New Mediterean Community Coming to Surprise

New Master Planned Community Coming to Northwest Valley

Looks like Surprise is going to get a shot at a new construction mediteraean village from Chicago based Terrapin Properties. Bellazano is set to break ground in early 2008 and will offer 444 condos on 28 acres of property near Grand Ave and Parkview Place . That puts it squarely between three golf courses by the way!
What makes Bellazano different from other Surprise communities will be the lush open spaces in and around the community. Dog parks, walking paths and colorful landscaping, along with ramadas, barbeques and fire pits will create a great a beautiful environment that will invite residents outdoors for walks, swimming or socializing. Amenities will include a 6000 sq ft clubhouse with kitchen, billiards, library, and theatre room. The floor plans (there are nine) will range from 1140-1916 sq ft. Living spaces will all be on one level and some will come with enclosed 2 car garages.
Surprise is still an outlying area so prices are always good, but retail development is on the rise with restaurants and shops moving in. Bellazano homes start in the $190’s.

Reservations are currently being taken at Bellazano and the deposits are a steal for pre-construction. Contact WeKnowUrban directly for more information on this, or other urban projects.

One Guy’s Opinion

A lot of negative things are being said and written about the light rail in general and all the urban development that has been planned or built over the last four years but I gotta say that I really like the direction that this city is going. Have mistakes been made? Absolutely. Are we still a long way off from achieving pedestrian friendly dense neighborhoods? Yep. But, take a drive along the rail route (do it on the weekend or else you’ll lose your mind waiting in traffic) and check out great developments like Century Plaza and Portland Place. Slow down and admire the architecture of Chateaux on Central. Swing by Summit at Copper Square. These are all fantastic projects and really add to the city.

I’m not saying that we don’t have a lot of problems on the horizon. After all, it’s clear that there are not enough buyers for the units being built. We have excess inventory that will most likely take five or more years to absorb. But, if it hadn’t been for the crazy market of 2003-2005 we may never have seen buildings like those mentioned above. The positive fundamentals of our city will eventually solve all the current problems and we will have a better city for it.

Change of Mind On 44 Monroe

OK, I absolutely HATE to admit it but I really do like the style of 44 Monroe.
I don’t know why I have had such a negative opinion of the project (maybe it’s the way the developer sold it one way and then switched directions under the initial buyers, maybe it’s the peculiar and potentially risky way they financed it, or maybe it’s because I stuck my foot in my mouth in the past and predicted that it would never be built…..oops). Anyway, what a sexy looking building. I love the color of the glass, I love the fact that it’s not a box but instead has a lot of angles and curves, and I like what it’s added to the Phoenix sky line.

Downtown Chandler development moving forward

I stopped into Downtown Chandler today to check the progress on the redevelopment of the city center. Here are some photos of the progress at 123 Washington. 123 Washington is wrapping up construction and they expect all the homes to be ready for move in by Sept-Oct of 2007. There are currently 12 two story and 10 three story townhomes available.

No developer wants completed homes sitting around waiting to sell so they are showing a willingness to make deals on the final close out. Prices range from the $280’s to the $330’s but incentives are being offered to the tune of $5,000 off. Each home comes with a 2 car direct access garage and a minimum of 2 bedroom and 2 baths. Not a bad deal considering this is the first project in a rapidly changing area of Chandler. Shops and dining are in walking distance as well as the Chandler Center for the Arts.

Across Arizona Ave. from 123 Washington, construction has picked up pace at San Marcos Commons . These townhomes expect to start delivering early in 2008 and sales are pretty good considering the current market. Prices are a little higher, starting in the $290’s and topping out in the $420’s.

All the redevelopment is part of a master plan to turn Downtown Chandler into a true city center. Projects will run from Chandler Blvd all the way down to the new 202 San Tan Freeway.
Feel free to contact WeKnowUrban directly for additional information on this area and these projects.

Most Developers Motivated to Deal

Recently I have found some flexibility among local developers with regard to deposits, upgrades, and sometimes even base pricing. Everyone knows that the advantage is currently to the buyer and developers are starting to respond to the current market Sluggish sales, rising construction costs and the sheer number of new developments have put some pressure on sales offices to make purchasing in their communities more appealing.

I have personally assisted clients in negotiating with developers on design center allowances, friendlier deposits and even occasionally on base pricing. The best deals almost always are found in spec homes that will usually offer a lot of included upgrades and quicker closings.

One client of mine contracted in April to purchase at Santana Ridge Condominiums in Gilbert. The new construction project at Gilbert Rd south of the 202 San Tan Freeway is under the development of Weinstein Company. During construction we noticed that the sales office had reduced prices to draw in more buyers. Most developers would not pass on the reduction to clients already contracted to purchase a higher price. However in Santana Ridge the decision was made to do the right thing and my clients purchase price was reduced by $6000.

These movements by developers are not common, however they reflect the market of today. Having good representation and some negotiation skills working on your behalf can make a big difference in your overall purchase. Buyers agents like myself who specialize in the urban condo and loft market find our reputation usually carries additional weight with developers as well.

