Crescent to Build Scottsdale Quarter’s First M-F Project

By Amalia Otet, Associate Editor

Glimcher Realty Trust and Crescent Communities, a Charlotte, N.C.-based real estate investment, development and operating company, announced plans May 7 to team up on a 275-unit luxury apartment community in Scottsdale.

The property will be the first residential component of Scottsdale Quarter, the 28-acre mixed-use development located on the southeast corner of Scottsdale Road and Greenway-Hayden Loop. All told, Scottsdale Quarter comprises 370,000 square feet of retail, restaurant and entertainment space and 203,000 square feet of office space.

Crescent Communities will develop the residential project along Greenway-Hayden Road on Scottsdale Quarter’s Northeast corner. The property will offer modern décor and such upscale amenities as an elevated resort-style pool and a two-story fitness center with views of McDowell Mountains. Construction is expected to begin in late 2013.

In other multi-family news, Redstone at SanTan Village, the first luxury multi-family project to open in Gilbert in five years (pictured at right), has started signing leases.

Located at 1925 S. Coronado Road, the $45 million project incorporates resort-style features including granite countertops, stainless steel appliances, walk-in closets, attached and detached private garages, and high-speed internet connections.

Other amenities at the 382-unit community include a 24-hour fitness center with club-quality equipment, an elevated spa area with a fireplace and flat-screen televisions, poolside cabanas, outdoor lounge areas, free Wi-Fi and a children’s playground area.

Del Mar, California-based LWI Properties is the developer of the project, which was built by hardison/downey construction inc. and managed by Mark-Taylor Residential. Financing was provided by Union Bank.

Photo: Mark-Taylor Residential

Bascom Group Pays $35M for Downtown Chandler M-F Asset

By Amalia Otet, Associate Editor

An affiliate of Irvine, Calif.-based Bascom Group L.L.C. has completed the $35.2 million acquisition of The Fairways, a 352-unit Class A apartment community located in Downtown Chandler.

Cliff David and Steve Gebing of Marcus & Millichap Real Estate Investment Services Inc. represented the seller; Bascom Group was self-represented. Gary Mozer and Katie Rodd of George Smith Partners, along with Brian Eisendrath and Brandon Smith from CBRE Inc., arranged the equity and financing for the purchase. MEB Management Services will serve as the onsite property manager, according to RENTV.com.

Located on a 20-acre site, the asset comprises one-, two- and three-bedroom units averaging 965 square feet in size and featuring electric kitchens, nine-foot-high ceilings, full-sized washers and dryers, walk-in closets and private patios or balconies. Select units offer wood-burning fireplaces, vaulted ceilings, separate storage spaces, tuck-under carports, direct-access garages and lightly upgraded interior finishes.

In other suburban Phoenix multi-family news, thePhoenix Business Journal reports that San Diego-based OliverMcMillan plans to break ground later this year on a $50 million luxury apartment community along Tempe Town Lake.

Dubbed The Lofts at Hayden Ferry, the development will be located east of Mill Avenue on Rio Salado Parkway at Tempe Town Lake. Plans call for a four-story, 264-unit property offering a variety of floor plans plus two levels of underground parking.

Image courtesy of Google maps

Sky Harbor Launches $1.58B Automated Rail System

By Amalia Otet, Associate Editor

Phoenix Sky Harbor International Airport marked a major milestone April 8 with the opening of the $1.6 billion PHX Sky Train system. Officials are touting the system as a catalyst for transit-oriented development and establishing a sustainable platform for growth.

The automated electric train will operate around the clock, transporting passengers between the 44th Street and Washington METRO light rail, the East Economy parking area and the 88-gate Terminal 4, which handles 80 percent of Sky Harbor’s passengers.

Designed by Gannett Fleming, the rail system will cut Sky Harbor’s greenhouse gas emissions by nearly 6,000 tons per year. The three stations, which were designed by HOK, will consume 30 percent less power than comparable conventionally designed projects, according to.HOK news.

For example, the elliptical form of Sky Train’s 44th Street station allowed a 30 percent reduction in the volume of structural steel. Moreover, the elliptical shell functions as a high-performance envelope, protecting passengers from the extremes of the desert climate.

