Harrisburg Mall to become mixed-use business community; Bass Pro Shops, Applebee’s to stay

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Baltimore-based St. John Properties, Inc., a commercial real estate development and management company, has revealed that it will redevelop Harrisburg Mall, the 1 million-square-foot regional mall in Swatara Township, into Swatara Exchange, a mixed-use business community that will bring a multitude of new jobs.

Following an extended demolition program that is expected to conclude in 2025, the company plans to develop Swatara Exchange, which will include single-story office, multi-use/flex space and supporting inline retail and retail pad sites.

The existing Bass Pro Shops and Applebee’s Grill + Bar Restaurant will stay, and the former Toys R Us building will be marketed for a new use, St. John Properties said in a release.

At full buildout, Swatara Exchange is expected to support up to 1,000 new jobs in its nearly 550,000 square feet of space, and contribute approximately $1 million in additional tax revenue yearly. Twelve new buildings, including two retail pad sites, will be constructed overall.

“When formulating our long-term strategy for Harrisburg Mall, we factored in trends occurring throughout the retail industry, changing consumer shopping patterns, the local real estate landscape, and the greater Harrisburg economic climate,” stated Lawrence Maykrantz, President and CEO of St. John Properties, which has a national portfolio valued at more than $5 billion. “It was extremely important that we satisfy Swatara Township residents, Dauphin County taxpayers, and the regional business community. After careful consideration, research, and planning, we believe we have arrived at a solution that leverages our company’s strengths and experience, and which will provide long-term value and benefits to the community.”

St. John Properties’ development plan entails the construction of 13,600 square feet of single-story office space and nearly 200,000 square feet of single-story multi-use space, which the company classifies as flex/R&D.

The latter building type consists of a “part office/part industrial” single-story building separated into bays that can be fully customized based on the users’ requirements. The space is easily adaptable to accommodate a wide array of end-users including professional services, medical, wholesale, light manufacturing and distribution, scientific research and early childhood education. St. John Properties currently develops and leases this flex/R&D asset class in nine states across the country.

The balance of the Swatara Exchange plan includes the development of nearly 50,000 square feet of complementary inline retail space and two new retail pad sites that will be marketed to restaurants, financial institutions, medical providers, convenience stores and other users to support the daily needs of the surrounding community and Swatara Exchange tenants and employees.

The former Toys R Us building at 3405 Paxton Street is currently being marketed for sale or lease and is attracting interest from both retail and non-retail businesses.

Paula Wolf is a freelance writer