Approval Sets the Stage for Asset Transformation; Closing on Land Sale
Today we announced that PREIT will proceed with its plan to transform its properties into multi-use, sustainable districts with the execution of a rezoning agreement to allow for the addition of up to 1,065 multifamily units and a hotel at Moorestown Mall. Together, with plans to add several thousand units across its portfolio through the sale of land to multifamily developers, PREIT’s densification program is expected to generate over $150 million in proceeds which will serve as a new liquidity source and be used to reduce debt.
This is part of the Company’s strategic plan to diversify the mix of uses at its mall sites with 5 – 7,000 apartment units and several hotel sites. PREIT is in the final stages of delivering 3,500 apartment units in an initial phase. PREIT is focused on reinventing its platform by creating a diverse and expansive environment, marked by a healthy mix of multifamily housing, hotels, entertainment, dining, health & wellness, green space, working space, and local small business retail. This initiative capitalizes on bullseye locations to produce a broader consumer base, create stronger business models and provide greater market flexibility. Over the course of the past decade, as an initial step in this transformation, PREIT has reinvented its mall properties through the introduction of a variety of uses including entertainment venues, extensive dining programs, off-price and value purveyors, fitness centers and traditional open-air tenancy.
Like many of PREIT’s Philadelphia and DC-area properties, Moorestown Mall is ideally situated for a residential community with tremendous access to roadways, along with over 13 million square feet of office space in the trade area. With unique tenancy including leading off-price retail purveyors, traditional retail, dining and entertainment options, Moorestown Mall offers a one-stop hub fulfilling customer needs from convenience to fun.
The first phase of the project is expected to deliver 375 residential units and a hotel. This initial phase will allow for PREIT’s second multifamily development following the completion of 350 units at Exton Square. PREIT currently anticipates it will close on the sale of the initial parcel in 2021 for $8 million.
“Our foresight has shaped a high-quality portfolio with a strong retail core that attracts a distinctive mix of new uses to redefine the future-ready retail and leisure district, including over 3,500 apartment units that are in the final stages of entitlement,” said Joseph F. Coradino, CEO of PREIT. “The synergistic addition of apartments and hotels will benefit our existing tenants and communities by increasing visits to the property and delivering a new customer.”