When it opened in 1957, Park Central Mall converted what once was a dairy farm into an open-air mall featuring sought-after retailers. But as the city continued to grow northwards and enclosed malls offered relief from the heat, Park Central Mall’s popularity and profitability started to recede. Today, Park Central has been reimagined again into a modern mixed-use property — one of many projects that showcase why rethinking a site’s best use is a powerful tool for a growing metropolis such as Greater Phoenix.
Sharon Harper, CEO, chairman and co-founder of Plaza Companies, says that working well with the municipality is critical for the success of projects such as Park Central.
“One group after another tried [to redevelop the property], but were unsuccessful,” she continues. “It was the partnership with the city and our shared vision to do something transformational that got it done. [Chris Mackey, community and economic development director at City of Phoenix] used to call Park Central the hole in the doughnut for Phoenix, and now it’s the jewel.”
Part of the planning process included gathering feedback from nearby residents on what they wanted to see from the project. After dozens of neighborhood meetings, Harper says that a common thread was a desire for historical preservation. Rather than bulldozing all the existing structures, Plaza Companies and its partner Holualoa decided to convert approximately 600,000 square feet of existing department stores.
“The mall was built in the ‘50s, so when you talk about midcentury modern architecture, it was the real deal,” Harper says. “When we got involved, it had been covered up with stucco and paint, so we scraped that all off to get back to its original look. Even our signage is patterned after the early days of Park Central Mall because we wanted to be embedded in our history as we bring these new industries to our state.”
While celebrating its past, Park Central is also grounded in the 21st century. Harper notes that attracting Creighton University was a milestone for the site and its connection to healthcare. In 2023, Phoenix Mayor Kate Gallego announced the Phoenix Medical Quarter — a designated bioscience hub that includes St. Joseph’s Hospital, Barrow Neurological Institute, Park Central and more within the 100-acre ecosystem.
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The university spurred on more development, such as the apartments and hotel located on site, and attracted other healthcare organizations, including two nursing schools, a medical device startup, a radiology center and others. Harper says that Creighton bought the land south of its campus and will be starting construction of a second phase soon.
“Honestly, I never dreamed we’d recruit Creighton,” she continues. “Bringing in that level of user required a team effort from everyone, including the governor, the county board of supervisors and the mayor.”
Mall Makeover
Another Phoenix landmark getting a new lease on life is Paradise Valley Mall. Now known simply as PV, Jeff Moloznik, senior vice president of development at RED Development, says that having fruitful relationships with equity and debt partners, landowners, the city and neighborhood is the only way to make these projects flourish.
“There’s always a couple things that initiate our development process,” Moloznik explains. “One of those is familiarity with a property owner, which brings about ideas for new projects or how to redevelop existing real estate.”
At the same time, Moloznik says the company will see if there are any large users looking to operate in the area of the project.
“With PV, RED Development has 20-plus years of experience collaborating with property owner, Macerich,” he continues. “We also knew there was active interest from a multifamily community and a Whole Foods. Coupling user interest with a long-term partner helps create the momentum that propels us through the rest of the development process.”
Redeveloping a large property like PV doesn’t happen overnight — Moloznik notes that RED first looked at the mall back in 2012, highlighting the ongoing nature of these collaborations.
READ MORE: PV adds six new tenants to $2 billion redevelopment project
“If you spend a decade doing due diligence, planning and zoning, then another decade in construction, we’re engaged with that property for 20 years,” he continues. “The city is at the table from the start. It’s one thing to have interest from a landowner or end users, but you need to be sure you can execute on that vision with the city supporting what you’re trying to do.”
In the case of PV, Moloznik says that RED Development has a positive working relationship with Phoenix Councilwoman Deb Stark dating back to 2005 when she was the planning director for Phoenix. At the time, the company was redeveloping CityScape in the downtown area, and Moloznik says that she shepherded the project through the planning and development department.
“We essentially had to create our own downtown core zoning code using over a dozen variances to design and construct the project the way our tenants wanted,” he continues. “When we started the initial discussions with the city and Councilwoman Stark about PV, we had a legacy of success from CityScape that gave them the confidence we could bring about something unique.”
Innovative development
After the Great Recession, a concerted effort was made by both public and private entities to make the region’s economy more resilient to future downturns in the market. One of the institutions involved in this initiative — Arizona State University — has dedicated considerable resources to realize this goal.
Beyond graduating tens of thousands of students each year, ASU also plays a significant role in the state’s growth. According to an ASU report on the university’s economic impact in Arizona for fiscal year 2024, it contributed a gross product of $6.2 billion, labor income of $3.9 billion, and employed 55,688 people.
One way ASU is diversifying Greater Phoenix’s economy is through its eight Innovation Zones. Jay Donnelly, vice president of university real estate development at ASU, explains that the purpose of these master-planned developments is to create a mutually beneficial ecosystem between the university’s knowledge assets and businesses.
“They create an opportunity for private sector companies to collaborate with ASU on research and inform our curriculum,” he continues. “Students can take on internships, which creates a talent pipeline for that company. It’s a symbiotic relationship.”
To make these Innovation Zones a reality, ASU partners with developers who capitalize it with their debt and equity under a 99-year ground lease for a use that aligns with the institution’s educational mission.
“At the end of the ground lease, the improvements made to the land stay within the university’s portfolio,” Donnelly says. “For example, if an office was built, we may need it for our purposes, or we can do another ground lease and generate additional proceeds.”
The municipalities in which these Innovation Zones reside also reap benefits from these relationships. After multiple attempts to repurpose the Los Arcos Mall in Scottsdale fell apart, ASU acquired the property. Plaza Companies was selected by ASU to redevelop the site into SkySong, which Harpers says “overhauled not just the 42 acres, but that whole region of Scottsdale.”
A 2021 study conducted by Elliott D. Pollack and Company shows that SkySong generates an estimated annual impact of 9,350 total jobs, $584.4 million in wages and $1.3 billion in economic activity. Additionally, the project returned $27.1 million in revenue to Scottsdale at the time of the report and is expected to receive more than $362.3 million over the next three decades.
“When the Secretary of Commerce under President Obama, Penny Pritzker, visited SkySong, she told us that projects like these should be duplicated across the country,” Harper concludes. “The creativity of bringing together a university, a city and private developer is something special, and SkySong is the epitome of that.”
