Showing posts with label apartments. Show all posts
Showing posts with label apartments. Show all posts

Friday, April 20, 2012

Apartments to replace vacant medical offices in Scottsdale

A vacant medical plaza is set to be demolished to make way for a 264-unit apartment complex northwest of Scottsdale Road and Lincoln Drive.

In January, the Scottsdale City Council approved a zoning change to allow the mixed-use development, named Broadstone on Lincoln. The Development Review Board this month approved the site plan, architecture and design of the complex.

Bryan Cluff, project coordinator for the city, said this will be one of the first multifamily complexes under construction in Scottsdale.

"The only other one I think may be ahead of it would be Optima Sonoran Village on Camelback Road," he said. "They're moving forward as well. Optima Sonoran Village does have (construction) permits for Phase 1 and that portion of the project is under construction."

Broadstone on Lincoln is among 18 apartment projects that would add about 5,700 apartments citywide.

The property is owned by Cam-8 LLC and the developer is Alliance Residential Holdings. The plan calls for multilevel apartment buildings and one story of retail along Scottsdale Road.

The apartment complex includes six buildings totaling 225,562 square feet on 5.3 acres. The overall project is 7.5 acres. The site of the future Ritz-Carlton is just west of the property in Paradise Valley.

The development excludes the 48,000-square-foot lot at Scottsdale and Lincoln, which houses two separate commercial office buildings.

The property was zoned for commercial use in the early 1970s and was developed with multiple office buildings, which now are vacant and deteriorating.

The developer hasn't yet submitted construction documents to obtain construction permits for the apartment complex, Cluff said.

Once the existing buildings have been demolished, construction will begin on the new apartment buildings, said Jason Morris, a zoning attorney representing the project.

"We're moving on to construction drawings and we're doing that right now," he said. "Construction is to begin later this year. It will be built all at once. We will open while construction is still occurring. All of the units will be phased in."

The apartment complex will be set back from Scottsdale Road,

The first units should be ready for occupancy in either the first or second quarter of 2013, Morris said. The complex will have luxury units supported by an underground parking structure, he said.

Building heights will be greater just west of Scottsdale Road, while heights will be lowest on the north side of the property, according to the Development Review Board application. The maximum building height will be 48 feet.

This will be the first multifamily residential development in the immediate area, Morris said. The location is intended to attract a "social" resident who frequents area retail, restaurants and other development.

The retail portion of the project, two one-story buildings along Scottsdale Road, will be under a separate Development Review Board application, he said.

"The retail won't take as long to build as the residential, so it's very possible that it could come out of the ground together with the residential," Morris said.

Nearby residents expressed concern to the council about the complex this year, saying it was too dense and would increase traffic congestion in the area.

"I think we're able to communicate answers to the majority of their concerns," Morris said.

by Edward Gately - Apr. 20, 2012 09:44 AM The Republic | azcentral.com



Apartments to replace vacant medical offices in Scottsdale

Friday, April 6, 2012

Developer seeking state land for 2 Scottsdale auto lots

A developer hopes to acquire more than 29 acres of state trust land for two car dealerships on Scottsdale Road just south of Loop 101.

Diversified Partners of Scottsdale submitted preliminary plans to the city last week for two car lots, with one dealership housed in a 90,000-square-foot, two-story building. A second building is not mentioned in the plans.

The 29.37-acre site southeast of Scottsdale Road and Union Hills Drive is scheduled to be sold at auction at 10:30 a.m. May 15 at the Arizona State Land Department.

The minimum bid is $10.2 million, or $348,051 per acre.

Walt Brown Jr., Diversified Partners CEO, said he expects other bidders for the state land.

"We have been talking to banks, talking to hotels that want to be there," Brown said. "We are trying to work our way through it."

No specific car brand has been identified for the development, he said.

But Diversified's plans submitted to the city include architectural drawings labeled Lexus Scottsdale.

The site is one of the first targeted for development within an area of state trust land called Crossroads East. It includes about 1,000 acres between Scottsdale and Hayden roads from Princess Drive north to the southern edge of Grayhawk.

"If we're successful, we plan to put it in production within a year or year and a half," Brown said. "It sure is great real estate."

