PREIT Secures $150 Million Loan on Springfield Town Center

PREIT Secures $150 Million Loan on Springfield Town Center, Reduces Annual Interest Expense by Over $5 Million

PREIT today announced it has closed on a $150 million loan secured by Springfield Town Center, a key milestone in the Company’s plan to reduce high-cost debt and enhance financial flexibility. The five-year, interest-only loan, led by Goldman Sachs and Barclays Bank, carries a fixed interest rate of 7.115% and matures on July 6, 2030.

Proceeds of $136.2 million were used to pay down PREIT’s First Lien Term Loan, with the remaining balance applied to reduce borrowings under its First Lien Revolver. As a result, PREIT expects to realize more than $5.1 million in annual interest savings.

This financing reflects growing confidence in PREIT’s ability to execute on its business plan and the cash-flow-enhancing opportunities within its high-quality portfolio of assets. Springfield Town Center serves a primary trade area with extraordinary demographics, average household incomes exceeding $200,000, and home values around $850,000 in one of America’s wealthiest regions. Its location, at the intersection of three major highways—I-95, I-395, and I-495—collectively delivering 682,000 vehicles in daily traffic, serves its evolution into a premier mixed-use destination well.

The addition of the 32,000-square-foot LEGO® Discovery Center Washington D.C. enhances its appeal to families and boosts foot traffic. Complementing its strong retail base, Springfield Town Center is undergoing a major mixed-use transformation, with construction underway on 460 apartments along with an additional ~400 units in the planning phase, and a 165-room hotel, accompanied by a planned public park, expanded parking, and skybridge connectivity. These enhancements underscore PREIT’s strategy to diversify beyond traditional retail and create a dynamic community hub featuring dining, entertainment, wellness and a diverse mix of notable, high-credit quality retailers.

“The successful closing of this loan demonstrates the strength of our assets, improving perception of the mall sector and our ability to access capital on favorable terms,” said Jared Chupaila, CEO of PREIT. “It’s another important milestone in our strategy to de-lever the balance sheet and position PREIT for the future.”