Salt River Pima-Maricopa Indian Community OKs 162K-SF Costco With Fuel Center, Car Wash

Scottsdale-Area Tribe Approves 162K-SF Costco
CRE Market Beat Take
The long-term ground lease on tribal land adds durable income for the Community while introducing new big-box competition to the Scottsdale-area retail landscape.

The Salt River Pima-Maricopa Indian Community Council has approved a new 162,000-square-foot Costco warehouse store and fuel center on Community land just north of Pima and Indian School roads, immediately outside Scottsdale. The project is planned as a full-size warehouse club facility, with the program also calling for an on-site car wash to complement the fuel offering.

The Community expects the retail development to generate roughly 250 jobs, with hiring preference to be given to members of the Salt River Pima-Maricopa Indian Community. That employment focus positions the project as both a regional retail destination and a local job creator on tribal land. Specific wage levels, opening timelines, and longer-term employment projections were not disclosed.

According to reporting cited from AZBEX, construction activity is scheduled to begin this month on infrastructure that will support the new Costco facility. Planned improvements include a dedicated truck entrance designed to handle warehouse deliveries and two spine road entrances that will mirror the existing access points serving the Auto Show located to the south. These infrastructure components are intended to manage both customer and logistics traffic associated with the new store.

Costco will occupy the site under a long-term ground lease structure. The retailer has agreed to lease the 21.6-acre parcel for an initial 65-year term, with two potential five-year extension options available after the original term concludes. The initial lease term will be paid in a single lump sum. Lease rates for any renewal periods will be set later, based on market conditions in effect at the time those options are exercised. No information was provided on the total lease amount or implied land valuation.

Salt River Pima-Maricopa Indian Community is identified as the owner of the property. Costco Wholesale Corporation is listed as the developer for the project, reflecting the retailer’s direct role in delivering its new warehouse store on the Community’s land. Ware Malcomb has been selected as the design firm, providing architectural and design services for the facility and associated site improvements. Additional details on construction partners, financing sources, and project delivery dates were not provided in the available information.

Source:

Connect CRE
Share the Post:

Related Posts