The site's proximity to the Loop 101 and nearby shopping centers with great tenants make it an ideal location, he said.

Development will require some major drainage improvements including a channel for storm water set back at least 50 feet from Scottsdale Road, Brown said, adding that its unclear how much the work will cost.

It will be similar to a drainage channel on the west side of Scottsdale Road for a series of car dealerships in Phoenix.

Cadillac dealer owns nearby site

A Lund Cadillac dealership was approved in 2002 for a site northeast of Scottsdale Road and Union Hills Drive.

Lund still owns the land, but its plans, approved by the Scottsdale Development Review Board in 2003, have expired, said Greg Bloemberg, a city planner.

Lund Cadillac did not return calls seeking comment about its plan for the site.

Apartment plans advance
TDI Real Estate Holdings, of Irving, Texas, has submitted plans to the Scottsdale Development Review Board for the second phase of its apartment project at One Scottsdale, northeast of Scottsdale Road and Loop 101.

The project, which surfaced in October, would include 677 apartments on 24 acres at the northeastern edge of the 120-acre One Scottsdale site.

The Henkel North America headquarters, formerly Dial, is the only existing building on the northeastern corner. It was completed in December 2008.

The apartments would be developed in two phases with 388 units in the first phase and 289 in the second phase.

Apartments would range in size from 748 to 1,280 square feet.

TDI previously estimated development costs for the first phase at $65 million.

by Peter Corbett - Apr. 6, 2012 08:48 AM The Republic | azcentral.com



Developer seeking state land for 2 Scottsdale auto lots

Saturday, March 24, 2012

Apartments on tap at Morrison

Morrison Ranch will soon get its first apartment complex.

The 228-unit apartment complex will be going up on a 14-acre parcel of land that Scottsdale-based P.B. Bell Companies bought from the Arizona State University Foundation on March 6 for about $2.8 million, according to R. Chapin Bell, president of the real-estate management and development firm.

To date, Morrison Ranch has developed 2,300 single-family lots in five neighborhoods, and Bell said he has special plans for the complex, to be built on a parcel in the Highland Groves area, near Big League Dreams near Elliot and Power roads.

"We're very excited about it," Bell said. "What's different about it is there are so many high-density developments, with 24 or even 28 units per acre. This has a lower density, with 16 units per acre. And that creates more open spaces that people can enjoy, with more landscaping, lush trees (and) green grass. It will have a nice, open feel to it."

The land is part of a nearly 80-acre parcel that Marvin and June Morrison donated to the ASU Foundation in 1998. As part of that deal, ASU's College Of Agribusiness became the Morrison School of Agribusiness and Natural Resources at the ASU Polytechnic campus at Phoenix-Mesa Gateway Airport in Mesa.

Nearly all of the 14 acres owned by P.B. Bell was part of that donation, said Scott Morrison, one of the co-owners of the ranch.

None of the buildings in the development -- a mix of one-, two- and three-bedroom units -- will be higher than two stories. The complex will include a resort-style pool, fire pits, grills, ramadas with TVs, a spa and a resident lounge with kitchen facilities. There also will be a playground for children.

Bell said the units will include granite countertops, custom cabinetry and upgraded flooring, and will lease for about $800 to $1,200 a month.

MT Builders of Scottsdale will start construction within 90 days.

by John Stanley - Mar. 23, 2012 01:52 PM The Republic | azcentral.com




Apartments on tap at Morrison

Thursday, March 8, 2012

Downtown Phoenix to get more apartments

 
Crews are prepping a downtown Phoenix property to lay the foundation for 325 apartments that a Scottsdale-based developer anticipates will house a number of college students after it is finished in 2013.

Executives of Concord Eastridge said they see opportunity in the increasing number of students moving into the downtown area to take classes at three major campuses: Arizona State University's downtown Phoenix campus, with nearly 16,000 students; the University of Arizona's College of Medicine and Pharmacy College campuses, with 560 students combined; and the Phoenix School of Law, with an estimated 1,000 students.

Adding to the potential economic boost is a future Arizona Cancer Center that will focus on clinical research, and Northern Arizona University, which this fall will open physical-therapy and physician's-assistant programs to draw 49 students to the downtown biomedical campus.

