Moorestown Mall Leaseback Plan Abandoned Amid Pandemic

MOORESTOWN, NJ — The owners of a string of South Jersey malls have abandoned a planned sale and leaseback of the Moorestown Mall as a result of the coronavirus pandemic. In February, the Pennsylvania Real Estate Investment Trust (PREIT) announced the sale and leaseback plan to help offset a $38.2 million loss from 2019.

However, in a filing with the U.S. Securities and Exchange Commission dated Sept. 1, PREIT said it was abandoning the plan as of Aug. 26. The due diligence, which was part of the conditions set forth by the sale, was delayed due to the onset of the pandemic, and will not take place before 2021, according to the filing.

“As a result of PREIT’s election not to extend the due diligence period under the agreement, effective as of August 26, 2020, the agreement has been terminated,” the company said in the filing.

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PREIT initially announced the plans in February. The plan called for PREIT to get 99-year leases for the Moorestown Mall and four other malls. It included an option to buy back the land the malls sat on. The other malls were in Pennsylvania, Maryland, Florida, North Carolina and South Carolina, but the termination of the agreement applies to all the malls.

PREIT also owns malls in Cherry Hill and Cumberland, and has part ownership in the Gloucester Premium Outlets, but none of those were involved in the plan.

The Moorestown Mall suffered retail hits, such as the loss of Macy's, Sears and Lord & Taylor. Read more here: South Jersey Mall Owner Lost $38.2M In 2019

Retail has given way to dining, as it brought in restaurants such as Joe Italiano's Maplewood, Hash House A Go Go and The Yard House. There were also discussions about the possibility of adding a housing element to the town to help with Moorestown’s affordable housing obligation.

The pandemic and resulting shutdown have halted a lot of plans across the country. The Moorestown Mall and other non-essential businesses shut down in March, although restaurants were able to remain open for pickup and delivery.

The mall reopened June 29, but restaurants were permitted to reopen outside over the summer. Restaurants were allowed to reopen inside and the movie theater reopened on Friday.

PREIT reported a $29.2 million loss for this year as a result of being closed during the pandemic. Read more here: South Jersey Mall Owner PREIT Reports $29.2M Loss Amid Pandemic

See related: NJ Coronavirus, Reopen Updates: Here's What You Need To Know