Downtown Phoenix Update

DOWNTOWN BECOMES A DESTINATION

New development combined with redevelopment makes Downtown Phoenix a hotspot for people and companies in search of a thriving urban area

By ERIN THORBURN

“Things will be great when you’re downtown No finer place for sure — downtown Everything’s waiting for you.”

You may (or may not) recognize these as lyrics from the song “Downtown” performed by Petula Clark. Debuting in 1964, “Downtown” became a smash hit, eventually claiming a No. 1 spot on the Billboard chart. Here, in 2022, Downtown Phoenix is becoming its own smash hit. Development and redevelopment projects abound on practically every block and developers and residents alike are taking notice.

Full-circle urban life

Around the same time “Downtown,” made the Billboard charts, Phoenix Sky Harbor International Airport terminal two had only been added two years prior;

Chris Anderson

Eric Jaegers

Celebrity Theatre (formerly, the Phoenix Star Theatre) was only one year old and The Regency House sky-line building located at 2323 North Central Avenue finished construction.

It wasn’t until the 1970s that Downtown Phoenix hit a stride, transitioning from dots of development to the core of a vibrant metropolitan market. “We are the city that has been a suburban-urban area for decades, decades and decades,” explains Christine Mackay, community and economic development director for the City of Phoenix. “If you go back to the 1970s and pre-1970s, this was the center of commerce. This was where people lived, shopped and worked.”

From the 1970s onward, downtown proper experienced what Mackay describes as a mass exodus of residents, who headed toward more suburban areas flanked by new freeways, grocery stores and retail options.

“We didn’t get back to the population we had in 1970 until 2016,” Mackay says.

Now, as the fifth-largest city in the country, the population hasn’t simply returned but continues to skyrocket in Phoenix.

“In the most recent census numbers,” Mackay explains, “we’ve seen people coming in from areas we’ve always seen — Chicago, California and the Midwest — but now we’re seeing our bigger numbers coming in from New York and the East Coast in dense urban cities. We’re seeing people come in from San Antonio, a lot from the Bay Area and a big contingent from Asia.”

And the reason people are flocking from both typical feeder locales as well as new ones has much to do with the urban invigoration of downtown.

“The increase in new restaurants and nightlife options, relatively affordable rent, influx of jobs, access to top-tier higher education options and better walkability makes it a desirable location,” says Clay Creaser, senior project manager of JE Dunn. “More people in their 20s and 30s are moving to Phoenix, as well as students who prefer to live in apartments with amenities in lieu of student housing while taking advantage of the downtown environment.”

Adds Chris Anderson, senior managing director for Hines, “The region has experienced significant in-migration over the last couple of years and there are many people who want to live in an urban environment. Downtown Phoenix is beginning to mature with the addition of Fry’s Grocery store, many restaurants and great cultural activities that urban dwellers want.”

Mixed-use and multifamily masterpieces

As far as living in an optimum urban setting, Anderson certainly has expertise in his role with Hines. Adeline, a Hines project, consists of a “25-story, 379 unit, luxury-for-rent apartment community in downtown Phoenix.” Located on the northwest corner of Jefferson and Third Streets, the high-rise offers residents floor-to-ceiling windows; a 2,800-square-foot fitness center; a junior Olympic-size swimming pool; private meeting areas and 4,500 square feet of ground-floor retail.

As for the Fry’s, it is part of RED Development’s Block 23 project at CityScape and has become a major anchor for further downtown development. Similar to the Adeline in its live/play integration, Block 23 contains 332 luxury-urban dwellings and 5,000 square feet of retail and restaurant space. But what the conglomeration also offers is 230,000 square feet of creative office space and a 67,000-square-foot, multi-level Fry’s Signature Marketplace, making it downtown’s first and only full-scale grocery store.

“I would argue to you that without that Fry’s grocery store, without Block 23, we wouldn’t be seeing what we’re seeing today because now people can see themselves living in Downtown Phoenix,” Mackay says, “because they know where they’re going to go to the grocery store.”

