PREIT Completes Extension of Key Mortgage Maturity and Provides Update on Asset Sales
PREIT today, announced that it has executed an extension of the mortgage loan secured by Woodland Mall in Grand Rapids, MI. The loan, with an unchanged interest rate, has been extended through June 10, 2023 with an additional option to extend through October 5, 2023.
Woodland Mall serves as a prime example of PREIT’s value creation endeavors. In 2019, PREIT completed its redevelopment of Woodland Mall by bringing in top-quality tenants Von Maur, Urban Outfitters, Sephora, a new prototype Williams-Sonoma, REI, Black Rock Bar & Grill and Michigan’s second Cheesecake Factory. These tenants joined existingtop brands including: Apple, Pottery Barn and Lush. In 2022, Phoenix Theatres opened, upgrading the moviegoing experience and adding a family entertainment option.
PREIT also completed the sale of a former department store space at Valley View Mall for gross proceeds of $2.6 million. During 2022, the Company sold assets generating $114million in gross proceeds and has applied asset sale proceeds and excess cash from operations to pay down debt by $154million through December 31, 2022. The Company has another $164 million of asset sales in the pipeline.
“We are pleased to have secured this key extension, having also recently extended the maturity date on our Credit Facilities, meaningful milestones for our debt maturity schedule,” said Joseph F. Coradino, Chairman and CEO of PREIT. “Executing on asset sales and utilizing excess cash to pay down debt is a top priority for PREIT as we start 2023.”