Tempe Development Thread

[CB1]

[CB1]

Development NE of McClintock and Apache.

[CA7]

Originally Posted by Mr.RE

In other news, according to the development tracker the 955 e university mixed use project is planned to be 208' tall and 539 units. That will be the tallest building in that Rural/University area I think. Excited to see renderings soon.

Hmm interesting spot for a project that tall considering anything else like it is going in by Mill or the waterfront but maybe with Novus developing in it won't stick out as much in that area.

[muertecaza]

June 13 DRC meeting will have a lot of good information:

• 955 University will have a presentation in the Study Session
• The full commission will decide on 211 E. 7th St.
• They will also decide on Skye Tempe
• They will also decide on 'The Marshall at Tempe,' a proposed 7-story development at 1057 E. Apache. That address is sort of between the garden apartments at 1111 and the Sleep Inn at 1031, so not sure where exactly it's going and what if anything it's replacing.

[ASU Diablo]

https://www.bizjournals.com/phoenix/news/2023/05/24/south-pier-tempe-large-construction-loan.html

The developer of South Pier along Tempe Town Lake has secured a hefty loan to finance the completion of the first phase of the mixed-use project.

The multibillion-dollar mixed-use project from developer South Pier Tempe Holdings LLC, an entity of Washington state-based McBride-Cohen Management, is being developed across 18 acres along Vista Del Lago Drive on the Tempe lakefront. McBride-Cohen started construction on the first phase earlier in the year, which will include three apartment towers totaling 724 units and 26,000 square feet of retail on 3.3 acres.

McBride-Cohen said that it has secured a $223 million loan through Mexico-based Banco Inbursa — a bank owned by billionaire Carlos Slim — and Chicago private equity firm Pearlmark. McBride-Cohen is the lead developer on the project and is working alongside New York firms Cantor Fitzgerald and Silverstein Properties for the first phase of the development.

“The closing of this construction loan is another step toward delivering a world-class waterfront destination that will benefit the entire region,” said Loren McBride Cohen, CEO of McBride Cohen, in a statement. “We thank our partners at Cantor Fitzgerald and Silverstein for their belief in this project and are hard at work making this dream a reality.”

South Pier at Tempe Town Lake
The three apartment towers in the first phase are expected to be completed in the next 42 months with the towers completing construction on staggered schedules. Cohen said he expected the first occupancies to take place by the end of 2025 and the towers to complete in full by 2026.

Housing, retail also part of the project
In addition to the towers in the first phase, South Pier will have more housing units and retail that will be built in subsequent phases. McBride-Cohen will build more than 2,500 units across rentable apartments, condominiums for purchase along with senior housing. The developer also plans two luxury hotels, more than 600,000 square feet of high-rise office space and a multi-acre entertainment district including restaurants, nightlife experiences, concert venues, fountain shows and a large Ferris wheel.

A two-acre public park called "The Central Green" is at the heart of the project.

McBride-Cohen expects to move forward on several of those developments at the beginning of 2024 with an office tower, a luxury hotel, a for-sale condo tower, a senior housing tower, additional retail space and multifamily housing units all in the works.

McBride-Cohen is working with Lee & Associates Arizona's Bill Blake and Colton Trauter for office leasing, Western Retail Advisors for retail leasing and Greystar for management at the apartment towers.

Construction costs could now exceed $4 billion for the complete build-out of South Pier. The project will total 18 buildings and construction is expected to last over the next eight to 12 years.

Clayco is the general contractor for the first phase of the project while The Davis Experience is the architect.

With arguably the best views in the Valley, nearby amenities and some of the region's biggest and newest office buildings, the area around Tempe Town Lake is some of the most sought-after office space in the Phoenix metro.

Earlier this year, advocacy group Central Arizonans for a Sustainable Economy, now known as Worker Power, fought in the Arizona courts to bring a referendum for Tempe residents to vote on the South Pier project, citing a lack of affordable housing. The group withdrew its petition in March, the Arizona Republic reported.

