The majority of Willow Grove Park Mall, one of the largest shopping malls in the region, has been put on the market by a lender after a $170 million loan matured, writes Ryan Mulligan for the Philadelphia Business Journal.
The nearly 725,000-square-foot portion of the mall owned by PREIT includes Macy’s, Nordstrom Rack, Cheesecake Factory, Sephora, Apple, and Bath & Body Works, with 12 storefronts that are currently vacant. This portion generates an annual net operating income of $8.8 million. Meanwhile, the parcels housing Bloomingdale’s and Primark are under separate ownership and are not on the market.
PGIM Inc., a subsidiary of Prudential Financial, is the lender, while JLL has been tasked with handling the property’s marketing.
Through a deed in lieu of foreclosure, a buyer can acquire the PREIT portions of the mall by taking on the lender’s debt and assuming control of the property. Given the declining value of malls, any deal would likely end up being heavily discounted from the original loan, with Willow Grove Park’s projected sale price estimated at around $70 million.
Read more about Willow Grove Park Mall in the Philadelphia Business Journal.
