PREIT (NYSE: PEI) today detailed new updates in the transformation of Valley Mall in Hagerstown, MD – one of the Company's key suburban Washington DC assets. As part of its strategic efforts to strengthen its portfolio through anchor repositioning and remerchandising, PREIT has successfully replaced three department stores, with four tenants opening in just two years.

Onelife Fitness and Tilt

Earlier this month, Onelife Fitness opened its 70,000-square foot full-service gym, the brand's fifth Maryland location. The facility offers a community-focused, amenity-driven club – including an extensive array of fitness classes, a cardio cinema and indoor and outdoor pools, further differentiating this property in the traditional mall landscape. Onelife Fitness joins Tilt Studio in the former Macy's box with unique, experiential concepts. Tilt Studio – one of just 13 locations in the country – opened in September 2018, offering 48,000 square feet of attractions including rides, bowling, black light laser tag, black light golf and arcade games.

Belk

In October, Valley Mall welcomed the region's first Belk, which occupies 123,000 square feet in the former Bon-Ton space. In July 2017, PREIT announced the proactive recapture and replacement of Bon-Ton, which closed in February 2018. Just nine months later, Valley Mall opened its doors to the new-to-region retailer, offering national brands and private-label fashion, shoes and accessories.

DICK's Sporting Goods

In the latest milestone of the property's ongoing evolution, PREIT has proactively recaptured the former Sears box and executed a lease with DICK's Sporting Goods to occupy 59,000 square feet with an anticipated opening in Spring 2020. PREIT has successfully replaced over 300,000 square feet of space in three former department stores over the past eighteen months and truly differentiated the mall's product offering expanding its appeal to a broader base of consumers.

The new anchor concepts complement PREIT's ongoing transformation of the mall. Regal Cinema will be remodeled this year to introduce luxury reclining seating in a stadium format, and PREIT recently upgraded dining amenities at the mall with the addition of BJ's Brewhouse and the recently executed Black Rock Bar & Grill, joining Primanti Bros., Mission BBQ and Red Robin. These collective efforts are resulting in a measurable increase in traffic and sales. The property's sales per square foot reached back over $400 following multiple years of anchor vacancy and are expected to grow further following these additions.

"PREIT's ability to remain ahead of the curve and create a portfolio that is attractive to new tenants and facilitate a vision that is compelling to consumers differentiates the Company and results in a successful transformation story for Valley Mall," said Joseph Coradino, CEO of PREIT. "While reports about department store struggles abound across the country, PREIT can proudly proclaim that we have successfully curated a strong mix of high-quality, thriving concepts across our portfolio and have fully leased department stores in our core portfolio."

The remerchandising and opening of these new anchor stores has more than doubled the number of jobs available thus far. Valley Mall is well-positioned in the burgeoning Hagerstown community, with a growing population, key accessibility to major highways, and 1000 hotel rooms within a half mile. Attracting shoppers from four states – Maryland, Virginia, Pennsylvania and West Virginia – it is the dominant enclosed shopping center in the region.

About PREIT

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic's top MSAs. Since 2012, the company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures. Additional information is available at www.preit.com or on Twitter or LinkedIn.