Phoenix Optima condo developer set for 3rd effort

Rendering courtesy of Optima The project will be called Optima Sonoran Village and will be located on nearly 10 acres at the northeastern corner of Camelback Road and 68th Street in Scottsdale, according to co-developers Optima Inc. of Glencoe, Ill., and DeBartolo Development LLC of Tampa.



The developer of two luxury-condominium projects in the Phoenix area said it has secured land and financing to develop a new project near Scottsdale Fashion Square.

The project will be called Optima Sonoran Village and will be located on nearly 10 acres at the northeastern corner of Camelback Road and 68th Street in Scottsdale, according to co-developers Optima Inc. of Glencoe, Ill., and DeBartolo Development LLC of Tampa.

Like its sister project, Optima Camelview Village, 7177 E. Rancho Vista Drive in Scottsdale, Optima Sonoran Village will be a multiphase residential project made up of tiered levels covered with greenery, the developers said.

Unlike the two previous projects, which include Optima Biltmore Towers, 4808 N. 24th St. in Phoenix, the next Optima project will begin as an apartment community.

Optima Sonoran Village's first, 210-unit phase will be developed by Optima Sonoran Village Phase I LLC, a joint venture between Optima, a multifamily-housing developer, and DeBartolo, a real-estate investment firm specializing in multifamily, hospitality, retail and mixed-use projects.

The first phase is scheduled to break ground in 2012 and begin leasing in 2013, the developer said.

Architect and Optima founder David Hovey said Optima Sonoran will be similar to Optima Camelview in that its architecture will be designed to blend in with the surrounding environment.

"Each residential unit will have a private, landscaped green roof terrace creating an indoor-outdoor experience for our residents and a dynamic visual esthetic for the development," he said.

Optima acquired the 10-acre site in July 2009. The company declined to provide estimated development costs, apartment sizes or monthly lease rates.

Optima Sonoran's initial phase will consist of a seven-story terraced building with 210 luxury residential units.

Eventually, five interconnected buildings will be linked by bridges with supporting commercial, retail and restaurant services, and over 5.5 acres of landscaped courtyards interspersed with pools, spas, water features and sculptures, the company said.

The entire project will be completed in five phases and may be converted to condominiums in the future, an Optima spokeswoman said.

Most luxury-condominium developers have been struggling lately, while upscale-apartment operators have been enjoying growth in occupancy and lease rates.

by J. Craig Anderson The Arizona Republic Nov. 24, 2011 06:42 PM




Phoenix Optima condo developer set for 3rd effort

74 downtown Phoenix condos purchased

A California real-estate investment group has purchased 74 unsold condominium units in the high-profile Summit at Copper Square project in downtown Phoenix for $12.7 million.

That works out to about $171,000 each for the units that initially were listed for between $300,000 and $1.2 million.

Still, Hadden Schifman, whose Scottsdale firm Vizzda tracks the commercial real- estate market in metro Phoenix, called the sales price "fairly strong." He noted that some documents pegged the liquidation value of the unsold units at $7.3 million.

Documents show that Howard Wu and Taylor Woods, both principals in Urban Commons LLC of Los Angeles, purchased the units from Scottsdale's Stearns Bank. Stearns foreclosed in July on an original $64 million note secured by the property.

Norm Skalicky, CEO of Stearns Bank, called the sale a "win-win" for both parties.

"The buyers got a great deal, and we were happy with the price," he said

The buyers did not return calls seeking comment on their plans for the property.

The 23-story, multicolored high-rise development, just west of Chase Field, was completed in 2006 at an estimated cost of about $65 million.

When completed, the tower at 310 S. Fourth St.was hailed as a major milestone in the redevelopment of downtown Phoenix as a residential hub.

W Developments LLC sold 91 of the 900- to 1,500-square-foot units at an average price of $415 per square foot before the housing market collapsed in 2008.

After that, sales dried up and the project was beset with lawsuits over unpaid bills. In late 2009, W Developments filed for Chapter 11 bankruptcy protection in an attempt to avert the Stearns foreclosure action.

W Developments was unable to put together a Chapter 11 reorganization plan acceptable to creditors. Stearns eventually took back the property.

The original lender was First National Bank of Nevada, which was declared insolvent and closed by the Federal Deposit Insurance Corp. in 2008. Records show Stearns purchased the note for an estimated $6.4 million.

by Max Jarman The Arizona Republic Nov. 18, 2011 12:00 AM



74 downtown Phoenix condos purchased

Scottsdale condo prices up nearly 5% as foreclosures fall

Here's a look at home and condo prices for Scottsdale in 2011. Click "Next" to view previous months.

by Peter Corbett The Arizona Republic Oct. 24, 2011 07:51 AM

Scottsdale condo prices up nearly 5% as foreclosures fall