Factory Outlet Stores Changing Owners Again

For the second time in a year, the Post Falls Factory Outlet stores will have a new owner.

The change is part of a $906 million merger between Prime Retail, owner of the Post Falls outlet mall, and Horizon Group. Prime Retail will acquire 20 outlet properties from Horizon and transfer three properties, including Post Falls, to its merger partner.

The deal announced Thursday would make Prime Retail the largest operator of such centers in the United States, with 43 centers and 11.8 million square feet of retailing in 25 states, the company said.

“Our strategy is with larger properties averaging more than 325,000 square feet,” Prime Retail president and chief operating officer William Carpenter said from his Baltimore, Md., home. “Post Falls is a smaller center at less than 200,000 square feet.”

Carpenter added: “Post Falls was a better fit for Horizon’s philosophy of running traditional centers.” He said that Prime Retail is seeking to expand holdings near its existing centers and increase the number of “premier retail tenants” such as Polo, Nike, Nautica and The Gap.

Pending stockholder approval, the deal will take effect next March.

Kay Riplinger, assistant manager at Post Falls, said, “On the local level, it’ll be business as usual until March.”

Carpenter added that the shift of properties will have “zero impact in Post Falls as far as employment and operations in the short term.”

Horizon will be the third owner in six years for the outlet mall. The mall was built in 1991 for $14 million and sold in February to Prime Retail as part of a three-mall, $37 million deal.

, DataTimes