Scottsdale Arizona Real Estate Blog

A $65 million, 369-unit apartment complex will be built north of Scottsdale Fashion Square, despite the objection by some nearby residents who fear it will create traffic problems and decrease property values.

With a 5-1 vote, the Scottsdale City Council cleared the way for Dallas-based JLB Partners to develop the nine-building complex on the 9.6-acre parcel near the southwestern corner of Scottsdale and Chaparral roads. Portales Corporate Center is to the east, Optima Camelview Village is to the south, and single-family residences are west and north of the site.

The council approved zoning stipulation modifications, amended development standards and a new development plan for the complex. Councilman Bob Littlefield dissented, while Councilwoman Lisa Borowsky recused herself because the developer is a client of her law firm.

“An empty lot is better than a bad project,” Littlefield said. “Crowding and traffic does not equal vibrancy. It’s not economic development, it’s crowding, crowding, crowding.”

John Berry, a zoning attorney representing JLB, said the developer owns the property and the financing is in place to build the complex. He also said the complex will attract older residents who earn more than $100,000 annually, and who will bring $40 million in spending power to the area.

“It’s not the Arizona State University student … who will be renting these,” he said.

Last Friday, Camelback Park Estates resident Patty Badenock submitted a legal protest seeking a supermajority 6-1 vote of the council for approval of the project. However, JLB was able to get enough residents to rescind their support for the protest and therefore eliminate it before the meeting.

“I had 40 percent of residents within 150 feet, and you only need 20 percent,” Badenock said. “Plus, I had 65 signatures from Optima Camelview Village, and quite a few other signatures beyond the 150 feet within my own neighborhood. I believe when you do a legal protest, it should be irrevocable.”

Berry said the signatures were gathered in January and February, and that since then JLB has been addressing residents’ concerns, and many have since decided to back the project.

“Even if that legal protest had been in place tonight, we would have still won because we got three-quarters of the council tonight,” he said.

The maximum building height of the complex will be 50 feet, while both Portales Corporate Center and Optima Camelview are 65 feet. The buildings along the west side of the property nearest single-family residences will be two stories.

Primary access will be off Goldwater Boulevard and secondary access off Chaparral at 70th Place.

Bhabi Shah, a homeowner west of the site, said the complex is going to attract younger tenants who want to party, and not older, more stable tenants. Chris Layman, who also lives west of the site, said traffic congestion will be a problem, and he’s worried about the long-term impact of having a rental complex in the area.

Wayne Gillis, an Optima Camelview resident, presented a petition signed by 36 residents in support of the complex.

“We embrace urban living,” he said.

Vice Mayor Linda Milhaven, who made the motion for approval, said the project is less than what the existing zoning allowed, so there’s no reason for the council to delay it.

Average U.S. home prices — down by a third since 2006 and still falling — will rise almost 4% a year for the next five years, according to a new forecast.

Market watcher Fiserv sees prices stabilizing by summer’s end and then climbing, quickly in some places until gains taper off. The forecast is based on an analysis of leading home price indexes.

Investors will drive much of the momentum, as they are now in cities such as Las Vegas and Phoenix.

First-time and trade-up buyers will eventually follow.

Separately, market researcher CoreLogic said Tuesday that U.S. home prices rose 0.6% in March from February, the first month-over-month increase since July.

Good affordability and declining inventories are key factors.

Conventional mortgage payments now account for just 12% of median family incomes vs. a historical norm of 20%, says Fiserv economist David Stiff.

The Fiserv forecast, done with Moody’s Analytics, assumes steady economic growth with no major shocks. Markets hardest hit by foreclosures will show the biggest five-year increases in home appreciation, it adds.

Six of the 10 markets where annualized prices are expected to rise most over the next five years had price drops of more than 50% from their peaks.

Las Vegas, for instance, is 61% off its 2006 peak.

Meanwhile, Realtor.com says Florida has more cities than any other state that show the strongest signs of a housing recovery.

Each quarter, the real estate website assesses housing data, including changes in list prices, inventories of homes for sale and local economies.

Phoenix, Miami and Orlando are the top turnaround cities in its study, based on those markets’ improvements in the first quarter compared with a year earlier.

Asking prices are up more than 20% in Phoenix and Miami, says Realtor.com. Inventories are down more than 40%.

Naples, Fla., and Boise are also climbing in the rankings.

New to the list of top 25 markets are Oakland and San Jose, which are benefiting from growth in the tech industry.

