The site of the tired looking, nearly vacant Crossroads Mall in Waterloo will be redeveloped into a mixed-use district that features residential, retail, restaurants and other amenities, the developer behind the project said.

The 800,000 square-foot mall now sits vacant, with the exception of Geno’s Pizza, after anchor stores began pulling out several years before the onset of the COVID-19 pandemic. By 2023, no anchor stores were left.

Now, the mall, and the 57½-acre site on which it sits, is falling into disrepair. The parking lot has deteriorated with weeds and plants growing up from cracks in the pavement.

The city entered into an agreement with ATI Group of Ankeny in November 2024 to redevelop the site, which will lead to the demolition of the mall and parking lot to clear the way for the construction of multifamily residential, retail and restaurant space, said BJ Stokesbary, CEO of ATI Group.

The mall property was previously owned by four entities, including real estate investment and management company Namdar Realty Group, which operates under different names in its ownership of the mall, and Dillards. It encompasses a total of eight parcels.

According to property tax records, all parcels and buildings have a combined assessed value of nearly $10 million, down from about $13 million in 2022.

Stokesbary said ATI closed on the Namdar parcels and another parcel last Friday. It plans to close on the Dillards space and another parcel this Friday.

“Waterloo has a lot going for it,” Stokesbary said. “What we get to do is to be really strategic with them and look at the market, where does everyone want to go and then working with the city to say ‘Do we create that town center feel downtown or do we want to create it out here [at the mall site]?’ We’re working on quite a bit of planning with local leadership and economic development folks [to] see what we’re going to target, but we’re also going to listen to the market and what does the market want.

“We’re not 100% locked in on what we’re going to do, we have quite a bit of flexibility because we have so much space and it’s great real estate,” Stokesbary said. “We’re working hand-in-hand with the city to determine what we want the vision to look like.”

He said that despite the condition of the mall, it sits in the middle of an otherwise vibrant retail and commercial district, and the plan is to continue the momentum that is already underway in the area.

The site could be developed into a smaller version of the District at Prairie Trail in Ankeny, with a mix of local and regional stores and coffee shops and maybe a park space with apartments, Stokesbary said.

“Retailers want to be there, it’s just finding the space where they can be successful,” he said.

Mayor Quentin Hart said the city is allocating $28 million in a Tax Increment Finance package to support the redevelopment of the mall property.

Hart, who is 54, said he has fond memories of spending time at the mall growing up, walking through its corridors, visiting stores and eating at the food court.

He said the city is excited to partner with ATI to revitalize the site into a destination that will draw people from throughout the region. Its proximity to major highways and other regional attractions, such as the Lost Island Water Park and Theme Park, Hawkeye Community College, and restaurants and hotels make it a prime location for redevelopment, Hart said.

“It’s a game changer for us,” he said. “This redevelopment is going to reactivate that corridor.”

The goal, Hart said, is to elevate retail and recreation in an area that will be walkable and accessible for visitors.

“This is going to be the connecting point for recreation and retail in this entire region,” he said.

Redeveloping the mall site is part of the city’s 2030 Vision Plan.

The redeveloped site could include park space and possibly an indoor skating rink, Hart said.

“If there’s a possibility to take a look at recreational amenities that complement the theme park and water park in that growing area, it would be exciting to tie all those pieces together,” he said. “It’s going to be an economic anchor and fit well with our strategic plan and with all the other amenities in and around the area.”

Hart said he anticipates that the first phases of construction on the site could begin in 2027.

When it’s done, Hart said the redeveloped mall site will create “tremendous opportunity to shape the future and become that destination driver that we’re trying to become.”

According to Stokesbary, ATI, which also redeveloped the Crossroads Mall in Fort Dodge, will conduct an asbestos survey through the end of the year, when Geno’s Pizza’s lease expires. Once the restaurant closes, asbestos mitigation will begin. Demolition on the mall could start as soon as early 2026, he said.

One outbuilding on the site, which used to house a Pier One store, is in good enough shape that it will be preserved. Another outbuilding which was a tire center will be demolished, Stokesbary said.

“Right now it’s very tired looking, and there’s a lot of people in that region, there’s a lot of retailers, national, regional, local, restaurants, who want to be out there, they just don’t want to be at the mall,” he said. “I think it’s a great opportunity to take what’s really great real estate that’s being very underutilized, tear down the mall and bring new life back to it.”