The six value retail assets are located in California, Nevada, Missouri, Minnesota, Michigan, and Georgia. Approximately 86.5% of the portfolio's operating gross leasable area was occupied at closing.

The broker in the deal was Johnson Capital.

Prescott is a New York-based real estate merchant banking firm that undertakes property investment, asset management, and investment banking activities throughout the United States and internationally. Prescott Capital Management is the firm's investment and asset management division, which sponsors a series of real estate investment vehicles comprised of commercial properties located throughout the nation.

"These six acquisitions are in strong and attractive markets," Prescott managing director Susan L Stupin tells GlobeSt.com. "They are markets where there is a strong consumer base as well as a tourist base…we feel that these outlets will serve both the consumers and the tenants. The consumers will feel they are getting top brands at an attractive price, and tenants will have a very cost-effective distribution channel."

Stupin added that she expects to see "a platform of growth" in the value retail outlet segment in the future.

Prescott has had a longstanding involvement in the value retail industry. Previously, Prescott's investment banking unit arranged groundbreaking financing for properties owned by the McArthur Glen Group prior to its initial public offering in 1993. Two former McArthur executives head the outlet centers management company—Ariel Preferred Retail Group—president James S. Harris and executive vice president Don E. Chapman.

The properties in the portfolio are:

Tulare, California: The Tulare property includes 226,405 sf of gross leasable area with expansion potential, and is currently 95% occupied. Major tenants include Gap, Polo Ralph Lauren, Tommy Hilfiger, Reebok, Liz Claiborne, Coach, Nautica, and Mikasa.

Laughlin, Nevada: The Laughlin property includes 256,741 sf of gross leasable area with additional expansion potential, and is currently 89% occupied. Major tenants include Gap, Reebok, Factory Brand Shoes, Dress Barn, and Oshkosh B'Gosh children's clothing.

Warrenton, Missouri: The Warrenton property includes 199,963 sf of gross leasable area, which is currently 89 percent occupied. It is located near Interstate 70, the primary east-west highway through the Midwest, and its trade area spans from St. Louis to Columbia, Missouri. Major tenants include Nike, Gap, Liz Claiborne, Factory Brand Shoes, Levi, Bass, and Carters.

Medford, Minnesota: The Medford property includes 223,960 square feet of gross leasable area and is currently 88% occupied. It is located just off Interstate 35. Major tenants include Gap, Nike, Eddie Bauer, Liz Claiborne, and Carters.

Traverse City, Michigan: The Traverse City property includes 153,975 square feet of gross leasable area, and is currently 74% occupied. The property is located near the historic downtown section of Traverse City, the center of a major year-round tourist and vacation area along Lake Michigan that serves the entire Midwest. Major tenants include Old Navy, Gap, Bass, Lenox, Oshkosh B'Gosh, and Pendleton.

Darien, Georgia: The Darien property currently includes 198,110 square feet of gross leasable area, which is currently 80% occupied. An additional area containing 76,385 sf is being prepared for occupancy, with further expansion potential. The property is located just off Interstate 95. Major tenants include Gap, Polo Ralph Lauren, Tommy Hilfiger, Reebok, Liz Claiborne, Coach, Nautica, and Mikasa.

Instant Insights /

Prescott Acquires Six Retail Properties for $110M

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