New Kid On The Block: Block 23 Has Arrived

Publication | Commercial Executive, Issue 1, 2020

The most coveted address in the Valley may very well be 101 E. Washington Street in Downtown Phoenix. “Block 23 is a conglomeration of 230,000 square feet of creative office space, 332 luxury urban apartments, and 14,000 square feet of additional retail and restaurant space,” says Todd Noel, senior executive vice president, Colliers International. “The 67,000 square-foot multilevel Fry’s Signature Marketplace onsite is Downtown’s only full-scale grocery store.” The vision of RED Development − the Phoenix-based full-service real estate firm responsible for landmark projects including CityScape, Aspen Place at the Sawmill and Camelback Colonnade – is for Block 23 to bring a transformative presence to the urban core.

“The project was developed in three phases,” says Mike Ebert, managing partner at RED. “As each phase opens, we look forward to seeing the impact this destination will have on the community. We aim to continue to attract the best local, regional and national tenants to improve the daily lives of those who live, work and play within this vibrant city.”

Block 23 Situated in the thriving Downtown hub just blocks away from Chase Field and Talking Stick Arena, Block 23’s design and offerings command attention and laudations. “Block 23 is ‘ground zero’ as it relates to its location in Downtown Phoenix,” says Ryan Timpani, executive vice president, Colliers International. “You do not get more of an elevated urban environment, because of its immediate proximity to a variety of restaurants and a multitude of hotels and multifamily towers nearby. Its adjacency to CityScape is particularly convenient as the mixed-use project includes an abundance of restaurants that cater to breakfast, lunch, dinner and late-night activities.”

Approach Block 23 represents the best of modern mixed-use design with its proximity and access to retail, office and multifamily. “The initial phase of Block 23 is the area’s first long-awaited grocery store by Fry’s Food Store, which opened to the public last October,” says Ebert. The second phase is The Ryan, a 332-residence apartment community by StreetLights Residential, which began pre-leasing in November with the first move-ins expected in March 2020. The Ryan will offer studio, one- and two-bedroom residences ranging in size from 576 to 1,649 square feet. The final phase of Block 23 is the nine-story office tower with ground-floor retail and restaurant space that will begin to open later this year and has signed leases from WeWork, Ernst & Young U.S. LLP (EY) and Blanco Tacos + Tequila.”

Grocery While a grocery store may not seem to be the sexiest of commercial real estate offerings, in the case of Downtown and Fry’s, the site is certainly turning a lot of heads. “The biggest missing component to downtown has been a grocery store,” says Jeff Moloznik, vice president, RED Development. “The most notable addition to the Block 23 project is the 67,000 square-foot Fry’s Food Store, in the heart of this onetime food desert.” The new store, which opened in October of last year, unveiled innovative design and debuted new technology. “Customers can expect a unique shopping experience encompassing all the amenities of a typical Fry’s, including online ordering and pick-up, made-to-order sushi, convenient deli and bakery selections, a pharmacy that will provide a full range of health-care services and extraordinary customer service,” says Barry Shannahan, executive vice president, acquisitions and development, for RED. “Fry’s executives predict that the opening of the store will have a butterfly effect on the entire community, not only giving Downtown residents the convenience of walking or using public transit to get groceries, but also giving residents farther out more reasons to come downtown in the first place.”

RED Development Acquisitions, development, leasing and asset management comprise the competencies and capabilities of the RED Development team. The company’s footprint of projects extends across eleven states: Arizona, California, Colorado, Florida, Indiana, Missouri, Nebraska, Nevada, Texas, Utah and Wisconsin. With 12 sites in the Valley, RED Development’s commitment to Greater Phoenix is certainly apparent. “Block 23 is the latest installment of a commitment first made by RED in 2010 to redefine the possibilities of what downtown Phoenix could and would become,” says Bob Mulhern, senior managing director, Colliers International. “Our team worked tirelessly, sometimes arriving at 4 a.m. for daily project meetings with our building GC and TI contractors to get everyone involved so we can meet the tenant’s commencement schedules,” says Ryan O’Connor, director of leasing, RED Development. “It took tremendous vision and risk to advance the development of CityScape and Block 23, and now their combined impact and influence have become the dominant force powering downtown Phoenix as a captivating destination for so many outstanding organizations and residents,” says Mulhern.

