Empty Tempe shopping center to become affordable housing. What to know

Article originally posted on AZ Central on November 24, 2025

Tempe City Council approved a plan that will include demolishing a vacant shopping center to clear the way for a new apartment complex and small grocery store at a meeting in early November.

Tempe owns the land, located at Apache Boulevard and Dorsey Lane, at a light rail stop. When the former Food City store at the site closed in 2021, the city bought the site with the intent of seeking a developer to build affordable housing there. The city selected Dorsey Development Partners in partnership with Palindrome, led by Charles Huellmantel and Todd Marshall.

What is proposed?

The development, called Dorsey Station, will be primarily apartments, with about 400 units planned. 90% of the units will be designated for affordable housing, with the remaining 10% leased at market rate, Huellmantel said. The plans also include a minimum of 10,000 square feet for a grocery store. Huellmantel said the developers are in discussions with grocers but have not determined who the operator will be. The site will also include a food pantry to serve the nearby EnVision Tempe.

How big is the project?

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.