The Marketplace at Steamtown

The Marketplace at Steamtown is a shopping and mixed-use center in downtown Scranton, Pennsylvania. The property occupies part of a former Delaware, Lackawanna and Western Railroad yard that had been abandoned by Conrail in the late 1970s. Its development was conceived during the 1980s as a major downtown-revitalization project for Scranton, a city whose central business district had experienced significant decline and social problems. The project was promoted with support from Pennsylvania Governor Robert P. Casey Sr. and developed by Boscov's Department Stores and Shopco Advisory Corp. through the entity Scranton Mall Associates. Construction required the removal of several existing buildings, including the implosion of five structures on April 5, 1992. The approximately $90 million project opened in 1993 as The Mall at Steamtown. Its opening received national television coverage on CNN and was attended by Governor Casey. The center was designed as a two-level enclosed mall on Lackawanna Avenue, with a long parking structure between its department-store anchors and a second-floor food court overlooking Steamtown National Historic Site. A pedestrian bridge connects the food-court area with the historic site, linking the shopping center to one of Scranton's principal tourism attractions. Boscov's has been the property's most durable anchor and remains closely associated with the center. The Bon-Ton relocated into the mall in 2000, but left after its lease expired on January 31, 2014. The property subsequently experienced a severe occupancy and financial crisis. A $40.5 million mortgage matured in July 2013, and the mall entered foreclosure in March 2014. Contemporary accounts attributed the difficulties to debt, declining rental income, competition from The Shoppes at Montage and Viewmont Mall, and the broader pressure exerted by online commerce. At the time of foreclosure, the mall was reported to be approximately 65 percent occupied, with vacancy later reaching roughly 75 percent as additional retailers and entertainment tenants departed. The property was sold at a 2014 sheriff's sale to LNR Partners for a nominal bid after the reserve price was not met. Zamias Services subsequently assumed management. A later online auction in 2015 resulted in a winning bid of $5.25 million. John Basalyga ultimately acquired the property for $5,512,500 including the buyer's premium, financed in part by a $4.2 million mortgage from First National Community Bank of Dunmore. The property operated through Steamtown 300 LLC. In May 2016, Basalyga announced the rebranding from The Mall at Steamtown to The Marketplace at Steamtown. The repositioning sought to move the property beyond conventional enclosed-mall retail by introducing educational, medical, fitness, entertainment, food, and local-vendor uses. Announced or developed initiatives included a Luzerne County Community College satellite campus, a cinema, an indoor playground, and a public market. The Scranton Public Market opened in late 2017 with regional food businesses, eateries, and craft sellers. Other notable occupants and uses have included Delta Medix, Crunch Fitness, and community-oriented services. The property has also benefited from repeated appearances on the NBC sitcom The Office, which is set in Scranton. Its present identity is therefore a downtown marketplace and mixed-use community destination rather than solely a traditional department-store mall.