Community leaders welcome the $52 million apartment project south of Roosevelt Street, between Third and Fourth streets, as a sign of revitalization. The historical area has had a smattering of dusty and empty lots since the 1970s and 1980s, when land speculators and property owners thought they could make it big by razing and selling properties near downtown Phoenix and what eventually became Interstate 10.

The two-block, eight-story apartment and retail buildings will change the Roosevelt neighborhood significantly, said Cindy Dach, a neighborhood resident who also leads the non-profit Roosevelt Row Community Development Corp.

"It's going to increase our population probably around 30 percent," Dach said. "And even from the simple thing when I walk around at night ... the fact that there's going to be lights on is just going to change the neighborhood and bring more people walking around."

Dach said it also will diversify an area that is home to several artists and their studios, including the nearby Artisan Village at Roosevelt and Sixth streets.

Phoenix officials estimate the two buildings -- a mix of studios and two-, three- and four-bedroom apartments -- will house an estimated 600 people. The apartments will include several amenities for students and young professionals.

"There will be a pool and spa and other amenities on both blocks," said Steven Schnoor, a Concord Eastridge vice president. "Each building has its own pool, its own fitness facility, its own entertainment area -- including a barbecue eating area and lounge -- and interior entertaining spaces."

The list goes on: tanning beds, fitness rooms, community kitchens where tenants can entertain large groups of friends, high-speed Internet and other stuff college kids look for in a near-campus home.

"Really, they're all the amenities that you would expect in state-of-the-art student housing in higher education today," Schnoor said, noting that Concord Eastridge's portfolio includes several college projects.

Schnoor said the company doesn't have an exact dollar figure yet on rent for the downtown Phoenix apartments, but "they will be comparable to what a student would pay to live at (ASU's) Taylor Place."

A single bedroom at ASU's Taylor Place in downtown Phoenix costs $7,670, while a double-bedroom costs $8,560, according to Arizona Board of Regents records. That cost does not include a meal plan.
Concord Eastridge also is making its project a home for small businesses, renting the ground floor of both buildings to retailers.

The developer has been preparing for the apartment project since June, when it paid $3.08 million for the two vacant blocks, 2.89 acres in all, which had been owned by Mortgages Ltd. until it went bankrupt.
Concord Eastridge has gotten some help from Phoenix officials. It will pay no property tax on the site for 25 years -- a burden eased by a special designation granted by the City Council last year.

In Arizona, a city or county can ease property taxes for a project that is meant to spur economic
development by taking ownership of the property under the state's Government Property Lease Excise Tax program. Several properties in downtown Phoenix, from the Arizona Center to the mixed retail-and-office project CityScape are among the hundreds of properties that pay no property taxes in Phoenix because the city owns them.

Instead, the developers pay rent to the city every year of the agreement. Its annual rent to the city starts with $10,000 in the second year and increases 5 percent each year for the contract's 25-year term. After eight years of the contract, it will begin paying excise (sales) tax of up to $350,000 a year.

by Emily Gersema - Mar. 3, 2012 04:28 PM The Republic | azcentral.com

Downtown Phoenix to get more apartments

Tuesday, February 7, 2012

Apartments are planned

A four-story, 274-unit apartment complex would replace Plaza 777 on the southern edge of downtown Scottsdale under plans recently submitted.

The proposed Bauhaus Flats & Studios would be built on 4.4 acres northeast of Scottsdale and Thomas roads and on an adjacent ¾-acre parcel on 73rd Street. It would include about 10,000 square feet of commercial space.

The shopping plaza, built in 1960, includes a florist, locksmith, rental-car agency, restaurant, hobby shop and Plato's Closet clothing store. More than half of the 40,251-square-foot plaza is vacant.

Architect Kristjan Sigurdsson of K&I Homes LLC said there is high demand for apartments in the area because virtually no units have been built downtown in the last decade.

"This would be a nice addition to that whole housing market," he said, adding that the Bauhaus apartments would be within walking distance of neighborhood commercial services.

