$750M Phoenix Mall Redevelopment Gets Green Light
Concord Wilshire Capital, TLG Investment Partners and Hines have partnered on the project.
The Phoenix City Council has approved the full redevelopment of Metrocenter Mall, a historic shopping center located along North Metro Parkway in Phoenix. The mall’s owner, Concord Wilshire Capital (CWC), is leading the $750 million, three-phase undertaking in partnership with TLG Investment Partners and Hines. The property will be converted into a walkable, self-contained mixed-use district, dubbed The Village, that will include multifamily, retail and entertainment spaces.
CWC had acquired the 1.4 million-square-foot Metrocenter from Carlyle Development Group in 2021. Completed in 1973, the mall was previously home to five department stores and a host of smaller retailers including Vans, Champs Sports and LensCrafters, CommercialEdge data shows.
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Redevelopment plans call for 2,600 multifamily units and 100,000 square feet of retail space to be built alongside the project’s existing amenities, such as a 150,000-square-foot Walmart Supercenter, a public library, the Rose Mofford Park and a cinema. The Arizona Canal, with its own pedestrian and bicycle pathways, is also part of the 68-acre property.
The Village will also incorporate the under-construction Phoenix Light Rail station that will allow for quick access to downtown Phoenix, as well to the city’s international airport and flagship university. The $158 million project, representing the second phase of the light rail’s northwest extension, is scheduled for delivery in 2024.
Malls move on
Malls were among the commercial real estate assets to have been hit the hardest over the past three years, due to the pandemic-era closures and restrictions, the rise of e-commerce and the slow obsolescence of department stores. As such, many mall operators have had to adapt, through both space redevelopment and putting an emphasis on the experience of shopping, offering in-person events and introducing more dining space.
Metrocenter is not the only Phoenix mall to be converted into a mixed-use destination. In February, developers announced their plans for the redevelopment of the 100-acre Paradise Valley Mall. The project’s first phase was set to include 400 apartments and a Whole Foods Market, as well as a theater, restaurants and a 3-acre park.