Atlanta— Simon Property Group (NYSE: SPG), the owner and developer best known for Class A malls, has broken ground on the $300 redevelopment of Phipps Plaza, an upscale shopping mall located in Atlanta’s Buckhead district.
The project is a redevelopment of the former Belk department store and surface parking space at the 821,000-square-foot, three-story mall. It includes a new, 150-room hotel by Nobu Hotels, a luxury line co-founded by Robert De Niro. The hotel will offer a rooftop pool, spa and a corporate conference center, as well as a Nobu Atlanta Restaurant, a Japanese eatery that will occupy 10,000 square feet.
The redevelopment will also deliver One Phipps Plaza, a 13-story, 350,000-square-foot office building that features a three-story parking garage.
Other components of the project include a 90,000-square-foot Life Time Athletic Center with a rooftop pool, beach club and bistro. The redevelopment will also create an outdoor event venue and communal green space.
“Phipps Plaza has long been a luxury icon in the Southeast and this expansion will further elevate its exceptional position by creating a reimagined destination to live, work, shop, and dine, unlike any other in the region,” said David Simon, chairman and CEO of Simon.
According to The Atlanta Journal-Constitution, the redeveloped property will not feature any new retail stores. The paper also reported that Simon could receive as much as $9.5 million in tax breaks for the project.
Phipps Plaza is home to a 14-screen AMC Theatres, Legoland, Arhaus, Nordstrom and Saks Fifth Avenue.
The Beck Group, a Dallas-based design/build firm, is serving as architect and general contractor for the project. The property is scheduled to open in phases beginning in early 2021.
The stock price of Indianapolis-based Simon closed at $173.11 per share on Thursday, Oct. 18, up from $165.52 per share a year ago.
— Taylor Williams and John Nelson