The Marketplace at Steamtown began as a downtown-revitalization proposal for Scranton during the 1980s. The development was organized in part by Al Boscov, whose department-store business was unable to move into Crown American malls after Crown American acquired Hess's. Boscov's Department Stores and Shopco Advisory Corp. formed Scranton Mall Associates to develop the project. The site used approximately half of a former Delaware, Lackawanna and Western Railroad yard that had been abandoned by Conrail in the late 1970s. The project required the demolition of numerous buildings in an area previously associated with drugs and prostitution. Five buildings were imploded on April 5, 1992, and construction ultimately cost approximately $90 million. The completed mall opened in 1993 under the name The Mall at Steamtown. The opening was nationally televised on CNN and attended by Pennsylvania Governor Robert P. Casey Sr., who had played an important role in securing support and funding for the development. The center was built on Lackawanna Avenue in the heart of downtown Scranton. It contains two retail levels, a food court on the upper floor, and a pedestrian connection to Steamtown National Historic Site. Its parking infrastructure includes a garage extending between the Boscov's building and the area occupied by the former Bon-Ton and Montgomery Ward spaces. The mall later became recognizable to a national audience through several appearances on the NBC sitcom The Office, whose fictional setting is Scranton. The Bon-Ton moved from the Keyser Oak Shopping Center into the mall in 2000. In 2003, Steamtown Mall Partners replaced Scranton Mall Associates as property manager. The mall's ownership and management later faced opposition to the development of The Shoppes at Montage, but the challenge was unsuccessful in court. A major decline began in the early 2010s. The Bon-Ton left when its lease expired on January 31, 2014. Other departures included American Eagle Outfitters, ATOS Chicken & Waffles, As Seen on TV, Cinnabon/Carvel, Steamtown Pub and Grill, Express, Abercrombie & Fitch, Hollister, Lids, Nathan's Hot Dogs, The Bodywork Store, and f.y.e. The Steamtown 8 Cinemas also closed after operator Marquee Cinemas declined to renew its lease, citing the inability to finance conversion to digital projection equipment. A portion of the parking deck was closed in 2014 because of deterioration, with repairs estimated at approximately $10 million. The financial crisis centered on a $40.5 million mortgage that matured on July 11, 2013. The owners could not satisfy the obligation, and foreclosure began on March 7, 2014. Low rental income, debt, competition from nearby shopping centers, and online retail were cited as contributing factors. At the time, occupancy was approximately 65 percent and later fell to about 25 percent. Public financing also complicated the situation: Scranton had guaranteed loans connected to the development, while accounting and repayment issues affected federal HUD-related funding. Al Boscov provided more than $715,000 through Boscov's Department Stores toward a missed city loan payment. The July 15, 2014 sheriff's sale had a reserve price of approximately $37.3 million, but that price was not reached. LNR Partners acquired the property for $1,567.71 plus costs and taxes. A competing bid connected to Robert Bolus was rejected because it depended on approval of a casino license. Boscov did not bid, citing the high requested price, although the company continued operating and renovating its store. Zamias Services took over management after the sale. LNR Partners later offered the property through an online auction. The auction was delayed and its starting price reduced to encourage participation. Boscov's considered bidding but retained lease-related veto rights over major changes, and Al Boscov opposed proposals to convert the center into a farmers' market. The eventual winning bid was $5.25 million. John Basalyga completed the acquisition for $5,512,500 including the buyer's premium, with a $4.2 million mortgage from First National Community Bank of Dunmore. The property operated through Steamtown 300 LLC. In May 2016, Basalyga announced the new Marketplace at Steamtown name and a strategy focused on mixed uses. Plans included a Luzerne County Community College satellite campus, a cinema, a large indoor playground, and space for local vendors. The Scranton Public Market opened in late 2017 and added regional food and craft businesses. The center's continuing identity combines Boscov's department-store retail with medical, educational, fitness, food, entertainment, and local-market uses.

• 2017

  Scranton Public Market opens

  [1]The Marketplace at Steamtownen.wikipedia.org

  A local-vendor market opens with regional food businesses and craft sellers.

• 2016

  Rebranding as The Marketplace at Steamtown

  [1]The Marketplace at Steamtownen.wikipedia.org

  The property adopts its current name while announcing a shift toward mixed-use and community-oriented programming.

• 2015

  John Basalyga acquires the property

  [1]The Marketplace at Steamtownen.wikipedia.org

  A subsequent auction leads to Basalyga's acquisition through Steamtown 300 LLC.

• 2014

  Foreclosure and sheriff's sale

  [1]The Marketplace at Steamtownen.wikipedia.org

  The property enters foreclosure and is later acquired by LNR Partners after the reserve price is not met at the sheriff's sale.

• 2003

  Steamtown Mall Partners assumes management

  [1]The Marketplace at Steamtownen.wikipedia.org

  Steamtown Mall Partners replaces Scranton Mall Associates as manager.

• 2000

  The Bon-Ton relocates into the mall

  [1]The Marketplace at Steamtownen.wikipedia.org

  The Bon-Ton moves from the Keyser Oak Shopping Center and becomes one of the mall's principal anchors.

• 1993

  The Mall at Steamtown opens

  [1]The Marketplace at Steamtownen.wikipedia.org

  The downtown Scranton mall opens after a development project conceived during the 1980s and costing approximately $90 million.

