Springfield Town Center owner moves toward mall parking lot development (Franconia: sales, real estate)

[Joke Insurance]

Source: http://www.bizjournals.com/washingto...ward-mall.html

The owner of the Springfield Town Center is no longer taking a wait-and-see approach to the long-anticipated redevelopment of the mall property's expansive parking lots.

Pennsylvania Real Estate Investment Trust (NYSE: PEI) has said, since it acquired the 78-acre Springfield property nearly two years ago, that it would not move to develop surface lots until the mall itself is financially stabilized. And it appears to be nearly there, as the revamped former Springfield Mall is 91 percent occupied and sales stand at $530 per square foot, exceeding estimates by $5 per square foot, according to PREIT's latest report to its investors.

Heather Crowell, spokeswoman for Pennsylania Real Estate Investment Trust, tells me the town center owner is not actively soliciting development partners yet for what it calls a "future smart growth opportunity." But it doesn't have to solicit. The interest is there, and Philadelphia-based PREIT is listening.

In an investor update posted on its website, PREIT writes that it is "receiving inquiries into developing surrounding land" at Springfield.

"We are considering and sometimes responding to the inquiries," Crowell said in an email.

PREIT goes on to describe the opportunity as an "untapped value proposition." Crowell said there is no timeline, that "these things take time."

The company acquired Springfield Town Center, including the 1.35 million-square-foot mall and surrounding lots, from Vornado Realty Trust (NYSE: VNO) in April 2015 for $465 million in cash and stock. The mall had reopened six months earlier as Springfield Town Center after a $250 million gut renovation.

The hefty price tag reflected not only the value of the renovated mall, but also the prospect of future development. The property is entitled for roughly 3 million square feet of additional mixed-use construction.

For the first time, PREIT's Feb. 28 investor update includes not only a rendering of what the site could look like built out, but also a description of individual, future buildings. With that information out publicly, it suggests the owner is advancing on the redevelopment prospect.

While the plans will clearly change depending on PREIT's development partners, the general outline calls for more than a dozen new buildings, ranging from multifamily and hotel to office and commercial, retail, restaurants and multiple parking decks.

The largest of the new buildings, including three that combined could include more than 1,400 multifamily units, or a combination of multifamily and hotel, front Spring Mall Drive between Frontier Drive and Loisdale Road — providing future residents and visitors the shortest walk to the Franconia-Springfield Metro station.

Two new office buildings, totaling more than 800,000 square feet, are slated for two intersections — Loisdale and Spring Mall Road and Loisdale and Franconia Road. A third office building, or potentially a hotel, fronts Loisdale, as does a 180-unit multifamily building.

A standalone 72,000-square-foot commercial-retail building is proposed for the corner of Frontier Drive and Franconia Road, while new retail is scattered throughout. The plan also calls for more than 9,000 structure parking spaces across the redeveloped property.

[boyd888]

Yes this will certainly help alleviate the traffic issues in this area. I hope those things with cars on top are multi level parking garages because parking is already a nightmare there too.

Can't believe they wanna turn Coco Rico into a swimming pool (or maybe that's behind it)

[NeganGrimes]

isn't that where the Men's Wearhouse is?

[johnsonkk]

When they decide to build more parking garages, parking in the interim will be a nightmare. Needs to be done but rough getting there.

[airjay75]

If you use the Macy's garage, there is almost always plenty of parking on the upper levels. I've never had to search for a parking space there.

[Joke Insurance]

If and once all of that area gets built-out, do any of you think the neighborhoods of Springfield Estates and Monticello Woods would see any effects of gentrification?

[want to learn]

Yes, the Springfield area really needs more office buildings in an era with record high vacancy rates in current office complexes and a planned significant reduction in government spending.