Phoenix Development News (3)

[bwonger06]

More info regarding the Lexington Hotel

Lexington Hotel set to get face-lift



New owners aim to lure arts crowd, high-end clients with boutique hotel

by Megan Neighbor - Feb. 11, 2011 03:12 PM
The Arizona Republic

A new ownership group targeting a higher-end customer and the arts community plans to begin a $15 million to $20 million renovation of Central Phoenix's Lexington Hotel by midsummer.

Among the myriad of upgrades: a first-floor art gallery accessible to both visitors and locals.

In early 2012, the property at 1100 N. Central Ave. will re-open as a non-branded boutique hotel and art gallery, said Tim Sprague, a principal at Habitat Metro, one of three development groups that purchased the hotel in January.



Read more: http://www.azcentral.com/business/ar...#ixzz1DiMPgD49

[HooverDam]

^ WOW that looks fantastic, thats exactly the sort of project downtown needs lots more of.

Its tough to tell from that rendering, is it just blue flood lighting (probably) or I wonder if they're going to re-clad the place, currently its beige stucco exterior is pretty boring.

[Vicelord John]

Great the trend of colored lights continues. Not that i dont like it but sheesh, its taking over and becoming repetitive.

[nickw252]

I think it looks good but IMO there is only so much they can do with what they're working with. It's a forgettable midrise building with too much offset from Central Avenue.

[HooverDam]

^Huh? Our city has some of the least lighting on our buildings downtown of any big city in the country, most of our skyscrapers are practically invisible at night. We could use a lot more flood lighting like this, especially on places like the white section of the Chase Tower and such.

Originally Posted by nickw252

building with too much offset from Central Avenue.

From the renderings it looks like the Art Gallery will change this, it all appears to front Central, they're getting rid of that driveway thats currently there.

On another note, the Paper Heart is for sale...so if anyone has $400K...

http://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+other/run_public_link.html&public_link_tech_id=u56m4y9uzzt&s=12&id=1&cid=1


Modern PHX posted a cool picture of how it looked as an auto showroom back in the day:


I believe all those brick structures on the other side of Grand from the Paper Heart are all for sale too, at least they're listed on AZ Architecture.

It seems like that whole Lower Grand area just has so much freakin' potential that apparently anyone with money just can't see. Maybe if the G.A.R.P. ever comes to life that would spur development when the economy comes back.

I think another big thing that would help lower Grand is the City and a private developer getting together to build a parking garage on the surface lot of the Paper Heart. It would be nice to have a multi level public garage there that could serve all of Lower Grand and of course have street facing retail along Grand (enter the Garage off of Polk).

[Vicelord John]

Originally Posted by nickw252

I think it looks good but IMO there is only so much they can do with what they're working with. It's a forgettable midrise building with too much offset from Central Avenue.

I completely agree. I was talking about this building last night and couldn't even picture what the front of it looked like, even though I've driven by it at least 100+ times.

[HX_Guy]

So much for hoping they would integrate the new transit center with the park better...

[Vicelord John]

Those bike racks are world class stupid. The eye holes aren't big enough for some locks, like the one I use.

And seriously, just take out that fence and replace those rocks with grass. People would probably love to hang out in the park while they wait for the bus.

[HX_Guy]

They could donate the fence to the Children's Museum.

[Vicelord John]

I like the way you think.

[gymratmanaz]

seriously, I wonder if a fence exchange was suggested if they might go for it. It is all city owned right?

[Vicelord John]

for the last damn time, the chillrens museum is NOT OWNED BY THE CITY OF PHOENIX.

The land and building are, but the museum is NOT. It is leased. Any property improvements in this situation will likely be paid for by the leasee.

[HX_Guy]

Didn't someone report on here that they contacted the Children's Museum and were told that it's the responsibility of the City of Phoenix to take care of the fence? Or am I not remembering it correctly?

[dtnphx]

Arizona Center marketed for sale

by Max Jarman
The Arizona Republic

General Growth Properties, which emerged from Chapter 11 bankruptcy protection in November, has put its high-profile Arizona Center development in downtown Phoenix on the block and could announce a buyer by March.

The company declined to discuss the possible sale but its Chapter 11 reorganization note said it intends to focus on its regional malls going forward and shed properties, such as the mixed-use Arizona Center, that don't fit the criteria.

The company earlier transferred its 355,000-square-foot Park West Mall in Peoria to its planned community development arm, the Howard Hughes Corp., which was spun off to stockholders in November.


General Growth plans to retain the Mall at Sierra Vista in Sierra Vista and the Tucson and Park Place malls in Tucson, which are traditional regional malls.

