LAKEWOOD, NJ, MAY 23, 2005 –The Lightstone Group, one of the largest private owners of retail property in the country, announced the acquisition of two outlet centers located 12 miles down the road from Disney World in Orlando, Florida: the 200,000-square-foot Belz Designer Outlet Center and the 700,000-square-foot Belz Factory Outlet World. The seller in this transaction was Estein & Associates USA Ltd. of Orlando.
David Lichtenstein, chairman and principal of The Lightstone Group, commented, “I’m a workaholic, and they didn’t believe me when I told them I was going to Disney World….now they know! This is one of the real retail gems in the country…the BUSIEST INTERSECTION IN THE STATE OF FLORIDA….the best tourist destination….it’s a dream deal.”
“As with many of Lightstone's deals, this opportunity was comprised of many variables,” said Angela Mirizzi-Olsen, chief investment officer of The Lightstone Group. “In addition to coming to the table with sufficient equity, in order to close this transaction we also needed to coordinate the assumption of debt and obtain rating agency approval.
Wachovia’s expertise and assistance was instrumental in completing this complex deal. It is our tenacity at Lightstone in confronting challenges and ability to assemble a world class team of professionals, which leads to our continued success.”
The Lightstone Group plans to upgrade the centers, including significant architectural renovations and the addition of new national brand names, as well as food establishments. The Lightstone Group’s subsidiary Prime Retail, will operate and manage the property. The company now owns properties in 25 states across the country and in Puerto Rico.
Both outlet centers are centrally located in one of the fastest growing metropolitan areas in the United States, with a population of more than 1.6 million.
Bob Brvenik, president of Prime Retail, said, “We are delighted to announce this acquisition and to be continuing to acquire premiere retail properties across the nation. Belz Outlet Centers has the key ingredients in place to be a tremendous success: A great reputation, a prime location down the road from the country’s favorite family destination, receiving nearly 43 million visitors annually; and some of the most sought after names in the retail industry. Once we give the centers our ‘Prime’ touch, they will be the hottest place to shop in the state of Florida!”
Belz Designer Outlet Center, featuring 45 designer outlets including Kenneth Cole, Bose, GUESS, DKNY, OFF 5TH-Saks Fifth Avenue Outlet, Polo Ralph Lauren Factory Store and Ann Taylor Factory Store, is located in the heart of the International Drive and Universal Studios tourist area.
A block away is Belz Factory Outlet World, the largest non-anchored retail center of its kind in the country, featuring over 170 brand name stores, including Foot Locker, The Gap Outlet, Mikasa Factory Outlet, Liz Claiborne, Nautica and Van Heusen Factory Store. Belz Factory Outlet World is made up of two fully enclosed malls and four annexes and fronts Interstate 4 and the Florida Turnpike—the state’s busiest intersection with 80,000 cars passing each day.
Financing for this transaction was provided by Wachovia.
"We are extremely proud to be building on our relationship with David Lichtenstein, Angela Olsen and the rest of The Lightstone Group,” said Chad Johnson, managing director of Wachovia. “They are among the most professional and talented owners in the industry. The Orlando Belz transaction represents another significant deal for the company and fits extremely well into their portfolio of quality properties. I'm confident The Lightstone team will transform these properties into Orlando's premier outlet centers."
Headquartered in Baltimore, Maryland, Prime Retail is one of the largest and most successful owners of retail centers in the U.S. Its portfolio spans approximately 13 million square feet throughout major markets of the United States and Puerto Rico. Prime Retail has embarked on a multi-million dollar re-investment and re-branding initiative and is recognized as one of the leading retail outlet companies in the industry. For more information please visit primeretail.com.
