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Valley National Bank awaits $40M Historic Future

By Eric Jay Toll for Arizona Builder’s Exchange

Photo Credit: CSM Lodging

Photo Credit: CSM Lodging

Downtown Phoenix has been getting more adaptive reuse projects over the past few months. Now CSM Lodging, a Minneapolis-based hospitality developer with a long-track record of historic renovations, has unveiled its plans for a $40M restoration and adaptive reuse of the Valley National Bank building (formerly known as Hotel Monroe), Central Avenue and Monroe Street. CSM bought the last of the Mortgage Ltd. properties for $7.9M from receiver ML Manager in December, 2013.

CSM plans to adapt the 13-story former office building into a 165 room premium hotel, likely carrying a Hilton flag. The renovation includes full restoration of the historic art deco exterior of the 1932 bank building. The interior will maintain the majesty of the Valley Bank’s main office as a lobby and gathering place. Guest rooms and facilities will be built and outfitted to meet business traveler comfort and technological expectations.

CSM plans 8KSF in retail space on street level, 5KSF of meeting space, a business center and 1.3KSF fitness center. Parking will be onsite. The building will be registering guests by the time the Super Bowl comes to town in 2015.

Valley National Bank is the latest major restoration and modernization under way downtown. Four blocks south, the Luhrs block, with two historic office buildings, is being restored into Luhrs City Center, an office, retail and residential mix by Hansji Urban. The company is also proposing a new historic-complementary $80M hotel carrying two Marriott brands—Residence Inn and Courtyard. (AZBEX, Jan. 10, Phoenix Business Journal, Jan. 14)

CSM has an established record of converting historic buildings. The Valley National Bank building was added to the National Register of Historic Places in 1993. Its showcase is the Depot Renaissance Minneapolis Hotel, a converted rail road passenger depot on the Mississippi River. That hotel carries both Marriott Renaissance and Residence Inn brands. The company operates 39 hotels across the U.S. and also develops commercial and apartment complexes.