Harrisburg Mall’s new Maryland-based owners are wasting no time in their plan to reverse the fortunes of this one-million-square-foot retail center, which was hit hard by the 2008 recession and has struggled to recover ever since.
Since purchasing the property at 3501 Paxton St. in June, St. John Properties Inc. of Baltimore and its venture partner Petrie Ross Ventures of Annapolis have hired a director to oversee operations and removed a five-year-old eyesore blocking the front.
A ceremonial demolition of the nearly half completed Sega Sports Restaurant, a deteriorating reminder of the former owner’s grand ambitions before the economy collapsed, was done with fanfare, inviting press, public and government officials.
“What we hope to do is show people consistent progress in turning this asset around,” said Gerard Wit, senior vice president of marketing for St. John.
Malls generally have been on a downward trend, but St. John and Ross Petrie see retail potential in Harrisburg Mall, citing its strong demographics, the region’s economic stability, and the mall’s design, enhanced by $60 million in renovations a few years ago.
Nonetheless, the owners are sensitive about the appearance of the mall, built in 1969. In an informal survey of area residents about the mall, half said it should be torn down, said Walt Petrie, chairman of Petrie Ross Ventures.
“We are evaluating every aspect of the mall’s interior and exterior to determine other areas that can be feasibly improved,” Petrie said. “This is being accomplished simultaneously with an aggressive marketing and leasing strategy to attract compelling new retailers to the project.”
The owners plan some initial minor changes such as landscaping, including a park-like area with a gazebo where the demolished building stood. More importantly, though, the new owners intend, over the next few years, to raise the quality of retail.
Bass Pro Shops and Macy’s are strong anchors to the mall, but smaller tenants, which may lack the quality retail the new owners believe necessary to compete with the region’s other malls and attract families, will not have their leases renewed, Wit said.
The Daniel Group, a national mall consultant, has been hired to help bring in new retailers including one for the empty anchor space that had been occupied by Boscov’s until it closed its store in 2008.
“This is a great men’s mall,” Wit said. “What we want to do is bring ladies and children here. Our primary goal is getting the national retailers back.”
For information about the mall, visit www.shopharrisburgmall.com.
