Transformative $1 Billion Redevelopment of Michigan’s Lakeside Mall Set to Boost Sterling Heights Real Estate Market

The Sterling Heights Real Estate landscape is on the brink of a significant transformation with a massive redevelopment project in the works. Out of the Box Ventures, subsidiary of real estate development and investment firm Lionheart Capital, has announced the closure of Lakeside Mall on July 1st to pave the way for a groundbreaking $1 billion redevelopment project. This remarkable initiative aims to convert the mall into a 110-acre town center, offering a mix of residential, commercial, and recreational amenities that promise to improve the already stabilized market and attract new investment opportunities for owners in and throughout the surrounding MSA’s.

A Vision for the Future

The redevelopment plan for Lakeside Mall began in November 2022 when an MOU was executed between Out of the Box Ventures and the City of Sterling Heights. The redevelopment plans involve the creation of 2,803 units for senior housing, 150,000 square feet of retail space, a 120-room hotel, 60,000 square feet of office space, and a range of recreational facilities, restaurants, and ample parking. This project reflects a strategic move by Out Of The Box and Sterling Heights to transform the underperforming mall into a vibrant, mixed-use town center that creates major upside for local owners and tenants.

Historical Context and Economic Implications

Lakeside Mall has experienced a steady decline over the past decade, defaulting on a $144 million loan in 2016 and subsequently being acquired by Lionheart Capital for $26 million in 2019. Recognizing the potential for revitalization, Out Of The Box Ventures obtained permission from the city in late 2022 to demolish the existing mall and embark on this extensive redevelopment project. Construction is expected to commence in late 2025.

Market Impact and Opportunities

The redevelopment of Lakeside Mall presents a substantial upside for the Sterling Heights real estate market, which has seen occupancy and rent growth stabilize after a period of decline. The new town center is expected to attract a diverse mix of tenants and owners leading to higher occupancy rates and increased rental prices in the surrounding areas.

For multifamily property owners in the Sterling Heights MSA, this project represents a significant opportunity. The influx of new residents and businesses will drive demand for nearby housing, creating favorable conditions for property owners and investors. Moreover, the enhanced amenities and improved infrastructure will make Sterling Heights an even more attractive destination for prospective tenants.

In conclusion, this Lakeside Mall redevelopment project is a huge opportunity for owners and tenants in Sterling Heights and in surrounding suburban areas, signaling a new era of growth and prosperity for the local real estate market. As the project progresses, it will be crucial for investors and property owners to stay informed and capitalize on emerging opportunities that will follow with this project such as potential rent growth and improved occupancy in their multifamily investments. The transformation of this iconic mall into a thriving town center is set to bolster the community, elevate property values, and stimulate economic activity in Sterling Heights for years to come.