Pennsylvania Real Estate Investment Trust
Company typePrivate
ISINUS7091021078 Edit this on Wikidata
IndustryReal estate investment trust
Founded1960; 64 years ago (1960)
FounderSylvan M. Cohen
HeadquartersPhiladelphia, Pennsylvania, U.S.
Key people
 Jared Chupaila, CEO
Glenn Rufrano executive chairman
ProductsShopping centers
RevenueDecrease US$261 million (2020)
Decrease US$-259 million (2020)
Total assetsDecrease US$2.177 billion (2020)
Total equityDecrease US$126 million (2020)
Number of employees
175 (2020)
Websitepreit.com
Footnotes / references
[1]

PREIT (Pennsylvania Real Estate Investment Trust) is a privately held company that owns and develops shopping centers mostly in the Mid-Atlantic states.

History

The company was founded by Sylvan M. Cohen in 1960 as one of the first equity REITs.[1][2] In 1997, the company acquired the Rubin Organization for $260 million.[3] In 2001, founder Sylvan Cohen died.[4] In 2003, the company acquired 6 shopping malls from The Rouse Company.[5][6] The company also acquired Crown American.[7] In 2006, the company acquired Woodland Mall for $177.4 million.[8] In 2012, Joseph Coradino was named chief executive officer of the company.[9]

In 2013, the company sold Christiana Center and Commons at Magnolia for $87.3 million.[10] In 2014, the company acquired a building in Philadelphia.[11] In 2015, the company acquired Springfield Town Center for $465 million from Vornado Realty Trust.[12] In 2016, the company sold 4 malls for $93 million.[13] In 2019, the company turned Wyoming Valley Mall over to its mortgage holder, GS Mortgage Securities Trust, to avoid foreclosure after failing to find a buyer for the property.[14][15] It owed $72.8 million on the loan, which had been in special servicing since July 2018.[14][16] The mall had lost almost 75% of its 2014 $122 million value before being turned over.[17]

The company filed for Chapter 11 bankruptcy protection on November 1, 2020, and exited bankruptcy protection on December 11, 2020.[18][19][20] In November 2023, PREIT announced that it may have to file for another bankruptcy filing and that it may be unable to continue operations as it overcomes a $1.1 billion payment that was due by the end of 2023, and stated that it will likely be unable to pay the payment before the deadline.[21]

On December 10, 2023, PREIT once again filed for Chapter 11 bankruptcy protection, with plans to restructure and complete its bankruptcy procedure by February 2024.[22] The company exited its bankruptcy proceedings in April 2024, and announced Jared Chupaila, former CEO of Brookfield Properties' retail real estate vertical, would replace Joseph F. Coradino as the company's CEO.[23] The company is now a private company controlled by a small group of investment firms that purchased its debt.[24]

Portfolio

According to a report from December 31, 2020, the company owned interest in 26 properties in 9 states containing 19.8 million square feet.[1]

As of November 2022, PREIT owned the following notable properties:

Mall Location Notes
Capital City Mall Camp Hill, Pennsylvania
Cherry Hill Mall Cherry Hill, New Jersey
Dartmouth Mall Dartmouth, Massachusetts
Exton Square Mall Exton, Pennsylvania
Francis Scott Key Mall Frederick, Maryland
Jacksonville Mall Jacksonville, North Carolina
Lehigh Valley Mall Whitehall, Pennsylvania 50% ownership with Simon Property Group. Simon manages the mall.
Magnolia Mall Florence, South Carolina
Moorestown Mall Moorestown, New Jersey
Patrick Henry Mall Newport News, Virginia
Plymouth Meeting Mall Plymouth Meeting, Pennsylvania
Springfield Mall Springfield, Pennsylvania 50% ownership with Simon Property Group
Springfield Town Center Springfield, Virginia
The Mall at Prince George's Hyattsville, Maryland
Valley Mall Hagerstown, Maryland
Viewmont Mall Scranton/Dickson City, Pennsylvania
Willow Grove Park Mall Willow Grove, Pennsylvania
Woodland Mall Grand Rapids, Michigan

