Article originally posted on Phoenix Business Journal on April, 2021
The developer leading the charge to completely reimagine Paradise Valley Mall has purchased the majority of the property for more than $100 million.
Phoenix-based Red Development worked with the mall’s longtime owner, Santa Monica-based Macerich Co. (NYSE: MAC), to get the property rezoned earlier this year so it could be mostly demolished and turned into a mix of apartments, offices, restaurants, retail shops and a high-end grocery store. Now, Red has bought a majority share of the property.
In a deal that closed on March 29, Macerich sold the four parcels it owns at Paradise Valley Mall to a Delaware limited liability company PV Land SPE, which is a newly formed joint venture between Macerich and Red Development.
Macerich owns 5% of PV Land SPE, so the company netted $95 million in the sale.
“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, Macerich’s president, in a statement. “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.”
Macerich owns and operates a number of the Valley’s most profitable malls and shopping centers including Scottsdale Fashion Square, Kierland Commons, Biltmore Fashion Park and Arrowhead Towne Center. PV Land SPE also purchased this week more than 12 acres from Dillards Properties Inc., which owned the land and building where the Dillard’s store at Paradise Valley Mall was located, for $16 million, according to documents filed with the Maricopa County Recorder’s Office.
Now through PV Land SPE, Red owns nearly the entire 100-acre property where Paradise Valley Mall is located. According to the Maricopa County assessor’s website, Macy’s and JC Penney still own their pieces of land.
The majority of the stores at the 42-year-old Paradise Valley Mall closed on or before March 31, including Macy’s. During the demolition and construction of the new project, Costco, JC Penney and the Mesquite branch of the Phoenix Public Library will remain open.Besides the Paradise Valley Mall project, Red owns and is working on a number of major developments around the Valley including a 17-story office tower in Tempe where Macayo’s Depot Cantina was located and a $300 million mixed-use project in Phoenix's Arcadia neighborhood that will feature a boutique hotel from restauranteur Sam Fox.