U.S. Bancorp Provides $35M Refi for Pennsylvania Mall

A joint venture between Onyx Equities and PCCP has secured $35 million to refinance Westgate Mall, a 253,000-square-foot, open-air retail center in Bethlehem, Pa.

U.S. Bancorp provided the financing, while Cushman & Wakefield’s Brad Domenico, Frank Stanislaski and Jack Subers advised the sponsors.

Onyx Equities and PCCP have invested $20 million into upgrades since acquiring Westgate Mall in October 2018. 

Domenico said in a statement that the retail asset has been “thoughtfully repositioned” through the value-add investments, especially as Westgate sits beside Lehigh Valley Hospital, a busy regional health center and serves as a retail corridor between Allentown and Philadelphia. 

“U.S. Bancorp recognized the strength of the real estate and the sponsor’s execution, and we’re pleased to have delivered a structure that aligns with their long-term vision,” said Domenico.

Located at 2285 Schoenersville Road, Westgate opened in 1973 with 40 stores. Developer Harold S. Campbell, who began his career as an independent milkman, purchased the land that Westgate would be built on in 1950 from a small farmer for $30,000, according to Lehigh Valley Live. Campbell believed Westgate Mall would link Lehigh and Northampton counties together through increased economic development. 

Today the mall sits on nearly 23 acres and is 84 percent leased to 26 tenants. The mall features 1,600 parking spaces. Tenants include Harbor Freight Tools, Oak Street Health and Penn Community Bank, and the mall sits within an area with more than 230,000 residents. 

Brian Pascus can be reached at bpascus@commercialobserver.com.