Tag Archives: Downtown Phoenix Business

Arizona set to add 500,000 jobs during next eight years

August 6th, 2018

Arizona is poised to add 1 million new residents between now and 2026 as well as more than 500,000 jobs to continue growing the state’s economy.

Arizona expected to gain 500,000-plus jobs, 1 million residents by 2026. Downtown Phoenix District Booming.

The statistics, from the Arizona Office of Economic Opportunity, paint a picture of a state once waylaid by the Great Recession as it continues to find its economic footing, according to a report by the Arizona Republic.

Those numbers would see the biggest growth in Phoenix and Maricopa County, already the state’s most populous region. The population is expected to grow from about 4.9 million to 5.5 million in the metro area during the next eight years.

The state’s population likely would rise to 8.1 million by 2026.

While those numbers are big, it’s not the kind of growth the state saw during the 1990s. Yet the county’s job growth could top out at 2.1 percent annually during that span.

What it could mean for Maricopa County and Arizona is increased influence on a business scale in the state where things already tip toward Phoenix. Politically, it could mean more clout in Washington for the state as increased representation at least following the 2020 Census.

That kind of political clout would continue to bolster Arizona’s industries that deal with federal contracts, notably the defense and aviation industries that have a large number of companies doing work in the region and state. During the second quarter, companies in the state received $2.26 billion in defense contracts.

Arizona already is a tight labor market, with the unemployment rate at 4.7 percent in June.

Whether you’re looking to buy a single-family home in Phoenix, AZ, a Historic Phoenix home, or, If the condo lifestyle is something you’re considering, or, if it’s all you can afford now, please give me a call for free, no obligation consultation. I specialize and LOVE working with first-time homebuyers and am am FIRM believer that THERE IS NO SUCH THING AS A STUPID QUESTION. I’ll take all the time with you that you need!

Downtown Phoenix Skyline Changing Thanks to Housing Construction, Jobs

Aug 5, 2018

The downtown Phoenix region is changing rapidly, thanks in large part to thousands of new apartments being built as well as scores of new tech jobs landing in the area.

The downtown area is receiving a boost from 2,000 apartments that have been finished during the past two years and will get another 3,000 during the next few years, according to a story from Azfamily.com.

Building high-rise apartments and condos started prior to the Great Recession, with towers such as 44 Monroe on the northeast corner of First Avenue and Monroe Street. But that building came to a halt as the real estate economy cratered.

Two apartment complexes, the Stewart and the Link, both under construction, will bring roughly 569 apartments to downtown within the next two years.

During the past few years, more apartments have come online, and current building is slated to add more than 10,000 apartments during the next year.

The continued rise of Phoenix as a place to live is fueled by an increasing number of technology and other jobs in downtown. The city has more than 300 tech firms within the downtown area which also are surrounded by amazing Historic Districts, compared with 67 in 2012, according to city officials.

If the condo lifestyle is something you’re considering, or, if it’s all you can afford now, please give me a call for free, no obligation consultation. I specialize and LOVE working with first-time homebuyers and am am FIRM believer that THERE IS NO SUCH THING AS A STUPID QUESTION. I’ll take all the time with you that you need!

Historic Phoenix Sees Major Rejuvenation ‘Between the Sevens’

Some of Phoenix’s most desirable neighborhoods to live can be found in an area that’s commonly referred to as “between the sevens,” which is the region between Seventh Avenue and Seventh Street throughout Downtown, Midtown and Uptown Phoenix.

Home to historical neighborhoods like “The Windsor,” prominent office buildings and iconic retail centers, the area between the sevens is also becoming an increasingly attractive place to work and play as new commercial real estate projects take shape, blending modern needs with the area’s rich history.

The latest projects range from adaptive reuse transformations of a former grocery store and other businesses into multifamily communities or trendy bars and restaurants. It also includes the modernization of older office buildings to meet current standards with lots of natural light, high ceilings, large open floorplates and easy connection to amenities.

Whether its people or companies, everyone is looking for a connected place that’s walkable, vibrant and linked to other amenities and uses, says City of Phoenix Economic Development Director Christine Mackay.

In addition to providing great transit options such as light rail, buses and the Grid Bike Share program to get around, Midtown and Uptown also boasts incredible dining and shopping options as well as prime office locations for major corporate companies.

Mackay says the rejuvenation of Midtown started in 2016 when Banner Health moved its corporate headquarters to the Banner Corporate Center on Thomas and Central Avenues.

