Phoenix Development News (3)

[CANUC]

As a OG lurker I have to admit DT has changed.

[Obadno]

Originally Posted by CANUC

As a OG lurker I have to admit DT has changed.

Indded.

[ASU Diablo]

Well this is a bummer...Metrocenter development already getting gutted.

https://www.bizjournals.com/phoenix/...l-phoenix.html

Scottsdale-based Diversified Partners LLC is the latest company to join the robust team spearheading the redevelopment of Metrocenter to build 140,000-square of new retail space as the developers kick off demolition of the 50-year-old mall.

The $850 million transit-oriented project, called the Village, is set to bring more affordable housing options and a large mix of stores, restaurants and entertainment uses centered around a large public park and plaza across 65 acres in Phoenix.

Diversified Partners, a national development firm known for its prominent retail projects in the Valley, plans to announce a name and amenities for the retail project, which is expected to feature an "eclectic" mix of shops and food and beverage options.

"We envision this prime property becoming one of the top destinations in Arizona," said Walt Brown, CEO of Diversified Partners, in a statement.

Metrocenter is one of several regional malls in the Valley to be torn down for a modern mixed-use concept and is being developed by a group including Concord Wilshire, TLG Investment Partners, CDS International Holdings Inc. and Hines.

Earlier this month, the developers secured an initial $24.5 million loan through Florida-based real estate investor Fuse Group Investment Cos. for the abatement and demolition process, as well as for site grading.

The city of Phoenix has also issued three demolition permits valued at nearly $4 million to Los Angeles-based Resource Environmental Inc. That includes the removal of the former U-Haul/Macy's building, the former Dillards and the main shopping mall totaling 568,615 square feet.

That process is expected to be completed in about a year, with another year planned for infrastructure construction on the site. Some residential development could also start construction as the infrastructure is built out. One of the development partners, Houston-based Hines, will oversee construction of the Village including the public infrastructure such as streets, water, sewer, parks, parking structures and more.

Metrocenter project will no longer include office, hotel uses
Since it was first proposed, plans for the Metrocenter project have shifted due to challenges in the commercial real estate market such as an oversupply of multifamily units and struggling hotels in the area.

The developers had at one point planned for nearly 3,000 multifamily units and 383,000 square feet of commercial space across retail, office and hospitality uses at full build out.

The most recent proposal and calls for substantially less multifamily and does not include plans for hotels or office — which are not considered viable right now or in the reasonable future, according to the developers.

The Village will now include a minimum of 1,100 residential units or eventually up to 1,940 units that could include a mix of multifamily, for-sale housing such as townhomes or other high-density options, according to the latest development agreement with the city.

The developers are exploring options and designs for housing products from across the nation and targeted at first-time homeowners or employees at major project sites in Phoenix such as Taiwan Semiconductor Manufacturing Co.'s north Phoenix campus, which is located about 20 minutes north of Metrocenter.

"We would love it if we could be able to deliver some first-home buyer product at a reasonable price point this close into the center of the Valley," said Steve Betts, senior development director for Concord Wilshire. "That would be a home run for the community if we could pull that off, but time will tell over the next several months or year as to whether we can make that product work here."

On the commercial side, the Village will now include at least 100,000 to 240,000 square feet of space across retail, restaurants, entertainment and other amenities centered around a 3-acre public park and plaza with an amphitheater, water features, open lawn, seating areas, public art and more.

The overall development will also incorporate the newly opened light rail station and route that could expand farther west in the future with new bus routes extended to nearby employers along Interstate 17 such as TSMC.

Phoenix Mayor Kate Gallego said the long-awaited project will bring a walkable, urban gathering space to the neighborhood.

"Though we will reminisce about fond memories over the years at Metrocenter, we are excited to witness the transformation of this iconic landmark into a modern and dynamic space to live, shop, eat and enjoy," Gallego said in a statement.

Earlier this year, the city of Phoenix updated how it planned to reimburse the developers for public infrastructure improvements since cities will no longer be able to collect residential rental tax starting in 2025.

Now some of those improvements will be paid for through sales tax generated through the city's parks, transportation and convention center, as well as sales tax and parking garage revenue generated from the project as originally planned.

Thursday, October 10, 2024

[exit2lef]

Originally Posted by ASU Diablo

Well this is a bummer...Metrocenter development already getting gutted.
]

We need more housing above all else, but to build only housing at this site seems like a missed opportunity to create a walkable mixed use environment. I'd love to see the people behind Culdesac in Tempe build something here but with a bigger retail component.

