Developer Plotting $100M Transformation of Philadelphia Mall

Philadelphia’s second-largest mall is slated for a nine-figure transformation.

Local developer Dean Adler is in contract to purchase the Franklin Mall from Simon Property Group and Farallon Capital Management, Bisnow reported. It’s unclear how much Adler is putting out to purchase the property, but he’s planning a total investment of roughly $100 million.

Simon and Farallon put the 1.6-million-square-foot property up for sale late last year, tapping JLL to market the mall. It opened in 1989 and became a commerce hub in Northeast Philadelphia, but has struggled in recent years and is only 68 percent leased, according to the Philadelphia Business Journal, sporting a trio of big-box vacancies.

The developer told the outlet he envisions an 80-acre mixed-use development that features 250 units of workforce housing, a waterpark and a youth sports complex in the mold of Ripken Baseball facility in Maryland.

Adler isn’t planning to fully gut the property, hoping to keep big-name tenants such as Sam’s Club and Walmart. But vacancies are spread throughout the mall, making it ripe for a conversion.

The site’s current zoning doesn’t allow for apartments, meaning Adler will need to either have the site rezoned or score a variance for the project.

Adler remains a big figure in Philadelphia real estate after swapping out a role at Lubert-Adler Real Estate Funds with leading Adler & Co. He’s also under contract to acquire the Plymouth Meeting Mall, which he wants to redevelop with 280 residential units, a multipurpose field, a pool and an ice-skating rink.

Adler also teamed with PMC Property Group to acquire 1500 Market Street in Center City, Philadelphia’s largest office property, which once belonged to Nightingale Properties’ Elie Schwartz. The partners plan to convert the property partially to apartments and a hotel.

Last month, David Simon — long-time leader of mall titan Simon Property Group — died at age 64, two years after being diagnosed with pancreatic cancer.

— Holden Walter-Warner