The Montgomery Mall, foreclosed upon and in receivership, has been put up for sale.
The mall could sell for an estimated $50 million, according to various sources, which is a fraction of the $118 million judgment lodged against the property as a result of a loan default. The estimate is a reflection of an August 2020 appraisal of the mall that had it valued at $61 million, or $55 a square foot. In 2014, the mall had been appraised at $195 million, or $176 a square foot, according to Cred-IQ.
The 1.1-million-square-foot center on nearly 105 acres at routes 202 and 309 in North Wales serves as an example of the struggles malls were undergoing before the pandemic that, in many cases, have been exacerbated by the effects of Covid-19.
The regional mall has experienced some vacancies as retailers close or file for bankruptcy protection. As with many retail centers, it has also faced competition from the rise of online shopping, which intensified during the pandemic.
Montgomery Mall has a vacant Sears, which totals 169,000 square feet, and is also anchored by two other challenged retailers — Macy’s, which occupies 218,000 square feet, and JCPenney with 166,375 square feet. Neither Macy’s nor JCPenney, which filed for Chapter 11 bankruptcy protection last May, have announced the closure of these locations.
Companies that operate as some of the mall’s smaller anchors, such as H&M, which occupies 20,085 square feet, are also facing headwinds. H&M has said it plans to close 350 stores this year and open 100 new ones. The company hasn’t divulged which locations it intends to shutter.
*Article courtesy of Philadephia Business Journal
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