Sterling Heights and an out-of-state developer have big plans for the city’s struggling mall.
Lakeside Mall sold this week to Out of the Box Ventures, a subsidiary of Miami-based Lionheart Capital, for $26.5 million, Crain’s Detroit Business reported. New owner Ophir Sternberg is planning a mixed-use redevelopment, though no specifics have been released.
Sternberg told Crain’s that the redevelopment could include residential, entertainment, hospitality, medical, or office space. Retail will still be an essential component and as much of the existing building will be preserved as possible.
The city of Sterling Heights had been trying to attract developers with mixed-use plans for the site that resembled a downtown city center. Less parking requirements and new zoning designations could reduce the number of spots required and allow for more buildings.
It’s not known how much such a project would cost, though an economic development consultant told Crain’s the number could be in the hundreds of millions of dollars.
The 1.5 million-square-foot mall opened in the late 1970s with several anchor tenants. Two of them, Lord + Taylor and Sears, left in recent years leaving hundreds of thousands of square feet of commercial space vacant.