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Shopping Centers Today -> June 2001
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PRIME RETAIL SILVERTHORNE, COLO., CENTER
Reprinted from Value Retail News
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| The joint venture that acquired Prime Outlets at Silverthorne (Colo.) plans to rename the center Silverthorne Factory Stores. |
A publicly traded Canadian company and a Colorado developer with roots in the outlet industry have jointly acquired Prime Outlets at Silverthorne (Colo.) from Prime Retail.
The sales price for the project was $29 million, or nearly $113 per square foot.
Leading the effort to acquire the property was Sam Brown, who owns Brown & Associates, a Boulder, Colo.-based outlet-center developer. His partner is Calgary-based TGS Properties Ltd., a commercial real estate and land development company with assets throughout Western Canada. The joint venture is called Silverthorne Factory Stores LLC, with Brown as managing member.
TGS, which is traded on the Toronto Stock Exchange, specializes in acquiring, developing and managing office buildings, retail centers and industrial warehouses. Brown is the developer of Dillon (Colo.) Factory Stores, a 24,000-square-foot strip center that is at the same I-70 junction as the Prime center. Brown’s 7-year-old project — tenanted by Nike, Gap, Jones New York, Coach and Nautica — is 95% leased and posts annual sales per square foot of $430.
At 257,470 square feet, the Prime project is more than 10 times as large as Brown’s property. But the Prime center’s occupancy rate is lower — about 89% — as are its annual sales of $276 per square foot.
What changes are in store for the Prime center?
The joint venture plans to change the center’s name to Silverthorne Factory Stores — the center’s original moniker when McArthur/Glen developed it. The property will be marketed jointly with Dillon Factory Stores, whose name will be retained.
A free ice-skating rink is contemplated for the second phase of the former Prime center, and a chairlift is being considered that would take shoppers to a contemplated expansion.
Prime Retail, as part of a financial package to avert bankruptcy, sold four of its centers in December for $240 million to a partnership between Fortress Investment Group LLC and Chelsea Property Group.
The March sale of the Silverthorne project generated net proceeds of about $9 million, which Prime Retail says will be used to pay down part of a $90 million mezzanine loan that the company closed on in late December.
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