For more information on market conditions, communities or expert buyer representation, contact weknowurban directly.

Citro Update

Earlier this week I took an out of state client on a tour of the Old Town Scottsdale area. We visited some of the interesting projects in and around the area of Scottsdale Rd between Osborn and Camelback.

It’s definitely a cool area to look at condos and lofts with a variety of unique communities, both large and small, all with something different to offer from their neighbors.

Most prices are competitive for the area in both the development and resale market, but this client was really looking for something different and special.

We had been to several popular projects but I was having a hard time finding exactly what he was looking for. That’s when we went to visit Citro, and that was our last stop.

Citro is a planned development that will be constructed at Camelback and 78th St.

The existing Cortesian property will be cleared to make way for an exciting new urban village, just 1/2 mile from the center of Old Town Scottsdale. 276 total urban homes are planned, most are multi level with roof top terraces with a select number of single level flats.

Flats range from 1300-1500 sq ft in size and each comes with a 1 car garage. Multi level town homes go from 1496 to over 2700 sq ft. Each urban town home comes with a 2 car garage, rooftop terrace with gas grill and optional spa, outdoor fridge and sink, and (get this) private elevator with stops on all levels including the garage and rooftop. Flats come with 1 car garage, outdoor terrace on second level units and rooftop terraces on third level.

My client found exactly what he was looking for at Cirto. A cool urban property unlike any other, with great access to Old Town Scottsdale.

Reservations are being taken and the choices are narrowing at a very fast pace considering the current market. Because of the nature of these homes, the competitive prices, the amenities and location I suspect availability will disappear quickly.

Contact WeKnowUrban for more information on this exciting urban village in the heart of Old Town Scottsdale.

Am I Too Old For Tempe? Here is the beginning of my post. And here is the rest of it.

Recently I had a client from California looking to relocate to the Phoenix area.

This gentleman happened to be an ASU grad and still holds season tickets to ASU football. He was interested in seeing what both the downtown Phoenix and Tempe areas had to offer in terms of condos or lofts considering style, price, and most importantly lifestyle…We started downtown and visited a variety of different properties from the 15th floor of Regency House, to the Artisan on Central and Parkview developments.

While he liked some of the homes we saw, he was stumbling somewhat on the lifestyle. The trouble was he kept drawing comparisons to living in downtown LA, which he felt was great for working and special events but emptied out most evenings and weekend.

This client was looking for more interesting activities after hours and on weekends than downtown Phoenix currently has to offer.
Being an ASU grad he was familiar with Tempe and the whole Mill Ave. vibe, but he had reservations about going back to the “campus” lifestyle. As we drove across the Mill Ave. bridge he asked me a question that has since stuck in my mind: “Am I too old for Tempe?”I thought about this a moment before answering.

The client had been out of college for several years (not decades, but safe to say it had been quite some time since he opened a textbook). He remembered Tempe from his college days and had visited on gameday over the years. What he didn’t realize was that Tempe is starting to grow up and become more refined.
I credit the City of Tempe for this maturation process for having the vision and financial gumption to develop the Tempe Town Lake and Tempe Beach Park areas. The result of that vision is starting to take shape with the Hayden Ferry, Centerpoint, and Northshore developments. Those large projects mixed in with an interesting blend of infill developments are bringing new types of residents to the Tempe/Mill Ave area.

Higher end properties are refining the Tempe demographic. The student population, while still prevalent, is blending with recent graduates, empty nesters, retirees, and seasonal visitors all looking to live in an interesting and vibrant atmosphere.

Add to everything else the Tempe Performing Arts Center, Tempe Marketplace, and the light rail line and we find that the college town is refining itself.

To best answer the question posed: “Am I too old for Tempe?” I took my client to Starbucks corner of 6th and Mill. We sat out front and watched the people stopping in for a beverage, and those walking the brick sidewalks of Mill Ave. Nearly every type of person was represented; young, professional, grandparents, families, working class, and naturally the occasional hippie.

Clearly Tempe is going through a transition and I’m not sure anyone is “too old for Tempe”. This will continue as residents start moving into the new developments and start living, shopping, dining and playing in Tempe.

Phoenix High Rise and Lofts in 2007

It appears that, contrary to what the AZ Republic says, we have weathered the real estate duldrums of 2006 here in the fair city of Phoenix. All statistical indicators show that although sales volume was down compared to 2005 (volume was similar to 2003 which wasn’t a bad year) sales prices still creeped up. This was not true across the board but in general.

However, I do see trouble on the horizon for the newly built and under construction high rise condos. With as much inventory on the market, or about to hit the market, one has to expect downward pressure on prices. The key will be whether or not the investors in these new buildings (by my estimates 30-45% of the total buyers) have the staying power to rent their homes out for a couple years rather than slashing prices to get out. In general, that is what happened at Orpheum Lofts and Optima Biltmore; the investors rented out their properties on the cheap just to cover some of their monthly outlay. The expectation is that within a year or two more they will be able to sell for a profit.

