Los Arcos Mall: From Retail Landmark to Innovation Hub
by Nick Law
Los Arcos Mall was an enclosed shopping center located at the southeast corner of Scottsdale and McDowell Roads in Scottsdale, Arizona. Open from 1969 to 1999, the mall showcased a Spanish architectural theme, drawing its name from the Spanish term for "The Arches." In the 1990s, as shoppers gravitated toward the expanding Scottsdale Fashion Square, Los Arcos saw a decline, ultimately losing both of its anchor stores. Sears, the last remaining anchor, relocated to Fashion Square in February 1999.
Following its closure, the property became entangled in controversial redevelopment proposals. Plans for a Phoenix Coyotes hockey arena collapsed due to disputes between developers and city officials, while a separate retail redevelopment effort was met with strong neighborhood opposition. Eventually, the site was acquired by the Arizona State University (ASU) Foundation and redeveloped into SkySong, a mixed-use technology and innovation hub featuring office spaces, retail establishments, and residential units.
Opening and Development
Construction of Los Arcos Mall began in October 1968, and it formally opened on November 21, 1969. However, its two anchor stores - Sears and Broadway-Hale Stores - began operations a month earlier, on October 20. At its grand opening, only 30 of the planned 70 inline stores were ready for business.
Designed by the Los Angeles-based architectural firm Burke, Kober, Nicolais, and Archuleta, the mall’s interiors featured murals by Mexican artist José María Servín, along with a gazebo crafted in Mexico City. The Broadway store was designed by Charles Luckman.
Phoenix-based Westcor Partners, led by Russ Lyon Jr. and John L. Holmes, developed Los Arcos as their first enclosed mall after previously working on the open-air Tower Plaza. The mall was built at a cost of $6 million (excluding the department stores) on a 41.9-acre site. It had a cross-shaped layout with air conditioning and two major anchor stores:
Additional features included an inline movie theater and three outparcel buildings for automotive centers and a bank.
Decline
The mall’s decline began in 1979 when the larger Fiesta Mall opened in Mesa, featuring both Sears and Broadway as anchors. Los Arcos saw a 5% drop in sales as shoppers opted for the newer mall. During the 1980s and 1990s, Scottsdale Fashion Square underwent multiple expansions, solidifying its status as Scottsdale’s premier shopping destination. Meanwhile, population growth in Scottsdale moved northward, limiting the potential for Los Arcos to attract new customers.
In 1988, Westcor sold Los Arcos to Equity Properties and Development Company, owned by Sam Zell. The new owners initiated a significant renovation project, completed in 1990, which included new tile flooring, skylights, a 280-seat enclosed food court, and asbestos removal.
Despite these efforts, by 1995, the mall was struggling. That year, Federated Department Stores acquired The Broadway chain and converted most locations into Macy’s stores. However, the Los Arcos Broadway was not included, leading to its closure in November 1995. In response, the city of Scottsdale designated the mall as a redevelopment zone. Equity attempted to revamp it into a power center anchored by Home Depot, but those efforts failed.
Failed Hockey Arena Proposal
In 1996, Phoenix-based Ellman Companies, led by Steve Ellman, purchased the mall for $14 million, excluding the Sears building. Ellman initially proposed a mixed-use complex anchored by a movie theater but later shifted focus to a $140 million hockey arena for the Phoenix Coyotes, citing poor sightlines at their existing venue, America West Arena.
The $600 million project was met with significant community opposition, particularly regarding its reliance on state sales tax revenue. Despite passing key votes in May and November 1999, internal conflicts between Ellman and Coyotes owner Richard Burke stalled progress. Burke eventually put the team up for sale, and in April 2000, Ellman purchased it for $87 million, with NHL Commissioner Gary Bettman approving the deal.
Demolition of Los Arcos began in May 2000, though businesses like Red Robin and two banks remained operational. However, tensions between Ellman and Scottsdale officials escalated, and in April 2001, Ellman abandoned the Los Arcos site in favor of Glendale, where he later developed Gila River Arena and the Westgate Entertainment District.
Los Arcos Town Center Proposal and Its Collapse
After the hockey arena project failed, the Ellman Companies proposed a big-box retail center anchored by Walmart, Sam’s Club, and Lowe’s in 2002. Scottsdale officials were hesitant due to lingering conflicts with Ellman, and the plan faced strong neighborhood opposition.
In July 2003, the Scottsdale City Council narrowly approved the project, but residents launched a referendum against the proposed $200 million taxpayer subsidy. As opposition grew, Ellman ultimately abandoned the project in early 2004, leaving the site without a clear future.
SkySong: The Redevelopment of Los Arcos
In 2004, the ASU Foundation, the City of Scottsdale, and the Ellman Companies reached an agreement: Ellman sold the land for $41.5 million to the ASU Foundation, which in turn conveyed it to the city. ASU envisioned a technology and innovation hub that could generate up to 4,000 jobs.
The project, initially named the ASU Scottsdale Center for New Technology and Innovation, underwent a design competition in 2005. The winning concept featured large shade sails, later named SkySong, and was inspired by La Rambla in Barcelona. The site was rezoned in June 2005 to permit taller buildings, though community concerns led to modifications in the shade structure’s design.
Construction began in 2006, and SkySong officially opened in 2008 with two office buildings. Expansion accelerated in the 2010s:
Current Tenants and Features
SkySong is home to major companies such as Oracle Corporation, Groupon, Limelight Networks, and Banner Innovation Group. Arizona State University maintains offices and a business incubator on-site. The complex also includes a hotel, a 325-unit apartment complex, restaurants, and additional mixed-use spaces.
Today, SkySong stands as a successful innovation hub, replacing what was once one of Scottsdale’s most controversial and debated properties.
Representative at Beatrice Companies, Inc.
10 小时前Remember Los Arcos mall back in 1979 and early 1980's. This was a really nice mall, and was sad to see it go.
Executive
11 小时前Good article. A lot of memories from that intersection.
Velocity Retail Group Retail Tenant & Landlord Advisor | Arizona
13 小时前Very informative Nick