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PHOENIX-Crown Pacific Properties LLC has replaced its joint venture partner, AEW Capital Management LP, in a $29.25-million deal that opens the door for a condo conversion of the 238-unit Landmark Tower.

Crown Pacific's new institutional partner's identity is being kept under wraps. The plan is to invest another $6 million into the 4750 N. Central Ave. property.

Crown and Boston-based AEW, via the opportunity fund AEW Partners IV LP, bought Landmark Tower in early 2004 for $15 million and pumped another $5 million into its renovation. The 17-story asset, formerly called Camelback Towers, reopened in November 2004. The 41-year-old structure sits on 2.8 acres.

"Our original intent back in 2004 was to renovate these as luxury apartments," comments John Ed Easley, president and CEO of Crown Pacific Properties. "But as we were doing the renovation into luxury apartments, we realized that the best use of this property would be condo conversions." The condo market, he points out, began to accelerate during the renovation process. "We felt as if the highest and best use for this was as a condo," he adds.

Easley tells GlobeSt.com that condo conversion is currently under way, with the official sales launch to begin Oct. 22. "The price of the units will start in the low $190,000s and go up to the high $400,000s," he says.

Landmark Tower was about 60% occupied at sale time. The high rise is a mix of studios and one- and two-bedroom apartments ranging from 451 sf to 1,389 sf.

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