Residents of Norristown are watching one of the most significant transformations in the community’s history unfold. It involves the long-standing Norristown State Hospital campus as it undergoes both a sweeping modernization and the launch of a massive mixed-use redevelopment on land that for decades sat largely underutilized.
The changes span two interconnected but distinct efforts: a 68-acre parcel being redeveloped into a new residential and commercial neighborhood known as Preserve at Stony Creek, and a broader overhaul of the hospital’s remaining 255-acre operational campus, where aging buildings are being replaced and a major new forensic psychiatric facility is slated to break ground in 2026. Together, the projects signal what local leaders describe as a pivotal moment for Norristown’s economic future, housing landscape, and behavioral health infrastructure.
The redevelopment portion began after the Commonwealth of Pennsylvania invested up to $30 million to demolish eight mostly vacant buildings and complete environmental remediation, preparing approximately 68 acres for private investment. Ownership of that land was transferred to the Montgomery County Redevelopment Authority in November 2022, clearing the way for a formal sale. In a major step forward, the authority agreed to sell the property for $4.7 million to Pinnacle Realty Development Company, which will lead construction of the new neighborhood. Branded as Preserve at Stony Creek, the development will bring more than 700 new homes — including 453 townhomes and 288 apartment units — with townhome prices expected to range between $300,000 and $500,000.
Plans also call for approximately 36,000 square feet of retail space geared toward supermarkets and restaurants, along with up to 202,000 square feet of tech, flex, or office space intended to attract employers and generate jobs. A mixed-use zoning overlay approved by Norristown Municipal Council allows the formerly institutional land to support residential, retail, and employment uses, and public hearings and conditional use reviews remain part of the ongoing approval process.
While it could take up to two years before groundbreaking begins, developers anticipate phased construction stretching through 2032. Local officials have characterized the initiative as the largest redevelopment project in Norristown’s history, with projections of tens of millions of dollars in future tax revenue and the potential to spark renewed economic energy throughout the borough. At the same time, the hospital that has operated in some form since 1880 continues its mission on the remaining campus, where state lawmakers and local leaders recently toured facilities to better understand ongoing upgrades.
Norristown State Hospital is one of only two forensic psychiatric hospitals in Pennsylvania and primarily serves individuals with serious mental health conditions who are involved in the criminal justice system, including those found not guilty by reason of insanity or deemed incompetent to stand trial. Officials say the institution is shifting toward a more recovery-oriented design model, with approximately 30 aging buildings being replaced by modern structures better suited to contemporary treatment standards.
In 2026, the hospital plans to break ground on a massive new Regional Forensic Psychiatric Center designed to replace current facilities dating back to 1947 and 1965; leaders hope the new building will serve the community for the next century. The existing hospital currently houses 255 beds, and lawmakers touring the campus have emphasized both appreciation for staff and recognition of the need for continued investment in behavioral health. Importantly for nearby residents, plans call for fencing and landscaped buffers to clearly separate the new residential neighborhood from the active hospital grounds.
While some community members have expressed questions about traffic, density, and infrastructure, others see long-awaited momentum on property that had remained dormant after demolitions were completed. Municipal leaders describe the redevelopment as more than bricks and mortar — framing it as a strategic effort to expand housing options, attract employers, and reconnect a historically isolated portion of the borough with surrounding neighborhoods. As the permitting process advances and detailed site plans continue to evolve, residents can expect additional public updates and opportunities for input. Over the next several years, neighbors living in and around the former hospital grounds will likely witness steady change — from construction equipment and new roadways to modern hospital buildings rising alongside rows of townhomes and retail storefronts — marking a new chapter for a site that has shaped Norristown’s identity for nearly a century and a half.
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