Article originally posted on Globe St. on April 1, 2021
PHOENIX, AZ – Owner, operator and developer, Macerich has sold Paradise Valley Mall in Phoenix, AZ for $100 million to a newly-formed joint-venture partnership, with an affiliate of RED Development.
The joint-venture partnership plans to develop a multi-year, multi-phased, mixed-use project at the 92-acre site. The project will be led by Phoenix-based, mixed-use real estate company, RED Development.
Macerich generated net proceeds of $95 million for the disposition of the non-core asset. The company will retain a 5% joint-venture interest in the mixed-use project.
The Paradise Valley Mall property has been rezoned to meet local demand for a wider mix of offerings.
The redevelopment project will comprise high-end grocery, restaurants, multifamily space, offices, retail space and more. The property will feature equal parts residential and non-residential space, for a total 6.5 million square feet of occupied building area.
“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,” states Ed Coppola, president of 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 majority of Paradise Valley Mall will be closed in the coming months as the development begins.
The disposition closed on March 29, 2021.