Saks OFF 5th opening two new locations.

Saks Fifth Avenue OFF 5th will open two 28,000-square-foot shops in 2011 in Oklahoma City and Charleston, S.C., in August and October, respectively.

The New York-based retailer's first store in Oklahoma will be in the under-construction Outlet Shoppes at Oklahoma City. The South Carolina store will open in the Tanger Outlet Center in North Charleston. Saks' 2011 plan includes relocating the Hilton Head store next summer.

Saks operates 58 OFF 5th stores in 23 states in addition to its 47-store chain of traditional bricks-and-mortar locations and an online store, saks.com.

SOURCE: CityBiz Real Estate

The Shoppes at Oklahoma City opening on track



Workers weld pieces of metal for the outlet mall being built east of Council Road and south of Reno Avenue. Photos by Jim Beckel, The Oklahoman

 NewsOK.com by Steve Lackmeyer

Construction of the Shoppes at Oklahoma City factory outlet mall at Interstate 40 and Council Road remains on track for an August 2011 opening.

Brent Bryant, city economic development program manager, gave a presentation about the project at a recent meeting of the Oklahoma City Economic Development Trust and reminded the group the mall represents one of few major retail malls under construction in the country.

Walls are going up on several buildings, and some of the buildings, including the future homes for the Nike and Reebok outlets, are substantially complete.

The outlet mall consists of eight buildings and is more than 85 percent leased. The mall is being developed by Michigan-based Horizon Group. The project includes $3.9 million spent by Oklahoma City on infrastructure and sales tax rebates of up to $550,000 a year over a decade as reimbursements for actual expenses.

Bryant recently confirmed that the Economic Development Trust is set to review a modified agreement that increases the costs of infrastructure from $2,395,000 to $3,937,690.

Tenants set to open at the outlet mall include Aeropostale, Smashburger, Auntie Anne’s, Banana Republic, Bass, Bon Worth, Brooks Brothers, Carter’s, Chico’s, Children’s Place, Coach, Converse, Corning Revere, Dress Barn, Easy Spirit, Gap, Guess, Gymboree, Hanesbrands, Izod, Johnston and Murphy, Jones NY, Journeys, Kasper, Kay Jewelry, Kitchen Collection, Lane Bryant, Le Gourmet Chef, Levi’s, Lids, Maurices, Naturalizer, Nike, Nine West, OshKosh B’Gosh, Reebok/Rockport, rue21, Saks Fifth Avenue Off Fifth, Skechers, Stride Rite, Sunglass Hut, Tommy Hilfiger, Ultra Jewelry, Under Armour, Uniform Outlet, U.S. Polo Assn., Van Heusen and Wilsons Leather.

Horizon forms joint venture with CBL

CBL & Associates Properties, Inc. announced that it had formed a joint venture with Horizon Group Properties, Inc. to develop The Outlet Shoppes at Oklahoma City in Oklahoma City, OK. Once complete, the 350,000-square-foot project will be the only outlet center in the state of Oklahoma and the only outlet center within a 145 mile radius. The Outlet Shoppes at Oklahoma City is currently under construction with the grand opening scheduled for late summer 2011. CBL and Horizon are co-developing the project with Horizon responsible for leasing and management.

"The Outlet Shoppes at Oklahoma City is a great opportunity for CBL to enter the outlet center business through a new project that will be extremely successful," said Stephen Lebovitz, president and chief executive officer for CBL. "Outlet centers are a natural extension of our retail expertise and provide us with attractive growth potential. This partnership with Horizon, a recognized outlet center developer, will provide us with access to new relationships with outlet center retailers that will also benefit our core mall portfolio."

The Outlet Shoppes at Oklahoma City will feature dozens of the best names in outlet shopping. The project is currently over 80% leased with offerings including Saks Fifth Avenue Off 5th, Nike, Tommy Hilfiger, Banana Republic, J. Crew, Brooks Brothers, Coach, Guess? and more. The project is strategically located on 65 acres at the intersection of Interstate 40 and Council Road.

Lebovitz added, "We are excited to bring outlet shopping to both Oklahoma City and the state of Oklahoma. We look forward to celebrating the grand opening for The Outlet Shoppes at Oklahoma City in 2011."

