It’s not about being close to work, it’s about a life-style. At least that’s what many apartment developers are counting on – especially “south Scottsdale”, including “Old Town”. Scottsdale defies tradition. Developers, typically build apartments in areas where jobs exist or are being created. While there are some jobs, most of the new apartments are being built primarily for the Millennials – especially the Generation Y segment of the population seeking a particular life-style in locations with high “walk scores”. Surprisingly, many of the tenants are also “boomers” – seeking a lock and leave ability plus the convenience of nearby shops, restaurants and highly frequented retailers.
In Scottsdale, as of the end of the 1st quarter 2014, there were 6 apartment projects under construction representing 1,624 units and 30% of all apartments under construction in metro Phoenix. Alliance Residential Co.’s “Broadstone” communities lead this trend. They recently completed their 264 unit project at Scottsdale Road and Lincoln and have three similar projects being built in the heart of downtown Scottsdale, one on the ‘Waterfront’ (259u) and two just east of Scottsdale Road on Stetson Drive (316u combined). JBL is also building a 240u, upscale community (Portales Place) just north of Camelback Road and west of Goldwater Blvd. Each of these communities will have underground parking, posh interiors, upscale community attractions in a high-rise setting. These projects differ from the more traditional, spread-out luxury projects with surface covered parking such as the Mark Taylor community being built just east of Skysong called ‘San Travesia’ (440 units).
The current construction is just a part of the new activity. There are 15 additional apartment projects (3,525 units) in various stages of the zoning / plan approval process spread-out between north and south Scottsdale. Condo projects are also starting to gain traction. For example, Optima’s ‘Sonoran Village’ at 6895 E Camelback Road, is a 781 unit, 11 story condo complex that will initially be used as rentals. Deco Communities recently announced the plan to build a 90 unit condo project (Envy) at 4422 N 75th Street, in downtown Scottsdale. With the likely success of all these projects, we’re bound to see more.
Jim Kasten, CCIM
Owner / Designated Broker
Kasten Long Commercial Group
2821 E Camelback Road, Ste. 600, Phoenix, AZ 85016
602 677 0655