The Novus Innovation Corridor, a 355-acre planned mixed-use development located on the Tempe campus of Arizona State University, is nearing completion of its third phase. At the time of construction, Novus will include more than 10 million square feet of retail, restaurant, urban residential housing, hotels and offices.
According to ASU’s Seidman Research Institute, the economic impact of developing completed and active projects is estimated at $ 1.86 billion. It is also forecast that 33,734 will be created by 2035 through operations at Novus, with an additional 20,000 temporary construction jobs.
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The land that is being built is owned by ASU in what is called a sports facilities district. Developers within Novus pay fees to ASU instead of property taxes, and these funds must be invested in the university’s sports facilities.
“This is a once in a lifetime opportunity where a university has all of this underutilized land and market demand to create something that will successfully generate income,” said Brian Kearney, senior vice president of development for Catellus – the main developer of Novus – at a lunch hosted by AZCREW.
A new urban center
Development at Novus is planned in four phases. Marina Heights, a 20-acre, 2.1 million-square-foot campus for State Farm, anchored the first phase. Transwestern Investment Group and JDM Parners acquired Marina Heights in 2018 for $ 928 million. The second phase gave the Sun Devil Stadium a $ 375 million renovation, which was completed in 2019. An office park is planned for phase four, on the south side of Rio Salado Parkway and east of Rural Road .
The third phase, currently under construction, focuses on the creation of an urban district at the crossroads of University Drive and Rural Road. Tower 777, developed by Ryan Companies and opened in July 2020, is a six-story building with 160,907 square feet of office space and 8,316 square feet of retail. Mortenson Development built the eight-story, 259-room Hyatt Place / Hyatt House, which began taking reservations in August 2020.
In support of the surrounding neighborhood and ASU events, the Novus Place parking garage was completed in June 2020, adding approximately 1,800 parking spaces. “It was a better use of the land to create a centralized parking structure, rather than creating three or four smaller ones for individual uses,” says Kearney.
Projects to be completed in the third phase include the Piedmont, a multi-family structure that will add 318 units to the market when completed in December 2021. Opening in the third quarter of 2023 will be 700 Novus Place, which will be approximately 147,800 feet tall. office squares. and 11,500 square feet of retail space on the ground floor. A new apartment complex developed by Transwestern and slated for completion in the second quarter of 2024 will contain 200 micro-units, with 80% of the studios averaging 450 square feet.
“Most of the units are studio apartments fully furnished with furniture that can convert the space from a bedroom to a living room when there is no sleep,” notes Kearney. “This complex is not intended to accommodate large concentrations of students. Nothing prevents students from renting accommodation and there will be students living in these places, but the idea for Novus in general is not to be student-oriented. It is truly a mixed-use commercial district.
“Development within the Novus Innovation Corridor aligns with our vision to be America’s premier hub for innovation and entrepreneurship at all levels,” said Michael Crow, president of ASU, in a statement. “The benefits to our students, faculty, the university, the city of Tempe and the business community are already being felt – and they will only increase as other visionaries construct new buildings and facilities to deliver. opportunities under Novus. “