The area has a diverse mix that includes a supermarket, hardware store, coffee shop, bowling alley, adult bookstore, car wash, bail bondsman and pawnshops.

The Sphinx Ranch Gourmet Gift Market, which has operated in the Valley for 61 years, is two doors to the north. Jason Heetland, Sphinx Ranch owner, said it's time for something to be done to update the area.

"I would hope that the current tenants would have a first right of refusal to lease space" in the Bauhaus' shops, Heetland said.

Area business owners have struggled for nearly a year with Scottsdale Road streetscape improvements, he said. The developers are seeking a rezoning for the Plaza 777 site from commercial to planned-unit development.

The development team includes architect Sigurdsson, Tom Frankel and Keith Nygren. KT777 LLC bought the plaza for $2.58 million.

No date has been set for the rezoning hearings.

by Peter Corbett - Feb. 3, 2012 02:33 PM The Republic | azcentral.com



Apartments are planned

Sunday, December 18, 2011

Lofts planned near stadium

A proposal for a $100 million-plus apartment complex along Miller Road just east of Scottsdale Stadium and the San Francisco Giants training complex has some residents complaining that it will be too tall and too big for the property and their neighborhood.

Scottsdale-based Continental Group wants to build Bristol Stadium Lofts, which would tentatively include 224 units with nine stories closest to the stadium and descending to five stories on the Miller side. The complex would be built on a 1.7-acre lot west of Miller and north of Osborn Road. There are four vacant buildings there now.

The complex could include three levels of underground parking with more than 370 parking spaces. The only entrance to underground parking would be on Miller.

Continental Group's proposal is seeking a building-height increase and other amendments to existing development standards under the city's downtown infill-incentive district and plan. The developer already has scaled back the maximum height from 125 feet to 85 feet after speaking with residents and city planners.

"The property as it now stands needs to be redeveloped -- it's past its prime," said Terry O'Neill, project manager. "You have (Scottsdale Healthcare Osborn Medical Center) expanding with the new tower going up, and there is a need for rental accommodation for Scottsdale and especially for the new employees of the hospital."

"We think that the neighborhood has fallen into a dilapidated state, and it's time to make a change," said John Lupypciw, Continental Group's CEO. "We don't need a larger parcel to develop this fabulous opportunity. It's about the design and how you structure to fit the property."

The developer met with more than 20 residents at the site recently to explain the plans and receive input. Several residents said they like the concept and design, but it's just too big for this

by Edward Gately The Arizona Republic Dec. 9, 2011 02:13 PM




Lofts planned near stadium

Tuesday, December 13, 2011

Scottsdale infill projects to begin in 2012

Scottsdale residents are expected to get their first glimpse next year of construction resulting from the city's controversial downtown infill-incentive district and plan.

Construction on the first phase of Blue Sky, Gray Development Group's apartment complex near the northeastern corner of Scottsdale and Camelback Roads, is to begin late in the second quarter. It will include more than 700 units, three buildings and a maximum building height of 128 feet.

The proposal originally was filed in summer 2010, just after the City Council narrowly approved the district and plan. Those allow property owners downtown to request amended development standards, such as increased height and density, in exchange for public benefits, such as investment in public art and amenities.

The changes established a building-height maximum of 150 feet north of the Arizona Canal and surrounding Scottsdale Healthcare Osborn Medical Center.

Five proposals have been filed under the changes, the latest being Bristol Stadium Lofts, a multistory apartment complex north of the northwestern corner of Osborn and Miller Roads, and just east of Scottsdale Stadium and the San Francisco Giants training complex. It would tentatively include 224 units with nine stories closest to the stadium, and descending to five stories near Miller.

Dan Symer, senior city planner, drafted the downtown infill-incentive plan. He said Blue Sky, along with the second phase of the Safari Drive condominium complex and other projects, likely wouldn't have been brought forward had it not been for the district and plan.

In August, the council approved ST Residential's proposal for the second phase of Safari Drive, just east of the Blue Sky site. It includes an increase in maximum building height to 105 feet from 65 feet.

"Blue Sky and Safari are doing canal improvements, and those are big-ticket items that if they didn't do them the city would have to do them," Symer said. "For an infill-incentive district to offset those costs, I think it is successful. Blue Sky's canal improvements ... are estimated to be $400,000-$500,000, and we get the street improvements, which are quite a bit of money."

