Michigan's Largest Mall Gets $1B Mixed-Use Redo
Lakeside Mall in Sterling Heights, which opened in 1976, to be replaced with new town center.
The owner of the 1.5M SF Lakeside Mall in the Detroit suburb of Sterling Heights has announced that the struggling indoor mall will close on July 1 so that most of it can be torn down to make way for a $1B mixed-use development.
Out of the Box Ventures, a subsidiary of Miami-based Lionheart Capital, announced the closing of the regional mall—the largest mall in Michigan in terms of leasable space—which opened in 1976. Out of the Box Ventures purchased Lakeside Mall in 2019, after a previous owner defaulted on a $144M mortgage.
Last month, Sterling Heights accepted a $3M grant from the Michigan Economic Development Corp. to help Lionheart buy two defunct department stores at the mall, Sears and Lord & Taylor, from other owners, clearing the way for the redevelopment, according to a report in the Detroit News.
“Lakeside Mall’s closure marks the beginning of an exciting transformation,” Allison Greenfield, principal and chief development officer of Lionheart Capital, said in a statement. “We are committed to collaborating with the City of Sterling Heights to create a vibrant urban center that celebrates the area’s unique character and history.”
In November 2022, the Sterling Heights City Council approved a memorandum of understanding with Out of the Box Ventures to redevelop the 110-acre mall into mixed-town center that will feature residences, offices, retail and a hotel surrounding a new city park.
Groundbreaking on the development, called Lakeside Town Center, is set for late 2025, the report said.
“Sterling Heights eagerly anticipates the Lakeside Mall redevelopment, which aligns with our community’s vision for innovation, enriched living, creation of distinctive areas, connectivity and accessibility,” Sterling Heights Mayor Michael Taylor said, in a statement.
The preliminary plans for Lakeside Town Center that were unveiled in 2022 called for more than 2,800 apartments, including 750 units designated for senior housing, 60K SF of office space and a 120-room hotel. The original plans for retail indicated that Macy’s and JC Penney stores at the mall will continue to operate at Lakeside Town Center “during and post construction.”
The development will include walking, biking and hiking trails that will connect with the Iron Belle Trail, Freedom Trail and Dodge Park Trail.