A vacant lot across from Chandler City Hall will soon be home to a hotel, DC Steak House and office buildings, expected to bring hundreds of jobs and amenities to downtown Chandler.
Spike Lawrence Ventures broke ground Oct. 31 on the $58 million development at the corners of Arizona Avenue and Chicago Street.
The project is called New Square Chandler.
Spike Lawrence, a Tempe native who now lives in Chandler, has developed Downtown Ocotillo, the Falls at Ocotillo and the Ocotillo Holiday Inn in south Chandler.
This is his first venture downtown.
“I’ve always had an eye in the downtown Chandler success as it has grown and I wanted to be a part of that. I want to add to the great downtown,” he said.
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What’s coming in phase 1?
The first phase will include:
Great Western Bank, a regional bank based in Sioux Falls, S.D., will open a regional headquarters inside the three-story office building. The bank will have a branch on the ground level and its offices will occupy the second floor.
DC Steak House, which has been in downtown Chandler for eight years and has outgrown its location a block north will relocate to New Square, he said. The restaurant will be located on the ground floor of the office building facing the event square in the middle of the development.
Space has not yet been leased in the stand-alone restaurant building.
Construction of phase one is expected to be completed in fall 2019 for an estimated $33 million, Lawrence said.
Lawrence said downtown Chandler needs more office space, which is one reason why he wanted to bring his development to the area.
He’s developing the site with Missouri-based HCW, a real estate development and property management company. HCW is responsible for bringing the Hilton Garden Inn to the project and has several hotel properties across the Valley, he said.
Another parking garage on the way
The city will simultaneously build a $19 million parking garage with 940 spaces just west of the project on Oregon Street.
The city will host a ground-breaking ceremony 10 a.m. on Nov. 16. The garage is expected to be completed in late 2019.
The parking is needed as Lawrence’s property was often used for overflow parking.
The garage is the second going up in the increasingly popular downtown area. The city opened another garage on Arizona Avenue with 350 free parking spaces in September.
8-story office building in phase 2 plans
An eight-story office building is planned for phase two, which Lawrence anticipates going up in the next 18 months.
He said a tech company is in talks to lease half of the estimated $25 million building.
700 to 900 jobs
New Square Chandler’s first phase is expected to create more than 300 jobs and phase two is expected to bring in 400 to 600 jobs, according to Kim Moyers, the city’s downtown redevelopment manager.
The city upgraded water and sewer infrastructure at the site as part of the development agreement. The city also made street improvements along Arizona Avenue from Chandler Boulevard to Frye Road, which will benefit the entire downtown, Moyers said.
The $1.7 million improvements were part of a larger comprehensive plan throughout the downtown area to improve aging infrastructure, Moyers said.
“The New Square project brings much needed office space to the downtown,” said Moyers, calling it a key factor in creating a live, work and play area. “This has been the council’s vision for many years.”
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