A Maricopa County judge issued a final judgment that the developer of a long-stalled downtown Phoenix apartment tower "materially breached its contract" with one of the Valley's most prolific general contractors.
Maricopa County Superior Court Judge John L. Blanchard found in the Nov. 2 ruling that XSC Phoenix Investment 2.0 LLC, an entity affiliated with Chicago-based developer The X Co., violated the Arizona Prompt Payment Act and breached its contract with general contractor Clayco Inc. to build the second phase of the X Phoenix apartment complex on the corner of West Monroe and 3rd Avenue, which stopped mid-construction in September 2023.
Chicago-based Clayco Inc. and other subcontractors tied to the project are now owed $40.3 million in principal and another $16.3 million in accrued interest through June 30, plus accruing interest at the rate of 1.5% per month thereafter until paid, according to the Nov. 2 judgment.
