Tanger® (NYSE: SKT), a leading operator of outlet and open-air retail shopping destinations, announced today that it has acquired Bridge Street Town Centre, an 825,000‑square-foot open-air lifestyle center in Huntsville, Alabama, one of the fastest growing markets in the country. The center comprises over 80 retail stores, restaurants, and entertainment venues and serves as the dominant shopping destination in the market.
Tanger acquired Bridge Street Town Centre for $193.5 million using cash on hand and available liquidity. Management expects the center to deliver a first-year return in the mid-eight percent range, with 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 which 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 dynamic tenant mix that includes the market’s only Apple Store and top apparel, footwear and beauty brands including 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 center offers over two dozen restaurants, from national favorites like Cheesecake Factory, Texas de Brazil, and Bravo! Italian Kitchen to regional and local offerings, serving the significant dedicated and transient employee and residential populations. Additionally, the center boasts entertainment venues such as Main Event and the 14-screen Cinemark Bridge Street and XD, the top producing theater in the state.
Rated one of the Top Places to Live in the U.S., Huntsville is a technology and military hub. Nicknamed ‘The Rocket City,’ Huntsville is home to the U.S. Space and Rocket Center and serves as an important location for the U.S. military, space exploration technology, biotechnology, manufacturing, and information technology industries. With more than 40 Fortune 500 companies, the city boasts a durable and dynamic economy with a diversity of economic drivers spurring new residential and office developments in the area. Bridge Street Town Centre is ideally located within Cummings Research Park, the second largest research park in the U.S., and proximate to Redstone Arsenal, a 38,000-acre federal research, development, testing and engineering military base. The center is part of a larger mixed-use development that includes more than 500 hotel rooms, over 240 multifamily units with 300 more planned, and a fully leased 144,000-square-foot office tower, which are separately owned by other parties.
The acquisition of Bridge Street Town Centre, Tanger’s 39th property, is the company’s third center addition this quarter, following the grand opening of Tanger Nashville in October and the acquisition of Asheville Outlets in early November.
The company funded the recent Huntsville and Asheville acquisitions totaling $263.5 million through cash on hand and draws on the company’s credit facility. Additionally, 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.
For more information, please see our investor website at investors.tanger.com or visit tanger.com/Huntsville.
About Tanger®
Tanger Inc. (NYSE: SKT) is a leading owner and operator of outlet and open-air retail shopping destinations, with over 42 years of expertise in the retail and outlet shopping industries. Tanger’s portfolio of 38 outlet centers and one open-air lifestyle center comprises over 15 million square feet well positioned across tourist destinations and vibrant markets in 20 U.S. states and Canada. A publicly traded REIT since 1993, Tanger continues to innovate the retail experience for its shoppers with over 3,000 stores operated by more than 700 different brand name companies. For more information on Tanger, call 1-800-4TANGER or visit tanger.com.
