As many of you know, Prime Outlets should be wrapping up construction in July of 2011 (as stated on Prime’s website). The city of Livermore has eagerly chased this project for years and recently announced ground-breaking shall commence early 2010. It seems as though everything is on track, but is it…
Today, a press release from Simon Property Group (the HUGE mall operator) announced the acquisition of Prime Outlets. Simon Property Group has a 25% stake of both Stoneridge and the Great Mall. Prime Outlets is owned by a larger company named the Lightstone Group. The Lightstone Group has been struggling though the economic downturn. Extended Stay Hotels, which you may remember is in bankrupcy, is owned by Lightstone Group.
The purchase price for Prime: $2.235 billion
What does all this mean for Livermore? At this point nothing has been announced and there is a good chance nothing will come of the change in ownership. That said, my experience in commercial real estate has led me to never count my chickens before they hatch. I would not be surprised to see the project fall apart given the current circumstances. Livermore is not among the 22 properties in the Prime portfolio mentioned in the press release below.
Simon Press Release: