LAS VEGAS—In April, PREIT and its partner Macerich Co. reached an agreement with the City of Philadelphia to redevelop and re-brand The Gallery shopping center, which is located in the heart of the city. The partnership's plans include a two-year renovation project that would transform the center into the Fashion Outlets of Philadelphia at Market East. While at ICSC in Las Vegas, we sat down with the Joseph Coradino, CEO of PREIT, for an exclusive interview to find out exactly what is planned for the center and how they have been able to clear the read tape and move forward. 

GlobeSt.com: What is your vision for The Gallery?

Joseph Coradino: Our vision for The Gallery is to create the next great urban marketplace in the country. Fashion Outlets of Philadelphia will completely transform the retail landscape of Philadelphia by reimagining the shopping, dining and entertainment experience for tourists, commuters, office workers, and residents throughout the city and the region.  It will be a fusion of luxury and moderate brands, popular flagship retail, artisanal food experiences and entertainment offerings.

GlobeSt.com: Why was The Gallery an ideal location for a retail redevelopment project? 

Coradino: The Gallery's location is really what makes the property so unique, so we are capitalizing on it being a “hub” of the city, where mass transit, tourism, the residential population and employment bases converge.  The Market East district is ripe for this type of development, and once it gets up and running, you'll see how the entire area will be transformed.

On a more global level, Philadelphia itself is primed for a retail renaissance. Considering Philly is the 5h largest city in the country, we need to have retail options that reflect the growth and significance of this city.

GlobeSt.com: You have had to clear a few hurdles to get this project through. What have been some of the challenges, and how have you been able to overcome them?

Coradino: The biggest challenge in getting to this point is that the project never had a single owner. Over the course of a decade, we acquired interests in four different buildings comprising the complex. The City of Philadelphia is currently a part owner through the PRA - cities can't commit the capital required to maintain a shopping center.  A normal shopping center would have some level of renovation completed every 7-15 years, but that hasn't occurred due to the ownership structure.

We've made it through our first two rounds of approvals with the School Reform Commission and the Redevelopment Authority – we are just awaiting approval from City Council Now.

Plus we feel that that the project will benefit from the participation of our partner Macerich, whose extensive experience in market-right development and leasing will help to deliver exceptional brands and retailers.  In short, it looks like good things will come to those who wait.

GlobeSt.com: How does this project fit in with you development strategy and goals?

Coradino: The redevelopment of the Gallery is a project in line with our portfolio quality improvement efforts. We have made remarkable progress on this front, having led the way in the sale of lower-productivity malls and shifted our intense focus on merchandising our assets, which has resulted in fundamental improvements in our portfolio. Our outlook on the future is bright.  We are a new PREIT, and The Gallery's transformation will demonstrate that fact.

GlobeSt.com: What are the economic benefits of the project?

Coradino: The economic benefits of redeveloping The Gallery are truly staggering. With this project comes the creation of over 4,000 jobs, and a one-time economic impact of $560 million.