By Roland Murphy for Arizona Builder’s Exchange
Scottsdale Fashion Square owner Macerich announced on Dec. 5th its multi-phase expansion plan for the iconic mall site. The proposed development includes a renovation of the luxury wing followed by the addition of residences, Class A office space and a new hotel. (AZBEX, Jan. 8)
The first phase luxury wing renovation features a new entrance and arrival point, two-story storefronts and exterior-facing retail buildings. Upscale amenities will include valet and concierge service, art installations, resort-style bathrooms, a fountain and a garden area.
Construction will begin in 2017 with opening planned for fall 2018.
Later phases will include the addition of mixed-use elements on a seven-acre parcel immediately north of the mall that reaches from Goldwater Boulevard to Scottsdale Road. The plan will incorporate high-end residential units, Class A office space and hospitality uses.
In its proposal to the city last December, Macerich noted Scottsdale Fashion Square currently draws more than 12M visitors a year and employs approximately 3,500 people. It is the state’s largest mall, generating $52M in sales tax revenues for the city from 2012 to 2015. Nearly 70 percent of the downtown area and 16 percent of all gross receipts for the city are generated through the 67-acre site, the company claims.
“Macerich is capitalizing on the strong growth in Scottsdale and greater Phoenix to enhance our market-dominant retail property. Already Scottsdale Fashion Square is the region’s undisputed luxury leader, and we see significant opportunity to better serve this attractive and buoyant metropolitan area for the long term,” said Macerich Chairman and CEO Art Coppola.
The renovation and added mixed-use elements will complement investments in other aspects of the shopping center, including refinements and updates to the contemporary and entertainment/youth fashion wings. Plans also include the addition of new restaurant and food offerings at the 1.9MSF property.
In the announcement, Robert Perlmutter, Macerich’s COO, said “This multi-phased project is part of Macerich’s long-term strategy, as well as the center’s own history, of continually reinvesting in irreplaceable retail destinations. We see great opportunity to heighten and expand our luxury presentation, capturing the unique demographics and growth in the Phoenix marketplace.”
High-end brand Louis Vuitton has already signed a new long-term lease at Scottsdale Fashion Square and plans a major store renovation in 2017.
Macerich’s portfolio has 10 regional shopping centers in Arizona, totaling more than 9MSF.
Macerich is the owner and developer. No information relating to an architect or GC was available at press time.