A downtown Scranton shopping and mixed-use destination that combines department-store retail, specialty shopping, food, local vendors, education, health services, fitness, and entertainment. Following its 2016 rebrand, the property has emphasized community and adaptive-reuse functions alongside conventional mall operations.

• Department store · 1993

  Boscov's

  Boscov's is the property's principal long-term department-store anchor and one of the few original major occupants associated with the center. It sells a broad range of apparel, accessories, home goods, beauty products, seasonal merchandise, and other department-store categories. During the foreclosure period, the Boscov's location continued operating and was reported to be among the chain's stronger stores by sales.

• Food hall and local-vendor marketplace · 2017

  Scranton Public Market

  The Scranton Public Market broadens the property's offer beyond conventional chain retail. It provides space for regional eateries, food vendors, craft sellers, and other local businesses, reinforcing the 2016 repositioning toward a community marketplace and destination for locally rooted commerce.

• Food service · 1993

  Food court

  The second-floor food-court area is a core architectural and visitor feature of the center. It overlooks Steamtown National Historic Site and connects to the site through a pedestrian bridge, giving the mall a tourism-oriented public space in addition to its restaurant and quick-service food functions.

• Education · 2016

  Luzerne County Community College satellite campus

  The satellite campus represents the property's post-rebranding transition toward mixed use. Its presence adds an educational function to the former retail environment and supports the center's role as a downtown community facility rather than a purely shopping-focused mall.

• Medical services

  Delta Medix

  Delta Medix is one of the notable non-retail occupants associated with the Marketplace. Its medical-service use illustrates the property's effort to fill former retail space with service-oriented tenants that can generate regular community visits independently of department-store shopping.

• Fitness

  Crunch Fitness

  Crunch Fitness is a fitness-center occupant associated with the Marketplace's mixed-use tenant base. Fitness uses provide recurring visits and complement the center's retail, food, educational, and medical offerings.

• 2016Marketplace repositioning and rebrand

  Scranton · Northeastern Pennsylvania

  The owner announced a new name and presented the property as a broader marketplace, with prospective educational, entertainment, food, and local-business uses intended to reduce dependence on traditional mall retail.

  Outcome. The rebrand was followed by the opening of the Scranton Public Market and the continued use of the property by community, medical, fitness, and educational tenants.

  Source

• 2016

  Shift from enclosed mall to mixed-use marketplaceStrategy

  Background

  The property had suffered anchor departures, high vacancy, declining conventional retail demand, and deferred infrastructure needs.

  Action taken

  The owner changed the name to The Marketplace at Steamtown and announced educational, entertainment, food, local-vendor, and community uses.

  Aftermath

  The Scranton Public Market opened in 2017, while medical, fitness, and educational occupants became part of the center's operating model.

  Source

• 2015

  Property sold through a post-foreclosure auctionM&A

  Background

  LNR Partners marketed the distressed property after the 2014 sheriff's sale, amid concerns about vacancies and deferred parking-garage repairs.

  Action taken

  John Basalyga acquired the property for $5,512,500 including the buyer's premium through Steamtown 300 LLC.

  Aftermath

  Basalyga retained the shopping-center use and pursued a mixed-use repositioning rather than immediately converting the site to another use.

  Acquisition price. $5.25 million winning auction bid → $5,512,500 including five percent buyer's premium (2015 auction and completed acquisition)

  Source

• 2014

  Foreclosure proceedings beginOther

  Background

  A $40.5 million mortgage matured in July 2013 while occupancy and rental income were under pressure.

  Action taken

  The property entered foreclosure in March 2014 and was subsequently offered at a sheriff's sale.

  Aftermath

  LNR Partners acquired the mall at the sheriff's sale, and management later shifted to Zamias Services.

  Mortgage principal. $40.5 million mortgage (Mortgage maturity on July 11, 2013; foreclosure beginning March 7, 2014)

  Source

1. 1The Marketplace at Steamtownen.wikipedia.org
2. 2The Marketplace at Steamtown official websitethemarketplaceatsteamtown.com