Burlington is taking over where Sears left off at Florence, S.C.'s Magnolia Mall. Burlington will open in the 4th quarter of 2017, following Sears' February 2017 closure.
The mall's landlord, PREIT, is also in advanced discussions with two additional retailers for spaces that will be created adjacent to Burlington, diversifying the tenant roster and strengthening the asset's market dominance.
As the first Burlington location in the region, the national off-price retailer will bring high-quality, name-brand apparel at everyday value to the Florence market. Florence is a popular stop over for travelers between the Northeast Corridor and Florida, a result of its prime location adjacent to I-95 and I-20 highways.
With nearly a dozen hotels and 1,000 rooms adjacent to the mall coupled with the strong economy driven by large South Carolina employers, Magnolia Mall is the retail hub evidenced by sales improvement to $422 per square foot as of December 31, 2016 from $388 a year prior. Its position is strengthened by the presence of an existing diverse anchor mix that includes Belk, JC Penney, DICK's Sporting Goods and Best Buy.
Earlier this year, mall landlord PREIT announced it had reached agreement with Sears to recapture Capital City, Woodland and Magnolia Malls. The company has now executed leases for all three of these locations as part of a continued portfolio improvement effort. TPREIT has previously said it would replace the other Sears stores with Von Maur at Woodland Mall and DICK's Sporting Goods at Capital City Mall.
PREIT anticipates sales and traffic generated from these additions will substantially outpace what is currently being delivered. For the three stores PREIT previously announced recapturing from Sears, the Company expects to generate returns of 7 – 9 percent and will share details of projected capital spending in conjunction with its upcoming earnings release.
"We are pleased to announce the replacements for all three Sears stores we recaptured. The addition of Burlington at Magnolia Mall will not only diversify offerings for the local residents and travelers, but fortify our strategy to continue improving the quality of our portfolio through ambitious remerchandising and redevelopment initiatives that will serve to further attract in-demand retailers," said Joseph F. Coradino, CEO of PREIT. "With consumer demand for off-price retail continuing to grow, Burlington will complement Magnolia Mall's merchandise mix, creating value and driving traffic, sales and NOI at the property."