LAS VEGAS—PREIT, a Philadelphia-based retail REIT, has had an active year with the purchase of the Springfield Town Center and its plans to redevelop The Gallery in Philadelphia. The new moves are part of the company's plans to meticulously shape a high-quality portfolio. We sat down with the Joseph Coradino, CEO of the company, for an exclusive interview to find out about its investment plans, what characteristics are driving retail traffic and what they look for in a tenant mix, a component of every retail center that they say is “critical.” Here is an inside look at PREIT:

GlobeSt.com: Tell me about your current investment strategy and the types of retail properties on which you are focusing?

Joseph Coradino: We are acutely focused on shaping a high quality portfolio and are employing a multi-pronged approach toward achieving this objective –disposing of lower-productivity malls, strategically remerchandising our existing malls, redeveloping our higher-quality properties and, in the rare instance where a high-quality mall becomes available in an off-market transaction like Springfield Town Center, we have to consider acquiring it. So far this year, we closed on the Springfield Town Center acquisition, announced our plans to redevelop The Gallery  and have some other great projects in the pipeline—Exton Square Mall, Plymouth Meeting Mall and Mall at Prince Georges, to name a few.  

GlobeSt.com: What are the characteristics do you look for in an investment opportunity?

Coradino: Our priorities are market stability and return so we're looking to create strong assets in major markets that can help strengthen our portfolio. With Springfield Town Center, for example, we know this property will be transformative for PREIT—it is a high caliber, well-located asset in a high-income, growing trade area that can help us build relationships with new retailers or strengthen the ones we had. In terms of redevelopment opportunities, which provides the best return on invested capital, we are looking for  returns in excess of the prevailing cap rate and opportunities to really drive value and quality—instances where we can improve cap rates and of course NOI.

GlobeSt.com: You have a few redevelopment projects underway. What are some of the key trends in retail renovations that help attract the right type of tenant mix and consumers to the center?

Coradino: In most cases, we are really looking to create an overall experience that is compelling to the shopper—offering a variety of retail options along with creating a place to socialize—through design and the addition of dining and entertainment options. Shoppers have a lot of options these days so the mall has had to transform into a more holistic experience for the consumer whose time is limited. But the most important element for a successful shopping center, though, is the retail offerings. So, it's critical that we find the right mix of retailers for each market. 

GlobeSt.com: In which geographic markets are you finding your investment opportunities, and why?

Coradino: Our portfolio is concentrated on the East Coast, largely in the mid-Atlantic and greater Philadelphia. From a market perspective, we always want to make sure the market we're investing in has strong demographics and fundamentals or potentially a market catalyst we're aware of before we invest in it.

GlobeSt.com: A strong tenant mix is important. What types of tenants drive consumer traffic, and what makes a good tenant mix?

Coradino: Tenant mix varies by market but we find it important to create an overall experience that is compelling to shoppers and elicits frequent and extended visits. We find restaurants are a key ingredient in this mix—their offerings don't compete with retail, they offer an experience you can't find online and studies show that people who dine out are more inclined to make a purchase and tend to spend more when they do. 

Then the retailers have to be a good fit for the market—and we think bringing in quality first-to-market tenants is important—in some markets that's lululemon or Apple and in others it's Forever 21 or H&M. These unique tenants are a specific reason for someone to choose your shopping center over a competitor.  We are also focused on partnering with retailers that place a priority on the in-store customer experience—they make a big impact on the overall environment and are key traffic drivers.