Mesa staff recommend buying two downtown properties from Maricopa County Community College District for $4.73 million

City staff told the Mesa City Council on Oct. 9 that they are recommending the city buy two properties from the Maricopa County Community College District (MCCD) in downtown Mesa for a combined $4,730,000.

The recommendation covers a 33,000-square-foot condominium at 145 North Centennial (the fourth-floor unit above a city-owned garage) and a two-story building at 165 North Centennial. Lisa Davis, the city’s real estate manager, told the council that the fourth-floor condominium appraised at $4,080,000 and that 165 North Centennial appraised at $650,000. The city’s presentation indicated the two-story building has about $2.7 million in deferred maintenance and staff expects it would be demolished and converted to low-water landscaping or held for future redevelopment.

Why it matters: The properties sit adjacent to Mesa’s convention center, the Delta Hotel and a parking garage the city already owns. City staff described the purchase as an opportunity to control redevelopment around the Convention Center and to provide space for city employees while the city pursues longer-term facility plans.

Staff and funding details Mark Alstrom, assistant city engineer, introduced the item and said staff toured the properties and submitted photographs to the council. Davis and other staff explained that Unit 3 — air rights above the garage — amounts to roughly 18,000 square feet of potential future building area. Assistant director Sam Schultz told the council the purchase funds are available in general capital and come from prior land-sale revenues (sales of 127 West Pepper and 5950 East Adobe) plus interest on those reserves.

Timing and next steps Planning staff told council members that, if the council approves the purchase on Oct. 20, the city would go into escrow immediately and take a 90-day feasibility period to do environmental testing and ALTA surveys; staff projected a closing in January or February 2026 if due diligence is successful. Staff also said they will evaluate opportunities to salvage and reuse recently replaced equipment — for example, air-conditioning units the seller reported had been replaced.

Tenant and operational notes The presentation said some tenants have vacated; the Veterans Coalition remains in the building but was given extra time to vacate through November. Staff said the city has operational needs for office space that could be met by the fourth-floor condominium while longer-term redevelopment planning continues for properties such as 55 North Center Building and other downtown initiatives connected to ASU and the Mesa Arts Center.

What council members asked Council members pressed staff for clarifications on appraisals, the parcel size (staff said the 165 site is just over 20,000 square feet, less than a half-acre) and whether the appraised value for the two-story building implicitly reflected the value of the lot once the structure is demolished. Staff said they did not separately appraise the land-only value but could follow up with the appraiser. Council members also asked about tenant relocation assistance and whether salvage of newer mechanical equipment might be feasible; staff said they would explore salvage options during feasibility analysis.

No formal council vote occurred at the Oct. 9 study session. The purchase was scheduled for council action on Oct. 20, after which staff would begin escrow and due-diligence if council approves.