“Giant” Expected to be Buyer for Center City Property Being Sold by Willow Grove Mall Owner
For the last few weeks PREIT has been busy securing their bankruptcy restructuring plan, which will enable them to free up $150 million in borrowing.
It now seems that the first phases of that restructuring are underway, as PREIT plans to sell off part of the Strawbridge’s department store building in Center City, as reported by Jacob Adelman of The Philadelphia Inquirer.
The buyer of the lower level of the building is 801 Market Partners LLC, who people may know better for their ties to Giant supermarkets. This has led to speculation that the purchased property may be converted into a grocer.
If the sale goes through, it is only the first of many sales that PREIT is planning.
As detailed in PREIT’s bankruptcy filing, they have 16 properties, including a portion of the Willow Grove Park Mall property, that they are looking to sell by 2023 to procure an estimated $135 million.
The ground floor section of the Market Street building has not been used for quite some time, and with the retail environment still suffering from COVID, it likely would not have been auspicious for PREIT to try and set up any of their retailers in the location.
With the money PREIT makes from this sale and the others they have planned, they will only be keeping 30% as profit, with the remainder being stipulated as reimbursement to their creditors.
Learn more about PREIT’s plans by reading The Philadelphia Inquirer’s article by clicking here.
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