Foundation 8 Secures $44.5M Loan for Phoenix Office Repositioning
Event summary
- Foundation 8 closed a $44.5M loan from Hilco Global for 333 N Central Avenue's office component in Phoenix.
- The 246,490 sq ft Class AA office space is being repositioned from a single-tenant to multi-tenant configuration.
- Hilco Global structured the financing to refinance acquisition debt and fund leasing/improvement costs.
- Foundation 8 acquired the property in December 2025 and engaged Newmark for leasing efforts.
- The property features expansive floor plates, premium amenities, and prime downtown Phoenix location.
The big picture
This transaction reflects the growing trend of repositioning single-tenant office buildings into more flexible multi-tenant configurations, particularly in urban cores experiencing revitalization. The $44.5M financing demonstrates investor confidence in Phoenix's commercial real estate market, despite broader office sector challenges. Foundation 8's strategy aligns with the increasing demand for high-quality, amenity-rich office environments in downtown locations.
What we're watching
- Leasing Velocity
- How quickly Foundation 8 can secure multiple tenants for the newly repositioned space.
- Value Creation
- Whether the amenity enhancements and multi-tenant strategy will significantly increase property value.
- Market Demand
- The pace at which downtown Phoenix's office market absorbs high-quality multi-tenant space.
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