Tiny town takes on ‘zombie mall’ in disarray following slew of closures – Macy’s is one of last tenants left

Tiny town takes on ‘zombie mall’ in disarray following slew of closures – Macy’s is one of last tenants left

In a David-versus-Goliath scenario, a determined small town is locked in a battle to resurrect a sprawling shopping center, once a vibrant hub of commerce, now sadly nicknamed a "zombie mall." The fight centers on holding the mall's owners accountable for years of alleged neglect, a decay that residents believe has been driven by prioritizing profit over community well-being.

These "zombie malls," also known as ghost malls, are an increasingly common sight across the American landscape. They're characterized by eerily low customer traffic, a sea of vacant storefronts, and a palpable sense of decline. Reduced maintenance, peeling paint, and an overall lack of investment contribute to a feeling that these spaces have been abandoned, left to slowly fade away.

At the heart of this particular struggle is the Galleria at Pittsburgh Mills, a nearly 1 million-square-foot mall in Frazer Township, Pennsylvania. Opened just two decades ago with high hopes, the mall has experienced a precipitous decline in recent years, becoming a stark symbol of economic hardship and corporate negligence.

The frustration of local residents is palpable, so much so that they've created an online community, aptly named "Pittsburgh Mills Mess!" where they share their grievances and document the mall's deterioration. This online forum serves as a virtual town square, a place for neighbors to connect, share information, and collectively voice their concerns about the declining state of their community's once-proud centerpiece.

Alamy Live News. 2B789TT Birmingham, West Midlands UK. 14h March 2020. Many shoppers stayed away from the Bullring Mall in an almost empty Birmingham City Centre as the majority of shoppers stayed at home to shop online to try and prevent themselves being infected with COVID-19. Typically thousands of people pack the streets of Birmingham on a weekend, but many shops were as empty as the streets themselves with the Bullring Shopping Centre being unusually quiet. Sam Holiday/Alamy Live News This is an Alamy Live News image and may not be part of your current Alamy deal . If you are unsure, please contact our sales team to check.

The mall's ownership history tells a story of financial maneuvering. After foreclosure in 2015, the property was acquired in 2018 by Namdar Realty Group for a mere $11 million. While the purchase offered a glimmer of hope for revitalization, residents allege that Namdar's actions have only exacerbated the mall's decline.

Today, the Galleria at Pittsburgh Mills bears little resemblance to its former glory. Of its more than 150 storefronts, a mere dozen are occupied. The once-bustling corridors are now eerily quiet, echoing with the ghosts of businesses past. The parking lot, once filled with shoppers, is now notorious for its massive potholes, some reportedly measuring nine feet wide and nine inches deep.

Stepping inside the mall is an experience that many describe as unsettling. Shoppers are confronted with a litany of disrepair: peeling paint, crumbling walls, buckets strategically placed to catch leaks from the roof, and flickering lights that cast an unsettling glow. Even the presence of old rat traps serves as a grim reminder of the mall's state of decay.

Building inspector Bill Payne, a key figure in the fight for the mall's revival, expressed his frustration to the Wall Street Journal, noting that the individual problems could have been easily fixed when they were minor. However, due to years of neglect, the cumulative cost of repairs has become exorbitant, creating a seemingly insurmountable obstacle.

Car tire in a large pothole filled with muddy water.

The neglect extends beyond the mall's interior. Outside, the grass is overgrown, the sidewalks are cracked, and the "Pittsburgh Mills" sign, a once-proud symbol of the community, now reads "u gh Mills" due to burned-out lights. These details, while seemingly small, paint a larger picture of neglect and disregard.

In a determined effort to hold Namdar accountable, building inspector Payne posted 73 pages of code violations across a glass storefront in April. This bold action served as a public statement, a clear message that the community was no longer willing to tolerate the mall's continued decline.

Namdar Realty Group's business model, which involves acquiring struggling malls across the country, has come under scrutiny. Critics allege that the company profits by selling portions of parking lots, challenging property-tax bills, and drastically reducing maintenance expenses, effectively squeezing value from dying properties.

While Namdar has initiated some pothole repairs at the Pittsburgh Mills shopping center, according to Chief Operating Officer Dan Dilmanian, and expressed openness to selling the property or attracting new tenants, many remain skeptical. The company's actions have angered communities in several states, who feel that their towns have been left with eyesores and diminished tax revenue.

Pittsburgh Mills mall sign at night, listing remaining tenants.

The rise of zombie malls is a complex phenomenon, driven by a combination of factors. The shift towards online shopping, which accelerated dramatically with the rise of platforms like Amazon and eBay, has undoubtedly played a significant role. The pandemic in 2020 further exacerbated the problem, as traditional anchor department stores struggled and consumers increasingly turned to online retailers.

Dominick Miserandino, CEO of Retail Tech Media Nexus, points out that zombie malls are more than just a retail story; they're a cultural one. The shift to online shopping has fundamentally altered consumer behavior, rendering the old model of endless, generic stores obsolete.

However, the future of malls is not entirely bleak. Some high-tier malls are thriving by reinventing themselves as entertainment destinations. These successful malls offer experiences that go beyond traditional shopping, incorporating attractions like roller coasters and immersive entertainment.

Many communities are taking legal action to force companies like Namdar to adhere to local building codes or face hefty fines. Tiny Frazer Township, with its 1,100 residents, sued Namdar for allegedly failing to maintain eight roads owned by the company.

Poorly maintained road in front of a shopping center sign listing Lowe's, Mattress Warehouse, PetSmart, Ollie's, Ross Dress for Less, Famous Footwear, and Fine Wine & Spirits.

Building inspector Payne's meticulous inspections have been instrumental in holding Namdar accountable. His efforts led to a magistrate judge initially issuing a $1.8 million fine against the company, which later increased to approximately $12 million following an appeal.

The "deplorable" road conditions have even impacted emergency services, slowing response times and damaging vehicles. This has led to a misdemeanor nuisance charge against Namdar, highlighting the real-world consequences of the company's alleged negligence.

Businesses near the Galleria at Pittsburgh Mills have also taken legal action, filing a federal lawsuit against Namdar and seeking $5 million in damages for lost business and repairs caused by the hazardous roads.

During a court hearing, Payne presented extensive evidence of maintenance issues, documenting every crack in the sidewalk and spot of rust on a door. Namdar's attorney, James Berent, argued that the company wanted to fix the roads but faced delays due to ongoing litigation and disagreements over the repair methods.

The struggle to revive the Galleria at Pittsburgh Mills reflects a larger trend in America, where communities are grappling with the decline of traditional retail spaces and seeking ways to repurpose or revitalize these once-vibrant hubs.

The story of the Galleria at Pittsburgh Mills serves as a cautionary tale about the consequences of neglect and the importance of holding corporations accountable for their impact on local communities. It also underscores the resilience of small towns and the determination of residents to fight for the future of their communities.