Tanger has extended its streak of retail property acquisitions by purchasing Legends Outlets, a 690,000-square-foot open-air outlet center in Kansas City, Kan., for approximately $130 million.
The acquisition of Legends Outlets represents Tanger’s entry into the state. Since 2022, Tanger has acquired six open air centers around the country, including four outlet centers. The company also built and opened an outlet center in Nashville in October 2023.
“I remember the Legends center when it was first built. I’ve aways liked it. It’s the scale, it’s one of our largest outlet centers but it’s quite manageable, and its in a rapidly growing part of Kansas,” Stephen Yalof, president and chief executive officer of Tanger, told WWD.
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He also pointed out that the center anchors Village West, a 1,500-acre master-planned community which is considered the state’s top tourist destination. Village West is occupied by the NASCAR-owned Kansas Speedway, Hollywood Casino, Azura Amphitheatre, Great Wolf Lodge, Margaritaville Hotel, the National Agriculture Center and Hall of Fame, and the HomeField KCK youth sports complex, as well as the Compass Minerals National Performance Center soccer training facility and Children’s Mercy Park stadium for soccer. The area continues to grow rapidly, with Mattel Adventure Park, Topgolf, and the state’s first Bucee’s under development, as well as additional hospitality, entertainment, and residential projects.
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“The destination draws from hundreds of miles,” Yalof said.
With the addition of Legends Outlets, Tanger now has a portfolio of 38 outlet centers and three open-air lifestyle centers comprising more than 16 million square feet in 22 states and Canada. Legends Outlets will be renamed Tanger Kansas City at Legends.
The Greensboro, N.C.-based real estate investment trust used available liquidity and assumed a $115 million commercial mortgage-backed security loan that matures in November 2027 to close the deal.
In conjunction with the transaction, Tanger settled approximately $70 million of previously issued forward equity. The company estimates the center will deliver an 8 percent return during the first year, with potential for additional investment and growth over time.
Legends is the only outlet center in Kansas. Located at I-70 and I-435, Legends is 93 percent occupied and features more than 100 stores, restaurants, and entertainment venues, according to Tanger. Among the tenants are Nike, Aerie, Buckle, Bath & Body Works, Coach, HomeGoods, Sephora, Victoria’s Secret, Under Armour, Puma, Tory Burch, Kate Spade, Michael Kors and Duluth Trading Company.
On the entertainment and food and beverage side, the center also houses AMC Theatres, Dave & Buster’s, Yard House, Panera Bread, Chipotle Mexican Grill, Five Guys and Cold Stone Creamery. There is also a Residence Inn by Marriott where Tanger is the ground lessor, along with the separately owned Legends 267 Apartments. Tanger indicated that the center is designed with an expansive central green space, courtyards, and fountains, and stages a public art series celebrating legendary Kansans.
Over the last few years purchased Tanger Asheville; Bridge Street Town Center in Huntsville, Ala.; Pinecrest Center in Cleveland; The Promenade at Chenal in Little Rock, Ark.; Tanger Outlets Palm Beach, and Legends Outlets.
Additional acquisitions by Tanger are likely. “We are very active in the acquisitions market now,” said Yalof. “Our balance sheet is in extraordinary good shape and we access to capital. There are lot of things being actively marketed, and our team has identified a number of locations that would be great fits in our portfolio and we are going after those off market.”
In his prepared statement on the acquisition, Yalof said, “Legends in Kansas City aligns perfectly with our strategy to acquire well-located, open-air centers supported by strong residential and economic market fundamentals. Anchoring the state’s premier entertainment district, Legends offers a holistic shopping experience, with the brands, dining, and entertainment options today’s shoppers want, surrounded by numerous traffic-driving attractions. We look forward to enhancing the center’s productivity through Tanger’s proven leasing, operating, and marketing platforms.”
