Work on One Camelback in Phoenix resumes with new owner

Work on One Camelback resumes in Phoenix

A Phoenix building known as One Camelback has sat vacant in recent years, but a new owner has resumed work to turn the 11-story office building into apartments. FOX 10's Steve Nielsen reports.

PHOENIX - The building known as One Camelback has sat vacant for the last two years.

The 11-story office building, located in the area of Central Avenue and Camelback Road, was being turned into luxury apartments until the previous owner ran out of money. A new owner, however, says he has a plan to put the finishing touches to the project.

The backstory:

Redevelopment of the former office building began in 2018 with a different owner, and even though 80% of the work was done, COVID-19, supply chain issues, and rising interest rates doomed the project.

The owner defaulted in 2023.

"If the value of the property is only here, our debt is here, we have this much more to go, what are our options? And that’s a tough thing," TK Stratton said. "Those are tough, tough decisions that both developers and lenders have to make."

Big picture view:

Stratton, who worked alongside his father, recently purchased the building.

"Once we heard it went back to market we decided, 'Hey, let’s make a run at this,'" said Stratton.

Stratton described what people can expect in the apartment building's 163 units.

"There’s a glass, 11-foot floor-to-ceiling, all the way around the building, unobstructed views of the entire valley, Camelback Mountain, right on the corner of Main and Main. I don’t know how you could ever replace this," Stratton said.

Head to the roof deck, and the views become even clearer.

"We'll finish the pool deck; the views are incredible. You know, when you have Camelback Mountain, you have Biltmore, you have downtown right next to us. It’s just incredible. You can see Four Peaks," Stratton said.

Stratton said his background in construction restoration seemed a fit.

"Fires or floods or wind damage, we would go in and fix them, so we’re used to problems," Stratton said.

Dig deeper:

This kind of project, which involves turning offices into apartments, might become more common.

"More people work from home, there’s more remote work. Companies are being more efficient with their use of office space. We have a glut of office space," said Alex Horowitz with Pew Charitable Trusts.

Horowitz says these conversions are complicated, but can help with affordability, even if they’re building luxury units.

"It just creates new options," said Horowitz. "We absolutely see affordability improve, even when the new housing is high-end. We just need more of it."

What's next:

Although the last attempt to finish this building stalled, Stratton is confident he will finish the project, and bring more apartments to Phoenix.

"I see a project that is unique to anything that exists," Stratton said.

They hope to start accepting pre-leases by this time in 2026.