Prescott puts the focus on retail with launch of new company.

Prescott Capital Management, LLC, the investment and asset management unit of New York-based real estate merchant banking firm, The Prescott Group, LLC, has announced the formation of Ariel Preferred Retail Group, a nationally-focused retail property management company specializing in the value retail industry.

Prescott recently acquired a portfolio of six outlet center properties located in California, Nevada, Missouri, Minnesota, Michigan, and Georgia. The portfolio includes approximately 1,336,000 s/f of gross leasable area, now managed by Ariel.

Ariel's management includes James S. Harris, president, and Donald. E. Chapman, executive vice president. Both were senior executives of the McArthur Glen Group, one of the pioneers of the value retail industry and a leading developer and owner of outlet center properties.

A number of properties in the portfolio were originally developed by McArthur Glen. Over the next several years, Prescott intends to significantly expand its investment in the value retail sector through additional acquisitions and the expansion of existing centers.

Susan L. Stupin, managing director at Prescott, said, "We are pleased to have completed the purchase of our initial portfolio of properties in the value retail sector and look forward to making Ariel Preferred Retail Group a premier operator of outlet center properties."

James S. Harris, president of Ariel, added, "We believe it is a particularly favorable time to launch this major initiative in the value retail sector. In an evolving and rapidly consolidating industry, there are tremendous opportunities for a company focused on creating strong bonds with both tenants and shoppers."

Prescott has had a longstanding involvement in the value retail industry. Its investment banking unit arranged groundbreaking financing for properties owned by McArthur Glen prior to its initial public offering in 1993. At that time, Prescott became experienced in value retail properties and worked closely with McArthur Glen's management team. Prescott's purchase of the portfolio and the formation of Ariel as one of Prescott's portfolio companies are a direct result of that collaboration.

Ariel's properties will be rebranded as "Preferred Outlets," in reference to the centers' great variety of nationally-known tenants.