Phoenix Development News (3)

[combusean]

I don't know who I spoke with, I forgot to get his name.

[Obadno]

Originally Posted by phoenixheadphones

https://www.bizjournals.com/phoenix/...hotels-in.html

This seems very strange and seems kind of unlikely to me, but it would be cool if it comes to fruition!

Sounds like the kind of weird thing that would be great for Roosevelt

[PHXFlyer11]

The conversation on The Jefferson really got me thinking. There is without a doubt pent up demand for condos downtown, including high-end. I know many very wealthy people that rent in these high-rises because there is really nothing to buy downtown.

I think we’ll hear development plans for the rest of the property The Jefferson is on, along with the land immediately to the south. I am hoping for another condo tower (400k-2M) and a W Hotel proposal brought back to life by Sarver. Every sports owner wants these huge development deals. Why wouldn’t Sarver have wanted the same out in the East Valley? Is it because he already owns the land to the west of the Arena?

I would also hope for more retail and something that is pedestrian friendly to really connect the warehouse district with downtown. Then maybe we can see some midrises popping up down there and the development of more of a bar scene. The south Phoenix light rail extension should also help with this. Between the ballpark, arena and light rail hopefully there is enough there to spur development. There is so much undeveloped land in that area.

[TJPHXskyscraperfan]

With the Super Bowl coming in 2023, downtown will be ready. Hopefully we find a good spot for another Block Party Downtown with Block 23 unavailable now, hopefully The Jefferson site is also taken up with construction going on there. But wow, imagine the amount of towers that will be done by 2023 with more towers in the middle of construction. I really hope AZ Center starts filling up with retail over the next year or two. I think it’s ready. Either way, it will be like night and day compared to 2015. 2015 was better than 2008 but man 2023 should be amazing. Phoenix is already on the map but I think the 2023 super bowl will finally put DTPHX finally on the map. Everything should be centered around downtown for this huge event!!!

[Phxguy]

Originally Posted by phoenixheadphones

https://www.bizjournals.com/phoenix/...hotels-in.html

This seems very strange and seems kind of unlikely to me, but it would be cool if it comes to fruition!

I’m skeptical on this as well...almost too good to be true if downtown could land more entertainment venues. With Meow-Wolf still planned for the future as well as the Godfrey and numerous other hospitality projects underway, could the downtown hotel scene handle this influx?

This article suggests it will be close to the 101 by the recently opened Medieval Times and OdySea Aquarium. While I’d rather have it downtown Phx, something tells me it will join this exurban entertainment enclave. I hope I’m wrong

https://www.google.com/amp/s/www.glo...ities/%3famp=1

[rmcxion]

Originally Posted by PHXFlyer11

The conversation on The Jefferson really got me thinking. There is without a doubt pent up demand for condos downtown, including high-end. I know many very wealthy people that rent in these high-rises because there is really nothing to buy downtown.

I think we’ll hear development plans for the rest of the property The Jefferson is on, along with the land immediately to the south. I am hoping for another condo tower (400k-2M) and a W Hotel proposal brought back to life by Sarver. Every sports owner wants these huge development deals. Why wouldn’t Sarver have wanted the same out in the East Valley? Is it because he already owns the land to the west of the Arena?

I would also hope for more retail and something that is pedestrian friendly to really connect the warehouse district with downtown. Then maybe we can see some midrises popping up down there and the development of more of a bar scene. The south Phoenix light rail extension should also help with this. Between the ballpark, arena and light rail hopefully there is enough there to spur development. There is so much undeveloped land in that area.

Imagine that. SoPho

[xymox]

Originally Posted by rmcxion

Imagine that. SoPho

I imagine this will be a very real thing. Two components will drive it - the light rail extension and the revitalization of the Salt River throughout the valley. Once that happens I’d image we’d see a lot of ‘waterfront’ development down that corridor up to and along the river. The light rail extension being the connection to downtown/midtown.

It will probably unfold over the next 20-30 years - but I think its a very real possibility.

A waterfront condo in the desert is a lot more interesting than one in midtown...

[Obadno]

https://azbigmedia.com/real-estate/b...ecome-a-hotel/

With a vision of realizing a truly unique mixed-use property for downtown Phoenix, leading owner, developer and property manager Lincoln Property Company (LPC) has sold the historic Luhrs Building to Provo-based PEG Companies (PEG) and Dallas-based A.G. Hill Partners for $14 million. An industry expert with an extensive track record in hotel development, PEG plans to renovate 92,000 square feet of the 108,000-square-foot Luhrs Building into a stylish upscale hotel.

