Foundation 8 LLC has acquired the former Sheraton Crescent Hotel, a well-known landmark in North Phoenix originally developed in 1986 by the late Arizona developer Charles Keating. The property, long recognized for its grand ballrooms, resort amenities, and full-service hospitality experience, will undergo a transformative adaptive reuse redevelopment.
The Sheraton Crescent, a 342-room full-service hotel, has long been a destination for weddings, graduations, corporate gatherings, and social events for many Arizona residents. Known for its restaurants, bars, and resort-style amenities, the property has been a recognizable landmark along the I-17 corridor for nearly four decades.
The hotel closed in January 2023 following a significant water intrusion event that damaged the building’s electrical busway on the fifth floor, resulting in a complete power shutdown. The property subsequently entered receivership and has remained closed for nearly three years.
Foundation 8 LLC is a partnership between Gia Hospitality and Trillium Management. The partnership focuses on acquiring underperforming or distressed assets in high-growth areas and repositioning them through redevelopment and adaptive reuse.
After nearly three years of closure and receivership proceedings, Foundation 8 completed the acquisition following a year-long process working with the court-appointed receiver to resolve legal matters, clear title, and prepare the asset for sale.
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Adaptive Reuse Vision
The redevelopment plan will reposition the property—now to be known as The Crescent—into a residential community. According to Axios, Foundation 8 plans a roughly $120 million conversion of the Sheraton. Inside the existing hotel, the plan calls for about 258 studio, one- and two-bedroom apartments. Over time, the development team plans to construct three additional residential buildings on excess land within the property, ultimately more than doubling the number of residential units on the site.
The building’s concrete construction and structural condition make it well suited for adaptive reuse as residential housing.
Strategic Location
The Crescent sits directly across Interstate 17 from the $1 billion redevelopment of the former Metrocenter Mall into “The Metropolitan,” a major mixed-use district that will include housing, retail, and entertainment. The property is also adjacent to the new Valley Metro light rail extension, which terminates at The Metropolitan development.
In addition, The Crescent sits approximately 12 minutes from the rapidly expanding Taiwan Semiconductor Manufacturing Company (TSMC) campus, which represents one of the largest semiconductor manufacturing investments in U.S. history, with hundreds of billions of dollars in planned investment. This mega-project is expected to drive significant population and employment growth across the North Phoenix corridor.
Together, these developments are expected to create significant demand for housing along the I-17 corridor, positioning The Crescent redevelopment to benefit from the region’s long-term economic expansion.
Attainable Luxury Living
Foundation 8 plans to position the residential community within a market segment the team describes as “Attainable Luxury.”
The project will be positioned around the concept of Attainable Luxury—a housing category designed to deliver high-quality residential living with resort-style amenities at rental rates accessible to working professionals who are increasingly priced out of traditional luxury apartment developments.
The eight-story building features balconies and expansive views across the Valley in all directions. Residents will experience upgraded amenities designed to provide a first-class residential environment while maintaining attainable pricing.
The development team believes The Crescent will become a catalyst for the continued transformation of the I-17 corridor. With the growth of the semiconductor industry and the redevelopment of the Metrocenter area, the project is well positioned to deliver much-needed housing while revitalizing a landmark property that has long been part of the community.
