Philadelphia Mills mall may soon be under new ownership as Simon Property Group is reportedly in talks to give up the shopping complex to its debtholders.
The Philadelphia Business Journal reported that Simon is looking to hand over the Northeast Philly mall, located at 1455 Franklin Mills Circle, to trusts that hold a $290 million loan on the property, which was due in June.
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In 2023, the net operating income of Philadelphia Mills fell to $10.6 million — its lowest level under Simon's ownership. Simon, which reportedly still owes a balance of $258.5 million, did not respond to a request for comment.
The city of Philadelphia assessed the mall's value at $101.3 million this year, significantly down from its appraisal of $370 million in 2007 after Simon took over the property.
Formerly known as Franklin Mills until a 2014 renovation, Philadelphia Mills is the second-largest mall in the state next to King of Prussia Mall in Montgomery County, which Simon also owns.
The major spots in Philadelphia Mills include Burlington, Marshalls, Walmart, AMC Theatres and Dave & Buster's. Philadelphia Business Journal reported that several retailers in the mall — including Off Broadway Shoe Warehouse, the Children's Place and American Eagle Outfitters — recently committed to lease renewals.
Music store Sam Ash recently closed its King of Prussia and Philadelphia Mills locations as the company restructures. Philadelphia Mills also houses Reclectic, which sells discounted items from URBN brands such as Anthropologie and Urban Outfitters. URBN did not immediately respond when asked how a change of ownership would affect the store.