Sky Train is the first automated people-mover to earn LEED Gold certification from the U.S. Green Building Council. By early 2015, Sky Train is scheduled to extend to Terminal 3 with a walkway to Terminal 2. In its final stage of construction, the train system will continue to the Rental Car Center.

Images courtesy of HOK

Macy’s Plans $35M Expansion for Goodyear Fulfillment Center

By Camelia Bulea, Associate Editor

Macy’s Inc. plans to start a $35 million expansion of its online fulfillment center in Goodyear this summer, the retailer said on March 21. When completed next spring, the project will add 360,000 square feet to the five-year-old facility, increasing its size to 960,000 square feet.

“Our online fulfillment centers, as well as the 500 Macy’s stores that will be equipped to fulfill orders by the end of 2013, handle customer orders placed online, as well as ship products to customers who shop in stores that may not stock the specific product they need,” said R.B. Harrison, Macy’s, Inc.’s chief omnichannel officer.

“Goodyear already is a state-of-the-art fulfillment center, and this expansion will allow us to scale up its capabilities to handle the higher level of volume expected in the years ahead,” Harrison said.

The announcement comes in response to sales growth. Jim Sluzewski, a spokesperson for the retailer, said that online sales increased 50 percent year-over-year in 2012, according to AZCentral.com. About 500 employees work at the center, and the company plans to hire about 125 more workers for stocking and shipping and receiving, added AZCentral.com.

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Gilbane, P.B. Bell Launch Upscale 389-Unit M-F Complex in Chandler

By Camelia Bulea, Associate Editor

Gilbane Development Co. and P.B. Bell Cos. have kicked off construction of Almeria at Ocotillo, an upscale 389-unit apartment community in Chandler.

Scheduled to open in the first quarter of 2014, the complex is being developed as part of The Waters at Ocotillo, a 74-acre mixed-use development adjacent to Downtown Ocotillo.

Corporate heavyweights such as Intel, eBay, PayPal and Wells Fargo have generated strong economic growth in the area, the developers noted. “Almeria at Ocotillo will cater to the most discerning of residents, with its high-quality Santa Barbara style design, gorgeous landscape and outstanding amenities,” said Bob Gilbane, chairman and CEO of Gilbane Development.

The gated complex will offer one-, two- and three-bedroom options. The units will feature nine-foot ceilings, granite countertops, walk-in closets, balconies and other features.

Common amenities will include large open spaces with picnic areas and gas grills, two heated pools and a spa, two fully-equipped athletic centers, a children’s play area and splash pad, and lounges with theater room, fireplace and flat-screen TVs.

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Mark-Taylor, Kitchell to Develop 590-Unit M-F Project in Tempe

By Camelia Bulea, Associate Editor

Mark-Taylor Inc. and Kitchell Development Co. plan to develop a 590-unit multi-family project in Tempe. Dubbed San Sonora, the entire project will cost between $75 million and $80 million, including land and building costs, reported the Business Real Estate Weekly of Arizona.

The developers plan to break ground on the initial 362 units of the project this summer, with opening projected for May 2014. The second phase, which will add 228 units, is scheduled for completion in March 2015. San Sonora’s units will range in size from about 730 to 1,450 square feet.

Designed by Architectural Design Group, a Mark-Taylor affiliate, the property will be located on a 30-acre site near the southwest corner of Warner Road and Priest Drive.

Mark-Taylor and Kitchell purchased the land in two transactions totaling $11.2 million, according to Cassidy Turley, which represented the developers in the acquisition.

Elsewhere in the area, the joint venture is also developing the San Marquis community in Tempe, a 229-unit property, as well as a 383-unit project in Chandler, according to Business Real Estate Weekly. 

Rendering of the San Marquis: Kitchell Development Co.

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Optima Sonoran Village Leads Downtown Scottsdale’s M-F Development Wave

By Camelia Bulea, Associate Editor

Optima Sonoran Village, a multi-family complex under construction in Downtown Scottsdale, recently marked an important milestone. The project’s 210-unit first phase, dubbed Mesquite, is the first in a new wave of planned Downtown multi-family units to reach completion.

