Simon Property Group (NYSE:SPG) is focusing its near-term future on developing multifamily housing and hotels.
Indianapolis-headquartered REIT announced during its Q1 earnings call this week that is plans to develop and construct approximately 2,000 residential units and hotel rooms. Chairman, President and CEO David Simon declared this was “probably a five-year build process” that is expected to begin later this year.
“I think we will do selective JVs on certain of the residential development,” Simon said, adding that “we could potentially bring in third-party equity, too.”
Simon also stated “a lot of these are part of redevelopments” while citing as an example the Phipps Plaza mall in Atlanta that the company redeveloped to include a Nobu hotel and restaurant and a Life Time fitness center at the site. However, Simon was vague on specific details about the company’s plans, including whether he would focus on mall redevelopments or consider new standalone projects.
“We’re still permitting some things in California and the Northwest,” said, adding projects could also range “from Austin, Texas to Orange County, California to Seattle, some hotels in Florida, some residential in Florida, multifamily. So, it’s kind of where you’d expect it to be where supply and demand is in our favor. But we’re considering building a hotel in Cape Cod, because we think there’s a good supply-demand imbalance there.”