Monarch Alternative Capital and Tourmaline Capital Partners are getting in on and investing in Phoenix's flight-to-quality office movement with a big infusion of capital at the Esplanade campus in Phoenix.
The partnership said it plans to renovate and add to the Camelback Corridor office campus with a $45 million investment, with the heart of the project being the renovation of an existing one-story building into a new 16,000-square-foot two-story amenity building. The bottom floor will be home to a bar and café, an employee lounge and game areas with pool tables and golf simulators. The second floor will be dedicated to wellness, which includes a gym, studio spaces, recovery rooms, saunas, mothers' rooms and meditation spaces.
Other amenities will include a new 8,000-square-foot conference center, which is a venue that could accommodate events for up to 100 people, that will be added to the building just to the east of the amenity facility. The conference center will include a variety of meeting rooms and coworking spaces outfitted with media equipment tailored to producing podcasts, livestream studios and more.
"Building amenity space is paramount and important but activating those spaces are equally, if not more important," said Robert Marino, vice president of asset management at Tourmaline. "The goal is to have spaces that empower the workforce to be as efficient as possible in a space they are happy in. ... All of the sudden, the 3 o'clock meeting is taking place at the golf simulator or at one of the new outdoor spaces, but you're still in reach of your office space."
Other plans for the Camelback Road office buildings include redeveloped landscape, a new shade structure, new lobby entrances, and pedestrian-friendly walkways. Construction is expected to start in the first quarter of 2023 and be complete by the second quarter of 2024.
Click through the slideshow above to see renderings of what's planned for the Esplanade.
“This renovation will amplify the already desirable location and offerings the Esplanade has,” said Bryan Taute, executive vice president at CBRE Group. Inc in a statement. “The property is approximately 90% full and we have leased 200,000 square feet in new deals and renewals since March this year. We look forward to not only enhancing the experience for tenants and visitors but elevating it by offering amenities essential to a prosperous business life — one that is focused on bringing together spaces, services, people and technology to deliver meaningful 'third place' experiences.”