Phoenix looks to kick off development on key property along Loop 101

Phoenix looks to kick off development on key property along Loop 101

Article Originally Posted By PhoenixBusinessJournal On June 14, 2022

Commercial development of a long-vacant property in west Phoenix could be kicked off by a proposed multifamily project.

The overall site totals about 160 acres and is located between 99th Avenue, the Loop 101 and Thomas and McDowell roads north of Interstate 10 in Maryvale village, the most densely populated of Phoenix's 15 urban villages. The land is currently owned by Valley farmers, the Sheely family.

Vancouver, Washington-based IDM Cos. is proposing to build a 678-unit multifamily project on about 34 acres of the site, which the city hopes will spur commercial development to the north and south of the apartments. IDM did not immediately respond to a request for comment.

To move the project forward, Phoenix City Council will vote Wednesday on a development agreement to reimburse IDM Cos. for public infrastructure improvements. A city report said the area does not have access to Phoenix water lines, so the developer will bring water lines under the freeway, which will cost an estimated $2 million. The agreement said the city will reimburse the developer up to $1 million through the agreement.

"This project is vital to activate an important stretch of freeway frontage in Phoenix that has been underutilized for over 20 years," a city report said. "Phoenix has reached a critical point in the real estate market that makes this investment a possibility and will bring significant investment to the retail and employment projects to the north and south of the multifamily project."

A city spokesperson said the water will provide service to the incorporated Phoenix properties west of Loop 101 for multiple uses. At this time, the city said no development plans have been presented beyond the proposed housing.

Nearly a decade ago, the city approved a planned unit development, or zoning designation, for the land dubbed Sheely Center, an urban mixed-use development with offices, retail, entertainment, industrial, hotels and housing. 

Former plans say the project would be considered a major business employment center with the potential for up to 3.8 million square feet of office, 1.2 million square feet of retail, 1,000 hotel rooms and 1,375 residential units. 

The city saw the land's potential for becoming a "western gateway" to Phoenix with high-quality jobs and top-tier companies. Just north of the property, the city and developers also hoped to create an industrial corridor and business park called Algodon