Kohan Retail Investment Group, a New York-based shopping mall investment company, has bought Montgomery Mall in a foreclosure sale for $55 million, writes Natalie Kostelni for the Philadelphia Business Journal.
The sale price represents 95 percent of the mall’s appraised $57.5 million value as of August. Seven years ago, the property was appraised at $195 million.
The sale of the mall to Montgomery Mall Realty Holdings, which is the entity used by Kohan to purchase the North Wales property, was approved by a Montgomery County Court of Common Pleas judge.
This Montco mall fits well into Kohan’s retail focus. The company owns a portfolio of 50 second-tier malls similar to the latest purchase.
They are located all around the country, including several in Pennsylvania.
The sale wraps up the saga that started in August 2020 when a $100 million loan that was backed by the property was nearing default. By last November, the property’s then-owner, Simon Property Group, signaled it was ready to walk away and relinquish the mall to the lender.
The property was foreclosed in June, with a $118.78 million judgment rendered against Simon affiliate Mall at Montgomery LP.
Read more about the sale of the Montgomeryville mall in the Philadelphia Business Journal.