Phoenix | Astra Towers (2 towers) | 541 FT | 44 Floors & 425 FT | 30 Floors

[ChaseM]

Another disappointing blow, yet I’m not surprised. Phoenix and developers loves to hype skyline changing projects, but constant financing hurdles and a lack of long-term vision keep them stuck in the render stage while other cities actually build.

[Zapatan]

This is why I never listen to any "moving forward" articles regarding any US projects.

If it does actually get built in 26, fine, but at this point I agree it may never happen.

Kinda crazy how hard it seems to be to get a loan for a 500 footer in one of America's largest and fastest growing metros.

[Sepstein]

So brutal, I almost thought for a minute that it would actually break ground soon lol. I hope we archive this Astra thread for good. I just wont let myself ever click this thread again.

[Zapatan]

Originally Posted by Sepstein

So brutal, I almost thought for a minute that it would actually break ground soon lol. I hope we archive this Astra thread for good. I just wont let myself ever click this thread again.

If I understand correctly it could still happen.

[Obadno]

Originally Posted by Zapatan

If I understand correctly it could still happen.

It absolutely can still happen. The expectation is for rate cuts coming in the fall, with the cost of this projects it makes sense for them to wait another 60-90 days to finalize financing.

We are living in the most constraining financial environment we've seen since the 1990's. Most of the people involved in this project both on the construction and financial side are dealing with a high interest environment for the first time its stalled out many projects and slowed the velocity of activity (which is the point to tamp down inflation).

This isnt a vague project like Barrister was, this is a solid project with a lot put into it and its been delayed for a few years due to interest rates obviously. These sorts of investments payoff over 10 or 20 years from the perspective of the developer and investors, 2 years delay in groundbreaking is nothing.

[Obadno]

Originally Posted by somethingfast

San Antonio also and, yes, Phoenix lacks vision big time. Something like that...anything...would help make DT more of a destination.

This is the biggest issue the city has no vision, and no real benefactors. The money is not from here or it stays in Scottsdale/PV

[somethingfast]

Originally Posted by Obadno

This is the biggest issue the city has no vision, and no real benefactors. The money is not from here or it stays in Scottsdale/PV

100% correct. "Benefactor" is a a great term for what we lack. No corporate pride. It really is beyond the pale that our tallest building is over 50 years old and we're now the 5th largest city in the country.

[Obadno]

Originally Posted by somethingfast

100% correct. "Benefactor" is a a great term for what we lack. No corporate pride. It really is beyond the pale that our tallest building is over 50 years old and we're now the 5th largest city in the country.

Correct, Even the companies that are here they don't have any flagship offices or locations downtown, there are no wealthy families or organizations funding museums, parks, or theaters downtown.

Cities that have these things don't have them because the cities themselves fund them, the wealthy citizens of the city create them.

The closest things we've had to it are Colangelo who brought us the Diamondbacks and Crow who brought ASU downtown. Why hasn't best western built a flagship hotel downtown?

https://en.wikipedia.org/wiki/List_of_Arizona_companies

Look at some of the companies on this list, why isn't the city trying to get them to put their offices downtown? Some of these companies are absolutely massive. How does Sprouts, Discount Tire, American Express, Pet Smart, State Farm, various banks etc etc have operations in the thousands but locate in suburban offices or in Scottsdale

How did they let the Axxon situation fly by without trying to snag them to build a downtown HQ. Freeport McMoran is the only real company with a name on a building and they arent even there, they just own it.

I could go on and on but the City council has absolutely no concern for the downtown and never has. IN some ways that's not a bad thing, sometimes too much meddling is bad, but mostly it has let downtown wallow because it has never had a natural draw.

I mean even Hell TSMC is spending 160 billion not just in the state BUT IN THE CITY ITSELF and they still didnt even get them to put 100 office workers and a nice TSMC sign on one of our empty downtown office buildings????

They jsut dont care.

