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05/31/2022

PREIT sells 11 outparcels and raises $32 million

Al Urbanski
Real Estate Editor & Manager
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Springfield Town Center
A vacant space at PREIT'S Springfield Town Center in Virginia will soon be filled with a hotel.

Located at Main and Main in top markets, Class A regional malls sit on valuable real estate -- and mall REITs are taking advantage of that to raise capital.

The latest is PREIT, owner of major market malls such as Cherry Hill Mall in New Jersey and Fashion District in downtown Philadelphia. It has announced the sale of 11 outparcels for $32 million and has executed a $2.5 million agreement of sale to a hotel chain for a vacant parcel at Springfield Town Center in Springfield, Va.

The company expects that the outparcels will close in multiple phases with a portion closing prior to June 30, 2022. Closing on the hotel parcel is anticipated to occur in the fourth quarter of 2022.

“We are confident we can strategically harvest value from our portfolio to reduce debt," said PREIT CEO Joe Coradino.

These deals are part of the asset sale pipeline reported in PREITs first-quarter earnings expected to enhance the company’s capitalization by $275 million. The company expects the outparcels to close in multiple phases with a portion closing prior to June.  Closing on the hotel parcel is anticipated to occur in the fourth quarter of this year.

Last week CBL Properties reported that it would redeem $355 million in senior secured notes to be backed by 13 of its open-air centers and 91 high-demand outparcels.