PREIT Signs Burlington as Lead Tenant to Replace Sears at Magnolia Mall
PREIT executes three leases for replacement tenants following proactive recapture of Sears stores as previously announced
The off-price retailer and two additional tenants to replace the department store
PHILADELPHIA, Feb. 15, 2017 /PRNewswire/ -- Earlier this year, PREIT (NYSE: PEI) announced it had reached agreement with Sears to recapture 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 Magnolia Mall repositioning plans, following previous announcements that the Company would replace the other Sears stores with Von Maur at Woodland Mall and DICK's Sporting Goods at Capital City Mall.
At Magnolia Mall in Florence, SC, Burlington will open in the 4th quarter of 2017, following Sears' February 2017 closure. In addition to Burlington, the Company is in advanced discussions with two additional retailers for spaces that will be created adjacent to Burlington, diversifying the tenant roster and strengthening the asset's market dominance.
As the first Burlington location in the region, the national off-price retailer will bring high-quality, name-brand apparel at everyday value to the Florence market. Florence is a popular stop over for travelers between the Northeast Corridor and Florida, a result of its prime location adjacent to I-95 and I-20 highways. With nearly a dozen hotels and 1,000 rooms adjacent to the mall coupled with the strong economy driven by large South Carolina employers, Magnolia Mall is the retail hub evidenced by sales improvement to $422 per square foot as of December 31, 2016 from $388 a year prior. Its position is strengthened by the presence of an existing diverse anchor mix that includes Belk, JC Penney, DICK's Sporting Goods and Best Buy.
PREIT anticipates sales and traffic generated from these additions will substantially outpace what is currently being delivered. For the three stores PREIT previously announced recapturing from Sears, the Company expects to generate returns of 7 – 9 % and will share details of projected capital spending in conjunction with its upcoming earnings release.
"We are pleased to announce the replacements for all three Sears stores we recaptured. The addition of Burlington at Magnolia Mall will not only diversify offerings for the local residents and travelers, but fortify our strategy to continue improving the quality of our portfolio through ambitious remerchandising and redevelopment initiatives that will serve to further attract in-demand retailers," said Joseph F. Coradino, CEO of PREIT. "With consumer demand for off-price retail continuing to grow, Burlington will complement Magnolia Mall's merchandise mix, creating value and driving traffic, sales and NOI at the property."
About PREIT
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.
CONTACT: AT THE COMPANY
Heather Crowell
SVP, Corporate Communications and Investor Relations
(215) 454-1241
[email protected]
SOURCE PREIT
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