Chelsea Property Group, an outlet center REIT, has purchased The Crossings Factory Stores, a Delaware Water Gap area outlet center near the Poconos. Chelsea spent $111.3 million for The Crossings, who were owned by Outletter Associates. The sale price for the 108-store center translates into $284.65 per sq. ft. The center is 98% occupied.
The Crossings, inTannersville, Pa., is the leading outlet center in its trade area because it is located at one of the most heavily traveled entry points to the Poconos: more than 2.1 million people live within a 45-mile radius and an average of 50,000 cars travel I-80 daily.
With this strategic location, Chelsea has optioned land off of I-80 only 10 miles east of The Crossings. Chelsea is exploring the development of a new Premium Outlet center here. Chelsea management isn’t worried that a new center not far from here would cannibalize The Crossings market share, either.
"Over the years, we have heard from many of the industry’s core tenants that The Crossings has consistently ranked in the top ten of all their outlet locations. We are very pleased to be adding it to our portfolio and consider it to have important strategic value as well as strong growth potential," says David Bloom, chairman and CEO of Chelsea Property Group.
Chelsea already owns Woodbury Common Premium Outlets center, which is located one hour north of New York City. The center is the highest grossing in the nation.