[TllrSkyline-01]

Time to put pressure on our city leaders to remove the homeless from downtown and clean up crime in the area. Who the hell wants to pay $4k a month for rent in a building where the street is filled with druggies! Not me! Who wants to invest in a multi-million-dollar high-rise HQ that will get tagged, vandalized, and force their employees to walk through the human debris and panhandlers every day? Clean up our cities and investments will come!!!

Also, the FED not dropping interest rates have LOTS to do with all the delays!

[ASU Diablo]

Originally Posted by TllrSkyline-01

Time to put pressure on our city leaders to remove the homeless from downtown and clean up crime in the area. Who the hell wants to pay $4k a month for rent in a building where the street is filled with druggies! Not me! Who wants to invest in a multi-million-dollar high-rise HQ that will get tagged, vandalized, and force their employees to walk through the human debris and panhandlers every day? Clean up our cities and investments will come!!!

Also, the FED not dropping interest rates have LOTS to do with all the delays!

I think it’s time to lock this thread until any actual development news that this will get built.

And the FED cannot drop rates until the PRESIDENT drops this stupid tariff war that’s causing unnecessary pressure on the economy. Rates would have dropped a long time ago had it not been for tariffs.

[exit2lef]

Originally Posted by ASU Diablo

I think it’s time to lock this thread until any actual development news that this will get built.

And the FED cannot drop rates until the PRESIDENT drops this stupid tarring war that’s causing unnecessary pressure on the economy. Rates would have dropped a long time ago had it not been for tariffs.

As much as I agree, going political guarantees that this thread will be truncated in some way -- probably not locked, but via deletions of posts in the ensuing off-topic debate. I do like the idea of a tarring war, though. Can feathers also be part of the arsenal?

[ASU Diablo]

Originally Posted by exit2lef

As much as I agree, going political guarantees that this thread will be truncated in some way -- probably not locked, but via deletions of posts in the ensuing off-topic debate. I do like the idea of a tarring war, though. Can feathers also be part of the arsenal?

LOL it would be appropriate as well

[exit2lef]

Originally Posted by TllrSkyline-01

Time to put pressure on our city leaders to remove the homeless from downtown and clean up crime in the area. Who the hell wants to pay $4k a month for rent in a building where the street is filled with druggies! Not me! Who wants to invest in a multi-million-dollar high-rise HQ that will get tagged, vandalized, and force their employees to walk through the human debris and panhandlers every day? Clean up our cities and investments will come!!!

Also, the FED not dropping interest rates have LOTS to do with all the delays!

The only streets I've seen recently that are anywhere even close to being "filled with druggies" are along the I-17 corridor all the way up to Deer Valley. I agree that a more strenuous approach to vagrancy and loitering is needed, but treating it as a predominantly Downtown problem would misallocate resources.

[Obadno]

Originally Posted by ASU Diablo

I think it’s time to lock this thread until any actual development news that this will get built.

And the FED cannot drop rates until the PRESIDENT drops this stupid tariff war that’s causing unnecessary pressure on the economy. Rates would have dropped a long time ago had it not been for tariffs.

The fed can do whatever they want to do. The current prevailing interest rate is at target so they could drop interest rates however there is a larger thing in here which I’m not going to get into.they should probably should drop maybe half a percent. But we definitely don’t need to go down to 2% like it was in the past that would just create inflationary bubble.

But don’t ever sit around, saying what the fed can and cannot do they can do anything they want. All of these rules are simply made up. The Fed doesn’t even need to exist.

Economist have done an excellent job over the last hundred years convincing everyone that they are like a science or a mathematical principle and they aren’t because economics are not rational. They’re just a reflection of human behavior.

[somethingfast]

Originally Posted by Obadno

Economist have done an excellent job over the last hundred years convincing everyone that they are like a science or a mathematical principle and they aren’t because economics are not rational. They’re just a reflection of human behavior.

