Retail Developer Breaks Ground on The Trailhead Shopping Center in Northern Peoria

Article originally posted on AZ Central on March 7, 2024

Construction is underway to bring more than 900,000 square feet of commercial real estate and housing to a corridor of northern Peoria known for its mountain views and hiking paths.

Peoria officials and local businesses joined the Pederson Group, a Phoenix-based retail developer, to break ground Wednesday morning on The Trailhead, a long-awaited 903,000-square-foot mixed-use project at the northeast corner of 83rd Avenue and Happy Valley Road.

The development, which is named after the Happy Valley Corridor’s trail system, will include a shopping center with retail and restaurant space, a renovated church, and a 336-unit apartment complex—all with a scenic view of the Peoria Sunrise Mountain Preserve as the backdrop.

For Peoria Mayor Jason Beck, The Trailhead is the latest example of bringing more economic development to the city. It comes weeks after he and the City Council unanimously approved a landmark deal with Amkor Technologies to construct a $2 billion semiconductor packaging and testing facility.

The Trailhead, he continued, also presents more opportunities for Peoria families to work and shop locally.

Officials from the city of Peoria, The Pederson Group and the Safeway supermarket chain turn shovels at 83rd Avenue and Happy Valley Road on Wednesday, March 6, to celebrate the construction of The Trailhead, a 903,000-square-foot mixed-use development.

“We need to ‘reshore’ our employees back home where they can spend more time in their community,” Beck said. “They spend more time with their families, and they can spend more money back in the circle of Peoria, which drives everything.”

Anchoring the project is a Safeway grocery store that’s already been in construction and is expected to open this September, according to Jim Pederson, founder of the development company.

Wednesday’s groundbreaking ceremony marked seven years of working with a handful of different landowners to get the project into development, Pederson explained. It started when Safeway’s former real estate director, Jan Martin, approached Pederson to help get The Trailhead built on the site.

“Well, you have five different property owners that you’re going to have to assemble,” Pederson recalled. “And among those five is the church and a state land piece that you’re going to have to go to auction on.”

The neighborhood church, LifePath, owned a portion of the property. It’s been working with the Pederson Group to develop the site and build its new campus on the southeast corner of the lot.

During his initial visit to the site, Pederson recalled standing at the street corner and looking into a pit that reminded him of Arizona’s landmark.

“It’s like I’m looking down into the Grand Canyon,” he joked to an amused audience, adding, “But it’s a great site. Peoria is growing, particularly in this part of Peoria. We have income levels that rival Scottsdale’s, density is coming, and I can see that our retailers would do a very good job here.”

Two of those retailers that have locked down leases so far are restaurateurs Aldo Jaramillo and husband-and-wife team Parker and Emily Ganem.

Jaramillo, who owns another Peoria restaurant called Mochilero Kitchen, will open his Tacos & Craft concept, a full-service restaurant serving traditional Mexican cuisine.

“We’re talking about grilled octopus, with a Mexican twist. We’re going to talk about some exciting steaks and cuts,” he said. “Everything’s gonna have that incredible Mexican flavor. So, you want to have the enchiladas but with the creamy sauces and unique proteins.”

“We want to introduce a lot more of our culture to our community,” added Jaramillo, who catered the groundbreaking ceremony, giving guests a taste of what’s to come.

As owners of the nearby Squid Ink sushi bar, the Ganems are looking to develop an American-themed restaurant for The Trailhead called Sparrow. They anticipate opening by the end of the year.

While keeping some of the menu details close to the vest for the time being, Emily said patrons can look forward to high-end cocktails.

She also echoed Beck’s sentiments on being able to live and shop locally, noting that as Peoria residents, she and Parker “know what’s coming. We know what this area wants and what they need and what they’re looking for and are excited to bring it.”

On the housing front, Chris Anderson represents the apartment complex as the senior managing director of Hines, a real estate investment and development firm.

The complex, he said, will include a full clubhouse, fitness and yoga rooms, recreational areas and a resort-style pool. Construction is anticipated to begin in early 2025 and is expected to last about two years.

About 30% of the units will be one-bedroom apartments, while 50% will be dedicated to two bedrooms. The remaining units will comprise three-bedroom apartments.

The complex, Anderson said, is designed to mesh with the other amenities of The Trailhead. He said residents should be able to spend less time in their cars and more time walking the nearby trails and shopping in the center.

“There’s a lot of internal connection here but there’s also an external connection out up into the Preserve, which we found is very important to the community and also very important to us,” he said. “In Arizona, we have this great, great climate, great place to live and getting people opportunities to get out for health and wellness and exercise.”

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