PREIT (NYSE: PEI), today, announced that it has obtained unanimous approval from the Fairfax County Board of Supervisors for the development of 460 apartments and a 165-room hotel, paving the way for the sale of the land parcels both of which are under agreement of sale. A key part of PREIT’s capital plan, the sale of these parcels is expected to generate approximately $20 million for PREIT, in addition to the $112 million in proceeds the Company has raised from asset sales in 2022. The Company expects to close on these sales at Springfield Town Center in Q2 2023 and has another $120 million of asset sales in the pipeline.
Executing on multi-family land sales is 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 critical to PREIT’s capital-raising efforts, transforming underutilized land into value- enhancing real estate.
PREIT’s overall vision is to transform Springfield Town Center into a vibrant, multi-use hub and take advantage of its unrivaled location to create the preeminent family entertainment destination in the Washington, DC market. As part of this transformation, LEGO® Discovery Center has officially broken ground with an opening planned for summer 2023. The mall’s highly diversified tenant mix includes traditional retail, top-tier full service dining destinations, entertainment, fitness and other value retail offerings.
“We are thrilled to receive a green light on the multi-use development that was conceived prior to the 2014 mall redevelopment,” said Joseph F. Coradino, Chairman & CEO of PREIT. “The addition of apartments and hotel rooms will result in growing our customer base and delivers value to our existing tenants, while allowing us to harvest capital from our highly desirable real estate.”
Located in the third wealthiest county in the United States, Springfield Town Center is well-positioned to attract quality retailers and continue to be a premier shopping destination.