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Suburban Boston Mall Sees Value Slashed From $200M To $30.4M

The Solomon Pond Mall in Marlborough saw its value slash from $200M to $30.4M two years after Simon Property surrendered it to its lender
The Solomon Pond Mall In Marlborough Saw Its Value Slashed From $200M To $30.4M Two Years After Simon Property Surrendered It To Its Lender.

Boston’s suburban malls continue to see plunging valuations as they lose tenants and struggle to keep up with consumer demands.

The Solomon Pond Mall in Marlborough received a new appraisal this month valuing it at $30.4M, according to Morningstar. The 1.4M SF mall was valued at $200M when Simon Property Group obtained a loan in 2013.

In 2021, Simon pushed the mall into its “other properties” category, a designation that ultimately led to properties at risk of being surrendered to lenders. The same year, the mall was given back to its lender, which still owns the property, according to Marlborough officials.

Simon had obtained a $110M loan on the property from Morgan Stanley in 2013, Securities and Exchange Commission filings show, and the mall REIT said the mortgage was outstanding as of Dec. 31, according to its 2022 annual report.

Pacific Retail Capital Partners took over managing the property in 2021. PRCP didn't answer requests for comment on the matter.

Rising vacancy in Greater Boston malls has been a major driver for the slashes in property value. In 2013, the mall was 94% leased, but that dropped to 79.4% in 2021, according to Simon's 2021 annual report, following the loss of anchor tenant Sears.

Emerald Square Mall in North Attleborough was 30% vacant last summer, two years after it was given back to lenders by Simon and put in court receivership. In 2009, the mall was valued at $197M, but as of last year, its valuation stood at $65M.

The mall's location might also be in part why it has struggled to recover. Just like Emerald Square, Solomon Pond sits far outside the Route 128 belt, about 30 miles from Boston.

Other malls closer to Boston and on the Route 128 and 495 belts have fared better, with the Burlington Mall being one of Simon's best assets in the region, as well as its Copley Square Mall downtown.

VOM Living proposed housing right next to Simon's South Shore Mall, citing its proximity to the city and other mixed-use communities as reasons for wanting to build the two-building, 495-unit apartment community nearby.

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