Nuclear submarine manufacturer General Dynamics Electric Boat announced Thursday that it is acquiring the majority of the largely vacant Crystal Mall in Waterford. 

The acquisition comes a few months after Electric Boat purchased the mall’s former Macy’s location. The company now owns most of the mall, with a former Sears location being the only exception. 

Speaking to reporters and a small crowd of community members outside the mall Thursday, Electric Boat President Mark Rayha said the property will be renovated, with groundbreaking expected in mid-2026.

Once complete, the company expects to move engineering, training, software development and other support staff into the building. Somewhere between 3,000 and 5,000 workers are expected to use the property, which is estimated to open in 2027. 

Submarine production, including that of Virginia-class and Columbia-class submarines, will continue at the company’s Groton facility, roughly five miles away from the mall.

Rayha said the mall acquisition will bring economic benefits to both Electric Boat and the Southeastern Connecticut region. “You build a mall in a location where you can track a lot of people from a lot of areas,” he said. “So doing this here is a great opportunity.”

Local officials echoed the sentiment, saying the company’s expansion would boost the region’s status as hub in the submarine supply chain. 

“We are repurposing a regional destination into a dynamic engine of opportunity again,“ said Waterford First Selectman Rob Brule. 

‘Malls… going the way of the dodo’

Officials hope the redevelopment will breathe new life into the mall property, which has been on a decline. When the Crystal Mall was listed for sale in 2023, the property was said to be 64% full. By September of this year, just around 25% of the mall was still in use, according to CT Insider.  

Keeping stores open has been a struggle for malls across the country, as the rise of online commerce reduced foot traffic and sales. As a result, malls have become popular sites for redevelopment projects, both in Connecticut and nationwide.

Many of these projects have involved transforming properties into public gathering spaces, mixed-use developments, entertainment hubs or housing. The Electric Boat acquisition is different, instead revamping the large property for use by a single company — specifically, a manufacturer.

Still, state officials said the move, which comes as Electric Boat continues a streak of acquisition and expansion in Southeastern Connecticut, is a smart one. 

“Malls across the state and across the country are falling a little out of favor. They’re going the way of the dodo,” said Gov. Ned Lamont. “And you’ve got to figure out how you repurpose and make sense of this. This will be hundreds of thousands of square feet of space to make sure that our submarine fleet stays the very best in the world.”

Electric Boat has grown significantly over the past few years, and the company’s rapid expansion has spurred calls for more parking and housing space in the areas near its Groton production facility, which has brought on thousands of new workers.

That hiring shows little sign of slowing down. Rayha said the company is expected to hire close to 500 workers before the end of 2025 with an additional 2,000 hires expected in 2026. When the Crystal Mall facility does come online, it will house both current workers and new employees.

The mall, officials and company leaders said, is the perfect place to support that growth.

“The demand and the need for more space, more parking — which, again, is also a big issue in Groton — fits perfectly with the Crystal Mall as a solution,” said U.S. Rep. Joe Courtney, D-2nd District. “It really just solves so many problems for what is going to be a huge era in terms of the industrial base growth.” 

For thriving shops, ‘a real kick in the gut’

Converting a mall to a large defense industrial facility requires some creative thinking. Electric Boat leaders said they expect standalone restaurants near the mall to continue operating with little change. And the mall’s exterior will largely be maintained, according to Rayha. 

“If you work at Electric Boat and this has been your mall for a number of years, you’ll be able to notice the uniqueness of the mall even when you’re working in it as an engineer,” Rayha said. 

But other details are less clear. There are still open stores in Crystal Mall, which raised questions about exactly what will happen to those businesses when Electric Boat begins renovations next year. 

Aed Powell, a manager at Toy Vault, a collectibles and toy store that has operated out of the mall for more than a decade, said he wondered what might become of his store and other mall tenants. Powell has managed the Crystal Mall location since late spring. On Thursday, he told reporters that while officials framed the mall as in dire need of help, his store is performing well.

“I have staff who love to be here. I have staff who love to work here, who are excited to come in day after day,” he said in an interview after the morning press conference. 

Powell has had little time to process the announcement, only finding out Wednesday evening. The news of the acquisition was hard to swallow in the moment. “It’s a real kick in the gut,” he said, noting that the defense contractor’s expansion shouldn’t come at the expense of other local workers. 

For now, Powell expects his store to remain open until he is told otherwise. After the press conference, city officials and business groups passed him their cards, hoping to connect and offer assistance.

With the redevelopment project still taking shape, local officials said the change will be a net positive to the area. 

“For decades, the Crystal Mall served as a hub of commerce and connection,” Brule said. “Now, through this remarkable redevelopment, it will once again serve the region, this time as a center for innovation, skilled jobs and continued economic growth.”