The historic Hillcrest Shopping Center in Lansdale is in foreclosure and its owner owes more than $10 million in delinquent debt, according to foreclosure documentation filed with Montgomery County courts.
Owner HC Spectrum Partners LP and Falcone Hillcrest LLC are named as defendants in the sheriff’s sale, which involves two parcels, with the plaintiff listed as RREF IV – D MLVN PA LLC. The foreclosure sale is set for April 26, according to documents. The plaintiff is represented by Duane Morris LLP.
Both co-defendants are registered companies with the State of Delaware. Co-defendant HC Spectrum Partners filed for a Foreign Limited Partnership (foreign, as in, another state) in July 2006, and Falcone Hillcrest filed as startup company in August 2007, with its registered agent as The Corporation Trust Company in Wilmington, DE, a subsidiary of Wolters Kluwer, an international information services company.
The plaintiff filed as an LLC with Pennsylvania Department of State in September 2022, per state business records, also under Corporation Trust Company, as CT Corporation System, out of its service of process location in Harrisburg, Dauphin County, PA.
HC Spectrum Partners LP and Falcone Hillcrest LLC owe $10,706,419.97 to creditors, per court documents. HC Spectrum Partners LP is recorded as the sole owner of the shopping center on county property records. The North Wales-based company is an offshoot of Trefoil Properties LP.
HC Spectrum Partners purchased both parcels from itself in 2011 for $966,253, according to county property records. Prior to that, HC Spectrum Partners bought it from itself for $1.56 million in 2008. The bank property, aka the former Roy Roger’s spot, is recorded as a separate and distinct parcel from the rest of the shopping center.
This is not HC Spectrum Partners LP and Falcone Hillcrest LLC’s first foreclosure rodeo. Back in December 2012, U.S. Bank, National Association filed a property foreclosure against HC Spectrum Partners LP, Falcone Hillcrest LLC, and SHE Hillcrest LLC in the U.S. District Court for the Eastern District of Pennsylvania.
Hillcrest Shopping Center, at 616-640 East Main Street, is the home to many active businesses, including Fisher’s Ace Hardware, Big Lots, Iron Athlete Gym, Fine Wine & Good Spirits, Café Cabana, and VIP Barbershop.
According to FindLaw.com, the basic rule in commercial leases in foreclosures is called “first in time, first in right.” If the lease was signed after the mortgage was recorded, then the lease is wiped out. Thus, the new owner can sell the properties, lease it to current occupants, or lease to someone else.
In some cases, commercial leases have a Subordination, Non-Disturbance and Attornment clause. In layman’s terms, the tenant can remain under a new landlord, as long as the tenant has complied with all lease terms.
See also:
Airport Square Shopping Center in Montgomery Township Sells for $82.5 Million
Wegman’s Parcel at Montgomery Mall Sold to California Investor for $22.6M, Store Lease Expires 2033
Montgomery Mall Sold to Investment Group for $55 Million
Montgomery Mall Now Up for Sale, Expected to Sell for Less than Half of Loan Default, Report States
Montgomery Mall in Foreclosure After $118 Million Loan Default, Judge Directs Mall to Be Sold