"CBL is a terrific partner for The Outlet Shoppes at Oklahoma City," said Gary J. Skoien, Horizon's president and chief executive officer. "They have created a reputation in the retail development industry for recognizing true opportunity and we are excited to have them become a part of this outstanding project."

CBL has received a $48.9 million construction loan commitment from U.S. Bank for the project. The loan will have an initial term of three years, with two one-year extension options.

The Outlet Shoppes at Oklahoma City will contribute significantly to the area's local economy by creating new jobs and generating sales tax revenues. Once complete the center is estimated to create more than 1,000 new jobs for the community and generate more than $110 million in annual sales.

Oklahoma City lies in the center of the United States at the junction of three major national interstates: I-35, I-40 and I-44. The metropolitan area serves as the entertainment and social capital of the area with professional sports, rodeos and world-class museums. The city is the nation's 29th largest and is the host to over six million tourists a year. Within an hour's drive of the center are three major universities with over 100,000 students and Tinker Air Force Base, one of the world's largest air depots.

SOURCE: MarketWatch

The Outlet Shoppes at Oklahoma City ground breaking news video

Oklahoma City is overcoming the odds of a bad national economy with construction starting on a new $50 million factory outlet mall.

Officials with Horizon Group Properties admitted Thursday that at one point they lost all of their leases for a factory outlet mall they hoped to start as the national economy crashed in 2008.

At a ceremony Thursday celebrating the start of construction on the $50 million mall at Reno and Council, Horizon Chief Executive Officer Gary Skoien said only two other such developments are being built in the United States.

"You've got a great economy," Skoien said when asked how the project was revived. "I'm constantly extolling the values of Oklahoma City."

The 65-acre, 348,000-square-foot development, The Outlet Shoppes at Oklahoma City, is set to open in August 2011 with stores including Nike, Saks Fifth Avenue Off 5th, Brooks Brothers, Guess, Coach, Chico's, Banana Republic, Gap, Tommy Hilfiger, Under Armour, Levi's and Carters.

The mall will front Interstate 40, which carries 112,000 cars a day and is within a few minutes of I-35 and I-44. The design calls for a shopper-friendly racetrack design with covered walkways and landscaped courtyards. The center will feature a food court, children's play area, stage and fountains.

"We believe that The Outlet Shoppes at Oklahoma City will draw shoppers from a large area throughout Oklahoma, Kansas and Texas," Skoien said. "We are happy to bring the roster of tenants to Oklahoma City, including a number that currently are not present in the market."

Mayor Mick Cornett said he was glad to see Horizon was able to rebuild its list of leases and get construction started. The deal included $8.9 million in economic incentives ranging from infrastructure improvements to $5.5 million in reimbursements for regional marketing costs.

"We've been working on this quite a while," Cornett said. "This is destination retail. It's a reflection on Oklahoma City's economy and all the things we've done. It's taken longer than we thought, but we got it done, which is something in this economy. We rely on sales taxes, so we have to have things like this that will bring in shoppers from outside the city."

SOURCE: NewsOK

Oklahoma City Council Amends Horizon Deal With Concerns

Oklahoma City Council Members today approved amendments to a 2008 joint agreement between Developer Horizon Group Properties LP, the Oklahoma City Economic Development Trust and The City of Oklahoma City for the developer to build an outlet mall in Oklahoma City, by a vote of seven to two.

Assistant City Manager Cathy O’Connor presented a historic overview and timeline to council members of the proposed project, stating an agreement was first signed in May 2008 between city entities and the developer. The project was set to open November 2009. However, dramatic changes in the retail market due to the economic downturn and the developer’s difficulty to obtain financing took a toll on the developer’s ability to move forward on the project.

The original agreement stated that HGP would build a 320,000-340,000-square-foot factory outlet center, bringing 90 retailers into the market. A possible 75,000-square-foot expansion on several out-parcels based on the success of the mall was also included.

The agreement also required a minimum investment of $50 million by HGP. The project was expected to generate approximately $106 million in annual retail sales at the center and an estimated $4.1 million in sales tax revenues each year for the city.

