SAN DIEGO-As mall developers have moved away from failingdepartment stores, they are moving toward outlet centers, saysMichael Marino, EVP & division manager forWells Fargo Bank in Los Angeles. Marino, alongwith Joham Tavera, director of BlackRockInc. in San Francisco and Fred White,director of TIAA-CREF in Newport Beach, CA, spokeduring a general session at ICSC Western Division yesterday, withRyan Gallagher, senior managing director ofHolliday Fenoglio Fowler L.P., moderating. Thesession was titled, “Capital Markets Gymnastics: How Flexible WillThey Be When it Comes to Financing Your Next Acquisition orRefinance?”

Marino said his firm is currently involved with financing twooutlet-center developments in California, and he sees this trendcontinuing. However, “There has to be something very special aboutthe land for us to do the deal,” he added. For example, outletcenters in coastal California and Hawaii have location-generatedappeal. Also getting the green light are centers funded by publiccompanies.

White said that with yields compressing to the mid-teens, manyinvestors are moving into secondary markets to gain higher yields.“People are getting more aggressive, and we believe yields willcontinue to compress.”