Wednesday, August 17, 2016

PREIT Sells Another Underperforming Center, This One In Washington, PA

by Steve Lubetkin,
PREIT says it sold its Washington Crown Center mall in Washington, PA, about 30 miles southwest of Pittsburgh, as part of its continuing divestitures of underperforming properties. The property was sold for $20 million.

“We remain committed to crafting a strong portfolio of assets that are well-positioned for the future,” says Joseph F. Coradino, CEO of PREIT. “This commitment has been evident in our disposition program as well as our remerchandising and redevelopment successes and has resulted in improved operating results including strong renewal spreads, margin improvement and same store NOI growth.”

Washington Crown Center, at 1500 W. Chestnut St., Washington, PA, is anchored by Bon-Ton, Macy’s, Gander Mountain and Sears.  As of June 30, 2016, the property generated sales per square foot of $313 and non-anchor occupancy of 87.4 percent.

In its sales of underperformers, PREIT says it has generated proceeds in excess of $660 million and the elimination of less-successful malls has driven its sales metrics to new levels, reaching $460 per square foot excluding Washington Crown Center.

PREIT is also trying to sell the Beaver Valley Mall, 570 Beaver Valley Mall Blvd., Monaca, PA, as part of its portfolio optimization plan. That property is about 32 miles northwest of Pittsburgh.

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