Tempe just greenlit a major redevelopment along Apache Blvd. that will add much-needed affordable housing—and restore grocery access—to a neighborhood that’s been a food desert since Food City closed in 2021.
Key Points:
- 400-unit development called Dorsey Station approved by Tempe City Council.
- 90% of units (360 total) will be income-restricted for households earning 30%–80% of AMI.
- Located at 1320 E. Apache Blvd & 1412 S. Dorsey Ln, replacing the former Pollack Apache Center.
- Includes 10,000 sq. ft. minimum for a new grocery store (no operator selected yet).
- City purchased the property for $10.7M in 2021 and rezoned it for mixed-use high density.
- Developer: Dorsey Development Partners & Palindrome.
- Community concerns focused on ensuring a grocer with affordable pricing and whether 10,000 sq ft is enough space.
- Mayor indicated developer is willing to expand space to attract chains like Aldi or Trader Joe’s.
- Part of Tempe’s broader redevelopment of older shopping centers into mixed-use, housing-rich sites.
Investor Relevance:
- Signals continued municipal push for higher-density, transit-oriented development.
- Expect more incentives and rezoning to increase housing supply—key for long-term affordability.
- Nearby SFR investors may see greater renter demand, improved neighborhood amenities, and stronger long-term stability.