Mackay further explains that before Block 23 was brought to the city council, RED Development conducted a study that showed how including a fullservice grocery store in a downtown market changes the market. “Not just in its absorption,” she says, “ but in the educational attainment of the people who come to live in your downtown, and of the average household income of the people who live in that downtown

market.”

In another section of downtown — 440 East Van Buren Street — Clayco and North American Development Group announced plans to construct PALMtower, a 352-unit multifamily project.

“We are honored to help transform Phoenix’s downtown residential market with a Will Bruder designed high-rise,” says Clayco executive Eric Jaegers. “Together with North American Development Group, we will successfully deliver this highly anticipated project to the Phoenix community as quickly, safely and efficiently as possible.”

In addition to providing a home for Phoenix urbanites, the PALMtower Residences will offer a 17,500-squarefoot level dedicated to amenities that include an outdoor pool, indooroutdoor common space and six floors of above-ground vehicle and bike parking spaces.

Also on Van Buren Street (as well as Polk Street and Central Avenue), the aptly-named Central Station is making waves as a massive mixed-use project totaling 1,100,000 square feet and stretching 400-plus-feet tall.

Upgrades and innovation

While mixed-use and multifamily projects are steadily filling the cityscape, other development and redevelopment projects, such as the Footprint Center’s recent upgrades are also commanding notice.

“The remodel of the Footprint Center has had such a tremendous impact in Downtown Phoenix by drawing new people into Downtown Phoenix,” Mackay says, “but more importantly, really showcasing this modern, contemporary big city.”

Over on the north side of Earll Drive, on the west side of Central Avenue, Park Central continues to build out its campus, adding three new restaurants and two hotels, according to Mackay.

As for future downtown development, we may see a rise in technology, life science and bioscience activity.

“In 2012, we had 67 technology companies in Downtown Phoenix,” Mackay says. “Today, we have more than 400.”

CENTRAL STATION: Consisting of two high-rise towers, this 1,000,000-square-foot Downtown Phoenix project will provide a mix of residential and student housing, retail and office space.

SOARING TOWARD THE SKYLINE

Mixed-use and multifamily projects are dominating downtown development. Take a look at four recent and upcoming high rises joining the city’s skyline.

Moon Tower

Lincoln Ventures, Cross Harbor Capital Partners, JE Dunn and Arvest Bank pooled together to bring Moon Tower (811 N. 3rd Street) to fruition. The 21-story, 326-unit, multifamily project contains a host of amenities including a ground floor coffee-to-cocktails concept, conference and coworking areas, dog run, pool deck, state-of-the-art fitness studio, yoga and meditation room, spin room, saunas and more. The first floor contains retail and garage space. Development is slated for completion in June 2023.

Central Station

Consisting of two high-rise towers, this 1,000,000-square-foot project will provide a mix of residential and student housing, retail and office space. The GMH Communities, CBRE Investment Management and Medistar project will also include the redevelopment of the Central Station transit depot, offering convenient light rail and bus transportation options. Central Station development is projected to finish in 2024.

PALMtower Residences at Arizona Center

The 481,000-square-foot project — in partnership with North American Development Group, Will Bruder Architects, LJC and Clayco — will extend 28 floors up, as one of the city’s tallest sky rises. Slated for completion in early 2024, the tower — located at 440 East Van Buren Street — will contain 352 apartment units; a seventh-floor amenity level and ample parking for cars and bikes.

Skye on 6th

Scheduled to wrap up in summer 2023, this 357,850-square-foot building is designed for Leadership in Energy and Environmental Design (LEED) Silver certification, making it an environmentally responsible and resource-efficient future home for Phoenicians. The 26-story multifamily project has a wellnessfocused theme, offering residents a fitness center complete with sauna, steam room, outdoor pool and spa.