Developer pivots on downtown Tempe high-rise plan, now proposes condos

Article originally posted on AZ Central on December 5, 2025

A site adjacent to Tempe Beach Park where an office tower was planned is now proposed to be developed into a 16-story condominium tower instead.

Houston-based Hines, which owns 1.8 acres along Rio Salado Parkway next to the park, in 2021 had proposed a 14-story office tower on the site. The project, called 250 Rio, never broke ground, and demand for office space did not rebound after the COVID-19 pandemic.

“Clearly the office market has just changed, not just in terms of capital markets and financing, but also for overall users and growth,” Chris Anderson, senior managing director for Hines in Phoenix, said. “Rather than sit with vacant land, we decided it would be best to pivot to residential; we think it’s a great use for that land.”

Hines is proposing to amend its old plan to instead include 110 for-sale condominium units, ranging in size from two bedrooms to four. Five of the units would be walk-up townhouse-style units, three along a pocket park and two along the historic Old Ash Avenue roadbed.

Most of the new housing in the area has been built as rental apartments, Anderson said, so Hines thought there would be demand for for-sale housing. Other condo projects along Tempe Town Lake have been successful.

The condo units will likely be luxury housing, because Hines did not want to include a lot of units in the new development out of concern for increasing traffic in the already busy area and to avoid any negative impact to the park, Anderson said.

The Old Ash Avenue roadbed would be preserved and rehabilitated as part of the development.

The rehabilitation would include the public walkway that goes from Rio Salado to the Ash Avenue Bridge to create a pedestrian-friendly space.

Hines has been working on the redesigned project for about a year, Anderson said.

“It became apparent a couple years ago,” he said of the need to adjust the project to fit better with market demand. “We wanted to do something that would be thoughtful, and we knew we had to do something that would function with the park.”

The building’s footprint would stay mostly the same, Anderson said, but condos require less parking than offices, so the parking garage would be slightly smaller and the tower would be different to create individual condo units.

Tempe’s Development Review Commission is planning to discuss the project at its Dec. 9 meeting. The project would then need to go to the City Council for approval and later would require another round of Development Review Commission hearings.