Scottsdale Arizona Real Estate Blog

Michael Clancy
The Arizona Republic
Mar. 7, 2008 11:09 AM  Phoenix officials say it is impossible to speculate about the effect on the city’s bottom line of Wednesday’s announcement about One Scottsdale, a new office, home and shopping area being built at Loop 101 and Scottsdale Road, on the Scottsdale side of the city border.

The development, now shared by DMB Associates and Westcor, certainly will compete with nearby CityNorth, and could scuttle plans for another similar development just across the street, at Palisene.

“This will take time to work out,” said Deputy City Manager David Krietor, who oversees the city’s economic development department. “Paradise Ridge is a great piece of real estate that ultimately will be developed to the benefit of the city.”  Paradise Ridge is the 2,200-acre parcel of land on the west side of Scottsdale Road between Loop 101 and Pinnacle Peak Road. The first parcel to be sold, 112 acres, is the piece of land that Westcor calls Palisene. Westcor has preferred rights to purchase the property, currently scheduled for auction on April 30.

Whatever happens, Krietor says, the developments will be second in line behind CityNorth, being built at 56th Street and Loop 101 by Related Urban Development and the Thomas J. Klutznick Co.

He said he would not mind if something different from a high-end shopping area happened at Palisene and throughout Paradise Ridge.

“What would really help us is quality office and resort space to help us compete with other areas of the country,” Krietor said.

Paul Katsenes, deputy director of economic development, agreed that Phoenix has a head start.

“CityNorth has a two- to three-year jump on everybody,” he said.

In addition, CityNorth will be twice as large as One Scottsdale, he said.

Katsenes has little doubt that the area has wealth. Just look at the auto dealers along Scottsdale Road south of Loop 101 – Jaguar, Porsche and BMW, among others.

One Scottsdale’s research says the development sits “in the heart of Arizona’s opulence.”

“Within a three-mile radius,” which includes CityNorth, “the average household income is $110,292, and the project’s 10-mile trade area boasts more households with an average income above $100,000 than in Bal Harbour and Naples in Florida, The Hamptons in New York, Aspen in Colorado and Carmel in California.”

Katsenes says most of Phoenix’s remaining growth will take place within that trade area.

What he cannot speculate on is whether competition between two or more luxury destinations can be sustained. 

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