[Obadno]

Looking great! i really hope it comes through!

[IndyAZ]

I heard that 100 Mill Hotel site was sold from previous developer to the Hyatt Corporation and they plan to develop that project themselves, so apparently that one will start moving forward on finalizing design again with planned groundbreaking in early 2024.

[muertecaza]

Originally Posted by IndyAZ

I heard that 100 Mill Hotel site was sold from previous developer to the Hyatt Corporation and they plan to develop that project themselves, so apparently that one will start moving forward on finalizing design again with planned groundbreaking in early 2024.

Nice. Was wondering what the hold up was.

[somethingfast]

South Pier looks insane at even 50% of those images. Would definitely take Tempe to next level. Phoenix would have to build a supertall just to compete (wink, wink)

[MMDelon]

South Pier looks incredible. If they are able to build this out in the next 8 to 10 years as planned then it will completely change the east Valley.

[MMDelon]

What Tempe is doing has me looking at Phoenix sideways because this type of development should not happen in a city like Tempe. I know the lake plays a huge part but it’s the planning and staying dedicated to making Tempe a tech hub for business to come and build offices in downtown Tempe. The city is walkable, it’s upbeat, it’s fun and serious at the same time. I’m very proud of the city Tempe is becoming.

[Obadno]

Originally Posted by MMDelon

What Tempe is doing has me looking at Phoenix sideways because this type of development should not happen in a city like Tempe. I know the lake plays a huge part but it’s the planning and staying dedicated to making Tempe a tech hub for business to come and build offices in downtown Tempe. The city is walkable, it’s upbeat, it’s fun and serious at the same time. I’m very proud of the city Tempe is becoming.

Ive bitched for years that the city of phoenix does nothing to get businesses downtown.

They've done great on housing, but they absolutely do nothing to get businesses downtown.

Maybe its because the city is so huge, they can't focus on just downtown? Like the planning and business development office doesn't care if an employer goes up by TSMC and Deer valley, or Desert Ridge, or up by Biltmore or the Airport or Kierland because its all city of Phoenix.

I still maintain that now that downtown has a ton of housing and people and restaurants eventually it will attract offices wanting to locate in that kind of environment but Tempe does a much better job courting employers and higher end developments.

[combusean]

Phoenix has had different priorities and interests. TSMC and Mayo would have never happened in a landlocked small city like Tempe, but was easy in a big city with a lot of room to grow, especially on its exurban/desert inspired northside which continues to be a rehash of the typical economic growth Arizona has seen for decades. Phoenix's central urban interests can barely compete with the expansive northern sprawl. It doesn't help that Phoenix barely even has an economic development department to land big centrally-located office projects, defaulting instead to regional cooperation through GPEC.

There's also something to be said with the economic center of the valley shifting east or otherwise away from downtown which has been a thing ever since the 101 opened. The Airpark was a dusty outpost before that for example. Tempe is close enough to families in like Gilbert or Mesa and can similar attract young people. Phoenix can't say that, especially with its garbage school systems that actively keeps families away.

Tempe's growth, while certainly helped along by the university (something Phoenix has seriously lacked over the years) has a residential component with this project that seems more reminiscent of South Beach or Dubai than student-heavy projects.

And tbf, this sort of destination residential stuff at the lake's quiet eastern end has been dreamed of off and on for many years (Pier 202, The Pier, etc) and will take even more years to flush out. I think it's a completely different market from say Downtown so much it's hard to believe they're in the same state sometimes, let alone several miles apart--I will be surprised if what gets built even remotely resembles this forest of towers.

[MiEncanto]

Originally Posted by combusean

It doesn't help that Phoenix barely even has an economic development department to land big centrally-located office projects, defaulting instead to regional cooperation through GPEC.

Not sure how a 50 person office qualifies as "barely even has a department".

[combusean]

^ I very much seem to recall that Phoenix deferred/defers a lot of its typical big-city economic development responsibilities like promotion and site selection to GPEC, for any number of reasons: I suppose it's better to have someone select a site in any other Valley city than nowhere in the region at all and there's no point in competing with a City-funded economic development group like GPEC namely. Unfortunately this seems too altruistic.

