PREIT Announces Burlington as One of Many New Additions Joining Springfield Town Center
PREIT announced a new 30,000 square foot Burlington store at Springfield Town Center, boosting occupancy to a record 95.5% in 2023. Alongside the Burlington addition, the LEGO Discovery Center and other retailers are set to enhance the center's appeal. Fairfax County's Board of Supervisors has approved plans for 460 apartments and a 165-room hotel, furthering PREIT's vision of transforming the area into a family entertainment hub. The diversified tenant mix aims to attract a wide range of customers, supporting the mall's success.
- Record occupancy rate of 95.5% expected with new retail openings.
- Approval for 460 apartments and a 165-room hotel signifies growth potential.
- Potential risks related to a high leverage ratio and substantial debt.
- Dependence on the retail sector, which faces challenges from online shopping and economic conditions.
75,000 Square Feet of Retail and Entertainment Space Set to Open in 2023
Occupancy to Reach Record
Approvals Recently Obtained for 460 Apartments and 165 Room Hotel
PHILADELPHIA, Jan. 5, 2023 /PRNewswire/ -- PREIT , today, announced that it has signed a lease with Burlington Stores for a new 30,000 square foot store at Springfield Town Center in Fairfax County, VA, expected to open in 2023. It will join the new LEGO ® Discovery Center and several other new additions including Lovisa, BoxLunch, Daily Thread and Carters among others. The opening of these new tenants will drive occupancy at Springfield Town Center to a record
PREIT's overall vision is to transform Springfield Town Center into a vibrant, multi-use hub and take advantage of its unrivaled location to create the preeminent family entertainment destination in the Washington, DC market. As part of this transformation, unanimous approval from the Fairfax County Board of Supervisors was recently obtained for the development of 460 apartments and a 165-room hotel, paving the way for the sale of land parcels to developers.
The mall's highly diversified tenant mix includes traditional retail, top-tier full service dining destinations, entertainment, fitness and other value retail offerings – Nordstrom Rack, Five Below and Target. The addition of Burlington builds on the plan to offer more options to a wide array of customers and highlights the attractiveness of the site to retailers. In 2022, over 20,000 square feet of stores opened their doors for operation at Springfield Town Center.
"We are pleased to welcome Burlington Stores to Springfield Town Center, another milestone in our mission to create a diverse tenant mix including non-traditional mall retailers," said Joseph F. Coradino, Chairman & CEO of PREIT. "The addition of Burlington Stores, the upcoming opening of LEGO ® Discovery Center, and the planned apartment and hotel developments will strengthen the property's appeal to customers and prospective tenants."
Located in the third wealthiest county in the United States, Springfield Town Center is a premier shopping destination well-positioned to attract quality retailers and thrive as a premier shopping destination.
About PREIT
PREIT (OTC: PRET) is a real estate investment trust that owns and manages innovative properties developed to be thoughtful, community-centric hubs. PREIT's robust portfolio of carefully curated, ever-evolving properties generates success for its tenants and meaningful impact for the communities it serves by keenly focusing on five core areas of established and emerging opportunity: multi-family & hotel, health & tech, retail, essentials & grocery and experiential. Located primarily in densely-populated regions, PREIT is a top operator of high quality, purposeful places that serve as one-stop destinations for customers to shop, dine, play and stay. Additional information is available at www.preit.com or on Twitter, Instagram or LinkedIn.
Forward Looking Statements
This press release contains certain forward-looking statements that can be identified by the use of words such as "anticipate," "believe," "estimate," "expect," "project," "intend," "may" or similar expressions. Forward-looking statements relate to expectations, beliefs, projections, future plans, strategies, anticipated events, trends and other matters that are not historical facts. These forward-looking statements reflect our current expectations and assumptions regarding our business, the economy and other future events and conditions and are based on currently available financial, economic and competitive data and our current business plans. Actual results could vary materially depending on risks, uncertainties and changes in circumstances that may affect our operations, markets, services, prices and other factors as discussed in the Risk Factors section of our other filings with the Securities and Exchange Commission. While we believe our assumptions are reasonable, we caution you against relying on any forward-looking statements as it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the effectiveness of strategies we may employ to address our liquidity and capital resources in the future, our ability to achieve our forecasted revenue and pro forma leverage ratio and generate free cash flow to further reduce our indebtedness; our ability to manage our business through the impacts of the COVID-19 pandemic, a weakening of global economic and financial conditions, changes in governmental regulations and related compliance and litigation costs and the other factors listed in our SEC filings. Additionally, our business might be materially and adversely affected by changes in the retail and real estate industries, including bankruptcies, consolidation and store closings, particularly among anchor tenants; current economic conditions, including consumer confidence and spending levels and supply chain challenges and the impact of the COVID-19 pandemic and the public health and governmental response as well as the corresponding effects on tenant business performance, prospects, solvency and leasing decisions; our inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; our ability to sell properties that we seek to dispose of, which may be delayed by, among other things, the failure to obtain zoning, occupancy and other governmental approvals and permits or, to the extent required, approvals of other third parties or our ability to obtain prices we seek; our ability to maintain and increase property occupancy, sales and rental rates; increases in operating costs that cannot be passed on to tenants; the effects of online shopping and other uses of technology on our retail tenants; risks related to our development and redevelopment activities, including delays, cost overruns and our inability to reach projected occupancy or rental rates; social unrest and acts of vandalism and violence at malls, including our properties, or at other similar spaces, and the potential effect on traffic and sales; the frequency, severity and impact of extreme weather events at or near our properties; our substantial debt and the liquidation preference of our preferred shares and our high leverage ratio and our ability to remain in compliance with our financial covenants under our debt facilities; our ability to refinance our existing indebtedness when it matures, on favorable terms or at all; our ability to raise capital, including through sales of properties or interests in properties and through the issuance of equity or equity-related securities if market conditions are favorable; and potential dilution from any capital raising transactions or other equity issuances.
Additional factors that might cause future events, achievements or results to differ materially from those expressed or implied by our forward-looking statements include those discussed herein, and in the sections entitled "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021 and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022. We do not intend to update or revise any forward-looking statements to reflect new information, future events or otherwise.
Contact:
Heather Crowell
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SOURCE PREIT
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