Not true. Economics is based upon rational self-interest, both at the micro level (humans) and macro level (nations). It's not a natural science, no, but it is more "science" than a business administration.

PS - the Fed is a political entity protecting the interests of bankers and (some) politicians. If you want to understand the origin of the Fed, I highly recommend The Creature From Jekyll Island by G. Edward Griffin. The Fed does nothing to help average Americans and people are waking up. Natural interest rates? What are those?

[combusean]

The people interested in an argument about economics here are vastly outnumbered by those who want Astra news.

Locking for obvious reasons.

[combusean]

I am briefly unlocking this thread given that there is news on it.

This will be HEAVILY moderated so stay on topic.

Originally Posted by ASU Diablo

[snipped by moderator]

Lots of information/updates to unpack here, including updates on The Astra.

• The Whitney (Central/McDowell) breaking ground next month
• Revelry (955 E University in Tempe) breaking ground later this year (Q3 2026)
• Astra - Permits being pulled in the 2nd half of this year

https://www.bizjournals.com/phoenix/news/2026/01/22/empire-group-2-billion-phoenix-pipeline.html

Empire Group of Cos. plans to break ground next month on a 24-story apartment tower near the Phoenix Art Museum.

The $165 million project in midtown is part of $1.22 billion in total development costs the Scottsdale-based developer has on its plate across four apartment tower projects — along with another $1.07 billion in build-to-rent projects totaling 3,500 units across 15 properties in metro Phoenix.


To be called The Whitney, that 24-story project will include 328 apartment units. Brinkmann is general contractor for the project, which is set to rise at the southwest corner of Central Avenue and McDowell Road in downtown Phoenix.

Also breaking ground this year will be the $280 million Revelry, which spans two apartment towers at the southeast corner of University Drive and Rural Road in downtown Tempe. A 17-story tower is connected to a 15-story tower by a 27,000-square-foot pool deck on the second floor.

Selected as general contractor, Layton will break ground during the third quarter on Revelry, said Randy Grudzinski, partner and head of capital markets for Empire Group. Amenities for Revelry will include a clubhouse with spa and fitness center, a 2-lane bowling alley and rooftop pickleball courts.

"It will be the highest-end rental product in that downtown Tempe market," Grudzinski said.

Empire exec: City's tallest tower project moves forward
Meanwhile, Empire Group is moving forward with construction on Astra, the tallest building planned in Arizona. Plans call for securing permits during the second half of this year, he said, after working through some financing issues.

The 541-foot Astra tower was delayed when interest rates were on the rise and lenders pulled back amid an oversupplied market, Grudzinski said.

"They tightened up underwriting and cut back on loans they were making," he said. "That's why you saw the number of permits falling by such a large number."

As a result, apartment unit deliveries will drop by 60% overall, he said. Lenders see that supply has been reined in and are beginning to open up their wallets, Grudzinski noted.

"There is a lot more construction credit now out there compared to where it was a year ago, if not two years ago," he said.

The biggest demographic group for these luxury towers are ages 25 to 35, Grudzinski said, adding that the average age of the first-time homebuyer is now 40 years, compared with only 28 two decades ago. With mortgage rates still hovering around 6%, people are renting at record levels.

"We absorbed more multifamily units in 2024 and 2025 than were absorbed in the five years prior to that," he said. "We always knew this excess inventory was going to get eaten up, which has happened."

As a result, 2026 will be a transition year from a renters' market to a landlords' market, he said. "As developers, you can't look at where the market is now," Grudzinski said. "What you care about is what it's going to be two to three years down the road when we're delivering units and leasing up."

[ASUSunDevil]

Still looks real to me...

Rebranded as Arro: https://azbigmedia.com/real-estate/arro-...building-in-arizona-to-downtown-phoenix/

[DoublePines]

"permit-ready by the end of 2026" fingers crossed

[combusean]

That new name is so stupid. I'm not even changing the thread title, it's embarrassing.