Kinella Capital Restarts One Camelback Conversion In Uptown Phoenix

Date: December 2025

Source: inbusinessPHX.com

After nearly five years in limbo and millions of dollars tied up in a stalled redevelopment, One Camelback has a new owner and a new trajectory. Kinella Capital LLC, led by Founder and CEO TK Stratton, has taken over the prominent office to residential conversion at Central Avenue and Camelback Road and begun stabilizing the property and steering it back toward completion.

Once an object of curiosity for commuters and neighbors, the building’s soaring 150 foot atrium, floor to ceiling glass, and sweeping eleventh floor views were seen mostly by architects, lenders, and insiders. As Dale Phillips, Founder of Stellar Residential, observed, most critics “never stepped foot inside,” making a true reset feel overdue.

From Stalled Asset To Rescued Landmark

Kinella Capital acquired the property from Acore Capital after a perfect storm of broader market conditions created a temporary pause in progress. Despite the challenges, the structure itself remained fundamentally strong. With Post Road Group providing debt financing, the new ownership and capital stack have positioned One Camelback for a full restart.

Originally launched in 2018 with plans for 163 apartments and significant capital already invested, the redevelopment ran into inflation pressures, pandemic delays, and contractor disputes. Construction slowed at around 80 percent completion before Acore Capital took the property back through a trustee sale. Kinella stepped in to reset the project and provide a clear path forward.

“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, from design and construction to engineering, capital, and operations.”

Stratton emphasized that the problem was never the building’s design. The core challenge was timing in the capital markets. Rising interest rates made the final stretch uneconomical for the prior owner. As he put it, “It did not need a reinvention. It needed a rescue.”

Builder Operator Model In Action

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 direct control of construction rather than inherit a long list of competing consultants and fragmented scopes.

“One Camelback needed a buyer who could assess everything from fire life safety systems to structural tie ins,” Stratton said. “You cannot 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.”

Phillips added, “He is the guy you call when everybody else walks away. If a building is too far gone, TK is usually the only one who says, ‘Actually, we can fix this.’”

Key Actions By Kinella Capital

• Assuming full ownership of the long stalled project and halting further decline.
• Deploying a builder operator model to untangle years of permitting, construction, and financial complications.
• Taking direct control of remaining construction and engineering work to ensure unified oversight.
• Restoring operational and financial stability at one of Uptown Phoenix’s most visible corners.
• Leveraging integrated KB 1 contracting and A 1 engineering capabilities to correct outstanding issues and accelerate completion.
• Repositioning One Camelback as a leading case study in how distressed adaptive reuse towers can be successfully rescued and completed.

This alignment allowed a period of detailed construction forensics, with room by room assessments of electrical, mechanical, and structural systems. By eliminating scope creep, resolving design questions, and finalizing the amenity program, Kinella established a realistic and executable path forward.

Key Players Behind The Revival

• Acore Capital – Prior owner and seller after market conditions paused the redevelopment.
• Post Road Group – Acquisition lender providing the debt financing for Kinella Capital.
• Cushman & Wakefield – Steven Nicoluzakis and David Fogler advising on the acquisition.
• Cushman & Wakefield Capital Markets – David Karson, Mitch Rothstein, and Megan Schmitt structuring and securing the project’s financing.
• Stellar Residential – Led by Dale Phillips, serving as property manager and strategic advisor, with experience on the project under the previous owner.
• City of Phoenix Building Department – Collaborating with Kinella to reinstate permits and streamline approvals.

Reimagining The Resident Experience

The refreshed vision leans into the site’s core strengths: walkability, transit access, nearby restaurants and retail, and expansive views. Plans call for modern finishes, floor to ceiling glass, a rooftop pool, wellness and fitness amenities, secured parking, and technology forward conveniences.

The building’s fundamentals were always strong large floor plates, dramatic glass, and wide views. They simply needed a team with the discipline and alignment to complete what was already working. For Uptown Phoenix, Kinella’s acquisition ends years of speculation around a partially finished landmark and adds high quality housing in a submarket where demand remains strong.

“One Camelback is not just another building,” Phillips said. “It is a landmark. The views, the glass, the location they are 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.”

Stratton noted that One Camelback will help shape Kinella’s future strategy. “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 is not optional anymore.”

“I have restored and renovated hundreds of properties, but this one matters,” he said. “It matters to Phoenix and it matters to our team. It represents resilience, discipline and the belief that difficult projects are worth doing.”

Kinella is now finalizing schedules, completing remaining work, and preparing the tower for phased occupancy. Stratton and Phillips expect visible progress over the next 12 months.

Media Coverage

Read the full article on inbusinessPHX.com

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For more information about One Camelback or Kinella Capital’s builder operator platform, please contact our team.