Taubman Takes Pier Helm

The Greenwich, CT-based Gordon Group actually initiated Pier Shops, a $175 million conversion of the former Ocean One Mall across the boardwalk from Caesars Atlantic City Casino/Hotel. Ocean One Mall had been the earlier redevelopment of the famed former Million Dollar Pier, an amusement and entertainment complex dating back to the 1920s.

The Bloomfield Hills, MI-based Taubman bought into the under-construction Pier Shops at Caesars in 2005, picking up an approximate one-third share worth an estimated $65 million. That deal launched a cooperative effort by Taubman and Gordon to develop other retail properties related to casino/hotels on an ongoing basis.

When the agreement was announced relating to Pier Shops at Caesars, the two companies issued a statement reading, "[Gordon Group] will take the lead on the project, with Taubman providing some leasing and development administration services on an as-needed basis. Upon opening, the project will be managed and leased by Gordon Group with Taubman providing administrative services."

Now, that relationship has changed. "We have worked closely with the Taubman organization for nearly 50 years, and they are known for their management and expertise with luxury properties," says Gordon Group chairman Sheldon Gordon. "There will be many synergies between the Pier Shops and Taubman's high-performing shopping centers."

"Gordon Group has created a magnificent shopping center," says Taubman chairman/president/chief executive officer Robert S. Taubman. "We look forward to building on the momentum that they have created."

Taubman is taking on the operation of a brand-new center that is already 98% leased with 75% of its roughly 100 stores and eateries open for business. Connected by a pedestrian bridge directly to the Caesars casino, the center opened its first stores for business in June. Its tenant roster includes names like Gucci, Coach, Louis Vuitton, Salvatore Ferragamo, Tiffany, Burberry, Armani and Scoop, among others. Its dining venues include eateries by such restaurateurs as Stephen Starr, Patrick Lyon and Jeffrey Chodorow.