Neshaminy Mall Finds A Buyer
The Neshaminy Mall, a long-standing fixture in Bensalem, is set to change ownership following years of declining performance and partial vacancy. The Bensalem Economic Development Corporation announced that Paramount Realty, which owns multiple commercial properties in the Philadelphia area, will purchase the mall from Brookfield Properties, which acquired it in 2018.
Sale and Future Prospects
The mall’s sale, expected to settle within 30 days, comes as no surprise given its lagging performance and high vacancy rates. While the sale price remains undisclosed, the Philadelphia Business Journal estimated the property could fetch up to $25 million.
“We look forward to working with their team and hearing about the new opportunities this sale will bring to our community,” BEDC shared in a statement.
The future of the mall’s existing retail tenants remains uncertain. Paramount Realty has yet to outline specific redevelopment plans, but their portfolio suggests the potential for mixed-use development, given their history with similar properties in New Jersey and existing holdings in Bensalem, the Marketplace at Neshaminy, and Home Depot Plaza.
Historical Context and Market Trends
Opened in 1968, the Neshaminy Mall once thrived but faced a steep decline following the closures of Macy’s in 2017 and Sears in 2018. The mall, currently anchored by Boscov’s, Barnes & Noble, and an AMC theater, is reflective of a broader trend where U.S. shopping malls have significantly decreased from their peak in the 1980s.
The property, covering over 108 acres near Route 1 and I-276, was marketed by real estate firm JLL as a prime redevelopment opportunity, potentially suitable for multifamily residences.
Broader Implications and Local Impact
This transaction occurs amidst legislative discussions in Pennsylvania focusing on repurposing struggling malls to address housing shortages. A proposed bill aims to provide tax incentives for developers who transform these properties into energy-efficient housing.
Additionally, local business developments include plans announced in December, by Fusion Gyms to open a new indoor and outdoor sports complex at the site of the former Macy’s, hinting at the potential for diverse uses of the mall space.
Paramount Realty’s acquisition of Neshaminy Mall represents a pivotal moment for the Bensalem community, signaling possible revitalization and new commercial and residential opportunities. Community members and stakeholders await further details on the redevelopment plans and their implications for the local economy and lifestyle.