PREIT completes acquisition of Springfield Town Center
Philadelphia-based Pennsylvania Real Estate Investment Trust (PREIT) has completed its acquisition of Springfield Town Center in Springfield in a deal worth $485 million.
PREIT bought the recently redeveloped, 1.35 million-square-foot shopping center from Vornado Realty Trust for $340 million in cash and debt repayments and 6.25 million units of the company’s operating partnership, valued on the closing date at $145 million.
The company said the cash portion of the purchase was funded from borrowings under its term loans and revolving credit facility. The deal also includes the purchase of rights to develop more than 3 million square feet of additional space.
The shopping center has recently undergone a $250 million renovation.
Since October, new leases involving more than 60,000 square feet of space have been executed at the shopping center, PREIT said.
Nearly 64,000 square feet of tenant space is expected to open for business during the second quarter of 2015 including the opening of a Nordstrom Rack store.
Founded in 1960, PREIT owns and operates more than 30 million square feet of space in properties in 12 states in the eastern half of the United States.