Aug 29, 2016 2 min read

TARENTUM – A Pittsburgh-area mall that was worth about $190 million a decade ago is now valued at $11 million, a real estate market research firm said. Duquesne University marketing professor Audrey Guskey told the Pittsburgh-Tribune-Review the appraisal value of the Galleria at Pittsburgh Mills is becoming “dangerously low” and the mall could lose more retailers.

“Unfortunately, Pittsburgh Mills mall has been struggling since they opened. I don’t think they ever met expectations,” Guskey said.

Guskey said plans for attractions – including a go-kart race track and a water park – never came to fruition.

The mall is located along Route 28 in Frazer Township, about 20 miles northeast of Pittsburgh.

Sean Barrie, a research analyst with New York City-based Trepp LLC, which provides market research for the real estate and banking industries, said the new valuation came from the loan servicer Berkadia Commercial Mortgage.

Trepp said the 1.1 million-square-foot mall is now 58 percent occupied and had been at about 65 percent in November.

Guskey said malls hope for an occupancy rate of at least 80 percent.

Wells Fargo foreclosed on the mall in November, saying Pittsburgh Mills Limited Partnership, owned by Johnstown-based Zamias Services, owes about $143 million on the original $133 million loan taken out in 2006. The loan matured in April.

Jones Lang LaSalle Americas, a turnaround firm, has been appointed by the court as receiver to operate and manage the mall.

A representative from that firm didn’t immediately respond to a request for comment.