The Tempe City Council has voted to approve the entitlements for the new 250 Rio office and retail project proposed by Hines, the international real estate firm, in downtown Tempe.
The 250 Rio development will be a 216,000-square-foot Class AA office building and accompanying parking structure between the historic Ash Avenue alignment and the current Rio Salado Parkway, adjacent to Tempe Beach Park.
The project is designed to be a signature development at the gateway to downtown Tempe, with a modern, mixed-use building that will enhance the office footprint in the area. It will also have a significant focus on health and wellness, with its proximity to the recreational amenities of Tempe Town Lake and Tempe Beach Park.
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250 Rio will include pedestrian zones around the property that will increase walkability from downtown Tempe to Tempe Beach Park. The proposal also includes working in partnership with the City to address the historic Ash Avenue roadbed, historic Ash Avenue Bridge Abutment and working on options that will allow the Ash Avenue roadbed to be a part of the second phase of the Veterans Memorial, adjacent to the Site.
“We are very pleased that the City of Tempe recognized the vision for this property and how it can truly enhance the downtown area,” said Brandon Dillingham, Managing Director with Hines. “We are looking forward to celebrating and activating the Ash Avenue roadbed and integrating it into 250 Rio in a way that will make it a historic community asset.”
The Project has been designed as if the historic Ash Avenue roadbed was the Site’s primary frontage. Hines will work with the Tempe Historic Preservation Commission for feedback on the Ash Avenue portion of the project.
“This is an incredible and unique opportunity for not only a successful mixed-use development, but the creation of a new public amenity that honors Tempe’s history while improving the visitor experience at Tempe Town Lake,” Dillingham said. “We look forward to continuing to expand our presence in Tempe and to create a project that will make the community proud.”
Dillingham said that Tempe is an ideal location for new development as the office market emerges from the pandemic, and 250 Rio will be delivering strategically after Hines’ 100 Mill project across the street, in an effort to continue the offering of best-in-class real estate to corporate users.
100 Mill is the first building in the state to draw lease rates of more than $50 per square foot, and the building was already 92 percent leased six months before its completion. New tenants will include such well-known companies as Amazon, Deloitte, Moov, LiveRamp and others. 250 Rio is expected to trend similar rental rates and attract a thoughtfully curated best-in-class tenant mix.