Developers plan major transformation at Camelback Colonnade

Article originally posted on Phoenix Business Journal on September 4, 2026

One of Phoenix’s oldest shopping centers is gearing up for a potentially major transformation.

Developers are in the process of setting up a portion of Camelback Colonnade for a new 216-unit multifamily project.

The owners of the complex, Federal Realty Investment Trust and RED Development, are targeting a 2.5-acre portion on the southwest side of the shopping center, which is located at Highland Avenue and SR 51. It includes an underutilized parking lot and a Phoenix Public Library Branch.

They’re aiming to get the whole western half of the Colonnade – about 23 acres – rezoned to allow for mixed uses including multifamily, retail, restaurants and offices.

The Camelback Village Planning Committee discussed the project at a Sept. 1 meeting and recommended approval. It will now head to the Planning Commission on Oct.1, then to City Council for final approval.

Under the terms of the rezoning, the developers would have to partly fund the construction of a new pedestrian bridge across SR 51, adjacent to the project site, and would be refunded upon the completion of certain phases of the overall redevelopment project.

New tenants moving in

The potential addition of multifamily to the shopping center comes amid other changes, like a new anchor tenant – discount clothing retailer Burlington, which just opened a new location at Camelback Colonnade.

Another new tenant looking to set up shop is Dutch Bros. The coffee chain is planning to build a new 986-square-foot location with a drive through service window on a 0.72-acre parcel between In-N-Out and the Fifth Third Bank branch on the east side of the center. That project still needs city approval.

Camelback Colonnade opened in the 1960s and is one of metro Phoenix’s first major shopping centers. It’s located in one of the Valley’s most heavily trafficked and densely populated corridors and is anchored by some of the biggest names in retail, such as Fry’s Food Stores, Best Buy, Marshalls, PetSmart, Old Navy, Bath & Body Works, Ulta, Michaels, Staples, and Floor & Décor.

It also has a Nordstrom Last Chance discount store – which is one of just a few in the country and draws shoppers from all over the Valley.

Find Complete Article Here: https://www.bizjournals.com/phoenix/news/2026/09/02/camelback-colonnade-redevelopment-moves-forward.html