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    AZBEX
    Home»Planning & Development»450KSF Warehouse to Replace Planned 566-Unit Multifamily in Tempe
    Planning & Development

    450KSF Warehouse to Replace Planned 566-Unit Multifamily in Tempe

    BEX StaffBy BEX StaffJanuary 13, 2026No Comments3 Mins Read
    A 2023 rendering of the planned IDM Fountainhead multifamily development. Credit: DAVIS/City of Tempe
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    By Roland Murphy for AZBEX

    After a planned 566-unit multifamily development from IDM Companies failed to take shape, Panattoni Development Company is now proposing to revert the site to industrial uses for a 448.8KSF warehouse development.

    IDM had planned in 2023 to build IDM Fountainhead at the SWC of Priest and Alameda drives in Tempe. The company requested and received a General Plan amendment and a rezoning from General Industrial to Mixed-Use, High Density for the project. No development was ever begun.

    AZBEX was the first outlet to report on the IDM Fountainhead plan. (AZBEX; March 17, 2023)

    According to the submitted narrative, PDC “is proposing to redevelop approximately 25 acres of property located at the southwest corner of Priest Drive and Alameda Drive within Fountainhead Corporate Park. The Site, which consists of two lots, currently accommodates six vacant and dated office buildings ranging in height from one to three stories and two parking garages. The existing office buildings, which no longer meet the needs of today’s workforce, represent an underuse of a property in a highly visible and employment-intensive area.”

    It goes on to say, “The Applicant is proposing to replace the existing structures with a new, high-quality industrial development that aligns with the Priest Drive employment corridor’s long-standing character.”

    PDC’s vision consists of two single-story buildings with heights of approximately 46 feet that would provide 354.8KSF of warehouse/industrial/manufacturing space and 88.7KSF of associated office space. Parking solutions would include an existing garage with 877 spaces and parking courtyards with 373 spaces. Forty-seven bicycle spaces are also included.

    According to the accompanying staff report, Building 1 will be 249.9KSF, and Building 2 will be 198.9KSF.

    To enable the new development, PDC has requested a minor General Plan amendment to change the land use designation to Mixed-Use Industrial Moderate and a reversion of the zoning from its current Mixed-Use 4-Planned Area Development back to General Industrial. The company has also requested a development plan review for building elevations and site and landscape plans.

    Surrounding uses include warehouse and distribution, other industrial, parking garages, office and multifamily. The narrative says, “The area is predominantly industrial in character, with GID zoned properties adjoining the Site on all sides. The Project will provide opportunities for work and will add to the mix of uses envisioned for the area. In addition, the Applicant is proposing to develop industrial buildings with associated office use space that are of superior quality, which will help to enhance and energize the Site’s Priest Drive, Alameda Drive, Fairmont Drive, and 55th Street frontages. Reestablishing the Site’s GID zoning will also allow for an appropriate redevelopment of the Site that supports the City’s industrial employment base.”

    A neighborhood meeting was held in October. No input was reported in the submittals beyond general questions and a request from a neighboring business representative for the presentation materials.

    The Tempe staff report says the project has received two preliminary site plan reviews.

    Staff recommended approval of the General Plan amendment and rezoning requests, which are expected to go before the Tempe Development Review Commission Jan. 13 and have a first hearing before City Council on Jan. 22. A second Council hearing is scheduled for Feb. 5.

    apartments/condos IDM companies IDM Fountainhead Industrial office Panattoni Development Company PDC Private Tempe City Council Tempe Development Review Commission warehouse/manufacturing
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