OAK BROOK, Ill — Retail Properties of America, Inc., in response to current macroeconomic conditions, has halted plans for vertical construction at its Carillon redevelopment project located in the Washington, D.C. metropolitan statistical area.
Relatedly, the Company is evaluating a material reduction in scope and spend for the project.
“Our sound capital allocation discipline enables us to take this step in order to prudently de-risk our overall operating plan, focusing on preservation of our already outstanding balance sheet prior to commencement of any vertical construction at Carillon,” stated Steve Grimes, chief executive officer. “While we currently expect to finish sitework preparation this year, we remain aware of the significant demand for the project, which benefits from the medical office needs of the adjacent University of Maryland Capital Region Medical Center, a non-cyclical, shadow anchor of this project. We continue to believe that this project can drive compelling risk adjusted returns when conditions support commencement in the future.”
The Company will continue to evaluate the potential resumption date for vertical construction activities at Carillon and will maintain optionality for either the monetization or build-out of components of the project.
The Company also recently bolstered its financial flexibility by drawing $100 million on its existing $850 million unsecured revolving line of credit.