Sheriff’s sale for Galleria mall in Johnstown pushed back again, this time to September

Jun. 10—The Johnstown Galleria was scratched from the list of properties scheduled for a Cambria County sheriff’s sale on Friday.

The sale of the mall has been continued multiple times since December. It’s now slated for the Sept. 10 sale, Cambria County Sheriff’s Office staff said.

The mall went into foreclosure in early 2020, and has since been operated by a court-appointed receiver, Spinoso Real Estate Group.

Spinoso, based in Syracuse, N.Y., will continue to manage the mall until it is sold.

Reached by phone Wednesday, Spinoso representatives had “no comment” when asked whether the company had a time frame for a sale.

The Galleria was owned by the Florida-based Adar Johnstown LLC and managed by Zamias Services when banks foreclosed on it, taking the property as collateral for a $14 million mortgage debt.

While Adar owned the Galleria’s core, the remaining Galleria campus belongs to multiple entities that still hold ownership.

Multiple layers of ownership makes new development difficult, Zamias Services President Perry Russ said for a Feb. 27 report in The Tribune-Democrat.

Russ was director of mall leasing in 1992, when company founder George Zamias built the Galleria.

The mall’s anchor stores are owned separately, and properties on Galleria Drive — including the former Toys “R” Us as well as the current site of Planet Fitness — are also part of a master agreement, he said.

Walmart used to be where Planet Fitness is currently — and today, there’s still a stipulation set by Walmart limiting the uses for that location, Russ said.

Redeveloping the mall would be much easier if one entity owned the entire parcel, he said.