San Marcus Outlet Mall

TEXAS CITY � Setting aside a longtime retail rivalry, Tanger Factory Outlet Centers and Simon Property Group confirmed weeks of speculation they would co-develop a 90-store outlet mall in Texas City.

The joint venture marks the first time the competitors, who just days apart in January announced they would build large outlet malls in different parts of the county, have worked together on a retail project.
�It�s unprecedented, and we�re very excited about it,� Tanger spokeswoman Mona Delia said.

The mall, to be branded as Tanger Outlets, will be built on a 55-acre site along Interstate 45, south of Holland Road, where Indianapolis, Ind.-based Simon had already planned to build its project.

The land is between Holland Road and Walmart and was previously part of the plan for Lago Mar, a 7,000-home residential development sidelined by the real estate bust.

Greensboro, N.C.-based Tanger had planned to build a 95-store outlet mall on 35 acres west of I-45 between the Big League Dreams sports complex and the Bay Colony Shopping Center in League City. But the land deal Tanger had hoped to forge fell through.

The Plan
When the first phase is complete, the center will house more than 90 brand-name and designer outlet stores in about 350,000 square feet. With 55 acres available to the developers, there�s ample room for growth to a build-out of 470,000 square feet of retail space, officials with the companies say.

The joint venture will be co-owned by Tanger and Simon. Simon will provide site development, construction supervision and asset management; Tanger will provide management services and marketing. Both companies will provide leasing services.

About 100,000 vehicles drive by the proposed site daily, officials say. Outlet centers differ from regional malls such as Baybrook Mall and Mall of the Mainland because manufacturers sell directly to the public and promote discounts on merchandise.

Typical tenants include Calvin Klein, Haggar, Nautica, Kenneth Cole, Saks Fifth Avenue � Off Fifth and Neiman Marcus Last Call, to name a few.

Successful centers such as Katy Mills in Houston, Houston Premium Outlets in Cypress, Grapevine Mills in Dallas � all owned by Simon � and Tanger Outlets in San Marcos don�t rely solely on local shoppers but are considered tourist destinations.