Tanger Inc. of Greensboro, North Carolina, on Tuesday announced that it had purchased The Promenade at Chenal shopping center in west Little Rock in a $73 million cash deal.
The seller was not identified in a news release about the transaction. The 270,000-SF shopping center was last sold to an undisclosed buyer in 2019 for $10 and other unspecified considerations in lieu of foreclosure, the Arkansas Democrat-Gazette reported.
The development on 38 acres opened in 2008 with a $79 million price tag.
Publicly traded Tanger (NYSE: SKT) said it expects the upscale, open-air shopping center to deliver an 8% return during its first year of ownership, with potential for additional growth over time.
The Promenade at Chenal is Tanger’s first location in Arkansas and the second open-air lifestyle concept in Tanger’s portfolio, following the company’s acquisition of Bridge Street Town Centre in Huntsville, Alabama, in late 2023.
“We continue to execute our growth strategy with the acquisition of The Promenade at Chenal,” Stephen Yalof, president and CEO of Tanger, said in the release. “We’re thrilled to add this attractive, market-dominant lifestyle destination to our portfolio and welcome several exciting new brands and restaurants — all part of the Promenade’s diverse collection of market-exclusive shopping, dining, and entertainment.”
The property has been managed and leased by Moses Tucker Partners of Little Rock since 2019. The company said Wednesday that Tanger will take over management of the property but Moses Tucker Partners will continue to provide leasing services.
The Promenade at Chenal’s tenants include Lululemon, Sephora, Athleta, Kendra Scott, Lovesac and Sono Bello, as well as the state’s only Apple, Anthropologie, and Urban Outfitters stores. It also features popular local and regional retailers, high-end and casual dining options, and an AMC IMAX movie theater.
Tanger, which operates as a real estate investment trust (REIT), owns and operates more than 15 million SF of properties in 21 U.S. states and Canada. The company’s portfolio includes 38 outlet centers and one adjacent managed center.
Tanger in the third quarter raised its full-year guidance on rising funds from operations (FFO), a key measure of performance used by real estate operating companies and REITs. Through the third quarter, FFO totaled $182.2 million, up nearly 14% from $160.2 million in the same period in 2023.
Yalof said the company is focused on “elevating our shopper experience and attracting in-demand retailer brands and a diversified tenant mix, along with more food and beverage and experiential destinations.”
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