By Audrey Jensen | Phoenix Business Journal
A new ownership group is demolishing Metrocenter Mall to develop a new mixed-use project.
Florida-based Concord Wilshire Capital and TLG Investment Partners have acquired the former Metrocenter Mall in Phoenix in partnership with Carl DeSantis’ CDS International Holdings Inc. to pave the way for a new mixed-use project known as the Village.
The new owners said they paid $48 million for the 64.2-acre site in January to three sellers.
The mall property was sold by Carlyle ER Metro LLC, an entity connected to New York-based retail firm Carlyle Development Group Inc. Dillard’s Properties Inc. also sold the Dillard’s store parcel, while AMERCO Real Estate Co., Phoenix-based U-Haul’s parent company, sold the former Macy’s store it bought in 2018.
The transaction was completed without mortgage financing on the property, according to the companies, which said that Greenwall Capital Management sourced and advised CDS in the sale.
“Late cycle investing requires that we are very focused on selecting only the best partners with projects in the best locations as we thoughtfully deploy CDS capital,” said Bill Milmoe, president of CDS, in a statement. “We especially like the public-private partnership to make this project a success. For CDS, Metrocenter checks all of the boxes to make the project our first major investment in the Phoenix metro area.”
Following the acquisition of the 1.4 million-square-foot mall, the developers said demolition will start “immediately” and be completed in a year. Road infrastructure and other site work is expected to be completed in two years and cost $98 million. The existing Walmart Supercenter and self-storage facility will remain in place.
The developers of the project said the Village will include more than 2,600 multifamily units, 150,000 square feet of commercial space and 4,100 surface and garage-deck parking spaces. It will feature a walkable community with a variety of multifamily uses, including rental and ownership, boutiques, popular retail stores, restaurant, bars, a town center and other commercial or entertainment uses.
“Metrocenter has memories for so many of us in Phoenix. As we look to the future, Metrocenter now means jobs, attainable housing, and restoring community strength to northwest Phoenix,” Phoenix Mayor Kate Gallego said in a statement.
The multifamily component, which is expected to cost $704 million, will start construction in two years and be completed in five to seven years, the developer said.
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