The landscape of Phoenix is bracing for a transformation with the imminent demolition of the former Metrocenter mall, slated for this spring. The once-bustling shopping center, which bid farewell to shoppers in the wake of the Covid-19 pandemic, has been earmarked for a major redevelopment project. The development consortium, consisting of Concord Wilshire Capital, TLG Investment Partners, CDS International Holdings Inc., and Hines, had initially pegged the demolition phase to begin promptly after the site's acquisition in January 2023, as reported by the Business Journal. However, the developers postponed the demolition due to a climate characterized by elevated interest rates.
Located just west of Interstate 17, approximately 10 miles from downtown Phoenix, the site includes the majority of the former shopping mall, which spans 1.4 million square feet. The purchase, which cost the developers nearly $50 million, does not envelop the Walmart Supercenter and the self-storage facility, with both of these establishments set to stay put. The redevelopment project, known as the Village, is expected, among other features, to introduce over 2,600 multifamily units, a sizable commercial space, and ample parking facilities to the area. Phoenix Mayor Kate Gallego alluded to the project's potential for job creation, attainable housing, and the restoration of community vitality in northwest Phoenix, as mentioned in a statement obtained by the Phoenix Business Journal.
Amidst delays, the developers have shed light on the project's timeline and financial dimensions. The demolition is now expected to pave the way for infrastructure and site work, spanning two years and costing around $98 million. Stepping into the multifamily housing scene, the developers have earmarked an upwards of $704 million for the project, which is poised to start in two years and wrap up over a five to seven-year horizon. The Village is envisaged as a livable, pedestrian-friendly community, with residential options ranging from rentals to ownership, alongside a consortium of boutiques, restaurants, and bars.
This ambitious redevelopment is strategically situated to reap benefits from its proximity to high-profile locations, notably the Taiwan Semiconductor Manufacturing Co. campus and the Valley Metro light rail extension, which is set to commence operations in early 2024. Resident amenities at the Village are billed to include pet-friendly parks, green spaces, and an amphitheater, ensuring a comprehensive living experience. Concord Wilshire Capital and TLG Investment partners, part of the developer roster, were once known for their $40 million renovation of the Sheraton Downtown Phoenix. The total cost for country construction at the former Metrocenter mall site edges close to $850 million. According to the Phoenix Business Journal, city reports project that the initiative could signify a nearly $936 million investment and unfold in three phases over the next decade.
The developers have secured tax incentive deals from the city for constructing parking garages and for the apartment complexes themselves. The scope and sheer scale of the endeavor recall the city's successful effort in transforming the Park Central Mall into a mixed-use locale, painting a hopeful picture for the erstwhile Metrocenter's future prospects.
