Read time: 12 min.

Daleville, Indiana, isn’t exactly the first place you’d expect to find a booming retail environment. In the 1990s, though, the quiet town suddenly found itself at the heart of an outlet mall frenzy! With bargain shopping at its peak, developers saw Daleville as the perfect spot for a factory outlet center that promised jobs, visitors, and a new era of growth. The mall worked for a while, but trends shifted. Instead of fading away, the site took on a second life- one that few could have predicted.

Daleville has spent most of its history as a quiet little place. The town owes its existence to Campbell Dale, who arrived in the area in 1827¹. A village bearing Dale’s name was platted eleven years later². Progress came at a leisurely pace until the railroad came through, but things really picked up when Daleville became Delaware County’s southern gateway to I-69.

Beyond a couple of historic buildings in its old downtown, much of Daleville’s modern identity revolves around the interstate’s Exit 234. It transformed the tiny community! In 1993, the town became the focus of a high-stakes race when three developers set their sights on building the region’s first outlet mall along a twenty-five-mile stretch of the highway. 

A Kentucky firm hoped to place an outlet mall along the White River in downtown Anderson, while an Indiana company aimed for a location in Hamilton County. Meanwhile, a Maryland developer had its eye on Daleville³. All told, the Baltimore-based Prime Retail, Inc. emerged victorious: in May 1993, the company announced plans for a 120-store factory development at the southeast corner of I-69 and State Road 67⁴. 

Factory outlet malls were booming in the 1990s. When Daleville landed one, local officials could hardly believe their luck. “It’s almost like hitting the lottery⁵,” exclaimed the town council president! Filled with stores selling directly to the public, the shopping centers promised deals and steals. By offering overstock, closeouts, returns, and factory seconds⁶, outlet malls could slash prices to draw in eager shoppers looking for name-brand bargains.

Prime Retail’s outlet mall in Daleville wasn’t just big- it was ambitious, particularly for a place like rural Delaware County. Designed as an “incredibly upscale⁷” village-style power center, it was planned to feature covered walkways, fountains, playgrounds, a food court, and even a mini golf course. Rumors swirled that a Marriott Residence Inn might even rise across the road⁸! 

Believe you me, a Marriott in Daleville would have been unheard of. Beyond its high-end appeal, though, the mall promised a major economic impact. Prime Retail projected 500 full-time equivalent jobs with a payroll exceeding $10 million. Officials estimated that 75% of shoppers would come from outside Delaware County, fueling $100 million in annual sales⁹.

In August 1993, town officials joined the staff of the Muncie-Delaware County Chamber of Commerce on a trip to West Lancaster, Ohio, to see what Daleville’s new mall might look like¹⁰. The group favored the outlet shops there, and construction on the Daleville development began in March 1994. It was completed the following November¹¹. 

The $40 million Indiana Factory Shops welcomed thirty-five retailers when it opened on November 18, 1994. Another twenty-five were expected to be added by spring. Eventually, the outlet mall hoped to grow to 400,000 square feet with a hundred storefronts! Officials anticipated each establishment to offer twenty-five to seventy-five percent off full retail prices¹². 

The first stores at Indiana Factory Shops included Aileen, Bali, Big Dogs, Book Warehouse, Bruce Allen Bags, Bugle Boy, BUM Equipment, Cape Isle Knitters, Claire’s, Etc., Factory Brand Shoes, Famous Brands Houseware, Farberware, Geoffrey Beene, Hanes, John Henry & Friends, Jones New York, and Leather Loft.

L’eggs, Nine West, Olga/Warner’s, Playtex, Prestige Fragrance, SAS, S&K Menswear, Springmaid Wamsutta, Sunglass Hut, Van Heusen, Welcome Home, and Westport Women rounded out the rest of the center’s offerings¹³.  As the cherry on top, the mall featured a 70-foot silo next to a barn-shaped food court¹⁴. 

In 1995, Indiana Factory Shops kept the momentum going by adding seven new stores and three food spots to its growing lineup. Shoppers saluted the arrival of Adolfo II, Carter’s, Casual Corner Woman, Genuine Kids, OshKosh B’Gosh, Petite Sophisticate, and Rack Room Shoes¹⁵. Meanwhile, the food court got a flavor boost with KFC, Panda Express, and Taco John’s¹⁶. By October, the outlet had surged to 51 stores and still had room for nine more!

