PHILADELPHIA, Feb. 20, 2019 /PRNewswire/
-- PREIT (NYSE: PEI) today detailed new updates in the
transformation of Valley Mall in Hagerstown, MD – one of the Company's key
suburban Washington DC assets. As
part of its strategic efforts to strengthen its portfolio through
anchor repositioning and remerchandising, PREIT has successfully
replaced three department stores, with four tenants opening in just
two years.
Onelife Fitness and Tilt
Earlier this month, Onelife
Fitness opened its 70,000-square foot full-service gym, the
brand's fifth Maryland location.
The facility offers a community-focused, amenity-driven club –
including an extensive array of fitness classes, a cardio cinema
and indoor and outdoor pools, further differentiating this property
in the traditional mall landscape. Onelife Fitness joins Tilt
Studio in the former Macy's box with unique, experiential
concepts. Tilt Studio – one of just 13 locations in the country –
opened in September 2018, offering
48,000 square feet of attractions including rides, bowling, black
light laser tag, black light golf and arcade games.
Belk
In October, Valley Mall welcomed the region's
first Belk, which occupies 123,000 square feet in the former
Bon-Ton space. In July 2017, PREIT
announced the proactive recapture and replacement of Bon-Ton, which
closed in February 2018. Just nine
months later, Valley Mall opened its doors to the new-to-region
retailer, offering national brands and private-label fashion, shoes
and accessories.
DICK's Sporting Goods
In the latest milestone of the
property's ongoing evolution, PREIT has proactively recaptured the
former Sears box and executed a lease with DICK's Sporting Goods to
occupy 59,000 square feet with an anticipated opening in Spring
2020. PREIT has successfully replaced over 300,000 square
feet of space in three former department stores over the past
eighteen months and truly differentiated the mall's product
offering expanding its appeal to a broader base of consumers.
The new anchor concepts complement PREIT's ongoing
transformation of the mall. Regal Cinema will be remodeled this
year to introduce luxury reclining seating in a stadium format, and
PREIT recently upgraded dining amenities at the mall with the
addition of BJ's Brewhouse and the recently executed Black Rock Bar
& Grill, joining Primanti Bros., Mission BBQ and Red Robin.
These collective efforts are resulting in a measurable increase in
traffic and sales. The property's sales per square foot reached
back over $400 following multiple
years of anchor vacancy and are expected to grow further following
these additions.
"PREIT's ability to remain ahead of the curve and create a
portfolio that is attractive to new tenants and facilitate a vision
that is compelling to consumers differentiates the Company and
results in a successful transformation story for Valley Mall," said
Joseph Coradino, CEO of PREIT.
"While reports about department store struggles abound across the
country, PREIT can proudly proclaim that we have successfully
curated a strong mix of high-quality, thriving concepts across our
portfolio and have fully leased department stores in our core
portfolio."
The remerchandising and opening of these new anchor stores has
more than doubled the number of jobs available thus far. Valley
Mall is well-positioned in the burgeoning Hagerstown community, with a growing
population, key accessibility to major highways, and 1000 hotel
rooms within a half mile. Attracting shoppers from four states –
Maryland, Virginia, Pennsylvania and West Virginia – it is the dominant enclosed
shopping center in the region.
About PREIT
PREIT (NYSE:PEI) is a publicly
traded real estate investment trust that owns and manages quality
properties in compelling markets. PREIT's robust portfolio of
carefully curated retail and lifestyle offerings mixed with
destination dining and entertainment experiences are located
primarily in the densely-populated 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.
Forward Looking Statements
This press release
contains certain forward-looking statements that can be identified
by the use of words such as "anticipate," "believe," "estimate,"
"expect," "project," "intend," "may" or similar expressions.
Forward-looking statements relate to expectations, beliefs,
projections, future plans, strategies, anticipated events, trends
and other matters that are not historical facts. These
forward-looking statements reflect our current views about future
events, achievements or results and are subject to risks,
uncertainties and changes in circumstances that might cause future
events, achievements or results to differ materially from those
expressed or implied by the forward-looking statements. In
particular, our business might be materially and adversely affected
by changes in the retail and real estate industries, including
consolidation and store closings, particularly among anchor
tenants; current economic conditions and the corresponding effects
on tenant business performance, prospects, solvency and leasing
decisions; our inability to collect rent due to the bankruptcy or
insolvency of tenants or otherwise; our ability to maintain and
increase property occupancy, sales and rental rates; increases in
operating costs that cannot be passed on to tenants; the effects of
online shopping and other uses of technology on our retail tenants;
risks related to our development and redevelopment activities,
including delays, cost overruns and our inability to reach
projected occupancy or rental rates; acts of violence at malls,
including our properties, or at other similar spaces, and the
potential effect on traffic and sales; our ability to sell
properties that we seek to dispose of or our ability to obtain
prices we seek; our substantial debt and the liquidation preference
of our preferred shares and our high leverage ratio; our ability to
refinance our existing indebtedness when it matures, on favorable
terms or at all; our ability to raise capital, including through
sales of properties or interests in properties and through the
issuance of equity or equity-related securities if market
conditions are favorable; and potential dilution from any capital
raising transactions or other equity issuances.
Additional factors that might cause future events, achievements
or results to differ materially from those expressed or implied by
our forward-looking statements include those discussed herein and
in our Annual Report on Form 10-K for the year ended December 31, 2017 in the section entitled "Item
1A. Risk Factors." We do not intend to update or revise any
forward-looking statements to reflect new information, future
events or otherwise.
CONTACT:
Heather
Crowell
SVP, Strategy and Communications
(215) 454-1241
heather.crowell@preit.com
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