Phoenix Development News (4) - Page 8

combusean · #**141** Posted **Sep 6, 2026, 12:47 AM**

There is a plan to reopen a location downtown briefly mentioned on their website but the timeframe seems aspirational given where their other budgeted priorities are.

I honestly hope there's not an outcry about preserving the existing structure, because at the end of the day it's a crappy place to work out or swim and it makes no sense rehabbing SROs in 2026.

I'd like to see a 2 story podium for a gym and community services/space/etc and, eg, a 5 story woodframe complex of mixed-income traditional studios on top. They could fit somewhere around 300 units in that footprint that would actually sustain their mission rather than lingering around at 140 SROs at 40%ish occupancy for "transitional" housing that is nothing but a sinkhole of money.

ASU Diablo · #**142** Posted **Sep 10, 2026, 3:47 PM**

https://www.bizjournals.com/phoenix/news...x-freeport-mcmoran-tower-formation8.html

Quote:

The new owner of a notable downtown Phoenix tower just closed on a $44.5 million loan to renovate and reposition the property for new office users.

The 26-story high-rise – built in 2010 at 333 N. Central Avenue – had been the longtime home of Freeport-McMoRan until the mining giant began moving out of the top floors it occupied during the Covid-19 pandemic.

Freeport-McMoRan occupied eight floors, amounting to roughly 250,000 square feet. It officially terminated its lease in May of this year, according to Maricopa County records.

The lower half of the building still operates as the 242-room Westin Phoenix Downtown hotel and wasn’t included in the December sale.

At the end of last year, Phoenix-based real estate investment firm Foundation 8 LLC acquired the top half of the property from Peakstone Realty Trust. The exact sale price was not disclosed, but the buyer obtained an $18 million loan in December 2025 that was set to mature September 1, 2026 – a day before the newest loan was recorded in Maricopa County, public records show.

Now, Foundation 8 is working to revamp the office portion to draw in a new mix of tenants rather than one key user, according to a statement from the firm.

Planned renovations are mostly focused on build-to-suit tenant improvements for a broader range of incoming users, a spokesperson said in an email.

The rebrand will also include removing Freeport-McMoRan signage, which would be replaced by a “future marquee tenant,” the spokesperson said.

Newmark is leading leasing efforts and actively marketing the property now.

The new loan comes from Hilco Global, a subsidiary of ORIX Corporation USA, and will help fund leasing costs, tenant improvements and the addition of new amenities, according to the firm. New York-based Sterling Realty Capital served as a debt placement agent and financing advisor to Foundation 8.

Elsewhere in Phoenix, Formation 8 is working to reposition another noteworthy property – the Sheraton Crescent Hotel off Interstate 17, near the former Metrocenter mall.

The firm in March acquired the building – which had been vacant and in receivership for three years – for $9.25 million. A group of partners are now investing $400 million to convert the hotel into 1,786 apartment units.

combusean · #**143** Posted **Sep 10, 2026, 6:27 PM**

Holy —, I didn't realize that Sheraton Crescent was turning into 1,786 units. That will hopefully provide a lot of new life in that area.

ASU Diablo · #**144** Posted **Sep 10, 2026, 7:17 PM**

Quote:

Originally Posted by combusean

Holy —, I didn't realize that Sheraton Crescent was turning into 1,786 units. That will hopefully provide a lot of new life in that area.

Yeah this was brought up in the old thread back in March 2026. Link to article was also shared.

https://skyscraperpage.com/forum/showpost.php?p=10567575&postcount=22136

TllrSkyline-01 · #**145** Posted **Sep 10, 2026, 7:50 PM**

Quote:

Originally Posted by ASU Diablo

https://www.bizjournals.com/phoenix/news...x-freeport-mcmoran-tower-formation8.html

This is great news. Van Buren and Central...!

SWC = $135 Million renovation to the Securities Building.
NWC = Central Station
NEC = $44 Million for the Freeport McMoran Tower

It's now time for the owners of the dilapidated Chase tower to do something on the SEC. Plywood patches and a construction fence is very disappointing to say the least after all these years.

combusean · #**146** Posted **Sep 10, 2026, 8:31 PM**

Quote:

Originally Posted by ASU Diablo

Yeah this was brought up in the old thread back in March 2026. Link to article was also shared.

https://skyscraperpage.com/forum/showpost.php?p=10567575&postcount=22136

Yeah I knew they were converting the hotel but it seems like they've increased the unit count *substantially*. I don't know how they will fit them all on this parcel but it is interesting to watch.

The buildings behind this are being converted into 376 units as well.

https://www.multihousingnews.com/caliber-gets-the-go-ahead-for-phoenix-conversion-project/

PHXLuv · #**147** Posted **Sep 16, 2026, 2:32 AM**

Unpaid $128M loan sends downtown apartment community X Phoenix to trustee sale

https://www.bizjournals.com/phoenix/news/2026/09/15/x-phoenix-heads-to-trustee-sale.html

combusean · #**148** Posted **Sep 16, 2026, 4:19 AM**

Finally. Insane this has lingered around for 3 years while contractors don't get paid. Makes every other project more expensive when that kind of risk is factored in.

downtownphxguy12 · #**149** Posted **Sep 16, 2026, 1:24 PM**

Quote:

Originally Posted by combusean

Finally. Insane this has lingered around for 3 years while contractors don't get paid. Makes every other project more expensive when that kind of risk is factored in.