I think that this strategy will work for the better buildings and might fail miserably for the others. Frankly, most investors will need help getting through the next couple years from someone who knows what the heck they are doing. The days of buying and flipping for big bucks are over; at least for now in Phoenix. Stay tuned for new tools coming to wku to help all you urban owners in 2007.

The June 7, 2006, Property World article (http://www.weknowurban.com/HighRise-Loft-News/06-07-2006_Eight_Figure_Profit_Potential.htm) about Michael Peloquin and his investment opportunities left me wondering. If his developments Metro Lofts, McKinley Lofts, Compound Lofts and City Lofts are such a wonderful opportunity to make eight figure profits, how come he hasn’t broken ground on a single one of them? Seems to me he missed the most recent Phoenix boom and is looking for someone to help him cut his losses. I hope I’m wrong and that he’ll actually build the products, but I’ll believe it when I see it.

Partners Planning Latest Condo Projects in ScottsdaleGrace Capital LLC, consisting of Jonathon Vento and Donald Zeleznak, plans to start a 56-unit condo project called Osborn Commons near downtown Scottsdale later this year. The address is a short distance west of Scottsdale Road, on the north side of Osborn Road.

Condos in the four-story, steel-and-concrete building tentatively are priced up to $400,000, with a mid-range price of about $250,000, Zeleznak said.
Mike Padgett
The Business Journal
One of the companies preparing to start a 150-unit condominium development next to a central Phoenix park is expanding into Scottsdale and other parts of the Valley.

Grace Capital LLC, consisting of Jonathon Vento and Donald Zeleznak, plans to start a 56-unit condo project called Osborn Commons near downtown Scottsdale later this year. The address is a short distance west of Scottsdale Road, on the north side of Osborn Road.

Condos in the four-story, steel-and-concrete building tentatively are priced up to $400,000, with a mid-range price of about $250,000, Zeleznak said.

Vento said the location will appeal to a wide range of buyers because it is within walking distance of downtown Scottsdale and a short commute to various employment centers in Scottsdale, Tempe and northeast Phoenix.

Groundbreaking is set for Labor Day, and the first move-ins are anticipated a year later. Parking will be on the ground level, and the residences will be on the second through the fourth floors. Amenities include a pool and a clubhouse with a fitness center.

Vento and Zeleznak also are in a joint venture with Tim Sprague and John Hill, principals of Portland Place Partners, and Chicanos por la Causa in a central Phoenix residential development called Portland Place.

The mix of brownstone-type and mid-rise buildings will have about 160 residences built in three phases east from Third Avenue, on the north side of Portland Street, to the Best Western Central Phoenix Hotel on Central Avenue.

Construction of the first phase is to start in October, and the first move-ins are expected in late 2005. The price range is from about $200,000 to $600,000, the size range is from 1,000 to 2,700 square feet, and the type of construction is cast-in-place concrete.

The architect is DFD CornoyerHedrick, where Chief Executive Mike Davis said Portland Place will be aimed at the middle-income workers, not the corporate leaders seeking $1 million condos.

The historic Guiding Star Lodge next to the hotel is to be relocated to the east side of Third and used as a sales office.

The first phase of the Portland Place work is just east of Third Avenue, with the two subsequent phases moving east to the hotel. The phase one work includes five two-story brownstones facing Portland and a six-story building facing the park. The building will be topped with a pool. Parking for all of the phases will be underground. Phase 1 will have 41 or 42 units, depending on the final design.

Phase 2 includes an 8-story building, also with a pool, and a plaza garden next to the park. The third phase has a 10-story building, close to the hotel, and three smaller buildings that could be retail or additional residences, depending on the local market demands, Sprague said.

The underground parking means residents will have access to their vehicles by way of the nearest elevator that takes them to the underground parking garage, Sprague said.

Sprague said that while he and his partners are preparing to start Portland Place, they also are hunting for a site for a commercial retail development.

“What got us interested in this project, more than anything else, was light rail, seeing that light rail was becoming a reality and seeing where it goes,” Sprague said.

The light rail system will have a station at Roosevelt and Central, next to the Portland Place development.

Vento and Zeleznak’s Grace Capital also is preparing to start converting the vacant office building at 44 W. Monroe St. in downtown Phoenix into luxury condos. Work is to start this spring.

The steel-framed office building, renamed Monroe Place, has been redesigned into 52 residences. Marketing Director Joe Shopper said the price range is $350,000 to $1.3 million, and the only unit left is the most expensive.

Many of the buyers are executives who work in downtown Phoenix and are tired of their commutes from their homes in Arrowhead Ranch in Glendale and from DC Ranch, Grayhawk and Troon in North Scottsdale, Shopper said.

“We have two couples who have already sold their homes, and one sold their home in DC Ranch in six days,” Shopper said.

“A lot of these people entertain downtown, and they don’t want to have to get in their cars and drive an hour to get back home afterward,” Shopper said. “When they entertain downtown, they want to be able to walk around the corner to go home.”

© 2004 American City Business Journals Inc.