Redevelopment is Coming to Paradise Valley Mall

Redevelopment is Coming to Paradise Valley Mall

In February, the City of Phoenix approved a rezoning request that will allow for the development of Paradise Valley Mall. The developers’ plans include converting the 1.2 million-square-foot shopping center into a high-quality, 6.5 million-square-foot mixed-use development. Here is more on the redevelopment that is coming to Paradise Valley Mall.

Approval of the Paradise Valley Mall Redevelopment Project

The Paradise Valley Mall redevelopment project will involve renovating existing mall property structures and adding multifamily units and commercial buildings. To move forward, the developers zoning approval to purpose 3.25 million square feet of the proposed site for non-residential use and 3.25 million square feet for residential. At the time of the zoning request, the developers were the mall?s owner US-based real estate investment trust Macerich and commercial real estate RED Development.

In February 2021, the Phoenix City Council approved the developers? rezoning request. Following the approval, Councilwoman Debra Stark, who represents the district where the mall is located, reportedly said in a statement: ?PV Mall holds many memories and a sense of nostalgia for our residents. I am excited that the mall will be part of the fabric of the community for generations to come.? Additionally, Phoenix Mayor Kate Gallego commented about the project stating that ?The redevelopment of Paradise Valley Mall will provide economic stabilization, not just to the immediate area but to the surrounding neighborhoods as well.?

The Paradise Valley Mall Redevelopment Project

Paradise Valley Mall is located in Paradise Valley Village at Cactus Road and Tatum Boulevard and is accessible from Highway 51 and Loop 101 Freeway. According to a recent report, the 6.5 million-square-foot mixed-use development will include restaurants, retail stores, self-storage facilities, office property, and a grocery store. Developers also intend to improve pedestrian walkways and common areas. They also intend to build a mass transit facility at the location. There are also plans for a high-rise housing development with 2,500 units that reportedly could be as tall as ten stories. The redevelopment will not affect the Costco store at the site or the mall?s parking garage. Additionally, the changes should not impact the city?s Mesquite Library branch that is located on the north side of the mall parking lot.

Paradise Valley Mall

According to a recent report, Paradise Valley Mall was built in 1979 by Westcor. The property underwent an expansion in 1990 and later added a carousel feature. In 2002, current developer Macerich acquired Westcor Realty and its holdings. The mall was renovated again in 2008 to make way for a new Costco location. In April, 2021, Macerich reportedly sold the Paradise Valley Mall for $126,500,000 to a joint venture of RED Development and an affiliate.

Beginning in the early 2010s, as retail continued to shift towards online sales, Paradise Valley and other malls started to see a change in their tenant structures. Beginning in 2018, three of the mall?s anchor stores announced that they were closing their locations in quick succession. In November of 2018, Sears announced that 40 stores were closing nationwide, including its Paradise Valley Mall location. The retailer closed the store in February of 2019. In November of 2020, the department store Dillard?s announced the future closure of its store location. That same month, the mall?s movie theatre closed its doors. In 2021 long-time tenant Macy?s announced that it would also be closing its Paradise Valley Mall location effective April 2021. After Macy?s departure, Paradise Valley Mall?s only remaining anchor stores will be Costco and JCPenney.

The Mall?s Existing Stores and Services

Although Paradise Valley Mall has experienced changes over time, the property continues to offer 1.2 million square feet of shopping and other services. The remaining anchor stores and nationally known retailers such as Bath & Body Works, Auntie Anne?s, Lenscrafters Optique, Hot Topic, and others continue to offer goods and services at the location.

Construction is expected to begin on the Paradise Valley Mall redevelopment project in mid-2021.

When navigating through a real estate issue in Arizona, it’s critical that you have an experienced real estate attorney to protect your interests. Laura B. Bramnick is an experienced Arizona real estate attorney who can help you manage all aspects of your Arizona real estate matter. If you are seeking an exceptional, client-driven real estate lawyer in Phoenix and throughout the State of Arizona, contact Laura B. Bramnick to schedule your consultation.

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