The continued performance of local markets will depend a lot on the economy as well as on how quickly lenders dispose of distressed homes, says Realtor.com CEO Steve Berkowitz.

Realtor.com is owned by Move, which operates a network of real estate websites.

RED Development has added to its recent acquisitions by purchasing the Borgata of Scottsdale shopping center for $9.15 million from Macerich Co.

The Borgata at Scottsdale Road and Rose Lane is a specialty center built in 1981 to resemble the Italian village of San Gimignano. It offers 94,000 square feet of retail space, including the Blanco Tacos and J. Alexander’s restaurants and the Dolce Salon and Spa.

“We are very pleased to have acquired this well-situated and high-quality property in Scottsdale, a tremendous market for retail performance,” said Mike Ebert, RED managing partner.

RED Development, based in Phoenix, has been actively acquiring property in addition to developing CityScape in downtown Phoenix.

Last month, RED Development and Cole Real Estate Investments teamed up to buy Macerich’s 50 percent stake in the Chandler Village Center and Chandler Festival power centers for $45.8 million.

RED also bought the Shops at Prescott Gateway and the Aspen Place at the Sawmill retail center in Flagstaff within the past year.

The Borgata acquisition is part of RED’s growth strategy, Ebert said.

“We look forward to working with the unique retailers and restaurants at the property and applying RED’s creative approach to the future of the real estate,” he said.

The Borgata has vacancies, but RED Development declined to disclose its occupancy rate at the time of the sale. The deal closed earlier this week.

It did not include the nearby Shops at Hilton Village, on the opposite side of Scottsdale Road from the Borgata, which Macerich also manages. Macerich, of Santa Monica, Calif., is the parent company of Westcor, the Valley’s largest mall developer and operator. Company executives could not be reached for comment.

The tenant lineup at a beach club-anchored complex in downtown Scottsdale’s entertainment district is quickly taking shape with the addition of a neighborhood sports bar and a modern Western saloon.

Numerous conditional-use permit applications have been submitted to the city in connection with property owner Shawn Yari’s Scottsdale Retail Plaza, to be built on the block that housed Myst nightclub on Shoeman Lane and Suede restaurant and bar on Indian Plaza.

The complex should be completed by the end of the year.

Yari is seeking bar and live-entertainment permits for the Beach Club, which will include a 9,700-square-foot indoor bar and 17,600 square feet of outdoor pool and patio areas. The club will be in the center of the complex.

A three-tenant building on the eastern side will house Les Corieri’s latest venue, Munchbar, and Riot Hospitality Group’s latest, Whiskey Row. Corieri is seeking a bar permit, while Riot Hospitality Group is seeking bar and live-entertainment permits.

Les and Diane Corieri owned Myst and Suede, which will be demolished to make way for the complex. Munchbar will cater to patrons seeking a sports bar/corner bar atmosphere, said Randy Grant, who submitted the applications on Corieri’s behalf.

“It’s just very attractive to be in a redevelopment project,” Grant said. “The buildings that are there have been there 45 years and there’s some excitement to being in something new and fresh.”

Whiskey Row will be a “modern take on a country-western bar with a little Southern hospitality,” said Mike Troyan, co-owner of Riot Hospitality Group.

The group also owns El Hefe Super Macho Taqueria. The live entertainment at Whiskey Row will be a “little of everything, from dance to acoustic shows, DJs, even comedic performances,” he said.

The complex also will have a separate building with a restaurant and bar, along with retail space on the western side.

An 11-acre redevelopment site for a planned hotel and condominiums in downtown Scottsdale was sold last week at a trustee sale for $30 million.

AZ-Waters Edge LLC submitted the only bid and will take title of the land northeast of Scottsdale and Camelback roads, said attorney Lawrence Petrowski of Stinson Morrison Hecker LLP, the trustee.

Scottsdale Canal Development LLC, which started assembling the property along the Arizona Canal in 2006, had planned a 240-room Solis Scottsdale hotel and 140 condos on a site that now includes a SRP substation.

“It’s a huge disappointment,” said Mark Madkour, Scottsdale Canal Development principal. “It was a huge amount of effort, time and money.”

Madkour and his investors lost millions of dollars on what was to be a $600 million project.

IMH Financial Corp. of Scottsdale foreclosed on the property in May 2011. AZ-Waters Edge is affiliated with IMH Financial. IMH principals include venture capitalist William Meris as well as Steven Darak, Brian Peterson and James Abood.

