- Stalled Construction: The second tower of the X Phoenix luxury apartment complex has halted at 50% completion due to legal and financial disputes.
- Developer vs. Contractor: Clayco, the general contractor, terminated its contract with developer The X Co. over unpaid work, claiming $40.3M in principal owed and $10.6M in interest.
- Foreclosure Threat: Clayco is pushing for foreclosure on the project site unless The X Co. settles its debts.
- City Steps In: Phoenix officials, especially Economic Development Director Christine Mackay, are working with both parties to avoid a lengthy foreclosure or bankruptcy.
- Potential Outcomes:
- Best case: The X Co. secures new financing to finish construction.
- Worst case: A sale or foreclosure delays completion for years.
- Investor Angle: The first tower, completed in 2022, is fully stabilized. The unfinished second tower was expected to bring 592 new rental beds to downtown Phoenix.
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