Phoenix buys industrial property for Rio Salado revitalization project

Article originally posted on HERE on May 12, 2025

An aerial of Phoenix looking toward downtown from the south, with a swath of land along a dry riverbed highlighted in blue.

An industrial property in south Phoenix now belongs to the city, marking a significant step in a long-term project to revitalize the Rio Salado.

The big picture: The newly acquired site will become part of Rio Reimagined, a regional project involving the cities of Avondale, Buckeye, Mesa, Phoenix and Tempe, as well as Maricopa County and the Salt River-Pima and Gila River Indian communities.

  • That project, which originated with a group of ASU architecture students in 1967, seeks to transform about 55 miles of the Salt and Gila rivers with projects to beautify the area and turn it into a walkable destination.

Driving the news: Phoenix last month purchased a nearly 30-acre industrial property at 7th Street and the Rio Salado, currently occupied by Ace Asphalt of Arizona Inc., from ATLAS Capital Partners for $29.5 million.

  • The purchase ensures the site’s future integration into the city’s revitalization plans and Ace Asphalt will remain on the property until the end of its lease in 2028.

Zoom in: Although no plans have been made, according to Christine Mackay, the city’s community and economic development director, the existing building will likely be demolished.

  • The city envisions the land as an “outdoor draw-you-back-to-the-river” area that could be home to amenities like restaurants, open space, a hotel or an outdoor music venue.
  • The city expects to begin soliciting proposals from developers in 2027, she said.

State of play: Phoenix’s portion of Rio Reimagined, dubbed RIO PHX, spans 20 miles.

  • The project has four phases, and the 7th Street property sits in the heart of the first phase, which runs from University Drive to 19th Avenue.
  • Unlike the Ace Asphalt property, much of the land along the river in Phoenix will remain privately owned while being incorporated into the Rio Reimagined project.

1 big question: Mackay said people often ask her whether the river will be filled with water, like Tempe Town Lake, with the Rio Reimagined project.

  • The answer is “no.” The riverbed will remain dry in Phoenix.

What’s next: The first segment of phase one will be the section between Central Avenue and 14th Street.

  • That includes the Arizona Fresh Agri-food Innovati​on Center, expected to include a permanent farmers market and park, and to create about 1,400 jobs.
  • As part of those plans, the city in October will begin relocating a flare station to burn off methane from the former Del Rio Landfill.
  • The city is also planning two projects along 3rd Street — a bicycle and pedestrian bridge, and a connection of the river’s north bank to the intersection of 3rd and Lincoln streets.

What we’re watching: Mackay said Phoenix’s part of Rio Reimagined will be a 25- to 40-year project, with most of the work happening in the first 25.

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