Developers to Break Ground on $900M Phoenix Mixed-Use Today

By Eugene Gilligan, Senior Editor
Commercial Property News
Oct 22, 2007

Red Development L.L.C. and CDK Partners L.L.C. will break ground today on the $900 million CityScape mixed-use development that will encompass three downtown blocks in the Copper Square district of Phoenix.

The 2.5 million-square-foot-development will open its first phase in 2009. Two retail tenants have been announced for the project so far. AJ's Fine Foods will build a supermarket in the development and P.F. Chang's will also build an urban-themed restaurant. Also, TWELVE Hotel & Residences will incorporate 1,000 condominiums and a 150-room boutique hotel into the complex.

Late last week, the Arizona Republic reported that Kimpton Hotels would build a 250-room hotel that will include also condominiums. Various news reports also indicate that Wachovia may establish its first Phoenix office at CityScape.

CityScape will be a major piece in Phoenix's arsenal to attract corporations to the city, said Barry Broome, president & CEO of the Greater Phoenix Economic Council.

"This will strengthen our employment sector," Broome said. "Some companies only want to have their offices Downtown. If you don't have that infrastructure, and other cities do, then you're not in the game."

The project initially met objections from community groups after the original plans called for a portion of it to be built on Patriots Square Park. A compromise was reached, calling for the city and the developers to redesign the park, and the Phoenix City Council approved the deal last fall.