If you guys didn't already know, Phoenix just got a 50-story luxury condominium proposal.
50-story skyscraper to tower over downtown
Mike Padgett
The Business Journal
Downtown Phoenix's skyline, already in transition, appears headed for a change that could make history books.
A high-rise luxury condominium tower with as many as 50 stories and 900 residences -- plus an adjacent building for Arizona State University's journalism school -- are proposed on the block occupied by the Ramada Inn-Downtown.
The aging hotel between First, Second, Polk and Taylor streets is owned by City Centre LLC, which plans to donate the land and building to the city in a public-private partnership that would give the owner the right to develop the condo project. The proposal could become the first new development as part of Phoenix's plan to help Arizona State University expand its downtown campus.
The residential tower, which would be the tallest building in Arizona, would occupy the southern two-thirds of the site, and the Walter Cronkite School of Journalism is planned in a smaller, yet-to-be-designed building on the northern third of the block. The ground floors of both buildings would be reserved for retail uses, and a parking structure would include 200 spaces for students.
Although there is skepticism in the business community about the preliminary design, the proposal is genuine, said Nick Wood, City Centre's zoning attorney at Snell & Wilmer.
Downtown Development Office Director Patrick Grady supports the condo proposal because it would boost the area's residential inventory.
"I think there's a horse race going on downtown, particularly relative to the condominium market and different prospects trying to hit the market sooner rather than later," Grady said.
The architect is Studio4 Design, and the development manager is CMX, both of Phoenix. The contractor is Turner Construction of New York City, Wood said.
CMX Chief Executive Don Dillon said the condo project's design could be modified into two side-by-side buildings connected by a glass-enclosed vertical atrium.
Letter of intent signed
The hotel owners have signed a letter of intent for the private development to be coordinated with Phoenix and ASU, which are reviewing their intergovernmental agreement for the downtown campus. The IGA will be discussed April 29 by the Arizona Board of Regents and May 11 by the city council.
Wood said City Centre's donation of the hotel and land to the city will "save the city and the taxpayers a tremendous amount of money by creating a partnership in which the city didn't have to purchase the property."
City Centre LLC consists of Leslie Williams and Michael Rakow of Phoenix and Alex Berg and Jerry Glick of St. Louis.
Williams and Rakow said that soon after they bought the property in 2004, they were approached by Phoenix about a public-private partnership. The goal is redeveloping the property as part of ASU's plans for an expanded downtown campus.
Wood said the estimated $15 million value of the deal includes the hotel property, its business, and tax benefits generated for City Centre by donating the property.
Documents filed with the Maricopa County Recorder show a $6.5 million down payment on the site from City Centre, but no total sales price.
City Centre's partners' development experience has been limited to smaller commercial projects, but they have been meeting this week with others who have the needed experience and capital to tackle a 50-story condo building.
"We are negotiating with several highly recognized developers, some of whom have national and international reputations," Wood said.
A construction schedule hasn't been determined, Wood said, "but it could be possible for them to start construction next year."
He also hinted that the condo design could change, based on the outcome of a market study of potential buyers. The study, if launched, would be performed by Elliott D. Pollack & Co.
"If this ends up being a 50-story building, it would certainly be a different type of condo project than the ones going on right now (downtown)," Wood said.
The condo tower, the adjacent journalism school and other future development for the campus and the private sector could have as much as 300,000 square feet of space for retailers. For advice on what type of retail business would work best downtown, the city will turn to a retail advisory group it formed earlier this year.
Dillon said the journalism school building hasn't been designed, so its height and configuration are unknown. What is known is that the property will be among ASU's first new downtown locations.
West of the Ramada site is the 411 N. Central Ave. office building, where the offices will be renovated this summer for use in the fall by students in the College of Public Programs. East of the Ramada site is the Park Place office building at Taylor and Third streets, which is planned for the College of Nursing.
The renovations are part of the first phase of ASU's downtown expansion, to be completed by fall 2006.
Construction of new buildings for ASU and renovation of existing buildings for classrooms will be financed with the $233 million Phoenix plans to use to help ASU expand its presence downtown. The monies are part of the $750 million bond election planned in March 2006. The journalism school would be part of phase two, which is scheduled to start in 2008.