Tempe Development Thread

[Don B.]

^ I'm guessing this ain't gonna happen. Pick any or all from the following menu:

1. In this market, we will be lucky to see buildings three and four of Centerpoint go up at all, much less at 30+ stories. If anything, look for them to get shaved down or cancelled.

2. They'd have to go through the FAA height approval process all over again if they raised the height, and the FAA might very well decide that anything taller would be a hazard to air navigation. The FAA is governmentium, the slowest, hardest substance known to mankind.

3. Developers in Arizona tend to be undercapitalized and/or lack vision, compared to the other major sunbelt states like California, Texas or Florida.

4. The City of Tempe would require an entire new round of permitting that might pose some problems, especially from neighbors and the city council, if they try to go taller.

5. Anything I've forgotten to list here.

Bottom line, it's probably not going to happen.

--don

[ciweiss]

Don - I think you are right especially if they have only sold 25% of the first tower. I hope that is old info though and they are doing better then that. It would be nice to see the 4 towers. I think that would be a cool area. If they do not build the other two towers it would be nice to see the space used well. A parking garage grocery store combo would be great. Especially if it is a Fresh and Easy or Sprouts. They could even build the garage piece under ground and have the grocery store on the first level and still build some town homes above that. The reason I say sprouts is I'm starting to think the Mosaic is not going to happen. Hope not - I would love to see that thing go up. The Pier project appears to be going full speed. It would be cool if we started to see some buildings going up over there by summertime. I ride my bike around Tempe Town lake and it is really starting to come together. Any word on Onyx?

[loftlovr]

Hate to be a Debbie-Downer but I don't think much of any will happen.
If Centerpoint was even 40 or 50% sold, maybe other developers would be less squeemish. I fear it is even less than 25% reserved for Centerpoint.
Most Phoenix highrises are experiencing an extreme amount of cancellation, people walking from their deposits.
Financing is incredibly hard to get for condos in this time in the marketplace. Most condos have to be either 50% sold or 80% pre-sold in order to get Fannie/ Freddie (conventional) financing.
And the conundrum is that buyers are not reserving these days in fear that prices will drop further. So- developers have to build out in order to sell, and thus they cannot get the presale requirements, but to get the 50% "sold" requirement they rely on 50% selling to buyers who can put down 20%....

It is pretty bad!
I do not see many future highrises working for the next 5 years in Tempe or Downtown Phoenix, and I am more than likely a bigger fan of these buildings than anyone. I hope I am wrong.

[ciweiss]

It seems like if you have maybe 5-10% sales in the Mosaic and Onyx and some of the others (Downtown?) and those projects get nixed then some of those people may buy into Centerpoint or some of the other ones that are already going up. I guess the high 300's is not sounding to good for a 650 sf studio these days. Or a two bedroom for 700K. Hopefully this economy will turn around and we see more of these projects starting again. Of course I still would choose a smaller condo near work than buying the same price McMansion that it takes me 1 1/2 hours to commute (each way) to everyday. I still believe DT Tempe is going to be a really sought after place especially once the light rail starts. I noticed that there were 6 places for sale in my Hayden Square complex and we are now down to 2. This is just based off of 1 website I track for these things so that is good. A 1 bedroom condo was down to 169K which is a smoking deal for the local. It went quick. They are usually 200-200K so it will be interesting to see where things go.

[PC2001]

I've already put my reservation/downpayment on a unit in Centerpoint. With the economy so bad, do you think I can still strike up some incentive or discount even with a signed contract?

[HX_Guy]

A cool picture I ran across on Flickr...

[loftlovr]

Originally Posted by PC2001

I've already put my reservation/downpayment on a unit in Centerpoint. With the economy so bad, do you think I can still strike up some incentive or discount even with a signed contract?

It doesn't hurt to try!

[tempedude]

Construction on the parking garage and hotel at 5th St. and Forest Ave., Tempe. What is shown here is basically the parking garage under construction. I spoke to a foreman at the site and he said that the actual hotel construction is set to commence in about 2 weeks. (I think that the hotel is supposed to be something like a 12 story Marriot? Someone correct me if I am wrong please.)


Comerica Bank and retail/office space under construction at 5th St. and Mill Ave. (This used to be the empty shell of a building at that corner for quite awhile. Good to see that something is finally being done with it and its moving along.)




Condos along Farmer Ave. (New ones can be seen under construction.)


CenterPoint update...


