Reserve Development, a developer from Dallas, purchased the property for $8.4 million at the end of January.

Jeff Strong, managing partner of Reserve Development, said they plan to invest $10 million into the property. The goal is to open the facility in either March or April of 2026.

Work on the property will begin with utilities. When extremely freezing temperatures hit Marshalltown on Jan. 20, a water main in the parking lot burst. Strong said they brought in a contractor and discovered a bad connection was the source of the leak.

The freezing water problems did not end there. Mama DiGrado’s, Plaza 9 Fridley Theater and the Iowa Department of Transportation Driver’s License Station lost water for a few days. Reserve had to fix broken water pipes in the building, which occurred because heat was shut off in certain areas.

When Strong said they were touring and learning about the mall, they also became aware of the larger water bill. That is due to a water leak in the back of the property, behind Hobby Lobby.

“It’s been there for a year or more. We are going to dig it up and repair it,” he said.

Strong said they should have no problem in restoring electricity. The previous mall owner, Marshalltown Development Group, a holding company of Kohan Retail Investment Group, did not pay the substantial electricity bill, and power was shut off in the common areas of the building in November 2023. Fortunately, Strong said they had discussions with Alliant and learned unpaid bills follow owners, not properties.

Reserve intends to update and fix the Marshalltown Mall exterior, including a new roof and facades.

Previously, Strong said the facility will become a “power center,” rather than a mall. Work will be done to create big space for big box tenants. He added that they are speaking to familiar players, and every single space is spoken for. Letters of intent will be sent to one regional and six major national retailers. Strong said a family entertainment business is interested in the space JCPenney occupied.

“That will be a great addition if we can get it here,” Strong said. “The entire mall will be transformed with little space left.”

Of the current tenants, Hobby Lobby, Planet Fitness, Fridley Plaza 9 Theatre and Shoe Sensation will all remain. The plan is to give the theater a new look and new chairs. U.S. Cellular will be moved to the end of the building and Strong hopes to move the Iowa Department of Transportation Driver’s License Station. Mama DiGrado’s will find a new location.