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Outlet Shoppes mall sold for $130 million
The Outlet Shoppes at Oklahoma City mall has been sold for $130 million, company representatives said Monday.
Publicly traded CBL & Associates Properties Inc. has been pleased with the west Oklahoma City property over the last several years, CEO Stephen Lebovitz said in a prepared statement, but the sale will help provide liquidity to reduce debt and fund the company’s redevelopment program.
Venture partner Horizon Group Properties Inc., which led the development, received about $19 million of net sales proceeds in the deal.
The new owners are the Outlet Resource Group and Singerman Real Estate. Outlet Resource Group will oversee leasing and marketing for the 400,000-square-foot center at Interstate 40 and Council Road. Avison Young will handle property management.
“We’re big fans of the Oklahoma City marketplace, love the community and feel like there’s a real opportunity to make a really strong outlet center and make it even better,” Outlet Resource Group principal David Hinkle said. “We see a broad future and we’ve been impressed by the leadership in the city.”
The Oklahoma City Council in 2008 agreed to support the development of the mall project with infrastructure improvements – largely traffic and drainage systems – at a cost of about $2.4 million. The city also agreed to reimburse regional marketing expenses worth up to $5.5 million over 10 years. The incentives were paid out of the city’s Street and Alley and General Obligation Bond Funds and the Oklahoma City Economic Development Trust. The mall opened in 2011.
The city and state governments have been struggling lately as tax revenue declines. Half of Oklahoma City’s tax revenue base depends on sales tax. Hinkle said the company has researched the local economy and researchers think the situation will turn around soon with a strong rebound.
“What’s interesting about the outlet sector of retail is that it’s good when times are great and it was even better when times are difficult,” he said.
Market advisory firm Green Street Advisors recently reported that outlet mall sales have grown to about $50 billion annually as more shoppers are drawn to the promise of bargains outside traditional department store-anchored malls.
The Outlet Shoppes at Oklahoma City features more than 90 shops for name brands such as Nike, Vera Bradley, Polo Ralph Lauren and Under Armour. Outlet Resource Group handles leasing and marketing at more than 65 centers across the U.S. and in Europe. Company representatives said they expect to rebrand the center soon.