In a decisive move, Intersection Development, rooted in vibrant downtown Phoenix, has recently rolled out $10.5 million to take over the real estate earmarked by Audacy's local radio stations, per a report from the Maricopa County records and filings with the U.S. Securities and Exchange Commission. The transaction, dated Dec. 8, included a mix of down payment and novel debt arrangements—$7.5 million upfront coupled with $3 million in loans, data sourced from the real estate database Vizzda suggests.
Although Audacy—who filed for Chapter 11 bankruptcy as of Jan. 7—has stayed silent on their divestment, the building in question rests on a hefty stretch of land positioned at 840 N. Central Ave, sporting a full cash value north of $1.4 million. Recognizing the property's "Downtown Gateway" zoning, Phoenix city planners envision a future teeming with high-density residential and commercial development, a plan that seems to be on Intersection's radar—though their specific intentions for their recent acquisition remain a closely guarded secret, as they declined to discuss potential plans for the property, according to Phoenix Business Journal.
Simultaneously, in a nod to the past and investing with an eye on the future, we see an interesting parallel in the real estate tactics taken by veteran investor Larry A. Silverstein. Silverstein has made his mark by focusing on revitalizing seasoned buildings to harness the financial benefits that arise from improved facilities and heightened rental rates; he told The New York Times in an interview, “I have spent my time in upgrading and have achieved enormous advantages from increased rents obtainable from improving an older building.”
The parallel doesn't end there, Intersection's history has been one of cultivating high-profile sites, most notably in Roosevelt Row, with over 17 projects and a $300 million investment under their belt, they've partnered with Lev Libeskind and stride forward on projects like Rainbow Road—a 36-unit boutique apartment building and Manzana, a forthcoming 68-unit complex with ample retail space, as stated on their website and reported by the Phoenix Business Journal. Not to mention, Intersection's portfolio barely contains any new-builds aligning with Silverstein's downtown property investment philosophy.
Intersection's potential connection to the proposed Atari hotel project echoes back to an earlier time when transformative ideas in midtown building ownership captivated our imaginations—yet exact plans for the Stoddard RoRo and Arcada RoRo sites remain under wraps, these areas tantalize with suggestions of innovative concepts like an "extraordinary speakeasy bar," the Arcada at Roosevelt set to launch in spring 2024, and an enigmatic landing page teasing an imminent "breaking announcement" related to Atari linked to their interests in themed hotels, something they teased since the pre-pandemic era in partnership with True North Studio and GSD Group, as documented by a previous PBJ report. While the future of Roosevelt Row's Atari-themed hotel hangs in the balance, Intersection's stake in the bustling Phoenix district signals their commitment to be not just a spectator but also a shaper of the urban landscape.
