Scottsdale Arizona Real Estate Blog

by Michael Clancy – Apr. 24, 2008 12:31 PM
The Arizona Republic

The success or failure of two northeast Phoenix land auctions Wednesday will help dictate future sales and development in the area.

State Land Commissioner Mark Winkleman said the future of sales of state land in the area already is in doubt because of the economy.

“Given the status of the real estate market, both for commercial and residential, we do not expect to be very active in northeast Phoenix in the coming months,” he said. “It is possible that we will bring a couple of parcels to the market, but we will hold off on the vast majority of our land until the market stabilizes, which will take some time.”

The state owns vast acreage in northeast Phoenix, including the Paradise Ridge area east of 64th Street and the Azara area Cave Creek and Scottsdale roads from Pinnacle Peak to Jomax roads.

The land has been placed on “upcoming auction” lists several times but has never been scheduled for auction.

Three parcels that have been scheduled have had their problems. They are:

• A 400-acre parcel designated as “west of Desert Ridge,” situated near the Reach 11 Sports Complex. After three failures to attract bidders, the Land Department took it off the market.

• A 200-plus-acre parcel in Desert Ridge along Pinnacle Peak Road and 56th Street. The first attempt at a sale failed when no bidders registered at the auction. It was one of the auctions delayed until Wednesday.

“At least one party has continued to express the desire to bid,” Winkleman said. “I would be surprised if we have more than one bidder, and we may not have any.”

He would not identify the party. Arizona Village Communities was the applicant for the auction.

• A 112-acre parcel in Paradise Ridge, viewed as the trigger for development of the entire area east of Scottsdale Road and north of Loop 101, has been scheduled and rescheduled several times. The auction, originally scheduled for October, has been held up by protests and a lawsuit.

Although Westcor has a preferred right to the parcel because of work it did to prepare the land for auction, the Thomas J. Klutznick Co. has challenged the auction’s terms twice and filed a lawsuit when its second protest was denied.

The Land Department won the case.

Now that the parcel is coming to auction, Winkleman said, “several parties have made inquiries and expressed interest. We will just have to wait and see what happens. We might have a few bidders, and we might have no bidders. Only time will tell.”

Scott Nelson, a Westcor vice president, was evasive when asked whether Westcor would bid.

“We will be at the auction,” he said. “We will participate in the process and see what happens.”

Westcor would like the land even if its original plans are likely to change because of its new relationship with DMB Partners, a company developing the other side of Scottsdale Road.

The Klutznick Co. was likewise reluctant to state its intentions.

“With our role in the development of Desert Ridge and CityNorth, we’ve always had a strong interest in the Northeast Valley. Paradise Ridge is a natural expansion of that interest,” said Daniel Klutznick, company vice president.

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by Diana Balazs – Apr. 22, 2008 01:47 PM
The Arizona Republic

PARADISE VALLEY – A referendum targeting the recently approved Ritz-Carlton, Paradise Valley Resort is in circulation.

A citizens group called Preserve Our Paradise, would need 314 valid signatures of registered town voters to place the referendum on an upcoming ballot.

The group has until 5 p.m. May 12 to submit the signatures to Town Clerk Duncan Miller

On April 10, the Paradise Valley Town Council unanimously approved the mixed-use project.

It includes a 225-room Ritz-Carlton resort hotel, plus 15 1-acre home sites, 46 detached luxury homes on approximately half-acre lots and 100 patio homes, housed two to a building.Scottsdale-based Five Star Development owns the currently vacant 105-acre Ritz-Carlton site northwest of Scottsdale Road and Lincoln Drive.

POP officials said the group is not opposed to construction of a resort, but is opposed to what it deems as its high-density residential components, most specifically 100 patio homes of 8 units to an acre.

POP believes those units are akin to condominiums and not in keeping with the town’s traditional residential zoning of one house per acre.

It also believes the patio homes will increase traffic, air pollution, strain water resources, and detract from mountain views.

POP co-founder Mel Kowal said a number of people have stepped up to collect petition signatures and because of that, there may not be a need to hire professional petition circulators.

He declined to reveal how many signatures have been collected so far, but said the drive is well on its way.

POP is collecting signatures from 7 to 8 p.m. Wednesday through Friday outside the Paradise Valley Police Department, 6433 E. Lincoln Drive.

If the signatures are declared valid, the earliest a referendum vote could be held is the Nov. 4 presidential election.

The project could not proceed until the referendum is decided.

POP is using the expertise of a Scottsdale citizens group called Height and Density, which has collected signatures for a referendum on the Hanover apartment project planned for downtown Scottsdale. Those signatures have been challenged by the project’s developer and a hearing in Maricopa County Superior Court is set for Thursday on their validity.

If HAD’s referendum drive survives the court challenge, Scottsdale voters would decide on Sept. 2 if the Scottsdale City Council-approved 230-unit development for Goldwater Boulevard and Indian School Road is too dense and too tall for downtown Scottsdale

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by Peter Corbett – Apr. 17, 2008 12:00 AM
Arizona Business Gazette

A recent alliance between Westcor and DMB Associates will not derail Westcor’s plans to develop its Palisene project northwest of Loop 101 and Scottsdale Road.

