Tanger, Inc. a real estate investment trust headquartered in Greensboro, NC, that invests in shopping centers containing upscale outlet stores, acquired Bridge Street Town Centre, an 825,000‑square-foot open-air lifestyle center in Huntsville, AL. The center comprises over 80 retail stores, restaurants and entertainment venues and is the dominant shopping destination in that market.
Tanger acquired Bridge Street Town Centre for $193.5 million with cash on hand and available liquidity. Management expects the center to deliver a first-year return in the mid-eight percent range, with the potential for additional growth over time.
“We continue to leverage the strength of our retail operating, leasing and marketing platforms to create value, both in the outlet channel and through selective investments in other complementary open-air retail destinations,” said Stephen Yalof, president and CEO of Tanger. “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 in markets that benefit from outsized residential and tourism growth.”
Bridge Street Town Centre, Tanger’s first open-air lifestyle center, is over 93 percent occupied, with a tenant mix that includes the market’s only Apple Store, Lululemon, Sephora, Lovesac, Dry Goods, Victoria’s Secret, Athleta, Anthropologie, Altar’d State, and Ulta, as well as several larger format retailers including Barnes & Noble, Dick’s Sporting Goods, Old Navy, H&M, and Belk.
The acquisition of Bridge Street Town Centre, Tanger’s 39th property, is the company’s third center addition this quarter, following the opening of Tanger Nashville in October and the acquisition of Asheville Outlets in early November.
The company funded the Huntsville and Asheville acquisitions totaling $263.5 million with cash on hand and draws on the company’s credit facility. During the fourth quarter through November 30, 2023, the company raised gross proceeds of $57.5 million through its at-the-market (ATM) equity program, selling 2.3 million shares at an average price of $25.16 per share.
Photo courtesy of Tanger
