News

Tanger acquires Asheville Outlets

By Bill Moss, Published: November 16, 2023

The Tanger company, a leading operator of upscale open-air shopping centers, announced this week that it has acquired Asheville Outlets, its 38th shopping center, as part of the continued execution of the company's external growth strategy.

Tanger acquired the center for $70 million in an all-cash, off-market transaction, leveraging the company's platform and utilizing its cash holdings and strong balance sheet to create value for all stakeholders. Asheville Outlets is the second fully owned addition to Tanger's outlet portfolio this quarter, following the grand opening of Tanger Outlets Nashville in Tennessee last month.

Asheville Outlets is a 382,000-square-foot, open-air shopping center located in the popular tourist market of Asheville, North Carolina. The established center is currently 95 percent occupied by a diverse mix of brands that includes leading home furnishings providers as well as iconic apparel, footwear and accessories brands. Management expects the center to deliver a first-year return in the mid-eight percent range, with potential for additional growth over time. 

"We are excited to add Asheville Outlets to the Tanger portfolio," Tanger President and CEO Stephen Yalof said in a news release. "Asheville is a dynamic and growing market with outsized potential. Asheville Outlets is the dominant shopping experience in the market and will benefit from the rapidly growing residential population and tourist visits for years to come. As part of the Tanger platform, we will drive additional value by increasing center productivity through selective re-merchandising, elevating the center's food and beverage offerings and adding high performing retail partners."

Asheville Outlets' mix of 70 stores includes top apparel and footwear brands such as Nike, Under Armour, American Eagle, COACH, J.Crew, Vera Bradley, Abercrombie & Fitch, and Bath & Body Works, as well as national home furnishings providers including RH, West Elm, Crate & Barrel and Le Creuset. The center also offers two attractive anchor department stores, including Sportsman's Warehouse and a separately-owned Dillard's Clearance Center.

Asheville Outlets benefits from proximity to the area's top attractions, including the Biltmore Estate, Blue Ridge Parkway, the Grove Park Inn and North Carolina Arboretum. Asheville also boasts a vibrant arts community and renowned music scene and was named the No. 1 Food Destination in the U.S. in 2022 by Travel + Leisure magazine. Earlier this year, the Asheville Regional Airport broke ground on a $400 million expansion of its passenger terminal that will increase capacity by 150 percent to better accommodate the rapidly growing city's more than 12 million annual visitors. To capitalize on Asheville's desirable blend of tourist attractions and outdoor lifestyle, the shopping center at Asheville Outlets was fully redeveloped and converted by the seller in 2015 from an indoor regional mall to the open-air outlet shopping center it is today.

Tanger will officially transition the center to become Tanger Outlets Asheville in early January 2024, leveraging the Tanger name, brand and platform to further strengthen leasing, sales and traffic for the center. Center guests can continue to expect access to community-centric programming and events, which will be expanded to include Tanger's national charitable initiatives such as TangerKids and TangerPink, as well as best-in-class operations for wellness, security and sustainability to support the Asheville community.

Tanger Factory Outlet Centers Inc. (NYSE: SKT), a leading operator of upscale open-air outlet centers, fully or partially owns and/or manages a portfolio of 38 shopping centers in 20 U.S. states and Canada. Tanger's centers comprise more than 14 million square feet and are leased to more than 3,000 stores operated by more than 700 different brand name companies. Tanger has more than 42 years of experience in the outlet industry and has been a publicly traded REIT since 1993. For more information on Tanger, call 1-800-4TANGER or visit tanger.com.