LPC will maintain ownership of the balance of Luhrs City Center, which includes the 14-story Luhrs Tower office building at 45 W. Jefferson St., an adjacent six-story, Class A parking garage and 15,995 square feet of fully renovated ground-floor retail space called the Arcade – home to La Madeline, Serafina Coffee Bar and Monroe’s Chicken.

Since purchasing Luhrs City Center in late 2015, LPC and partner Invesco have completed a multi-million-dollar renovation that improved lobbies, common areas, streetscapes and the Luhrs garage while protecting and improving historic brick interiors, exposed beams and ornamentation. The work earned the company a “2017 Redevelopment Project of the Year” award from NAIOP Arizona.

“Redeveloping and leasing Luhrs has been a gratifying experience, but fully realizing our vision means incorporating a hotel use,” said Lincoln Property Company Executive Vice President David Krumwiede. “Since hospitality is not one of our primary business lines, we chose to market the building to hoteliers who could complete that circle. Passing this property on to PEG will do that, bringing the downtown submarket an iconic, truly ‘Phoenix’ mixed-use destination.”

“Our goal is to preserve the historical integrity of the Luhrs Building as much as possible. The classic exterior facade will remain virtually untouched. The antique mail system that runs from the first to the tenth floor will remain intact. Even the building’s windows will maintain the architectural renaissance characteristic of the early 20th century,” said PEG Companies Development Manager Trevor Ellis. “At the same time, we will infuse new energy and new life into the building, cultivating a fresh and exciting space where people of all ages and walks of life will want to be.”

The PEG redevelopment will convert floors one through nine into hotel rooms. The top floor will remain occupied by Hagens Berman Law Firm. The nationally renowned Bitter & Twisted Cocktail Parlour, located on the ground floor, will also remain open during construction and a part of the building’s tenant mix.

Located at the east end of Luhrs City Center at 11 W. Jefferson St., the Luhrs Building was delivered in 1924 as Phoenix’s first 10-story high-rise. The 14-story Luhrs Tower was delivered five years later, in 1929. The buildings now sit within a Qualified Opportunity Zone (QOZ), making the Luhrs Building conversion one of the first QOZ projects in the Phoenix area to start construction.

A leader in the QOZ space with several U.S. projects underway, PEG is working through the permitting process now and plans to begin construction on the Luhrs Building conversion this summer.

“This is our second investment in an Opportunity Zone since the start of 2019,” said A.G. Hill Partners President Joseph O’Brien. “In both instances, we were attracted by the ability to deploy capital profitably while creating permanent jobs and transforming neighborhoods. PEG’s experience in the hotel industry and our prior success in the Phoenix market were important factors in our decision to fund this venture.”

“This project is a prime example of everything a Qualified Opportunity Zone project should be,” said PEG Companies CEO Cameron Gunter. “George Luhrs had unparalleled vision when he constructed the building nearly 100 years ago. Now, PEG is excited to restore the vibrancy of this iconic piece of Phoenix’s history.”

Major office tenant Maricopa County will move out of the Luhrs Building during the first quarter of 2020. It will relocate to 225 Madison, a renovation project recently completed by the County that converted the former Madison Street Jail into a modern downtown office building and new home to the Maricopa County Attorney’s Office.

“That the County will move into its own successful downtown adaptive reuse project just as PEG kicks off redevelopment of the Luhrs Building is indicative of the kind of energy and creativity happening in the downtown commercial real estate market,” said Lincoln Property Company Vice President of Real Estate John Orsak. “It is an exciting place to be.”

Bill Murney of Hospitality Real Estate Counselors (HREC) served as the broker in the sale transaction. A.G. Hill Partners serves as PEG’s main investment partner.

Located at the southwest corner of First Avenue and Jefferson Street, Luhrs City Center offers direct access to Phoenix Light Rail and is minutes from Interstate 10 and the many shopping, dining, sports and entertainment attractions of downtown Phoenix. LPC manages Luhrs City Center as part of the firm’s approximately 10 million-square-foot Phoenix property management portfolio.

For more on Luhrs City Center, visit the property website at www.luhrscitycenter.com. To discuss leasing, investment or property management opportunities with Lincoln Property Company in the Desert West region, please call David Krumwiede or John Orsak at (602) 912-8888.

I hope its something boutique and not a Hyatt Place or something

[biggus diggus]

Even if it's a Hyatt Place or something of the sort it's still a much better use for that location. Given the type of money and players involved it's likely to be a major chain.