When the partnership was announced March 5, there were concerns that the alliance would thwart retail development of Palisene because of competing retail development in the northeast Valley.

That includes DMB’s One Scottsdale project, just east of the Palisene site. Plus, CityNorth, two miles to the west in northeast Phoenix, and the Scottsdale Quarter, just east of northeast Phoenix’s Kierland Commons, two miles to the south.

Westcor intends to go forward with Palisene, said Scott Nelson, Westcor vice president of development.

“I’m not sure our vision drastically changes,” Nelson said. “It’s an exciting opportunity for both sides of the street to be aligned and complementary to one another.”

The alliance with DMB gives retailers predictability in that they can open in One Scottsdale in 2011-12, the time frame that many of them are seeking, he said.

One Scottsdale is planned for 1.8 million square feet on 120 acres, with offices, 400 hotel rooms and up to 1,100 residential units.

Dial Corp. is building its four-story headquarters at One Scottsdale. It will be the first component of the mixed-use development when it opens this fall.

State Land Commissioner Mark Winkleman said one of the challenges of developing the 112-acre Palisene site is that the winning bidder has to commit itself to an expense of $67 million for roads, utilities and drainage improvements for the area.

That cost, on top of a minimum bid of $32 million, could scare away some bidders, he said.

“At the end of the day, the project has to pencil out financially,” Winkleman said. “If you can’t get enough tenants and the land costs too much, then you don’t have a project.”

The marketplace, including potential bidders like Westcor, will make the determination on whether a development would be viable given the current costs, the land commissioner said.

Developers have recently been reluctant to buy some state trust-land parcels. Last week, no one bid at a state land auction for a 252-acre residential site southeast of 56th Street and Pinnacle Peak Road.

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by Andrew Johnson – Apr. 13, 2008 07:22 PM
The Arizona Republic

Scottsdale-based Wolff Co. is moving forward on a mixed-use project at Tempe Town Lake that eventually could house 3.6 million square feet of residential, office, retail and hotel space.

But South Bank’s buildings won’t arrive for several years. Wolff began street and utility work on the 27 acre site between Rural Road and McClintock Drive south of the lake in February. Actual construction will likely start in early 2009 and take place over eight years, spokesman Nick Quan said.

Wolff, which is working with development firm Barker Pacific Group and plans to work with joint-venture partners on portions of the project, is planning for 2.2 million square feet of residential development, 889,000 square feet of office space, 260,000 square feet of retail and 170,000 square feet of hotel space.

The company has not submitted site plans to the city yet.

Plans also include a central plaza, boardwalk, pier and park that would connect the project to Mill Avenue.

The first phase will include about 400,000 square feet of office and residential, which will include a combination of condos and apartments, Quan said.

Wolff is the latest commercial developer to target downtown Tempe.

SunCor Development Co. is behind Hayden Ferry Lakeside, a high-end office and condo project on 43 acres at the northeastern corner of Rio Salado Parkway and Mill Avenue.

Vestar Development Co. last year opened Tempe Marketplace, a 1.3 million shopping mall near Loops 101 and 202.

High-rise development is also taking place downtown, including WestStone Communities’ 26-story Onyx Tower condo project and its five-story Northshore condo development.

Despite an overall slowdown in commercial-real-estate activity because of tighter lending and less demand from users, many developers are planning projects for completion when they think the market will have bounced back.

Wolff bought the land for South Bank in August for $43 million from Pier 202 Tempe LLC, a joint venture between Laguna Pacific Properties and Barker.

The two companies had bought the city-owned land for $42.5 million in May.

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by Erin Zlomek – Apr. 11, 2008 08:00 AM
The Arizona Republic

The popularity of television home improvement shows is finally helping Arizonans understand the importance of staging when trying to sell their homes, Surprise resident Donna Jamison says.

Jamison launched her business, Wild About Staging, in northern California three years ago, but moved the outfit to Surprise at the beginning of this year.

Staging involves de-cluttering and reorganizing the furniture and accessories in a home that is for sale, and rearranging them in a simple fashion that has mass appeal to house hunters

Sellers recycle the furniture they already own to literally set a stage in each room, making sure to avoid anything that reflects their personal style.

“You’re trying to look at (the home) from a buyer’s perspective and draw them into the property. You really want (potential buyers) to feel comfortable and able to picture themselves living there,” Jamison said.

Though the practice is commonplace in California, where Realtors often pick up a stager’s tab, in Arizona, the practice is still catching on.

Jamison spoke with The Republic about the profession, what it entails and how it is evolving in the Valley.

Question: Why is paying for a professional stager a hard sell to Arizonans?

Answer: In California, it’s a given. You don’t put your house on the market unless it has been staged. There, Realtors typically pay for the service as part of their marketing. In Arizona, sellers are paying for it and they struggle with that. Here, sellers don’t want to dip into their own pockets. I’m amazed at how many people will pay a second mortgage before they hire a professional stager. If they spend just a little up front, they could be selling their house much quicker. Staging is always cheaper than a home’s first price reduction.

