Tanger has acquired Pinecrest, a 640,000-square-foot, open-air, mixed-use center in Orange Village, Ohio, for $167 million.
The purchase, revealed Thursday, reflects Tanger’s efforts over the past couple of years to extend its real estate portfolio beyond outlet centers and invest in full-price open-air retail centers that the company considers dominant in a market. In December 2023, Tanger acquired Bridge Street Town Centre, an 825,000‑square-foot, open-air lifestyle center in Huntsville, Ala., for $193.5 million. And in December, Tanger bought The Promenade at Chenal in Little Rock, Ark., a 270,000-square-foot upscale, open-air lifestyle shopping center for $73 million.
Tanger management estimated that the Pinecrest center would deliver an 8 percent return during the first year, with potential for additional growth over time.
“This acquisition continues our growth strategy and expansion in the full-price retail space, with another market-leading town center destination,” said Stephen Yalof, president and chief executive officer of Tanger, in a statement. “With exclusive-to-market and sought-after shopping, dining and entertainment, Pinecrest offers a distinctive atmosphere that resonates with the discerning local community.”
Located in Cleveland’s affluent eastern corridor, Pinecrest opened in 2018 and is anchored by Whole Foods Market. Among the specialty store tenants are Alo Yoga, UnTuckit, Madewell, Sephora, Indochino, Williams-Sonoma, Pottery Barn, REI and Nike. Entertainment and dining options include Shake Shack, Kitchen Social, First Watch, Firebirds Wood Fired Grill, Silverspot Cinema and Pinstripes — all located in an open-air, high-street setting.
The purchase includes the center’s upscale onsite residential and office components, which support the center’s foot traffic. There is also an AC Hotel on the site which is under separate ownership.
Tanger has been working to diversify its tenant mix with Warby Parker, Victoria’s Secret, Ulta, Sephora and Barnes & Noble, as well as restaurant and entertainment concepts Dave & Busters and Texas Roadhouse, among the brands that have recently opened Tanger open-air outlet centers.
The publicly held company’s portfolio of 38 outlet centers, one adjacent managed center and three open-air lifestyle centers includes more than 16 million square feet positioned across tourist destinations and markets in 21 U.S. states and Canada.
