CHELTENHAM, PA—A court-appointed special servicer has put the 639,000-square-foot Cheltenham Square Mall on the market for sale.
CBRE has been hired to market the enclosed mall at 2385 Cheltenham Ave. to prospective investors. New York City-based Thor Equities acquired the center from Simon Property Group in 2005 for $70.5 million with the assumption of a $54.9-million CMBS loan that was backed by a 423,000-square-foot portion of the property, according to the Philadelphia Business Journal. Thor was unsuccessful in its attempts to renegotiate the loan through Bank of America and a special servicer was later appointed by the U.S. District Court for the Eastern District of Pennsylvania.
The mall is located on 65 acres and is 90% occupied. It is anchored by Target, Home Depot, and ShopRite. Other retailers at the mall include TD Bank, Chili's and Chick-Fil-A.
CBRE's Peter Stevens expects significant investor interest for the retail center that was constructed in 1957 and enclosed in 1981.
"We think the highest and best use here is retail," Stevens says. "This is not a scenario where this is the third mall in a two mall town." See story in the Philadelphia Business Journal.
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