Mall resuscitation specialist Kohan intends to keep Montgomery Mall alive despite its 25%-plus vacancy rate. (Photo via Facebook)
Kohan Retail Investment Group, the fallen mall resuscitator willing to operate properties with 20%-plus vacancy rates, has purchased Montgomery Mall in North Wales, Pa., for $55 million, according to the Philadelphia Business Journal.
Former owner Simon Property Group returned Montgomery Mall back to its creditors earlier this month.
Located just 15 miles from one of Simon’s highly regarded King of Prussia Mall in the suburbs north of Philadelphia, Montgomery Mall was once appraised at a value of $195 million. Kohan, which owns 50 malls nationwide, bets that its well-located malls can build new traffic remade with “blends of entertainment, food, and retail than the past model where retail reigned supreme,” according to its mission statement.
Montgomery Mall’s occupancy rate had fallen to 73%, according to Simon’s most recent 10K annual report, and the property fell into foreclosure in July. Though not fully leased, the property continues to retain notable tenants including Dick’s Sporting Goods, Macy’s, Francesca’s, Aerie, Sephora, and Chik-fil-A.
Though Kohan has made news for failing to pay taxes and electric bills at some of its properties, it is welcomed by municipalities in secondary markets that are eager to keep their malls alive. Properties owned by the Great Neck, N.Y.-based company include Almeda Mall in Houston, Burnsville Center in Minnesota, Outlets of Little Rock in Arkansas, and Savannah Mall in Georgia.