The Neshaminy Mall in Bensalem is soon changing ownership following years of lagging performance that left the property half-vacant before it was listed for sale in February.
The Bensalem Economic Development Corp. said the mall in lower Bucks County will be purchased by Paramount Realty, which owns numerous shopping centers and commercial properties in the Philadelphia area and beyond. The mall had been owned by Brookfield Properties, which acquired the struggling mall in 2018.
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"We look forward to working with their team and hearing about the new opportunities this sale will bring to our community," BECP wrote in a Facebook post.
Settlement is expected to take place in the next 30 days. A sale price was not given. The Philadelphia Business Journal reported in February that the mall property could sell for as much as $25 million.
It's not yet known how the sale of the Neshaminy Mall could affect existing retail tenants.
Paramount Realty and Brookfield Properties could not be reached for comment on the pending transaction.
Built in 1968 near Route 1 and I-276, the Neshaminy Mall declined steeply when it lost Macy's in 2017 and Sears in 2018. The mall is anchored by Boscov's, Barnes & Noble and an AMC movie theater with 24 screens. Its challenges are part of a decades-long trend affecting U.S. shopping malls, which peaked at around 2,500 in the 1980s and fell to about 700 in recent years.
When the property was listed, real estate agent JLL touted the size of the lot and its location in an area that sees 170,000 vehicles pass through each day. The mall was pitched as a potential candidate for redevelopment into multifamily residences. The property covers just over 108 acres and includes secondary parcels that are owned or leased.
Paramount Realty already owns a pair of properties in Bensalem — the Marketplace at Neshaminy and Home Depot Plaza — as well as South Philadelphia's Columbus Crossing. The company's portfolio includes two mixed-use properties in New Jersey, but there have not been any indications about what's planned for the Neshaminy Mall.
In December, the owner of fitness chain Fusion Gyms revealed plans to open a new location with an indoor and outdoor sports complex at the Neshaminy Mall's former Macy's.
The sale of the Neshaminy Mall comes at a time when some Pennsylvania lawmakers are looking to struggling malls and shopping centers as a possible solution to housing shortages. One bill aims to create a program that would allow municipalities to offer tax abatements to developers who invest in such properties by constructing housing that meets energy efficiency guidelines.
