Mill Avenue in Tempe, one of the Valley’s few urban districts, has been the focus of much planning and discussion during the past five years. Large mixed-use projects, many with large residential and retail components, have been approved by the Tempe City Council and publicly embraced.
But with the economic climate — particularly in commercial real estate — still shaky, some of those highly publicized projects now are in trouble, in limbo or possibly out of the picture entirely.
Centerpoint
The most visible
Andrea Kalmanovitz, spokeswoman for Centerpoint developer Tempe Land Co., said the company still is negotiating with the U.S. Bankruptcy Court to obtain an estimated $75 million in financing needed to finish the project.
Another veteran local developer,
Retail and restaurants
Other retailers also have departed
More retail space will add to the inventory when Tempe Gateway opens later this month at
Only 1,300 of the 24,000 square feet of street-level retail has been leased by a UPS store. To make the dynamics more tenuous, Opus West is in the throes of financial turmoil and is meeting with attorneys to determine whether Chapter 11 reorganization is in its future, according to Opus Corp. spokesman Winston Hewett.
Still, Roberts is optimistic about the project.
“We’ve gotten a lot of fantastic feedback from the brokerage community, and we’ve got a lot of interest from restaurants and banks,” he said.
A block north of Tempe Gateway, restaurant proprietor Michael Monti says he’s treading water in one of the toughest down cycles his family-owned steakhouse has been through since it opened in 1954.
“Our volume is down quite a bit. It’s a rough time for
Besides running Monti’s La Casa Vieja, he’s partnering with local developer 3W Cos. on a mixed-use project called 100 Mill Avenue, which will incorporate his historic restaurant. Development plans have made it through the city’s entitlement process, but approvals came about the time the economy tumbled.
“We’re still hopeful, but we’re in limbo,” Monti said. “It will be at least 18 months to two years before anything happens with our project.”
Others on hold
Hayden Ferry Lakeside, a mixed-use development created by
Several other projects in the area are on hold. Two developers that confirmed they are waiting for the market to improve to get much-needed financing are
Kris Baxter, a spokeswoman for the city of
“They are staying because they know their
Meanwhile, DMB is trying to make the best of a difficult situation by reactivating a former Harkins Theatre, which it had planned to demolish for redevelopment of the 4.2 acres at the northwest corner of Mill and
DMB is leasing it for “affordable” rates to the community organization, according to Karrin Taylor, the company’s vice president of entitlements.
“(We’ve partnered) in an effort to revitalize and convert the theater space for use by local artists and community groups,” she said.
In the meantime, DMB is trying to lease space that’s been vacated by national retailers including Z Gallerie, which is in bankruptcy.
“They chose not to renew their lease,” she said.
The company’s leasing team also is looking at the possibility of luring a Trader Joe’s or Whole Foods to Centerpoint on Mill.
Baxter said those who remain committed to
“We think