Phoenix Development News (3)

[Obadno]

Did anyone see this update to the Deli closure:

https://www.azcentral.com/story/entertai...urant-close-downtown-phoenix/2870601002/

Two years after reopening with the original 1969 Downtown Phoenix Deli spirit, Deli Tavern will close in its historic downtown Phoenix location on Friday, Feb. 15, according to a Facebook post from the restaurant. The property has been sold to a local group that plans to open a new concept in the space.

So I would think Deli wasn't performing well, they sold the business and the new owners liquidated.

Im glad to see something new will be along

[TakeFive]

Originally Posted by muertecaza

Yeah 'X' is a PMG brand associated with 200 W. Monroe (http://propertymg.com/portfolio/?filter=|PMGx|). And the post references Kenect. So sounds like it's those two. Exciting!

X is an interesting concept; PMG doesn't screw around moving quickly to construction. Like many they have a repeatable design and they don't care about prime locations. They've already bought two additional sites in Denver with one project under construction.

[TakeFive]

Originally Posted by RonnieFoos

Agree with his assessment that the alley should stay. The office tower has too large of a footprint. But I am good with the rest of the Ro2 development....except maybe too many smiling Teddy's...

That definitely is big. To be fair larger floor plates tend to be an advantage with today's open floor plans and efficient use of space. But that's more relevant with towers as opposed to Big Boxes.

Originally Posted by RonnieFoos

It seems developers are still leery of not including parking garages in their developments. The auto-centric mentality of this area just refuses to die...even when residential growth is exploding in the core.

Developers generally will build whatever investors/lenders are willing to fund. Lenders tend to error on the side of caution and sufficient parking is deemed necessary to protect their investment/asset.

Originally Posted by Obadno

Its not just here there are very few cities relatively that dont demand high level parking in their zoning.

Not so much in urban downtowns; many are lowering or doing away entirely with parking requirements. They know development will include parking as deemed necessary though.

EDIT: I may be thinking more of residential than office but some urbanists project that whether it's better transit, ride-sharing, autonomous vehicles or some combination that parking podiums will become unneeded and hard-to-retrofit space.

Originally Posted by biggus diggus

Sounds like a lot of meddling. I've never heard of him until today.

Sean is probably the most well-known 'urbanist' in Phoenix. While I may not always agree with him Phoenix needs more of his type.

Originally Posted by Phxguy

IMO, it’s a breath of fresh air that someone can focus this much energy on urban design when it seems we only get half-assed effort from developers or shrugged shoulders from the city. Phoenix is plagued with a “settle for mediocre” mentality, it’s good to have a voice or two that champions for better.

Well said; agreed.

Originally Posted by RonnieFoos

Ugh. Just took a walk around during my lunch and there are "Stop the Tower" signs EVERYWHERE. There are several down 3rd St and even a sign at Park Central.

I just want to get some "Stop the Nimby'ism" signs made and put them all over.

Or start a YIMBY movement.

[RichTempe]

Originally Posted by biggus diggus

Why do you find issue with those buildings? They've brought hundreds of people into the area and spurred numerous bars, restaurants and shops opening their doors. They've led to jobs in the area. There's activity on the street level now, lots of it.

Originally Posted by Obadno

There is already a strange current of nostalgia for the meth-head infested half abandon Roosevelt of pre 2008

Its a strange type of person who is into that kind of neighborhood.

Link to a 20 minute podcast on 'Was Roosevelt Row Cooler in the Past'

https://www.azcentral.com/story/news/loc...lt-row-arts-district-phoenix/2859055002/

While there have been some losses, overall it sounds to me like things are better and the hopes are, that with the cooperation of developers, the trend will continue.

[exit2lef]

Originally Posted by RichTempe

Link to a 20 minute podcast on 'Was Roosevelt Row Cooler in the Past'

https://www.azcentral.com/story/news/loc...lt-row-arts-district-phoenix/2859055002/

While there have been some losses, overall it sounds to me like things are better and the hopes are, that with the cooperation of developers, the trend will continue.

That's a pretty good start for this podcast. I like that they interviewed some of the people who have worked behind the scenes rather than the loudest voices in the misguided Save Roosevelt Row movement, which now seems all but defunct. It still bothers me, though, that so many people reflexively say "condos" when they see new multi-unit housing. Most of the time what's being constructed are apartments. This podcast did it, and earlier yesterday I had a similar conversation with someone at the Phoenix Art Museum. We were both in the Goldsmith Overlook, which has a view to the south. The other guest lamented the new "condos" were blocking the view of the Burton Barr Library. I said I thought that was a small price to pay for more housing near downtown, but I didn't bother correcting her about the type of housing involved.

