Tanger Inc. has continued its buying spree by purchasing Legends Outlets in Kansas City, Kan. for $130 million, the Greensboro company said Tuesday.
Legends Outlets is a 690,000-square-foot, open-air outlet mall — the only such mall in Kansas. It is being renamed to Tanger Kansas City at Legends
The purchase is Tanger’s fourth outlet center purchase since 2022. The company has also bought three open-air shopping centers during that time.
Legends is 93% occupied and has more than 100 stores, restaurants and entertainment venues.
“Legends in Kansas City aligns perfectly with our strategy to acquire well-located, open-air centers supported by strong residential and economic market fundamentals,” Stephen Yalof, Tanger’s president and chief executive, said in the news release.
“Anchoring the state’s premier entertainment district, Legends offers a holistic shopping experience with the brands, dining and entertainment options today’s shoppers want, surrounded by numerous traffic-driving attractions.
As part of the transaction, Tanger takes over a $115 million commerical mortgage-backed securities loan that matures in November 2027.
That kind of loan typically is secured by a commercial property and then securitized into bonds and sold to investors in the secondary market. Key features include: fixed interest rates; non-recourse structure that protects the borrower’s personal assets; and a fixed loan term (often 5 to 10 years) with a balloon payment.
The 1,500-acre Legends center, located at Interstate 70 and Interstate 43, serves as the retail anchor of Village West, the state’s top tourist destination.
Tanger reported in August a 21.3% uptick in second-quarter net income to $29.9 million. Second-quarter revenue was up 9.1% to $140.7 million, while expenses rose 6% to $95.8 million.
Yalof credited the second-quarter profit hike to “marketing strategies with a keen focus on acquiring new and younger customers by adding in-demand retailers, restaurants and entertainment destinations.”
Tanger’s portfolio now includes 38 outlet centers and three open-air lifestyle centers featuring more than 16 million square feet of retail space.
Tanger has outlet centers in Mebane, Blowing Rock and Asheville.
Before the Legends purchase, Tanger’s most recent deal had been paying $167 million in February to purchase Pinecrest, a 640,000-square-foot open-air, mixed-use retail center in an eastern suburb of Cleveland.
Tanger’s acquisition of Pinecrest also includes the center’s upscale onsite residential and office components, but not the AC Hotel on the center’s campus.
In December, Tanger expanded its shopping center reach in the Southeast by paying $73 million for The Promenade at Chenal in Little Rock, Ark. It is the first Arkansas shopping center for Tanger. The Little Rock open-air shopping center contains 270,000 square feet.
In December 2023, Tanger spent $193.5 million to buy Bridge Street Town Centre, an open-air shopping center in Huntsville, Ala. Bridge Street is an 825,000-square-floor retail campus that contains 80 retail stores, restaurants and entertainment venues.
rcraver@wsjournal.com
336-727-7376
@rcraverWSJ
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