Successful 2019 redevelopment of Woodland Mall supports valuation
Secured tax incentive for Moorestown Mall to pave the way toward multi-family development
PREIT (NYSE: PEI), a leading real estate investment trust focused on creating thoughtful, community-centric properties, today announced that it has met the criteria to extend the mortgage loan secured by Woodland Mall and has secured unappealable approval on our multi-family land at Moorestown Mall, taking the next step toward closing on multi-family land at Moorestown Mall following approval of a tax incentive that is required for closing (“PILOT”). These two key steps underscore the embedded value underlying PREIT’s portfolio of irreplaceable assets and the Company’s effort to continue to evolve its properties to serve as one-stop destinations for consumers.
Woodland Mall is a prime example of PREIT’s redevelopment achievements. In 2019, PREIT completed the redevelopment of Woodland Mall bringing in top-quality tenants Von Maur, Urban Outfitters, Sephora, local high-quality salon, Tricho, a new prototype Williams-Sonoma, REI, Black Rock Bar & Grill and Michigan’s 2nd Cheesecake Factory. These tenants join other top brands including Apple, Pottery Barn and Lush. Looking ahead, Woodland Mall is expected to house the portfolio’s first Rose & Remington, Lovisa and Offline by aerie. In 2022, Phoenix Theatres plans to bring the moviegoing experience back to the property in a renovated, top-tier offering.
“Achieving significant valuation improvement and cap rate compression compared to this time last year has allowed us to extend a key maturity on a strong property that is gaining momentum following our strategic redevelopment,” said Joseph F. Coradino, Chairman & CEO of PREIT. “As we look ahead, the improved valuation paints an encouraging picture for our ability to create value for our stakeholders.”
Moorestown Mall represents the differentiated thinking necessary to create value in many retail real estate properties in the future. The planned multi-family and hotel additions and the opening of Cooper University Health Care will add to the existing dynamic mix including traditional and value retail, dining, entertainment and fitness, the property will exemplify PREIT’s five core areas of future growth. Executing on multi-family land sales represents a key step for the Company on multiple fronts. First, they help to create thoughtful spaces that enhance the property and surrounding community while supporting a more sustainable future. They are also a critical piece of PREIT’s capital-raising efforts, transforming underutilized asphalt into value-enhancing real estate.
Coradino continued, “The PREIT team is keenly focused on executing on our multi-family land sales, among other capital-raising initiatives, to reduce leverage and our interest burden, making the satisfaction of PREIT’s obligations a meaningful step in this process. The synergistic addition of apartments and hotels throughout our portfolio will benefit our existing tenants and communities by increasing visits to the property and delivering a new customer.”