Unpaid $128M loan sends downtown apartment community X Phoenix to trustee sale Article originally posted on Phoenix Business Journal on September 16, 2026 The developers of X Phoenix have been notified their 330-unit downtown Phoenix apartment community is headed for a trustee sale after they failed to pay a $128 million loan on the project. New York-based Mack Real Estate Group, the lender on the project, have notified XSC Phoenix Investment LLC, the borrower and developer of the apartment community, that the property will be sold at auction at Maricopa County Superior Court on Dec. 10, according to Maricopa County documents. This trustee sale is for the first phase of X Phoenix at 200 W. Monroe St., a $100 million development project that represented the Phoenix debut for Chicago developer The X Company. The X Co. could not be reached for comment. Mack Real Estate Group declined to comment. While X Phoenix includes traditional apartment units, a portion includes a co-living “rent by bedroom” program, where tenants are only responsible for their share of rents and utilities. It’s the same model utilized by X Denver, a 12-story, 455-unit building developed by The X Co. in Colorado which is now facing a $170 million loan default, Denver Business Journal reported Sept. 8. An entity controlled by Mack Real Estate Group is also the lender on the Denver project. The scheduled trustee sale in Arizona does not include the second phase of X Phoenix, which borders Third Avenue between Monroe and Van Buren streets. The entire project encompasses a city block on two acres. But construction of Phase II of X Phoenix halted in September 2023, spurring a series of mechanic’s liens and lawsuits. That 25-story tower was expected to be completed in 2024 with 592 beds. The X Co. secured a Government Property Lease Excise Tax, or GPLET, through the city of Phoenix to abate property taxes while the X Phoenix project is under construction. That means the city owns both phases of X Phoenix, Christine Mackay, former economic development director for the city of Phoenix, told the Business Journal in March 2024. The city of Phoenix also declined to comment for this story. The stabilized vacancy rate downtown was comparable to the market average of around 7% during the second quarter, said Pete O’Neil, national director of research for Northmarq. “But when you factor in the overall vacancy rate downtown — which includes properties that are in lease-up — that figure spikes to about 20% as of the second quarter, or one of the highest rates in all of metro Phoenix,” O’Neil said. “So there’s still some weakness downtown among the properties that have come online in recent years.” Find Complete Article Here: https://www.bizjournals.com/phoenix/news/2026/09/15/x-phoenix-heads-to-trustee-sale.html?cx_testId=81&cx_testVariant=cx_1&cx_artPos=3#cxrecs_s