WEST WHITELAND >> Major changes are in the works at the Exton Square Mall property.
Pennsylvania Real Estate Investment Trust, or PREIT, plans to demolish the Kmart that faces Route 100 and replace it with an organic supermarket. It also plans to put a an entertainment center in the former J.C. Penney store that served as one of Exton Square’s anchor tenants for many years before closing.
Joseph F. Coradino, chief executive officer of PREIT, outlined the plans as part of his conference call with analysts Wednesday to review the mall developer’s second quarter results.
He said a press release will be issued in the next few days identifying the grocery store.
In a statement of company highlights for the quarter, PREIT said it “executed (a) lease with large format organic grocer to replace an existing Kmart at Exton Square Mall.”
Coradino, responding to questions from analysts, explained that the Kmart would be taken down and that the “natural and organic” grocery store of 55,000 square feet would be constructed in its place.
“We’ll be demolishing the Kmart and reconfiguring that site,” the CEO said. “That will allow for this organic grocer to be built either on a standalone basis or as part of a development with a number of additional stores.
“It will ultimately conclude in a connection into the mall,” Coradino said.
He said the store would act as “a catalyst to attract other high quality tenants to this property, consistent with the excellent demographic profile of the trade area.”
“This is a great start as we contemplate a redevelopment that will include re-merchandising of the existing malls,” Coradino said.
The CEO also indicated a tenant is close for the former J.C. Penney space.
“We have prospects in terms of a dine-in movie theater that we’re working with and a bowling and entertainment concept to take that, so that’s done irrespective of the work as it relates to the organic grocer,” Coradino told the analysts.
The Exton Penney’s was one of 33 stores closed around the country last year.
Also as part of its quarterly results, Philadelphia-based PREIT said it will soon close on its sale of Uniontown Mall in southwestern Pennsylvania for $23 million.
It also reported it completed the sale of its entire 50 percent interest in open air center, Springfield Park in Springfield, Pennsylvania, for $20.2 million. In addition, PREIT said it has agreements to sell three malls – two in Alabama and one in Virginia, for $95.4 million.
“So clearly it’s a transforming company,” Coradino said. “We are positioned to report quality earnings results reflective of the improved portfolio.
To contact staff writer Brian McCullough, call 610-235-2655 or send an email to bmccullough@21st-centurymedia.com