[CrestedSaguaro]

Originally Posted by dtnphx

The US Bank building is a very successful office leased building. Where did you get that it was tough? They can't keep decent retail to save their souls, but office occupancy is good.

I worked for US Bank for nearly 4 years up until a little over 2 years ago when I took my position with the state. Maybe things have changed a bit since, but there were a lot of empty offices when I worked there with a lot of lease turnover. At least 4 floors were fully empty. When an office space was vacated, it took several months to fill it again. Also, I'd like to mention that the floors that US Bank leases are only about 35% occupied at any given time of day as a lot of employees are work-at-home or field employees with just an office cube reserved for them when they need to come in for a few days per month. There was also about 25% of vacant cubes. Yes, I know that US Bank pays for the floor space no matter how many workers are in the building, but that does leave a lot of empty office space in the tower. It also takes away a good chunk of potential customers from the ground floor retail.

But as I mentioned, this was 2 1/2 years ago. Maybe the office vacancy has turned around since then. But I do know that the US Bank offices are still fairly empty as I still stay in contact with a couple of former colleagues. In all honesty, US Bank should consolidate it's 4 Downtown/Midtown/Biltmore locations into US Bank Tower. This would help fill it up with about 100+ employees.

[Phxguy]

https://www.azcentral.com/story/entertai...x-bar-nightlife-concept-life/2906918002/

A quick blurb of what’s anticipated in the Desoto building.

[biggus diggus]

The az central investigator provided the same or less info than I gave you guys over a month ago, maybe I should ask them to give me a job.

[PHXFlyer11]

Originally Posted by Phxguy

https://www.azcentral.com/story/entertai...x-bar-nightlife-concept-life/2906918002/

A quick blurb of what’s anticipated in the Desoto building.

Saw that... kind of a shame to have the space only be open at night. But the developer is good, so we'll see.

[Obadno]

More good midtown news

https://www.bizjournals.com/phoenix/news...ixhotel-purchased-major-renovations.html

Ahead of major developments coming to midtown Phoenix near the Central Avenue corridor, a hospitality company has acquired the Wyndham Garden Phoenix Midtown and is planning major renovations for the property.

Phoenix-based Oxygen Hospitality Group Inc., an owner-operator hospitality management company, has entered the Valley’s competitive marketplace with the acquisition of the six-story, 160-room property at 3600 N. Second Ave., just north of Osborn Road in Phoenix.

Oxygen Hospitality did not disclose the price of the acquisition but said it has plans for a multimillion-dollar renovation that would elevate the property to a full-service hotel with modern conveniences. Oxygen Hospitality also will take over as the hotel’s management company.

In a statement, Yaron Ashkenazi, Oxygen Hospitality CEO, said the hotel offers "an incredible turnaround opportunity."

Oxygen Hospitality formed in 2018 and plans to make its mark by repositioning underperforming hotels and resorts and by infusing technology into the real estate. One of the company’s mottos is “Buy it, revive it and manage it.”

Unlike the previous owners of the Wyndham Garden, Oxygen Hospitality expects it can maximize profitability with hotel operations and it has the necessary funds to renovate and upgrade the property, a company spokeswoman said.

Oxygen Hospitality sees now as a good time to invest in the midtown Phoenix market, as other major projects are happening in that area.

“This Phoenix-headquartered company’s commitment to revitalize the Wyndham Garden Midtown is a necessary addition to meet the growing demand for accommodations from visitors to the city as well as to serve the needs of one of the largest health care workforce clusters in the Western U.S.,” Phoenix Community and Economic Development Director Christine Mackay said in a statement. “The hotel’s proximity to Dignity Health, the new Creighton University Medical School and the revitalized Park Central complex is a statement of confidence in the economic potential in this area of the city.”

Earlier this month, a high-profile midtown Phoenix property, the Clarendon Hotel was purchased for $19.5 million.

This is the second hotel purchased by Oxygen Hospitality during the past year and the first in the Phoenix market. The company's first acquisition was in Palm Springs, California. In May, one of the company's founders told the Phoenix Business Journal it had identified 10 properties to it was considering for acquisition.

“The Wyndham Garden Midtown Phoenix marks a pivotal point in the portfolio expansion of Oxygen Hospitality right in our corporate backyard,” Ashkenazi said.

And Park Central is having good leasing success!

https://azbigmedia.com/park-central-sees-flurry-of-leasing-activity-as-opening-approaches/

Park Central is enjoying a flurry of leasing activity as the project pushes closer to its grand opening this spring.

