A rendering of The Village shows how the developers are imagining the 68-acre mixed-use project that will be built at the former Metrocenter Mall property (submitted photo).

Developer Concord Wilshire Capital and TLG Investment Partners announced Sept. 18 that Phoenix’s iconic Metrocenter Mall is on its way to becoming the largest mall redevelopment project in Arizona’s history. A press release announced that abatement and demolition of the mall, including the Dillard’s and U-Haul Buildings (formerly Macy’s), have commenced, and that Diversified Partners, LLC, a Scottsdale-headquartered national real estate firm, will develop and construct the 140,000-square-foot retail component located at the center of the $850 million mixed-use development.

The developer added that after several months of survey and analysis of the materials inside the building to ensure the protection of the public during demolition, Resource Environmental, Inc., a Los Angeles based company, will first abate and remove the asbestos from the buildings and then proceed with the demolition of all the buildings. They have secured a $24.5 million construction loan to fund the expenditures for abatement and demolition as well as the civil work necessary to start the interior roadway construction of the project.

According to a spokesperson, exterior demolition of the first building is anticipated to take place mid-November.

The developer will work with real estate firm Hines to redevelop and repurpose the site, and Hines has taken over the oversight of the site.

“The environmental remediation plan of the Metrocenter Mall has been ongoing for some time, and we are excited that Resource Environmental has taken over control of the site, and we plan to have it completed within 10 to 12 months, in order to get the site ready for construction,” said Chris Anderson, senior managing director of Hines.

Nate Sirang, president of Concord Wilshire said that they are excited to bring to life the core of the mixed-use development, which will include an “eclectic retail and food and beverage mix, where every resident and visitor can feel a connection.”

He added, “Our vision includes integrating state-of-the-art public safety solutions into a comfortable and fun first-class destination for families, while contributing meaningfully to the City of Phoenix, the local community, and its economy.”

The Village, as the new development is being called, has been designed as a transit oriented, self-contained community encompassing the city’s new light rail station, which was completed in January 2024 and represents a $150 million investment by the city.

As the project moves closer to demolition and site-readiness, the residential aspect of the project has shifted from the originally announced 2,600 multifamily rental units to 1,100 for-purchase townhomes, according to Jon Green, senior vice president, Concord Wilshire. He added the caveat that the mix of housing may change over time as the market changes. The townhomes will range from 1,400 to 2,200 square feet and the anticipated price point will begin in the low $400,000 range.

Green presented a project update to stakeholders at an Aug. 27 Metro District Community Collaboration meeting (www.metrodistrictcollaboration.com). At the meeting, Green also said that residents should see vertical development, beginning with the retail, 14 to 16 months after the start of September’s demolition. Construction on the model homes is projected to begin around month 20.