Both "possess untapped potential," says Joseph Coradino, president of PREIT Services LLC and PREIT-Rubin Inc. PREIT acquired them as part of its 2003 acquisition of Crown American Realty Trust.
In 2006, locally based PREIT completed redevelopment of eight properties, six of which came from Crown, "and we're adding more redevelopments as we speak," a spokesman says. He declined to disclose PREIT's estimated investment in North Hanover and Jacksonville. Both redevelopments include significant esthetic enhancements along with new tenants.
Boscov's and Dick's Sporting Goods have inked leases at North Hanover. Boscov's is replacing Bon-Ton, which was vacated a year ago and has been demolished. Site work is underway for a two-level, 170,000-sf Boscov's, which is scheduled to open in spring 2008. It will join existing anchors Sears and JC Penney.
Dick's is replacing Black Rose Antiques at North Hanover. The Black Rose unit is being demolished to make way for a 50,000-sf Dicks unit, which is scheduled to be open for holiday 2007.
As of Dec. 31, 2006, according to a PREIT supplemental SEC filing, North Hanover was 75.1% occupied. The average base rent was $21.39 per sf, up 6.6% from the average base rent at the end of 2005. In-line same-store sales were $300 per sf.
Barnes & Nobel has signed a lease for 28,000 sf next to the Belk anchor at Jacksonville Mall. This represents an expansion of the mall by 13,000 sf, the spokesman says, and it is scheduled to open in spring 2008. A second phase of the mall's redevelopment calls for an additional 14,000 sf, which will include two new restaurants with outdoor seating areas. This phase is expected to reach completion by holiday 2008.
The two additions, which have been approved by the Jacksonville planning board and city council, will take the mall footprint above 500,000 sf. The anchors are JC Penney and Sears in addition to Belk.
As of Dec. 31, 2006, Jacksonville Mall was 95.8% occupied, and the average base rent was $29.50 per sf, up 4.7% from the same time at the end of 2005. Comp-store sales were $456 per sf, up 12.2% for the year.
"We are continually seeking new opportunities to create value," Coradino says. "By improving both properties we will increase their value and enhance our shoppers' experience."
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