Urban Living On The Rise

Have you noticed all the construction around town recently? Scottsdale and Paradise Valley don’t really have much land to expand into. Sure there are lots here and there but there’s not really enough space to build major subdivisions any longer. Except of course if that subdivision is an apartment building.

At the very start of 2012 I made some predictions regarding the real estate market. One of those was that the desire for urban living would keep increasing. See http://martawalsh.com/north-scottsdale/predictions-for-scottsdale-and-paradise-valley-real-estate-in-2012/

Urban Living Will Gain Popularity

One of the things I have noticed in addition to the demand for smaller homes is the wish amongst clients to be closer to the action. To experience more of an urban city style of living.

Some of the developments in and around Scottsdale Waterfront had the misfortune of really selling right at the top of the market. The result has been many, many distressed properties hitting the market and generally confusing consumers about the entire area.

Last year many of those distressed properties finally cleared out. Developments like the Waterfront Residences and Optima Camelview are starting to really come to life again.

Builders are beginning to bet big on the future demand for apartment living.

Yesterday I attended a class with Bill Gray of Arizona School of Real Estate & Business he noted this new trend of building and listed out some of the projects of note in the Valley.

New Apartments Under Development

Optima Sonoran Village

In the classic Optima style of glass, steel and grenery this building sprung up fast on the corner of 68th and Camelback.

77 stories high with 210 total units. For now it’s all leasing with prices starting at $1,200 a month.

Broadstone at Lincoln

It’s kind of hard not to notice the timber framing going up on the corner of Scottsdale Road and Lincoln. Some people are excited about this development, other have concerns about the blocking of some camelback views.

It’s set to be 264 units. Built on the site of former vacant medical plaza it will be tiered one, two, three & four story buildings. With 22,500 square feet of retail space. The construction is being handled by Alliance who are also building Broadstone at Scottsdale waterfront.

 Broadstone at Scottsdale Waterfront

Right across from my office on that vacant piece of land sandwiched between the Nordstrom parking garage and the canal. Construction is starting on another multi use project. 259 high rise apartments paired with 10,000 square foot of retail space.

That area around Waterfront is only going to get more and more vibrant. More foot traffic for retail. More dining options.

Other projects in the works include.

Borgatta luxury condo’s – conversion from retail space to luxury condo’s.

Portales Apartments – north of Fashion Square.

Blue Sky - A $135 million, 13-story apartment complex to be built east of Scottsdale Fashion Square, near the current safari building. 13 stories is tall for Scottsdale. And at 700 units that’s no small development. More info.

Liv North Scottsdalewww.livnorthscottsdale.com - In their own words “Located in the hub of North Scottsdale, Liv offers what an active urbanite craves: Access. Whether you need to work or play, you’re within minutes of everything that matters. Liv apartment homes showcase inspired amenities, an exclusive rooftop lounge, spacious floorplans, and seamless technology.”

The Jefferson at One Scottsdale –  Over 700 multifamily units just north of the 101. By the Henkel building. “Jefferson at One Scottsdale will be the premier luxury multi-family project in north Scottsdale to meet a growing demand for upscale housing in this submarket, which is a major employment center for the region,” Gus Villalba, TDI’s executive vice president and an investment partner, said in the statement.

Conclusions

Population predictions for Phoenix metro continue to be strong. The job market is back.

Average age of the population is 35.4 years. Builders are betting big that these factors will  lead to increasing demand for these types of multifamily homes. Infill projects are all the rage right now and will have a big impact on the rental market. I see asking price per square foot of these projects steadily rising. This should have a knock on effect for already completed projects like The Waterfront Residences and Optima Camelview. The only risk factor being the builders have over estimated demand.

 

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