A Phoenix Landmark Stuck in Limbo Gets a Lifeline: Kinella Capital, LLC Takes Control of One Camelback

PHOENIX, Dec. 29, 2025 /PRNewswire/ -- Kinella Capital, LLC led by Founder and CEO TK Stratton, has acquired One Camelback, a high-profile office-to-residential conversion located at the intersection of Central Avenue and Camelback Road in Phoenix, Arizona. The acquisition marks a new phase for the development, which had remained largely dormant for nearly five years following delays and financial challenges.

The property, originally redeveloped with plans for 163 residential units, faced a range of disruptions after its 2018 launch, including inflation-related cost increases, pandemic-related delays, and contractor disputes. Construction halted at approximately 80 percent completion. Ownership was transferred to Acore Capital through a trustee sale before Kinella Capital acquired the asset.

Kinella Capital has begun stabilization efforts to resume and complete the project. Debt financing for the acquisition and redevelopment has been provided by Post Road Group.

Despite prolonged delays, the structure remains architecturally intact, featuring a 150-foot atrium, floor-to-ceiling glass, and views from the eleventh floor. Dale Phillips, Founder of Stellar Residential, which is advising on development strategy and lease-up, noted that public commentary often came without firsthand experience of the building's interior.

The resumption of work at One Camelback signals a return to activity at one of Phoenix's more visible urban redevelopment sites, with Kinella Capital overseeing efforts to complete the conversion.

"When we evaluated One Camelback, we looked past the stalled construction and the history tied to it," Stratton said. "We saw the building, the intersection and the neighborhood. This corner is a gateway to Uptown Phoenix. It needed a team who could take ownership of every detail design, construction, engineering, capital, operations and get it across the finish line."

He added that the core issue was never the building itself. The design was strong; the capital markets weren't. Rising interest rates made the final stretch uneconomical for the last owner. "It didn't need a reinvention. It needed a rescue," he said.

Kinella's early move was to impose order. The firm's builder-operator model backed by KB-1 contracting and A-1 engineering licenses allowed it to take control of construction rather than inherit a lineup of competing consultants.

"One Camelback needed a buyer who could assess everything from fire-life-safety systems to structural tie-ins," Stratton said. "You can't subcontract your way out of a distressed conversion. You need full alignment between owner, builder and operator. A stalled high-rise terrifies lenders. Uncertainty kills momentum. Kinella's team knows how to eliminate that uncertainty." "He's the guy you call when everybody else walks away," Phillips added about Stratton and his team. "If a building is too far gone, TK is usually the only one who says, 'Actually, we can fix this'."

Key actions taken by Kinella Capital, LLC include:

• Assuming full ownership of the long-stalled project and immediately halting further decline.
• Deploying its builder-operator model to unravel years of permitting, construction and financial complications.
• Taking direct control of all remaining construction and engineering work, ensuring unified oversight and eliminating conflicting consultants.
• Restoring operational and financial stability to one of Uptown Phoenix's most visible and strategically located corners.
• Leveraging integrated KB-1 contracting and A-1 engineering capabilities to correct outstanding issues, resolve technical challenges and accelerate the final phases of the build.
• Repositioning One Camelback as a leading case study in how distressed adaptive-reuse towers can be successfully rescued, reset and completed.

That alignment allowed a period of construction forensics a room-by-room assessment of electrical, mechanical and structural systems. By eliminating scope creep, settling design questions and finalizing the amenity program, Kinella charted a realistic path forward.

Key Players Behind the One Camelback Revival:

• Acore Capital – Current owner and seller of One Camelback.
• Post Road Group – Acquisition lender providing the debt financing for Kinella Capital.
• Cushman & Wakefield (Acquisition Advisors) – Steve Nicoluzakis and David Fogler negotiated and facilitated the sale on behalf of Kinella Capital.
• Cushman & Wakefield Capital Markets (Debt Advisors) – David Karson, Mitch Rothstein and Megan Schmitt structured and secured the project's debt financing.
• Stellar Residential – Led by Dale Phillips, serving as property manager and strategic advisor; previously involved with the development under the former owner.
• City of Phoenix Building Department – Working closely with Kinella to reinstate permits and streamline approvals needed to complete the project.

Reimagining the Resident Experience

The refreshed vision leans into everything the site already offered: walkability, transit access, restaurants, retail and views. Plans include modern finishes, floor-to-ceiling glass, a rooftop pool, wellness and fitness amenities, secured parking and technology-forward conveniences. Stratton said "Kinella's experience restoring hundreds of properties helped bring clarity to a once-drifting project."

"The building's bones were always exceptional large floorplates, sweeping views, dramatic glass, they simply needed a team with the discipline to finish what was already working. For Uptown Phoenix, the acquisition ends years of speculation around a partially finished landmark. Its completion will add high-quality housing in a submarket where demand remains strong."

"One Camelback isn't just another building," Phillips said. "It's a landmark. The views, the glass, the location they're irreplaceable. Under Kinella's leadership, the building finally has the operator-builder it needed. The amenities, finishes and walkability line up exactly with what renters want." He added that the rooftop pool, wellness spaces and skyline views will set the tower apart. "Uptown renters want convenience, sophistication and a sense of place. This building hits all three."

Stratton said One Camelback will influence Kinella's future direction. "We plan to take on more adaptive reuse projects. When executed with discipline, office-to-residential conversions create value for investors and stability for communities. The builder-operator model isn't optional anymore." On a personal note, he said the project embodies the firm's ethos. "I've restored and renovated hundreds of properties, but this one matters. It matters to Phoenix and it matters to our team. It represents resilience, discipline and the belief that difficult projects are worth doing." He added that the timing is right. "Phoenix is full of opportunity. With the right team and structure, stalled or distressed projects can become some of the best deals in the market."

Kinella will now finalize schedules, complete remaining work and prepare the tower for phased occupancy. Stratton and Phillips expect visible progress over the next 12 months.

For more information, readers can visit onecamelback.com.

About Kinella Capital, LLC

Kinella Capital, LLC is a boutique investment real estate firm specializing in commercial development, value-add renovations, and adaptive reuse. As a fully integrated builder-operator, the firm holds KB-1 general contracting and A-1 engineering licenses, enabling in-house construction, technical oversight, and accelerated project execution. Kinella focuses on high-impact properties across the Southwest and Mountain West. Readers can learn more at kinellacapital.com. Interview requests can be sent to Holly Morgan with The PR Insiders ([email protected]). 

About Stellar Residential

Stellar Residential is a Phoenix-based real estate development, consulting and asset-management firm with expertise in multifamily, adaptive reuse and commercial repositioning. The firm provides development strategy, operational planning and lease-up support for residential and mixed-use projects across the region. Readers can learn more at stellarresidential.com.

Contact:
Holly Morgan
[email protected] 

Photo: https://mma.prnewswire.com/media/2852337/Kinella_Capital_LLC_One_Camelback.jpg

SOURCE Kinella Capital, LLC