PREIT has signed a lease for a self storage project at Mall at Prince George’s in Hyattsville, Md. Poverni Sheikh Group will develop the site, which will mark the company’s 10th facility in the Mid-Atlantic region. The property will encompass 90,000 square feet at the subgrade level and will have drive-in access. The development is scheduled for completion in the first quarter of 2022.
The shopping center has an inline gross leasable area of 437,000 square feet. Located on 51 acres at 3500 E. West Highway, 7 miles northeast of downtown Washington D.C., the mall first opened its doors in 1959 and was redeveloped in 2004 and 2018. The owner invested $30 million in a capital improvement plan that remodeled common areas and renovated mall entrances. The tenant roster includes Macy’s, Target and Marshalls.
The project will be the Poverni Sheikh Group’s second self storage development in Prince George’s County, CEO Eugene Poverni said in a prepared statement. The firm’s other property is a 110,000-square-foot facility under construction at 7618 Marlboro Pike in District Heights, Md. The CubeSmart-managed location received a $10.1 million construction loan from Eagle Bank in August 2018, according to Yardi Matrix data.
The lease is part of PREIT’s strategy to diversify its revenue stream from non-retail sources. The addition of self storage assets seems to be a safe bet, seeing as the sector ended the fourth quarter of 2020 with rent prices increasing.