The Niels Peterson House, completed in 1892, was designed by the same man, James Creighton, who designed the Tempe Hardware Building . The home is located on the Northwest corner of Southern and Priest alongside modern-day businesses and suburban neighborhoods. At the time the house was built, the population in Tempe was roughly under a thousand people. Niels Petersen traveled here from Denmark in 1871 and homesteaded 160 acres of the Salt River Valley, where he would make the majority of his wealth in the ranching industry. Peterson's new home is a reflection of his high status during this time period as they were said to have been one of the wealthiest families in all of Tempe. Peterson made his fortune off agriculture. After many years of hard work, Peterson became one of the largest producers cattle, hay, and grain in the valley.
Peterson passed away in 1923; the town flag flew at half mast and many of schools and businesses closed down for his funeral. After his death, the house passed along to two families until it was later donated to The Tempe Historical Museum in 1979, who maintain it today as a museum. The Petersen House Museum is now open on weekends throughout December for Danish Christmas tours to the public. The Tempe History Museum has been collaborating with the Danish Immigrant Museum, which is located in Iowa in order bring some of the Danish practices that the Petersen’s once enjoyed here in Tempe.