Dorsey Station: 400 Apartments and a Grocery Planned at the Old Food City Site in Tempe

by Daniel Barash

By Daniel Barash, REAL Broker AZ, LLC | Updated November 4, 2026

Short answer: Dorsey Station is a 400-apartment, mostly affordable development planned on city-owned land at Apache Boulevard and Dorsey Lane in Tempe, where the old Food City stood. It includes about 10,000 square feet of space meant for a grocery store. The Tempe City Council approved it unanimously on November 13, 2025, the old Food City came down on July 23, 2026, and construction could start as early as this winter, according to Tempe News. No grocer has been named.

If you live in the neighborhoods north of Apache Boulevard, the question you probably care about most isn't the apartments. It's whether you'll get a grocery store back. Here's what's actually been approved, and what hasn't been promised.

What is Dorsey Station?

Dorsey Station is a mixed-use project on two city-owned sites totaling 6.7 acres at Apache Boulevard and Dorsey Lane. Plans call for 400 apartments in five residential buildings plus a one-story commercial building of about 11,000 square feet on Apache Boulevard. The city keeps the land and leases it to the developer.

The numbers below come from the City of Tempe staff report in the November 13, 2025 City Council agenda packet (case PL250278), unless noted.

Detail	What's known
Apache site	1320 E. Apache Blvd., northeast corner of Apache Boulevard and Dorsey Lane: 4.71 acres, 287 apartments, about 11,062 sq. ft. of commercial space
Lemon site	1412 S. Dorsey Lane, southwest corner of Dorsey Lane and Lemon Street: 2.00 acres, 113 apartments
Unit mix	3 studios, 281 one-bedroom, 116 two-bedroom
Height	Up to six stories on Apache Boulevard (about 76 feet); four and five stories on the buildings closer to houses and on the Lemon site
Parking	350 vehicle spaces, 434 bicycle spaces
Affordability	About 90% affordable and 10% market rate, for households earning 30% to 80% of area median income (Tempe News, July 2026)
Grocery	About 10,000 sq. ft. of space slated for a grocery, plus about 1,000 sq. ft. for a food pantry; no operator named
Land	Owned by the City of Tempe, which bought the property in 2021 for $10.7 million (Tempe News, July 2026)
Developer	Dorsey Development Partners, led by Urban Development Partners (Charles Huellmantel and Todd Marshall), with Palindrome
Approvals	Development Review Commission 6-0 on Oct. 28, 2025; City Council unanimous on Nov. 13, 2025
Status	Old Food City demolished July 23, 2026; listed "in plan review for building permit" on the city's projects map (updated Oct. 2, 2026)

Details as of November 2, 2026, subject to change.

dorsey station tempe rendering apache boulevard building a

Conceptual rendering of Dorsey Station's Building A along Apache Boulevard. Rendering: Yale+Brown Architects for Dorsey Development Partners, from City of Tempe case PL250278 exhibits (2025). Design may change.

Will Dorsey Station really bring back a grocery store?

That's the plan, but no grocer is signed. The approved design sets aside about 10,000 square feet for grocery use in a one-story building between the two tallest apartment buildings on Apache Boulevard. The city's site plan review even added cart storage and a refuse enclosure "to accommodate a future grocer."

Size was the sticking point at the council hearing. Some neighbors wanted a 20,000-square-foot minimum. Resident Charles Buss told the council, "I have yet to find a grocer that can operate in that small of a space," according to The Arizona State Press (November 24, 2025). Mayor Corey Woods pushed back on a bigger minimum: "If you go to a minimum of 20,000, you're, frankly, going to limit your options with that kind of size," as reported by Tempe News. The developer's attorney, Charles Huellmantel, said the space could be built larger if a grocer needs it.

Here's how I'd read it. A grocery space is approved. A grocery store is not. Until an operator signs a lease and the name shows up in a city filing or a press release, treat it as a goal.

dorsey station tempe rendering grocery building apache boulevard

Conceptual rendering of the planned grocery building (Building B) on Apache Boulevard. Rendering: Yale+Brown Architects for Dorsey Development Partners, from City of Tempe case PL250278 exhibits (2025).

When will construction start at Apache and Dorsey?

Construction could begin as early as winter 2026-27, with housing possibly available by 2029, according to Tempe News (July 29, 2026). Tempe News has also reported the project will be built in phases.

