Springfield Town Center in D.C. metro approved for hotel and apartments

PREIT’s plan to add residential components to its centers in high-density areas has moved one more step forward.

The mall owner-operator has received unanimous approval from the Fairfax County Board of Supervisors for the development of 460 apartments and a 165-room hotel at Springfield Town Center in the Washington, D.C. metro.

PREIT has already secured purchase agreements for the lots on which the hotel and apartments will be built. The deal, according to the company, promises to add nearly $20 million to the $112 million in proceeds from asset sales at other mall properties, such as the Moorestown Mall in the Philadelphia metro. Another $120 million of pending asset sales are in PREIT’s mall-transformation pipeline.

PREIT’s second quarter results this year included an occupancy rate rise to 95%, but a 5.7% increase in portfolio-wide net operating income.

"We are thrilled to receive a green light on the multi-use development that was conceived prior to Springfield Town Center’s redevelopment in 2014," said PREIT CEO Joseph Coradino. "The addition of apartments and hotel rooms will result in growing our customer base and delivers value to our existing tenants while allowing us to harvest capital."

Springfield Town Center is located in Virginia’s Fairfax County, the fifth wealthiest in the United States, according to the 2020 United States Census. Four of the top seven counties on that list lie in the Old Dominion state, with Loudoun No. 1, Falls Church No. 2, and Arlington No. 7.

PREIT’s plan is to transform Springfield Town Center into a multi-use hub that it hopes to become a pre-eminent family entertainment destination. One key component of the new tenant curation is currently under construction and is set to open next summer: a 32,000-sq.-ft. Legoland Discovery Center being co-created by Lego and England-based Merlin Entertainments, whose other attractions include Sea Life and The Dungeons.