The long-vacant Kmart near Interstate 17 and Northern Avenue in Phoenix is no longer just an empty shell — construction crews are now working inside the building as it transforms into Innovation 27, a $43.5 million workforce development and education hub for the surrounding community. More than a year after its ceremonial groundbreaking, the project is visibly taking shape, with a new main entrance planned at the building's glass-front end.
According to KJZZ, Innovation 27 is an affordable workforce development and education hub. The station reports that the first 40,000 square feet of the building will house programming from Arizona State University, Northern Arizona University and skilled trades courses, according to LaSetta Hogans. That early phase is expected to include electrical and HVAC training, apprenticeship programs, OSHA safety certification, and hospitality and tourism instruction.
A Former Big-Box Store Reimagined
The scope of the renovation reflects the scale of the original investment. Phoenix committed $43.5 million to convert the site, according to KTAR, which reported the project would serve jobseekers of all ages and offer trade courses spanning from high school through university level. The station's report ties the effort to a broader push to revitalize neighborhoods near I-17 and Metrocenter, and notes one project participant said the hub could serve as an incentive for other businesses to invest in and redevelop the area.
The 15-acre site was described by North Central News as a currently vacant building at the northwest corner of Interstate 17 and Northern Avenue, formerly a Kmart, and the outlet reported the finished campus will feature a mix of high-tech industrial space, job training facilities and community amenities. The publication also reported that Gensler is designing the renovation while CHASSE Building Team is managing construction, with workforce and academic partners including ARIZONA@WORK City of Phoenix, ASU, NAU, Maricopa County Community Colleges and Washington Elementary School District.
Coffee Shop and Restaurant Planned for Later Phases
Beyond classrooms and training bays, Innovation 27 has plans for a coffee shop, and per KJZZ, a restaurant is expected to be added in a future phase, occupying the space once used as the store's garden center. Those additions would sit alongside the education and training programs as the site develops into more of a neighborhood destination rather than just a workforce center.
Timing for the project's completion has been reported differently across outlets. KTAR reported the project was scheduled to be completed in the summer of 2026, while KJZZ's more recent reporting states Innovation 27 will open next summer, in 2027. Neither report resolves the discrepancy, and construction was still visibly underway inside the building as of the KJZZ report.
A District 5 Councilwoman's Vision for the Area
Phoenix City Council District 5 representative Betty Guardado has framed the project as a launch pad for the surrounding working-class community, saying she wants graduates to leave with careers rather than just jobs, according to the same KJZZ account. Guardado has also said she wants to bring affordable housing, rapid transportation and additional economic development to the area.
For a neighborhood that has watched a shuttered retail giant sit empty for years, the image of construction crews working inside the old Kmart marks a visible shift. Whether the doors open next summer or the timeline shifts again, Innovation 27 is being built as more than a training center — it's being positioned as a foothold for revival in a corridor of Phoenix that's long awaited new investment.
