Distressed Suburban Philly Mall Valued At $30M, Down 73%

The valuation of an underperforming Delaware County mall sank this month after the borrowers missed their payoff date last year.

Springfield Mall at 1250 Baltimore Pike was valued at just $30M in a recent appraisal, according to CMBS monitoring platform Morningstar Credit.

That is down 73% from the $112M valuation when owners PREIT and Simon Property Group originated their loan on the property in 2015. The 4.45% fixed-rate loan still has a balance of $52.4M.

“It’s such a sizable drop,” Morningstar Associate Managing Director David Putro told Bisnow of the valuation cut. 

The loan entered special servicing in October as the borrowers failed to pay it off by its maturity date. 

Putro said the new appraisal was a key procedural step in the workout process that will allow a receiver to be appointed.

The borrower has been cooperative and is now in prenegotiation, according to an update from special servicer LNR Securities Holdings earlier this month.

While Putro said Springfield Mall is “not thriving,” he doesn’t expect it to go anywhere and believes it could potentially be a candidate for redevelopment.

“We've seen a good number of malls recently get extensions, even with values that are well below the loan amount, like in this case,” Putro added. 

“Even though the appraisal is low, and the loan balance is relatively small as well. So, if there's any desire to do any redevelopment of the property, you can see the borrowers sticking around."

Morningstar reported a healthy 88% occupancy rate for the property but found that its net cash flow was 29% lower than the level it was underwritten for.

The CMBS monitoring platform wrote a “Boots on the Ground” report last year that found the mall garnered $389 of sales per SF in July 2025, below the submarket average of $450.

Putro attributed the low cash flow to the large number of local tenants in the property, including Party Variety and the Eastern Pennsylvania Robotics Alliance. He said this is a common strategy for struggling malls.

“They’ll keep the storefronts occupied at the expense of cheaper rents,” Putro said.

The Simon-PREIT joint venture has owned the property since 2005, according to county records.

PREIT didn't respond to a request for comment.

A Simon Property Group spokesperson told Bisnow that “Springfield Mall is not a Simon property.”

The property is still listed on Simon's website and in a supplemental document the company filed with the U.S. Securities and Exchange Commission last month. 

While the document notes that the property was managed by a third party, it says Simon still had 50% legal ownership of the asset. It reported being responsible for roughly $26.2M of debt, half of the total remaining on the loan. 

The spokesperson didn't respond to further questions about whether Simon has offloaded its ownership stake.