Washington Prime Group Announces Latest Redevelopment Project with Final Phase of Expansion at Scottsdale Quarter®
22 February 2017 - 8:50AM
Business Wire
Washington Prime Group Inc. (NYSE: WPG) today announced its most
recent redevelopment effort, the next part of a significant
expansion at Scottsdale Quarter located in Scottsdale, AZ. The
first part of the expansion has been completed, comprising of the
buildings on the north and south parcels with tenancy including
American Girl and Design Within Reach, as well as luxury apartment
homes and office space. The final component of the expansion will
be comprised of approximately 300 new luxury apartment homes and
35,000 square feet of new street-level retail.
The new residential component will be led by Lennar Multi-Family
Communities (“LMC”). In addition to the luxury apartment homes and
street-level retail, the project will include a 10,000-square-foot
indoor amenity complex and an outdoor, urban courtyard with pool
and spa, roof-top terraces overlooking Scottsdale Quarter and the
McDowell Mountains, and new onsite parking areas. LMC’s residents
will have direct pedestrian access from the amenity complex deck to
Scottsdale Quarter’s park-like public gathering space, The Quad,
which features the largest pop-jet fountain in the region.
Lou Conforti, CEO and Director: “We are pleased to commence
construction on the final expansion at Scottsdale Quarter. Teaming
up with Lennar, a proven residential expert, allows us to focus
upon what we do best: deliver differentiated retail to our guests.
The critical mass of new multifamily and office space also provides
a captive audience for our existing and prospective retail tenants.
Lastly, having O'Connor as a partner in Scottsdale Quarter, as well
as our other assets in the joint venture, provides us with a
stalwart sounding board as we evaluate future redevelopment
opportunities.”
Scottsdale Quarter is an opportunity for LMC to establish a
strong presence in the last phase of one of Scottsdale’s most
popular lifestyle shopping centers. The third phase of the
expansion adds density to the center with a mix of office and
residential components, but the cornerstone remains retail.
Richard Hunt, General Manager of Scottsdale Quarter: “We are
excited to announce plans for the final expansion at Scottsdale
Quarter. Our commitment to our guests and the City of Scottsdale
continues to grow with each addition, bringing national retail and
restaurants alongside celebrated local boutiques and eateries. We
will expand upon our already diverse merchandise mix, solidifying
Scottsdale Quarter as the premiere lifestyle destination in The
Valley.”
Construction is expected to start later this year with tenants
beginning to open in 2018. Once Washington Prime Group has signed
leases for the new street-level retail, additional details will be
announced related to estimated project costs and returns on
investment. The funding for the expansion at Scottsdale Quarter
will be shared pro rata with O’Connor Mall Partners, L.P. the
partner in the Company’s joint venture that owns the property.
O’Connor Mall Partners L.P. is an affiliate of O’Connor Capital
Partners.
About Scottsdale Quarter
Scottsdale Quarter® is an open-air center where the vibe of the
city meets the serenity of the desert. The hip, urban destination
features one-of-a-kind retail, restaurant and entertainment
options, as well as office space amid elegant, diverse architecture
and lush landscaping. Restaurants, specialty and fashion retailers
include Sephora, Restoration Hardware, Intermix, American Girl,
Vince, Joie, iPic Theaters, NIKE, Dominick’s Steakhouse, Free
People, Warby Parker, Apple Store, Eddie V’s Prime Seafood,
Flywheel and True Food Kitchen, among many others. The center
continues to add tenants that further position Scottsdale Quarter
as the premier shopping destination in the Valley. Learn more at
www.scottsdalequarter.com.
About Washington Prime Group
Washington Prime Group Inc. is a retail REIT and a recognized
leader in the ownership, management, acquisition and development of
retail properties. The Company combines a national real estate
portfolio with an investment grade balance sheet, leveraging its
expertise across the entire shopping center sector to increase cash
flow through rigorous management of assets and provide new
opportunities to retailers looking for growth throughout the U.S.
Trademark registration for the name Washington Prime Group is
pending. Learn more at www.washingtonprime.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
which represent the current expectations and beliefs of management
of Washington Prime Inc. (“WPG”) concerning the proposed
transactions, the anticipated consequences and benefits of the
transactions and the targeted close date for the transactions, and
other future events and their potential effects on WPG, including,
but not limited to, statements relating to anticipated financial
and operating results, the company’s plans, objectives,
expectations and intentions, cost savings and other statements,
including words such as “anticipate,” “believe,” “plan,”
“estimate,” “expect,” “intend,” “will,” “should,” “may,” and other
similar expressions. Such statements are based upon the current
beliefs and expectations of WPG’s management, and involve known and
unknown risks, uncertainties, and other factors which may cause the
actual results, performance, or achievements of WPG to be
materially different from future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include, without limitation: changes in
asset quality and credit risk; ability to sustain revenue and
earnings growth; changes in political, economic or market
conditions generally and the real estate and capital markets
specifically; the impact of increased competition; the availability
of capital and financing; tenant or joint venture partner(s)
bankruptcies; the failure to increase mall store occupancy and
same-mall operating income; risks associated with the acquisition,
development, expansion, leasing and management of properties;
changes in market rental rates; trends in the retail industry;
relationships with anchor tenants; risks relating to joint venture
properties; costs of common area maintenance; competitive market
forces; the level and volatility of interest rates; the rate of
revenue increases as compared to expense increases; the financial
stability of tenants within the retail industry; the restrictions
in current financing arrangements or the failure to comply with
such arrangements; the liquidity of real estate investments; the
impact of changes to tax legislation and WPG’s tax positions;
failure to qualify as a real estate investment trust; the failure
to refinance debt at favorable terms and conditions; loss of key
personnel; material changes in the dividend rates on securities or
the ability to pay dividends on common shares or other securities;
possible restrictions on the ability to operate or dispose of any
partially-owned properties; the failure to achieve earnings/funds
from operations targets or estimates; the failure to achieve
projected returns or yields on development and investment
properties (including joint ventures); expected gains on debt
extinguishment; changes in generally accepted accounting principles
or interpretations thereof; terrorist activities and international
hostilities; the unfavorable resolution of legal proceedings; the
impact of future acquisitions and divestitures; assets that may be
subject to impairment charges; significant costs related to
environmental issues; and other risks and uncertainties, including
those detailed from time to time in WPG’s statements and periodic
reports filed with the Securities and Exchange Commission,
including those described under “Risk Factors”. The forward-looking
statements in this communication are qualified by these risk
factors. Each statement speaks only as of the date of this press
release and WPG undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events or
circumstances. Actual results may differ materially from current
projections, expectations, and plans, if any. Investors, potential
investors and others should give careful consideration to these
risks and uncertainties.
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version on businesswire.com: http://www.businesswire.com/news/home/20170221006717/en/
Washington Prime Group Inc.Kimberly A. Green,
614-887-5647kim.green@washingtonprime.com
Washington Prime (NYSE:WPG)
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