The company that created the popular videogame “Fortnite” has agreed to buy the North Carolina Mall and plans to redevelop it as a global headquarters, the latest sign that struggling malls will develop into new types of real estate Are happening
Epic Games Inc., a closely held company in Cary, NC, said it plans to convert the 980,000-square-foot Cary Towne Center Mall into offices and create entertainment space for its development over the long term. Epic plans to open the new campus by 2024, which will represent a major upgrade from the company’s 250,000-square-foot headquarters.
Acquisition and office-expansion plans suggest that even as many companies aim to reduce office space and adopt work-at-home policies, others are still a new and larger as a major part of the future Office location.
Epic said it was still too early to give details about the new headquarters. While the firm said it had no plans to make room for the videogame tournament at the new headquarters, it said it was considering including a place for use by the local community.
The company is growing rapidly, hiring more people and wants to stay in Carrie, said Elka Luks, communications director at Apri Games. “Most of our work is highly collaborative and we want to give employees the ability to use an office when it is safe to do so,” he said.
Epic’s acquisition plan also shows how many underperforming malls have become attractive acquisition targets for investors, aiming to convert them into other uses, from office space to residential units or warehouses.
In West Los Angeles, California., The Westside Pavilion, a 600,000-square-foot mall, is undergoing a facelift in an office complex that will be occupied by Google. This week New York-based Urban Edge Properties said it has purchased Sunrise Mall in Massapequa, NY, and plans to redevelop it for industrial purposes.
Epic agreed to pay $ 95 million for the North Carolina property, which was built in 1974. The Carrie Towne Center once housed tenants such as Dillard and Jessie Penny, who have closed their stores in recent years.
In January 2019, New York-based Turnbridge Equities and Dallas-based Denali Properties purchased Cary Towne Center. The mall was 65% occupied at the time and developers initially planned to redevelop the space into a residential, office-mixed mixed-use complex. , Retail and hotel uses.
Epic’s “Fortnite” is a multiplayer game that has attracted millions of people around the world, and is particularly popular with high-school students. It is one of the most popular esports, and arenas that allow thousands of gaming fans to watch such video content have been a bright spot in in-person commercial real estate. Mall owners, stadium operators and hotel owners have prepared young gamers for live events, which in turn helps to keep their properties relevant.
Write Esther Fung at [email protected]
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Print edition as ‘Adventure Plan for Mall’ to ‘Mall for It’s New Headquarters’, exhibited on January 6, 2021.