Plans for the redevelopment of Metrocenter Mall in Phoenix are expanding, and the new price tag could approach $1B.
The City of Phoenix is working on an agreement with Concord Willshire Capital LLC. The company announced a redevelopment plan in December, in association with TLG Investment Partners and Hines.
The initial plan included 2,600 multifamily units and 100KSF of retail and service space that included boutiques, restaurants and bars, a park and other outlets. That plan had an estimated cost of $750M.
Concord Willshire is currently working to acquire 80 acres across five parcels at the site. A new City report now includes 3,200 multifamily units and 383KSF of retail and commercial with 5,800 parking spaces in as many as nine parking garages. A park remains part of the plan.
Phoenix will own the garages and land, which have an estimated value of $16.4M, reimburse the developer for construction, and provide a management fee payment of up to 4.5% of the market value for the garages and land, per the agreement.
Full buildout of the site is expected in three phases, with completion targeted for 2029. The total capital investment is currently projected at $935.9M.
The tentative timeline shows purchase of the site this summer, demolition of the existing mall this autumn and Phase I construction beginning early next year and completing in late 2024.
Phoenix and the developer are considering a Community Facilities District for public improvements associated with the project. (Source)