The redevelopment of Paradise Valley Mall got underway Wednesday with the crews starting the demolition process on the 42-year-old indoor mall.
The first phase of the multimillion-dollar redevelopment includes the demolition of the former Sears and Macy’s departments stores and then other portions of the mall. Demolition is expected to continue through the rest of the year, and construction on retail and residential units will begin in the fall of 2021.
Phoenix-based RED Development is redeveloping Paradise Valley Mall, which underperformed for years and wasn’t a desirable destination for shoppers or retailers, into a mix of apartments, offices, restaurants, retail shops and a Whole Foods grocery store. RED is already talking to possible tenants about leasing opportunities.
RED worked with Santa Monica-based Macerich Co. (NYSE: MAC) to get the property rezoned earlier this year, and then Red purchased the property from Macerich for $100 million. Red also purchased the land where Dillard’s was located for $16 million.
The majority of the stores at the Paradise Valley Mall closed on or before March 31 of this year, 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 during the redevelopment process.
After the demo is complete, infrastructure and new roadways will be created throughout the site for the new building pads.