Kinella Takes the Reins of Phoenix Conversion Project
The development paused construction in 2023 after a loan default.
Kinella Capital has acquired One Camelback, a 163-unit commercial-to-multifamily conversion project in Phoenix that had been stuck in development limbo for several years. Aiming to turn a former bank into a luxury community, the firm has also secured financing from Post Road Group to complete construction.
Cushman & Wakefield arranged the sale and secured the financing. A sale price was not disclosed.
The redevelopment of One Camelback, which began in 2019, had been paused since 2023, when the project was 85 percent complete. Kinella now expects construction to conclude by the end of 2026.
The project is taking shape at the site of the former BMO Harris Bank tower, according to Phoenix Business Journal, which reported in 2023 that the project’s original developer, an affiliate of Sagamore Capital, had defaulted on its $71.3 million loan from Delphi Financial Group.
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Following the foreclosure, the project went to auction in November 2023, where Delphi bought the property for about $44 million, according to Yahoo! Finance.
A closer look at One Camelback
Once completed, One Camelback will also include 10,725 square feet of ground-floor retail space and a five-level underground parking garage. Units, which average 980 square feet, will contain floor-to-ceiling windows, 10.5- to 11-foot ceilings, exposed concrete finishes, quartz countertops, walk-in closets, in-unit laundry and smart home technology.
Community amenities will include a fitness center, resident lounge, dog park, pet spa, and a rooftop terrace with a pool and private cabanas. Other amenities include coworking spaces and package lockers with cold storage.
Located at 1 E. Camelback Road, the property is within walking distance of the Camelback Light Rail Station and adjacent to Uptown Plaza, which contains several retail and dining outlets. Downtown Phoenix is about 14 miles south, while Phoenix Sky Harbor International Airport is some 7.5 miles away.
David Karson, Megan Schmitt and Mitch Rothstein of Cushman & Wakefield’s Equity, Debt & Structured Finance team arranged the project’s new financing, while Steven Nicoluzakis and David Fogler of the firm’s Multifamily Investment Sales group represented Kinella in the sale.
Strong sales activity in Phoenix
Greater Phoenix recorded $3.7 billion in multifamily property sales year-to-date as of October, according to Yardi Matrix, and the metro ranked first nationally for U.S. multifamily transaction volume in the first half of 2025.
In November, ColRich paid $77 million for Camden Copper Square Apartments, a 332-unit community in Phoenix that had previously been owned by Camden Property Trust. Earlier the same month, Stockdale Capital Partners bought The Quincy, a 266-unit midrise asset in Scottsdale, Ariz. from Embrey, which sold the asset in an all-cash deal.
