Former Merchants Square Mall is sold

The former Merchants Square Mall has been sold.

SVN Imperial Realty announced Thursday that the 116,502-square-foot building on 8.49 acres in Allentown’s South Side was sold to Woodmont Industrial Partners for $5.275 million. The mall closed in March 2023.

“We are quite pleased that after much planning and an extended approval process, the sale of this well-known property has been completed to everyone’s satisfaction,” said Steve Wilson, one of the listing brokers. “It’s a testament to the value of ‘staying on the deal.’ We look forward to seeing the property repurposed to serve the Lehigh Valley’s thriving industrial market.”

Wilson and Amy Hawley from SVN Imperial represented the seller, Roche Partnership LLP. Jake Terkanian of CBRE represented the buyer in the transaction.

Roche bought the building at 1901 S. 12th St. in 2004 for $3 million, according to Lehigh County real estate records.

Woodmont, based in Fairfield, New Jersey, describes itself “as a leading owner, developer and manager of multifamily and commercial properties throughout the U.S.” Its portfolio includes at least four apartment complexes and one industrial property in the Lehigh Valley.

The building that housed Merchants Square was built in 1941 and was part of Consolidated Vultee Aircraft Corp.’s operations to manufacture torpedo bombers for the Navy during World War II. Hutt & Wasserman, a hat manufacturer, bought the building for $196,000 in 1947 and remained there for many years.

The building’s retail roots go back to 1985 when a group of Lehigh Valley business owners opened Allentown Outlet Mall in an attempt to draw shoppers away from what was then a bustling outlet retail industry in Reading.