Norfolk mayor says apartments, hotel could replace MacArthur Center

MacArthur Center mall in downtown Norfolk is expected to be replaced by a major mixed-use development, which could be called “The Anchorage,” featuring a 400-room, military-themed hotel and 518,000 square feet of high-rise residential space, Norfolk Mayor Kenny Alexander announced April 12 during his State of the City speech.

“MacArthur Mall demands a bold vision that celebrates our culture, reconnects our city, attracts tourists and ensures economic vitality,” Alexander told a crowd of 1,200 business leaders. “Let’s envision a vibrant mixed-used destination. … By optimizing existing assets, we aim to solidify Norfolk as a premier home for business, living, hospitality, tourism, elevating our city’s appeal to residents and visitors alike.”

The development would have a 518,000-square-foot high-rise residential tower — with possibly 400 to 600 units — with rental and ownership options, plus 47,000 square feet of “luxury amenities” and active ground-floor leases. There would also be a 2-acre pedestrian-oriented promenade with more than 170,000 square feet of retail space. The new development would completely replace the existing mall, except for the parking garages.

Last summer, Norfolk purchased the 23-acre struggling MacArthur Center mall for $18 million, including consulting and legal fees. At the time, Alexander said that buying the mall would enable the city to “play an active and strategic role” in the property’s future.

Earlier this year, Norfolk hired architectural consulting firm Gensler to conduct a study on the mall and what action the city should take with it. Norfolk asked Gensler to examine the feasibility of replacing the mall convention center, as well as other adaptive reuses of the mall and parking structures.

The resulting recommendation from Gensler’s study is the plan Alexander presented in his State of the City speech.

Sean Washington, the city’s economic development director, and a representative from Gensler met with each Norfolk City Council member individually to present the findings. The council had not seen the plan collectively until the SOTC event.

The development would be a public-private partnership, Alexander told Virginia Business, with most of the cost being paid through private investment, he noted.

“If an unsolicited proposal falls on my desk and it meets everything that the council is seeking, … I don’t see why that wouldn’t be considered,” Alexander said.

Washington told Virginia Business the next step is the financial side — looking at what the city is comfortable spending and determining the project’s budget.

“We really have to start with a master developer,” he said. “At that point, you’re identifying the best developer and the components of the project you want to see come to fruition.”

No timeline has yet been established for the project, he said.