Phoenix’s most iconic mall — Metrocenter Mall — is on its way to becoming the largest mall redevelopment project in Arizona’s history. Concord Wilshire Capital and TLG Investment Partners (Developer) announced today that (i) the Abatement and Demolition of the Metrocenter Mall, including the Dillard’s and U-Haul Buildings (formerly Macy’s), have commenced, and (ii) it has formed a partnership with Diversified Partners, LLC, a Scottsdale-headquartered national real estate firm, to develop and construct the 140,000-square-foot retail component located at the center of the $850 million mixed-use development.
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“The redevelopment of Metrocenter has been long-awaited by our residents, who are eager to welcome a new walkable, urban gathering place in their neighborhood. Though we will reminisce about fond memories over the years at Metrocenter, we are excited to witness the transformation of this iconic landmark into a modern and dynamic space to live, shop, eat, and enjoy,” Mayor Kate Gallego said.
After several months of survey and analysis of the materials inside the building to ensure the protection of the public during demolition, Resource Environmental, Inc., a Los Angeles-based company, will first abate and remove the asbestos from the buildings and then proceed with the demolition of all of the buildings. The Developer has secured a $24.5 million construction loan to fund the expenditures for abatement and demolition as well as the civil work necessary to start the interior roadway construction of the project.
The Developer has formed a strategic alliance with Hines, an international real estate firm, to redevelop and repurpose the site, and Hines has taken over the oversight of the site. “The environmental remediation plan of the Metrocenter Mall has been ongoing for some time, and we are excited that Resource Environmental has taken over control of the site, and we plan to have it completed within 10-to 12 months, in order to get the site ready for construction,” said Chris Anderson, Senior Managing Director of Hines”.
“We are delighted to team up with Concord Wilshire on our shared vision for reimagining Metrocenter,” said Walt Brown, CEO of Diversified Partners. “We envision this prime property becoming one of the top destinations in Arizona. We will announce the new name along with some of the exciting features in the near future.
“We are excited to partner with Diversified Partners to bring the core of this mixed-use development to life, through the development of an eclectic retail and F&B mix, where every resident and visitor can feel a connection,” said Nate Sirang, President of Concord Wilshire. “Our vision includes integrating state-of-the-art public safety solutions into a comfortable and fun first-class destination for families, while contributing meaningfully to the City of Phoenix, the local community, and its economy.”
Councilwoman Ann O’Brien also shared her thoughts on the project, saying, “This redevelopment is not only about bringing new businesses and opportunities to our City but also about creating an ownership product for our constituents that wasn’t available before. We have carefully considered the needs of our community in planning this project and are confident that it will be a success with a retail village surrounded by a public plaza.”
“We are pleased to commence the Abatement and Demolition of the project and start the next phase of the redevelopment,” said Richard Miller, CEO and President of Resource Environmental, Inc.
The Village has been designed as a transit oriented, self-contained community encompassing the City’s new Light Rail Station that was completed as of January of 2024, and is currently in service. The City of Phoenix has invested approximately $150 million to build this Light Rail Station, which will serve as one of the major focal points of the development and will provide direct connectivity to Downtown Phoenix, Phoenix Sky Harbor International Airport, ASU, and communities to the east.