A number of new and renewed leases have been signed for space at the revitalized property, which is nearing completion of its initial redevelopment phase. The project is already becoming a magnetic draw with a broad diversity of tenants, representing the intersection of business, education, technology, innovation and public investment....

[azliam]

City wants bids to redevelop downtown Phoenix garage

The item will be before City Council for discussion in March

A downtown Phoenix parking garage could soon be redeveloped into a mixed-use project.

The city of Phoenix is preparing a request for proposals for redevelopment of the Regency garage on First and Adams streets.

“Directly across from our world-class convention center is a parking garage,” said Christine Mackay, the community and economic development director for the city of Phoenix. “This is a highly underutilized site. It seems like the perfect site, right in the epicenter, to drive development downtown.”

Mackay said her department is planning to go before City Council by the end of March to issue the request for proposals, which will be open for 60 days once it is issued.

A variety of different developments could fit into the roughly 41,000-square-foot, city-owned parcel, including office, residential or hospitality.

“We are looking to the development community to tell us what should go there,” Mackay said. City code in the downtown core requires mixed uses on the ground floor.

“It is an extremely underutilized site,” she said.

The Arizona Latino Arts and Cultural Center is on a month-to-month lease on the ground floor of the building, and Mackay said the city will work with the organization as the project progresses, but it will likely be more than a year before redevelopment is approved.

The successful respondent will have to replace the over 500 parking spaces contained in the garage, or find other locations in the downtown area to add equivalent parking, Mackay said, calling the parking replacement the “biggest challenge” for the site. Hyatt Regency guests, convention center attendees, employees of nearby businesses and the public use the garage.

“We simply cannot give up 500 parking spaces in downtown,” she said.

https://www.bizjournals.com/phoenix/news...garage.html?iana=hpmvp_phx_news_headline

[Chestnut1]

Final building plans were submitted yesterday for Aspire Fillmore at 601 N. 3rd Ave.

LPRN 1901251, Project 16-3314.

DESCRIPTION OF WORK: 17-STORY HIGH RISE, 254 RESIDENTIAL UNIT BUILDING, FIRST LEVEL PROPOSED RESTAURANT, RETAIL SPACE, AND BIKE SHOP ROOM, FLOORS 2-5 COMBINATION WRAP UNITS AND ALTERNATING HALF LEVEL PARKING LINKED BY SPEED RAMPS. SIXTH FLOOR AMENITY DECK LINKED TO PROPOSED WORK OUT AREA. OFFICE AREA ON THE SIXTH FLOOR OPEN TO ELEVATOR LOBBY. SIXTEEN FLOOR POOL/HOT TUB DECK LINKED TO POOL CLUBHOUSE ROOF DOG RUN AND MECHANICAL YARD BASEMENT (2 HALF LEVELS) OF PARKING AND UTILITY SPACES

[PHXFlyer11]

Originally Posted by Chestnut1

Final building plans were submitted yesterday for Aspire Fillmore at 601 N. 3rd Ave.

LPRN 1901251, Project 16-3314.

DESCRIPTION OF WORK: 17-STORY HIGH RISE, 254 RESIDENTIAL UNIT BUILDING, FIRST LEVEL PROPOSED RESTAURANT, RETAIL SPACE, AND BIKE SHOP ROOM, FLOORS 2-5 COMBINATION WRAP UNITS AND ALTERNATING HALF LEVEL PARKING LINKED BY SPEED RAMPS. SIXTH FLOOR AMENITY DECK LINKED TO PROPOSED WORK OUT AREA. OFFICE AREA ON THE SIXTH FLOOR OPEN TO ELEVATOR LOBBY. SIXTEEN FLOOR POOL/HOT TUB DECK LINKED TO POOL CLUBHOUSE ROOF DOG RUN AND MECHANICAL YARD BASEMENT (2 HALF LEVELS) OF PARKING AND UTILITY SPACES

Great news! There are no renderings for this, correct?

[ASU Diablo]

Originally Posted by azliam

City wants bids to redevelop downtown Phoenix garage

The item will be before City Council for discussion in March




https://www.bizjournals.com/phoenix/news...garage.html?iana=hpmvp_phx_news_headline

Great news and glad to see this move so quickly!

[Obadno]

Originally Posted by Chestnut1

Final building plans were submitted yesterday for Aspire Fillmore at 601 N. 3rd Ave.

LPRN 1901251, Project 16-3314.

