Foundation 8 and Hilco Global Real Estate Capital have completed a $44.5 million financing secured by the office component of 333 N Central Avenue, a mixed-use tower in Downtown Phoenix. The new loan is backed solely by the office and related commercial interests within the property, rather than the entire building.
The collateral for the loan consists of 246,490 square feet of Class AA office space located on the top eight floors of the tower. In addition to the upper-floor office component, the financing also covers 2,522 square feet of ground-floor retail space, rooftop amenity rights, and shared access to the building’s parking structure. These elements collectively represent the portion of the asset controlled by Foundation 8 that is being repositioned under its current business plan.
The middle portion of the tower is separately owned and operated as a 242-key Westin Hotel, which is not part of the financed collateral. This hotel component occupies distinct floors within the building, underscoring the property’s mixed-use profile and the capital structure separation between the hospitality and office portions.
Foundation 8 intends to use the financing to advance a repositioning strategy for the office space. The upper-floor offices historically served as a single-tenant corporate headquarters and were originally built for Freeport-McMoRan. Under the new business plan, Foundation 8 aims to convert this legacy headquarters layout into a signature multi-tenant office environment, targeting a broader range of occupiers rather than a single corporate user.
As part of that strategy, Foundation 8 has appointed Newmark to lead the leasing program for the office space. Newmark’s role will focus on marketing the Class AA space across the top eight floors, as well as the street-level retail component, to attract a diversified tenant roster consistent with the multi-tenant repositioning.
Hilco Global Real Estate Capital structured the transaction as a first mortgage loan. The $44.5 million in proceeds will refinance existing acquisition financing on the office and retail interests and provide additional capital for the execution of Foundation 8’s business plan. According to the parties, the financing will fund leasing costs, tenant improvements, capital improvements, and other expenses tied to stabilizing and upgrading the office portion of 333 N Central Avenue.
By replacing the prior acquisition loan and adding incremental capital for improvements and leasing, the new first mortgage is designed to support Foundation 8’s transition of the property from a single-tenant headquarters configuration into a modern multi-tenant office asset within Downtown Phoenix’s mixed-use core.
