Renderings Courtesy of Macerich/RED Development
Macerich, one of the nation’s leading owners, operators and developers of unique retail and mixed-use properties in top markets, just announced it has sold Paradise Valley Mall for $95 million to a newly formed joint venture with an affiliate of RED Development.
The transaction generated net proceeds for Macerich of approximately $95 million. Macerich will retain a 5% joint venture interest in this multi-year, multi-phased project led by RED Development, a Phoenix-based mixed-use real estate company.
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, multi-family residences, offices, retail shops and other elements.
“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,” says Ed Coppola, President, Macerich. “Our focus remains on Macerich’s top-tier, market-dominant properties that will continue to benefit from the industry’s increasing momentum toward high-quality destinations.”
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 multi-family 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, the Phoenix Public Library – Mesquite Branch, and mass transit station will all remain open.