Offices at a prominent downtown Phoenix building are under new stewardship.
Foundation 333 LLC, an entity linked to real estate moguls Izhak Ben Shabat and Kenneth Losch, acquired the office portion of the 333 North Central Avenue building from Peakstone Realty Trust for an undisclosed amount, the Phoenix Business Journal reported. Newmark’s CJ Osbrink, Barry Gabel and Chris Marchildon represented Peakstone in the sale. The buyer’s representation is unknown.
Though the sale price for the building is not publicly available in Maricopa County records, Osbrink told the Business Journal last summer that he believed the building would sell in “the low-$40 million-price range.”
The 26-story high-rise was the longtime home of mining company Freeport-McMoRan before the firm started moving out during the pandemic. Freeport-McMoRan’s headquarters are now in the Cotton Center business park in southeast Phoenix. The company put its 250,000-square-foot space up for sublease early last year.
Foundation 333 acquired the top eight floors of the building, totaling about 250,000 square feet of offices, as well as the first-floor retail space and parking rights. The lower portion of the tower houses the 242-room Westin Phoenix Downtown hotel, which isn’t included in the sale.
The property is technically owned by the City of Phoenix, which has a 50-year government property lease excise tax, or GPLET, on the site. A GPLET either provides incentives via an excise tax in place of property taxes for 25 years or can abate the excise tax for eight years in a central business district.
The city “does not have information to share regarding the sale price or the buyer’s future plans,” City of Phoenix public information officer Athena Sanchez said, noting the tower is “leased to a private entity that operates and manages the property.”
Whether Foundation 333 keeps the floors as offices for one large tenant or multiple smaller tenants or converts them into apartments remains to be seen. — Chris Malone Méndez
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