Banner retrofitted an old building, bringing it to the 21st century, explains Mackay, which signaled to other large corporate tenants that the area and surrounding communities would support regional and/or national headquarters.

From there, the 2828 North Central building renovated its bottom floor to include a co-working shared space that’s currently occupied by Mod Phoenix. Meanwhile, the owners of the 2020 On Central building renovated all of its lobbies and shared spaces, which eventually led Facility Source to lease office space.

“Those three things really set the stage for other building owners to come in and start making dramatic changes,” Mackay says.

Now, Midtown is experiencing office renovations across the board because so many of the existing buildings were constructed in the 1970s and 80s.

Mackay also describes an incredible and growing demand to live in Midtown and Uptown. “It’s cultured. It has night life, distinctive dining and pretty much everything is local. It’s exactly what people are looking for today,” she says.

In addition to new office product and multifamily units, the area between the sevens has also seen a surge in new retail projects as it’s becoming more widely well-known as a foodie hotspot with an eclectic and tasty mix for restaurants and bars.

Mackay says, “The restaurants, culture and nightlife is really what’s drawing people into this Central City to live.” In fact, she says, there are not less than 100 restaurants in that area for people to choose from.

Mackay points to the success of projects like The Yard, along Seventh Street and Missouri Avenue, as an example of the pent-up demand for restaurants nearby, which has spurred other retail and dining destinations to follow like The Colony, built by LGE Design Build in 2016.

Looking ahead throughout Midtown, Mackay says, the renovations of Park Central Mall is “the last missing piece before the area returns to full throttle.” Meanwhile in Uptown, she predicts, the completion of Arrive Phoenix will “really prove the market and show what a destination hotel looks like in that area.”

ARRIVE Phoenix

DEVELOPER: Vintage Partners; Venue Projects

GENERAL CONTRACTOR: Venue Projects

ARCHITECT: Arrive Hotel & Restaurants

LOCATION: 400 & 444 W. Camelback Rd., Phoenix

SIZE: 45,000 SF; 79-rooms

VALUE: $20M

START/COMPLETION: Q1 2018 – Q4 2018

Located at what’s been called the Valley’s “hottest intersection” by the Urban Land Institute of Arizona, the project transforms a trio of mid-century gems into Uptown Phoenix’s newest dining, entertainment and urban hotel hub. The two-acre site will also host a boutique coffee shop, poolside taco bar, gourmet ice creamery, and nautical-themed rooftop craft cocktail bar featuring 360-degree city views. For the project, Vintage Partners teamed up with Venue Projects, the visionary developers behind The Newtown and other successful adaptive reuse projects like Windsor/Churn and The Orchard along Central Avenue.

First Place-Phoenix

DEVELOPER: First Place AZ

GENERAL CONTRACTOR: hardison/downey construction

ARCHITECT: RSP Architects

LOCATION: 3001 N. Third St., Phoenix

SIZE: 81,525 SF; 56-units

VALUE: $15M

START/COMPLETION: January 2017 – March 2018

The $15 million residential property for adults with autism and other neuro-diversities will be a first-of-its-kind facility that First Place AZ plans to expand into a worldwide model. First Place AZ Founder, President and CEO Denise Resnik started the nonprofit to ensure that housing and community options are as bountiful for people with autism and other neuro-diversities as they are for everyone else. The project provides a one-of-a-kind approach that combines apartments, a residential training program and a national leadership institute to advance more independent and community integrated living options.

The Curve at Melrose

DEVELOPER: P.B. Bell

GENERAL CONTRACTOR: M.T. Builders

ARCHITECT: Studio 15 Architecture Inc.

LOCATION: 4333 N. Sixth Dr., Phoenix

SIZE: 204-units; 308,618 SF

START/COMPLETION: August 2016 – Early 2018

The Curve will consist of 204-luxury apartments in a vibrant and eclectic urban Melrose District neighborhood positioned within walking distance of Indian Steele Park, light rail as well as numerous locally owned shops and restaurants. Included in the property’s luxury amenities are several that were selected by public vote in 2015, which include a resort-style pool and spa along with an outdoor kitchen and gas grills. P.B. Bell also worked with the Seventh Avenue Merchants Association on plans to reserve three display windows at the property to spotlight community-curated work and displays.