Located southeast of 68th Street and Camelback Road, Mesquite is one of five towers that will comprise the Sonoran Village community.  Developed in four phases, the complex will eventually include 571 additional units, noted the Scottsdale Republic.

The project’s contemporary design, characterized by tinted green glass and colorful exteriors, is intended to bring something fresh and exciting to Scottsdale, said David Hovey Jr., Optima vice president and the complex’s architect.

Apartments range in size from one to three bedrooms with 10 floor plans, all offering outdoor terraces. Monthly rents start at $1,200. Amenities include a 19,000-square-foot fitness center with a basketball court, racquetball, indoor lap pool and a yoga studio. The 10-acre property also includes a zero-edge outdoor pool and dog park.

Among the first firms to develop a condominium project in Downtown Scottsdale, Optima completed Camelview Village in 2006. List prices at that property range from $380,000 to $1,430,000 per unit.

Rendering: Optima, Inc.

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$25M Sports Complex Debuts on ASU West Campus

By Camelia Bulea, Associate Editor

A $25 million fitness center is scheduled for an official ribbon-cutting March 1 on the Arizona State University West campus in Phoenix.

Dubbed Sun Devil Fitness Complex, the 63,800-square-foot facility is the third project to open on the West campus during the current academic year, noted Mistalene Calleroz White, dean of students on the West campus. The complex will join the 365-bed Casa de Oro residence hall and the Verde Dining Pavilion, which opened last August.

The center will offer fitness studios, an outdoor pool, two competition play fields with softball and rugby field overlays, outdoor basketball courts and sand volleyball courts, indoor racquetball courts and a two-court gymnasium. The facility is funded by a student government-endorsed facility fee.

The complex was built by Haydon Building Corp. and designed by Architekton + 360 Architecture, noted the Phoenix Business Journal. American Campus Communities built the residential project and dining hall that opened last year.

Photo courtesy of Arizona State University

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Dignity Breaks Ground on $44M Hospital in Glendale

By Camelia Bulea, Associate Editor

Dignity Health has broken ground on a $44 million hospital that will rise on the hospital network’s West Valley campus near Loop 101 and Glendale Ave.

The new facility, named St. Joseph’s Westgate Medical Center, is scheduled to open in early 2014; the 60,000-square-foot first phase will include an emergency room, 24 inpatient beds, two operating rooms and diagnostic services.

“The campus is designed to be a model for the nation’s changing healthcare environment and will change as medicine and the community evolve,” said Gregg Davis, the new hospital’s president. Dignity Health envisions a full-service medical center on its 35-acre campus that could eventually offer 200 beds and facilities for community physicians and outpatient partners.

St. Joseph’s Westgate Medical Center will join other three hospitals that Dignity Health operates in the Valley: St. Joseph’s Hospital and Medical Center in Phoenix, Chandler Regional and Mercy Gilbert Medical Centers in the East Valley.

Rendering courtesy of Dignity Health

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City Weighs 100-Acre Sale to Liberty Property Trust

By Camelia Bulea, Associate Editor

The Tempe City Council is scheduled on Feb. 7 to consider a proposal by Liberty Property Trust to acquire and develop up to 100 acres of city-owned land, the Phoenix Business Journal  reported.

 Under the proposed agreement, Liberty would buy 81 parcels of city-owned land at the intersection of Priest Dr. and Rio Salado Parkway near Tempe Town Lake in phases. A 21-acre public works yard located on the northeast corner of the site would be relocated if the Malvern, Pa.-based REIT exercises an option to buy the parcel.

In all, Liberty would develop more than 800,000 square feet of office, flex or industrial buildings. Liberty would start construction during the first half of 2013 and build out the site over the next nine to 12 years, the city said in a statement late last month. The firm was selected in Feb. 2012 from candidates responding to a request for qualifications.

“Now more than ever, job creation is a top priority, and developments like these will get us to an ever better place as a community,” Tempe Mayor Mark Mitchell commented in a statement. The deal would generate an estimated $11.9 million to help fund city projects, such as a new dam at Tempe Town Lake that must be completed by Dec. 2015.