Coming up

Last month, Gray Development submitted its design-review application, which could go before the Development Review Board and the council during the first quarter, said Brian Kearney, Gray's chief operating officer.

"The overall design is consistent with what was presented to the council in April, although it has been enhanced in several ways,'' he said.

They include materials that enhance the exterior, development of all lower roof decks as integrated, active spaces and an improved architectural and shade feature at the top of the main building on Scottsdale Road, he said.

The Development Review Board will look at the proposal at its Dec. 15 meeting, but won't take action until a later meeting, Symer said.

He added that Safari Drive is working on its design-review application.

"They're coordinating with Blue Sky on utilities and things like that because they're right next to each other," he said.

Other applicants who have benefited from the infill-incentive changes still have a way to go in terms of specific plans.

In June, the council approved an infill-incentive proposal that increases the maximum building height from 50 feet to 90 feet on the property that now houses the U.S. Egg restaurant on the southwestern corner of Scottsdale Road and Angus Drive, and vacant property to the north.

The proposal didn't include a specific site plan or building elevations, said John Berry, the property owners' zoning attorney. The zoning change and amended development standards are needed to make the property more marketable and accelerate development, he said.

Interest in the site is expected to pick up as the economy slowly improves and the banks are willing to lend on good, quality projects, he said.

Scottsdale-based Continental Group, which wants to develop Bristol Stadium Lofts, has been meeting with residents and city planning officials to obtain feedback on its proposal. The proposal will be considered by the Development Review Board at an upcoming meeting.

Numerous residents have said the complex would be too big and tall for the property and the neighborhood. Terry O'Neil, project manager, said the height has been scaled down from 125 feet, and that more changes may be made before the proposal goes to the council.

"We don't need another public outreach, but if any resident would like more information, I'm open to meeting anywhere," he said.

Higher they go

The owner of a partially demolished building near Scottsdale and Camelback roads wants even more building height than originally requested in its infill-incentive proposal.

The original proposal called for replacing the building with a taller, mixed-use development including restaurant and office space along with one residential unit. The owner and developer is CF Waterfront Investments LLC.

The original proposal asked the city to increase the maximum building height to 65 feet from 36 feet.

The application hasn't progressed through the city's approval process, and has expired, Symer said.

"They would have to resubmit," Symer said. "I haven't heard anything. That was one of the ones we were hoping to first come out of the ground to show that this is what can be done, and unfortunately it died."

Bill Wisniewski, who owns Realty Unlimited, represents CF Waterfront Investments LLC. He said the project is far from dead.

The developer plans to ask for a maximum building height of about 90 feet, he said. It purchased the property just east of the site and wants to locate a parking structure there for tenants and patrons of the mixed-use building, he said.

However, the city doesn't want a parking facility on that lot, and that has delayed the project, Wisniewski said.

"We're ready to move forward on that project," he said. "There's plenty of money for the construction and the blueprints are ready to go."

Current zoning does not permit a parking garage as a stand-alone use on the property, Symer said.

by Edward Gately The Arizona Republic Dec. 8, 2011 08:26 AM




Scottsdale infill projects to begin in 2012

Scottsdale City Council rejects airpark apartment complex

A divided Scottsdale City Council Tuesday rejected a proposal to build an apartment complex in the Scottsdale Airpark despite assurances from the property owner's attorney that it wouldn't harm operations at Scottsdale Airport.

The council voted 4-3 against adopting a non-major General Plan amendment to the Greater Airpark Character Area Plan that would have allowed a 605-unit apartment complex south of Hayden Road and west of Northsight Boulevard.

Sunrise Luxury Living, a multifamily residential developer, wanted to develop a complex on the site, which was vacated by an auto dealership more than two years ago.

"We're obviously disappointed, especially with some of the changes that we had agreed to," said Michael Curley, an attorney representing property owner Joe Cardinale. "We thought that we addressed the council's concerns, but reasonable people can reasonably disagree. You win some, you lose some."

