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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) February 13, 1997
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Prime Retail, Inc.
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(Exact name of registrant as specified in its charter)
Maryland 0-23616 52-1836258
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(State of other jurisdiction of (Commission File (IRS Employer
incorporation) Number) Identification No.)
100 East Pratt Street
Nineteenth Floor, Baltimore, Maryland 21202
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (410) 234-0782
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No Change
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(Former name or former address, if changed since last report)
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PRIME RETAIL, INC.
ITEM 5: Other Events
Reference is made to the Press Release dated February 13, 1997 attached
hereto as Exhibit 10.1 and incorporated by reference herein.
ITEM 7: Financial Statements and Exhibits
A. Financial Statements: None
B. Exhibits:
Description Exhibit
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Press Release dated February 13, 1997 announcing 10.1
Prime Retail's purchase of three factory outlets
and an additional 20.0% interest in Oxnard Factory
Outlet.
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PRIME RETAIL, INC.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PRIME RETAIL, INC.
(Registrant)
Dated: February 13, 1997
By: /s/ Robert P. Mulreaney
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Name: Robert P. Mulreaney
Title: Executive Vice President,
Chief Financial Officer
and Treasurer
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EXHIBIT INDEX
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Exhibit
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Press Release dated February 13, 1997 announcing Prime 10.1
Retail's purchase of three factory outlets and an
additional 20.0% interest in Oxnard Factory Outlet.
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FOR IMMEDIATE RELEASE FOR MORE INFORMATION
FEBRUARY 13, 1997 CONTACT: ROBERT P. MULREANEY
CHIEF FINANCIAL OFFICER
ANYA T. HARRIS
PUBLIC RELATIONS
(410) 234-0782
PRIME RETAIL INCREASES ITS OUTLET PORTFOLIO;
DEVELOPER PURCHASES THREE FACTORY OUTLET CENTERS
AND ADDITIONAL INTEREST IN EXISTING CENTER
BALTIMORE -- Prime Retail, Inc. ("Prime Retail" or the "Company") (NASDAQ:
PRME, PRMEP) has purchased Oak Creek Factory Outlets, Bend Factory Outlets and
Coeur D'Alene Factory Outlets from an unrelated third party for approximately
$37.3 million. In addition, on February 7, 1997, the Company purchased an
additional 20.0% equity interest from a joint venture partner in Oxnard Factory
Outlet, which brings Prime Retail's total equity interest in the property to
50.0%.
Abraham Rosenthal, chief executive officer of the Company, stated, "We are
pleased to add the three new outlet centers to our portfolio and to increase our
ownership of the Oxnard project. These acquisitions are expected to be accretive
to our earnings and are compatible with our existing outlet center portfolio.
The three centers also give Prime Retail presence in the West/Northwest region
of the United States where we see population growth."
PURCHASE OF OAK CREEK FACTORY OUTLETS, BEND FACTORY OUTLETS AND COEUR D'ALENE
FACTORY OUTLETS
Prime Retail acquired Oak Creek Factory Outlets, Bend Factory Outlets and
Coeur D'Alene Factory Outlets for an aggregate purchase price of $37.3 million
from an unrelated third party. The Company financed the purchase with loan
proceeds from a financial institution and a $4.0 million promissory note issued
to the seller.
Oak Creek Factory Outlets is located in Sedona, Arizona, which is north of
Phoenix and south of the Grand Canyon. Oak Creek Factory Outlets contains
approximately 82,000 square feet of gross leaseable area ("GLA") and was 98.6%
occupied at December 31, 1996. Lead merchants at Oak Creek Factory Outlets
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PRIME RETAIL INCREASES ITS OUTLET PORTFOLIO PAGE 2
include Jones New York, Mikasa, Anne Klein, G.H. Bass, Nine West, and Van
Heusen. Oak Creek Factory Outlets is the only center in the Sedona market and is
compatible with Arizona Factory Shops that the Company developed north of
Phoenix.
Bend Factory Outlets is located in Bend, Oregon, which is east of Eugene,
Oregon and southeast of Portland and is the only outlet center in this market.
Bend Factory Outlets contains approximately 97,000 square feet of GLA and was
100.0% occupied at December 31, 1996. Lead merchants at Bend Factory Outlets
include Eddie Bauer, Levi's Outlet, G.H. Bass, Reebok, and Nine West.
Coeur D'Alene Factory Outlets is located in Post Falls, Idaho, which is 30
miles east of Spokane, Washington. Coeur D'Alene Factory Outlets contains
approximately 179,000 square feet of GLA and was 85.3% occupied at December 31,
1996. Lead merchants include Mikasa, L'eggs/Hanes/Bali/Playtex, G.H. Bass, Van
Heusen, and Levi's Outlet.
William H. Carpenter, Jr., president of the Company, stated "With the
addition of the three new outlet centers, Prime Retail continues to retain its
industry position as the second largest developer, owner and manager of factory
outlet centers in the United States based on total GLA. We believe that our
leasing, marketing, and operations teams will enhance the shopping experience at
these centers."
PURCHASE OF ADDITIONAL 20% PARTNERSHIP INTEREST IN OXNARD FACTORY OUTLET
On February 7, 1997, Prime Retail purchased an additional 20.0% partnership
interest in Oxnard Factory Outlet from an unrelated third party. As a result of
this purchase, the Company owns a 50.0% equity interest in Oxnard Factory
Outlet. The remaining 50.0% equity interest is owned by an affiliate of Fru-Con
Development Corporation. Oxnard Factory Outlet is located in Oxnard, California,
which is south of Santa Barbara and north of Los Angeles. Oxnard Factory Outlet
contains approximately 148,000 square feet of GLA and was 89.0% occupied at
December 31, 1996. Lead merchants include Harmon Audio, Casual Corner Outlet,
Fila, Gap Outlet, Geoffrey Beene, Nine West, L'eggs/Hanes/Bali/Playtex, Max
Studio, and Petite Sophisticate.
Prime Retail is a self-administered, self-managed real estate investment
trust engaged in the ownership, development, and management of factory outlet
centers. Prime Retail's outlet center portfolio includes 24 outlet centers in 18
states, which total approximately 6.1 million square feet of GLA. Prime Retail
has been a developer of factory outlet centers since 1988. For additional
information, visit Prime Retail's web site at: http://www.primeretail.com.
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