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Washington Prime Makes Leasing Progress a Southern Park Mall

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Remaining committed to its first-class redevelopment efforts at Southern Park Mall, Washington Prime Group Inc. adds new entertainment and fitness tenants, The Bunker, Bogey’s and Planet Fitness. The company also noted that several existing tenants are expected to extend leases at the property located in Boardman, OH, and serving the greater Youngstown MSA.

Specifically, the company inked a lease with Planet Fitness to relocate its existing gym in Boardman neighborhood and open one, spanning 28,000 square feet, at Southern Park Mall.

Washington Prime will also provide indoor golf entertainment space. For this, the company signed a lease with a local operator for 36,000 square feet of space. The facility will be called “The Bunker”. It will also offer an attached restaurant, Bogey’s, which will be operated by owners of the existing Bogey’s Restaurant, and a full-service learning and teaching academy — Ben Curtis Golf Academy.

Two of the company’s tenants at the property — Macy’s and PNC Bank — are expected to renovate their respective stores and extend the term of their leases. Moreover, JCPenney expressed its intention to maintain its key tenancy at Southern Park Mall.

Markedly, Washington Prime intends to invest nearly $30 million for the redevelopment of Southern Park Mall over the next few years. The company invested approximately $8 million to date. On the back of improvements, it aims to provide a first-class retail and entertainment hub to attract businesses, and offer job opportunities at Southern Park Mall.

Moreover, the redevelopment will allow an outdoor athletic and entertainment green space, DeBartolo Commons, spanning four acres, which can be used as a venue for outdoor sporting and other public events.

The redevelopment will also offer a local brew and entertainment venue, Steel Valley Brew Works, near The Bunker and Bogey’s.

Management noted, “While we've lost a few months when the wretched Coronavirus reared its ugly head, we’re back on track.”

Notably, such redevelopment efforts will enhance the property and offer value addition opportunities. Moreover, such revamp efforts likely enabled the company to retain its existing tenants at the site and introduce new ones even in these uncertain times. Further, the availability of entertainment and fitness options will likely drive footfall at the mall.

However, amid the lackluster retail real estate environment, shares of this Zacks Rank #3 (Hold) company have lost 79.3% over the past year compared with the industry’s decline of 18.3%.

 


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