Centerpoint Towers Finally Sold to Zaremba Group; Construction to Finish Project Begins "Immediately"
Welcome to "West Sixth."
The Centerpoint Towers in Tempe have been sold, and construction on the unfinished project will resume "immediately" in order to have occupants living there by August.
Zaremba Group, which came close to buying the towers and five-acre property, closed the $30 million deal today, confirms Mark Winkleman of ML Manager, the successor company to Mortgages Limited.
ML Manager settled with the subcontractors who said they were owed $21 million for their work, and the company will attempt to recoup the loss from its insurance company, Winkleman says. He declined to give the settlement amount.
The planned, high-rise apartment complext will be called "West Sixth," a reference to its location at Sixth Street and Maple.
Here's the press release from Zaremba's PR firm:
TEMPE, Ariz. (February 18, 2011) - Zaremba Group announces today that the sale of the Centerpoint development is final and construction will resume immediately on the luxury, urban housing project slated for move-in by late summer. New management brings with it a fresh name for the residential property - West Sixth, a nod to the central address the towers occupy in downtown Tempe.
Located at 111 West 6th Street, the apartments bring an obtainable, sophisticated lifestyle to the Tempe rental market. Phase I of the new West Sixth complex, a 22-story residential tower, will be ready for occupants by August 1, 2011 and will incorporate mixed-use retail and restaurant space on the ground floor. Phase II, a 30-story residential tower, will be completed by December of this year giving the community a total of 375 apartment homes.
West Sixth will augment the Live/Work/Play lifestyle of the predominant student atmosphere in downtown Tempe. The innovative apartment community will include several comforts consistent with fine living including a 9,000 square feet fitness facility complete with a yoga studio, tanning beds and lounge. The resort-style pool area boasts cabanas, fire pits and a barbeque area. Rental pricing is not yet available, but is expected to be commensurate with other area communities.
"West Sixth offers unmatched amenities and will be the pinnacle for urban lifestyle. We are pleased to now move forward mindful that sales of this magnitude and complexity take time to complete," says Kent Chantung, director of residential development for Zaremba Group on the interval from the previous expected closing date in October, 2010. "The added time in the process allowed us to solve lingering issues. With the obstacles resolved, we are now able to deliver a remarkable living environment to Tempe."
Zaremba Group is a national real estate organization based out of Cleveland, Ohio and currently manages three properties in the Phoenix area. Because of their specific expertise in stabilizing distressed housing developments, they have been instrumental in navigating the intricacies of the sale of the Centerpoint project. They will continue to oversee the development of West Sixth to fruition.
"We are cognizant of the past of this project, but are extremely excited to be an integral part of the present and future of Tempe," adds Chantung. "West Sixth represents a significant contribution to growth and construction for the Valley and will expand Tempe's standing as a significant metropolitan destination."
Winkleman says he's elated to see the sale go through, adding that it was the "longest, most complex, contentious" real-estate deal he's ever worked on.
A New Times feature article about the towers in October of 2009 describes how the Centerpoint project went from Mortgages Limited's largest single project to an unoccupied, unfinished eyesore in the aftermath of the lending company's collapse.
Only the smaller tower will be completed initially, and we imagine even that won't fill up that quickly without major rent discounts. Still, the sale is great news for downtown Tempe, which has been plagued by too many empty storefronts as the
recession shitty economy wears on.
Best of all, no double-implosion.