Have always liked this vantage point. (Photo taken from beneath light rail bridge looking south down Rio Salado Dr./Ash Ave. towards CenterPoint.)


and...this was taken a couple of months ago, but I wanted to share it here. Photo: Sunset over Tempe Town Lake and the Tempe Center for the Arts[TCA].


All photos were taken with a camera phone...so image quality will not be the best. Sorry.

[Sekkle]

Thanks for the pics. I think the Marriot may be 11-stories, but I could be wrong. Good to know that construction is getting underway. The 30-story centerpoint tower looks tall in that photo! I haven't been back since just before the shorter one topped out, so it will be interesting to see when I'm back there later this month.

[flyer84]

The hotel is going to be an 11-story Marriott Residence Inn with ground floor retail. It should be a really nice addition to downtown Tempe, especially being that its directly across from the light-rail Transportation Center. Here is a rendering from the City of Tempe website:

[KEVINphx]

if you count the floors on that rendering, there are 12.

weird that they are saying it is 11 floors unless the bottom where is appears to be 2 floors is only 1 double height level.

[sundevilgrad]

I've noticed that they have begun work on the area west of Ash & north of University. You know, the thin little strip of land that runs along the tracks. Farmer Arts District?

[Sekkle]

From azcentral...

New apartments going up near Tempe light rail
by William Hermann - Apr. 9, 2008 11:44 AM
The Arizona Republic

Equinox, a large apartment complex under construction at Apache Boulevard and McClintock Drive, will put thousands of folks right next to the Metro light-rail line that opens in December.

And it will be a big factor in the rejuvenation of Apache Boulevard, officials say.

Equinox will have 408 apartments and 956 parking spaces. But 300 of those spaces are being set aside as a park-and-ride facility for light-rail travelers.

Tempe Mayor Hugh Hallman said figuring out how to deal with the park-and-ride aspect of the site was the key to developing Equinox.

Hallman said that agreements with the federal government, which funded much of the light-rail line, called for a 300-space parking facility on what is now the Equinox site.

"We were faced with putting a huge, bare, ugly, asphalt parking lot - a heat sink, an environmentally bad idea - on this site," Hallman said. "But by working with Gray Development, who came to us with plans for Equinox, we created a shaded structure where commuters can leave their cars in shade and safety. But we've also created beautiful places to live with thousands of square feet of retail.

"This is, I believe, the most important light-rail (related) project that has been done."

Bruce Gray is president of Phoenix-based Gray Development. He said intense planning went into creating an apartment complex that would wrap around a parking structure and also include retail space.

He also said a great deal of research went into considering the viability of putting a high-end, $75 million apartment building on Apache Boulevard, long a rundown part of Tempe and Mesa.

"In a few years, what Apache Boulevard will look like will knock your socks off," Gray said. "In a few more years, you won't recognize it. So many good things are happening here."

Gray said considering that Equinox will be close to one of the largest universities in the Untied States and will be right next to the light-rail line that thousands of people will ride every day, "this investment is not a risk. We specialize in urban infill, high density, high-quality housing. This is what we do and this is a very good project for everyone."

The one-, two- and three-bedroom Equinox apartments will range from 483 square feet to 1,060 square feet and cost about $850 to $1,700 per month. Equinox apartments will generally consist of mezzanine lofts on the fourth level and stacked apartment homes on the three adjoining lower levels.

Amenities at Equinox include 9-foot ceilings in most units, "luxury" kitchens, connections for phone, TV and Internet, full-size washers and dryers, security systems, controlled-access parking gates, a clubhouse with lounge, coffee bar, conference room and fitness center, and a community swimming pool with spa.

Hallman and Gray said it all adds up to good news for Tempe and Apache Boulevard.

John Toliver agrees, and he should know. His family has owned Toliver's Carpet One at 1920 E. Apache Blvd. for 65 years.

"This is progress," Toliver said of Equinox. "It's very positive for Apache Boulevard and the city. With this and with the changes we're already seeing, Apache is looking much better."

http://www.azcentral.com/community/tempe/articles/2008/04/09/20080409tr-equinox0410inside.html

[azsunsurfer]

In regards to equinox, Campus Suites has a project that they've started further east on apache, you can see a rendering at the introduction of their website. Its suppose to be in the same vein as ASU's new residential complex on Apache because it will have ground floor retail sitting right on Apache. The street is coming along nicely.

[HooverDam]

Sounds like a nice project, but renting less than 500sq feet for $850? Thats insane.

