A prominent New York developer is moving forward with plans to redevelop the long-struggling Franklin Mall in Northeast Philadelphia into a mixed-use destination with housing, a youth sports complex, and entertainment venues.

Dean Adler, founder of Area Real Estate Partners, announced on April 13 that he is under contract to purchase the 1.6-million-square-foot mall, formerly known as Philadelphia Mills and Franklin Mills. The roughly $100 million project will include around 250 units of workforce housing, a youth sports complex, and a waterpark, while keeping major big-box stores like Walmart and Sam’s Club

From Mega-Mall Success to Retail Decline Amid Shifting Consumer Habits

The mall opened in 1989 as one of the country’s first “mega-malls” and once attracted millions of shoppers annually. However, like many malls nationwide, it has suffered from the rise of online shopping, changing consumer habits, and competition from newer retail centers. In recent years, several major tenants have left, leaving large vacant spaces and turning the property into a symbol of retail decline in the region.

Adler’s plan marks the latest example of a dying mall being transformed into a vibrant mixed-use community, a trend gaining momentum across the country.

The proposed redevelopment also aims to capitalize on the mall’s prime location near Interstate 95 and the Northeast Philadelphia Airport. Adler plans to create a more walkable, community-oriented environment by introducing public gathering spaces and improving connectivity between retail, residential, and entertainment components. This approach reflects a growing industry shift toward “experiential retail,” combining shopping with entertainment and lifestyle offerings rather than relying solely on traditional anchor stores.

The project will create hundreds of construction jobs and bring new economic activity to Northeast Philadelphia. The developers have not yet announced a construction start date.

This latest mall-to-mixed-use play in Philadelphia isn’t the only big transformation happening right now. Dean Adler’s $100 million plan for Franklin Mall echoes what’s underway at the Westminster Mall in California, where developers are replacing another struggling retail giant with thousands of new homes, retail, and open space. Both projects show how dead malls across the country are getting a second life as vibrant, walkable neighborhoods.

Factsheet: Franklin Mall Redevelopment

• Location: Northeast Philadelphia, Pennsylvania (near I-95)
• Size: 1.6 million square feet
• Developer: Dean Adler – Area Real Estate Partners
• Project Cost: Approximately $100 million

Key Components:

• 250 units of workforce housing
• Youth sports complex
• Waterpark
• Retention of major retailers (Walmart, Sam’s Club)

Announcement Date: April 13, 2026

Current Status: Developer is under contract to purchase the property

Background: Opened in 1989 as a mega-mall, has struggled for years due to declining foot traffic

Significance: One of the most ambitious mall-to-mixed-use conversions announced this week