Tempe, Arizona, December 8, 2025
Hines has changed its development strategy for a site near Tempe Beach Park from a 14-story office building to a 16-story condominium tower named 250 Rio. The new project will offer 110 residential units, responding to a lack of office demand post-pandemic. This decision aims to meet community housing needs and enhance the area’s pedestrian-friendly environment while preserving historic elements.
Tempe, Arizona
Hines Transitions from Office Plans to 110-Unit Condo Tower Near Tempe Beach Park
In an intriguing shift in development strategy, Hines, the Houston-based real estate firm, has opted to change its plans for a 1.8-acre site located adjacent to Tempe Beach Park. Instead of proceeding with the originally proposed 14-story office building, the firm will now pursue the construction of a 16-story condominium tower named 250 Rio. This new project aims to offer 110 for-sale residential units, ranging from two to four bedrooms, and includes five townhouse-style units that will line a pocket park next to the historic Old Ash Avenue roadbed. Such developments signify a broader trend towards offering luxury housing in response to evolving market demands.
The decision to pivot from office space to residential units comes in light of the lack of recovery in demand for office spaces since the pandemic. Hines believes that focusing on residential development is a more suitable use for the site at this time. Moreover, the project plans to enhance the pedestrian-friendly character of the area by rehabilitating the historic roadbed, thereby contributing to Tempe’s cultural landscape while addressing the housing market.
Background on Hines and the Development
Hines had acquired the parcel along Rio Salado Parkway in 2021 with intentions to construct an office building named 250 Rio. However, the project never materialized due to a significant drop in office demand in the post-pandemic landscape. Recognizing this shift, Hines made the strategic decision to forgo the office space in favor of developing high-end condominiums. The new residences are expected to cater to the growing demand for quality housing options in the area.
Significance of the Project
This new direction in development not only aims to meet the residential needs of the community but also plays a role in enhancing the overall environment of the area. By preserving and improving the historic Old Ash Avenue roadbed, 250 Rio will contribute positively to the community’s character, promoting walkability and cultural heritage. As Tempe continues to evolve, such developments can drive economic growth and improve living conditions, fostering a thriving community.
Approval Process and Timeline
Currently, the 250 Rio project is under review by Tempe’s Development Review Commission. Further approvals from the City Council will be necessary, alongside additional public hearings. While there is no specific timeline for when construction will begin, the project reflects the adaptability of developers like Hines in navigating changing market conditions.
Related Developments in Tempe
Hines is not new to significant projects in Tempe. The firm has previously completed the 100 Mill development, which consists of a 287,000-square-foot, 18-story office tower that opened its doors in early 2022. Additionally, Hines is collaborating with Cousins Properties on the Shorehaven mixed-use development, expected to include 1.3 million square feet of residential, retail, and recreational spaces along Tempe Town Lake, slated for completion in 2026. These initiatives highlight the firm’s commitment to enhancing urban development and supporting the economic growth in Tempe.
A Positive Outlook for Tempe’s Future
The move to develop more housing options such as those proposed in 250 Rio stands to keep pace with changing demographics and market needs. As the city of Tempe continues evolving, it can benefit from policies that encourage flexibility and innovation in development, allowing for a broad spectrum of housing and business opportunities. Efforts to stimulate local growth through adaptable projects exemplify a progressive approach to urban living and economic vitality.
In conclusion, 250 Rio represents a significant adaptation to market realities, with its luxury housing offerings likely to meet the demands of a growing Tempe population. As the approval process continues, the focus will be on how the local community can support such developments and ensure that the benefits of increased housing and environmental preservation are fully realized.
FAQs
- What is the new development plan for the 1.8-acre site near Tempe Beach Park?
- Hines has revised its plans to build a 16-story condominium tower named 250 Rio, featuring 110 for-sale units ranging from two to four bedrooms, including five townhouse-style units along a pocket park and the historic Old Ash Avenue roadbed.
- Why did Hines change the original plan from an office building to a condominium tower?
- The decision was made in response to changing market demands and a lack of rebound in office space demand post-pandemic. Hines believes that residential development is a more suitable use for the land at this time.
- What is the status of the project?
- The development is currently under review by Tempe’s Development Review Commission, with further approvals required from the City Council and additional hearings. A construction timeline has not been specified.
- Has Hines been involved in other developments in Tempe?
- Yes, Hines has been involved in several significant projects in Tempe, including the 100 Mill development, a 287,000-square-foot, 18-story office tower completed in the first quarter of 2022, and the Shorehaven mixed-use development, a 1.3-million-square-foot project along Tempe Town Lake, with completion expected in 2026.
| Key Features of 250 Rio Development | |
|---|---|
| Location | 1.8-acre site adjacent to Tempe Beach Park, Tempe, Arizona |
| Project Type | 16-story condominium tower |
| Number of Units | 110 for-sale condominium units |
| Unit Sizes | Two to four bedrooms |
| Special Features | Five townhouse-style units along a pocket park and the historic Old Ash Avenue roadbed |
| Preservation Efforts | Rehabilitation of the historic Old Ash Avenue roadbed to enhance pedestrian-friendly environment |
| Approval Status | Under review by Tempe’s Development Review Commission; further approvals required from the City Council and additional hearings |
| Construction Timeline | Not specified |
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