95-Store Outlet Mall Planned for League City

Looks like the race is on to build an Outlet mall in Galveston County. Just this week, Simon Property Group announced they are going to build an outlet mall in Texas City, dubbed "Galveston Premium Outlets." Then, today, Tanger Factory Outlet Centers announced they are building an outlet mall in League City. The article below was printed in the Galveston Daily News. View the original story here!

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COURTESY PHOTO/Tanger Factory Outlet Centers Inc. An artist’s rendering shows a planned 95-store outlet mall near Interstate 45 and FM 646 in League City.


95-store outlet mall planned for League City

By Laura Elder
The Daily News
Published January 18, 2011

LEAGUE CITY — In what might be the starting gun of a fierce retail race, Tanger Factory Outlet Centers said Monday it planned a 95-store outlet mall near Interstate 45 and FM 646 in League City.

The Greensboro, N.C.-based company said it planned to build the 300,743-square-foot mall on 35 acres west of Interstate 45 between the city’s Big League Dreams sports complex and the Bay Colony shopping center.

The announcement confirming weeks of speculation came just days after another major outlet mall operator — Indianapolis, Ind.-based Simon Property Group — said it planned a 350,000-square-foot center along Interstate 45, south of Holland Road.

Neither Simon nor Tanger officials would comment about whether the county could sustain two major outlet malls, nor would either divulge possible tenants.

Outlet malls differ from regional malls such as the bustling Baybrook Mall and the struggling Mall of the Mainland because manufacturers sell directly to the public and promote discounts on merchandise.

Successful centers typically have a large concentration of discounted versions of popular stores such as Calvin Klein, Coach, Gap, Kate Spade, Kenneth Cole, Nike and Saks Fifth Avenue.

Simon operates successful centers such as Katy Mills in Houston and also Houston Premium Outlets in Cypress. Tanger operates 33 outlet centers, including one in San Marcos.

Last year, Tanger identified 17 markets it considered under served by the outlet industry, officials said.

Along with League City, Tanger plans two malls in Arizona. Sonrisa Development LLC owns the League City land Tanger has under contract.

Outlet stores, which are considered strong tourist draws, are the bright spot in an otherwise dreary commercial real estate landscape during one of the worst downturns in years, Hall said.

Industry observers also contend that outlet malls are outperforming regional malls and strip centers as consumer seek bargains.

When Tanger achieves the pre-leasing threshold of at least 50 percent, it will begin construction, likely by the year’s end, officials said.

Planned Outlet Mall Will House Nearly 100 Stores

The following article was printed in the Galveston Daily News. This can be a great economic boost to Texas City and also to the Dickinson Independent School District. Not to mention the jobs it will create during its construction, and also once it is complete! To see the original article, click this link!

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Photo courtesy of Premium Outlets, An artist's rendering shows an outlet mall planned along Interstate 45, south of Holland Road in Texas City.

Planned Outlet Mall Will House Nearly 100 Stores

By Laura Elder

The Daily News

Published January 13, 2011

TEXAS CITY — Major mall operator Simon Property Group said it plans to build a 350,000-square-foot outlet center at Interstate 45, south of Holland Road, delivering some of the biggest retail news Texas City has had in decades.

Indianapolis, Ind.-based Simon Property Group, which owns successful outlet malls such as Katy Mills in Houston and Grapevine Mills near Dallas, said it had an option to buy 55 acres that were previously part of a plan for Lago Mar, a 7,000-home residential community along the Interstate 45 corridor.

Lago Mar, west of Texas City, was sidelined by lingering real estate market malaise prompting landowners to begin selling off parcels for other ventures.

Developers are calling the proposed mainland mall “Galveston Premium Outlets.” The mall, between Holland Road and Walmart, will house about 100 stores, said Michele Rothstein, spokeswoman for Premium Outlets, the outlet division of Simon Property Group.

Rothstein said Premium Outlets is preleasing the center. She declined to name potential tenants but said interest had been strong.

“We are excited about the interest our merchants have in the project,” Rothstein said. “Typically, we announce stores much closer to opening.”

The center would offer a mix of product categories, including apparel and shoes, fashion accessories, leather goods, home furnishings and specialty retail.

Outlet centers differ from regional malls such as Baybrook Mall and Mall of the Mainland because manufactures sell directly to the public and promote discounts on merchandise.

Successful centers such as Katy Mills and The Mills are considered shopping destinations, boosting tourism in their home cities.

The center is projected to generate more than $120 million in yearly retail sales, $10 million in sales tax yearly and $1 million in property tax revenues, Simon officials said.

The news comes as unconfirmed rumors fly that Greensboro, N.C.-based Tanger Outlet Centers plans a large outlet mall on 20 acres north of Cross Colony Drive and west of FM 646.

La Marque is home to a small outlet mall — Gulfway Plaza, 14047 Delany Road. But Gulfway Plaza, which never had the large concentration of tenants to lure tourists, has found a more profitable purpose by leasing space to a mix of government agencies, professional offices and factory outlet tenants.

It’s been a long time since Texas City has had such big mall news.

Operators of Mall of the Mainland, plagued by tenant departures, last year filed for Chapter 11 bankruptcy protection. Not long after, lender Pacific Western Bank took possession of the property and hired Boxer Property Management, known for turning around distressed properties, to manage and improve operation.

The Premium Outlets has 83 outlet properties in its portfolio — 57 in the United States primarily in or near major metropolitan markets such as New York, Los Angeles, Boston and Chicago and visitor markets such as Orlando, Las Vegas and Palm Springs, Fla.