Scottsdale Canal Development also lost ownership of a site at 68th Street and Indian School Road it had intended to use for the relocated Salt River Project substation, Madkour said. It paid $7 million for the property.

 Home sales up, prices flat

Scottsdale home sales in March were up 16.5 percent from a year ago and the median price as flat at $360,000, according to Arizona State University’s monthly housing-market report.

Sales activity was up across most of the Northeast Valley with a 41 percent increase in Paradise Valley and 52 percent in Cave Creek. But median prices dipped 6.7 percent in Fountain Hills and 15 percent in Cave Creek as well as 25 percent in Paradise Valley to $824,000.

The Valley’s median price was $134,000, up 20 percent from last March.

Scottsdale’s 592 home sales for March showed a 3.4 percent increase in average price per square foot to $178.06, according to the latest report from ASU’s Center for Real Estate Theory and Practice in the W.P. Carey School of Business.

The lower end of the housing market with prices below $250,000 has seen a steep drop in available homes, but there is a better supply at higher prices, which includes much of the Scottsdale market.

“The very low number of inexpensive homes available for resale means more buyers are considering purchasing new homes as an option,” said Mike Orr, real-estate center director. “This signals the start of a distinct upward trend in new-home sales.”

Scottsdale’s condominium and townhouse market saw a 5 percent dip in sales, but the average price jumped 11 percent to $228,093.

 State extends deadline

Westcor has again deferred its lease payment until May 31 for 112 acres of state trust land northeast of Scottsdale Road and Loop 101, according to Vanessa Hickman, deputy state land commissioner.

The Valley mall developer owed the Arizona State Land Department $2.2 million by April 30 for the site, which has long been planned for a regional mall.

Westcor made $1.26 million in lease payments through 2010 but deferred its payments in January and December 2011.

In April 2008, Westcor bid $32 million for the site to secure a 99-year lease and agreed to invest $67 million in improvements.

Westcor’s parent company is Macerich, based in Santa Moncia, Calif.

State Land Commissioner Maria Baier has the discretion to defer lease payments for up to five years.

Dirt could begin flying this month on the Mountain View Trail near 124th Street and Shea Boulevard.

The path eventually will link Stonegate Equestrian Park south of Shea with a trail in the McDowell Sonoran Preserve near the Lost Dog Wash Trailhead.

On Tuesday, the City Council is expected to approve a $727,000 construction contract with Okanogan Trail Construction to blaze most of the trail. The Cave Creek-based company also completed the Tom’s Thumb and East End trails in the preserve.

 3 segments

Mountain View Trail would be open to pedestrians, equestrians and bicyclists. It is divided into three segments, two of which could open this year.

In the vicinity are three schools — Desert Mountain High School, Mountainside Middle School and Anasazi Elementary School.

To take advantage of summer break, crews would focus initial efforts on a segment from Sahuaro Drive and 124th Street north to the trailhead, city project manager Robin Rodgers said.

“There are two schools with ingress and egress on 124th Street, and we are very much aware of the heavy traffic volumes in that area during morning and afternoon hours,” she said.

Okanogan plans to sequence its work to reduce traffic impacts and coordinate lane closures around school schedules.

To shorten construction time, crews could work simultaneously on a second segment in a residential neighborhood from Stonegate Park north to Mountain View Road, then east and north to the Central Arizona Project canal at 124th Street.

Construction is expected to last about four months.

 Middle segment delayed

Due to engineering and right-of-way challenges, Scottsdale has delayed construction on the middle segment between the canal and Sahuaro Drive.

“Because of lack of funding to construct and not knowing what the timetable would be, I felt it more appropriate to devote our resources to the two constructable areas,” Rodgers said.

The city’s Bond 2000 program earmarked about $2.3 million for trail connections, including Mountain View.

City officials are looking into other funding sources for the last segment, including grants and a bond question.

Hikers, mountain bikers and horse riders have a multitude of options to choose from to access Scottsdale’s McDowell Sonoran Preserve.

Since 2000, the city has introduced seven trailheads throughout the 21,000-acre expanse, which is home to stunning views, cacti forests and diverse wildlife in and around the McDowell Mountains.

By late 2013, the preserve could welcome an additional four trailheads, starting with the $3.3 million Tom’s Thumb Trailhead on the northern slopes of the McDowells. The Fraesfield Mountain and Granite Mountain trailheads are set to open in late 2012 or early 2013 on land north of Dynamite Boulevard. The largest of the planned trailheads, Brown’s Ranch, could debut in late 2013 a little over a mile north of the intersection of Alma School Parkway and Dynamite Boulevard.

