Palindrome Lands Financing for Phoenix Affordable Project
The development is part of a larger 400-unit master plan.
Palindrome Properties Group has obtained construction-to-permanent tax-exempt bonds for the development of The Residences at Dorsey Station, a 162-unit affordable housing project in Tempe, Ariz. Boston Capital financed the endeavour.
The community will be part of the larger Dorsey Station master-planned redevelopment, which is set to include 400 units, of which 90 percent will be income-restricted for residents earning between 30 and 80 percent of the area median income. Palindrome teamed up with Urban Development Partners for the project.
Set to feature studio, one- and two-bedroom layouts, The Residences at Dorsey Station is one of the five buildings that will rise as part of the master plan. Palindrome and Urban are already envisioning the next structure, a 72-unit project dubbed Encore on Dorsey Station, subject to a $2.5 million 9 percent LIHTC application submitted by the duo.
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Dorsey Station will take shape on a nearly 7-acre site at the northeast corner of Dorsey Lane and Apache Boulevard, as well as the southwest corner of Lemon Street and Dorsey Lane. Downtown Tempe is roughly 3 miles northeast.
The site is currently home to a former retail property that closed in 2021. The city of Tempe owns the property and entered a 99-year ground lease with the developers. Demolition of the shopping center will begin this month, while construction on Dorsey Station is slated to kick off later this year or early in 2027, according to the city.
Tempe’s approach to meet housing demand
Tempe estimated demand for 21,324 new housing completions by 2040, as part of its 2019 affordable housing strategy. To meet the requirements, the city approved Hometown for All, an initiative that provides affordable housing funding for acquisitions, land purchases or redevelopment activities.
Hometown for All was the catalyst for the development of La Victoria Commons, a 104-unit, income-restricted community that came online earlier this year. Copa Health spearheaded the project alongside partners such as Dominium and National Equity Fund, among others.
