Simon/Tanger JV Plans 350 KSF Mall in Delaware County

Indianapolis-based Simon Property Group (NYSE:SPG), the nation's largest shopping mall operator and the largest real estate company in the world, has recently formed a joint venture with Tanger Factory Outlet Centers Inc. (NYSE:SKT) of Greensboro, North Carolina to build two upscale outlet centers of equal size in Columbus, Ohio and Charlotte, North Carolina. Both parties would hold a 50% stake in the two centers.

By Adrian Maties, Associate Editor

Simon Property Group Inc. and Tanger Factory Outlet Centers Inc. have formed a 50-50 joint venture to build a 350,000-square-foot upscale outlet center in Delaware County.   The mall will be located immediately southwest of the Interstate 71-Routes 36/37 interchange in Delaware County, about 20 miles north of Downtown Columbus and 11 miles north of Interstate 270. Scheduled to open in time for the 2014 holiday season, the new mall will be branded as Tanger Outlets.

When complete, the center will host about 90 upscale name-brand and designer outlet stores. Simon will develop the site and provide construction supervision while Tanger will be in charge of management services and marketing. The two companies will share leasing duties.

The Delaware County project is one of a series of collaborations between Simon and Tanger, who also announced on Nov. 28 that they plan to open a project of similar size in Charlotte, N.C., before the 2014 holiday season. Most recently, a Tanger Outlets center co-developed by the partners opened last month in Texas City, Texas, on Interstate 45 between Houston and Galveston.

Greater Columbus’ steadily improving job market has boosted household income this year, generating record retail sales and attracting new retailers, according to Marcus & Millichap Real Estate Investment Services Inc. The region’s unemployment rate now hovers between 6 percent and 7 percent.


Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc.

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