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North Scottsdale Mixed-Use Project Launches Construction With $62M M-F Complex

By Camelia Bulea, Associate Editor

Dallas-based TDI Real Estate Holdings LLC broke ground earlier this month on Jefferson at One Scottsdale, a multi-family community that will be the first component of an 80-acre mixed-use development.

Phase one is scheduled for completion in 2014 and will consist of 388 units: 178 one-bedroom apartments, 186 two-bedroom units and 24 three-bedroom apartments.

Project plans also call for a 10,800-square-foot clubhouse, lounge, media room, two resort-size swimming areas with spa, 294 garage spaces and 182 carport spaces. Texas Capital Bank and The PrivateBank provided the construction loan, and Behringer Harvard furnished the mezzanine piece.

When complete, the 750-unit complex will form the residential portion of One Scottsdale, an 80-acre mixed-use project that DMB Associates Inc. and Macerich are planning for the north Scottsdale corporate corridor. In addition to its multi-family component, One Scottsdale will include up to 1.8 million square feet of retail, restaurant and Class A office space and about 400 boutique resort hotel rooms.

Because the multi-family sector has rebounded faster than other commercial real estate categories, DMB and Macerich are launching the residential component first, noted the Phoenix Business Journal.

Rendering of Jefferson at One Scottsdale, via Multi-Housing News

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ASU Plans Groundbreaking on 130 KSF Project in Tempe

By Camelia Bulea, Associate Editor

Arizona State University plans to break ground Jan. 24 on Block 12, a 130,000-square-foot mixed-use project on its campus in Tempe. Developers target June 2014 as the completion date.

The five-story building will be the new home for the Del E. Webb School of Construction and will house classroom and administrative space. Also planned for the complex are a Grab and Go market, café, bookstore and study space.

According to a detailed presentation by the university architect’s office, Block 12 is slated for LEED Silver certification or higher and will incorporate such features as LED lighting, integrated photovoltaic/solar-thermal technologies and a ventilated façade to reduce exterior surface temperatures.

In addition to Block 12 , ASU’s current projects in Tempe include expansion of McCord Hall, a 129,000-square-foot, four-story building at the W.P. Carey School of Business, notes the Ahwatukee Foothills News.

The business school has doubled in size to more than 10,000 students over the past decade, making expansion an urgent need. “To be blunt, we should have built this 12 years ago,” said Robert Mittelstaedt, the school’s dean.

Photo rendering of ASU’s Block 12, by Architekton / Gensler Architects, courtesy of ASU

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Stockbridge Capital/Alliance Residential JV Pays $50M for 629-Unit M-F Complex

By Camelia Bulea, Associate Editor

A joint venture of San Francisco-based Stockbridge Capital Group and Alliance Residential Co. of Phoenix has acquired The Canyons, a 629-unit apartment community in Northwest Phoenix, for $50 million. Continental Realty Advisors, the seller, purchased the property for $45.5 million in 2010, Business Real Estate Weekly reported.

“We see Northwest Phoenix as an area of focus of this continued growth for the next several years,” said Matthew McCormick, vice president of acquisitions for Stockbridge. According to BREW, this is Alliance’s first acquisition of an existing project in the Phoenix market in almost six years. The buyer is looking to purchase other local multi-family assets and land for apartment development.

At the time of the sale the property was 88% leased. Transwestern’s Phoenix office arranged the transaction.

The Canyons was built in two phases in 2004 and 2005. It offers Class A amenities including a clubhouse, resort-style pools, spas, fitness center, business center, BBQ area and Internet café. Monthly rents range from $571 for a studio to $1010 for a four-bedroom unit, according to Trulia.

Photo courtesy of Stockbridge Capital Group

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Novawest Proposes Landmark 420-Foot-Tall Tower for Downtown Phoenix

By Camelia Bulea, Associate Editor

Novawest L.L.C. is planning a distinctive addition to the Downtown Phoenix skyline: a 420-foot pin-like tower that would be the tallest building in Arizona.

Bjarke Ingels Group, a Copenhagen-based architectural firm, is providing the design for a 39-story structure with a reinforced concrete core topped by an open-air spiral sphere. The tower would include 70,000 of retail units, restaurant outlets and flexible exhibition space, noted World Architecture News.

