Lakeside Mall in Sterling Heights, one of the largest shopping destinations in Michigan, will undergo a complete redevelopment that includes new residences, a hotel, office space, retail, dining, parks, and more.
Under the new plan, Lakeside will become a mixed-use lifestyle community offering more than 2,800 multi-family apartments, which includes 750 units for senior housing, nearly 150,000 square feet of retail and dining (in addition to the existing 400,000 square feet), 60,000 square feet of office space, and a 120-room hotel.
The project is projected to add $1 billion in economic activity to the region over the next decade.
The 110-acre mall is located at 14000 Lakeside Circle at the intersection of Hall Road and Schoenherr Road, and is owned by Out of the Box Ventures. The company is a retail subsidiary of Lionheart Capital, a Miami-based real estate development and capital investment firm.
Lakeside Mall, which opened in 1976 and was developed in a joint venture between the late A. Alfred Taubman and Hormat Development, offers more than 1.5 million square feet of space. In its heyday, Lakeside was a prime example of the enclosed suburban mall culture.
Over the years due to changing consumer habits, organic growth of the surrounding city of Sterling Heights, and an overabundance of retail, the mall became unviable as originally constructed.
Out of the Box Ventures purchased Lakeside Mall in 2019 for a reported $26.5 million and began discussions with the city of Sterling Heights as to the best way to reimagine the city center.
“We are honored to be working with the city of Sterling Heights to help breathe new life into an area that has been underutilized for decades, and in so doing, create thousands of new jobs,” says Allison Greenfield, principal and chief development officer of Lionheart Capital.
“Lakeside will provide a wide range of market-rate housing options for all demographics, from the young professional to the senior. Its location close to major thoroughfares, yet away from residential zones, will help to minimize traffic in single-family neighborhoods.”
The developer plans to donate approximately 30 acres to be utilized for a park system, street scape, and infrastructure.
Macy’s and JCPenney will continue to operate at what will be known as Lakeside City Center during and post construction. The project is contingent on the Sterling Heights City Council’s approval at the next meeting on Nov. 1, 2022.
“We are pleased to see the future of Lakeside Mall taking shape,” says Mark A. Hackel, Macomb County Executive. “Hall Road is a vital economic corridor for all of Macomb County, and the continued transformation of Lakeside will lead to additional interest and investment in the corridor.”
In addition to new shops, offices, a hotel, coffee houses, and restaurants, the lifestyle center will offer a large central park that can be used for music, art displays, and events. A two-story community center will be located adjacent to the park and offer such recreational facilities as pools, fitness facilities, and lending libraries. Other amenities will include overlook event spaces, outdoor living rooms, and bike garages.
A collection of newly conceived “great streets,” each with its own distinct character, will be designed to be tech-ready, adaptable, and agile, and support a variety of local business and community events.
“This project will deliver so much of our community’s wish list — thousands of jobs, more restaurants, entertainment, housing, and a complete new look, to name a few,” says Michael Taylor, mayor of Sterling Heights.
“City officials and residents have been waiting for this level of redevelopment of this property for years. The infrastructure required for the project, including roads, sidewalks, and new water and sewer mains will be funded through new property tax revenue generated by the new development and therefore does not require any increased taxes from the city.”
As a result, the project is financially self-sustaining, according to City Manager Mark Vanderpool.
Surrounding the town center will be a one-and-a-half-mile long encircling parkway called the Lyrical Loop that will provide an array of experiences that promote active lifestyles, wellness, and enhanced mobility as well as community greenspaces.
“It’s an exciting time to be in Macomb,” says James O. Sawyer IV, president of Macomb Community College. “This project will create incredible new value and opportunities for our students, graduates and neighbors — and for the next generation of Macomb Community College students.”
The project team, which will utilize local labor sources for the redevelopment, includes Sterling Heights, Lionheart Capital and Out of the Box Ventures, while the master architect and brand strategist is CallisonRTKL. In addition, the landscape design will be overseen by SWA, while the civil engineer is Giffels Webster.
With the acquisition of 5 million square feet of retail space, Out of the Box Ventures, a commercial real estate fund, offers space in Arkansas, California, Colorado, Florida, Georgia, Indiana, Illinois, Kansas, Louisiana, Michigan, Missouri, New York, Oklahoma, Ohio, Pennsylvania, Rhode Island, and Virginia.
For more information, visit lheartcapital.com or ootbventures.com.