“Phoenix is the fastest-growing city in the U.S., and Downtown Phoenix is on fire, continuing to thrive on the ever-changing demographics of the workplace. Tenants today value amenities, availability of parking, community and philanthropic efforts. RED Development understands this and shaped Block 23 to meet this demand. Recently, the CEO and COO of a Midwestern fintech company were looking at Downtown Phoenix as a site for their first western office. They said that they were walking around RED’s CityScape and Block 23 at lunchtime and looked at the crowds heading to restaurants, sitting in patios, and said, ‘This is the place we have to be.’ They now have their largest satellite office in Downtown Phoenix. “ - Chris Mackay, City of Phoenix Co”mmunity and Economic Development Director

Features Creativity is on full display at Block 23 with a plethora of options and intriguing elements. “The building boasts the largest floor plates in Downtown Phoenix with exceptional efficiency that employers are drawn to. Floor-to-ceiling glass, and high ceilings, lead to the office environment that caters to today’s corporations as they strive to attract top talent,” says Timpani. “Block 23 is one of the only buildings in the Greater Phoenix MSA that has an elevated amenity deck, and it acts as a true differentiator for tenants searching for communal space for their employees. An employee’s ability to walk their dog or challenge co-workers to a game of pickleball on their lunch break reinforces the live- workplay concept within the project.” Another unique feature, “Block 23 offers unparalleled branding opportunities through rooftop signage and one of Arizona’s largest LED media boards,” says Vanessa Williams, director, Business Development and Strategic Resources, Colliers International SW Region. “It is perfectly positioned on the southeast corner of Block 23, facing Talking Stick Arena. This towering digital billboard is 46 feet tall by 90 feet wide and spans three levels of Block 23’s parking garage.”

Economic Impact Block 23 is poised to deliver robust commercial activity, which will drive significant economic expansion. “As the new core of downtown, restaurants such as Sam Fox’s Blanco Tacos + Tequila are headed to the block, which will increase foot traffic and boost tourism in downtown Phoenix,” says Ebert. “When you increase the number of visitors, you create a demand for more jobs. We will be generating 1,300 new permanent jobs and an estimated $234 million in annual economic output. The mixed-use project has the potential to generate $76 million in net additional sales taxes to the city of Phoenix over 50 years.”

“This mixed-use development is situated in the heart of downtown Phoenix and is a perfect complement to the well-established Cityscape community. The recent opening of Fry’s offers our Downtown residents and workers something they’ve never had before—a full- service grocery store within walking distance. With the revitalization of Downtown Phoenix, Block 23 is rising to meet the demand for a one-stop live-work-play ” environment.” – Mayor Kate Gallego, City of Phoenix

“Block 23 is the latest installment of a commitment first made by RED in 2010 to redefine the possibilities of what downtown Phoenix could and would become. It took tremendous vision and risk to advance the development of CityScape and Block 23, and now their combined impact and influence have become the dominant force powering downtown Phoenix as a captivating destination for so many outstanding organizations and residents.” - Bob Mulhern, Senior Managing Director, Colliers International"

Live-Work-Play Whether a resident of The Ryan, an employee working in the creative office environment or a patron looking to enjoy a night out, Block 23 offers something for everyone. “Downtown Phoenix provides a superior live-work- play environment over any competing submarket in the Greater Phoenix area,” says Noel. “The existing housing inventory plus another 5,000 units coming online coupled with the available and everincreasing retail amenities complement the employment centers to form a true ‘24/7’ experience.”

By the Numbers Block 23 sits in the heart of a thriving and dynamic Downtown. The numbers tell the story: 149 annual sporting events, two cinemas, bowling alley, comedy club, 10 museums, six art galleries and six performance venues. Also in the area are five finedining locations, 40 bars, 196 restaurants, 25 coffee houses and 23 breakfast establishments. Over 300 high-tech companies also operate in the market.

Future This world-class mixed-use development impresses with its grandeur, imaginative offerings, stunning design and tremendous functionality. As the metro continues to flourish, Block 23 is already assuming an iconic status. “Now that the revitalization of Downtown is in overdrive, we all have great stories to tell, and Block 23 is a part of it,” says Ebert.

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