Development Team Begins Demolition Process for $850M Metrocenter Mall Redevelopment in Phoenix

by John Nelson

PHOENIX — Developers Concord Wilshire Capital and TLG Investment Partners have begun the abatement and demolition of the Metrocenter Mall in Phoenix, beginning the $850 million redevelopment of the property into a mixed-use community.

The Metrocenter Mall opened its doors in 1973 and closed in 2020. The two-story, 140,000-square-foot mall is situated on 312 acres on the city’s northwest side. Plans for the redevelopment include more than 2,600 apartment units, as well as 100,000 square feet of retail space.

The demolition process has commenced with the destruction of the former Dillard’s and U-Haul buildings. Following a survey and analysis of the materials inside the building to ensure the protection of the public, Los Angeles-based Resource Environmental Inc. will abate and remove the asbestos from the building, then proceed with the demolition of the property.

The developers formed a strategic alliance in 2021 with Hines, an investment manager based in Houston, to redevelop the property, which the investment group purchased last summer. Hines is overseeing the development site on behalf of the ownership group.

According to the development team, the project has been designed as a transit-oriented, self-contained community. The property encompasses Phoenix’s new light rail station that was completed in January. The station provides direct connectivity to downtown Phoenix, Phoenix Sky Harbor International Airport and Arizona State University in nearby Tempe.

Additionally, Concord Wilshire and TLG have formed a partnership with Diversified Partners LLC, a Scottsdale, Ariz.-based brokerage and development company, to build-out the retail component of the project.

“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.”

Concord Wilshire Capital is a development and construction company with offices in Miami, Los Angeles and Atlanta. TLG Investment Partners is an investment firm headquartered in Fort Lauderdale, Fla.

— Channing Hamilton

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