Exciting news is on the horizon for Philadelphia Mills mall as reports surface that Simon Property Group is in discussions to transfer ownership of the shopping complex to its debtholders. The Philadelphia Business Journal recently revealed that Simon is looking to hand over the Northeast Philly mall, situated at 1455 Franklin Mills Circle, to trusts holding a $290 million loan on the property.
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In 2023, the net operating income of Philadelphia Mills dropped to just $10.6 million – its lowest level during Simon’s ownership. With a remaining balance of $258.5 million, Simon has yet to comment on the situation. The city of Philadelphia assessed the mall’s value at $101.3 million this year, significantly lower than the $370 million appraisal back in 2007 when Simon acquired the property.
Formerly known as Franklin Mills until a 2014 renovation, Philadelphia Mills ranks as the second-largest mall in the state, only trailing behind King of Prussia Mall in Montgomery County, which is also owned by Simon. The mall features popular retailers like Burlington, Marshalls, Walmart, AMC Theatres, and Dave & Buster’s. Recent reports from the Philadelphia Business Journal indicate that several retailers, including Off Broadway Shoe Warehouse, the Children’s Place, and American Eagle Outfitters, have committed to lease renewals.
Sam Ash music store recently closed its locations in King of Prussia and Philadelphia Mills as part of a company-wide restructuring. Additionally, Philadelphia Mills is home to Reclectic, a store offering discounted items from URBN brands like Anthropologie and Urban Outfitters. URBN has not yet commented on how a change in ownership would impact the store.