Metrocenter Mall redevelopment begins demolition process

PHOENIX – Demolition of the iconic Metrocenter Mall in Phoenix has begun, beginning the $850 million redevelopment that will turn the area into a mixed-use community.

Developers Concord Wilshire Capital and TLG Investment Partners announced on Thursday that the mall, including the Dillard’s and U-Haul buildings, has begun abatement and demolition.

To ensure the safety of the public during demolition, the building’s materials have been surveyed and analyzed. The developers are bringing in Resource Environmental, Inc. to remove the asbestos and start the demolition. The entire process is estimated to be completed in 10 to 12 months.

Concord and TLG collected a $24.5 million construction loan to fund the abatement, demolition and civil work to begin interior roadway construction.

The developers have partnered with international real-estate firm, Hines, to redevelop Metrocenter into the Metro District, a hub for apartments, retail, restaurants, entertainment venues and parks.

“The redevelopment of Metrocenter has been long-awaited by our residents, who are eager to welcome a new walkable, urban gathering place in their neighborhood,” Phoenix Mayor Kate Gallego said in a press release. “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.”

At the center of the Metro District will be a 140,000-square-foot retail section. Scottsdale-based national real-estate firm Diversified Partners is developing and constructing the retail area.

“We are excited to partner with Diversified Partners to bring the core of this mixed-use development to life … ,” Nate Sirang, president of Concord Wilshire said. “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.”

What led to Metrocenter Mall being redeveloped?

Metrocenter Mall, located just west of Interstate 17 between Dunlap and Peoria avenues, was built in 1973 and became a destination for Phoenicians in the 1970s and 80s.

As Phoenix grew, the mall struggled to maintain its popularity throughout the 2010s. The COVID-19 pandemic officially put the nail in the coffin for Metrocenter and it closed its doors in June, 2020.

In 2021, Concord, TLG, and Hines began creating plans to revitalize the area and in June 2023 the developers closed on a purchase of the mall, officially beginning the project.