PREIT Strategy of Proactively Replacing Sears Stores Continuing

by Steve Lubekin Globest.com
PREIT is proactively replacing Sears stores and says the project has resulted in minimal exposure to the troubled department store, down from 27 stores in 2012 to just four active stores today, when factoring in locations at lease with replacement tenants, those with non-recourse mortgage loans and one location with a significant portion of the space sub-leased by Sears to others.
Since 2017, PREIT has proactively replaced five Sears locations and has reached agreement to recapture a sixth store.  As part of its overall anchor repositioning and remerchandising strategy, PREIT has diversified the tenant roster with unique and experiential concepts to reflect the new mall model and drive traffic and sales while improving the underlying tenant credit within the portfolio.

“Just as we were proactive in disposing of lower-productivity malls, we have positioned ourselves well with minimal exposure to Sears in the event of potential material store closing event.  As we look to redefine the mall experience, we are finding great success in replacing department stores with a variety of uses and experiences in line with the interests of today’s consumer,” says Joseph F. Coradino, CEO of PREIT. “Our tireless effort to improve our portfolio continues and has laid the foundation for continued growth in traffic, sales and value for our shareholders.”
PREIT provided a list of new anchor tenants throughout its portfolio, either signed or opened, across several in-demand retail segments:

Segment                                Brand                  Property
Off-Price                                                                  Magnolia Mall
                                               Burlington          Plymouth Meeting Mall
                                               HomeGoods          Viewmont Mall
                                                                                 Magnolia Mall

                                              Five Below          Magnolia Mall
                                              HomeSense               Moorestown Mall
                                              Sierra Trading           Moorestown Mall


Entertainment                       Tilt                         Valley Mall
                                            Studio Movie Grille Willow Grove Park
Fitness                             Edge Fitness         Plymouth Meeting Mall
                                            One Life Fitness         Valley Mall
Sporting Goods                   DICK’s Sporting Goods Viewmont Mall
                                                                                   Capital City Mall
                                                                                 Plymouth Meeting Mall

                                             Field & Stream         Viewmont Mall
Department Store              Belk                          Valley Mall
                                             Von Maur                  Woodland Mall
Food and Dining              Primanti Bros Capital City Mall
                                             Fine Wine & Good Spirits Capital City Mall
                                             Whole Foods          Exton Square Mall

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