Published November 15, 2023
Mainstreet Capital wants to add multifamily to Camelback office campus
Mainstreet Capital wants to add multifamily to Camelback office campus
A large Camelback office complex could see the addition of luxury apartments, bringing new residents to a central business corridor in Phoenix.
The developer — listed as Fort Lauderdale, Florida-based Mainstreet Capital Partners in project documents — plans to build a 75-unit multifamily complex with varying unit sizes and floor plans. The apartments will be developed in place of an existing parking garage at the Camelback Lakes office complex, which currently includes four multi-story buildings totaling 203,290 square feet.
"New housing options in this immediate area are somewhat limited and these luxury units are in demand in this location, adjacent to Biltmore Fashion Park and the Camelback East Core," documents submitted to the city said.
Luxury apartments are being proposed for a large Camelback office campus in Phoenix.
SHEPLEY BULFINCH VIA CITY OF PHOENIX DOCUMENTS
Developers have increasingly proposed adding apartments to aging commercial centers to help revive retail and office buildings across the Valley. Apartments have also become a key piece of major mixed-use projects and redevelopments such as the former Metrocenter and Paradise Valley malls.
Amenities for the new five-story Camelback complex could include a fitness center and lobby lounge on the first level, a swimming pool and spa and amenity deck on the second level and a coworking lounge with outdoor seating on the fifth level.
New apartments could also support existing and new retail, restaurant and other commercial uses and employers that are within walking distance of the site, documents added.
The new apartments will feature a mid-century modern inspired design and be developed just east of the Embassy Suites hotel and Biltmore Fashion Park at Camelback Road and 26th Street.
An application to rezone 1.6 acres comprising the parking garage was submitted to the city of Phoenix for the development of apartments in September. Called Camelback Lakes Residential, the project is expected to include parking that can be used by residents and office workers.
The architect is listed in project documents as Shepley Bulfinch. Withey Morris Baugh PLC is representing the developer in the rezoning process.
The Camelback Lakes office complex was previously sold to New York City-based DRA Advisors LLC for nearly $50 million in 2019.
The Camelback Corridor had a 17.9% direct office vacancy and a negative net absorption of 15,877 square feet in the third quarter, according to Colliers International research.
This part of the Valley also had the highest rental rates among class A office product — rates increased nearly 5% year-over-year, ending at $40.03 per square foot in the Camelback corridor, which surpassed Tempe as the most expensive submarket.
