The long-quiet Sheraton Phoenix Crescent is about to trade in wedding banquets and conference badges for lease agreements and Amazon packages.
Developers say the north Phoenix landmark, a familiar sight near the old Metrocenter site, will be reborn as "The Crescent," a hefty mix of apartments carved out of the former hotel plus several new residential buildings. The idea is to keep the hotel’s concrete shell, ditch the short-term stays and turn the whole thing into long-term housing targeted at working professionals.
What the plan includes
According to Axios, Foundation 8, a partnership between Trillium Management and GIA Hospitality, is behind roughly a $120 million conversion of the Sheraton. Inside the existing hotel, the plan calls for about 258 studio, one- and two-bedroom apartments. Another three smaller residential buildings would add more than 350 units.
The main structure is set to stay put, with a repaint and a refit rather than a wrecking ball. The vision, the developers say, is "high-quality residential living with resort-style amenities at rental rates accessible to working professionals." In other words, spa vibes without full-on luxury price tags.
Where it fits in Phoenix's boom
The timing is not accidental. The surrounding area is already in the middle of a dramatic reset as the former Metrocenter Mall comes down and a new urban mixed-use village goes up in its place. Metro Phoenix Alliance reports that demolition is done, homebuilders are in the wings and large residential blocks are planned nearby, all feeding demand for housing near transit.
That cocktail of mall redevelopment, new residential projects and broader industrial investment is one reason investors keep circling older hotels. Converting a dormant property into apartments can be faster and cheaper than starting from scratch, especially when the bones are solid.
About the building
The Sheraton Crescent sits at The Phoenix Hotels, just off Interstate 17 on West Dunlap Avenue. The property has been largely dormant for several years while ownership changes and attempted sales played out.
Its eight-story concrete frame, generous meeting spaces and close proximity to transit lines all help make it a candidate for reuse without a full teardown. Instead of ballroom galas and corporate retreats, those big interior spaces are poised to become amenity and residential areas.
Buyers and the economics
Investor materials show multiple groups have scoped out the property, and they are generally modeling attainable rents rather than top-shelf luxury pricing. Stok Investment Group, which released an investor deck when it had the hotel under contract, outlined underwriting that assumes average rents around $1,500.
In that scenario, most units would be affordable to residents earning at or below 80 percent of the area median income. That is the backbone of the "attainable luxury" sales pitch: deliver amenity-heavy apartments that feel high-end while staying below typical new Class A price points.
Timeline and what to watch
Developers say early construction activity could begin fairly quickly after financing and permits are locked in, with the first phase expected to deliver in roughly 12 to 18 months.
Axios also notes the partners are intentionally leaving the door open for a plot twist: if market conditions swing, the building could revert to a full-service hotel again.
For now, the next big checkpoints are city approvals, final design work and a firm construction start date. Until then, the Sheraton Crescent sits in limbo a little longer, waiting to find out if its future is as an apartment community, a revived hotel or something in between.
