The developers behind the renovation of The Gallery have scooped up three more properties in Market East, signaling continued rebirth in the neighborhood.
Moves to remake the dilapidated Gallery at Market East into a high-end outlet mall are expected to give area property values a lift.
Among the beneficiaries of that boost: the developers behind the Gallery's redevelopment effort.
As their proposal for the Fashion Outlets of Philadelphia was coming together, Pennsylvania Real Estate Investment Trust (PREIT) and Macerich Co. were quietly buying up property across the street.
The acquisition of three buildings on the 1000 block of Market Street shows the developers' bullishness on the area's resurgence, which the $325 million Gallery project aims to fuel...
PREIT and Santa Monica, Calif.-based Macerich plan to find new tenants for the properties after the redeveloped mall's occupants are selected, Coradino said.
Likely candidates are retailers that want to be in the area but are not a good match for the mall, which hopes to feature discount versions of designer-label stores and crowd-drawing restaurants.
The developers may want to use the properties to coax current Gallery tenants that are inconsistent with the Fashion Outlets concept but have long-term leases for their space, said Tom Londres, president of retail brokerage Metro Commercial Real Estate Inc.
Original source: Philadelphia Inquirer
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