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Phoenix Approves $117M Mixed-Use Redevelopment with Aardex LLC at Central Avenue and Madison Street

  • When: 2025/04/09
  • Address: 1 West Madison Street and 10–20 West Jackson Street, Phoenix, AZ
  • City: Phoenix
  • State: AZ
  • Category: Economic Development Incentives
  • Subcategory: Tax Increment Financing
  • Asset Class: Multifamily
  • Property Type: Workforce Housing
  • Size: 1.05 acres; 262 residential units, 6,800 sq ft ground-floor retail, 202 parking spaces; 244,322 sq ft of new construction

On April 9, 2025, Phoenix City Council adopted Ordinance S-51813 to enter into agreements with Aardex LLC for a two-phase redevelopment at the southwest corner of Central Avenue and Madison Street. The $117 million project will include the adaptive reuse of a 13,500 sq ft historic building (Madison Phase) and the construction of a 14-story, 262-unit multifamily residential tower (Jackson Phase) with 6,800 sq ft of ground-floor retail and 202 parking spaces. The City will lease the site back to the developer for up to 25 years under a GPLET structure with no tax abatement. Rent revenue will total $643,750 over the lease term, and construction will generate an estimated $1.1 million in sales tax. Aardex will contribute 100% of the City's share of property taxes during the lease term to the City's Affordable Housing Trust Fund, enhancing its commitment to affordable housing initiatives.

Why it Matters

This project revitalizes a key downtown site through historic preservation and high-density residential development while supporting the City's affordable housing goals via a dedicated trust fund contribution.

Source

Applicant - City of Phoenix Community and Economic Development Department


Ownership - City of Phoenix


Developer - Aardex LLC


Allowed Uses: Mixed-use redevelopment including multifamily residential, ground-floor retail, and adaptive reuse of historic commercial space. Includes historic preservation of 1 W. Madison and a new 14-story residential tower.