The Heard Building, a downtown Phoenix landmark and the city's original high-rise, is teetering on the brink of foreclosure. The property, currently owned by an affiliate of the national coworking operator Expansive, may find itself changing hands at a foreclosure auction scheduled for late November. This potential shift comes as the office sector is still reeling from the impacts of the COVID-19 pandemic, with many companies reevaluating their need for traditional office space.

A trustee sale notice filed in Maricopa County by SMS Financial VW LLC, signals that the future of the building is uncertain. The lender initiated the foreclosure process by claiming an unpaid debt of $11.7 million, which it acquired from First Interstate Bank in July. These details were released in an ABC15 report.

The Heard Building, which has stood as a fixture in downtown Phoenix since its construction, is part of a larger narrative of office spaces across the nation struggling post-pandemic. As remote work arrangements become more normalized, the demand for coworking spaces and office high-rises has seemingly to shift. The Heard Building's ownership wrestling to hold onto the property is symptomatic of a broader trend within the real estate market, particularly in the commercial sector.

The upcoming auction, set for Nov. 26 at the Arizona Superior Court building, will likely attract significant attention from local investors and real estate professionals. A partnership between Phoenix-based ViaWest Group and SMS Financial, operating under the name SMS Financial VW LLC, is behind the foreclosure action, as reported by Orion Property Group. This pivotal event could potentially to set a precedent for similar cases in the downtown Phoenix area and beyond.