Phoenix City Council approved a development agreement for the Security Building redevelopment project during its Aug. 26 meeting.
CivicGroup and Sunflower Development Group have partnered to create Security Improvement Co., which is leading the redevelopment.
The Security Building was initially constructed in 1928 at the SWC of Van Buren Street and Central Avenue. Developers plan on turning it into a 255-room hotel via a $135M renovation.
The hotel will consist of various amenities, such as a 5.5KSF ballroom. There will be an additional 9.5KSF of meeting space. The hotel will feature five food and beverage outlets.
The design is intended to restore historical features that are currently hidden beneath drywall and carpet. Maricopa County currently owns the building and is using it for office space. The County is in the midst of moving to other buildings to make way for the redevelopment.
The development agreement will allow the developers to be reimbursed for public improvements. This includes sidewalk improvements, landscaping and shade structures. Additionally, they will be reimbursed up to $10M for the Historic Preservation Façade Easement. The agreement specifies that developers will own the building for at least 20 years.
Developers are currently working on attracting hospitality brands. In addition, Security Improvement Co. is pursuing capital partners. Work is anticipated to begin in Q1 2027 and be completed by Q4 2028. (Source: Phoenix Business Journal)