I also remember this forum was pretty miffed at the selection of Christine MacKay as CED director from Chandler...not saying she's done a bad job in this position, but it definitely seemed like the two cities weren't punching at weights respective of their overall size and a regional promotion happened rather than a comprehensive nationwide search.

[somethingfast]

I still think DT Phoenix needs some kind of "signature" element to really attract business interest. It just doesn't have a gravitational pull as a "place" yet despite the growing sense of being "there". People are there yes. But it needs its own Riverwalk or Town Lake or Space Needle...or something like that. I think it sits in pretty much of one of the least attractive basins in the Valley so some visual cue that cements it as the physical anchor of the Valley. It's quite possibly a very small thing but who would've guess that Tempe would develop post Town Lake as it has? Seriously doubt that happens w/o the lake.

[YourBuddy]

I just don’t think they have a big enough vision. Hance Park should have been expanded north and south and redeveloped into something really nice a long time ago.

[CrestedSaguaro]

Edit: Tempe has stellar vision. For a smaller city, they are not afraid to kick ass and take names later. How many other cities in the country have pulled off something like Tempe Town Lake? That took a lot of brass to complete and it has been a massive success story. It could have very well went the other way. But sometimes you just got to roll the dice if you want to make your city a destination. Yea, the Coyotes proposal fell through, but at least Tempe went for it. Where the hell was Phoenix?

Phoenix seems to be afraid to take bigger risks. They could push for an observation tower (well over 500') adjacent to Hance Park. Something more architecturally distinct than any current towers or the dreaded Pin. It would draw visitors and would help bridge the gap between downtown and midtown and give the city something to feel good about.

[DUPio]

Tempe has a vision and sense of place/identity that is rare for cities to develop de novo in this day and age. It already swings way above its weight but give it another 15 years to build out Novus, South Pier, and continue infill near Mill and it’s really going to get some recognition nationally. I’ve been to Austin and Nashville recently and to me these are cities that have a similar feel/momentum to Tempe, albeit on a much larger scale (and it’s a shame Phoenix really hasn’t positioned itself in the same way or extent but slowly getting better). I was very bummed and pissed when the Coyotes proposal fell through because I want to see the vision of Town Lake come to full fruition and for the Valley to have some places that truly kick ass and draw people to visit beyond just the weather. I’m excited to see where things are at even in a couple years. Development moving at an incredible pace.

[MiEncanto]

Originally Posted by CrestedSaguaro

Edit: Tempe has stellar vision. For a smaller city, they are not afraid to kick ass and take names later. How many other cities in the country have pulled off something like Tempe Town Lake? That took a lot of brass to complete and it has been a massive success story. It could have very well went the other way. But sometimes you just got to roll the dice if you want to make your city a destination. Yea, the Coyotes proposal fell through, but at least Tempe went for it. Where the hell was Phoenix?

Phoenix seems to be afraid to take bigger risks. They could push for an observation tower (well over 500') adjacent to Hance Park. Something more architecturally distinct than any current towers or the dreaded Pin. It would draw visitors and would help bridge the gap between downtown and midtown and give the city something to feel good about.

I agree Tempe has had a nice vision but it's also tiny and had the lake basin right there. It was sorta obvious. And they failed 100 times before they got it right. The dam failed. It was literally under water and the debt to pay for the lake has been enormous. It has cost taxpayers millions. And every single tower on the lake had to be massively subsidized because they ask the owners to pay an exorbitant cost for the lake through the lake district. So it has come at a steep price and it took forever.

Phoenix has missed the boat on creating a downtown walkable district as well as a anchor plaza. I've long argued they should have something historic a la the Plaza Mayor in Madrid. I think a GO bond campaign dedicated to creating some historic building space downtown would be well received by voters. It just feels like the city lacks vision for creating cool spaces. All we ever hear about is lane reductions and stuff that pisses people off.