Simon bought up a 55-acre plot where the residential community "Lago Mar" was supposed to be built..

Rothstein said Premium Outlets is preleasing the center. She declined to name potential tenants but said interest had been strong.

“We are excited about the interest our merchants have in the project,” Rothstein said. “Typically, we announce stores much closer to opening.”

The center would offer a mix of product categories, including apparel and shoes, fashion accessories, leather goods, home furnishings and specialty retail.

Outlet centers differ from regional malls such as Baybrook Mall and Mall of the Mainland because manufactures sell directly to the public and promote discounts on merchandise.

Successful centers such as Katy Mills and The Mills are considered shopping destinations, boosting tourism in their home cities.

The center is projected to generate more than $120 million in yearly retail sales, $10 million in sales tax yearly and $1 million in property tax revenues, Simon officials said.

http://galvestondailynews.com/story/204274

[LTAWACS]

Texas City is a lot closer to me than GlenWood Pines out in the middle of nowhere on 290. Ugh.

[houstonartstudent]

Simon bought up a 55-acre plot where the residential community "Lago Mar" was supposed to be built..

http://galvestondail...om/story/204274

I wonder why they never mentioned the Houston Premium Outlets in the article, since it looks like it will be an exact duplicate...yet they kept mentioning Katy Mills and other Mills properties. I guess they want people from Galveston to think this is a "first" for the region. Still good news though!

[asubrt]

Here's the Chronicle link, it pretty much says the same thing...

http://blogs.chron.com/primeproperty/2011/01/new_outlet_mall_planned_for_te.html

It'll be nice to have some decent shopping somewhere near Galveston.

[Fringe]

Isn't there already an Outlet Mall in that area?

[Urbannizer]

Isn't there already an Outlet Mall in that area?

Yes, Baybrook Mall (League City) and Mall of the Mainland (Texas City). The mall in Texas City, needs to be closed and demolished. Its pretty crappy.

[Urbannizer]

$70M Outlet Center Project Under Way

TEXAS CITY — With earth-moving equipment as the backdrop, nearly 150 people gathered Tuesday at a groundbreaking ceremony for Tanger Outlet Center, a $70 million project billed as one of the largest commercial retail developments under way in the state this year.

Texas City Mayor Matt Doyle, along with Steven B. Tanger, president and CEO of Tanger Factory Outlet Centers, and John R. Klein, president of Simon Premium Outlets, attended the ceremony for the 350,000-square-foot first phase of the project on 55 acres west of Interstate 45 and south of Holland Road.

Tanger Factory Outlet Centers and Simon Property Group announced in July they would set aside rivalry and form a 50/50 joint venture to develop the mall, expected to be catalyst for more development, which some say could pull the center mass of Texas City west across I-45.

Both earlier this year had announced separate plans to enter the market, with Tanger eyeing land in League City. Greensboro, N.C.-based Tanger had planned to build a 95-store outlet mall on 35 acres west of I-45 between the Big League Dreams sports complex and the Bay Colony Shopping Center in League City. But the League City land deal fell through, and Tanger decided to join Indianapolis-based Simon in the unprecedented venture.

The outlet center, which will include 90 stores in its first phase, is expected to be a major tourist draw, similar to malls Tanger and Simon operate in San Marcos, which attract about 10 million visitors a year.

Klein predicted the Texas City mall, which will be branded a Tanger Outlet Center, would generate about $8 million in yearly sales tax revenue, create 400 construction jobs, 900 full- and part-time retail and management positions and be as successful as the San Marcos centers.

“This is what economic development is all about,” Doyle said.

Still, skeptics have questioned whether the outlet center would survive in a market that has been harsh to others. Mall of the Mainland in Texas City, for example, is working to reverse a rash of tenant departures, while Gulfway Plaza, a small outlet mall, has been forced to remarket to attract offices, a bingo hall and other non-outlet tenants.

“As we search the country looking for new markets, we don’t speculate on prospective sites, we do our homework and make informed decisions,” Tanger said. “There are many factors that help us decide where to invest and to develop the best-of-class outlet destination.”

The companies considered the surrounding population, the freeway access, the 100,000 cars that pass the site daily, the diverse economy and the proximity to Houston and Galveston, which lures millions each year to its 32 miles of beaches, Tanger said.

Unlike Mall of the Mainland, which depends on the population within three to five miles, the outlet center draws shoppers from as far as 30 miles away, Tanger said in a separate interview.

But outlet center developers also are racing to cater to a new breed of budget-minded shoppers who want brands names, but not at full price. Outlet mall developers are in expansion mode.

Apparel sales are up 17.9 percent over the last year at factory outlets for the 12 months that ended in April, compared to an increase of just 2.5 percent at department stores, market research firm NPD Group has reported.

Unlike early versions of outlet malls, such as the one in La Marque, the centers have shed the stigma of being “bargain bin” destinations and have more luxury appeal from the likes of Nordstrom, Neiman Marcus and Saks Fifth Avenue, Mike Osorio of retail consultant firm Osorio Group blogged earlier this month.

Economics also are fueling popularity of outlet malls, Osorio said.

“It’s not only lower rents, but common area assessments (no elevators/escalators, no collective heat/air conditioning) and staffing costs are lower than traditional malls,” Osorio said.

Tanger declined Tuesday to divulge more tenants than had already been announced until lease documents are signed.

Last month, the developers reported an initial lineup that includes Banana Republic, Brooks Brothers, Calvin Klein, Gap, Guess, Nine West, Perry Ellis, Polo Ralph Lauren, Puma, Tommy Hilfiger and Under Armour factory outlet stores.

Tanger would neither confirm nor deny rumors that Saks Fifth Avenue planned an Off 5th store for the center. But he said the lineup would be similar to that of Houston Premium Outlet in Cypress, which has an Off 5th along with a Burberry, Michael Kors, Kate Spade and other high-end stores.

The center’s design will be inspired by the history of Texas City, which is celebrating it centennial, and also seaside Galveston.

The mall will be divided into four districts, “where shoppers will meander through meticulously landscaped promenades, under trellis and bris soleil,” which converge in an open air center court called the Gulf Coast Promenade. A food court will offer indoor and outdoor seating.

Tanger Outlet Center in Texas City is expected to open in the fall next year.

http://galvestondailynews.com/story/254650