Monday, December 15, 2014

Fashion outlets to the Gallery?



It appears the partnership that is redeveloping the Gallery in Center City plans to recreate the space as the "Fashion Outlets of Philadelphia at Market East."


At least that was the buzz at the International Council of Shopping Centers conference held last week in New York.

Pennsylvania Real Estate Investment Trust and its development partner, Macerich, are at the beginning stages of preparing the Gallery for a massive overhaul. Macerich operates properties under the "Fashion Outlets" moniker in Chicago and Niagara Falls, N.Y. Outlet stores from high-end retailers including Bloomingdales, Barney's, Banana Republic, Guess, J. Crew and others have stores in those centers.

PREIT of Philadelphia and Macerich of Santa Monica, Calif., announced over the summer that Macerich bought a 50 percent stake in the Gallery, which totals 1.4 million square feet, for $106.8 million. Macerich and PREIT will split the costs of redeveloping the property. PREIT is seeking to arrange a public financing package this month for the Gallery project and ratify it sometime early next year.

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