[tempedude]

I currently rent an older apt on Apache just east of Rural Road....490sq ft(one bedroom)...for almost $700... so $850..for around 500 sq ft..doesn't surprise me, even if it seems over priced...its just is the going rate in the ASU area...I have friends who rent a 2 bedroom apt in the same vicinity for $1,500, just as an comparable example...

[KEVINphx]

Originally Posted by tempedude

I currently rent an older apt on Apache just east of Rural Road....490sq ft(one bedroom)...for almost $700... so $850..for around 500 sq ft..doesn't surprise me, even if it seems over priced...its just is the going rate in the ASU area...I have friends who rent a 2 bedroom apt in the same vicinity for $1,500, just as an comparable example...

No, it really is a joke. There are cheaper places just down Apache.

I live on Apache just east of the 101 so what, a mile further east? I have a nice 2 bedroom, 2 bath apartment and I pay 700.

You get ripped off in some places around ASU, I think those places charging outrageous rent are just preying on students. $1,500 for a 2 bedroom?! lol unless it's "luxury" rentals, that is a rip off too. I have some friends living at those apartments just east of Pete's and they are not paying anywhere near that for a 2 bedroom 2 bath.

[tempedude]

Originally Posted by KEVINphx

No, it really is a joke. There are cheaper places just down Apache.

I live on Apache just east of the 101 so what, a mile further east? I have a nice 2 bedroom, 2 bath apartment and I pay 700.

You get ripped off in some places around ASU, I think those places charging outrageous rent are just preying on students. $1,500 for a 2 bedroom?! lol unless it's "luxury" rentals, that is a rip off too. I have some friends living at those apartments just east of Pete's and they are not paying anywhere near that for a 2 bedroom 2 bath.

i agree alot of the rentals around ASU are rip offs... however my friends are paying a luxury rate...their apt is newer with top end amenities... and $1,300 to $1,500 for apartments like theirs is the going rate for luxury rentals in the vicinity (Apache to Broadway and between Rural and McClintock)...and i am paying the going rate (unfortunately) for a 1 one bedroom in the area I am in...seems like $575 to $675 is the rate in the immediate area (rate depends upon the age of the complex also)...

[HX_Guy]

Pier 202 development on Tempe Town Lake shifts focus, takes new name: South Bank
The Business Journal of Phoenix - by Jan Buchholz Phoenix Business Journal

A Scottsdale developer plans to turn its proposed Tempe Town Lake development into a destination that would draw tourists from around the country, or even the world.

The Wolff Co. has renamed its 27-acre Pier 202 development South Bank. Wolff bought a majority interest in the project last year from a California partnership. The site is south of Tempe Town Lake and north of Rio Salado Parkway, between Rural Road and McClintock Drive.

For the past several months, the company has been working with urban planners to flesh out a detailed plan for the prime site.

"We've looked for inspiration in Gramercy Park, Central Park and the South Bank in Australia," said Peter Wolff, co-president and principal of The Wolff Co.

Although the project will incorporate 3.6 million square feet of mixed uses, the focal point will be the Tempe Town Lake waterfront, with a pier planned there.

"We see the pier at this point in time as a highly activated, programmed pier where there would be performances. There could be a detachable dock, and hopefully water taxis will take people back and forth to Tempe Beach Park," Wolff said.

The waterfront also will include a restaurant promenade featuring local and national restaurateurs. The retail component, totaling 260,000 square feet, will be a combination of local and national tenants. Other facets of the development include 2.2 million square feet of rental and for-sale housing product, 889,000 square feet of office space and 170,000 square feet of hotel space.

Although the company still is negotiating with several potential investment and development partners, construction already has begun. Financing, Wolff said, is not an issue.

"We've started moving earth. We're under way with the streets and the infrastructure," he said.

Wolff expects the site work to be completed by the end of the year, with vertical construction beginning in the third quarter of 2009.

Despite the gloomy economic outlook, Wolff said the location already is garnering strong interest from a host of potential partners.

"It's the most visible site in Arizona, with 500,000 cars a day going past it. Compare that with Kierland (in Scottsdale), where there are 50,000 cars a day," Wolff said. "And this is all immediately accessible to the freeway."

Wolff expects the first product to be delivered will be high-end residential rental units.

.

[PhxSprawler]

Hopefully this name change will be the pivotal point in getting the project going.

The idea of taking a water taxi in Tempe sounds oddly appealing to me.