The Neshaminy Mall in Bensalem is undergoing a change in ownership, signaling a new chapter for the once-struggling property. After years of lackluster performance that led to half-vacancy, the mall was listed for sale in February and is now set to be purchased by Paramount Realty, a well-established owner of shopping centers and commercial properties in the Philadelphia area and beyond. The property was previously owned by Brookfield Properties, who acquired it in 2018.
The Bensalem Economic Development Corp. expressed optimism about the sale, stating, “We look forward to working with their team and hearing about the new opportunities this sale will bring to our community.” The settlement is expected to be finalized within the next 30 days, although the sale price has not been disclosed. Reports from The Philadelphia Business Journal suggest the property could fetch up to $25 million.
The impact on existing retail tenants remains uncertain as details regarding the transition are still scarce. Both Paramount Realty and Brookfield Properties have yet to comment on the impending transaction.
Located near Route 1 and I-276 and established in 1968, the Neshaminy Mall faced significant challenges, particularly after losing Macy’s in 2017 and Sears in 2018. Despite these setbacks, the mall is anchored by Boscov’s, Barnes & Noble, and an AMC movie theater boasting 24 screens. The struggles of the mall mirror a broader decline in U.S. shopping malls, which have dwindled from around 2,500 in the 1980s to approximately 700 today.
JLL, the real estate agent handling the sale, emphasized the property’s size and strategic location, noting the high volume of traffic passing through the area daily. With over 108 acres of land and additional parcels, the mall presents a potential opportunity for redevelopment into multifamily residences.
Paramount Realty, which already owns properties in Bensalem and South Philadelphia, has not disclosed plans for the Neshaminy Mall. However, in December, Fusion Gyms revealed intentions to establish a new location with an indoor and outdoor sports complex at the former Macy’s site within the mall.
As Pennsylvania lawmakers explore solutions to housing shortages, the sale of struggling malls like Neshaminy Mall could play a role. Proposed legislation aims to incentivize developers to invest in such properties by offering tax abatements for constructing energy-efficient housing units.