The Crossroads Mall Redevelopment: A Comprehensive Property Guide to Waterloo's Historic Transformation
- Jared Hottle
- Oct 7
- 5 min read
The Crossroads Mall in Waterloo, Iowa, stands at the threshold of a major transformation that will reshape one of the city's most prominent retail corridors. This comprehensive property guide explores the details of this significant redevelopment deal, purchase negotiations, and the ambitious plans that will breathe new life into this 57.5-acre site.
Historical Context: From Regional Hub to Redevelopment Opportunity
The Crossroads Mall opened in March 1970 as one of Iowa's first enclosed shopping centers and the state's first two-story mall. Located at the strategic intersection of Interstate 380 and U.S. Highway 20, the 847,099 square-foot mall served as a regional retail hub for decades Wikipedia.
However, like many American malls, Crossroads Mall faced significant challenges in recent years. All five anchor stores—Sears, Dillard's, Gordmans, Younkers, and At Home—have closed, leaving only Geno's Pizza as the final remaining tenant, scheduled to close on December 22, 2025 City of Waterloo.
The Purchase Deal: Key Players and Financial Structure
The Buyer: ATI Group and Waterloo Crossroads Development LLC
The redevelopment is being spearheaded by ATI Group of Ankeny, Iowa, operating through Waterloo Crossroads Development LLC. Led by BJ Stokesbary (CEO/COO), ATI Group brings significant experience in mall redevelopment, having previously transformed the Crossroads Mall in Fort Dodge, Iowa, into "Corridor Plaza" for approximately $3.3 million Messenger News.
Property Acquisition Details
The Crossroads Mall property was previously owned by multiple entities:
Namdar Realty Group (Great Neck, New York) - primary owner
Dillard's - owned their anchor space
Two additional smaller property holders
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 Business Record.
ATI Group completed the property acquisitions in phases:
September 5, 2025: Closed on six properties including Namdar parcels
September 12, 2025: Final closing on Dillard's space and remaining parcels
While the exact purchase price hasn't been disclosed publicly, the successful acquisition of all eight parcels totaling 57.5 acres positions ATI Group to move forward with their comprehensive redevelopment vision.
City Partnership and Financial Incentives
Tax Increment Financing (TIF) Package
The City of Waterloo has committed substantial financial support through a comprehensive TIF package:
Initial Agreement: $20 million commitment approved by City Council in November 2024
Enhanced Package: Increased to $28 million in September 2025 to cover additional project costs
Purpose: Reimburse ATI Group for acquisition, demolition, and infrastructure development costs
This represents one of the largest TIF packages in Waterloo's recent history, demonstrating the city's commitment to transforming this strategic location KWWL.
Economic Impact Considerations
The redevelopment addresses a significant economic challenge. Employment at the Crossroads Mall had declined dramatically from 2,549 jobs in 2001 to fewer than 15 jobs by 2024, highlighting the urgent need for revitalization.
Redevelopment Vision and Master Plan
Mixed-Use Development Concept
The redevelopment will transform the Crossroads Mall site into a mixed-use destination featuring:
Residential Components:
Multifamily residential units
Apartment complexes integrated with retail
Commercial Elements:
Retail power center along the northern boundary
Local and regional restaurant spaces
Coffee shops and entertainment venues
Potential Amenities:
Public park space (approximately 10,000 square feet planned)
Possible indoor skating rink
Medical facilities
Professional office spaces
Design Philosophy
BJ Stokesbary described the vision as potentially resembling "a smaller version of the District at Prairie Trail in Ankeny," which successfully combines retail, dining, and residential elements in a walkable environment Business Record.
The development will maintain flexibility to respond to market demands while creating a "town center feel" that serves as a regional destination.
Development Timeline and Construction Phases for Crossroads Mall
Phase 1: Preparation and Demolition (2025-2026)
December 22, 2025: Geno's Pizza closes, marking the end of the mall era
Late 2025/Early 2026: Asbestos survey and remediation
Spring 2026: Demolition begins
Summer/Fall 2026: Complete mall demolition expected
Phase 2: Infrastructure and Initial Construction (2026-2027)
Late 2026/Early 2027: Infrastructure installation begins
2027: First construction projects anticipated
Initial retail power center development along northern boundary
Phase 3: Full Development (2027-2030)
Phased construction of residential and commercial components
Integration with surrounding retail ecosystem
Strategic Location Advantages
The Crossroads Mall site offers several key advantages for redevelopment:
Transportation Access
Direct access to Interstate 380 and U.S. Highway 20
Central location within the Cedar Valley region
Existing public transit connections (MET Transit Routes 5 and 10)
Retail Ecosystem Integration
The site is surrounded by a thriving retail corridor including:
Super Target
Best Buy
Walmart
Barnes & Noble
12-screen movie theater complex
Regional Attractions Synergy
Proximity to major regional draws enhances the development's potential:
Lost Island Water Park and Theme Park
Hawkeye Community College
Established hotel and restaurant cluster
Market Analysis and Development Rationale
Addressing Retail Evolution
The Crossroads Mall redevelopment reflects broader trends in retail real estate, moving away from enclosed mall formats toward open-air, mixed-use developments that offer greater flexibility and community integration.
Regional Positioning
Mayor Quentin Hart emphasized the project's regional significance: "This is going to be the connecting point for recreation and retail in this entire region" Business Record.
The development aligns with Waterloo's 2030 Vision Plan, positioning the city as a regional destination and economic anchor.
Preservation and Sustainability Considerations
Selective Preservation
While the main mall structure will be demolished, the development plan includes:
Preservation of one outbuilding (former Pier One store) in good condition
Demolition of the former tire center building
Potential incorporation of sustainable design elements
Investment and Development Outlook
Market Opportunity
The Crossroads Mall redevelopment represents a significant opportunity in several key areas:
For Retailers: Access to a prime location with established traffic patterns and regional draw For Residents: New housing options in a well-connected, amenity-rich environmentFor Investors: Participation in a transformational project with strong municipal support
Economic Development Impact
The project is expected to serve as a catalyst for broader economic development in the corridor, potentially spurring additional investment and development in surrounding areas.
Conclusion: A New Chapter for Crossroads
The Crossroads Mall redevelopment represents more than just a real estate transaction—it's a comprehensive reimagining of how retail, residential, and community spaces can work together in the modern economy. With strong public-private partnership, experienced developers, and a strategic location, this project positions Waterloo for continued growth and regional leadership.
The transformation from a declining enclosed mall to a vibrant mixed-use destination reflects broader trends in American retail real estate while addressing specific community needs and market opportunities in the Cedar Valley region.
Key Takeaways for Property Professionals:
Mixed-use redevelopment of defunct retail spaces represents a growing market opportunity
Strong public-private partnerships can enable large-scale transformational projects
Strategic location and existing infrastructure provide significant advantages for redevelopment success
Flexible development approaches allow projects to adapt to changing market conditions
For more property guides and real estate insights in the Cedar Valley region, explore our comprehensive Property Guides section.
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