Mayor Jim Lane, and council members Lisa Borowsky, Bob Littlefield and Ron McCullagh voted for a motion to reject the proposal. Vice Mayor Linda Milhaven and council members Suzanne Klapp and Dennis Robbins, who favored the proposal, voted against the motion.

The council has approved two other plans to build apartments in the airpark. One will be a complex near the northwestern corner of Greenway-Hayden Loop and 73rd Street, and the other will be a mixed-use development on the site that currently houses CrackerJax Family Fun and Sports Park.

Opponents of the proposals, including Littlefield, members of the Airport Advisory Commission, pilots and others, have said allowing residential at the airpark will constitute a violation of land-use policy approved by the council and the Federal Aviation Administration, and therefore jeopardize existing and future grants to the airport.

Last month, Curley asked the council to postpone consideration of the Hayden-Northsight proposal because his client wanted to get more information from the FAA. On Tuesday, he told the council FAA officials via conference call said none of the three proposals would be a threat to federal-grant assurances.

He also told the council the site plan would be revised to move all residential units out of the 55-decibel, day-to-night average noise level contour surrounding the airport. Doing so would reduce the number of units and no residential would be located along Hayden, he said.

Littlefield said Curley assurred the council that he would bring back a letter from the FAA, and instead relayed information from a phone call with the agency.

"Why are we threatening the airport for apartments?" Littlefield said. "Even if those grant assurances were not in danger, the vitality and survivability of the airport are threatened."

Lane said Airport Advisory Commission Chairman Gunnar Buzzard spoke with FAA officials and was told grant assurances wouldn't be threatened by the Hayden-Northsight proposal. However, the mayor said he couldn't support the proposal because it represented an "encroachment" of the noise-level contours and is an incompatible land use in that area.

Milhaven said it comes down to a "matter of opinion" as to whether residential should be located in the airpark, and that the city can't afford to wait for the economy to rebound before the airpark sees improvement. If the city doesn't provide housing in the airpark, "businesses will relocate elsewhere."

by Edward Gately The Arizona Republic Dec. 7, 2011 12:44 PM




Scottsdale City Council rejects airpark apartment complex

Sunday, December 4, 2011

Apartment investment firm to target Phoenix in 2012

One of the most prolific investors in Phoenix-area apartment properties this year said it plans to spend $100 million on real-estate acquisitions in five Western states with a likely focus on the Phoenix area in 2012.

BH Properties LLC, a Los Angeles-based real-estate investment firm, has spent about $40 million this year to acquire six commercial properties and two promissory notes on commercial properties in the Phoenix and Tucson areas.

The company also named Andrew Van Tuyle its director of acquisitions, to spearhead the company's aggressive portfolio-expansion plan in the Western U.S. Van Tuyle, of Los Angeles, is a 15-year veteran of the real-estate investment market who has handled the closing of more than $2 billion in transactions in over 20 states.

"Our 2011 acquisitions position us well for continued portfolio expansion and growth in 2012," said Steven Jaffe, executive vice president and general counsel of BH Properties. "Andrew Van Tuyle will be integral to us sourcing and closing $100 million in new acquisitions in the Western states during the next calendar year."

In January, BH Properties acquired the 320-unit Fiesta Park apartment complex, 1033 S. Longmore, in Mesa, for $5.5 million. It was the company's first purchase in the Phoenix area in nearly three years, Jaffe said at the time.

"Our last acquisition was in April 2008 -- that's when we put the brakes on," he said.

A sense of confidence that the market for multifamily-housing had become relatively stable prompted the company to resume its investment activities in Arizona, Jaffe said.

The company is interested primarily in Phoenix-area apartment properties but also has purchased a shopping center in Phoenix and a fast-food restaurant in Douglas, about an hour southeast of Tucson.

Jaffe said BH Properties also would consider investing in industrial properties for the right price.

The company targets underperforming, commercial properties can be repositioned to make them more profitable by investing in various capital improvements.

BH Properties is focused on $2 million to $15 million acquisitions in Arizona, Nevada, Colorado, Washington and Southern California, including both properties and promissory notes on loans backed by commercial real estate.

The company's Arizona purchases in 2011 include:

Sunpointe, a 152-unit multifamily property in Phoenix.

