PREIT Makes Meaningful Progress on Key Balance Sheet Improvement Initiatives, Securing Extension of Woodland Mall Mortgage and Unappealable Approval on Multi-Family Development at Moorestown Mall (12/15/21)
Successful 2019 redevelopment of Woodland Mall supports valuation; Secured tax incentive for Moorestown Mall lays groundwork for next phase of development
PHILADELPHIA, Dec. 15, 2021 /PRNewswire/ -- 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. These two key steps underscore the embedded value underlying PREIT's portfolio of irreplaceable assets and the Company's ongoing efforts to continue to evolve its properties as one-stop destinations for consumers.
The extension at Woodland Mall serves as a prime example of PREIT's redevelopment achievements. In 2019, PREIT completed its redevelopment of Woodland Mall by 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 second Cheesecake Factory. These tenants joined 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."
With the latest approval, Moorestown Mall can take its next step on the multi-family land, following approval of a tax incentive that is required for closing ("PILOT"). Executing on multi-family land sales represent 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 asphalt into value-enhancing real estate.
"Among other capital-raising initiatives, the PREIT team is keenly focused on executing our multi-family land sales to reduce leverage and our interest burden," Coradino said. "As the addition of apartments and hotels extends across our portfolio of properties, our growing customer base will deliver new benefits and value to our existing tenants and communities."
Moorestown Mall represents the differentiated thinking that PREIT believes is necessary needed to create value. The planned multi-family and hotel additions paired with the addition of a Cooper University Health Care facility bolster the existing dynamic mix of tenants at the property. Including traditional and value retail, dining, entertainment and fitness, Moorestown Mall exemplifies PREIT's five core areas of future growth.
PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages innovative properties developed to be thoughtful, community-centric hubs. PREIT's robust portfolio of carefully curated, ever-evolving properties generates success for its tenants and meaningful impact for the communities it serves by keenly focusing on five core areas of established and emerging opportunity: multi-family & hotel, health & tech, retail, essentials & grocery and experiential. Located primarily in densely-populated regions, PREIT is a top operator of high quality, purposeful places that serve as one-stop destinations for customers to shop, dine, play and stay. Additional information is available at www.preit.com or on Twitter, Instagram or LinkedIn.