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Posted Sep 18, 2024, 6:09 PM
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Join Date: Jan 2013
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New development partner joins $850 million Metrocenter project
Well this is a bummer...Metrocenter development already getting gutted.
https://www.bizjournals.com/phoenix/...l-phoenix.html
Quote:
Scottsdale-based Diversified Partners LLC is the latest company to join the robust team spearheading the redevelopment of Metrocenter to build 140,000-square of new retail space as the developers kick off demolition of the 50-year-old mall.
The $850 million transit-oriented project, called the Village, is set to bring more affordable housing options and a large mix of stores, restaurants and entertainment uses centered around a large public park and plaza across 65 acres in Phoenix.
Diversified Partners, a national development firm known for its prominent retail projects in the Valley, plans to announce a name and amenities for the retail project, which is expected to feature an "eclectic" mix of shops and food and beverage options.
"We envision this prime property becoming one of the top destinations in Arizona," said Walt Brown, CEO of Diversified Partners, in a statement.
Metrocenter is one of several regional malls in the Valley to be torn down for a modern mixed-use concept and is being developed by a group including Concord Wilshire, TLG Investment Partners, CDS International Holdings Inc. and Hines.
Earlier this month, the developers secured an initial $24.5 million loan through Florida-based real estate investor Fuse Group Investment Cos. for the abatement and demolition process, as well as for site grading.
The city of Phoenix has also issued three demolition permits valued at nearly $4 million to Los Angeles-based Resource Environmental Inc. That includes the removal of the former U-Haul/Macy's building, the former Dillards and the main shopping mall totaling 568,615 square feet.
That process is expected to be completed in about a year, with another year planned for infrastructure construction on the site. Some residential development could also start construction as the infrastructure is built out. One of the development partners, Houston-based Hines, will oversee construction of the Village including the public infrastructure such as streets, water, sewer, parks, parking structures and more.
Metrocenter project will no longer include office, hotel uses
Since it was first proposed, plans for the Metrocenter project have shifted due to challenges in the commercial real estate market such as an oversupply of multifamily units and struggling hotels in the area.
The developers had at one point planned for nearly 3,000 multifamily units and 383,000 square feet of commercial space across retail, office and hospitality uses at full build out.
The most recent proposal and calls for substantially less multifamily and does not include plans for hotels or office — which are not considered viable right now or in the reasonable future, according to the developers.
The Village will now include a minimum of 1,100 residential units or eventually up to 1,940 units that could include a mix of multifamily, for-sale housing such as townhomes or other high-density options, according to the latest development agreement with the city.
The developers are exploring options and designs for housing products from across the nation and targeted at first-time homeowners or employees at major project sites in Phoenix such as Taiwan Semiconductor Manufacturing Co.'s north Phoenix campus, which is located about 20 minutes north of Metrocenter.
"We would love it if we could be able to deliver some first-home buyer product at a reasonable price point this close into the center of the Valley," said Steve Betts, senior development director for Concord Wilshire. "That would be a home run for the community if we could pull that off, but time will tell over the next several months or year as to whether we can make that product work here."
On the commercial side, the Village will now include at least 100,000 to 240,000 square feet of space across retail, restaurants, entertainment and other amenities centered around a 3-acre public park and plaza with an amphitheater, water features, open lawn, seating areas, public art and more.
The overall development will also incorporate the newly opened light rail station and route that could expand farther west in the future with new bus routes extended to nearby employers along Interstate 17 such as TSMC.
Phoenix Mayor Kate Gallego said the long-awaited project will bring a walkable, urban gathering space to the neighborhood.
"Though we will reminisce about fond memories over the years at Metrocenter, we are excited to witness the transformation of this iconic landmark into a modern and dynamic space to live, shop, eat and enjoy," Gallego said in a statement.
Earlier this year, the city of Phoenix updated how it planned to reimburse the developers for public infrastructure improvements since cities will no longer be able to collect residential rental tax starting in 2025.
Now some of those improvements will be paid for through sales tax generated through the city's parks, transportation and convention center, as well as sales tax and parking garage revenue generated from the project as originally planned.
Thursday, October 10, 2024
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