A bank has foreclosed on Montgomery Mall and a $118.78 million judgment has been rendered against the property’s owner, an entity affiliated with Simon Property Group, according to court documents.
Wilmington Trust, as trustee for Wells Fargo Commercial Mortgage, filed in early June in the Montgomery County Court of Common Pleas to start foreclosure proceedings and place the 1.1-million-square-foot mall at the crossroads of Routes 202 and 309 in North Wales in receivership.
By June 22, a receiver had been appointed and, by July 12, a judge approved a judgment in mortgage foreclosure against Mall at Montgomery LP, the Simon affiliate. It was also requested that the property be sold to satisfy the loan.
It’s not unusual for owners to sometimes relinquish properties that they have determined no longer fit within their core portfolio, and it was practiced with some frequency during the Great Recession. Whether the Montgomery Mall fit into that category for Simon (NYSE: SPG) couldn’t be determined, though signs point to that. A company spokesperson couldn’t be reached for comment.
The judgment and foreclosure of the Montgomery Mall were foreshadowed last year when Simon notified the special servicer overseeing a $100 million loan on the Montgomery Mall that it was “unwilling to inject additional funds into [the] loan, but is willing to manage [the] property,” and that the loan was facing imminent default, according to a report by Cred-IQ, which tracks commercial mortgage-backed securities.
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