Luxury hotel to become attainable luxury apartments
per Trillium Management president Kenneth Losch.A swanky, landmark hotel in north Phoenix that's been shuttered for several years will get new life as "attainable luxury" apartments near the planned Metrocenter mall redevelopment.
Why it matters: That area of north Phoenix is in the midst of a massive transformation and the redevelopment of the Sheraton Phoenix Crescent will add to the area's renewal.
The big picture: Foundation 8, a partnership between Trillium Management and Gia Hospitality, plans to convert the hotel into an apartment complex called The Crescent, per Trillium president Kenneth Losch.
State of play: The $120 million project will blend "high‑quality residential living with resort‑style amenities at rental rates accessible to working professionals."
- Losch told Axios that the complex will also accept renters with past credit problems that have since been resolved.
Zoom in: The complex is slated to have 258 studio, one-bedroom and two-bedroom apartments in the former hotel and another 350-plus units in three smaller buildings that won't block views from the former Sheraton.
- The developers plan to keep the hotel building structurally intact but will repaint it with new colors, Losch said.
- He said the first phase, which will only include the hotel conversion, is expected to be completed in 12-18 months.
Zoom out: Losch said he and his partners look for projects that have "tailwind," meaning "the demand is moving to a new level in the area" due to improving market conditions.
The big picture: Foundation 8, a partnership between Trillium Management and Gia Hospitality, plans to convert the hotel into an apartment complex called The Crescent, per Trillium president Kenneth Losch.
- Metrocenter has been demolished and will be replaced with the Metropolitan, a huge residential and retail center served by a recent light rail hub.
- The massive Taiwan Semiconductor Manufacturing Co. complex is nearby and accessible via Interstate 17, Losch noted.
- Both are expected to drive housing demand.
The intrigue: The apartment plans aren't set in stone, and the developers left open the possibility that the building could once again become a full-service hotel if there's demand from someone like TSCM or its suppliers.
- Yes, but: That would only happen under the right circumstances that would have to occur quickly, Losch said.
Catch up quick: The hotel has been closed since January 2023 due to an electrical fire.
- The property was tied up in legal disputes for years and a court-appointed receiver unsuccessfully attempted to sell the building at auction.
Flashback: The Sheraton Phoenix Crescent was built by Charles Keating's American Continental Corporation and opened in 1986.
- American Continental declared bankruptcy in 1989 after the infamous collapse of Keating's Lincoln Savings and Loan Association, and the federal government seized the Sheraton Phoenix Crescent later that year.
