A new $117 million apartment development is coming to the heart of downtown Phoenix, and it’s making headlines not just for its size—but for its respect for the past.
Project Overview:
- Developer: Aardex (Colorado-based)
- Location: First Avenue & Jackson Street, Downtown Phoenix
- Scope: 14-story tower with 262 residential units on ~2 acres
Historic Preservation:
- Pratt-Gilbert Building: Built in 1913, this 100+ year-old structure will be restored and repurposed as commercial space.
- The restoration focuses on preserving the historic exterior while adapting the interior for modern retail or restaurant use.
- The adjacent non-historic building will be demolished to make way for the new tower.
Public Incentives:
- GPLET Agreement: A 25-year tax incentive that includes:
- The developer deeding land back to the city for tax benefits.
- Continued financial contributions to the city and school districts via minimum payments.
- Rent payments to the city totaling $643,750.
- Contributions to Phoenix’s affordable housing trust fund equal to city property taxes.
Investor Takeaway: This project signals strong continued demand for urban infill and adaptive reuse in downtown Phoenix. By preserving architectural history while adding dense housing, it’s a model for investors looking to balance heritage with growth potential.