Thunderbird Plaza, a 79,380 square foot retail center in Phoenix.

Church's Chicken, a fast-food restaurant in Douglas.

Biltmore on the Lake, a 420-unit apartment complex in Phoenix.

Casa Bella, a 410-unit multifamily apartment complex in Tucson.

2020 Bell, a multifamily development in Phoenix.

by J. Craig Anderson The Arizona Republic Dec. 3, 2011 05:24 PM




Apartment investment firm to target Phoenix in 2012

Sunday, November 6, 2011

Apartment vacancy rate dips below 9% for 1st time in years

The average vacancy rate at Phoenix-area apartment communities declined in the third quarter after a slight increase in vacancy during the previous quarter, according to real-estate services firm Colliers International in Phoenix.

The vacancy rate dipped below 9 percent for the first time in years, causing rent prices to inch higher, according to the firm's analysis.

The improvement in market fundamentals spurred continued investment in apartment properties, with several large projects changing hands.

The 240-unit Level at Sixteenth, 1550 E. Campbell Ave., Phoenix, sold for $40 million, about $166,667 per unit.

The 324-unit Ironhorse at Tramonto, 34807 N. 32nd Drive, Phoenix, sold for $30.5 million, or $94,136 per unit.

The 224-unit Fountain Oaks, 1225 N. 40th St., Phoenix, sold for $8.3 million, or $37,054 per unit.

The 120-unit Dobson Springs, 1325 W. Guadalupe Road, Mesa, sold for $5.4 million, or $45,000 per unit.

The 101-unit Dobson Bay Club Apartments, 1331 W. Baseline Road, in Mesa, sold for $4.6 million, or $45,545 per unit.

It was the sixth time during the past seven quarters in which vacancy decreased in Phoenix-area apartments, Colliers analysts said.

The vacancy rate reached 8.8 percent as of the third quarter and is expected to reach as low as 8.4 percent by the end of the year.

That's a significant drop from the average vacancy rate of 10.9 percent in the third quarter of 2010.

Lease rates at local apartment communities have remained relatively flat but are expected to increase in 2012, the analysts said.

During the third quarter, the average advertised rent price reached $779 per month, up slightly from both the second quarter of 2011 and one year earlier.

While apartment vacancies should continue to decline, the firm said, landlords likely will see further competition as more investor-owned single-family homes are placed on the market as rentals.

by J. Craig Anderson Arizona Republic Nov 4, 2011



Apartment vacancy rate dips below 9% for 1st time in years

SkySong apartment site, hotel expansion win OK from council

A luxury apartment complex east of SkySong, the Arizona State University Scottsdale Innovation Center, and expansion of downtown's Hotel Valley Ho were among proposals approved this week by the Scottsdale City Council.

The council approved the rezoning and a site plan with amended development standards so Mark-Taylor can build the 536-unit, gated apartment complex near SkySong. The project is a $70 million, private-sector development that will bring 800 to 900 new residents to the McDowell Road corridor, said Lynne Lagarde, a zoning attorney representing Mark-Taylor.

The developer is acquiring land along the south side of McDowell between 74th Street and Miller Road for the nearly 25-acre project. Most of the land is occupied by the abandoned Los Arcos Crossing shopping center. SkySong previously had issues with the plan, saying it provided for no connectivity between the apartment complex and the center. However, all issues have since been resolved, said Paul Gilbert, an attorney representing SkySong.

"The multiuse path was moved to the north and that was very important to us," he said. "Secondly, they came up with a new site plan ... that showed the secondary entrance along 74th Street with a large, attractive fountain and a semi-circle of rich landscaping, so SkySong Boulevard doesn't dead end into the back end of the project."

Mark-Taylor anticipates starting construction as early as next summer, Lagarde said.

Mayor Jim Lane said the proposal is a "great project" for an area that was "potentially moving to a blighted area."

Also at the meeting, the council approved modified zoning stipulations, amended development standards and a new development plan for about 70 hotel rooms, a ballroom with meeting rooms and parking facilities on a 4-acre site at the southwestern corner of Main and 69th streets. Westroc Hotels & Resorts requested the changes in anticipation of future expansion of the Valley Ho.

