PHOENIX—Walmart announced plans to build a Supercenter at the iconic Metrocenter Mall, at I-17 between Dunlap and Peoria in northwest Phoenix. Work on the project is expected to begin in the first quarter of 2015 with the demolition of the former Broadway building, which has been vacant since 2006. This marks the single largest capital investment in Metrocenter Mall in decades.

Metrocenter Mall opened in 1973 as the biggest shopping center in Arizona and one of the largest nationwide. As previously reported by GlobeSt.com, recent years saw Metrocenter challenged by the establishment of competing regional malls, changing shopping patterns and the Great Recession. Now, Metrocenter Mall owner Carlyle Development Group, the City of Phoenix and community leaders are intent on bringing new life to the area. In mid-March, the Phoenix City Council unanimously approved a redevelopment plan that will, over the coming decade, guide land use, infrastructure upgrades and public transportation for a 2,500-acre area, including Metrocenter Mall. Currently, the retail vacancy rate in the vicinity averages 28 percent, more than double the citywide figure.

The construction of a Walmart Supercenter is a critical part of Metrocenter's turnaround, says Warren Fink, COO of Carlyle Development Group.