COLUMBUS, OH – Jan. 25, 2017 – Washington Prime Group Inc. (NYSE: WPG) today announced its most recent redevelopment project, a renovation at Pearlridge Center located in Aiea, Hawaii. Pearlridge Center is comprised of two distinct enclosed venues commonly referred to as Uptown and Downtown.
The $33M project includes a significant remodel of Pearlridge Downtown consisting of new tenants, a contemporary dining space, new interior and exterior finishes and updated entranceways. Also part of the renovation project are specialty grocery store Down to Earth, which will move to an expanded freestanding space; a Bank of Hawaii financial services center; fast casual pizzeria Pieology; fast casual restaurant Five Guys Burgers and Fries; and innovative menswear retailer Lindbergh.
Further evidencing the appeal of Pearlridge Center, Hawaii Pacific Health recently commenced construction of a 24,000 SF state-of-the-art cancer treatment center in Pearlridge Downtown. In addition, recent tenant openings include Agu Ramen, Anthem, Jamba Juice and Pho Factory.
Lou Conforti, CEO and Director: “As previously discussed, our objective is to provide differentiated products and services to our guests. Our most recent efforts at Pearlridge Center illustrate this mandate. We continue to identify value enhancing redevelopment opportunities in conjunction with our strategy to invest $150M to $200M annually in assets which we deem as our Core Portfolio. Based upon our strong track record of redevelopment in such assets as Polaris Fashion Place, located in Columbus, OH; Jefferson Valley Mall, located in Yorktown Heights, NY; and Scottsdale Quarter, located in Scottsdale, AZ, we have produced accretive results with initial returns in the range of 7% to 11%, averaging approximately 9%. In fact, we currently have more than 35 active or approved redevelopment projects across our Core Portfolio.”
The funding for the renovation at Pearlridge Center will be shared pro rata with O’Connor Mall Partners, L.P., the partner in the Company’s joint venture that owns the property, resulting in the Company’s share of the investment of approximately $17M for this phase of the redevelopment project. O’Connor Mall Partners, L.P., is an affiliate of O’Connor Capital Partners.
“This investment reflects our commitment to the Aiea community, which continues to support Pearlridge Center,” said Fred Paine, general manager of Pearlridge Center. “The renovation project will provide our guests with an increasingly dynamic environment in which to shop, dine and spend time together.”
Updated exterior facades and entrances will enhance curb appeal, while interior finishes in Pearlridge Downtown’s dining area will be updated and expanded to create an aesthetically pleasing environment. Architectural design details will reflect the unique culture of Oahu and the local community. Renovation of all restrooms throughout Pearlridge Center has also been completed including the addition of family restrooms and a new nursing room.
The renovation is expected to be completed in phases during the second quarter of 2017 and throughout 2018. During construction, Pearlridge Center will remain open with minimal interference for customers.