According to the plan, the land is divided into two areas, with the northern two-thirds of the site to include the guest rooms, ballroom and meeting rooms, and the southern one-third to house parking and service access.

by Edward Gately The Arizona Republic Nov. 3, 2011 06:15 AM



SkySong apartment site, hotel expansion win OK from council

Thursday, October 27, 2011

Scottsdale approves 2nd plan for apartments near airpark

The Scottsdale City Council this week approved a second plan to build apartments in the Scottsdale Airpark but postponed consideration of a third proposal until after the Federal Aviation Administration weighs in on allowing residences close to Scottsdale Airport.

By a 6-1 vote, the council Tuesday approved a non-major, General Plan amendment to the Greater Airpark Character Area Plan. The change creates a mixed-use residential designation that allows apartments on a 32-acre site along Scottsdale Road south of Paradise Lane. The site currently houses CrackerJax Family Fun and Sports Park.

Mayor Lane asks appointee to resign over complaint to FAA
Scottsdale council OKs first plan for apartments near airport

Councilman Bob Littlefield was the only no vote. "This is about protecting one of Scottsdale's biggest assets, the airport," he said.

Residents in the airpark will complain about aircraft noise, prompting political pressure to restrict flight times, therefore driving business away to other Valley airports, Littlefield said.

The Herberger family, which owns the property, and Woodbine Southwest, which developed the nearby Kierland Commons on the Phoenix side of Scottsdale Road, want to develop a similar mixed-use project on the CrackerJax site.

"This is a fine project and will bring great value to the airport and the airpark," Mayor Jim Lane said.

Mike Withey, an attorney representing the Herberger family, said his client will be returning to the council with a rezoning request and site plan in the future, so the council will have a second chance to vote on the project.

Multifamily residential will be just one component of the project and it hasn't been determined how many units the project will include, he said.

"Kierland Commons only has 84 units," he said.

Withey said Kierland residents have not complained about noise from the airport.

Also, the proposal is in full compliance with all city and FAA land-use requirements, he said.

Airport Advisory Commissioner Stephen Ziomek told the council the CrackerJax property is in the path of helicopters flying below 500 feet.

"I would not want a helicopter coming over my head at 500 feet," he said.

Helicopters currently fly right past Kierland and there has never been concern from residents, Withey said, adding the helicopter route likely will be altered once the project is completed.

Vice Mayor Linda Milhaven said the acreage is outside the 55-decibel, day-to-night average noise level contour surrounding the airport, and that 55 decibels is the equivalent of a "quiet office."

Gary Mascaro, the airport's aviation director, said 55 decibels is an average, and that the actual noise level may be higher or lower based on a single event.

Last week, the council voted 6-1 to approve rezoning and other changes that will allow development of the Residences at Zocallo Place, a four-building, 240-unit apartment complex near the northwestern corner of Greenway-Hayden Loop and 73rd Street. Littlefield was the only no vote.

A third proposal for a 605-unit complex south of Hayden Road and west of Northsight Boulevard will be considered by the council at its Tuesday meeting. Sunrise Luxury Living, a multifamily residential developer, wants to develop a complex on the site, which was vacated by an auto dealership more than two years ago.

An issue in all three cases has been whether allowing residential in the airpark, which surrounds the airport, will constitute a violation of land-use policy approved by the council and the FAA, and therefore jeopardize existing and future FAA grants to the airport.

The FAA has stipulated that land use in the immediate vicinity of the airport should be restricted to "activities and purposes compatible with normal airport operations, including landing and takeoff of aircraft."

Mascaro said the FAA will be responding to Airport Advisory Commissioner John Washington's complaint about all three proposals for residential in the airpark, and the response will be reported to the council. Lane has asked for Washington's resignation for filing the complaint, saying it has "given rise to a serious concern as to (Washington's) motivation with respect to the city and the airport."

Earlier this month, the Airport Advisory Commission rejected all three proposals. The city's Planning Commission recommended approval of all three.

by Edward Gately The Arizona Republic Oct. 26, 2011 01:50 PM




Scottsdale approves 2nd plan for apartments near airpark