D
iversified Partners has joined a consortium to revitalize a 51-year-old shuttered mall in Phoenix with an $850 million retail village featuring nearly 2,000 homes. The Scottsdale developer is part of the group, which includes Concord Wilshire, TLG Investment Partners, CDS International Holdings, and Hines, to replace the Metrocenter mall at 9617 North Metro Parkway West.

    The consortium has begun demolishing the 1.4 million-square-foot mall, which closed in 2020. Plans for the Village now include up to 1,940 residential units, a public park, plaza, and up to 240,000 square feet of shops and restaurants. Initial plans for offices and a hotel were scrapped due to financial feasibility concerns.

    Diversified Partners will announce the retail project's name and features, which will include an "eclectic" mix of shops, food, and beverage options. The City of Phoenix has issued three demolition permits valued at nearly $4 million, with demolition expected to take a year and infrastructure construction another year. Houston-based Hines will oversee construction.

    The development will incorporate a newly opened light rail station and route that could expand farther west to employers along Interstate 17. Developers are exploring options for housing products from across the nation, targeting first-time homeowners or employees at Taiwan Semiconductor Manufacturing Company's North Phoenix campus.