What to Know
- The Montgomery Mall in North Wales, Pennsylvania, has a new owner.
- Kohan Retail Investment Group of Great Neck, New York, has purchased the mall in a foreclosure sale for $55 million, reports the Philadelphia Business Journal.
- The sale brings to a close a saga overshadowing the regional mall.
Kohan Retail Investment Group of Great Neck, New York, has purchased Montgomery Mall in a foreclosure sale for $55 million, reports the Philadelphia Business Journal.
The sale price is 95% of the property’s appraised value as of August of $57.5 million. In 2014, the mall had been appraised at $195 million, or $176 a square foot.
A Montgomery County Court of Common Pleas judge signed an order approving the sale to Montgomery Mall Realty Holdings, which is the entity Kohan used to to purchase the 1.1-million-square-foot property located in North Wales, reports PBJ.com.
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The property fits into Kohan's retail focus. In addition to two hotels in New York City, Kohan owns a portfolio of 50 similar second-tier malls across the country including several in Pennsylvania such as Wyoming Valley Mall, Washington Crown Center and Lycoming Mall.
The sale brings to a close a saga overshadowing the regional mall that began in August 2020 when a $100 million loan backed by the property was nearing default. By last November, an entity affiliated with Simon Property Group, which owned the mall, notified the special servicer overseeing that loan that it was "unwilling to inject additional funds into [the] loan, but is willing to manage [the] property,” according to a monthly report that tracks CMBS loans.
PBJ.com breaks down the struggles the mall has faced before and during the COVID-19 pandemic.
Keep up with all your business news at the Philadelphia Business Journal.