Tanger Outlets – Terrell

Price: $20,000,000
Sq. Ft.: 177,800
Cap Rate: 11.09%
Built: 1994
NNN

CLICK HERE TO VIEW OFFERING MEMORANDUM

Tanger Outlets is an industry leader in developing first-class outlet centers, currently operating 39 outlet shopping centers nationally and in Canada.  Tanger Outlets – Terrell is a 177,800-square foot shopping center consisting of approximately 40 stores.  The center is currently 97 percent occupied, the majority of which are national credit tenants, providing an investor a strong tenant base.  Major tenants include Nike, Levi’s, Gap, Old Navy, Reebok, Dress Barn, Rue21, Van Heusen, Hanesbrands, Lane Bryant, Maurices, Justice, Carter, and Hometown Cinema, among others.  The subject property offers upside potential in leasing the remaining 5,800 square feet of vacant space.  Additionally, all current leases, except for Nike, have no remaining options for renewal, providing upside in negotiating market rental rates.

Situated at the crossroads of Interstate 20 and Highway 34, Tanger Outlets – Terrell is strategically located to maximize freeway visibility and access. Interstate 20 is a major thoroughfare carrying traffic to and from East Texas; traffic counts in front of the subject property are approximately 59,300 vehicles per day. Pad sites adjacent to Tanger Outlets include Applebee’s Grill and Bar, Carmona’s Tex-Mex & Cantina, IHOP, Wendy’s, Golden Chick, Holiday Inn Express, and McDonald’s. Other retailers in the surrounding area include The Home Depot, Waffle House, QuikTrip, Starbucks, Buc-cee’s, Taco Cabana, Freddy’s Frozen Custard & Steakburgers, Denny’s, and others. Employees of the nearby AutoZone, Goodyear Tire & Rubber, and Walmart Distribution Centers provide additional traffic to the area.

The city of Terrell is home to more than 17,000 residents, businesses that employ 11,000 workers, as well as the multitude of shoppers and travelers who visit every day. Located in Kaufman County, the city is approximately 25 miles east of Dallas on Interstate 20 and US Highway 80. State Highways 34, 205, and FM 148 provide north-south access. Terrell benefits from its close proximity to Canton First Monday Trade Days, one of the world’s largest flea markets hosting 2.1 million visitors annually. Terrell hosts an annual World War II veterans reunion and air event every October, drawing visitors from around the world.

  • Tanger Outlets is a Respected Industry Leader in the Outlet Shopping Centers
  • 97% Occupied with Strong Historical Occupancy
  • Strong Tenant Base with Highly-Rated National and Regional Credit Tenants
  • Upside Potential in Leasing Vacant Space and Negotiating Market Rental Rates for Current Tenant Lease Extensions
  • 11.09% Cap Rate on Shopping Center NOI | Priced at $95 per Square Foot | Well Below Replacement Cost
  • Proposed Financing on the Center Yields a 23.85% Cash-on-Cash Return and 28.23% Total Return
  • Offering Includes Four Pad Sites Priced from $3.76 – $5.66  per Square Foot | Two of the Pad Sites have Interstate 20 Frontage
  • Strategic Location at the Crossroads of Interstate 20 and Highway 34 | Excellent Visibility and Accessibility
  • Approximately 59,300 Vehicles per Day Travel Directly in Front of the Subject Property
  • Location Benefits from Close Proximity to Canton First Monday Trade Days (26 Miles East of Terrell) | 2.1 Million Visitors Annually
  • The Center is Situated Within a 60-Mile Radius of More Than Six Million People
  • Property is Located in the U.S. Treasury-Defined “Opportunity Zone” | Designed to Spur Economic Development by Providing Tax Benefits | Investors can Defer Tax on Capital Gaines Through the End of 2026 or when the Investment is Sold | The Initial Investment will be Discounted by up to 15% for Tax Purposes after Seven Years