The 18.5-acre Arizona Center consists of roughly 800,000 square feet of offices in two high-rises; 160,000 square feet of retail space, including an AMC Theatre complex, and a covered parking garage.

The Arizona Center is technically owned by the city of Phoenix, which leases it to General Growth for a nominal sum under a government property-lease excise tax, or GPLET, agreement. The deal allows the Arizona Center to pay substantially lower property taxes because it is technically a government-owned property. The project is zoned for an additional 1.1 million square feet of offices, a 600-room hotel and 400,000 square feet of retail shops.

General Growth Properties also is a part owner with Westcor parent Mecerich Co. in Arrowhead Towne Center in Glendale and Superstition Springs Center in Mesa.

A buyer that has been mentioned for the 1.06 million-square-foot Arizona Center is the CommonWealth REIT of Newton, Mass. The real-estate investment trust has $6.7 billion worth of office and industrial properties in its portfolio, including six properties in Arizona, totaling about 925,000 square feet. They include Regents Centre in Tempe, the Blue Cross/Blue Shield building in Phoenix and the One South Church Avenue office building in Tucson.

The company also declined to discuss the possible Arizona Center acquisition.

The Arizona Center was developed by high-profile mall developer Rouse Co., whose projects include Faneuil Hall Marketplace in Boston and Harborplace in Baltimore.

When it opened in 1990, it was touted as a retail and entertainment magnet that would draw people to downtown Phoenix and jump-start redevelopment of the central Phoenix business district. The city of Phoenix contributed the land, then worth about $8 million, and granted the developer $40 million in sales-tax rebates.

But, the center never lived up to its grand potential. National retail stores such as Gap and Foot Locker eventually closed and were replaced with tourist-oriented shops and restaurants. In 2003 the mall's food court closed and was converted into office space.

General Growth acquired the Arizona Center in 2004 through its $12.6 billion acquisition of Rouse. The company filed for Chapter 11 protection in April 2009.

[HooverDam]

^Well maybe this is good news in the long run. Hopefully whoever buys the AZ Center will have a clue about urban design and realize how silly of a design the Center was in the first place. A million more feet of office space and a 600 room hotel sure do sound nice, I wish they could happen.

I hope whoever buys it reworks the AMC to have its entrance face the Taylor Mall. It seems to me if that was done it would 1. activate the street scape a bit along 3rd street and 2. open up space in what was the overly large AMC lobby for a new retail tenant. I think a Staples or could likely go in that space and thrive- doesn't it seem insane that Downtown PHX, where the highest amount of office workers are in the Valley doesn't have a freakin' office supply store?

Small scale retail like new stands and other retail kiosks (like you see in the middle of the mall) could be built facing 3rd street to activate it and give local small businesses and artists places to sell their stuff with lower rents and shorter term leases.

[dtnphx]

Does anyone know what's going on the lot across from Brophy at Central and Highland? Seems the've graded and staked it and have sectioned a small temporary parking lot.

[gymratmanaz]

If it is on their land, Brophy isbuilding a new Middle School to serve only economically challenged families. Children will attend for free. If that is the place I am thinking of...

[gymratmanaz]

Sale of AZ Center IS a great thing. A new owner will undoubtably invest money to make it more successful. I talked to the original designer of the AZ Center. Originally, they wanted it to be kind of an island to itself, since there really wasn't anything around it at the time. They wanted it enclosed so people could be inside and not see the minimal surroundings. Now, it is an easy fix, he says, to open it up to the surrounding area with windows, new entrances, and all. THIS IS A VERY VERY GOOD DEVELOPMENT!!!!

[bwonger06]

Originally Posted by gymratmanaz

If it is on their land, Brophy isbuilding a new Middle School to serve only economically challenged families. Children will attend for free. If that is the place I am thinking of...

I believe the middle school is taking over Loyola Hall which basically serves no purpose after Brophy opened its Science Class rooms, and the Arts building.

I have no idea what they are doing with the parcel of land across from Brophy (formerly called Brophy Towers and Metro Towers I believe). I do know the developer tried to keep the land by filing chapter 11 but it is also tied in with the LTD. Mortgages loan portfolio.

[Leo the Dog]

Originally Posted by gymratmanaz

Sale of AZ Center IS a great thing. A new owner will undoubtably invest money to make it more successful. I talked to the original designer of the AZ Center. Originally, they wanted it to be kind of an island to itself, since there really wasn't anything around it at the time. They wanted it enclosed so people could be inside and not see the minimal surroundings. Now, it is an easy fix, he says, to open it up to the surrounding area with windows, new entrances, and all. THIS IS A VERY VERY GOOD DEVELOPMENT!!!!

I agree. It couldn't get worse could it? I guess if Hooter's closed that would be a set back....