Plans to sell, demolish and redevelop the Berkshire Mall in Wyomissing are progressing.
At an economic development meeting late in January, developer Peter Abrams of Abrams Realty Group said he placed a $1 million non-refundable deposit on the mall property.
The sale is expected to close May 15.
Abrams Realty Group aims to demolish the 910,000-square-foot Berkshire Mall, except for Boscov’s, and build an open-air retail and mixed-use space that would attract national chain retailers. (BILL UHRICH/READING EAGLE)
Abrams aims to demolish the 910,000-square-foot mall, except for Boscov’s, and build an open-air retail and mixed-use space that would attract national chain retailers.
The mall was purchased in 2020 by Namdar Realty Group. Since then, portions of the property have fallen into disrepair. Issues have included a dilapidated exterior and large sinkholes in the parking lot.
Wyomissing officials said last year that they took legal action against Namdar to correct issues with the property.
Repairs to the parking lot are largely complete, Mayor Fred Levering said.
“There’s not a whole lot left to be done at this point,” he said. “It’s still going forward. That’s the current owner’s (Namdar’s) issue, not the new developer.”
Last week the borough threatened to order the mall shut down if immediate repairs were not made to its HVAC and springkler systems.
Where things stand
At the meeting, Abrams gave an update on the state of the plans.
He said developers had considered adding a residential area to the redevelopment, but that idea has been nixed in favor of potentially adding a medical office.
“More and more, a medical office use (seems to be) an integral part of the development to make the numbers work,” Abrams said.
Developers have been contacted by members of the medical community, including Tower Health, about space in the development.
“They all seem to have a desire to be in Wyomissing,” Abrams said. “Many of them wanted to be part of the Broadcasting Square development (in Spring Township) but they couldn’t get in.”
Negotiations are ongoing between developers and big box retailers, including Costco.
“Sprouts (Farmers Market) wants to be here, possibly a Trader Joe’s,” Adams said at the meeting. “There is a need for a new fitness-wellness concept here.”
Besides the big box retailers, Abrams said the plans call for a strip mall-style stretch with restaurants and outdoor dining, retail and a 40,000-square-foot fitness center.
“Think about everybody that’s not here,” Abrams said. “All the higher end kind of things you see in a lifestyle center.”
He gave examples of Shake Shack and Chick-Fil-A as possible tenants.
Walmart a possibility
Walmart is another possibility. Abrams said the retail giant has noted an interest in selling to Abrams its current Wyomissing location in Berkshire Square, which he would then redevelop.
“Tenants that want to be here at the mall property but can’t afford it, we would backfill to (the Berkshire Square) Walmart,” Abrams said.
He said developers have explored the idea of designating a part of the Walmart facility as a space for municipal government or police department use.
“Specifically, a place for the police to have a bigger facility and more parking for police cars,” Abrams said.
Borough manager Michele Bare said she had discussed the proposal with Chief John Phillips.
“The primary concern is that the (police) space would have to be 100% cordoned off from anything else,” Bare said. “And (we’d need) an entrance and exit out the back from Ridgewood (Road) so we aren’t going through the general parking lot out front.”
As for a new Walmart, Abrams said the site plan calls for a 171,000-square-foot facility, which would include a full-blown grocery store, discount department store and fulfillment center.
“That’s 60,000 square feet larger than a typical (Walmart),” Abrams said. “This is their new widget that they are dying for so they can compete better with Amazon.”
Negotiations with Costco and Walmart are close to wrapping up but haven’t been finalized, Abrams noted.
Other improvements to the site could include major upgrades to storm water and other systems from an environmental standpoint.
Besides the big box retailers, developer Peter Abrams of Abrams Realty Group said the plans call for a strip mall-style stretch with restaurants and outdoor dining, retail and a 40,000-square-foot fitness center. (BILL UHRICH/READING EAGLE)
“I’m a big fan of solar, geothermal, all that stuff,” Abrams said.
The overall goal is to create a campus-like development.
“The State Hill Road frontage is pretty, it’s walkable and it has to be connected to the rest of the shopping center and walkable through to the other side,” Abrams said.
Officials said all the proposed uses are allowed within its commercial zoning district.
Financing
Abrams said the budget for the project is $41 million.
“The original budget was $27 million,” Abrams said. “That’s one of the reasons why the TIF conversation has become more important.”
Tax Increment Financing, or TIF, allows the issuance of bonds to fund the redevelopment of an area. The debt is paid off using a portion of the increased tax revenue that the development generates.
Abrams said that even with a TIF to help fund site work, local taxing entities like the Wilson School District would still see a substantial increase in their tax base.
“After the TIF is paid back, the school district will be riding very high,” Abrams said. “Significant revenue to the school district, and to (Berks) county and (Wyomissing) borough.”
Creation of a TIF would involve forming a committee that would formulate the details and put a plan forward for official approval.
Abrams noted his next step is creating an economic impact study that could provide further detail on the benefits and impacts of the project on employment, tax revenues and more.
He gave a timeline of 12 to 14 months before developers would begin moving out the mall’s current tenants.
Abrams noted that some of the current tenants might find a new home in the area’s strip mall portion.
“I’ve had many phone calls with existing tenants,” Abrams said. “Anybody that makes sense to come back post construction…I’ll do my best to work with everybody and make sure everybody gets heard the best I can.”
Levering noted that at this point all plans remain conceptual and subject to change.
“Now they (developers) have to refine it (the plan) and make a full presentation,” the mayor said.
A woman cleans the window on the entrance to the Berkshire Mall. The sale of the mall to Abrams Reality is expected to close in May. (BILL UHRICH/READING EAGLE)