PREIT Advances Mall Portfolio Upgrade with Deal to Sell 2 Properties; Decision to Market Another

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Washington Crown Center, Remaining Office Building at Voorhees Town Center Under Contract; Beaver Valley Mall Listed for Sale

Philadelphia-based mall owner PREIT continues to implement its strategy to upgrade its portfolio. The REIT has executed sale agreements and received non-refundable deposits for both the Washington Crown Center in Washington, PA, and the office building it owns at Voorhees Town Center in the New Jersey suburbs of Philadelphia.

The 676,000-square-foot Washington Crown Center in Washington, PA, is anchored by Bon-Ton, Macy’s, Gander Mountain and Sears. As of March 31, 2016, the property generated sales per square foot of $318 and non-anchor occupancy of 87.9%.

Also under contract is the 48,444-square-foot office building at 220 Laurel Road in Vorhees, NJ. Newmark Grubb Knight Frank has been listing the building for sale at $6.5 million.

Details including pricing and proceeds will be made available upon closing, the company said. The transactions are expected to close before the end of the third quarter of 2016.

The company also has decided to put its 1.12 million-square-foot Beaver Valley Mall in suburban Pittsburgh up for sale, which it has acknowledged at the worst performing mall in its portfolio. But PREIT noted the mall’s fortunes could soon see a boost be due for a boost.

Shell Chemical announced earlier this summer that it will move forward with the planned development of a multi-billion dollar petrochemical complex on a site one-and-a-half miles from the mall, which is expected to bring several thousand jobs to the region. This development presents an opportunity to maximize the value of the property upon sale while preserving capital for other investments, the REIT said.

PREIT has generated proceeds in excess of $645 million from property sales since June 2012.


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