Arizona Center, once a destination for downtown dining and nightlife, has struggled in recent years to attract and retain businesses to serve the growing downtown.
Phoenix officials hope the new, local owner of the center will help turn things around.
“Arizona Center is one of those lost shopping assets,” Karla Scott, economic development program manager for Phoenix, said.
The center has been struggling since the Great Recession, and the Covid-19 pandemic stopped any momentum the recovery might have had, she said.
Phoenix-based Presson Corporation, led by Daryl Burton, a real estate developer and property manager who has been involved in major projects throughout the region, bought the retail and office portions of the center in July for $27 million, according to real estate database Vizzda.
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The center is located at Third and Van Buren streets.
Burton said he is looking forward to working on the Arizona Center but declined to comment further on the plans until he has had a chance to make some progress.
Burton has been involved with projects including the adaptive reuse of a former Lockheed Martin campus near Goodyear, now called Flite.
A key location in downtown Phoenix
Scott, who focuses on Arizona Center and other retail developments around the city, said the center has an ideal location in the heart of a fast-growing neighborhood.
“There are over 3,800 residential units under construction in downtown, and about 55% of those are within a quarter-mile of the Arizona Center,” Scott said, meaning about 2,000 units will be within an easy walk to the center once they are completed.
Her team worked with the previous owners of the center, but leasing new tenants was elusive.
Tenants of the retail portion of the center include AMC Theatres, Jersey Mike’s, BoSa Donuts, Cold Stone Creamery, Moriah II Nails & Spa, Omoide Sushi and Noodle Bar, the Rose Theatre and Art by Nik Ridley.
The center’s previous owner held successful pop-up events in the common areas, but vacancy still remained high, Scott said.
Scott said the city is working with the new ownership to send leads for various types of tenants.
“The new owner is very motivated,” she said.
Seeking options for locals, out-of-town visitors
With a location near downtown residents and the Phoenix Convention Center, Scott said the center ideally could serve both, with goals to add healthy food options, entertainment, apparel and some recognizable brands.
“We are looking for a nice balance,” she said. “Downtown Phoenix prides itself on cool local businesses and restaurants. We also need a couple of national tenants, brands that people recognize, for that balance.”
If a large tenant could come in and take the space that was vacated by Hooters, momentum could shift for leasing at the center, Scott said.
“All the elements are there,” she said. “It could just be lacking one major tenant. It has excellent outdoor space primed for activation.”
Major renovation completed before pandemic
The center underwent a $25 million renovation in 2018, and a new hotel was built next to the retail portion. An apartment tower is also under construction on the site. The hotel and apartment are under different ownership than the retail and office components.
In 2018, North American Development Group bought the 1.3-acre parcel for the apartment complex, on the corner of Van Buren and Fifth streets, for $4 million. In 2021, Arbor Lodging bought the AC Hotel by Marriott Phoenix Downtown, on the northeastern side of the property, for $65 million, according to Vizzda.
The center did suffer a loss in early August when Prickles, the saguaro at the Arizona Center, died. The saguaro was often sought out by convention attendees wanting to have their picture taken with the iconic cactus.
According to an Instagram post from Downtown Phoenix Inc., a new saguaro will take Prickles’ place.
Reach the reporter at cvanek@arizonarepublic.com. Follow her on X, formerly Twitter @CorinaVanek.
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