Empty shopping center at Tempe light rail station getting apartments, grocery

Article originally posted on AZ Central on November 18, 2025

A vacant shopping center at the Dorsey Lane light rail station in Tempe is slated to become affordable housing and a new grocery store, according to a plan approved by Tempe City Council.

Tempe owns two noncontiguous parcels near Apache Boulevard and Dorsey Lane. One of the sites contains a now-vacant shopping center that had been anchored by a Food City grocery store. The site is also near the EnVision Tempe, a city-run resource hub that offers programs like employment assistance, technology access and support, cooking and nutrition programs and other services.

Tempe picked Dorsey Development Partners and Palindrome to redevelop the site into about 400 units of rental housing and a new grocery store, called Dorsey Station. Dorsey Development Partners is led by Charles Huellmantel and Todd Marshall.

“I was interested first because I live in the area,” Huellmantel said of the project. “We have seen this strip mall fall into disrepair and waste.”

The proposal calls for 90% of the units to be designated as affordable housing, and Huellmantel said the group is working with the city to determine the method that will be used to guarantee affordability.

At a Tempe City Council meeting, Tempe Mayor Corey Woods said the city was informed in 2021 that Bashas’, the parent company of Food City, intended to close the store. The city bought the site that year, intending to solicit proposals for affordable housing and a grocery store there.

“It has been a goal of the city for a long time, it’s a great place for affordable housing,” Huellmantel said.

The development will also include a minimum of 10,000 square feet for a grocery store. When asked at the City Council meetings, Huellmantel said the group would be willing to adjust the size if a grocery operator required a larger footprint.

Huellmantel said the group has been in discussions with grocers but has not finalized which chain will occupy the new store.

The development is also planned to include a food pantry that will serve the EnVision Center.

The project will include six buildings, with the tallest reaching six stories. The grocery store is planned to be a one-story building with outdoor space that will include shade and seating for people waiting for the light rail.

Construction will likely start in mid-2026 and will be done in multiple phases, Huellmantel said.