One Camelback Reborn: How a New Owner Will Finish Phoenix's Stalled Tower

PHOENIX, AZ – December 29, 2025 – For nearly five years, the One Camelback tower has stood as a silent, skeletal monument to ambition thwarted. Located at the vital intersection of Central Avenue and Camelback Road, the high-profile office-to-residential conversion sat dormant at 80 percent completion, a ghost tower haunting one of Phoenix's most prominent corners. Now, a lifeline has been thrown to the landmark, as boutique investment firm Kinella Capital, LLC has acquired the property, vowing to break the gridlock and finally deliver the 163 luxury residences the city was promised.

The acquisition, led by Kinella Capital Founder and CEO TK Stratton, marks a decisive turning point for a project that had become a case study in development peril. With stabilization efforts already underway and debt financing secured from Post Road Group, the move signals the end of years of public speculation and the beginning of a complex rescue operation.

A Landmark's Troubled Past

The journey of One Camelback from a 1980s-era office building to a stalled residential tower was a drama of market volatility and operational misfortune. The original developer, an affiliate of Sagamore Capital, launched the ambitious conversion in 2018. The plan was to transform the nearly vacant 11-story building into luxury apartments, capitalizing on the prime Uptown location. However, the project soon fell victim to a perfect storm of disruptions.

Soaring inflation drove construction costs skyward, while the global pandemic introduced crippling supply chain delays. The situation was compounded by contractor disputes, including the bankruptcy of the original general contractor, Katerra, which left a trail of nearly $1.5 million in mechanic's liens from subcontractors. By mid-2023, the original developer had defaulted on a $71.3 million loan, triggering a receivership and a series of ownership transfers through trustee sales, with the asset eventually landing with Acore Capital before Kinella's acquisition.

Construction ground to a halt, leaving the building's stunning 150-foot atrium and floor-to-ceiling glass to gather dust. The project became a cautionary tale for the complexities of adaptive reuse, where unforeseen structural challenges and volatile capital markets can derail even the most promising ventures.

"When we evaluated One Camelback, we looked past the stalled construction and the history tied to it," said TK Stratton. "We saw the building, the intersection and the neighborhood. This corner is a gateway to Uptown Phoenix. It needed a team who could take ownership of every detail."

The Builder-Operator Blueprint

Kinella Capital's strategy for reviving One Camelback hinges on a specialized 'builder-operator' model that sets it apart from traditional developers. The firm holds both KB-1 general contracting and A-1 engineering licenses, allowing it to take direct control of construction and engineering rather than inheriting a fractured network of consultants. This integrated approach was critical to securing the confidence of its lender, Post Road Group, in a project that had terrified previous financiers.

"A stalled high-rise terrifies lenders. Uncertainty kills momentum," Stratton explained. "Kinella's team knows how to eliminate that uncertainty." He asserts that the project's core issue was never its design, but the capital structure, which became uneconomical amid rising interest rates. "It didn't need a reinvention. It needed a rescue."

Stratton's background is not in typical real estate development but in the high-stakes world of disaster restoration, renovating thousands of properties damaged by fire, water, and structural failure. This experience in navigating complex, distressed assets informs Kinella's methodology. Upon acquisition, the team immediately began what it calls "construction forensics"—a meticulous, room-by-room assessment of the building's electrical, mechanical, and structural systems to untangle years of complications.

Dale Phillips, Founder of Stellar Residential, which is advising on the project and was involved under the previous owner, highlighted the unique capability Stratton brings. "He's the guy you call when everybody else walks away," Phillips noted. "If a building is too far gone, TK is usually the only one who says, 'Actually, we can fix this'."

By taking direct command of all remaining work, Kinella aims to eliminate conflicting consultants, resolve outstanding permitting issues with the City of Phoenix Building Department, and accelerate the final phases of the build. This hands-on model is what the firm believes is necessary to succeed where others failed.

Revitalizing a Prime Phoenix Corner

The completion of One Camelback is poised to inject new life and much-needed housing into the thriving Uptown Phoenix submarket. The location, once voted the "Hottest Intersection in Metro Phoenix" by the Urban Land Institute, offers unparalleled walkability to retail hubs like Uptown Plaza and direct access to the Valley Metro Rail, connecting residents to Midtown, Downtown, and Tempe.

The revived vision for the tower leans into these inherent strengths. The completed building will feature 163 residences with high-end finishes, sweeping skyline views through floor-to-ceiling glass, and a suite of modern amenities. Plans include a rooftop pool, state-of-the-art wellness and fitness facilities, secured parking, and smart-home technology. These features are designed to meet the robust demand for sophisticated urban living in a market with limited inventory.

"One Camelback isn't just another building," said Phillips. "It's a landmark. The views, the glass, the location—they're irreplaceable. Under Kinella's leadership, the building finally has the operator-builder it needed." He added that the amenity package aligns perfectly with the desires of today's renters. "Uptown renters want convenience, sophistication and a sense of place. This building hits all three."

A Case Study for Adaptive Reuse

Beyond the immediate impact on Phoenix, the rescue of One Camelback serves as a national case study for the growing trend of office-to-residential conversions. As remote work trends leave office buildings underutilized, developers and city planners increasingly see adaptive reuse as a solution to both commercial vacancies and housing shortages. However, such projects are notoriously complex and fraught with financial and logistical risks.

Kinella Capital intends for One Camelback to be a flagship example of how its integrated model can overcome these challenges. The firm plans to pursue more adaptive reuse projects, arguing that its builder-operator approach is no longer optional for this asset class.

"When executed with discipline, office-to-residential conversions create value for investors and stability for communities," Stratton stated. The project has personal significance for him and his team. "I've restored and renovated hundreds of properties, but this one matters. It matters to Phoenix and it matters to our team. It represents resilience, discipline and the belief that difficult projects are worth doing."

With schedules now being finalized, visible progress on the tower is expected over the next 12 months. For residents of Phoenix, the return of activity at Central and Camelback promises to finally transform a symbol of stagnation into a beacon of urban renewal and resilience.