Cumberland Mall at 3849 South Delsea Drive in Vineland — Courtesy: PREIT
By Joshua Burd
PREIT has sold Vineland’s Cumberland Mall and several outparcels for $45 million, shedding another piece of its South Jersey portfolio to help reduce a reported $1.8 billion in debt.
The real estate investment trust, based in Philadelphia, did not disclose the buyer for 943,900-square-foot complex at 3849 South Delsea Drive. It will use the proceeds to repay the $39 million mortgage balance and to pay down its credit facility, the company said, adding that it has completed $110 million in asset sales this year and has another $127 million under contract or negotiation to close in the coming months.
The deal comes as the embattled REIT looks the reposition another area property, the Moorestown Mall, by adding more than 1,000 apartments and a hotel. It has already sold several outparcels at the Route 38 site, as it reconfigures its business after filing for Chapter 11 bankruptcy protection in 2020.
The company, which said it has paid down debt by $148 million through October 31, said it also has a robust pipeline of additional asset sales in various stages.
“We are pleased to make significant progress in executing on our plan to improve our balance sheet by raising capital through asset sales and driving value through our leasing and redevelopment efforts,” said Joseph F. Coradino, chairman and CEO of PREIT.
A report by The Philadelphia Inquirer noted that the company also owns the Cherry Hill Mall, which is considered a crown jewel in its portfolio. Regulatory filings say it has $252.3 million in debt on the property that was due in September, the report said, noting that Coradino declined to comment on the mortgages.
According to the Inquirer, Corradino said, “it’s a work in progress. No question, it’s a great mall and the focus of our attention. Stay tuned.”