I've stayed at the Hampton Inn Majestic Theater in Chicago a number of times and even though it's a generic brand they did a great job of making you feel like you're in a historic building. Same with Palmer House. I've never stayed in the Hampton Inn here in Phoenix - no reason - but that lobby has a nice historic feel. If the fear is that a major brand will the destroy the feel of the building then I don't necessarily agree.

[PHXFlyer11]

Good news! Does anyone know if the balconies on the top floor are accessible? I look at them all the time when i'm working out and think what an absolutely incredible restaurant/event space that would make. It would be the premier space in the city. Kick the law firm out.

[Phxguy]

https://azbigmedia.com/real-estate/a...=ReviveOldPost

A bit more information as well as a rendering of the Atari Hotel coming to downtown. Looks like the SW corner of 1st St and Portland, north of the parking garage.

[stutteringpunk]

Originally Posted by Phxguy

https://azbigmedia.com/real-estate/a...=ReviveOldPost

A bit more information as well as a rendering of the Atari Hotel coming to downtown. Looks like the SW corner of 1st St and Portland, north of the parking garage.

Kinda bold, but I'm to the point where I'll take anything that isn't a flat roof or resembles The Stewart like all the other buildings around the valley.

[gymratmanaz]

Way cool!!!!

[combusean]

The thing about the Luhrs Building being converted into a hotel is supposedly good news as I speculate that space has become vacant over the years, but it's not really a good sign for the anemic office demand downtown.

This boom of hotels is rather stunning, however. I would have never speculated Downtown has that much demand.

[CrestedSaguaro]

Originally Posted by stutteringpunk

Kinda bold, but I'm to the point where I'll take anything that isn't a flat roof or resembles The Stewart like all the other buildings around the valley.

These are what's going to make Phoenix an exciting hotel destination in the future (if Meow-Wolf gets off the ground that is). Visitors would travel for the hotel experiences alone.

[PHXFlyer11]

Originally Posted by combusean

The thing about the Luhrs Building being converted into a hotel is supposedly good news as I speculate that space has become vacant over the years, but it's not really a good sign for the anemic office demand downtown.

This boom of hotels is rather stunning, however. I would have never speculated Downtown has that much demand.

First, that hotel is AWESOME!

Second, I don't think Luhrs is ideal for the kind of office space companies want now, so I wouldn't take it that way. Much more valuable as a historic hotel than a historic office.

[xymox]

Originally Posted by stutteringpunk

Kinda bold, but I'm to the point where I'll take anything that isn't a flat roof or resembles The Stewart like all the other buildings around the valley.

That's straight out of Blade Runner. Too bad its not taller...but we'll take it! That'll look rather interesting on the skyline...

[gymratmanaz]

Love the rooftop Donkey Kong being played!!!!!!

[CrestedSaguaro]

A couple updates while on my lunch today:

Tower crane base going in at the ASU residential project on Fillmore.

Aspire has a deep hole dug...deep enough for 1 level of parking. Is there supposed to be underground parking for Aspire?

Hines is rocking and are working on the elevator shaft and there's 1 level of columns built already. Probably will be raising the crane very soon.

Link 2 is also moving very fast and will probably have a crane in a couple of weeks.

No movement at Derby yet, but noticed a lot of new utility marking paint along the sidewalks on both 2nd and McKinley.

AC is up to the 8th floor. So a little over halfway. Starting to add some density to AZ Center.

Kenect is on it's final floor. Also facade is going up on Kenect. One strange thing on Kenect is there is not going to be any windows at all on the South facing side. I find that kinda strange as there's a good 50' feet between Kenect and Freeport. Also Kenect is closer to Central than Freeport which means balconies or windows would not have been blocked. Another thing I noticed is that Kenect makes Freeport look much larger. This is what smaller infill buildings can do for a shorter downtown. AC is having the same effect at AZ Center. Love infill!

Here's some pics I took:

AC Hotel


X Phoenix


Kenect showing facade


Kenect South side showing no balconies or windows.


Kenect from Fillmore St. showing impact in skyline. ASU construction in foreground (probably should have made a dust complaint).

[Sunsfan87]

Originally Posted by stutteringpunk

Kinda bold, but I'm to the point where I'll take anything that isn't a flat roof or resembles The Stewart like all the other buildings around the valley.

More renderings of Atari hotel:
https://www.azfamily.com/news/new-at...mpression=true