REI recently opened at the Woodland Mall in Grand Rapids, MI.
PHILADELPHIA—PREIT reports that its mall remerchandising efforts have produced strong sales at some of its premier properties, boosting April comparable store sales to $525-per-square-foot in its core mall portfolio.
The retail REIT, which stated that the recent announcement of the closure of all dressbarn locations will not impact the company's core mall portfolio, reported that three of its properties topped $600-per-square-foot in sales in April and the Willow Grove Park (Willow Grove, PA) exceeded $750 per square foot in sales during that period.
Based on the strong sales at its portfolio, PREIT has increased its sales goal for 2019 to $550-per-square-foot. At the recent industry deal-making convention—ICSC RECon—PREIT reports that it hosted more than 100 meetings with potential new-to-portfolio brands.
Noting that dining is a key component of the transformative mall experience it looks to create at its properties, PREIT is adding three new restaurants to its portfolio: Black Rock Bar and Grill is expected to open this August at Valley Mall in Hagerstown, MD (also opening this fall at the Woodland Mall in Grand Rapids, MI); Fatburger at Cherry Hill Mall in Cherry Hill, NJ will open this summer; and Miller's Ale House is set to open in September at the Plymouth Meeting Mall (PA) and will follow that with a new location at the Mall at Prince George's in Hyattsville, MD. Since 2012, PREIT has increased the space leased to dining and entertainment tenants by 42%.
In addition, PREIT recently celebrated the opening of its first REI at the Woodland Mall and will soon add the portfolio's first A'Beautiful Soul here. A'Beautiful Soul is a sister concept to Altar'd State, which recently opened its first location in PREIT's portfolio at the Woodland Mall as well. Sales at the Woodland Mall now exceed $600-per-square-foot, ,which PREIT notes is before the full benefits of the mall's redevelopment take effect.
“Creating a diverse tenant mix is a key ingredient in today's rapidly-evolving retail climate,” says Joseph F. Coradino, CEO of PREIT. “We are well positioned with a high-quality portfolio in desirable markets to capture tenants that create a compelling consumer experience. Our newest tenant additions complement our existing portfolio and further drive traffic to our properties.”
Earlier this year, PREIT announced the recent opening of a number of new dining experiences such a first-to-market Cheesecake Factory at Woodland Mall and Hash House A Go-Go's first New Jersey location at the Moorestown Mall; as well as a first-of-its kind co-working space/collaborative hub, 1776, at the Cherry Hill Mall.
In May, PREIT reported first quarter core mall sales per-square-foot reached a record high of $517. The firm completed $43 million in asset sales and improved its liquidity position by more than $70 million. PREIT's core mall occupancy increased 100 bps to 94.7% in the first quarter.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
