On April 9, 2025, Phoenix City Council approved Ordinance S-51809, authorizing a redevelopment and disposition agreement with Pennrose, LLC for the sale of three City-owned parcels totaling 0.4 acres at 1016 N. 2nd Street. The $20 million project will consist of a five-story, 64-unit affordable housing complex with 4,650 square feet of commercial space and 32 parking spaces. All units will be deed-restricted to households earning no more than 60% of Area Median Income for a period of 40 years. The City will sell the property for $1.5 million, with $50,000 held in a proposal guarantee. Pennrose has 36 months to secure permits and 30 months to complete construction after starting. This redevelopment will contribute approximately $300,000 in construction-related sales taxes and aligns with Phoenix’s affordable housing goals.
This project supports long-term affordability in the downtown core and puts underutilized public land into productive use. The development addresses housing needs while also contributing to the local economy and urban vitality.