Consumers will soon be about to shop for housing at Moorestown Mall — literally, housing at the mall.
The mall’s owner, Pennsylvania REIT, announced that it received approval to add up to 1,065 multifamily units and a hotel at Moorestown Mall in New Jersey. It envisions mall residents and hotel visitors shopping there, too.
“The synergistic addition of apartments and hotels will benefit our existing tenants and communities by increasing visits to the property and delivering a new customer,” Joseph F. Coradino, CEO of PREIT, said in a statement.
The move is part of the company’s diversification plan. It aims to add between 5,000 and 7,000 apartment units, along with several hotels, to its mall sites across the country. It has already added nearly 3,500 apartment units.
At Moorestown Mall, the first phase of the project is expected to result in 375 residential units and a hotel. PREIT anticipates it will close on the sale of the initial parcel this year for $8 million.
PREIT filed for bankruptcy protection last fall. The company, which owns and operates over 22.5 million square feet of retail, was hit hard by the pandemic.
In the second quarter PREIT revenue decreased by $20.1 million, largely because of bankruptcies and store closures.