Washington Prime Group Announces HomeGoods to Join Dynamic Tenant Lineup at The Mall at Johnson City

COLUMBUS, Ohio--(BUSINESS WIRE)--Jan 29, 2020--

Washington Prime Group Inc. (NYSE: WPG) today announced redevelopment efforts at The Mall at Johnson City, located in Johnson City, Tennessee. The Company proactively executed an agreement in 2019 to gain control of the Sears site for planned redevelopment. Planning for this redevelopment effort, which includes a series of initiatives to enhance the guest experience at The Mall at Johnson City, has been thoughtfully completed with input from the City of Johnson City and existing tenants.

Planned redevelopment initiatives include the following:

HomeGoods, with its first location in the Tri-Cities, will anchor the replacement of the former Sears location (demolition is expected to commence in the first half of 2020);
Demolition of Sears Auto Center to make way for new food and beverage offerings along N. Roan Street (demolition is expected to start in the first half of 2020); and
Renovation of The Mall at Johnson City interior common areas and exterior entrances.

These aforementioned efforts are expected to be complete by fall 2021 and opened in connection with a community event celebrating The Mall at Johnson City’s 50 th Anniversary.

In addition to the redevelopment efforts, there will be significant tenant openings at The Mall at Johnson City in 2020, with Rose & Remington, Curve & Cloth, and Palmetto Moon slated to make their debut in the Tri-Cities. These coveted additions to the tenant line up further demonstrate a focus on adding relevant and in-demand concepts to The Mall at Johnson City.

Palmetto Moon unites the flair and comforts of southern living with stylish apparel, footwear, gifts, and collegiate wear. With more than 25 stores in the Southeast, and the closest location being in Knoxville, this new to market concept is excited to call Johnson City their next home;
Family owned and operated since its 2013 inception in southwest Ohio, Rose & Remington is a women’s clothing, accessory and lifestyle concept in a boutique setting;
Rose & Remington’s sister brand, Curve & Cloth, is dedicated to women with curves and focuses on empowering fashion with sizes XL-3XL, gifts, and accessories; and
All three fast-growing brands are deeply rooted in a sense of local community.

Exciting recent development activity in the vicinity of The Mall at Johnson City includes:

Renovation of the adjacent AMC Theatre with expanded food and beverage options; and
Construction of Universal at Mockingbird, a new residential component being developed by Mitch Cox with up to 265 for-rent multifamily units, located behind The Mall at Johnson City.

These efforts collectively reinforce The Mall at Johnson City’s location along North Roan Street as the premier retail corridor in the Tri-Cities. With many unique and market-exclusive retailers, The Mall at Johnson City is well positioned for long term success.

Lou Conforti, CEO and Director of Washington Prime Group, stated: “Combining open air or lifestyle tenancy with a right sized enclosed venue accomplishes our Company’s strategy of serving as the dominant town center within robust secondary catchments. As a matter of fact, 88% of our Tier One Enclosed assets are currently or are in the process of representing this hybrid format.

“The renovation underway with respect to The Mall at Johnson City best illustrates our objective of comprehensively serving a vibrant trade area comprised of the Tri-Cities. In addition, Johnson City is the home of Eastern Tennessee State University with over 14,300 students as well as major employers including Mountain States Health Alliance, Citi Commerce Solutions, Quillen VA Medical Center and American Water Heater Company.

“The bottom line is the residents of Johnson City, Bristol and Kingsport deserve relevant goods and services including fashion, home furnishings, entertainment and a wide array of dining options. By the way, Northeast Tennessee is absolutely beautiful, its residents are friendly and ETSU is the only place I know where you can major in Bluegrass and Country Music Studies.”

The Mall at Johnson City will undergo a planned renovation of the interior common areas and exterior entrances, which will see aesthetic upgrades including new seating, lighting, flooring and finishes. The new look-and-feel will encourage guests to hang out and extend their visit.

Pete Peterson, City Manager of Johnson City, stated: “The Mall at Johnson City has been the center of shopping activities in Johnson City and the surrounding area since its creation, and we are proud to have a strong partner like Washington Prime Group that can adjust to the changing landscape of retail. The City of Johnson City is committed to working with Washington Prime Group and the Mall at Johnson City Team to ensure the continued success of the town center, which we deeply value.”

