Phoenix-based Vestar continues its focus on new development with more than 4 million square feet recently completed, under construction or pre-development.
Vestar has long been known for being the go-to developer in the Phoenix area for retailers. The company has developed a cadre of well-known retail environments in the area, including Desert Ridge Marketplace, Tempe Marketplace and Queen Creek Marketplace. Today, the company has 72 centers under ownership or on its robust third-party management and leasing platform. It has also recently completed 750,000 square feet of new retail development in Arizona with an additional 1 million square feet of active projects and another 2.4 million square feet in pre-development. Vestar also continues to acquire premier properties that complement its 30-million-plus-square-foot retail portfolio within its footprint of eight western states.
Shopping Center Business recently met with President and CEO David Larcher at Vestar’s Phoenix headquarters to discuss the company’s three-sided approach to growth.
Development Leader
Vestar has made a name for itself since the 1980s as a developer of high-quality shopping centers in Phoenix and throughout the Western United States. That reputation continues today, with tenants like Walmart, Target, Costco and TJX driving many of the company’s new development projects. Because it has been active in the Phoenix market — where most of its development pipeline is — for 35-plus years, Vestar has deep relationships with local municipalities and landowners.
“We work years in advance with municipalities on the placement of roadways and other infrastructure to maximize the site,” says Larcher. “This benefits our center, of course, but in the end this also works to the benefit of the municipality through increased sales tax revenue.”
Vestar began identifying land in Queen Creek, Arizona, in 1999, when there were approximately 3,000 residents in the city. Today, there are more than 100,000 residents and Vestar recently completed its third center in the area. Along the way it worked with the city to modify roadway placement and seek strong sites for future retail developments.
Last year, the company opened the 400,000-square-foot Queen Creek Crossing, anchored by Costco with Ashley Furniture, BJ’s Restaurant and Brewhouse, and Hobby Lobby, among other tenants. This fall, the company opened Vineyard Towne Center, a 260,000-square-foot project anchored by Target and Sprouts Farmers Market. This location features a new prototype from Target, which has large windows and an open, airy environment.
These two developments join the 900,000-square-foot Queen Creek Marketplace. This established project is anchored by Target, Kohl’s, Harkins Theatres, Ross, Trader Joe’s, T.J. Maxx, Old Navy, PetSmart, Mountainside Fitness and serves as the benchmark of Vestar’s vision for the area.
“We consider all development projects public-private partnerships to some degree,” says Larcher. We collaborated with Queen Creek early on to ensure that roadways and easements were properly placed so that as they grow, we could grow the tax base which could provide the city economic benefits and amenities that enhance residents’ quality of life. Each of our development projects has a story like that behind it.”
The Phoenix market has also seen tremendous growth, with more to come. The semiconductor business is booming in the market, with two large manufacturing facilities under construction. Those facilities also bring in a number of supplier facilities, which will ultimately lead to the creation of tens of thousands of jobs in the region.
“Anchor tenants rely on us to know where the best locations are,” says Larcher. “Because we have been in the market for more than 35 years, we know where the roads are going, where growth is headed and where the infrastructure is being put in place. That enables us to identify and secure sites years ahead of development.”
Over the past 18 months, Vestar has completed 750,000 square feet of retail projects in metro Phoenix. The company’s latest project to come online is The Shops at Lake Pleasant in Peoria, Arizona, located adjacent to Vestar’s existing 650,000-square-foot Lake Pleasant Towne Center. The center adds additional convenience retail and more dining options to the area. Retailers at the project include In-N-Out, Raising Cane’s, Honor Health and Over Easy.
Vestar has approximately 1 million square feet of projects under construction, representing about $485 million in investment. Opening in summer 2026, Verrado Marketplace is a $275 million project in Buckeye, Arizona. The 500,000-square-foot center is anchored by Target, Safeway, Ross, Marshalls, HomeGoods and Harkins Theatres’ new BackLot concept. Restaurants joining the center include OHSO Brewery, Shake Shack, BJ’s Restaurant and Brewhouse and Salt Tacos + Tequila.
Vestar has recently received entitlements for Laveen Towne Center, a 500,000-square-foot project in the Southwest Phoenix metro area. The company plans to start construction in summer 2026, with opening planned for late 2027. Anchor tenants for the $210 million project include Walmart, Sam’s Club and Fat Cats.
Vestar currently has seven retail centers in pre-development, consisting of about 2.5 million square feet of space. Each of the projects have anchor tenants committed. Among those new developments is Gateway Crossing, located in the Southeast part of the Phoenix metro area. The 225,000-square-foot project will be anchored by Sam’s Club and will feature several pads with shops, restaurants and two hotels. The center is located in an area of high residential and employment growth, close to new facilities for Google, Meta, LG and Apple.
The largest project the company has planned is Legacy Park, which will be a multibillion-dollar mixed-use project of approximately 4.4 million square feet in Mesa. The project is located near the Phoenix-Mesa Gateway Airport, which continues to expand as the reliever airport for Phoenix’s main Sky Harbor Airport. The airport recently opened a new five-gate concourse and now has commercial service to 45 destinations via airlines Allegiant and Sun Country. It has plans to expand operations to allow more flights over the next few years. Because of this, companies are relocating to the area.
