PREIT to Relinquish Primary Control of Fashion District Under Bankruptcy Deal As part of the new agreements, a $100 million payment was made and funded by Macerich on a $301 million loan backed by Fashion District Philadelphia
Published December 18, 2020 •
Updated on December 18, 2020 at 8:59 am
NBC10
Pennsylvania Real Estate Investment Trust will relinquish much of its involvement in Fashion District Philadelphia beginning Jan. 1, leaving its partner in the project, Macerich Cos., to control the operations and make decisions involving the Philadelphia retail center, according to Securities and Exchange Commission documents filed by PREIT.
The arrangement arose as part of PREIT amending its loans and credit agreements through a Chapter 11 bankruptcy from which it exited last week and detailed in SEC documents, the Philadelphia Business Journal reports.
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The bankruptcy filings last month by mall developers CBL Properties and Pennsylvania Real Estate Investment Trust shocked very few observers, considering their struggles even before the pandemic curtailed indoor shopping. They were widely seen as among the most vulnerable mall landlords, without the financial wherewithal, or the property quality, of the likes of Simon Property Group and Brookfield.
Those last two are widely seen as survivors. Both have the deep pockets to go so far as to buy some of their retail tenants out of bankruptcy in order to keep that rent flowing (in a couple of cases Forever 21 and, just this week, J.C. Penney they have teamed up with each other).