Construction Begins On $177M North Tempe Development

TEMPE, AZ — Construction has started on a $177 million development on a county island in north Tempe.

The new 16.5-acre site, which is located north of the Loop 202 and east of Scottsdale Road in an area known as the North Tempe county island.

The first phase of the development began on Tuesday, with a scheduled completion date of early 2023.

The project is being completed by Los Angeles-based real estate investment company, Banyan Residential, in collaboration with Indianapolis-based development company, Milhaus.

Max Friedman, who is a partner at Banyan Residential, said the project, which involved the first expansion of Tempe's city limits in more than a decade, is exciting for all involved.

“This area of Tempe is ripe for urban revitalization,” Friedman said. “We are proud to be at the forefront of this large-scale project that will soon bring new housing, public spaces and improved local infrastructure to the city.

"We are grateful for the tremendous support we’ve received from local officials and our project partners at Milhaus, and we are thrilled to officially commence construction."

The project was approved unanimously by Tempe's City Council in March, with Tempe Mayor Corey Woods calling the development a hallmark moment for the city.

“For the first time in well over a decade, we annexed a substantial parcel of land that was previously underutilized and created significant challenges for the surrounding neighborhoods in the northern part of Tempe,” Woods said. “This annexation will turn seventeen acres of this now-former county island into new housing options within Tempe. I am thrilled to celebrate this tremendous milestone with Banyan Residential and Milhaus, and the entire Tempe community.”

The apartment complex that anchors the first stage of the North Tempe development includes 310 studio, one, two, three and four-bedroom units, with two pools, a fitness center, outdoor spa, clubhouse and library, Banyan said.

“Centrally located near all that Tempe has to offer, this development is primed to become a desirable destination for both residents and the community at large,” said Brad Vogelsmeier, Vice President of Development at Milhaus. “We are excited to enter the Phoenix market as part of such a landmark deal.”