[xymox]

Originally Posted by exit2lef

We need more housing above all else, but to build only housing at this site seems like a missed opportunity to create a walkable mixed use environment. I'd love to see the people behind Culdesac in Tempe build something here but with a bigger retail component.

Watch - it'll become a big 'for rent' single family tiny home project...

[MiEncanto]

It's not getting gutted so much as it's coming back to reality. There's zero chance they were going to get that project green lighted as it was originally drawn up. sorry for being a broken record on this one but the project was always a distant dream at that location.

[DesertRay]

Originally Posted by MiEncanto

It's not getting gutted so much as it's coming back to reality. There's zero chance they were going to get that project green lighted as it was originally drawn up. sorry for being a broken record on this one but the project was always a distant dream at that location.

Also seems like a reevaluation based on the political winds. Entry level housing tax credits seem likely, regardless of who wins the POTUS election, and that might be a way to most easily convert it into value.

[CrestedSaguaro]

Slow week, so a little tidbit of info. A 255' Tower crane app was submitted for the UofA CAMI. I haven't seen any permits pulled yet.

https://oeaaa.faa.gov/oeaaa/external...2336382&row=15

[ASU Diablo]

Sounds like some decent height might be going up on the SEC of 3rd & Van Buren St, north of St Mary's Basilica (current parking lot). Was originally supposed to be 2 floors but now is considered "major".

https://www.bizjournals.com/phoenix/...c-diocese.html

As the Roman Catholic Diocese of Phoenix celebrated a ribbon cutting ceremony on Tuesday for its third seminary house in downtown Phoenix, there were hints of more real estate projects to come.

For the past year, the diocese has been expanding its seminary school in Phoenix so that seminarians — students who are studying to become priests — never have to leave the state again to achieve that goal.

On Oct. 1, the diocese opened St. Mary's House on the campus of the historic St. Mary's Basilica in downtown Phoenix.

A 75-year-old structure that served as a former friary at the church was retrofitted to house 20 men in their philosophy year. The project was financed by an undisclosed donation from the Diane & Bruce Halle Foundation.

This year, there are a record 50 seminarians studying to be priests in the Diocese of Phoenix's Nazareth Seminary program. St. Joseph's House will be the fourth and final house expected to open in fall 2026 for men in their final year of study, known as their theology year, before they are eventually ordained as priests in 2030.

Meanwhile, Father John Muir, the vicar general for the diocese and the pastor of St. Mary's Basilica, said another multimillion-dollar real estate project is in the works to build a center that will be used for meetings, fellowship and education.

It also will include a mental health ministry space, a coffee and gift shop, among other amenities to serve the downtown Phoenix community and the young adults from nearby universities. A structure would be built on the north side of the Basilica, and a bit east into the grassy area of the campus at 5th and Van Buren streets. Originally, the building was envisioned to have two floors on a relatively small footprint, said Muir. There's enough room for a 20,000-square-foot foundation, he added, but he said the exact number of floors isn't yet decided. Once the concept is finalized, the project would be taken to the city for zoning approval, he said. If approved, Muir said he would like to see construction start by fall 2025 and be finished within eight to 12 months from the start of construction.

"A lot of things have to go right to make that happen," he said.

An grant from the Virginia G. Piper Charitable Trust will help pay for project. Muir would not disclose the amount, but said it was "very generous."

[exit2lef]

Originally Posted by ASU Diablo

Sounds like some decent height might be going up on the SEC of 5th & Van Buren St, north of St Mary's Basilica (current parking lot). Was originally supposed to be 2 floors but now is considered "major".

https://www.bizjournals.com/phoenix/...c-diocese.html

The location seems off. This must be going on the SEC of 3rd St. & Van Buren. That's where there's surface parking. The SEC of 5th St. & Van Buren is the Mercado.

[combusean]

I don't think there's going to be that much height.

It doesn't make ultimate sense to obstruct the north facade of the Basilica. What I think is more likely is they're going to build on the NW corner of the lot and over what is currently the covered parking area, that's an absolute maximum of ~9,000 square feet.

I asked ChatGPT because I have no idea how much space a seminary needs, it came back with not even 30,000 square feet once you add in an activated ground floor. A 4 story building seems about right presuming 50 students are living on campus. I also asked ChatGPT how many seminarians would be needed for the diocese of Phoenix and Tucson, and it came back with 30 - 55, so I don't really see this building needing to get much bigger.

I don't see that being more than $15 million or so which additionally tracks with how big the Halle Foundation can support with a bit of additional help from Piper.