The Proposal

The Suburban Extended Stay Hotel at 1635 North Scottsdale Road — originally built in 1970 as a multifamily/hotel development — could be converted into 142 apartments under a proposal called Tempe Oasis.

The property has operated as a hotel for most of its 56-year history, dating back to its early days as Woolley's Petite Suites, an extended-stay style hotel that appears in the Tempe Museum's historical collection. It later operated under various hotel brands before becoming a Suburban Extended Stay Hotel.

The Tempe Development Review Commission will consider a Planned Area Development (PAD) Overlay request at its June 9, 2026 meeting. The item was continued from the May 12 DRC meeting.

Owner HK 24th Street LLC, tracing to the Pham Family Trust — which purchased the property for million in September 2019 — hired Camber and True Collective as the design firm and applicant. The existing seven buildings would retain their footprints in a true adaptive reuse: converting 142 hotel rooms into studio, one-bedroom, and two-bedroom apartments.

Unit Breakdown - 5 studio apartments - 130 one-bedroom units - 7 two-bedroom units - 142 total

Site Improvements

Plans include upgrading dated building facades, refacing exterior elevated walkways and stair systems, replacing deteriorating site and screen walls, and adding new gates, parking shade structures, and 56 bicycle parking spaces. A 1,500-square-foot dog run and two new trash enclosures are also planned.

Three small existing building structures on the southeast corner of the site will be demolished and replaced with paved covered parking.

A small restaurant is planned on the southwest corner. Community amenities include a courtyard, a pool, a clubhouse, and a fitness area.

Parking: The Sticking Point

The site has 145 parking spaces, which met the hotel's one-space-per-room requirement. But multifamily and restaurant uses have higher demand — the staff report calculates 256 spaces would be required, a deficit of 111.

Staff had recommended changing the unit count or mix to reduce parking demand, but the owner chose not to modify the project. Staff reports indicate they will continue working with the applicant to minimize potential parking impacts, including discussing a parking permit system for adjacent street frontages.

Regulatory Path

The site already has the required zoning, following an upzoning approval in 2022. What's needed is the PAD Overlay to establish development standards before the final development plan review. The project has already gone through two preliminary site plan reviews and two formal minor development plan reviews.

Why It Matters

Hotel-to-apartment conversions are a growing trend across the Valley, accelerated by Arizona's HB 2297 (signed April 2024), which requires cities over 150,000 to streamline adaptive reuse approvals. Converting existing hotel stock into housing adds to Tempe's constrained housing supply while repurposing functionally obsolete commercial properties.

The project would add 142 units to Tempe's housing stock in a north Tempe location near Scottsdale Road, Loop 101, and nearby employment centers.

What's Next

The DRC will consider the PAD Overlay at its June 9 meeting (case PL260032). If recommended, the item proceeds to the Tempe City Council for final approval. The parking issue is expected to be a focus of commission deliberations.

Staff Contact: Robert Mansolillo — Robert_Mansolillo@tempe.gov, (480) 350-8245