The Philadelphia Business Journal reported on November 20th that Kohan Retail Investment Group of Great Neck, New York has purchased the Montgomery Mall in North Wales for $55 million through a foreclosure sale.
The article points out that the mall had an appraised value of $195 million in 2014. The current appraisal from August 2021 is $57.5 million.
From the article:
The property fits into Kohan’s retail focus. In addition to two hotels in New York City, Kohan owns a portfolio of 50 similar second-tier malls across the country including several in Pennsylvania such as Wyoming Valley Mall, Washington Crown Center and Lycoming Mall.
The sale brings to a close a saga overshadowing the regional mall that began in August 2020 when a $100 million loan backed by the property was nearing default. By last November, an entity affiliated with Simon Property Group, which owned the mall, notified the special servicer overseeing that loan that it was “unwilling to inject additional funds into [the] loan, but is willing to manage [the] property,” according to a monthly report that tracks CMBS loans.
Read the entire article here.