What's happened so far:

2021: The City of Tempe bought the vacant Food City center for $10.7 million in General Fund money (Tempe News).
2025: The city picked Dorsey Development Partners through a request for proposals, after the first developer it chose couldn't reach terms (The Arizona State Press).
October 28, 2025: The Development Review Commission recommended approval 6-0.
November 13, 2025: The City Council approved the project unanimously (KTAR/Phoenix Business Journal).
July 23, 2026: Crews demolished the former Food City (Arizona's Family).
As of October 2, 2026: In plan review for a building permit, per the City of Tempe's development projects map.

"Residents have told us that expanding affordable housing is a top priority. We've listened and taken action," Mayor Woods said, as quoted by Tempe News in July 2026.

Who can live at Dorsey Station?

About 90% of the 400 apartments are planned as affordable and 10% at market rate. The affordable units are for households earning 30% to 80% of area median income. Tempe News (July 2026) put that at roughly $27,000 a year at 30%, $45,000 at 50% and $71,950 at 80% for a two-person household in the Phoenix-Mesa-Chandler area.

Some units are set aside for seniors; Tempe News reported 79. Leasing details, rents and how to apply haven't been published. Income limits change every year, so check the current numbers when applications open.

Where is Dorsey Station on the streetcar and light rail?

It's at the south end of the Tempe Streetcar. The streetcar runs about three miles from Rio Salado Parkway and Marina Heights to Dorsey Lane and Apache Boulevard, according to Tempe Tourism. The Valley Metro light rail also has a station at Apache and Dorsey, per the developer's application.

The city zoned both sites as transit station areas because of the nearby streetcar station on Apache Boulevard, according to the staff report. Next door are the city's EnVision Center, Tempe Fire Station No. 1 and the New School for the Arts and Academics.

If you're already following this week's series, Dorsey Station is the other end of the same streetcar line that runs past 250 Rio, the condo tower planned next to Tempe Beach Park. Same line, very different projects.

What does Dorsey Station mean for nearby homeowners and buyers?

For the neighborhoods around Apache and Dorsey, the most concrete change is already done: the vacant Food City center is gone. The developer's application described the old center as cutting off walking routes between the neighborhood and Apache Boulevard. What replaces it is 400 apartments, street-facing shops and, if a grocer signs, a place to buy groceries without driving.

Things I'd weigh if you own or are buying nearby:

Traffic on the side streets. At the July 2, 2025 neighborhood meeting, 13 residents attended, and traffic into the neighborhoods to the north was a main concern, per the staff report. The final plan puts surface parking on the north side of the Apache site.
Height near houses. The tallest buildings face Apache Boulevard, and the buildings closest to single-family homes are four and five stories. At the commission hearing, three residents asked for Building A to be five stories instead of six. It stayed at six.
Construction years. If work starts this winter and housing arrives around 2029, expect a long construction period on Apache Boulevard.
The grocery is still a maybe. Don't buy a house next door counting on a named store opening on a set date.

I'm not going to tell you this raises or lowers anyone's home value. Nobody can promise that. If you own near Apache and Dorsey and want to know what your home would sell for today, I'll pull the recent sales and show you.

Frequently asked questions

What is being built at the old Food City on Apache Boulevard in Tempe?

Dorsey Station: 400 mostly affordable apartments, about 11,000 square feet of commercial space including roughly 10,000 square feet for a grocery, and a small food pantry space. The City of Tempe owns the land.

What grocery store is going into Dorsey Station?

None has been announced as of November 2, 2026. The approved plan reserves space for a grocery, but no operator has signed publicly.

When will Dorsey Station open?

Tempe News reported in July 2026 that construction could begin as early as winter, with housing possibly available by 2029. No firm opening date has been announced.

Is Dorsey Station affordable housing?

Mostly. About 90% of the units are planned for households earning 30% to 80% of area median income, and about 10% will rent at market rates.

Who is the developer of Dorsey Station?

Dorsey Development Partners, led by Urban Development Partners, the Tempe team behind the Farmer Arts District, working with Palindrome.

Thinking about living near Apache and Dorsey?

I can show you what's for sale around Apache Boulevard and the streetcar line and help you compare it with other parts of Tempe. Call or text 480.906.3831. You might also like my guide to living in South Tempe, from Kiwanis Park to Warner Ranch, things to do in Tempe in November 2026, and my Tempe real estate page.

Development details come from City of Tempe public records and news reports and are as of November 2, 2026, subject to change. Renderings are conceptual. Not legal or financial advice.

Sources

About the author: Daniel Barash has spent 10 years in Phoenix-area real estate and works with buyers and sellers across Tempe, Chandler and the East Valley with REAL Broker AZ, LLC.

Daniel Barash | REAL Broker AZ, LLC | 480.906.3831