Another hurdle has been cleared for the construction of what is going to be the tallest building in Arizona.
Set to go up in downtown Phoenix at the intersection of Second Avenue and Van Buren Street, what is being called the Astra building will see fifty stories rising into the sky.
Last month the $535 million project, which will encompass nearly 700 apartment units and 229 luxury hotel rooms, won the approval of the Phoenix City Council.
While the council vote was obviously crucial to the eventual construction of a structure that will also house 185,000 square feet of office space, a document agreed to by the city and developer Aspirant Development is seen as the final needed ingredient to get the project off the ground.
The Government Property Lease Excise Tax agreement will see Aspirant conveying title of the property to the city once the company is issued a certificate of occupancy. The city will then lease the property back to Aspirant for a period of time not to exceed eight years.
During that time period, Aspirant will pay an annual rental payment starting out at $25,000 annually for the first four years and topping out at $75,000 for the final four years. That revenue will then be deposited directly into the city’s Downtown Community Reinvestment Fund where it can be used for affordable housing endeavors.
Aspirant purchased the two-acre site for around $9.2 million more than two years ago.
Upon completion, the Astra will surpass in height the Chase Tower building at 201 N. Central Avenue, which tops out at 40 stories and was built in 1972.
Some observers have speculated that the Astra could usher in a new era of high-rise construction in Phoenix, equal to the 1970s when the city additionally saw the construction of the 31-story U.S. Bank Center at 101 North 1st Avenue; and the 27-story Wells Fargo Plaza, now known as 101 West Washington, which was completed in late 1971.
In 1981 the city established the creation of a high-rise incentive district in Phoenix’s central corridor which is designed to encourage the construction of commercial and residential developments generally taller than 12 floors.
By Garry Boulard
