Reflecting the changing dynamics in retail, Macerich sold Paradise Valley Mall, a non-core asset in Phoenix, for $100 million to a newly formed joint venture with an affiliate of RED Development, a Phoenix-based mixed-use real estate company. The transaction, which closed earlier this week, generated net proceeds for Macerich of approximately $95 million. Macerich will retain a 5 percent joint venture interest in the project.
“As the retail landscape continues to evolve here in Arizona and around the country, our decision to realize the market value of this non-core asset makes sense for Macerich,” said Ed Coppola, president, Macerich.
The 1970s-era Paradise Valley Mall has been rezoned to better reflect local demand for a wider mix of offerings on the 92-acre site. Uses will include high-end grocery, restaurants, multifamily residences, offices, retail shops and other elements.
The redevelopment will feature approximately 3.25 million square feet of non-residential uses and 3.25 million square feet of residential uses (~2,500 multifamily dwelling units) for a total of approximately 6.5 million square feet of occupied building area. While the majority of the center will be closed in the next few months to begin the redevelopment, Costco, JC Penney, Mesquite library branch and mass transit station all will remain open.
Lisa Brown has more than 30 years of experience in corporate communications and marketing management with organizations including Grubb & Ellis, Marcus & Millichap and NAIOP.
Email the Author
Reach over 250,000 Commercial Real Estate Professionals with Connect
Connect CRE reaches the top commercial real estate players nationwide and across all property types, offering you a variety of ways to showcase your team, your expertise and your brand to CRE decision makers.
The home for CRE news and everything you need to stay informed on deals, trends, and transactions, providing a platform to get your brand in front of your target audience.
Daily CRE Emails
Reaching over 150,000 inboxes across the nation every day, Connect’s Daily News emails provide advertising opportunities specific to your market.
Bi-Weekly Property Sector Emails
Focus your advertising on emails dedicated to your property sector and stay visible to current and potential clients.
Position your team as experts in your field with content created by Connect’s editorial team and published on Connect’s news emails. Showcase your intelligence and broaden your reach.