And in neighborhood communities where the houses look similar and have similar floor plans, you need help to make your house stand out and offer buyers a visualization of how your house could be their house.

Q: What are some of the biggest mistakes people make when staging their homes?

A: People generally know they have to get rid of clutter, but they don’t always do a good job of that. Because they live so close to the clutter, they don’t see it. I always advise clients to rent a storage garage beforehand so that they have space to put things.

Also, simply rearranging the furniture in your home is not staging,

Q: What is the most creative way you’ve recycled a client’s belongings and put them to a different use?

A: One of my clients had really pretty drapes, but they were a dark and heavy green. We kept the window valances up but took the drapes and used them as slipcovers for the sofa and love seat in the living room. With a few throw pillows the room really popped and it just looked great.

Q: How much do you typically charge for staging, and what other services do you offer?

A: The national average for staging homes is about 1 percent of the home’s listing price. However, that can go up depending on the number of rooms, or down if the house is pretty much vacant. For people that want to stage their home themselves, I do a consultation that costs about $350. I walk through the home with the client, take pictures, make recommendations and give a 30-page report on my evaluation.

I also do redesign, which is when you rearrange a home that’s not for resale. A lot of clients who ask me to stage their homes will also ask me to come to their new homes and set it up in a similar fashion.

Q: In your opinion, how much does staging factor into the final sale of a home?

A: It’s phenomenal. According to www.stagedhomes.com, 93 percent of homes staged by a professional stager sell within 33 days or less, and homes that are not staged are typically on the market 160 days or longer.

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by William Hermann – Apr. 3, 2008 12:12 PM
The Arizona Republic

 Cheryl Hornyan loved her big house in south Tempe but says she’s already fallen hard for a less-square-footage but “really fun, exciting lifestyle in the middle of everything” luxury condo in north Tempe.

Cheryl and husband Robert are selling their 3,500-square-foot home and have plunked $1.3 million down for a two-bedroom, 1,780-square-foot condo in Bridgeview, a newly completed 12-story tower on the south shore of Tempe Town Lake. It has stupendous views of the lake, including the bridges that span it, Phoenix, Scottsdale, Mesa and almost every mountain range within 50 miles.

Bridgeview is a $140 million building and the second condo tower developed by SunCor on Rio Salado Parkway just east of Mill Avenue. It’s next to the already-completed 40-unit, $34 million Edgewater condo tower and both are on the 17-acre Hayden Ferry Lakeside mixed-use site that also includes office space and retail. In May construction begins on the site for a luxury resort hotel. New Bridgeview residents like the Hornyans have just begun to move in.

“Robert and I think that at this time of our life – our daughters are grown – we’re ready to live in a place just like this,” said Hornyan, 50. “We can walk to Mill Avenue and all along the Town Lake; we’re close to great cultural attractions, we’ll be close to the light rail line and Robert’s commute is cut in half. Just that makes it worth it!”

The Hornyans aren’t the only ones who think the time is right to move to a place like Bridgeview. Nearly half the 104 Bridgeview condos were sold before construction was completed, said marketing project manager Meagan Jackman.

“People come wondering, then when they see the views, that’s it, they’re sold,” Jackman said. “Even in this tough market.”

Sales Manager Bob Normile said the main effect the present grim real estate market has had is that some potential buyers have had to wait longer than they wished to sell their current home before they could buy into Bridgeview.

“But when people ask if there is a glut of condos . . . well, there isn’t a glut of high-rise luxury condos like these.”

High-rise luxury condominiums came to downtown Tempe in 2002 when Orchidhouse opened on Mill Avenue with 83 units beginning at about $320,000.

Since then the Centerpoint project, a four-tower condo complex (two are near completion) has carved out a large section of the heart of downtown. Eventually the development will have more than 800 units with studios beginning in the mid $300,000s and larger units beginning at $1 million.

Normile said that while the term “luxury” tends to get associated with the high-rise condominiums, residents aren’t just the rich.

Occupants of Edgewater and Bridgeview are, Normile said, “Arizona State University professors, doctors, attorneys, business people and some out-of-state folks.”

“One thing they have in common is they want to simplify their life: no pool to clean, no recycle bin to roll out, no lawn to mow,” he said. “They want a place they can lock and leave.”

At least three other luxury condo projects could begin construction in downtown Tempe this year or next, said Chris Anaradian, Tempe’s development services director. He also said that Bridgeview and similar development is what makes it possible for the city to pay for the “many benefits” of Town Lake.

“Town Lake gives us recreation, flood control, quality open space and economic development,” Anaradian said. “We couldn’t afford the recreation aspects of Town Lake without the tax revenue from the economic development. Without the whole SunCor Lakeside development we’d still be arguing over whether Town Lake was a good idea in the first place.”

Bridgeview has one-, two- and three-bedroom residences starting at about $680,000 and 5,000-square-foot penthouse homes at about $5.6 million.

Hornyan said she and her husband think they have invested in a home that can only go up in value and one they will enjoy every day of their lives.

“You can’t beat the sunsets,” Hornyan said. “My husband and I sit out on the patio for hours and just look and look. And Fourth of July, with the big fireworks display over the Town Lake – our patio is already booked!”

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