Baltimore’s St. John Properties to redevelop Pa. mall site into mixed-use business community

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St. John Properties Inc., a Baltimore-based commercial real estate development and management company with a national portfolio valued at more than $5 billion, has revealed its redevelopment strategy for Harrisburg Mall, a 1 million-square-foot regional mall in the Swatara Township section of Dauphin County, Pennsylvania.

Following an extended demolition program that is expected to conclude in 2025, the company plans to embark on the development of Swatara Exchange, a mixed-use business community containing single-story multi-use/flex commercial space, and supporting inline retail and retail pad sites.

The existing Bass Pro Shops and Applebee’s Grill + Bar Restaurant will remain operational and the former Toys R Us building will be marketed for a new use.

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 annually. Twelve new buildings, including two retail pad sites, will be constructed.

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.

This latter building type became a trademark of St. John Properties in the early 1970s in response to the real estate needs of a wide range of end-users. It consists of a “part office/part industrial” single-story building separated into bays which can be fully customized based on the users’ requirements.

The product, equipped with 16- to 18-foot ceiling heights, 30-foot-wide bays, 80- to 100-foot building depths, rear service courts for truck loading, and abundant parking, can be leased as a single-bay or in multiple bay units up to an entire building.

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 tenant and employees.

Demolition of the remaining structures is expected to begin in March 2024 and to be completed in just over one year and is subject to changes based on market and other conditions. Mass grading will follow, and is scheduled to be completed by late 2025. Phase I building construction and tenant fit-out work will extend from fall 2025 to fall 2026.

This activity coincides with PennDot’s ongoing capital project improvements, including the reconstruction of the Eisenhower Interchange designed to improve ingress and egress to Swatara Exchange.