Blumenfeld Development Group, a Syosset-based commercial developer, has sold its remaining stake in the Tanger Outlets at the Arches in Deer Park for $28.4 million to real estate investment trust Tanger Factory Outlet Centers Inc.
The recent deal gives outright ownership of the property to Greensboro, North Carolina-based Tanger, which has an ownership interest in 42 shopping centers in 21 states and Canada. In 2013, Tanger increased its stake in the 794,000-square-foot shopping and dining center when it paid Blumenfeld $13.4 million in cash and 450,576 shares of Tanger stock.
“They were basically running the shopping center as it was,” said David Blumenfeld, a principal at Blumenfeld Development. “We like to be involved in the things we operate, and it just made sense for us to amicably part ways.”
In addition to buying out Blumenfeld’s stake, Tanger also paid back a $150 million mortgage loan associated with the Deer Park center. The company sold three assets last year and at the start of 2016, earning $174.9 million in net proceeds. Using an additional $41.3 million from a line of credit, the company paid back both the mortgage and Blumenfeld.
“Our finance and tax teams did a tremendous job in developing and executing a highly tax efficient strategy for the use of proceeds from the recent asset sales, which reduced our overall leverage and our exposure to floating rate debt by $108.7 million,” Tanger president and CEO Steven B. Tanger said in a release.