The Pederson Group, a Phoenix-based developer known for shopping centers, is looking to branch into a new arena with a 23-acre purchase of state land near Happy Valley Road and 35th Avenue.
Jim Pederson, founder and chairman of Phoenix-based Pederson, said the company is looking to develop a mixed-use project, with residential, retail and restaurant space. Pederson spent $7.2 million on the land at the auction, more than $2.5 million above the appraised value of the parcel.
“We’ve never incorporated a housing element into any of our shopping centers,” Pederson told Phoenix Business Journal. The company will partner with a multifamily developer for the residential portion and will develop the commercial portion on its own.
The retail section of the project will cost between $7 million and $8 million, Pederson said, though cost for the multifamily portion will be determined by the scope of the project.
Demand has been growing for different uses in north Phoenix.
“Companies are creating more and more employment, that causes demand to spike for multifamily development,” Pederson said.
The company will have to go through the rezoning process with the city of Phoenix for the entitlements to build the proposed development on the land, and the number of apartment units will depend on the zoning designation granted, he said. He estimated the project is about a year away from construction.
Pederson owns two other centers along the Happy Valley corridor, including one adjacent to the new parcel on 39th Avenue. It also is going through the zoning process on another shopping center on 83rd Avenue and Happy Valley in Peoria.
Pederson Group bought the parcel at an Arizona State Land Department auction. The money from the sale will be deposited into Permanent Land Endowment Trust Fund accounts, designated for the benefit of Arizona Pioneers’ Home, the Arizona Department of Corrections, and the Arizona Department of Juvenile Corrections.
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