(April 5, 2019) Ocean City’s outlet mall on Route 50 has a new owner for the first time in a decade.
Tanger Factory Outlet Centers Inc., has sold the Ocean City location and three other retail plazas to Chicago, Illinois-based partners Singerman Real Estate and The Outlet Resource Group for an undisclosed price. Tanger Outlets announced the sale netted $130.5 million in gross proceeds.
Tanger Outlets Ocean City, which reportedly was owned by Tanger Factory Outlet Centers Inc., for nearly 10 years, joins retail centers in Nags Head, North Carolina, Williamsburg, Iowa and Park City, Utah, in being renamed as part of the transaction. The 199,000-square-foot Ocean City location now is named Outlets Ocean City, with “formerly Tanger Outlets” remaining as part of the name for a 90-day period.
Singerman Real Estate and The Outlet Resource Group own six outlet centers nationwide totaling 1.5 million square feet, with other locations in Oklahoma City, Oklahoma, and Lincoln City, Oregon.
“The collection of assets, individually and collectively, complements our current portfolio with centers that have strong tourism draws,” The Outlet Resource Group Principal Lisa Wagner said in a statement released Monday.
“These are premier shopping destinations, and we look forward to building upon improving the experience for shoppers and retailers.”
The Outlet Resource Group will oversee leasing and marketing, according to the statement, while Avison Young, of Toronto, Ontario, will serve as property manager.
When asked about the future of stores at the Ocean City location, Wagner said, “Our first order of business is to deploy a marketing program specially crafted for the center to generate more traffic and sales, which will stabilize the existing tenants in the center.”
However, Outlets Ocean City’s new website indicates the upcoming addition of nationwide retail stores Forever 21 and Michael Kors.
Meanwhile, officials from Tanger Factory Outlet Centers are focused on what Chief Executive Officer Steven B. Tanger called the company’s “longer-term growth profile of the portfolio” by “strengthening the overall quality” and “reducing the average age” of their overall assets.
The West Ocean City location has 32 stores — or in contrast, approximately 100 fewer than Tanger Outlet’s location in Rehoboth Beach, Delaware.
In a statement released Monday, Tanger said the sale of these four locations and nine others, which have sparked a total of $402 million in gross proceeds, “will more than offset the expected short-term earnings dilution.”
These four locations, Tanger said, “are not expected to produce the long-term growth in cash flow that we anticipate from our core portfolio. Our dividend remains well-covered even with the sale of these assets.”
However, the new ownership group sees potential in Outlets Ocean City, Outlets Nags Head, Outlets Park City and Outlets Williamsburg.
“We are very excited to contribute something positive to these communities. We will focus on being front and center in each market and being good citizens,” said Wagner, whose company, according to the statement, plans to forge “partnerships with neighbors and local businesses.”
“We see this transaction as a unique opportunity to acquire high-quality properties in strategic markets,” Singerman Real Estate Principal Steve Duncan said. “We are very focused on further enhancing the shopping experience and creating value for customers, retailers, and the community as a whole.”