The article states that it is the loan on phase 1 that is being defaulted on. Not the uncompleted phase 2

somethingfast · #**150** Posted **Sep 22, 2026, 9:16 PM**

Quote:

Originally Posted by PHXLuv

Unpaid $128M loan sends downtown apartment community X Phoenix to trustee sale

https://www.bizjournals.com/phoenix/news/2026/09/15/x-phoenix-heads-to-trustee-sale.html

just a hundred twenty mil'? c'mon, what's a hundred twenty mil' amongst hi-rise fans??

ASUSunDevil · #**151** Posted **Sep 29, 2026, 10:29 PM**

Quote:

Originally Posted by exit2lef

So I assume this is the Y, but not the adjacent ASU Sun Devil Fitness Complex? I thought they shared some facilities, so I wonder how the unfortunate closure of the Y will affect the university. I also wonder what's going to happen to the building. Reading elsewhere, it doesn't sound like they have plans to sell the it, and I expect there would be an outcry if it were demolished. That leave me wondering what the plan is, and if there even is one.

https://azbex.com/local-news/lincoln-family-downtown-ymca-demolition-phoenix/

A developer must have a plan in place for this site. While I wouldn't consider myself a — preservationist, this seems like a good candidate for adaptive reuse. The interior is a dump, but I've always thought that it had a charming exterior and the potential for a refresh.

builder03 · #**152** Posted **Sep 30, 2026, 12:22 AM**

Quote:

Originally Posted by ASUSunDevil

https://azbex.com/local-news/lincoln-family-downtown-ymca-demolition-phoenix/

A developer must have a plan in place for this site. While I wouldn't consider myself a — preservationist, this seems like a good candidate for adaptive reuse. The interior is a dump, but I've always thought that it had a charming exterior and the potential for a refresh.

I have heard that there are plans to build a new YMCA facility on the same site.

I agree that at least the T-shaped 7-story portion should be saved and incorporated into the new development. Seems like something creative could be done if they demolished the portions of the complex to the south and north of the core 7-story section. Obviously more complex and expensive though so I won't hold my breath.

I am a sucker for old brick buildings

combusean · #**153** Posted **Sep 30, 2026, 4:48 PM**

Couple things I noticed from the county assessor maps:

The Chicago developer that bought and razed the old Milum textiles building on 7th Ave has been expanding their footprint to the corner. At the same time, the owner of the adjacent hotel has consolidated their side of the block, so basically what was a patchwork of ownership is down to just 2 entities.

It looks like the owners of Phoenix Union Station went bankrupt because a credit union now owns it instead.

az_daniel · #**154** Posted **Oct 6, 2026, 5:29 PM**

Quote:

Originally Posted by builder03

I have heard that there are plans to build a new YMCA facility on the same site.

I agree that at least the T-shaped 7-story portion should be saved and incorporated into the new development. Seems like something creative could be done if they demolished the portions of the complex to the south and north of the core 7-story section. Obviously more complex and expensive though so I won't hold my breath.

I am a sucker for old brick buildings

Couldn't agree more - it is exactly the scale, character, and material that adds so much to the urban environment. I'm also not a hard and fast preservationist but buildings like this one are gutted & renovated all the time. Most of the Y's recent projects elsewhere are pretty nice though so I have high hopes that whatever they do will be a positive addition to the area.

TllrSkyline-01 · #**155** Posted **Oct 9, 2026, 8:21 PM**

Quote:

Originally Posted by ASUSunDevil

https://azbex.com/local-news/lincoln-family-downtown-ymca-demolition-phoenix/

A developer must have a plan in place for this site. While I wouldn't consider myself a — preservationist, this seems like a good candidate for adaptive reuse. The interior is a dump, but I've always thought that it had a charming exterior and the potential for a refresh.

Does anyone know if the current state of the building has been maintained to meet codes? I doubt it, but someone online says that the building is up to code and should remain open. Your insight would be appreciated.

combusean · #**156** Posted **Oct 9, 2026, 8:40 PM**

There are three things going on with that question:
- being up to the current building code, which it's almost certainly not, or at least probably not since the ~2006 renovation
- being up to the existing building and fire code, which it probably is

and, separate and apart from that

- being behind on deferred maintenance so much that a rehab would trigger a complete update, which is usually the case and almost certainly what's going on here.

Pipes, electrical systems, roofing, HVAC, plumbing, things that don't have that much to do with life safety cause building closures and demolitions all the time. These systems have limited shelf life and the upgrade cost is often not worth it. It causes buildings to be demolished all the time, especially once they hit 50 years old or so.

ASU Diablo · #**157** Posted **Oct 14, 2026, 7:32 PM**

I don't remember this being brought up but another office-to-hotel conversion coming down the pipeline.

The Ellis historic building (2nd Ave & Monroe) is being planned as a 95-to-105-room Tribute Portfolio by Marriott.

https://azbex.com/planning-development/phoenix-hotel-development-projects-advancing/