Bank Sale of Proposed Mixed Use Project in Tempe

Johnson Bank has sold a 3.46 gross acre lot in Tempe that is platted for Dorsey Crossing Live/Work Townhomes, a 45-townhome mixed use project. The lot was purchased by New Leaf Communities for $750,000 or $2 per square foot, $350,000 down, and $400,000 debt with Bill Cleverly of Inca Capital. The project has previously been marketed as 1233 Off Broadway, located at 1233 E Broadway Rd, East of the southeast corner of Rural and Broadway Roads. 

The project was previously acquired as land only on April 24th, 2006 for $800,000 or 5.01 per square foot, and $1,050,000 debt with IMH Financial corp; the note was later released in 2007. In 2006, the site went through the entitlement process with the City of Tempe planning and zoning to establish a planned area development for the mixed-use project, atop its PCC-2 zoning designation. New debt of $2,761,000 with Johnson Bank was issued July 26th, 2007. Johnson Bank gave notice of trustees sale September 30th, 2010. Johnson Bank then foreclosed on the property on December 30th, 2010 for $1,263,000 credit bid amount.

According to Vizzda’s analysis of city zoning documents from a March 26th, 2006 project approval with the City of Tempe, the entire project is composed of three phases on 8.55 acres. The fist two phases are already built and the subject property (phase III) is on 3.46 gross acres (2.55 net), and will total 87,425 sf of total building area in 9 different product types. The 45 three-story buildings will consist of 45 residential units (7 two bedroom, 38 three bedroom). 14 of the units will have ground floor commercial space, ranging from 321 to 571 square feet. The buildings have a maximum allowable height of 40 feet and the density is measured at 17.6 dueling units per acre.

BY

Daniel Alpers

Director of Planning & Municipal Solutions

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