Still, Prime Retail had even bigger plans and aimed for a 100,000-square-foot expansion the following spring. That vision wound up shrinking to about a quarter of its projected size, but its November 1996 opening still brought in big names like Polo Ralph Lauren, Paul Harris Stores, London Fog, and Vitamin World. Meanwhile, BUM Equipment and Aileen’s quietly shut their doors, which left the mall with fifty-three tenants and space for another handful in the new wing¹⁷. 

I still remember our trips to Indiana Factory Shops around that time. I was in kindergarten and first grade, and back-to-school shopping meant at least one visit to OshKosh for new outfits. My stepdad always preferred the Big Dog outlet, while my mom wandered through other stores as my brother and I climbed around the rides and slides of the outlet mall’s colorful, plastic playground. 

Still, I can’t recall going to the outlet mall much after 1998 or so. That year, Prime Retail struck a deal and traded Indiana Factory Shops to Horizon Group as part of a larger exchange involving twenty-two shopping centers. At the time, the move seemed promising: Horizon had a reputation for investing in growth, while Prime typically poured its resources into its larger properties¹⁸. For a while, the outlook was optimistic. 

Unfortunately, the story had changed by the year 2000. Foot traffic slowed, and the once-bustling outlet mall had lost twenty tenants¹⁹. By 2001, Indiana Factory Shops was down to thirty stores, including just one restaurant -Cinnamonster- in the food court. The energy that once made the place feel like a shopper’s paradise began to fade. What had once been a thriving retail hub faced an uncertain future.

At the time, economic experts saw one glaring issue: with Muncie Mall and Anderson’s Mounds Mall nearby, there were just too many stores fighting for the same customers! To make matters worse, traditional retail caught on to the outlet trend by rolling out more frequent sales and deep discounts²⁰. Suddenly, bargain hunters didn’t need to make a special trip to the outlet shops- they could find similar deals closer to home. As competition stiffened and shopping habits shifted, Indiana Factory Shops found itself struggling to stay relevant.

Big-name brands like Polo Ralph Lauren, G.H. Bass, Van Heusen, and OshKosh B’Gosh were still hanging on in 2002, but the outlet mall’s future looked bleak as experts continued to warn that it was simply too large for the market²¹. The following year, their concerns were starkly obvious- 100,000 square feet of Indiana Factory Shops sat empty, and leasing rates plummeted to just $6 per square foot²². 

With only twenty tenants left, the mall’s third owner -Horizon Group Properties- decided to cut its losses. Rather than trying to revive the struggling center, they bundled it with another faltering development in Somerset, Pennsylvania, and offloaded both for a mere $1.98 million²³. The sale price was a shadow of what the properties had once been worth. Two years later, the mall was sold again to SugarOak Properties of Virginia. 

SugarOak initially explored transforming Indiana Factory Shops into a sprawling residential development. Ultimately, it pivoted to a different vision: a business center. At the time, just nine retailers remained, including Polo Ralph Lauren and a NASCAR store called Racer’s Edge²⁴. In 2004, the struggling outlet center shed its old identity and reemerged as Heartland Crossings Business Center²⁵. The change marked the end of an era and the beginning of a new chapter in the site’s history.

In 2005, Sherry Laboratories kicked off a new era for the former outlet mall, signing a long-term lease for one of its five buildings. Not long after, First Merchants Bank made a bold move by purchasing another²⁶. Together, the two companies brought 300 employees to Daleville from Muncie²⁷, which breathed fresh life into the struggling site. In December, momentum continued as Boyce Forms Systems acquired buildings three and four, uniting three separate offices under one roof, complete with a brand-new atrium to tie it all together²⁸. 

The following year, the staffing agency Pro Resources consolidated its Muncie and Anderson offices and chose the revitalized business center as its new home. The move was another sign of the property’s transformation from a fading retail hub into a thriving business community, and officials proudly reported that the center was 80% leased²⁹. It was a remarkable turnaround for a hot site that had long since gone cold.

As businesses continued to move in, Heartland solidified its place as a key player in Delaware County’s commercial landscape. In 2011, tech giant IBM expanded into one of Heartland’s few remaining spaces. The new location was expected to bring up to 150 jobs to the area once home to Cinnamonster, KFC, and Panda Express! Unfortunately, progress came at a cost: as part of the deal, Indiana Factory Shops’ familiar silo was removed³⁰. The transaction erased one of the last physical reminders of the property’s retail history. 

Silo or not, I had more reason to visit Heartland as an adult than I ever did Indiana Factory Shops as a kid thanks to a restaurant called Good on the Inside. It quickly became my go-to lunch spot when I worked down the road! The Old Blue was a winner, but the restaurant’s real star was the Crusty burger. As I remember it, they grilled the patty with a massive handful of shredded cheddar around the edges, forming a crispy, golden halo. Fried up flat, it was pure perfection. I wish I’d thought to take a photo! 