Legacy Park is planned to have about 300,000 square feet of ground floor lifestyle retail and restaurant space, with approximately 700 units of multifamily above, along with more than 3.4 million square feet of office space and a 600-room resort hotel. An 11-acre lake will also be built as part of the project. Entitlements are in place for 3.5 million square feet of office space and up to 2,500 multifamily units for future development.
“Legacy Park will really create a downtown for the Southeast Valley,” says Larcher. “It is designed to be a dense, urban project that will create a walkable community. We are looking to create a curated blend of bespoke retail, chef driven restaurants and design excellence in a pedestrian-oriented environment.”
On the north side of Phoenix, near its Desert Ridge Marketplace, Vestar has plans to develop a 120,000-square-foot grocery-anchored center called Black Mountain Village. The project will break ground in spring 2027, with a planned opening in winter 2028. Grocery stores are lacking in the trade area as the population has grown, and Black Mountain Village plans to alleviate that need.
Vestar also has several other projects planned in the North Phoenix market. Those include Black Canyon Towne Center, a 500,000-square-foot regional power center to launch in late 2027; Dove Valley Towne Center, a 600,000-square-foot mixed-use project that will feature dining, shopping and entertainment that will break ground in late 2027; and Vistancia Towne Center, a 250,000-square-foot power center planned for a future groundbreaking.
“These projects are all in high growth areas in the suburban market,” says Larcher. “They are all mostly driven by big box growth — Walmart, Target, Costco and Sam’s Club being the leaders. A lot of their physical growth has to do with e-commerce. These retailers have discovered that their e-commerce sales are lower in areas where they do not have a physical store.”
As a point to this, Larcher explains that the new Target store at Vineyard Towne Center is 145,000 square feet; 30,000 square feet is used for last-mile fulfillment for online orders. Similarly, the recently opened Sam’s Club at Vestar’s Tempe Marketplace does not have cashier checkout locations; shoppers use the app to shop and pay for goods.
Third-Party in Focus
Vestar’s third-party management platform currently oversees nearly 45 properties, reflecting the company’s continued growth and strong performance for its institutional owners across the Western United States. This effort has been exceptionally strong throughout California, where the company manages 12.5 million square feet of retail space. Notable properties include Pacific Commons in Fremont, Downtown Pleasant Hill in Pleasant Hill, and Cerritos Towne Center in Cerritos.
Earlier this year, Vestar was awarded the management of a portfolio of more than 600,000 square feet of premium retail in Southern California by Nuveen Real Estate. Included in that portfolio are Campus Marketplace in San Marcos, The Pavilion at La Quinta in La Quinta, River Oaks Shopping Center in Santa Clarita, Old Grove Marketplace in Oceanside and Bear Creek in Wildomar.
Vestar also manages nearly 6 million square feet throughout Arizona including Scottsdale Promenade in Scottsdale, Novus Innovation Corridor in Tempe and Superstition Gateway in Mesa.
Premier Acquisitions
This year, Vestar acquired Scottsdale Quarter, the dynamic 755,000-square-foot mixed-use destination encompassing more than 400,000-square-feet of thoughtfully curated retail and dining experiences, 600 upscale residential units, and 300,000 square feet of premier Class A office space. A $100 million capital improvement program will further position the property as a premier luxury retail destination while significantly expanding its Class-A office offerings. The project attracts more than 4.5 million visitors a year and is home to a number of nationally recognized retailers, including Apple, RH, Lululemon, Dominick’s Steakhouse and True Food Kitchen.
Vestar has always focused on development when factors are favorable, acquires when opportunities arise, and prioritizes third party management for a steady stream of cash flow no matter the economic climate.
“We are able to leverage our expertise and relationships to help institutional clients operate their assets,” says Larcher. “Our secret sauce really has been our deep relationships with major retailers and our longstanding ability to work with the different municipalities to grow their revenue through sales taxes. We focus on delivering best-in-class product in our niche and carry that reputation with both groups.”
Leasing is a key part of that strategy. The company has benefitted from the lack of new development in the retail sector over the past decade. The company likes to think ahead — its combined management and ownership portfolio is 97 percent leased with more than 3,600 tenants. Because the centers it manages are Class A, Vestar is seeing a lot of interest from former enclosed mall tenants who now want to locate in open-air environments.
“Effectively, many of our town center projects are becoming the regional mall of their trade areas,” says Larcher. “In many of the areas where we are active with our owned portfolio and our third-party portfolio, the regional mall has closed. We are seeing tenants like Sephora, Bath & Body Works, Victoria’s Secret and others that one used to only see in the mall now locating in power and neighborhood community centers.”
With its long pipeline of development and growing third-party management business, Vestar is poised to succeed at growing retail in a time when retail has not seen a lot of new development.
“While our markets are hovering around 4 percent vacancy for retail space, in Arizona the climate is right for development,” says Larcher.
“We are seeing tremendous population growth alongside economic development and a strong increase in new business growth, like advanced manufacturing and data centers that bring many new jobs. That’s creating a great backdrop for new retail in the market.”
— Randall Shearin
This article was originally published in the December 2025 issue of Shopping Center Business magazine.