Phoenix Metrocenter Mall property destined for rebirth, developers say
Staff Reports | Digital Free Press
Concord Wilshire Capital and TLG Investment Partners — in partnership with Carl DeSantis’ CDS International Holdings Inc. — is announcing the acquisition of the Phoenix Metrocenter Mall, including what locals call the ‘Dillard’s Building’ and ‘U-Haul Building.’
The transaction was completed with no mortgage financing on the property and will pave the way for revitalization of one of Phoenix’s most iconic properties, according to a press release.
The development group has formed a strategic alliance with Hines, the international real estate firm, to redevelop and repurpose the Phoenix Metrocenter Mall into a community-driven walkable village that will be home to a variety of residential apartment options, including ownership and rental, officials close to the matter say.
The new village will be situated on approximately 64.2 acres of prime land in a qualified ‘Opportunity Zone,’ the release states.
The plans for the village include over 2,600 multifamily units, 150,000 square feet of commercial, essential and service retail, and 4,100 surface and garage-deck parking spaces. Total construction costs are expected to be over $850 million.
The development team has also signed agreements with the city of Phoenix for a public private partnership for public improvements, the release states.
The revitalized Metrocenter property will be designed as a self-contained, transit-oriented community, encompassing the city’s new Light Rail Station that is currently under construction on site. The city of Phoenix is investing approximately $150 million to build this Light Rail Station, which is scheduled to be delivered in 2024 as part of the Northwest Extension.
Phoenix Metrocenter Mall property destined for rebirth
“We are excited to be a part of the redevelopment of the former Metrocenter Mall into a vibrant mixed-use community with a sense of place that will enhance the public investments,” said Chris Anderson, Hines senior managing director.
Nate Sirang, president at CWC, says with support from the municipality the Phoenix Metrocenter Mall property is poised for successful revitalization.
“We are pleased to enter the next phase of this project and complete the purchase of the Metrocenter property,” he said. “The proposed redevelopment of the Metrocenter Mall property will be another substantial project to further the city’s redevelopment and revitalization plan for the North Mountain Redevelopment Area.”
Phoenix Mayor Kate Gallego agrees.
“To see a neighborhood come back to life is tremendous. The city of Phoenix has done a lot of work to make this possible, not the least of which is the Northwest Light Rail Extension project to serve this destination,” the mayor of Phoenix said in a prepared statement. “Metrocenter has memories for so many of us in Phoenix. As we look to the future, Metrocenter now means jobs, attainable housing, and restoring community strength to northwest Phoenix.”
For Bil Milmoe, president at CDS, all of the partners are in the right place to bring the next chapter of the Phoenix Metrocenter Mall property back to life.
“Late cycle investing requires that we are very focused on selecting only the best partners with projects in the best locations as we thoughtfully deploy CDS capital,” he said. “We especially like the public-private partnership to make this project a success. For CDS, Metrocenter checks all of the boxes to make the project our first major investment in the Phoenix metro area.”