Hayden House Remodel Brings Much Needed Office to Tempe

Downtown Tempe is growing rapidly, and there is a growing demand for large-blocks of office space. Hines and Cousins Properties are stepping up. A joint venture between the two firms is redeveloping the 2.5-acre former site of the Hayden House, the historic former home of Arizona Senator Carl Hayden at 100 Mill Avenue. The site will begin construction in the second quarter 2019, and will include a 15-story modern office tower as well as a hotel or apartment complex on a mixed-use.

“Tempe is a progressive urban hotspot, one of the most walkable cities in Arizona, and is home to Arizona State University, a top-tier university recognized nationally for its innovation and diverse sophisticated student body,” Brandon Dillingham, director of development for Hines’ Arizona office, tells GlobeSt.com. “Tempe benefits from multiple channels of public transportation and immediate access to the freeway system and Phoenix Sky Harbor airport. It draws from a very dynamic workforce in close proximity to its city center, and the immediate site boasts a large variety and concentration of restaurants, parks, and amenities.”

Tempe has evolved along with the Greater Phoenix market, and there is currently strong demand for large blocks of office space. As a result, this is a speculative office development—and not the only one in the market. The Watermark Tempe is also a speculative office build in the market. “This is a speculative development, however the very high tenant demand for large blocks of contiguous class-A office space in the Downtown Tempe/Mill Avenue submarket south of the lake would indicate that the building could be significantly leased up before the building starts construction,” says Dillingham.

While the developers are planning to bring much-needed office space to Tempe, they will also honor the historical integrity of the property. “We want to pay tribute to the history and the symbolic heritage of the Hayden House by rehabilitating the building and turning it over back to the community, while jointly embracing the innovation, design, and urban form that’s occurring in Arizona by delivering a best-in-class office high-rise and adjacent premium hotel or luxury apartment building,” says Dillingham.

Dillingham wouldn’t comment on the specifics of the development costs, or how it will be funded. “The investment will be significant,” he says. “Cousins and Hines are developing the office building.”

Overall, this project illustrates the evolution in Tempe as well as the capital sources entering the market—all strong signs of future growth. “The maturity of the Arizona market, particularly in Downtown Tempe, is attracting institutional grade investors and developers both domestically and abroad,” adds Dillingham. “There has never been a better time to invest in Arizona.”