Here is a look at Scottsdale’s existing trailheads:

Gateway Access Area

18333 N. Thompson Peak Parkway

The city’s largest trailhead, opened in 2009, has parking, restrooms and a wheelchair-accessible nature trail. The Gateway is home to the city’s most popular hike, the Gateway Loop Trail, which passes over the Gateway Saddle with views of the McDowell Mountains and surrounding desert.

Lost Dog Wash Trailhead

12178 N. 124th St.

The city’s first major trailhead boasts a building and parking area designed to blend in with the surrounding desert. Hikers can connect to the nearby Sunrise, Ringtail and Taliesin trails.

The Sunrise Trailhead

12101 N. 145th Way

This minor access point into the preserve opened in 2005 as a symbol of the work accomplished since voters approved the preserve’s creation in 1995.

WestWorld Trailhead

 5939 N. 98th St.

This trailhead, which connects to the preserve via the WestWorld trail to the Quartz or Taliesin trails, has horse-trailer parking, a ramada and restrooms.

Quartz Trailhead

10215 E. McDowell Mountain Ranch Road

Located southwest of McDowell Mountain Ranch Road and 104th Street, the access point with limited amenities connects to the preserve via the Quartz Trail.

Ringtail Trailhead

12300 block of North 128th Street

The trailhead has parking in an undeveloped area on west side of 128th Street North of Cactus Road.

104th/Bell Road Trailhead

This small trailhead has limited amenities North of Bell Road at 104th Street.

Tom’s Thumb Trailhead

128th Street South of Rio Verde Drive

Temporary parking exists at the site before the formal trailhead debuts later this year. It will have paved parking and access the existing Tom’s Thumb Trail and future Marcus Landslide Trail.

Home construction in Gilbert continues to outpace every other Valley municipality, and the town is on track for its most robust year in new-home permits since 2006.

Several new and existing subdivisions around Gilbert are experiencing a flurry of activity as homebuilders look to capitalize on a rebound in the housing market.

Nearly every Valley community has seen a significant jump in permit activity during the first few months of the year, but nowhere is the spike more pronounced than in Gilbert, according to data produced by the Home Builders Association of Central Arizona.

The town has issued 981 single-family home permits this year, compared with 437 permits during the same four-month period in 2011. Gilbert is on pace to issue almost 3,000 permits this year, which would nearly triple its total from two years ago.

A lack of inventory for resale houses is driving more real-estate agents to point prospective buyers toward new homes instead, Pulte Homes spokeswoman Jacque Petroulakis said.

“Overall, the Southeast Valley is seeing a lot of activity and buyer confidence in terms of real estate,” Petroulakis said.

Pulte Homes is selling houses in two partially built subdivisions in Gilbert: Stratland Estates and Lyon’s Gate. Both communities have seen an increase in traffic over the past six months, and the company has sold about twice as many homes as expected during the past three months, Petroulakis said.

Meanwhile, prices for the new homes have increased slightly with the rise in demand, she said.

Gilbert’s sprawling Power Ranch community near Power and Germann roads has been one of the most active in home construction, according to town records. Gilbert issued 56 home permits for Power Ranch in April, more than any other subdivision.

About two dozen other communities, mainly in the town’s southern region, were issued single-family permits in March and April, records show.

The vast majority of home permits result in a finished house with occupants, Planning & Development Services Manager Kyle Mieras said.

“I don’t think we have many that are sitting vacant,” Mieras said. “Builders aren’t really building spec homes right now.”

With Gilbert’s average household size just over three people, the new homes could end up drawing several thousand residents over the next several months.

Homebuilders’ construction plans are reviewed by nearly every town department to analyze the effect on traffic, schools and municipal services. Although it is rare for the town to reject a proposal,

developers often work with officials and nearby residents to make changes to plans before they are approved by the Planning Commission, Mieras said.

In addition to single-family construction, at least three apartment plans are in Gilbert’s pipeline that would result about 900 total units. There are now about 7,200 apartments in Gilbert.

About 95 percent of the town’s housing inventory is single-family detached residences, according to the General Plan. A Maricopa Association of Governments report estimated there were about 74,000 homes in Gilbert in 2009, but the report suggests that number could grow to 92,000 in 2020 and 109,000 in 2030.

