PHOENIX — Provo, Utah-based PEG Cos. and Dallas-based A.G. Hill Partners have acquired the Luhrs Building, a 10-story historic office property located at 11 W. Jefferson St. in downtown Phoenix. Lincoln Property Co. (LPC) sold the asset for $14 million.
PEG plans to renovate 92,000 square feet of the 108,000-square-foot Luhrs Building into an upscale hotel. The redevelopment will convert floors one through nine into hotel rooms, while Hagens Berman Law Firm will continue to occupy the top floor. Additionally, Bitter & Twisted Cocktail Parlour will remain open and occupy ground-floor space during the construction.
LPC will maintain ownership of the balance of Luhrs City Center, which includes the 14-story Luhrs Tower office building, an adjacent six-story parking garage and 15,995 square feet of fully renovated, ground-floor retail space called The Arcade that is occupied by La Madeline, Serafina Coffee Bar and Monroe’s Chicken.
Bill Murney of Hospitality Real Estate Counselors brokered the sale transaction. A.G. Hill Partners serves as PEG’s main investment partner for the conversion.