The company that created the popular video game “Fortnite” has agreed to buy a mall in North Carolina and plans to redevelop it as a global headquarters, the latest sign that malls with difficulties are evolving into new types of real estate.
Epic Games Inc., a Cary, NC-based company, said it plans to turn the 980,000-square-foot Cary Towne Center mall into offices and recreation spaces for its long-term growth. Epic plans to open the new campus by 2024, which would be a significant upgrade from the company’s 250,000-square-foot headquarters.
Office acquisition and expansion plans show that while many companies aim to reduce office space and adopt home policies, others still consider a new and larger office location to be a big part of the future.
Epic said it was still too early to provide details about the new headquarters. While the company said it did not intend to build a space for video game tournaments at the new headquarters, it said it was considering including space for use by the local community.
The company is growing rapidly, employing more people and wants to stay in Cary, said Elka Looks, communications director at Epic Games. “A lot of our work is very collaborative and we want to give employees the opportunity to use an office when it’s safe to do so,” she said.
Epic’s acquisition plan also shows how many underperforming malls have become attractive purchasing targets for investors who want to turn them into other uses, from office space to residential units or warehouses.
In West Los Angeles, California, a 600,000-square-foot mall, Westside Pavilion, is being transformed into an office campus that will be occupied by Google. New York-based Urban Edge Properties said this week that it has acquired 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 Cary Towne Center once had tenants like Dillard’s and JC Penney, who closed their stores in recent years.
New York-based Turnbridge Equities and Dallas-based Denali Properties bought Cary Towne Center in January 2019. The mall was 65 percent occupied at the time, and the developers had originally planned to redevelop the space. in a mixed complex with residential offices, retail uses and hotels.
Epic’s “Fortnite” is a multiplayer game that has attracted hundreds of millions of people around the world and is especially popular with high school students. It is one of the most popular e-sports, and the arenas that allow thousands of game fans to watch this type of video content in person have been a highlight in commercial real estate. Mall owners, stadium operators and hoteliers have attracted young players to live events, which in turn helps maintain relevant properties.
Write to Esther Fung to [email protected]
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It appeared in the print edition of January 6, 2021 that “Fortnite” Creator intends to buy the mall for its new headquarters. ”