|Image via Google Earth|
Block 23, the Phoenix City Block bounded by 1st through 2nd Streets and Jefferson through Washington Streets, is to be developed into a new mixed-use project.
On March 1st, a partnership between RED Development and Street Lights Residential acquired ground-leasehold interest in the property and signed a new 50 year development leasehold agreement. Alongside the transaction an updated Disposition and Redevelopment Agreement was filed that outlined the minimum improvements required and incentives received.
Per the agreement the developer is to deliver a mixed use high-rise with approximately three hundred (300) residential units, one hundred fifty thousand (150,000) square feet of office space, fifty thousand (50,000) square feet of commercial space, thirty five thousand (35,000) of which is designated for grocery, one thousand (1,000) above and below grade parking stalls, and associated street-scape improvements. They will have 36 months from commencement of construction to complete development.
The Developer will receive $2.5M upon commencement of construction and an amount not to exceed $14M over 25 years. Commencement of construction is defined in the contracts as receiving a demolition permit.
The current space is occupied by a four story underground parking garage and, reportedly, a bomb shelter. Barron Collier held demolition permit for property prior to transaction. Vizzda cannot verify whether or not this permit has changed hands to Developer as part of transaction. If this has happened would trigger the 36 month construction timeline and $2.5M payment by City of Phoenix. However, demolition and construction cannot begin until after the NCAA Final Four events downtown.
Blog written by William Shepler.
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