COURTESY PHOTO/Tanger Factory Outlet Centers Inc. An artist’s rendering shows a planned 95-store outlet mall near Interstate 45 and FM 646 in League City.


95-store outlet mall planned for League City

By Laura Elder
The Daily News
Published January 18, 2011

LEAGUE CITY — In what might be the starting gun of a fierce retail race, Tanger Factory Outlet Centers said Monday it planned a 95-store outlet mall near Interstate 45 and FM 646 in League City.

The Greensboro, N.C.-based company said it planned to build the 300,743-square-foot mall on 35 acres west of Interstate 45 between the city’s Big League Dreams sports complex and the Bay Colony shopping center.

The announcement confirming weeks of speculation came just days after another major outlet mall operator — Indianapolis, Ind.-based Simon Property Group — said it planned a 350,000-square-foot center along Interstate 45, south of Holland Road.

Neither Simon nor Tanger officials would comment about whether the county could sustain two major outlet malls, nor would either divulge possible tenants.

Outlet malls differ from regional malls such as the bustling Baybrook Mall and the struggling Mall of the Mainland because manufacturers sell directly to the public and promote discounts on merchandise.

Successful centers typically have a large concentration of discounted versions of popular stores such as Calvin Klein, Coach, Gap, Kate Spade, Kenneth Cole, Nike and Saks Fifth Avenue.

Simon operates successful centers such as Katy Mills in Houston and also Houston Premium Outlets in Cypress. Tanger operates 33 outlet centers, including one in San Marcos.

Last year, Tanger identified 17 markets it considered under served by the outlet industry, officials said.

Along with League City, Tanger plans two malls in Arizona. Sonrisa Development LLC owns the League City land Tanger has under contract.

Outlet stores, which are considered strong tourist draws, are the bright spot in an otherwise dreary commercial real estate landscape during one of the worst downturns in years, Hall said.

Industry observers also contend that outlet malls are outperforming regional malls and strip centers as consumer seek bargains.

When Tanger achieves the pre-leasing threshold of at least 50 percent, it will begin construction, likely by the year’s end, officials said.