Long-stalled Phoenix office-to-residential conversion nears opening

Article originally posted on CoStar on June 12, 2026

Developers are nearing the finish line on a rare office-to-residential conversion that’s transforming a longtime eyesore on one of Phoenix’s prominent high-profile intersections into luxury apartments.

One Camelback has long sat idle and unfinished behind construction fences. A previous developer embarked on the project in 2020 with the hopes of turning the 1980s-built bank building into destination living in the middle of one of Phoenix’s top employment corridors the following year.

The project ran into delays and financial strain and was taken out of the hands of the developer in a 2023 trustee sale. Kinella Capital, an Arizona-based developer, purchased the building in late 2025 from Acore Capital, the previous lender for the project, in a $36 million deal.

Now, the 163-unit One Camelback is underway with preleasing ahead of a projected September opening.

“It’s been a big problem for Phoenix, for the neighborhood and even for the industry as a whole and for office conversion, optics and lending,” said TK Stratton, Kinella’s CEO and founder in an interview with CoStar News. “It’s neat that we can be involved and solve a problem like that.”

Office landlords across the United States, facing a glut of empty space, turned to such conversion projects following the pandemic as remedy for aging, obsolete buildings unlikely to survive in their original use.

For the first time in years, the rate of office demolitions and conversions has outpaced new construction, spotlighting landlords’ eagerness to quickly reposition their buildings as the national office market’s vacancy rate remains near record highs.

Still, in many cases, the concept of conversions is quickly dismissed due to the associated cost, complexity and design limitations.

Progress on One Camelback stalled as the building sat about 80% complete with about 150 of the units in “touch-up” stages while the remaining ones, along with the common areas and landscaping, needed to be finished.

The “hard part” of the job, which Stratton said is behind the walls and includes everything from installing a water system, fire sprinklers, sewer and utilities, is over. Kinella is focused on final finishes, landscaping and improving the entrance to the building.

Stratton told CoStar News last December that he expected to start leasing the units within “about a year.”

“This building has had its challenges and just been sitting and neglected,” said Stratton. “It’s nice when you do better than what your schedule anticipated.”

The 163 units are equipped with floor-to-ceiling windows that look out to the mountains and the city of Phoenix, smart-home features, premium appliances, quartz countertops, wood-style flooring and washers and dryers.

Monthly rents start at $1,600 for a studio and go up to $8,000 for a three-bedroom unit. Floor plans range from 532 to 1,898 square feet.

Amenities include a rooftop pool and spa with cabanas, grills, fire features as well as a clubhouse and fitness studio.

The building will also have co-working spaces, which Stratton said can appeal to young professionals who either work from home or have hybrid schedules. He expects One Camelback’s proximity to downtown Phoenix and the Biltmore area to be a big draw for its target market.

One Camelback is located in the Downtown Phoenix submarket, where the average asking rent is over $1,500, according to CoStar. Downtown Phoenix is one of Phoenix’s most active submarkets for multifamily construction. The active pipeline is a product of efforts to make the area a live-work-play environment over the past decade.

Stratton said Kinella is “always out on the hunt” for new projects that make sense and “absolutely” would tackle another office-to-residential conversion.

“Most offices are in highly desirable locations, so when you convert that to residential, you’re on an amazing corner,” Stratton said.

One Camelback is fittingly named after the building’s address, 1 E. Camelback Road.

“This is a big milestone for Phoenix when it comes to not only office conversion, but luxury product on the corner of ‘Main and Main,'” Stratton said. “The energy in this area is just so fun with really good people.”