Pennsylvania Real Estate Investment Trust (NYSE: PEI) has reached an agreement that will open the door for the sale of the estate under the agreement of sale. The company stated that the Fairfax County Board of Supervisors unanimously passed the development of 460 apartments and a 165-room hotel.
The overarching plan of PREIT is to reshape Springfield Town Center into a vibrant, multi-use hub. The company is planning to leverage its unrivaled location to become the predominant family entertainment location in the Washington, DC market. PREIT believed that Springfield Town Center is perfectly positioned to attract the best retailers and remain a premier shopping destination as it is situated in the third wealthiest county in the United States.
Furthermore, PREIT is happy to obtain permission for the multi-use development that was envisioned before the 2014 mall redevelopment. The company believed that the inclusion of apartments and hotel rooms will increase its customer base while also providing value to its current residents and enabling it to gather capital from its desirable real estate.
The sale of multi-family land is an important step for the Company on several fronts. First, they contribute to the creation of thoughtful spaces that improve the property and local communities while promoting a more sustainable future. They are also essential to PREIT’s capital-raising efforts, as they convert underutilized land into value-added real estate. The company anticipated generating roughly $20 million, in addition to the $112 million in profits raised from asset sales in 2022. Additionally, the Company is likely to end these sales at Springfield Town Center in the second quarter of 2023, and it has another $120 million in asset sales in the works.