Acquisition of Rental Property (Notes)

9 Months Ended

Sep. 30, 2011

Acquisition of Rental Property [Abstract]

Business Combination Disclosure [Text Block]

Acquisitions of Rental Property

Jeffersonville, Ohio

On June 28, 2011, we purchased Prime Outlets at Jeffersonville, Ohio, a 410,000 square foot outlet center, from Ohio Factory Stores Partnership, a subsidiary of Simon Property Group, Inc., for a cash price of $134.0 million.  The acquisition was funded by amounts available under our senior, unsecured bridge loan. 

Atlantic City, New Jersey and Ocean City, Maryland

On July 15, 2011, we closed on our admission as a member into three existing entities that results in our acquiring substantially all of the economic interests from Cordish AC-1 Associates, LLC, Cordish AC-2 Associates, LLC and OCF Holdings LLC in Phase I & II of Atlantic City Outlets The Walk (Atlantic City, New Jersey) and Ocean City Factory Outlets (Ocean City, Maryland) for an acquisition price of $183.5 million, consisting of $110.0 million in cash and the assumption of $73.5 million in indebtedness. The acquisition was funded by amounts available under our unsecured lines of credit.

On November 1, 2011, we closed on our admission as a member into Atlantic City Associates Number Three LLC that resulted in our acquiring substantially all of the economic interests in Phase III of Atlantic City Outlets The Walk. The acquisition price of Atlantic City Phase III, subject to a final earnout calculation, is estimated to be $15.9 million, consisting of $5.9 million in cash and the assumption of $10.0 million in indebtedness.

Atlantic City Outlets The Walk is comprised of approximately 491,000 square feet, built in a series of three phases, and is located across from The Boardwalk at the intersections of Atlantic, Baltic, Michigan and Arkansas Avenues. There are approximately 100 outlet stores, many of whom are current tenants at other Tanger Outlet Centers across the United States.

Ocean City Factory Outlets is comprised of approximately 200,000 square feet with approximately 40 outlet stores.

Hershey, Pennsylvania

On September 30, 2011, we purchased substantially all of the economic interests in The Outlets at Hershey, a 248,000 square foot outlet center, for an acquisition price of $49.8 million, consisting of approximately $18.4 million in cash and the assumption of $31.4 million of indebtedness. Concurrent with the transaction, we made a $6.2 million loan to the noncontrolling interest holder collateralized by their ownership interest in the property.

The aggregate purchase price of the properties acquired during the nine months ended September 30, 2011 has been allocated as follows:

	Value  (in thousands)			Weighted-Average Amortization Period (in years)
Land	$	6,425
Buildings, improvements and fixtures	287,933
Deferred lease costs and other intangibles
Above/below market lease value, net	4,897			7.0
Below market ground lease value	29,092			86.3
Lease in place value	23,340			3.8
Tenant relationships	27,876			9.9
Lease and legal costs	3,207			2.8
Total deferred lease costs and other intangibles, net	88,412
Mortgage fair value adjustments	(7,770		)
Net assets acquired	375,000
Less: noncontrolling interests	(7,635		)
Consideration transferred	367,365

There was no contingent consideration associated with these acquisitions.  We incurred approximately $2.5 million in third-party acquisition costs which were expensed as incurred.  The aggregate revenues and net loss from the properties from the acquisition dates through September 30, 2011, were $7.9 million, and $0.2 million, respectively.

Although we do not anticipate any changes in the fair value measurements of the acquisitions, the measurements may be subject to change within 12 months of the business combination date if new facts or circumstances are brought to our attention that were previously unknown but existed as of the business combination date.

The results of operations of the following acquired properties are included in the consolidated statements of operations beginning on their respective acquisition dates. The following unaudited condensed pro forma financial information for the three and nine months ended September 30, 2011 is presented as if the acquisitions had been consummated as of January 1, 2010, the beginning of the previous reporting period:

	(Pro forma)		(Pro forma)
	Three months ended September 30,		Nine months ended September 30,
	2011	2010	2011	2010
Total Revenue	84,822	79,569	247,178	231,021
Income from continuing operations	13,757	14,321	32,651	21,806