PHILADELPHIA, Aug. 8, 2018 /PRNewswire/ -- PREIT (NYSE: PEI) today announced the next phase of Plymouth Meeting Mall's transformation with the redevelopment of the property's Macy's store. Long before the term "retailtainment" was coined, PREIT was ahead of industry trends in transforming its properties from pure retail to full-scale lifestyle destinations, as evidenced by the evolution of Plymouth Meeting Mall. Its foresight into evolving consumer preferences and the need for differentiated retail offerings included the addition of Dave and Buster's in 2009, nearly a decade prior to the entertainment explosion at malls, and Whole Foods in 2010, one of the first grocery stores on a mall property.
Over the past several years, PREIT has continued to differentiate the property in the competitive retail environment with the addition of unique and in-demand concepts including LEGOLAND Discovery Center, just the 9th location in the country for this destination retail concept; Cyclebar, an indoor cycling studio; 5 Wits, a live-action entertainment escape room; Build-a-Bear kiosk, one of the brand's first kiosk deployments in the country; and Busy Bees Pottery & Arts Studio, a create-your-own project art studio – among many others. Today, nearly half of the property's space is dedicated to dining and entertainment, underscoring PREIT's early adoption of these experiential offerings to reimagine the retail experience. This unique blend of tenants and experiences, accentuated by AMC Movie Theatre, four sit down restaurants and popular apparel and accessory brands, recently earned the mall a place among Chain Store Age's Top 10 Retail Destinations in the country.
Looking toward the next phase of its evolution, PREIT will deliver at least five new and distinct uses on the former Macy's site with executed leases with three new tenants – Burlington, DICK's Sporting Goods, and Edge Fitness – as lead tenants to replace the former department store, underscoring PREIT's leadership in redefining the mall concept. The Company is also negotiating leases with an arts and crafts purveyor and a craft brewery.
This tenant mix represents a variety of retail segments and will continue to diversify the tenant mix at Plymouth Meeting Mall. A leader in the value category, Burlington will bring a new off-price offering to area shoppers delivering current, high quality, designer merchandise at prices up to 65% off, while DICK's Sporting Goods will provide consumers with a modern array of athletic apparel and equipment and outdoor gear. As health & wellness continues to expand in malls, PREIT is also welcoming Edge Fitness, which offers a full-service fitness platform – including group classes, indoor turf for training, and tanning and massages beds – at a competitive price. The new tenants are all anticipated to open in spring 2019.
In addition to these new concepts adding a self-care use to the expanded plaza shops, Phenix Salon Suites is expected to open late this year. The beauty brand enables salon professionals to occupy their own suites within the salon, providing a personal private space for stylists and their customers.
These new additions will not only further attract shoppers to the mall, but also drive revenue at the property. Sales from the anchor box will produce at least three times what was previously generated. With the potential for additional remerchandising and new mixed-use opportunities, Plymouth Meeting Mall is well-positioned to gain market share and lead the way for the future of retail real estate.
With a daytime population of 1 million, Plymouth Meeting Mall is located in a well-situated, high-trafficked region at the intersection of four of Philadelphia's major roadways. Over 90 million vehicles pass the mall per year, representing a significant opportunity to attract visitors from the surrounding region.
"Plymouth Meeting Mall is a posterchild for the new mall paradigm having integrated entertainment, dining, grocery, fitness and an array of soft goods into our roster, driving unique visitors to the mall regularly," said PREIT CEO Joseph F. Coradino. "With our proactive and strategic remerchandising efforts, including the redevelopment of the mall's anchor space, we have changed the definition of the 'mall' which we believe charts the course for the future of the industry."
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.
SVP, Strategy & Communications