The deal also marks the beginning of owner Pennsylvania Real Estate Investment Trust's effort to redevelop the aging property, which it acquired from the Columbia, MD-based Rouse last year as part of a six-mall package in South Jersey and southeastern Pennsylvania. PREIT paid nearly $550 million for the six properties, all older malls in need of an upgrade.

"When PREIT purchased Echelon Mall, they asked if we were interested," says Mia Masten, director of community affairs for Wal-Mart. "We are always interested in opportunities where we can re-use or recycle underperforming retail properties that will accommodate our store layouts.

"Last year we worked with PREIT to occupy a former Bradlees store at Northeast Tower Center in Philadelphia," she continues. "We would like to replicate that success on another in-fill, re-use opportunity here."

When it was acquired, the property had two vacant anchors, Sears in addition to the former JCPenney location, and both tenant-owned sites were subsequently acquired by PREIT. Besides the addition of Wal-Mart, PREIT's overall plan for redeveloping the property includes remerchandising the former Sears store and creating a new court and entrance on the mall's eastern end, facing the Wal-Mart store.

"We view Echelon Mall's location as a superior one," says Joe Coradino, president of the Philadelphia-based PREIT Services LLC. "Bringing Wal-Mart to the center fits our strategy of re-positioning the property from an enclosed regional mall with a fashion focus, to one that meets customer demand for a shopping price spectrum ranging from value to fashion."

PREIT will spend upwards of $15 million to complete Echelon Mall's makeover, according to Coradino. That's not counting the cost of building the Wal-Mart store, which will be paid by the retailer. The price tag for the store, slated for a spring of 2006 opening, has not been disclosed. PREIT also expects to earn a return of 10 to 12% on its incremental investment in the property, according to Coradino.