DESCRIPTION OF WORK: 17-STORY HIGH RISE, 254 RESIDENTIAL UNIT BUILDING, FIRST LEVEL PROPOSED RESTAURANT, RETAIL SPACE, AND BIKE SHOP ROOM, FLOORS 2-5 COMBINATION WRAP UNITS AND ALTERNATING HALF LEVEL PARKING LINKED BY SPEED RAMPS. SIXTH FLOOR AMENITY DECK LINKED TO PROPOSED WORK OUT AREA. OFFICE AREA ON THE SIXTH FLOOR OPEN TO ELEVATOR LOBBY. SIXTEEN FLOOR POOL/HOT TUB DECK LINKED TO POOL CLUBHOUSE ROOF DOG RUN AND MECHANICAL YARD BASEMENT (2 HALF LEVELS) OF PARKING AND UTILITY SPACES

Great! More MORE!!! 17 floors will look huge here.

Also Glad to see the RFP for the garage, but all of the city RFP's seem like a long road to development.

[azsunsurfer]

Yes it is City owned property and yes it is a competitive bid...however... I wonder if its copacetic under current State laws? Especially with the scrutiny of public/private partnerships recently. I wonder if the Goldwater Institute has had a chance yet to weigh in on this?

[TakeFive]

Originally Posted by azliam

City wants bids to redevelop downtown Phoenix garage

The item will be before City Council for discussion in March
https://www.bizjournals.com/phoenix/news...garage.html?iana=hpmvp_phx_news_headline

The successful respondent will have to replace the over 500 parking spaces contained in the garage, or find other locations in the downtown area to add equivalent parking, Mackay said, calling the parking replacement the “biggest challenge” for the site. Hyatt Regency guests, convention center attendees, employees of nearby businesses and the public use the garage.

“We simply cannot give up 500 parking spaces in downtown,” she said.

What a clustermess. Sounds like a non-starter to me.

Which got me to thinking... Anybody know how many spaces the current Hyatt has; couldn't find it to save my life with google's highly commercialized search engine.

City of Phoenix says: https://www.phoenixconventioncenter.com/parking

We have over 4,300 covered parking space at the Phoenix Convention Center. Both the North Building and West Building have parking garages attached and the other spaces are located in garages that are just one block from our building.

Some quick checking shows that Seattle's brand new 45-story 1264-room Hyatt Regency Convention hotel has about 35% parking ratio or 440 spaces. Their $1.4 billion under construction convention center expansion to total ~850,000 Sq Ft will have about 750 parking spaces. Denver's convention center of about the same size has a 1,000 parking spaces which are also used for the performing arts center. Their convention center hotel finished in 2006 has about 50% parking ratio or 550 parking spaces.

Just a guess that the City has some type of obligation to the Hyatt for parking spaces. Anybody know the details?

Phoenix really needs to get over its obsession for lots of parking spaces.

[combusean]

^ The Regency garage is an annoying one. Honestly, as garages go, it's got a great design with ground floor retail. It's not, however, ADA compliant.

AFAICT the Regency garage is the Hyatt garage. My first impression is that with a parking space replacement cost of $10 million plus, it is indeed a nonstarter. The land it sits on is simply not worth that much to make that a good deal on its own. There are, however, no spots left in the immediate core that haven't been spoken for that can have a high-rise product.

I wonder if there's something else driving this like structural or mechanical issues or problems renting out the ground floor and the city isn't wanting to spend the money rehabbing it.

Or, as is often the case, there's a developer preceding this RFP. Maybe a redevelopment could involve free/cheap land to get in a lucrative garage business (who knows how full it is) and plopping a tower on top of that in an otherwise overparked structure makes sense. Probably not for this boom tho.

[TakeFive]

Originally Posted by combusean

My first impression is that with a parking space replacement cost of $10 million plus, it is indeed a nonstarter.

Cost of garage parking has to be at least $20 million in today's world, I'd think. I'll guess ~$25 million a space.

Here's a new concept proposal; doesn't say how many rooms but only 83 parking spaces for 27-story on 25,000 Sq Ft of land area has to be a very low ratio. But it's a convention sited hotel; people fly in to stay at the hotel (and take Uber to get there ).

[muertecaza]

Site plan reviews scheduled for the Park Central apartments, Millenium at Park Central and for the Residences at Collier Center for later this month. Loving the momentum of residential continuing to be built downtown. As Stewart, Block 23 and Link 1 finish, we'll have Kenect definitely underway, and hopefully one or more of the Aspirant Fillmore building, 200 W. Monroe, Residences at Collier and/or Link 2 as well. This in addition to a continuing flow of low/mid-rise apartments in midtown and along Roosevelt.