PREIT executes three leases for replacement tenants following proactive recapture of Sears stores as previously announced
PHILADELPHIA PA, February 6, 2017 –Earlier this year, PREIT (NYSE: PEI) announced it had reached agreement with Sears to recapture three stores, among which were Capital City, Woodland and Magnolia Malls. The Company has executed leases for all three of these locations as part of a continued portfolio improvement effort. The following details relate to the Capital City Mall repositioning plans. Details on the other replacements will be contained in separate releases.
DICK’S Sporting Goods, following its relocation of an existing store in the market, will join the Field & Stream store at the property in Q4 2017, one of the brand’s first retail locations, along with additional space for more dynamic retailers. This addition will further solidify Capital City Mall as a prominent retail hub in its market, boasting the only DSW and Forever 21 stores in the region.
We are excited to have executed leases for all three Sears stores we recaptured. Capital City Mall’s position as the dominant retail center in the region will be strengthened with the addition of DICK’S Sporting Goods, complementing its many first-to-market and exclusive retailers and creating a retail mix that aligns with the interests of today’s consumer,” said Joseph F. Coradino, CEO of PREIT. “This project is another step in our plan to continue upgrading our portfolio of properties following our aggressive disposition and repositioning program which has created a quality platform that is more compelling to retailers and shoppers.
PREIT anticipates sales and traffic generated from the newly configured space will substantially outpace what is currently being delivered. For the three stores PREIT previously announced recapturing from Sears, the Company expects to generate incremental returns of 7 – 9 %.
The recapture and remerchandising of Sears reinforces PREIT’s proactive effort to diversify its mix of department stores, as part of the Company’s plan to continue strengthening its portfolio, which has resulted in strong financial returns and the addition of new in-demand retailers. The Company has reduced the number of Sears and Kmart stores in its portfolio from 27 to 10 since 2012. Currently, a former Sears at Viewmont Mall in Scranton PA is under construction, where DICK’S Sporting Goods, Field & Stream and HomeGoods will open this year. Additionally, at Exton Square in Chester County, PA, construction continues on Whole Foods which will replace a former K Mart, while Round 1 Entertainment recently opened in a former JCPenney space.
PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT’s 23 million square feet of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the eastern U.S. with concentrations in the mid-Atlantic’s top MSAs. Since 2012, the company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures. Additional information is available at www.preit.com or on Twitter or LinkedIn.
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SVP, Corporate Communications and Investor Relations