Last month, a Montgomery County Court of Common Pleas judge approved a mortgage foreclosure for the Montgomery Mall, rendering a $118 million judgement against Mall at Montgomery LP following their August 2020 loan default.
Now, the mall is officially up for sale, and if the report from Natalie Kostelni at the Philadelphia Business Journal is accurate, the 1.1-million-square-foot facility is expected to garner only a fraction of that nine-figure judgement.
According to Kostelni’s report, the mall is expected to sell for only $50 million — 42% of the judgement filed last month. The report adds that it’s likely any prospective buyer would seek to lease up the vacancies and maintain the mall as a retail hub.
The mall is currently at 72.9% occupancy, anchored by Wegmans and Dick’s Sporting Goods. Recent difficulties at the mall include the February 2020 closure of Sears and ongoing struggles of Macy’s and JCPenney.
Peripheral restaurants Chili’s and TGI Fridays closed in April 2019 and February 2019, respectively
Built in 1977, Montgomery Mall received an $8 million renovation in 2014. At the time of the renovation, the mall appraised at approximately $195 million, or $176 per square-foot. However, an appraisal of the mall in August 2020 — the same month that the loan went into default — returned a value of only $61 million, or $55 per square-foot, according to the report.
Read more about the sale of Montgomery Mall here.
See also:
Montgomery Mall in Foreclosure After $118 Million Loan Default, Judge Directs Mall to Be Sold
Possible $100 Million Loan Default Could See Simon Property Walk Away From Montgomery Mall
Applebee’s in Montgomery Township Has Permanently Closed
Ruby Tuesday In Montgomery Township Has Abruptly, Permanently Closed
Village Tavern in Montgomery Township Has Closed
