PREIT sells Washington Crown Center to Kohan
PREIT announced it had completed the sale of the Washington Crown Center in Washington, Pennsylvania, to the Kohan Retail Investment Group for $20 million. The 674,000-sq.-ft. mall — 25 miles south of Pittsburgh on I-70 — is anchored by Bon-Ton, Macy's, Gander Mountain, and Sears.
The Great Neck, New York-based Kohan specializes in purchasing outdated malls and reinvigorating them. Its properties include the Central Mall in Salina, Kansas, The Orchard Mall in Benton Harbor, Michigan, The Mayberry Mall in Mt. Airy, North Carolina, and the Graceville Outlet Mall in Florida.
Philadelphia-based PREIT is in the midst of a portfolio optimization program focusing on growth-oriented properties. Washington Crown Center is the 14th “lower-productivity” mall it has divested in the initiative. The mall was generating an average $313 of sales per square foot as compared to an average of $460 across the rest of the PREIT portfolio.
“This commitment has been evident in our disposition program as well as our re-merchandising and redevelopment successes and has resulted in improved operating results including strong renewal spreads, margin improvement, and same-store NOI growth,” said CEO Joseph Coradino in a statement.
PREIT continues to shop the Beaver Valley Mall in Monaco, Pennsylvania, another center designated as low-productivity.
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