Montgomery Mall Sells For $ 55 Million In New York Business Foreclosure Sale – NBC10 Philadelphia
What there is to know
- The Montgomery Shopping Center in North Wales, Pennsylvania has a new owner.
- Kohan Retail Investment Group of Great Neck, New York, bought the mall in a foreclosure sale for $ 55 million, reports the Philadelphia Business Journal.
- The sale closes a saga that eclipses the regional shopping center.
Kohan Retail Investment Group of Great Neck, New York, bought the Montgomery Mall in a foreclosure sale for $ 55 million, reports the Philadelphia Business Journal.
The sale price is 95% of the appraised value of the property in August, or $ 57.5 million. In 2014, the mall was valued at $ 195 million, or $ 176 per square foot.
A Montgomery County Common Pleas Judge signed an order approving the sale to Montgomery Mall Realty Holdings, the entity from which Kohan used to purchase the 1.1 million square foot property in North Wales, PBJ.com reports.
The property fits in with Kohan’s business orientation. In addition to two hotels in New York City, Kohan has a portfolio of 50 similar shopping centers across the country, including several in Pennsylvania, such as Wyoming Valley Mall, Washington Crown Center, and Lycoming Mall.
The sale ends a saga eclipsing the regional mall that began in August 2020 when a $ 100 million loan against the property was on the verge of default. Last November, an entity affiliated with Simon Property Group, which owns the shopping center, informed the special duty officer overseeing the loan that it was “unwilling to inject additional funds into [the] ready, but is willing to handle [the] property, ”according to a monthly report that tracks CMBS loans.
PBJ.com goes down the struggles the mall faced before and during the COVID-19 pandemic.