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PHILADELPHIA — Pennsylvania Real Estate Investment Trust (PREIT) (NYSE: PEI) and The Macerich Co. (NYSE: MAC) have reached a tentative agreement with the city of Philadelphia on a redevelopment and rebranding of The Gallery shopping mall and transit center in Philadelphia’s Center City district. If approved by Philadelphia City Council, the Philadelphia School Reform Commission and the Philadelphia Redevelopment Authority, The Gallery will be rebranded as the Fashion Outlets of Philadelphia at Market East following a two-year renovation that will open the site to Market Street. “We believe that the proposed redevelopment will position The Gallery as the next great urban marketplace in the United States, capitalizing on its central location where mass transit, tourism, the residential population and employment bases converge,” says Joseph Coradino, CEO of PREIT. “The redeveloped property will become the foundation of a new, vibrant Market East District, and we are excited to lead this effort.” The project will offer a combination of outlet retail in the form of luxury and moderate brands, traditional mall retail, flagship retail, artisanal food experiences and entertainment offerings. “The exciting plans for The Gallery are a strong strategic fit for Macerich’s proven redevelopment expertise, our leadership in the growing outlet sector and …

PHILADELPHIA — Tutor Perini Building Corp., a subsidiary of Tutor Perini Corp. (NYSE: TPC), has been awarded a contract to build the first phase of the East Market redevelopment project for National Real Estate Development in Philadelphia. The initial contract, which includes demolition and abatement, is valued at approximately $5.5 million and is currently underway. The construction phase of the contract, which will follow, is valued at approximately $112 million. The mixed-use development is located in Center City Philadelphia. At full build-out, Phase I of East Market will include an 18-story, 500,000-square-foot mixed-use complex that will encompass the entire city block between Market and Ludlow, 11th and 12th streets. “We’re pleased to be building again for this owner and proud to be making our contribution to the growth and revitalization of Girard Square,” says Peter Sukalo, executive vice president of Tutor Perini Building Corp.’s Philadelphia office. East Market will feature a 16-story, 322-unit apartment building spanning 230,000-square feet, a 19,000-square-foot amenity level, and an outdoor deck above a two-story, 105,000 square-foot split retail podium. In addition, the property will include 114,000 square feet of parking. National Real Estate Advisors, JOSS Realty Partners LLC, Young Capital LLC, and SSH Real Estate …

HOFFMAN ESTATES, ILL. AND INDIANAPOLIS — Sears Holdings Corp. and Simon Property Group Inc. have created a 50/50 joint venture valued at $228 million whereby Sears will sell and lease back several of its stores in Simon-owned malls. Sears Holdings has contributed 10 properties, including properties leased to outside parties, in exchange for $114 million in cash and a 50 percent interest in the joint venture. The deal is similar to the $330 million joint venture agreement that Sears Holdings Corp. and General Growth Properties announced on April 1. Sears Holdings (NASDAQ: SHLD) will subsequently lease back and operate the existing Sears Holdings stores at those malls. The triple-net master lease agreements have a 10-year initial term and two five-year renewal options. Sears Holdings expects to pay initial base rent of $13.4 million under the master lease. “We are pleased to reach this agreement with Simon Property Group, which is an important step in Sears Holdings’ continued transformation to a membership company, without the significant asset intensity of its traditional retail business,” says Edward Lampert, chairman and CEO of Sears Holdings. “This transaction, taken together with our other initiatives to create shareholder value through our vast real estate portfolio, enhances …

CHICAGO — Ventas Inc. (NYSE: VTR), a seniors housing and healthcare REIT, has signed a definitive agreement to acquire Ardent Medical Services Inc. for $1.75 billion in cash. Ardent Medical, a subsidiary of Nashville-based Ardent Health Services, is one of the 10 largest for-profit hospital firms in the United States. The privately owned Ardent Medical will be entitled to distribute up to $75 million in excess cash to its existing shareholders as part of the transaction. Ardent Health Services is owned by private equity funds managed by Welsh, Carson, Anderson & Stowe and currently generates approximately $2 billion in annual revenues, with more than 50 percent of its revenue derived from private pay. Ventas intends to separate Ardent Health Services’ hospital operations from its owned real estate and sell the hospital operations to one or more newly formed entities owned by current management of Ardent Health Services, other equity sources, and up to 9.9 percent owned by Ventas. As part of the transaction, Ventas will own 10 high-quality hospitals and related real estate operated by Ardent under the names BSA Health System in Amarillo, Texas; Hillcrest HealthCare System in Tulsa, Okla.; and Lovelace Health System in Albuquerque, N.M. These assets …

NEW YORK — New Senior Investment Group Inc. (NYSE: SNR), a New York-based seniors housing REIT, has completed the previously announced acquisition of 17 independent living seniors housing properties from affiliates of Hawthorn Retirement Group for approximately $435 million. The acquisition was funded with cash on hand and proceeds from a first mortgage loan. “We are excited to add to our portfolio this collection of high-quality, independent living senior housing assets, which will further increase our private pay exposure,” says Susan Givens, CEO of New Senior Investment Group. The portfolio is 100 percent private pay, contains 2,082 units located across 10 states and had an average occupancy rate of 92.6 percent in February 2015. The average age for the 17 properties is roughly seven years. Holiday Retirement will operate the portfolio, and New Senior expects its newly acquired assets to generate a net operating income (NOI) yield of approximately 6.3 percent. The REIT also completed a $670 million first mortgage loan secured by 52 seniors housing properties. Walker & Dunlop arranged the Freddie Mac loan, which has a seven-year maturity and bears interest at 234 basis points over LIBOR. Proceeds from the loan were used to refinance existing floating-rate debt …