Water Damage Restoration in King Of Prussia, PA

The owner of two hotels near the King of Prussia Mall is planning to hand them over to its lender before a $32.5M loan comes due in June.

Buccini Pollin Group plans to surrender two King of Prussia hotels ahead of its "imminent default" on a $32.5M loan, according to Morningstar Credit.

Buccini Pollin Group’s loan for the Fairfield Inn Philadelphia Valley Forge/King of Prussia and Crowne Plaza Philadelphia King of Prussia entered special servicing in December amid concerns of an “imminent default,” according to a report from Morningstar Credit.

“Borrower is cooperating with return of keys to Lender,” the financial services firm said in an April 7 update. “Counsels have been retained. ... Lender is reviewing viable options for next steps.”

In a statement, Buccini Pollin co-founder Dave Pollin said the company considered refinancing or extending the loan and selling the properties, according to the Philadelphia Business Journal, which first reported the news.

Ultimately, it decided to hand over the properties, Pollin said, citing turbulent capital markets and slow recovery of the King of Prussia lodging market.

“Hundreds of hotels, offices buildings, etc across the country have been returned to lenders due to the impact of covid, the slow recovery of certain markets, dramatically higher interest rates today and loan maturities that occur before assets have fully recovered,” Pollin said in a separate statement to Bisnow.

“This is an unfortunate cycle of the institutional commercial real estate landscape. We stay focused on the positive movement in the industry, such as the $130m+ in multifamily financing we’ve been able to secure this month.”

The two-hotel portfolio has a collective 306 rooms. Crowne Plaza, a full-service operation, has 206 keys, while the limited-service Fairfield Inn has 80.

The properties reported occupancy rates of 43% and 64%, respectively, in 2023. Revenue per available room was $59.80 for Crowne Plaza and $85.23 for the Fairfield Inn as of June 2024, according to the Morningstar report.

RevPAR for the Crowne Plaza was below the average of about $83 for King of Prussia’s hotel market last year, the PBJ reported.

Buccini Pollin sold off the Renaissance Philadelphia Downtown Hotel last month. The Center City hotel occupies a hulking tower across the street from the Independence Mall.

New owner Wankawala Organization is responsible for the more than $20M of debt tied to the 152-key property.

The baseball season has just begun and already there's a new phenomenon on everyone's lips: torpedo bats.

The bats have a tapered end and the designers moved its weight to the sweet spot, potentially rewarding batters with stronger hits.

The bats are already being credited with helping the New York Yankees slam nine home runs in a game against the Milwaukee Brewers on Saturday.

For the company behind the bats, the King on Prussia-based Victus Sports, the bats might just be the most exciting thing they've seen in the game since they were founded.

"The torpedo bat, obviously everyone is hearing about it now, so, for us, it's been the most exciting thing, really, that's happened in baseball bats in the last 15 years, since we started," said Jared Smith, Victus' founder.

Smith — whose company was also behind the stylish bats that looked like pencils and other designs — said the torpedo bats aren't new. But, his company spent over a year working with teams like the New York Yankees and the Baltimore Orioles to bring the torpedo design to the MLB.

It has been more than just these two teams that are using the torpedo design, however. Phillies third baseman Alec Bohm used one in the Phillies home opener, as well.

Dan Hennigan, the hitting coach behind the company Brain and Barrel Hitting, said the torpedo shape "took a lot" of research and design to get right, but it meets all MLB rules to be used in games.

The weight is just shifted, he said, to provide a better sweet spot for hitters.

"It's sort of, one little advantage that a player may be able to take," said Hennigan.

Following the success the pros are seeing with the new bats, the torpedo design is proving to be a hit at retail stores as well, with the company saying they are seeing orders increase as coaches are grabbing them for kids who want to improve their swings.

The discount retailer plans to liquidate its stores across the United States.

Patch Staff

MONTGOMERY COUNTY, PA — Discount clothing retailer Forever 21 is shutting down its U.S. operations and closing all stores, including several in Montgomery County.

The chain has locations at the King of Prussia Mall, Montgomery Mall, Willow Grove Park Mall, and Philadelphia Premium Outlets in Limerick, all of which will close.

Stores will remain open for now, but the company will begin liquidation sales with the intention to close all locations if there is no potential buyer.

"Through their chapter 11 cases, the Company will implement an orderly wind down of its U.S. business while continuing to conduct a marketing process to solicit interest in a going concern transaction or a sale of some or all of its assets," the company said in a news release.

The company filed for bankruptcy in 2019 before this latest news, but the problems remained consistent: rising costs, economic challenges and hearty competition from others in the fast-fashion side of the industry.

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"Forever 21 was the brand that the former generation used," said Roger Beahm, a marketing professor and director of the Retail Learning Labs at Wake Forest University, told the Los Angeles Times. "Today’s shoppers want their own brand, they want their own identity."

Forever 21’s locations outside of the United States are operated by other licensees and are not included in the Chapter 11 filings, officials said.

The chain has 16 total locations across Pennsylvania, including the four Montgomery County locations.

With reporting from Patch correspondent Deb Belt