It’s hard to believe more than three decades have passed since Indiana Factory Shops first opened its doors. The silo is gone, the stores have vanished, and even the playground where my brother and I once favored has been relocated to Daleville Elementary³¹. Still, the site has been a success story for more than twenty years. Companies like Boyce Systems, Element Materials Technology, First Merchants Bank, Indiana Finance Company, and Lighthouse Autism Center now call the thriving business center home. Their presence proves that while the past may fade, the space still has a purpose.

Like Indiana Factory Shops, Daleville has continually transformed. Once a quiet town, it was reshaped by the interstate, then the rise and fall of its outlet mall, and finally, the arrival of Heartland Business Center. Today, the place remains a vital part of the area’s economy and proves that retail establishments – just like towns- adapt over time. While its era as a shopping destination has ended, Daleville’s role as a commercial hub has ensured that Exit 234 remains a gateway to business.

Sources Cited
1 Kemper, G. W. H. (1908). Education in Delaware County. In A Twentieth Century History of Delaware County, Indiana, Volume 1. book, Lewis Publishing Company.
2 Lasley, N. (2012). Delaware County. Arcadia Publishing [Mount Pleasant]. Book. 
3 Francisco, B. (1993, May 18). Who’s first? The Muncie Star. p. 17. 
4 Slabaugh, S. (1993, May 23). ‘We’re probably the envy of every city around us’. The Muncie Star. p. 39.
5 Walker, D. (1993, July 13). Zoning variances approved for outlet mall at Daleville. The Muncie Evening Press. p. 2. 
6 Blanding, M. (2014, September 29). Why Do Outlet Stores Exist? Working Knowledge. Web. Retriebed March 31, 2025. 
7 (See footnote 6). 
8 Slabaugh, S. (1993, May 23). ‘We’re probably the envy of every city around us’. The Muncie Star. p. 39. 
9 New factory outlet mall unveiled (1993, June 21). The Muncie Evening Press. p. 29. 
10 Report to the Community (1993, August 16). The Muncie Evening Press. p. 27. 
11 Construction to begin in spring on Daleville factory-outlet mall (1993, October 16). The Muncie Star. p. 1. 
12 Brown, D. (1994, October 27). Daleville outlet mall planning Nov. 18 opening with 35 stores. The Muncie Star. p. 21. 
13 Penticuff, D. (1994, October 27). First outlet mall stores nearly ready to open. The Muncie Evening Press. p. 1. 
14 Penticuff, D. (1994, November 16). Mall opens Friday. The Muncie Evening Press. p. 1. 
15 Cheeseman, M. (1995, October 2). Managers say I-69 malls not hurting each other. The Muncie Star. p. 7. 
16 Marketplace Memos (1995, March 28). The Muncie Evening Press. p. 15. 
17 Francisco, B. (1996, November 13). Outlet mall will turn 2 with bang. The Muncie Star Press. p. 12. 
18 Francisco, B. (1998, August 13). Ownership switch helps Daleville. The Muncie Star Press. p. 12. 
19 McBride, M. (2000, July 9). Half Empty, Half Full. The Muncie Star Press. p. 39.
20 Slabaugh, S. (2001, August 8). Outlet mall a tough sell in slow times.  The Muncie Star Press. p. 19. 
21 Slabaugh, S. (2001, August 8). Viable leaders still anchor factory shops. The Muncie Star Press. p. 19. 
22 McBride, M. (2002, April 28). Daleville experiences a BUMP in the road. The Muncie Star Press. p. 41. 
23 Indiana Factory Shops sold (2003, June 13). The Muncie Star Press. p. 15. 
24 McBride, M. (2004, May 16).  Retail wave goes out. The Muncie Star Press. p. 47. 
25 (See footnote 24).
26 McBride, M. (2006, May 23). Sherry Laboratories finds happiness by the interstate. The Muncie Star Press. p. 15. 
27 Roysdon, K. (2005, October 11). Former outlet mall shops for new tenants. The Muncie Star Press. p. 4.
28 McBride, M. (2005, December 28).Boyce Forms consolidating at Daleville. The Muncie Star Press. p. 3. 
29 Roysdon, K. (2006, October 29). Employment firm newest resident at Heartland. The Muncie Star Press. p. 39. 
30 IBM expanding into Heartland Center (2011, March 24). The Muncie Star Press. p. 38.
31 Conti, A.L. (2011, October 6). Daleville Elementary slides into fun. The Muncie Star Press. p. 34.