From 1996 to 2006, Gilbert issued more than 3,000 home permits every year but one, according to U.S. Census Bureau statistics. In 2004, that number peaked at 5,071.

Then the recession put the kibosh on speculative construction, and the number of residential permits issued plummeted to 1,109 in 2008 before rebounding to 1,275 in 2009.

 By the numbers

Gilbert has issued more than twice as many permits through the first four months of this year as compared with the same period in 2011.

 2012

January: 149.

February: 262.

March: 286.

April: 284.

Four-month total: 981.

 2011

January: 63.

February: 88.

March: 135.

April: 151.

Four-month total: 437.

Around the Valley

Permit numbers suggest more homes are being built in Gilbert than any other Valley municipality. The town has issued about twice as many permits in 2012 as Phoenix, which has issued the second most. Here are some municipalities’ totals for the first quarter of 2012.

Gilbert: 697.

Phoenix: 347.

Mesa: 163.

Glendale: 71.

Chandler: 181.

Scottsdale: 64.

Goodyear: 201.

Queen Creek: 42.

New communities planned

The Gilbert Planning Commission has recently approved plans for several communities in Gilbert, including the following:

Marbella Vineyards

Date approved: April 4.

Description: The second phase of an existing community near Higley and Ocotillo roads, the project will include about 300 homes.

Santanilla

Date approved: April 4.

Description: The project includes plans for about 80 homes on the west side of Higley Road south of Riggs Road.

The Bridges East.

Date approved: March 7

Description: Plans include about 850 single-family homes in a master-planned community near Recker and Ocotillo roads.

Cooley Station North

Date Approved: Feb. 1

Description: The project will add about 70 homes to the Cooley Station subdivision near Recker and Warner roads.

SCOTTSDALE – The announcement that P.F. Chang’s China Bistro Inc. will go private in a $1.1 billion acquisition by a New York investment firm was the second hit to metro Phoenix’s corporate headquarters list this week.

If the deal goes through, the chain of Asian-themed restaurants no longer will operate as an independent firm or one owned by public stockholders. P.F. Chang’s board has sanctioned the transaction, which was announced Tuesday. But shareholders will need to agree to sell at least about 83 percent of the company’s stock to acquirer Centerbridge Partners, a New York investment firm.

The transaction also is subject to approvals by the Federal Trade Commission, the companies announced.

On Monday, Scottsdale-based RSC Holdings was merged into United Rentals of Connecticut in an unrelated transaction. A spokesman for United Rentals said the economic impact of the previously announced deal, including changes in local employment, haven’t been determined.

Other deals are possible. For example, Tempe-based US Airways has expressed interest in merging with American Airlines in a transaction that could result in the combined firm locating to American’s home in Fort Worth, Texas. Even Freeport-McMoRan Copper & Gold, Arizona’s most profitable company, has been rumored to be an acquisition target.

US Airways and Freeport-McMoRan both rank among the state’s 20 largest corporate and non-profit employers, according to a study by The Arizona Republic.

Excluding P.F. Chang’s and RSC Holdings, the state now counts only 41 public companies with local headquarters, according to a separate Republic analysis, down from more than 70 five years ago and more than 100 in the mid-1990s.

“For a very large city with a very large population, we have an inordinate number of companies that operate here but aren’t headquartered here,” said Harry Papp, managing partner at Phoenix investment firm L. Roy Papp & Associates.

P.F. Chang’s ranks as the 84th largest employer in Arizona with more than 1,600 employees here, according to The Republic. Its stock-market capitalization of $1 billion puts it among the state’s most highly valued corporations.

“We are excited about this transaction with Centerbridge, as it recognizes the value of P.F. Chang’s highly respected brands and talented employees, while providing our stockholders with an immediate and substantial cash premium for their investment,” said Rick Federico, the company’s chairman and CEO, in a statement.

“We are confident that being a private company will provide us with greater flexibility to focus on our long-term strategic plan of elevating our guest experience, enhancing our value proposition, growing traffic and improving the performance of our brands.”

Company officials declined to comment further.

P.F. Chang’s has been the focus of industry speculation over the past year that it may sell to a private-equity investor.

In October, Federico acknowledged that the company had been struggling with falling sales and customers’ perceptions that its menus were overpriced. But he said the company preferred to solve the problems on its own instead of seeking a buyer or outside investor.