Further, HGP requested incentives with the agreement to include a regional marketing reimbursement of $5.5 million over a ten-year period (approximately 12.5 percent of sales taxes received). Also, the city was to provide $2,395,000 in public improvements at the site.

Details within the amended agreement include a change in size of the center from 340,000 square feet to 320,000 square feet, and increase from $2,395,000 to $3,937,690 in public improvements to the site from the city, which includes $1 million for Drive 2, a private road.

O’Connor stated another important change is a key date element requested by the city. By August 31, 2010, the developer must meet certain requirements before the city proceeds with public improvements. By end of August, the developer needs to close on land acquisition, execute its construction contract and provide evidence of financing for the project.

Several city council members voiced concerns over the developers’ ability to secure financing for the project and whether Atlanta-based Cousins Properties was still part of the joint venture in developing the outlet mall. Other concerns included the project’s design concept and whether the developer owned the property while already preparing the site.

“We’re still working with them (Cousins) as well as with a couple of other equity providers. Right now we’re just finalizing that as we start the project,” Thomas Rumptz, senior vice president of HGP, said.

Regarding site preparation, Rumptz said, his group has an agreement with the property’s current owners that the developer can commence the activity prior to the closing of the land.

SOURCE: OKC BIZ

Site work begins on outlet mall in Oklahoma City

Dirt work has begun, and a modified incentives agreement is set to be heard next week for construction to start this summer on a $50 million factory outlet mall in far west Oklahoma City.

The original agreement, signed by the Oklahoma City Council in May 2008, called for the city to spend $2.3 million on infrastructure for the site and sales tax rebates of up to $550,000 a year over a decade as reimbursements for actual expenses.

Michigan-based Horizon Group hoped to open the 340,000-square-foot Outlet Shoppes at Oklahoma City at Interstate 40 and Council Road by fall 2009. Instead, the national economic crash put those plans on hold.

Brent Bryant, the city's economic development program manager, confirmed Friday that the Economic Development Trust is set to review a modified agreement Tuesday that increases the costs of infrastructure from $2,395,000 to $3,937,690. The increase includes $1 million for a road that originally was to be built by Horizon, with the remainder of the increase reflecting revised estimates and not a change in the incentives' scope.

"They were going to build a public street, turn around and dedicate it to the city,” Bryant said. "After 2008, the financing requires less debt and more equity — and this (the city paying for the street) is in response to them requesting more assistance. At the end of the day, this will be a public street.”

Officials with Horizon could not be reached for comment Friday. Bryant said the agreement requires Horizon to close on the purchase of the land, execute a construction contract and show proof of financing by Aug. 31.

Safeguards in the original contract remain, Bryant said. Those safeguards include providing documentation on sales and regional marketing expenses. The $5.5 million allows Horizon to be reimbursed for up to $550,000 in regional marketing costs for each of the 10 years.

Bryant added the reimbursement is structured so that it will not exceed 12.5 percent of sales tax revenues generated by the mall.

About 112,000 cars drive along I-40 at Council on a daily basis.

Alison Oshel, a retail specialist with the Greater Oklahoma City Chamber, said the mall's location and the marketing aimed at regional shoppers will help the local economy. She said the outlet mall will generate new sales taxes for Oklahoma City instead of shifting existing dollars within the city.

"It is extremely important because the outlet mall customer will drive significantly further than any other shopper,” Oshel said. "This is a customer who will not only spend money at the outlet shops; they also will spend money to eat, attend our entertainment venues and perhaps spend a night or two in one of our hotels.”

Oshel noted that only four outlet malls are in the development stage nationwide.

"It's a great location,” Oshel said. "Its proximity to Bricktown and the Adventure District means that the out-of-town customer really can turn what would otherwise have been just a shopping trip into a day or two of entertainment and dining in Oklahoma City. Being just off of I-40 and visible from the highway will also draw from those who would otherwise just drive through town without stopping.”

Currently the closest outlet mall from Oklahoma City is in Gainesville, Texas — a 135-mile drive. The Outlet Shoppes at Oklahoma City is expected to generate 1,000 jobs with $19 million in direct payroll.

SOURCE: NewsOK