PREIT and Macerich seek to redevelop, rebrand The Gallery in Philadelphia
Philadelphia -- Pennsylvania Real Estate Investment Trust and The Macerich Company announced that they have reached a tentative agreement with the City of Philadelphia on a redevelopment and re-branding of the Gallery shopping mall and transit center in the heart of Center City.
If approved by Philadelphia City Council, the Philadelphia School Reform Commission and the Philadelphia Redevelopment Authority, the Gallery will be rebranded as the Fashion Outlets of Philadelphia at Market East. This will follow a two-year renovation that will completely reimagine the shopping, dining and entertainment experience for tourists, commuters, office workers, and residents throughout Philadelphia and the region. The project will offer a fusion of outlet retail taking the form of luxury and moderate brands, traditional mall retail, popular flagship retail, artisanal food experiences and entertainment offerings.
"We believe that the proposed redevelopment will position The Gallery as the next great urban marketplace in the United States, capitalizing on its central location where mass transit, tourism, the residential population and employment bases converge," said Joseph F. Coradino, CEO of PREIT. "The redeveloped property will become the foundation of a new, vibrant Market East District, and we are excited to lead this effort."
The redevelopment benefits significantly from the participation of project partner Macerich, a leading top mall owners, operators and developers, with extensive experience in adding value to well-situated assets in densely populated, urban environments
"The exciting plans for The Gallery are a strong strategic fit for Macerich's proven redevelopment expertise, our leadership in the growing outlet sector and our sizable geographic concentration in the New York City to Washington D.C. corridor," said Art Coppola, chairman and CEO, Macerich. "Philadelphia is one of the great cities of the world, and this is a tremendous opportunity to create a highly successful, one-of-a-kind retail, dining and entertainment experience."
Under the proposed redevelopment plan, the Gallery will undergo a top-to-bottom redesign that will reconfigure the 1.5 million-sq.-ft. mixed-use facility as a bright, new contemporary space that welcomes shoppers and reconnects to Market Street with accessible storefronts, sidewalk cafes, a new streetscape, digital signage and graphics, all complementing the existing office space.
Inside, the plan creates an open, well-lit and easily accessible three-block corridor of approximately 125 new stores, including dining and entertainment options.