Park Central Developments

[Obadno]

Originally Posted by ASU Diablo

The Hilton Hotel has officially opened.

https://azbigmedia.com/lifestyle/new-tru-home2-suites-by-hilton-hotels-opens-at-park-central/

What's next for Park Central? Did 3rd & Flower ever get started?

Not yet but Im sure its coming soon now that the hotel is finished.

[Obadno]

https://www.bizjournals.com/phoenix/news/2024/12/06/u-haul-buys-midtown-office-tower.html

Interesting? So uhal is consolidating its offices in the former century link tower but I think it’s weird are they giving up their historic hq? And right after the built their whole employee wellness center etc

[phoenixwillrise]

Originally Posted by Obadno

https://www.bizjournals.com/phoenix/news/2024/12/06/u-haul-buys-midtown-office-tower.html

Interesting? So uhal is consolidating its offices in the former century link tower but I think it’s weird are they giving up their historic hq? And right after the built their whole employee wellness center etc

That is weird but that building, where they are now, is an early 60's dump.

[combusean]

They own the parking lot across the street that connects Roanoke and Thomas so employees can just walk across the street to use the fitness center.

Wouldn't surprise me if they were consolidating both their offices and parking in the CenturyLink tower, Oxford consolidates on 2700 N 3rd, and the uhaul towers get a residential conversion with a podium or donut midrise residential project to the south.

[Obadno]

https://azbigmedia.com/real-estate/u-hau...ce-building-in-phoenix-for-23-7-million/

U-Haul buys third-largest office building in Phoenix for $23.7 million
Cushman & Wakefield announced the firm has advised an entity controlled by Bank of America in the sale of 20 East Thomas Road, an iconic 25-story office tower totaling 548,938 square feet in Phoenix’s Midtown submarket. The third largest office building in the state of Arizona and third largest in the Phoenix market sold for $23.7 million to U-Haul International, a Phoenix-based moving and self-storage company. The building will serve as an expansion of the Company’s corporate campus in Midtown Phoenix.

MORE NEWS: 50 commercial real estate projects to know for 2025

20 E Thomas is part of a prominent ±10.5-acre mixed-use development containing ±1.46 million square feet of office, ±30,500 SF of retail, a 242-room Embassy Suites hotel, and an 11-story parking garage immediately adjacent the 25-story office tower. The sale included 49 E Thomas, a ±1.09-acre excess land parcel for additional parking.

U-Haul intends to occupy the majority of the building, in what will be a real estate expansion for the company that serves millions of do-it-yourself households moving customers annually. U-Haul plans to consolidate its team members from other nearby buildings it currently owns, allowing it to operate more efficiently under one roof. U-Haul will continue to lease approximately 16% of space at 20 E Thomas to existing tenants in the building.

Eric Wichterman, Chris Toci and Mike Coover with Cushman & Wakefield in Phoenix represented a Bank of America entity in the sale after foreclosing on the property during Summer 2024, several months after leases covering over two-thirds of the building expired. Cushman & Wakefield’s Jerry Roberts and Pat Boyle also provided leasing advisory. Ryan Eustice of Kidder Mathews represented U-Haul in the transaction.

“As one of the top largest owner/occupier office sales in the U.S. (and largest in the Southwest) since early in the pandemic, this 550,000-sf sale is a monumental transaction for Greater Phoenix and the Western U.S.,” said Eric Wichterman, Vice Chair. “In a move to ‘flight to quality’, the buyer had its sights on this property to upgrade its office environment for its team members with its high-quality infrastructure, stunning views, and superb on-site amenities. This sale will cement U-Haul in Phoenix for many more years and further exemplifies a significant belief by companies in the need to have an office presence—in particularly one that is high quality and highly amenitized,” continued Wichterman.

The iconic nature of this real estate, Arizona’s original mixed-use development, resulted in ferocious demand in a process so competitive that three bid rounds were required to achieve pricing separation.

“Never before had our team experienced such fevered bidding, with 13 offers received and 183 confidentiality agreements secured. The optimal size and rectangular-shaped nature of the ±23,000-square-foot floor plates attracted multiple cross-border residential converters along with traditional “intrinsic” value office investors,” said Chris Toci, Executive Managing Director. “Through this competitive process and ultimately attractive pricing, this transaction proved a win-win for both U-Haul and Bank of America.”

20 E Thomas provides U-Haul team members with access to a superb menu of amenities, both onsite and nearby. Nearby amenities include a conference and training center, an Embassy Suites hotel with restaurant/bar and multiple dining options. The building includes two separate power feeds from different substations, plus an oversized service elevator and an extremely rare semi-truck accessible subterranean shipping and receiving garage with dock-high loading. The transit-oriented location is also easily accessible to Metro Light Rail and is adjacent to Park Central Mall, the area’s primary retail hub.

“We are seeing a noticeable shift by both larger and smaller tenants into Midtown given its affordability factor,” said, Mike Coover, Managing Director. “Midtown’s combination of a booming healthcare and bioscience ecosystem, Park Central’s redevelopment, and superb freeway and light rail access, have transformed the area by attracting numerous amounts of new coffee shops, restaurants, and other amenities.”

If they are leasing most of the building I wonder what if any theyll keep of their existing campus.

[Sean1187]

Originally Posted by Obadno

https://azbigmedia.com/real-estate/u-hau...ce-building-in-phoenix-for-23-7-million/


If they are leasing most of the building I wonder what if any theyll keep of their existing campus.

What will happen to the Central Towers, as well as 2700 and 2702?
A plan for each lot and building has not been finalized. Very likely it will be a
combination of retaining some assets as is, selling off some and repurposing
others for a related use. For example, we have been planning for a U-Haul Smart
Mobility Center (store) on this block to become a flagship retail location in the
Company to serve the local neighborhood.

I believe 2700 and 2702 will be sold off, we're obviously keeping the Shoen Center, and parking hasn't been settled with the new location so I imagine we'll be keeping a majority of the current parking lots and garage. Curious what'll become of the current U-Haul Towers, perhaps leased out eventually after the the expected 24-month relocation period?