A joint venture between entrepreneur Dick Portillo, Baum Revision, BlueRoad Ventures and Aparium Hotel Group will move forward on plans to transform the iconic Hayden Flour Mill and Silo buildings into a commercial mixed-use complex with an upscale, independently branded hotel in Tempe.

The development is located in the heart of Downtown Tempe, at the southeast corner of Mill Avenue and Rio Salado Parkway, which was recently named one of the hottest commercial intersections by Urban Land Institute. Hayden Flour Mill is Tempe’s most iconic structure and the reason the city was built. In fact, Tempe’s most famous street, Mill Avenue, is named after the flour mill.

The two-phase adaptive reuse project will span 150,000 square feet, celebrate the distinguished architectural character of the existing historic structures, and tastefully expand upon the site with the addition of a modern, mid-rise building. Upon completion, the property will consist of a full-service hotel featuring 165 guestrooms and suites, market-leading food and beverage offerings and innovative meeting space, as well as 30,000 square feet of boutique retail and creative office space. The project will also debut an expansive event lawn space for the enjoyment of both residents and visitors.

The former flour mill first started operations in 1874 as a location for area farmers to bring their grains. The historic building that stands today was constructed in 1918, after fires took the first mill.

“The Hayden Flour Mill is one of Tempe’s most recognized and beloved buildings,” said Tempe Mayor Mark Mitchell. “They were active for years, providing an industry to Tempe, along with jobs and a basic food staple to the residents of Tempe. Seeing these iconic buildings breathing with new life and the jobs, restaurants and businesses that will come with that redevelopment, illustrates how projects and buildings come full circle.”

The project will be a welcomed addition as one of few full-service hotel offerings in the market, and an ideal host for the city’s many incoming business and leisure travelers.  The site is also proximate to Arizona State University, the nation’s largest university, as well as regional offices for key businesses in the technology, healthcare and insurance industries. True to Aparium Hotel Group’s signature style and anchored in its “translocal hospitality” concept, the property will be constructed and programmed with local influences to best capture the spirit of Tempe and engage with in the greater Phoenix community.

“With our extensive experience in adaptive reuse projects and deep understanding of the care that goes into the renovation of these unique sites, we were eager to be part of the rebirth of the Hayden Flour Mill site,” said David Baum, principal and co-founder of Baum Revision. “It’s rare to find a project with this much historic significance and we’re looking forward to working alongside the City of Tempe and our partners Dick Portillo, Aparium Hotel Group and BlueRoad Ventures.”

“Tempe is a unique, creative city that holds a special place in my heart, and it deserves a hotel that truly speaks to its distinct spirit,” said Dick Portillo, founder of Portillo’s, the iconic chain of restaurants that he sold to Berkshire Partners back in 2014. “I’ve had great success here and this is an exciting project that complements my real estate portfolio.” Portillo still owns a substantial amount of the Portillo’s restaurant properties in addition to a robust mix of retail, multifamily and industrial assets.