The Mall at Johnson City continues to benefit from an incredibly talented local management team. Ashley Grindstaff, General Manager, is instrumental in executing the long term vision for The Mall at Johnson City. Tembra Aldridge, who was promoted to Director of Training and Development for Washington Prime Group in 2018, is also based at the town center. Together with Marketing Director Sheila Reed, the team has implemented a robust schedule of community events. The Mall at Johnson City hosts over 100 events throughout the year which drive guest traffic, encourage extended visits and strengthen the town center as the gathering place to shop, play, eat and drink in the Tri-Cities.

About Washington Prime Group

Washington Prime Group Inc. is a retail REIT and a recognized leader in the ownership, management, acquisition and development of retail properties. The Company combines a national real estate portfolio with its expertise across the entire shopping center sector to increase cash flow through rigorous management of assets and provide new opportunities to retailers looking for growth throughout the U.S. Washington Prime Group® is a registered trademark of the Company. Learn more at www.washingtonprime.com.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 which represent the current expectations and beliefs of management of Washington Prime Inc. (“WPG”) concerning the proposed transactions, the anticipated consequences and benefits of the transactions and the targeted close date for the transactions, and other future events and their potential effects on WPG, including, but not limited to, statements relating to anticipated financial and operating results, the company’s plans, objectives, expectations and intentions, cost savings and other statements, including words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” “will,” “should,” “may,” and other similar expressions. Such statements are based upon the current beliefs and expectations of WPG’s management, and involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of WPG to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, without limitation: changes in asset quality and credit risk; ability to sustain revenue and earnings growth; changes in political, economic or market conditions generally and the real estate and capital markets specifically; the impact of increased competition; the availability of capital and financing; tenant or joint venture partner(s) bankruptcies; the failure to increase mall store occupancy and same-mall operating income; risks associated with the acquisition, (re)development, expansion, leasing and management of properties; changes in market rental rates; trends in the retail industry; relationships with anchor tenants; risks relating to joint venture properties; costs of common area maintenance; competitive market forces; the level and volatility of interest rates; the rate of revenue increases as compared to expense increases; the financial stability of tenants within the retail industry; the restrictions in current financing arrangements or the failure to comply with such arrangements; the liquidity of real estate investments; the impact of changes to tax legislation and WPG’s tax positions; failure to qualify as a real estate investment trust; the failure to refinance debt at favorable terms and conditions; loss of key personnel; material changes in the dividend rates on securities or the ability to pay dividends on common shares or other securities; possible restrictions on the ability to operate or dispose of any partially-owned properties; the failure to achieve earnings/funds from operations targets or estimates; the failure to achieve projected returns or yields on (re)development and investment properties (including joint ventures); expected gains on debt extinguishment; changes in generally accepted accounting principles or interpretations thereof; terrorist activities and international hostilities; the unfavorable resolution of legal proceedings; the impact of future acquisitions and divestitures; assets that may be subject to impairment charges; significant costs related to environmental issues; and other risks and uncertainties, including those detailed from time to time in WPG’s statements and periodic reports filed with the Securities and Exchange Commission, including those described under “Risk Factors”. The forward-looking statements in this communication are qualified by these risk factors. Each statement speaks only as of the date of this press release and WPG undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances. Actual results may differ materially from current projections, expectations, and plans, if any. Investors, potential investors and others should give careful consideration to these risks and uncertainties.

View source version on businesswire.com:https://www.businesswire.com/news/home/20200129005483/en/

CONTACT: Lisa A. Indest, CAO & EVP, Finance, 614.887.5844 [email protected]

Kimberly A. Green, VP, Investor Relations & Corporate Communications, 614.887.5647 [email protected]

KEYWORD: UNITED STATES NORTH AMERICA TENNESSEE OHIO

INDUSTRY KEYWORD: OTHER CONSUMER FOOD/BEVERAGE HOME GOODS WOMEN FASHION RETAIL MEN FAMILY REIT CONSUMER OTHER CONSTRUCTION & PROPERTY DISCOUNT/VARIETY RESIDENTIAL BUILDING & REAL ESTATE DEPARTMENT STORES COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY RESTAURANT/BAR OTHER RETAIL SPECIALTY

SOURCE: Washington Prime Group Inc.

PUB: 01/29/2020 09:20 AM/DISC: 01/29/2020 09:20 AM

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