Reminiscent of both a pin and Frank Lloyd Wright’s landmark design for the Guggenheim Museum in Manhattan, the structure would offer a 360-degree view. “The motion at the Pin is turned inside-out, allowing visitors to contemplate the surrounding city and landscape of Phoenix,” explained Bjarke Ingels, the design firm’s founding partner.

Novawest wants to build the structure near the Arizona Science Center, Phoenix Convention Center and US Airways Center, reports the Phoenix Business Journal.

Novawest plans to break ground on the $60 million tower in August 2013 so that the project can be completed before the 2015 Super Bowl, which will be played nearby at the University of Phoenix Stadium in Glendale. 

Major hurdles lie ahead, however; Novawest must secure financing and win city approval. Moreover, the firm will have to negotiate a lease for the city-owned site of the proposed project, adds AZCentral.com.

Rendering: Bjarke Ingels Group via Archello

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University of Arizona Launches $100M Cancer Center at Phoenix Biomedical Campus

By Camelia Bulea, Associate Editor

Construction is scheduled to start this month on the University of Arizona Cancer Center, a $100 million clinic at the Phoenix Biomedical Campus, university officials have announced.

Expected to open in early 2015, the 230,000-square-foot facility will offer comprehensive cancer services, including infusion, radiation oncology, diagnostic imaging, endoscopic/interventional radiology, a breast center, specialized clinics and clinical lab space.

Four of the building’s six stories will be built out initially. The fifth floor will be constructed as shell space for future expansion, and the sixth floor will house mechanical equipment.

Funding for the project is being provided by multiple sources, reported AZCentral.com:

- $14 million from the city of Phoenix
-  $66 million in revenue bonds provided by the University of Arizona
-  $20 million in private donations, including $5 million already in hand

“The Arizona Cancer Center is a tremendous next step on the Phoenix Biomedical Campus, and we look forward to continued growth,” said Mayor Greg Stanton. Located on a 28-acre Downtown Phoenix site, the decade-old campus encompasses research, academic and clinical facilities.

Rendering courtesy of the University of Arizona

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Van Tuyl Group Plans $16M Cadillac Dealership in Glendale

By Camelia Bulea, Associate Editor

The Van Tuyl Group is planning to develop a $16 million Arrowhead Cadillac dealership in Glendale.

The 55,000-square-foot showroom and service center would be located on an eight-acre tract located near 83rd Avenue and Bell Road. Groundbreaking is scheduled for early next year and the dealership is expected to open in the fall of 2013.

The Phoenix Business Journal reports that the group has also paid $7 million in late November for 75 acres across from University of Phoenix Stadium in Glendale near Glendale Avenue and the Loop 101 freeway. Van Tuyl has not released any development plans for that parcel, which was previously eyed for a new USA Basketball headquarters.

Florida-based Van Tuyl operates other several car dealerships in Phoenix, including ABC Nissan, Camelback Toyota, Bell Honda, Midway Chevrolet and Lund Cadillac. Arrowhead Cadillac will also include a Hummer and Saab service center.

Photo rendering of the Van Tuyl Group dealership on East Missouri Avenue in Phoenix, via Google maps

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Tanger Opens $76M Outlet Mall at Westgate City Center in Glendale

By Camelia Bulea, Associate Editor

Eight months after breaking ground, Tanger Outlets Westgate, a $76 million outlet mall, opened to the public on Nov. 15, reported the Phoenix Business Journal. The 85-store center will be an anchor for the 8 million-square-foot Westgate City Center complex, which will incorporate shopping, entertainment, office and luxury residential elements.

Tanger Outlets at Westgate joins two other anchors at the complex: Jobing.com Arena and University of Phoenix Stadium, according to AZCentral.com. Development of Westgate City Center began in 2005, incorporating restaurants, a 20-screen theatre and a 12-story Renaissance Hotel, completed in 2007.

Phase two will integrate the 328,000-square-foot Tanger center into a 440-unit residential district. Tanger may also add another 80,000 square feet to its property at a future date. Westgate City Center is scheduled for completion in 2015 at a cost of $1 billion.