Separately, the company on Tuesday reported a disappointing first-quarter financial result, with net income falling to $6.3 million or 30 cents a share from $10.6 million or 46 cents a share one year earlier. Total revenue rose slightly to $318.9 million in the latest quarter from $317.4 million in the first quarter of 2011, but comparable-store sales dipped.

Stock-market analysts tracked by Zacks Investment Research were expecting a profit of 36 cents a share on average for the company.

P.F. Chang’s can solicit better offers through May. However, Stephen Anderson, an analyst with investment firm Miller Tabak, said in a widely quoted note to clients that he didn’t anticipate other suitors.

While the employment impact hasn’t been announced, the Valley took a prestige blow from both announcements.

“Landing a corporate headquarters is the crown jewel of economic-development programs,” said John Boyd Jr. of the Boyd Co., a site-selection consulting service in Princeton, N.J.

Losses can be more painful. It’s not just employee counts that matter when companies change headquarters.

“You get a lot more when the strategic thinkers and the investor-relations, finance, human-resources and other top corporate people are in your community,” said Barbara Barrett, the new interim president of the Thunderbird School of Global Management in Glendale.

In an interview Monday, she called the corporate headquarters of Freeport-McMoRan and US Airways “among Arizona’s greatest assets.”

Corporate headquarters also bring high-salaried executives to an area and boost business for retailers and suppliers as well as service providers such as law and accounting firms. When there are people entering or leaving the local market, that can affect real-estate prices. Museums, foodbanks and a slew of other non-profit groups also depend on corporate donations.

“Employees who live here go to the opera or ballet and use the local services,” said Papp, who sits on the boards of the Phoenix Zoo, the Arizona State University Foundation and other non-profits. Acquiring companies often are generous to philanthropy but typically not as generous as corporations based here, he said.

Though the Valley appears to have taken a step backward in terms of the P.F. Chang’s and RSC Holdings developments, Boyd said he still rates the area favorably for attracting and incubating businesses. Among the factors he cites include moderate corporate and personal income-tax rates, affordable real estate and a competent labor pool.

One plus for Arizona, he said, is a good location for international trade on a major highway route running from Mexico to Canada. Another plus: the potential to lure companies from California, which Boyd describes as having a relatively unfriendly business climate.

A condominium complex under construction west of Scottsdale Fashion Square could include an 11-story building along Camelback Road and hundreds of additional units.

The Scottsdale Planning Commission on Wednesday recommended City Council approval of an amended site plan, amended development standards and a downtown infill-incentive district application for Optima Sonoran Village, at the southeastern corner of Camelback and 68th Street.

The complex is being developed by Optima, which has developed properties in Arizona and. Illinois. It also developed the Optima Camelview Village condominiums at Scottsdale Road and Rancho Vista Drive.

The requests seek an increase in maximum height from 65 feet to 129 feet to increase the building along Camelback to 11 stories from seven, said John Berry, a zoning attorney representing Optima. The requests also would increase the number of units from 493 to 781.

“That building was chosen (for greater height) because it was farthest from the neighbors, so from the beginning we were sensitive to the neighborhood’s concerns,” he said. “We also increased the open space a little bit from the prior approval, but all of those essential elements stayed the same.”

The complex descends in height toward the south, with the lowest buildings adjacent to single-family residences.

Although the project is being built as condominiums to be sold, units will be rented, Berry said.

“They’re (Optima) in the business of building luxury condominium units and that’s what they’re doing here,” he said. “Until the market for luxury condominiums gets even stronger, and it’s improving now … in the meantime, they’ll be renting them until the opportunity to sell them gets even better.”

At its April 11 meeting, the commission postponed consideration of the requests until April 25. At the previous meeting, some nearby residents were ready to speak in opposition to increased height and density.

Optima requested the continuance to work with nearby residents and address concerns. As a result, there was no opposition at Wednesday’s meeting.

“The developer made a concerted effort to listen to the neighbors, and … to come up with solutions that address their concerns,” Berry said. “The solutions discussed include mainly landscaping … to help shield the adjacent buildings.”

Paula Christensen, a nearby resident, thanked Optima for working with neighbors.

“There were many obstacles overcome,” she said. “We know David Hovey (Optima president and owner) will honor his pledges.”

The first phase, which is on the east side of the property, is now under construction and should be completed in 2014, Berry said.

“The second phase would be the building along Camelback,” he said.

Commission Chairman Michael D’Andrea said Optima is a great revenue generator and builds great projects for the city.

“They’re a world-class developer and they finish their projects when others packed up and left,” he said.

The proposal still must be approved by the City Council.