Pederson Group has broken ground on a $100 million urban retail village in Peoria, northwest of Phoenix.
The Phoenix-based developer is building The Trailhead, a 40-acre, 903,000-square-foot shopping center and apartment project on the northeast corner of 83rd Avenue and Happy Valley Road, the Phoenix Business Journal and Arizona Republic reported.
The project, seven years in the making, includes a 136,000-square-foot retail center anchored by a grocery store, restaurants, shops, a renovated church and a three-story, 336-unit apartment complex.
The Trailhead will include a water feature, community garden and open areas for eating, games and community events. The development at the foot of the Sunrise Mountain Preserve is named after the Happy Valley Corridor’s trail system.
The $65 million,140,000-square-foot shopping center will include a 63,000-square-foot Safeway market; a full-service Tacos & Craft, with Mexican fare and craft beer; and the Sparrow, an American-themed concept from the creator of the Squid Ink sushi bar.
The first phase, which includes the grocery store and shops, is 80 percent leased and is expected to be completed this fall.
The $35 million apartment complex — with up to nine buildings, according to renderings — is expected to break ground early next year and be completed in 2027. It will include a clubhouse, fitness and yoga rooms, recreational areas and a resort-style pool.
The Happy Valley corridor has more than 3,000 homes under development and more than 56,000 households in the immediate area, according to Pederson Group.
Retailers have signed on to new shopping centers in the West Valley to keep pace with growing cities that have been underserved, according to the Business Journal.
Jim Pederson, founder of the development firm, said it took seven years to assemble five parcels that included state-owned land bought at auction. Safeway had approached Pederson to get The Trailhead built.
A neighborhood church, LifePath, owned a portion of the property. It has worked with the Pederson Group to develop the site and build its new campus on the southeast corner
“Peoria is growing, particularly in this part of Peoria,” Pederson said at the groundbreaking. “We have income levels that rival Scottsdale’s. Density is coming. And I can see that our retailers would do a very good job here.”
The construction comes weeks after the Peoria City Council approved a landmark deal with Amkor Technologies to build a $2 billion semiconductor packaging and testing facility.
— Dana Bartholomew
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