One of Tempe’s most prominent empty lots is finally headed for a makeover. Tempe City Council has cleared the way for a 16-story housing tower beside Tempe Town Lake, signing off on a plan that would add up to 110 for-sale homes on a long-vacant slice of Rio Salado Parkway next to Tempe Beach Park.
The project, known as 250 Rio, would rise on roughly two acres and is expected to feature family-sized two- and three-bedroom units along with resident amenities. Planning documents for the site also call for preserving and rehabilitating the existing stretch of Old Ash Avenue that cuts through the property, so the new tower would share space with a bit of Tempe history.
Council sign-off
Tempe City Council adopted an ordinance on Jan. 22 that creates a development overlay allowing up to 110 residential units along Rio Salado Parkway, according to the City of Tempe agenda. Coverage from 12News noted that the move effectively opens the door for a new 16-story complex near Tempe Town Lake on a parcel that has sat idle for years.
What Hines is pitching
Houston-based developer Hines, which bought the parcel in 2021 and previously floated an office tower there, is now proposing a 16-story, for-sale condominium building with about 110 units, according to Homes.com. Plans filed with the city outline a mix that could include roughly 75 two-bedroom units, 23 three-bedroom units, and about a dozen larger homes, along with several townhouse-style walk-ups and resident amenities.
In other words, the developer is pivoting from a lakeside office address toward a tower geared more toward households looking to buy into the downtown Tempe skyline.
Where it would sit
The site is currently unimproved and is surrounded by some of the city’s marquee public spaces. It is bounded by Tempe Beach Park to the north and east and by Rio Salado Parkway to the south and west, and planning documents describe it as one of the last remaining parcels in the Tempe Town Lake core, 12News reports.
The application also calls for public walkway upgrades that would better connect Tempe Beach Park to the Ash Avenue bridge, along with other on-site improvements that would try to knit the private project into the surrounding public realm.
Next steps for approvals
The development overlay approved by the council clears a major zoning hurdle, but 250 Rio still has a fair amount of red tape ahead of it. The project needs detailed design review, building permits and any remaining Development Review Commission hearings before shovels can hit the ground, according to Homes.com. Timing will depend on those final approvals, the financing picture and Hines’ construction schedule.
Backstory and earlier commitments
Before condos were on the table, Hines had pursued a 14-story office project at the same address. In 2022, the developer sought an eight-year tax abatement tied to a package of public commitments, including improvements to Ash Avenue and contributions to local education and veterans’ causes, according to reporting summarized by ABC15. Those terms were negotiated around the earlier office concept and would likely have to be revisited if Hines proceeds with a residential tower instead.
For now, the council’s latest vote turns a long-stalled parcel into a ready canvas for for-sale housing right in the heart of downtown Tempe. Residents and would-be buyers should keep an eye on the city’s agenda for updated plans and hearing dates as 250 Rio works its way through the permitting pipeline.