Photo rendering of Westgate City Center courtesy of Wikipedia.org

First Washington-CalPERS JV Buys Lincoln Village Shops for $38.7 million

By Camelia Bulea, Associate Editor

Global Retail Investors L.L.C .,  a joint venture of First Washington Realty and the California Public Employees’ Retirement System, has acquired Lincoln Village Shops in Scottsdale for $38.7 million,  or $544.16 per square foot, the Phoenix Business Journal reports. The seller, an affiliate of Redwood Real Estate Partners, had owned the 71,142-square-foot property located at Scottsdale Road and Lincoln Drive since 1993. Lee & Associates was the broker.

Serving both Scottsdale and Paradise Valley residents, Lincoln Village Shops includes national and local tenants such as Walgreens, Trader Joe’s, Verizon Wireless and Cingular Wireless. Built in 1979, the retail property was renovated in 2011. Global Retail Investors’ portfolio includes more than 90 retail properties.

Marcus & Millichap Real Estate Investment Services Inc. reports that 2012 retail property sales in the Phoenix metropolitan market are dominated by REO and short sales.  Multi-tenant sales activity has risen 23 percent since last year as opportunistic buyers acquire bank-owned neighborhood and strip centers for value-add plays.

More investors may enter the Phoenix market in the coming months, targeting newer centers with nationally recognized tenants like Lincoln Village Shop, according to Marcus & Millichap analysts.

Charts courtesy of Marcus & Millichap Research Services

Intravest Takes N. Phoenix Flex Building for $19M

By Camelia Bulea, Associate Editor

Intravest Development L.LC. has purchased a 145,000-square-foot flex industrial building in North Phoenix. This $19.06 million acquisition marks the first commercial asset in the investor’s portfolio, the Phoenix Business Journal reported.

“This is the first in the line of several transactions Intravest Development plans to complete in the commercial real estate sector over the next 18 months,” commented Thomas M. Roskos, Intravest’s CEO. Robert Lundstedt of Daum Commercial represented Intravest in the transaction. Johnson Bank provided financing for the buyer.

Prior to its latest acquisition, Intravest had focused on multi-family properties in Greater Phoenix, the Business Journal noted.

Located west of I-17 and north of Greenway Road, the building serves as the headquarters of Climatec, a building technology company, under a 10-year, triple-net lease.  Before Climatec moved in five years ago, the building was occupied by Hypercom Corp., the  Business Journal reported. The property earned an Energy Star rating in 2011.

Intravest wants to capitalize on the positive momentum in the Greater Phoenix commercial market, the firm’s principals explained in a statement. The vacancy rate for the metropolitan Phoenix industrial market dropped to 11.1 percent during the third quarter, marking the 10^th consecutive quarter of positive absorption, CBRE Inc. reports.  Twenty-two of its 28 submarkets registered absorption on the plus side. So far this year, the market has absorbed 6.1 million square feet (see chart below).

Photo courtesy of Climatec

Chart courtesy of CBRE Inc.

Contested $17M Senior Housing Project Breaks Ground in Mesa

By Camelia Bulea, Associate Editor

Mesa officials broke ground Oct. 29 on a $17 million senior living center in the city’s Downtown. Dubbed the Residences at Center Street Station, the five-story project is being developed by Mesa Housing Associates and Encore and is scheduled for completion by October 2013, the East Valley Tribune reports.

Located on First Avenue, the 81-unit development is the first big private investment to get under way in Downtown Mesa for many years, Councilman Dave Richins told AZCentral.com. Richins was one of the big supporters of the project that split City Council members.

Critics, including some council members, contend that a low-income housing project is unsuitable for an area where the city is encouraging major investment around a rail station scheduled to open in 2015, the East Valley Tribune reports. Mesa Housing and Encore previously completed a five-story, 56-unit project, which opened in January in Tempe’s downtown.

Another major project in the works on First Avenue is Goldwater Library and Archives, which will be housed in a three-story, 40,000-square foot LEED-certified building, according to a statement by the city. Plans call for an exhibition area, reading room and café, the project is expected to attract some 57,000 visitors when it opens in 2016.

Photo courtesy of City of Mesa