The Osborn

DEVELOPER: Trammell Crow Company; High Street Residential

GENERAL CONTRACTOR: Chasse Building Team

ARCHITECT: ESG Architects

LOCATION: SWC of Seventh Avenue & Osborn Road, Phoenix

SIZE: 190-units; 45,000 SF (retail)

START/COMPLETION: July 2017 – August 2019

The Osborn is a mixed-use grocery anchored retail shopping center and multifamily development. The project sits on a 5.96-acre site located in the heart of Midtown Phoenix where the city’s oldest Bashas’ grocey store, originally built in 1956, used to be located. The site benefits from immediate adjacency to many major employers, desirable affluent neighborhoods, abundance of social venues and high visibility with over 50,000 vehicles passing per day.

Uptown Plaza

DEVELOPER: Vintage Partners

GENERAL CONTRACTOR: Kitchell

ARCHITECT: Nelsen Partners

LOCATION: 100 E. Camelback Rd., Phoenix

SIZE: 116,787 SF

START/COMPLETION: 2014 – June 2016

The Valley’s first retail center located outside of Downtown Phoenix is being restored to its former glory and street appeal as a result of wall-to-wall renovations over the last three years. The property’s renovation aims to restore this iconic shopping center — originally constructed in 1955 by the Del Webb Co. — to its stylish brick-lined, mid-century roots and appeal. The 11-acre renovation includes restoring the original brick façade, adding new landscaping and successfully securing a variety of local, regional and national tenants like Shake Shack, Lou Malnati’s Pizzeria, Huss Brewing Company’s flagship taproom, Creamistry, Flower Child and more. The latest phase included updates to the exterior of AJ’s Fine Foods.

The Grid

DEVELOPER: ABI Multifamily

GENERAL CONTRACTOR: Alexander Building Company

ARCHITECT: Corgan

LOCATION: 5227 N. Seventh St., Phoenix

SIZE: 16,281 SF

VALUE: $3M

START/COMPLETION: Q4 2017 – Q2 2018

The two-story adaptive reuse project will transform the former Uptown Phoenix office building into a refreshed Class A office for ABI Multifamily on the top floor and co-working space on the first floor. A large multipurpose room will be used for entertaining, training and a yoga room open to the community. The design repurposed raw industrial materials, while still maintaining a sleek modern feel. In addition, a perforated metal canopy and second skin will be added to create new dynamic exterior spaces while protecting the building from the harsh summer sun of the desert.

Dignity Health Third Avenue Parking Garage Expansion

DEVELOPER: Dignity Health

GENERAL CONTRACTOR: JE Dunn Construction

ARCHITECT: GLHN Architects & Engineers

LOCATION: 2929 N. Third Ave., Phoenix

SIZE: 177,000 SF

VALUE: $11M

START/COMPLETION: December 2017 – July 2018

While the area’s public transit options like buses, light rail and Grid bikes have made commutes easier, parking is often a top-concern for companies and tenants considering a move to the Central City. That’s why the Dignity Health’s St. Joseph’s Hospital and Medical Center in Phoenix is embarking on a campus-wide parking solution that will add approximately 500 new spaces.

Park Central

DEVELOPER: Plaza Companies; Holualoa Companies

GENERAL CONTRACTOR: DPR Construction

ARCHITECT: richärd+bauer architecture

LOCATION: 3121 N. Third Ave., Phoenix

SIZE: 337,000 SF

VALUE: $57M

START/COMPLETION: Q4 2017 – Fall 2018

“Our goal is to transform Park Central into a truly innovative and exceptional work environment for companies in the ‘New Economy,’” says Sharon Harper, president and CEO of Plaza Companies, which also led the the successful transformation of the Los Arcos Mall in Scottsdale into the ASU Scottsdale Innovation Center – SkySong. As Phoenix’s first-ever mall, Park Central benefits from an exceptional location and unique retail history. In total, 337,000 square feet will be revitalized into several distinct districts, each with its own identity.

If you are interested in a free consultation to see if buying a Phoenix home is a better option for you, please call or email me today. You may be surprised at what you learn. I have access to programs that offer down-payment assistance with money you do not have to pay back.

Whether you’re buying or selling a home in Central or Downtown Phoenix, or just have some questions about anything at all in or about any one of the historic districts in Phoenix, I’d be very happy to help you! Just call or email me anytime.

Phoenix Real Estate with Historic Roots Now For Sale

November 20th, 2017 – Downtown Phoenix Journal

As part of the recent settlement of litigation between the United States and the Barron Collier Company, the federally-owned 15-acre parcel located at the northeast corner of Central Avenue and Indian School Road is now “For-Sale.” The land, which is located amid the booming Uptown Phoenix real estate market, is being marketed as the “Uptown Phoenix Parcel.”

