Dec. 2—If all goes according to plan, downtown Mesa will be the state's first site of an apartment complex created from Arizona-made two-bedroom and studio homes stacked and connected together like LEGOs to form two five-story midrise towers on Main Street.

ZenniHomes, founded by businessman and former state lawmaker Bob Worsley in 2019, has signed a deal with an owner of a historic property on Main Street to create a 90-unit apartment complex on top of existing basement and ground level commercial spaces.

The modular homes would be sent to Mesa from ZenniHomes' new factory in Page in Northern Arizona at the site of the former coal-fired Navajo Generating Station power plant, which closed in 2019.

ZenniHomes' residential units are 320 square feet for the studios and 640 for the 2-bedroom and are built to the dimensions of shipping containers to reduce the costs of construction and transport.

The company says the individual units are ideal for first-time homebuyers, retirees, rentals and resort living.

But it is also a "developer solution for affordable housing" because the apartments can be stacked together for up to five stories and 100 units.

In June, Mesa's Board of Appeals approved several form-based code variances for the company's "ZenCity" plan in Mesa that it said were needed to construct the project on "an existing site with its unique and innovative construction techniques while maintaining the ground floor and basement commercial uses," documents submitted to the city stated.

Recently, the property owner announced that a deal has been signed with ZenniHomes to install the units and estimated the project would be completed next year.

ZenniHomes advertises its product as good for the earth and the economy while promising to deliver "luxury, style and sophistication."

The units, listed currently for $75,000 and $100,000, respectively, might also help housing-starved communities all over the country add workforce residential units at lower costs than conventional apartments.

A representative for ZenniHomes told the board of appeals that downtown Mesa is currently experiencing high demand for new residential units from "urban professionals," students attending classes downtown and workers in downtown's restaurants and boutiques.

By manufacturing the modular homes in Page, Worsley said in the release, ZenniHomes would be "reshoring manufacturing from China to an opportunity zone investment at the Navajo Generating Station."

Before it closed, the Page coal plant employed over 500 workers, including many people from the nearby Navajo Nation, so the loss of jobs was an economic blow to the region.

If ZenniHomes ramps up production, it could help replace some of the industrial jobs lost after the closure.

The investments in Page and downtown Mesa also has tax benefits for investors, as the two locations are within designated opportunity zones that allow investors to delay or eliminate federal capital gains taxes on income they put into opportunity zone projects.

For Mesa's ZenCity stacked units concept, ZenniHomes has partnered with opportunity zone investment company Caliber to bring the project to a property Caliber owns in downtown Mesa at 29 W. Main Street.

In 2017, Caliber began betting big on the revitalization of downtown Mesa, eventually purchasing 10 buildings totaling 160,000 square feet.

Brian Snider, senior vice president of real estate at Caliber, said the firm believed downtown Mesa "had the potential for pretty dynamic change."

"I think it's still emerging, but I think all the pieces are going to come together," Snider said of downtown. "When we get into the new year, we get more into the potential of the university."

A key element of downtown's transformation will be enticing the influx of students and professionals in downtown to stay after work hours and explore the burgeoning craft brew and restaurant scene.

Other Caliber projects recently opened or announced will contribute to this nightlife.

Earlier this year, Caliber announced downtown leases with Level 1 Arcade Bar, a venue featuring fully restored arcade and pinball machines along with a full menu and bar, and Copper City Spirits, an Arizona distillery that uses local ingredients.

Caliber announced last week that it has signed a lease with Sonoran Rows, a Craft Malthouse, which will be located at 18 W. Main. Set to open in the second half of 2023, Sonoran Rows will serve as a working malthouse along with a restaurant and bar operating in more than 15,000 square feet along with 3,000 square feet of patio space.

Malting is the process of soaking and germinating grains to release enzymes that enhance the grain for brewing and baking.

In a release, Caliber said the Sonoran Rows plans to malt 25 tons of Arizona grown barley and other grains in the traditional style of floor malting each week. The malted grains can be used by local breweries, distilleries and restaurants.

Snider suspects Sonoran Rows will be working with other players in Mesa's craft beer scene. Craft breweries "are a fairly tight network, and they see a lot of synergy being together and seeing that brewmaster atmosphere," he said.

Caliber also is working with the Salt River Pima-Maricopa Indian Community to build an entertainment-residential district on 10 acres of the Talking Stick Resort between Mesa and Scottsdale off the Loop 101.

Caliber has found users for many of the historic buildings it purchased in 2017, but Snider said it hasn't been easy getting them renovated.

"These have been challenging buildings. They're old," he said, but "we're largely on top of that and moving forward with getting these tenants in."