The company that created the popular video game “Fortnite” has agreed to purchase a mall in North Carolina and plans to redevelop it into a global headquarters, the latest sign that troubled shopping malls are evolving into new types of real estate.
Epic Games Inc., the tight-knit company based in Cary, NC, said it plans to convert the 980,000-square-foot Cary Towne Center mall into offices and recreational space for long-term growth. Epic plans to open the new campus by 2024, which would represent a major upgrade to the company’s 250,000-square-foot headquarters.
The acquisition and office expansion plans show that even so many companies strive to reduce office space and embrace a work-from-home policy, others still see a new and larger office location as a big part of the future.
Epic said it is too early to provide details about the new headquarters. While the company said it has no plans to build a video game tournament space at its new headquarters, it said it would consider taking up space for use by the local community.
The company is growing fast, is hiring more people and wants to stay in Cary, said Elka Looks, communications director at Epic Games. “Much of our work is highly collaborative, and we want to give employees the ability to use an office when it is safe,” she said.
Epic’s acquisition plan also shows how many underperforming shopping centers have become attractive acquisition targets for investors looking to convert them to other uses, from office space to residential units or warehouses.
In West Los Angeles, California, a 600,000-square-foot shopping center, the Westside Pavilion, is undergoing a makeover into an office campus that will be occupied by Google. New York-based Urban Edge Properties said this week that 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 real estate, which was built in 1974. Cary Towne Center once had tenants such as Dillard’s and JC Penney, who have closed their stores in recent years.
New York-based Turnbridge Equities and Dallas-based Denali Properties acquired Cary Towne Center in January 2019. The mall was 65% occupied at the time and developers initially planned to redevelop the space into a mixed-use complex with residential, office, retail and hotel use.
Epic’s “Fortnite” is a multiplayer game that has attracted hundreds of millions of people around the world, and it is especially popular with high school students. It is one of the most popular esports and arenas where thousands of game fans can watch this type of video content in person was a bright spot in commercial real estate. Shopping center owners, stadium operators and hoteliers have attracted young gamers to live events, which in turn helps keep their properties relevant.
Write to Esther Fung at [email protected]
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Appeared in the January 6, 2021 print edition as ‘Fortnite’ Creator plans to purchase mall for its new headquarters. ‘