February 06, 2024
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The Neshaminy Mall in Bensalem has been listed for sale by owner Brookfield Properties. The mall was built in 1968, but has suffered the loss of anchor tenants Macy's and Sears in recent years.
The Neshaminy Mall in Bensalem has been listed for sale by Brookfield Properties, which hopes to attract a buyer with a vision for redeveloping the 91-acre property in Lower Bucks County.
The shopping mall, built in 1968, lost anchor department stores like Macy's and Sears in recent years. Its retail properties are now about half-vacant, with core remaining tenants like Boscov's, Barnes & Noble and a 24-screen AMC movie theater that opened in 1998.
The sale listing from commercial real estate agent JLL touts the Neshaminy Mall's location — near the intersection of Route 1 and I-276 — as a coveted suburban market in the greater Philadelphia area. The listing says more than 170,000 vehicles pass the mall each day, offering a strong base to repurpose and modernize portions of the property.
The back-to-back losses of Macy's in 2017 and Sears in 2018 accelerated a downward trajectory for the Neshaminy Mall, whose issues have been a common theme among traditional malls. Although the Neshaminy Mall underwent a minor renovation in 2015, expanding Boscov's and updating signage, its retail mix has suffered without the steady foot traffic of its former anchor stores. Most of the mall is on one floor, with anchor locations having two or three floors.
Brookfield Properties presents the property as a potential site for multifamily residential development and other contemporary features of shopping centers, including grocery stores and more restaurants. The Roosevelt Mall in Northeast Philadelphia — a shopping center anchored by a Macys — is now in the midst of a major renovation that will include a new Sprouts Farmers Market and restaurants like Raising Cane's and Panda Express.
Citing data from location analytics firm Placer.ai, the real estate listing notes that some of the remaining tenants at the mall have maintained high-performing stores. Boscov's gets just under 1 million annual visitors, ranking fourth among the Pennsylvania-based retailer's locations. Uno Chicago Grill and On The Border Mexican Grill attract more than 240,000 and 290,000 annual visitors, respectively, according to the firm's data.
Brookfield Properties and JLL say the Neshaminy Mall is being marketed for sale "as-is."
Last year, the Bucks County Courier Times reported the assessed property value of the mall had dropped by 42% since 2020, falling to $3.6 million. The Philadelphia Business Journal reported the mall could sell in the range of $25 million, citing an industry source.
In recent months, there have been signs of growing interest in properties surrounding the mall. The former Macy's, which was located on a property separate from the mall, will be converted into a Fusion Gyms location, chain owner Tony Chowdhury said in December.
Some struggling malls have tried to pivot to a mix of residential, retail and entertainment offerings as many consumers eschew in-person retail for online shopping. In New Jersey, Moorestown Mall owner PREIT is building apartments on its property and has a new Cooper University Health Care outpatient center in a former Sears building. PREIT is now in bankruptcy protection as some of its 18 mall properties in the region face pressure. Apartments have been proposed as possible debt solutions to support malls in places like Willow Grove, Plymouth Meeting and Exton.
Chowdhury said Bensalem leaders were enthusiastic about bringing a gym to the Neshaminy Mall area to help turn the mall around. Brookfield Properties previously had worked with the township to attract tenants like Round 1 Bowling & Amusement, Chick Fil-A and Wawa in recent years, but none of those prospects materialized.
