Mark Holder of Red Developement and Ed Bull of Burch & Cracchiolo P.A.

Ed Bull Attorney for Red Developement, provided this email to be able to see updates throughout the process.

Rendition of 400 unit high end apartment complex and a Whole Foods Market
Rendition of Harkins Dine-in Theater

Construction on the first phase of the Paradise Valley Mall redevelopment project, led by Phoenix-based RED Development, is beginning construction and will include a 400-unit apartment complex, a Whole Foods Market and a Harkins dine-in theater.

According to real estate database Vizzda, RED Development sold 20 acres of land to StreetLights Residential for $17.55 million for the mixed-use apartment complex that will include the Whole Foods on the first level. Jeff Moloznik, senior vice president of development for RED, told the Business Journal that the company will remain involved as a partner in that project and any other pieces his firm decides to sell to other developers.

“Like CityScape in downtown, we are involved in the development and management,” Moloznik said. “PV will be such a long-term endeavor and we will be involved in the decades-long effort.”

Moloznik said RED plans to develop some portions and partner with other developers for other portions but has not yet determined the breakdown of each piece.

The group has been surprised by the strong demand from local and national groups for space at the redeveloped mall, ranging from multifamily to office and retail.

“Demand has exceeded our expectations,” he said. “It is definitely shaping up to fulfill the city of Phoenix’s vision as the Paradise Valley Village urban core.”

Plans call for hospitality, retail, apartments and office on the site at Cactus Road and Tatum Boulevard, and Moloznik said they have gotten attention from national groups on the office and hospitality portions but expects those plans to further evolve over the next year.

The apartment portion offer studios, one-, two- and three-bedroom floor plans ranging in size from 504 to 1,750 square feet. The first phase is expected to open in mid-2024.

“We are excited to be part of the redevelopment vision that will restore the activity, vibrancy and sense of community that was prevalent for so many years on the property,” StreetLights Senior Vice President Greg Nadeau said in a statement. “Our residents value walkability and convenient access to amenities and retail; expectations will be exceeded with this mixed-use project.”

Opportunity zone

PV is in a designated “opportunity zone” which affords tax benefits to capital gains that are reinvested into real estate or businesses located in the zones, but Moloznik said the financing for the projects may not come from opportunity fund money. However, the designation does bring some national attention to the project.

“We get a lot of national exposure based on that,” he said.

So far, Harkins, Whole Foods and StreetLights Residential are the only companies to commit to locations at the site, but Moloznik said the company is very close on deals with some other tenants.

By Corina Vanek | Phoenix Business Journal