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.