The City of Phoenix just made a major move toward revitalizing the Rio Salado area, acquiring a 29.5-acre industrial property for $29.58 million as part of its ambitious Rio Reimagined initiative. Here’s what Arizona investors should know:
Key Takeaways:
- Acquisition Details
- Phoenix purchased the property at 3030 S. 7th Street from Atlas Capital Partners.
- The city paid $29.58M using funds from its 2023 General Obligation Bond Program and community development funds.
- Tenant Agreement
- Ace Asphalt of Arizona, the current tenant, will remain on-site through December 2028.
- Phoenix will honor all existing lease terms during this period.
- Part of the Rio Reimagined Initiative
- This acquisition is aligned with RIO PHX, a plan to transform 20 miles of the Rio Salado corridor.
- The goal: to develop vibrant, community-driven projects along the river corridor.
- Atlas Capital’s Pivot
- Atlas originally acquired the site in 2020 for $8.5M.
- A merger between Sunland and Ace Asphalt shifted their redevelopment plans, opening the door for the city’s purchase.
- What’s Next in the Area
- Nearby developments under the same initiative include:
- Resource Innovation Campus: Focused on R&D, workforce development, and sustainability.
- Arizona Fresh Agri-Food Center: A massive, phased project with 1 million SF of mixed-use, including retail, park space, and a distribution center.
- Nearby developments under the same initiative include:
Why This Matters for Investors:
- The city’s acquisition shows long-term commitment to infrastructure and public-private revitalization.
- Proximity to future developments may boost nearby land values and rental demand.
- The current lease provides stable cash flow while the city plans its next steps.