Land Capital, Ariel Plan $90 Million Outlet Center

(Globe Street)

by Gina Kenny

November 20, 2007 - A joint venture between Land Capital Group Inc., headquartered in Park City, Utah, and Williamsburg, Virginia-based Ariel Preferred Retail Group, LLC, an affiliate of Prescott Capital Management LLC, plans to develop a retail outlet center at the intersection of Interstate 90 and Riverside Boulevard. The center is expected to have about 410,000 square feet of retail space, says Don Chapman, managing director for operations and development for Ariel. The estimated cost of the Preferred Outlets at Rockford project is about $90 million, Chapman tells Globe Street.

Preliminary work at the site has begun with construction planned to begin next year. The center will be constructed in two phases. The first phase of about 250,000 square feet is expected to open in October 2008, Chapman says. Construction on the second phase, of approximately 160,000 square feet, will begin when the first phase is completed and the second phase is expected to open in October 2009.

Between 80% and 85% of the tenants in the center are expected to be similar to other Preferred Outlets locations. Some of the tenants at most of the locations include GAP Outlet, Bass, Factory Brand Shoes and Dress Barn, according to Ariel’s website. The center will have “big brand” women’s fashions, men’s fashions and home fashions. The shopping center is expected to generate more than $100 million in sales revenue each year, Chapman says.

The site is also close to Interstate 39. Ariel looks for locations where there is a population of between 300,000 and 500,000 people within a 30 minute radius. “Rockford is the second largest city in Illinois,” Chapman says. The joint venture acquired the site from Landmark Development, based in Rockford. Landmark Development had acquired the sites with plans to develop the outlet shopping center, but the project had stalled as the mainly-residential developer received the needed entitlements but was not able to get leases signed. The joint venture had been negotiating with Landmark since meeting at the ICSC convention in May and closed this month on the sale, Chapman says.