{"id":1004124475,"date":"2015-08-03T05:59:22","date_gmt":"2015-08-03T13:59:22","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004124475"},"modified":"2020-04-21T02:52:32","modified_gmt":"2020-04-21T10:52:32","slug":"deals-boost-preits-makeover","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/deals-boost-preits-makeover\/","title":{"rendered":"Deals Boost PREIT’s Makeover"},"content":{"rendered":"

By Scott Baltic, Contributing Editor<\/em><\/p>\n

\"Steven<\/a>

Steven Marks, Fitch<\/p><\/div>\n

Last week\u2019s announcement by Pennsylvania Real Estate Investment Trust <\/a>that it would be selling three malls, two in Alabama and one in Virginia, for $95.4 million was just the latest deal in PREIT\u2019s ongoing repositioning. (The three properties, Gadsden Mall in Gadsden, Ala.; Wiregrass Commons Mall in Dothan, Ala.; and New River Valley Mall in Christiansburg, Va., are to be sold to an unidentified institutional investor.)<\/p>\n

In the same announcement, PREIT stated that it\u2019s negotiating sale agreements on \u201ctwo additional non-core malls\u201d and expects to execute those within several weeks.<\/p>\n

And in another release the same day, the REIT reported its second-quarter results and referenced its sale of Uniontown Mall, in Uniontown, Pa., for $23 million and the sale of PREIT\u2019s 50 percent interest in Springfield Park, an open-air center in Springfield, Pa., for $20.2 million.<\/p>\n

\u201cThe progress we have made in improving our portfolio is yielding standout results,\u201d CEO Joseph Coradino said in a prepared statement. \u201cWe will have sold seven non-core malls with three more under contract, two additional agreements of sale being negotiated and double-digit portfolio sales growth, creating a higher-quality portfolio that is more compelling to retailers and investors.\u201d<\/p>\n

But PREIT has been doing more than just selling. The company is redeveloping, in partnership with The Macerich Co., The Gallery in Philadelphia (to be renamed Fashion Outlets of Philadelphia at Market East), a project that will include $55 million in TIF funding.<\/p>\n

And as Commercial Property Executive<\/em> reported in April, PREIT bought<\/a> the newly redeveloped 1.4-million-square-foot Springfield Town Center in Springfield, Va., from Vornado Realty Trust for $465 million.<\/p>\n

In its financial results, PREIT highlighted some key figures as of June 2012 versus where the company\u2019s portfolio will stand once the current dispositions are completed:<\/p>\n