Phoenix, AZ
Overview
At the time The Krausz Companies acquired Prudential Plaza, located on the Central Avenue Corridor of midtown Phoenix, the 1960s era office complex was suffering from a combination of a faltering economy, mismanagement, and functional obsolescence. Additionally, the project contained large amounts of asbestos, requiring a building-wide, “down to the steel” asbestos abatement program. Once a premier address, the buildings were almost completely vacant, and had stopped attracting interest from brokers and tenants.
Strategy
The Krausz Companies implemented an innovative renovation plan that significantly increased the leasable area of the project, substantially improved the leasing floor plate, and regained the market’s attention with a modern and attractive new skin. The company combined creative design with efficient construction methods to convert exterior balconies into interior space, resulting in increased occupancy and a net increase in leasable area. During the renovation, Krausz provided incentives to and worked closely with the brokerage community to create excitement about the new project, resulting in full occupancy for most floors as soon as the renovation on the floors were completed. The full-scale renovation also included comprehensive building modernization and extensive redesign of interior and exterior common areas.
Results
The results were stabilized occupancy of over 90%, and a tenant mix which included three of the most prominent law firms in Phoenix. Ultimately, The Krausz Companies sold the once-again class-A 26 story office tower to an institutional buyer, and exited the adjacent mid-rise by converting it to office condominiums.
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