By Concord Wilshire, TLG Investment Partners and Hines via News Direct
One of Phoenix’s most iconic properties is about to become the largest mall redevelopment project in Arizona history, transforming into a vibrant new addition to the city’s core.
Concord Wilshire Capital and TLG Investment Partners (collectively, the “Developer”) announced today that they have contracted to acquire the iconic Metrocenter Mall in Phoenix, and plan to invest approximately $750M to redevelop the property into a residential and mixed-use community.
The Developer has formed a strategic alliance with Hines to redevelop and repurpose the Metrocenter Mall into a community-driven walkable village that will be home to a variety of residential apartments, curated boutiques, popular retail stores, restaurants, bars, a town-center park, and other commercial and entertainment venues. The Village will be situated on approximately 68 acres of prime land in a qualified Opportunity Zone. The plans for the Village include over 2,600 multifamily units, 100KSF of essential and service retail.
The Village will be designed as a self-contained community encompassing the city’s new light rail station that is currently under construction within the Village. The City of Phoenix is investing approximately $150M to build this station. The light rail station is scheduled to be delivered in 2024 as part of the Northwest Extension. The station will serve as one of the major focal points of the Village and will provide direct connectivity to downtown Phoenix, the Phoenix Sky Harbor International Airport, ASU, and communities to the east.
Residents and visitors of the Village will be able to enjoy an array of anticipated amenities, including pet-friendly parks and greenspace, an amphitheater, pedestrian and bicycle pathways, a walkable retail promenade, shops, restaurants and immersive water features. The Village will also be designed to integrate with and complement certain existing amenities and venues within the Metrocenter Mall through its partially shaded internal pathways and roads. The existing amenities and shops include a 150KSF Walmart Supercenter, a public library, the Arizona Canal with its own pedestrian and bicycle pathways, the Rose Mofford Park, a theme-park, and a cinema.
The Village will also provide approximately 4,100 parking spaces programmed in up to seven garage decks.
The Developer has also reached preliminary terms with the City of Phoenix, subject to City Council approval, for a public private partnership for public improvements, by and through a to-be-formed Community Facilities District for the Village. The public improvements are planned to be funded through CFD assessment bonds and will be primarily for the construction of public parking garages.
On June 28th, 2021, CWC signed a contract with Carlyle Development Group of New York, the Mall owner, to acquire the Metrocenter Mall, and the inspection period has been successfully completed. The transaction is scheduled to close in the second half of 2022. The company has reached an agreement with Carlyle to demolish the mall ahead of closing. In 2016, Carlyle led the rezoning of the Metrocenter Mall and the surrounding parcels and obtained the City Council Approval for a Planned Unit Development designation, as well as lobbying for the relocation of the light rail station into the Metrocenter Mall, paving the way for a successful future mixed-use development. (Source)