References

  1. ^ a b c "Pennsylvania Real Estate Investment Trust 2020 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ "PREIT Celebrates 50 Years" (Press release). Business Wire. May 11, 2010.
  3. ^ "Rubin Organization is Being Sold for $260 Million". The New York Times. Bloomberg News. August 1, 1997.
  4. ^ Spires, Sheila W. (October 1, 2001). "PREIT founder and chairman Sylvan Cohen dies at 87". National Real Estate Investor.
  5. ^ "Pennsylvania Real Estate Investment Trust Completes Rouse Transaction; Company Closes Acquisition of Remaining Two Shopping Malls from The Rouse Company" (Press release). Business Wire. June 5, 2003.
  6. ^ "REIT is Buying 6 Philadelphia-Area Mall From Rouse". The New York Times. Bloomberg News. March 7, 2003.
  7. ^ "Pennsylvania Real Estate Investment Trust Announces Completion of Merger with Crown American Realty Trust" (Press release). Business Wire. November 20, 2003.
  8. ^ "Pennsylvania Real Estate Investment Trust Acquires Woodland Mall in Grand Rapids, Michigan" (Press release). Business Wire. January 3, 2006.
  9. ^ "Joseph Coradino Becomes Chief Executive Officer of PREIT" (Press release). Business Wire. June 7, 2012.
  10. ^ Van Allen, Peter (September 18, 2013). "Delaware mall sold by PREIT to reduce debt". American City Business Journals.
  11. ^ DiStefano, Joseph N. (January 29, 2014). "PREIT buys 15th & Walnut corner". The Philadelphia Inquirer.
  12. ^ Kostelni, Natalie (April 1, 2015). "PREIT closes on a $465M acquisition of a mall in Virginia". American City Business Journals.
  13. ^ Burdo, Alison (March 30, 2016). "PREIT sells 4 malls for $93M". American City Business Journals.
  14. ^ a b "PREIT Turns Over Wyoming Valley Mall in Deed-In-Lieu of Foreclosure". Commercial Real Estate Direct. September 27, 2019. Archived from the original on October 1, 2019. Retrieved December 30, 2019.
  15. ^ Allabaugh, Denise (October 1, 2019). "Wyoming Valley Mall avoids foreclosure". The Citizens' Voice.
  16. ^ "$74.3Mln CMBS Loan Against Pa. Mall Moves to Special Servicer as Vacancies Increase". Commercial Real Estate Direct. July 13, 2018. Archived from the original on October 1, 2019. Retrieved December 30, 2019.
  17. ^ Kostelni, Natalie (September 27, 2019). "PREIT gives mall back to lender". American City Business Journals.
  18. ^ Harris, Jon (December 11, 2020). "PREIT, co-owner of Lehigh Valley Mall, emerges from bankruptcy". The Morning Call.
  19. ^ Harris, Jon (November 2, 2020). "PREIT, co-owner of Lehigh Valley Mall, files for bankruptcy with plans to quickly restructure". The Morning Call.
  20. ^ Adelman, Jacob (November 2, 2020). "Viewmont mall owner PREIT files for bankruptcy in restructuring bid amid COVID-19 headwinds". Scranton Times-Tribune. The Philadelphia Inquirer.
  21. ^ "Mall Landlord PREIT Faces $1.1 Billion in Debt Payments Next Month". CoStar. November 14, 2023. Retrieved November 15, 2023.
  22. ^ "Pennsylvania Real Estate Investment Trust". BusinessBankruptcies.com. December 11, 2023. Retrieved December 11, 2023.
  23. ^ "PREIT exits Chapter 11, new CEO takes over". Chain Store Age. April 2, 2024. Retrieved April 2, 2024.
  24. ^ Blumgart, Jake; DiStefano, Joseph N. (2024-04-03). "Philly mall owner PREIT emerges from its second bankruptcy with new leadership". www.inquirer.com. Retrieved 2024-04-03.

External links

Pennsylvania Real Estate Investment Trust properties
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