The demolition process has commenced at Metrocenter Mall, once the premier shopping destination in Phoenix. Concord Wilshire Capital and TLG Investment Partners have announced their plans to tear down the Dillard’s and U-Haul buildings (formerly Macy’s) on the site. They have also joined forces with Diversified Partners to build a 140,000-square-foot retail component at the heart of this mixed-use development.
To fund necessary expenses such as abatement, demolition, and civil work for interior roadway construction, developers have secured a $24.5 million construction loan. The project is estimated to take approximately one year to complete.
Hines has been brought on board by the developer group as an overseeing partner for redeveloping and repurposing this location. In addition to retail space, there are plans for residential units and restaurants along with a central plaza or park area within the development site. The total cost of this redevelopment effort is expected to exceed $850 million; Phoenix had previously invested over $150 million in building a Metro Rail station adjacent to this project.
This article was originally published by Connect CRE.
