NYT: Walmart buys failing Pennsy mall to gain entry into new market
Monroeville Mall in Monroeville, Pa., is best known as the filming location for director George Romero’s zombie classic “Dawn of the Dead.”
Soon, the property will set the stage for the dawning of Walmart in the town 10 miles east of Pittsburgh off I-376.
According to a report from the New York Times, tenants of the 1.4 million-sq.-ft. mall have been told they had until April 2027 to vacate their spaces by Dallas-based Cypress Equities, which represented an anonymous new buyer in the acquisition of the property from CBL & Associates.
That buyer turned out to be Walmart, which, in 2005, was denied a building permit in the town when Monroeville residents protested that the mega-retailer’s arrival would lead to increased crime and traffic.
“The sale of Monroeville Mall is a great example of the resilient value of well-located real estate in a dynamic market,” commented CBL’s CEO Stephen Lebovitz, in a press release announcing the deal.
Following the $34 million purchase of Monroeville Mall, its current tenants were told that the space would be turned into an open-air center with a Walmart, a Sam’s Club, a skating rink, shops, and restaurants.
The Times article speculated that while Walmart owns most of its store sites, buying and redeveloping standing malls and open-air centers could see the mega-retailer opening new revenue streams as a landlord to retail, recreational, and food and beverage tenants.
Following its acquisition of the Monroeville Mall, Walmart acquired a center in the neighboring town of Bethel Park that includes a Walmart store and a Giant Eagle.
Monroeville, whose median household income is close to $80,000, was once a corporate stronghold that housed large research operations for U.S. Steel and Westinghouse.
“We’ve seen malls in the region really go on the decline, so to have a large investment come into the eastern suburbs of Allegheny County is crucial for our economic development,” Monroeville chamber of commerce member Brandon Markosek told the Times.
The Century III mall, 10 miles southeast of Pittsburgh, was one of the largest malls in the nation when it debuted in 1979. It closed seven years ago and is currently being demolished.
