Unfinished Tempe towers sold for $30 million

TEMPE, AZ - The unfinished Tempe Centerpoint towers, sitting idle for months stuck in bankruptcy, finally have a new owner on the line.

Zaremba Group, a development company based in Cleveland and with an office in Scottsdale, signed a sale agreement today to buy the property for $30 million cash.

Kent Chantung, Zaremba Group Director of Development, told ABC15, “We plan on finishing the project as originally contemplated but we will operate them as luxury rental units” rather than as condominium units for sale.

Chantung said the apartments will be marketed toward Arizona State University students and young urban professionals.

According to Mark Winkleman of ML Manager, which is overseeing the property’s bankruptcy, the deal should close no later than October 15.

“It’s a very big deal for us to sell this asset. It’s also a big deal for the City of Tempe to have this finished and have people living in those towers,” Winkelman said. “Our investors will still suffer a significant loss.”

Chantung said he expects the first tower to be open to renters by March 2011, with the second tower open by July 2011. The retail space in the project should also be completed by March 2011.