The parcel was recently transferred by Barron Collier Companies to the United States for sale under an agreement that resolved Collier’s legal obligations to the United States dating back to the Congressionally approved 1988 Arizona-Florida Land Exchange Act – a deal that originally included the historic 72-acre Historic Phoenix Indian School site that had been operated as a school for Arizona Indian students for almost 100 years until its official closure by the Bureau of Indian Affairs in 1990.

The 15-acre Uptown Phoenix Parcel is located across from a light rail station, just one block south of the Camelback Road and Central Avenue, which was recently named by the Urban Land Institute of Arizona as one of the Valley’s most lucrative intersections for commercial and residential development.

Proceeds from the sale of this Historic Phoenix parcel will be deposited into the Inter Tribal Trust Fund and Navajo Trust Fund administered by the United States for use by tribes in Arizona to seed educational programs and services such as tribal libraries, preschools, childcare facilities, youth foster homes, tutoring and academic counseling for tribal youth, among other programs. Most of these programs have been placed on hold in recent years due to limited funding and uncertainty surrounding the future of these Trust Funds.

Many of Arizona’s current tribal leaders attended the Phoenix Indian School in their youth. When it closed, Congress made sure that the funds generated from the disposition of the property could be used to support a positive and enduring legacy for both the former Indian School, and the future of Indian education in Arizona. While the history of the Phoenix Indian School has been written, tribal leaders also look forward to supporting a new legacy that the sale of this long vacant property now represents.

“We are very pleased to see the that remaining 15-acre property, which is so steeped in the history of tribes in Arizona, will finally have an opportunity to be developed and hopefully become another Phoenix cultural highlight in the future of Uptown Phoenix,” says Inter Tribal Council of Arizona Executive Director, Maria Dadgar. “Not only will the sale of this property begin a new chapter for the City of Phoenix, the funds generated from the sale will also serve the future of Indian education in Arizona as Congress originally intended. Tribal leaders view this as a positive step in the history of the Indian School property,” says Dadgar.

The federally-owned Uptown Phoenix Parcel will be sold by a competitive online auction hosted by the Government Services Administration’s online site www.RealEstateSales.gov and will open for bids later this year.

The Inter Tribal Council of Arizona, Inc., was first established in 1952 to provide a united voice for tribal governments located in the State of Arizona on common issues and concerns. Currently, ITCA’s membership includes 21 of the 22 Tribes of Arizona.

Elvis Presley, Johnny Cash music publisher’s estates look to sell prominent Phoenix land

Jan 13, 2017

Land is for sale at the southwest corner of Indian School Road and Central Avenue in midtown Phoenix neighboring Willo Historic District, Encanto-Palmcroft Historic District, FQ Story, Alvarado and Ashland Place districts.

That is one of the busiest intersections in the region and is also on the Metro light rail systems. The land is owned by real estate entities managed by trusts of the Aberbach family.

arizona, commerical,real,estate,elvis presley,president richard nixon,

Richard Nixon and Elvis Presley

Julian J. Aberbach, who died in 2004, was the music publisher for Elvis Presley. Music publishers do deals related to song writing and royalties when compositions are used.

Public records and real estate databases show land at the Indian School/Central land is owned by Aberbach Investments LLC and Vembec LLC.

Those entities are managed by estates for Julian J. Aberbach and his family.

Greg Vogel’s Land Advisors Organization is marketing the land.

The corner was previously home to an AM/PM gas station which is no longer there, parking lots and a Yoshi’s restaurant.

Vogel said the land for sale totals approximately 3 acres with an asking price of $50 per square foot.

Vogel sees the Indian School/Central land as a good spot for a new apartment development.

Julian Aberbach and his late brother Joachim Jean Aberbach were in the music publishing business and forged deals with Elvis Presley, Ray Charles and Johnny Cash.

Julian Aberbach died in 2004 at age 95.

The New York Times outlined in his obituary the business ties to Presley whom he first forged a deal with in 1955. That included telling Presley to hire songwriters to provide him more music.

“I gave Elvis a check for $2,500, an advance against the royalties of his stock ownership,’’ Aberbach said in a 2002 interview with Billboard magazine according to the Times obit. “And he promptly went to the Cadillac dealer and got a pink one.”

Elvis first appeared on the “Ed Sullivan Show” in 1956.

Land Advisors is a leading real estate firm in the state and region. Vogel’s group forged the deal that is bringing Lennar-developed apartments to the northwest corner of McDowell Road and Central Avenue.

by Mike Sunnucks Senior Reporter Phoenix Business Journal

Architects to Take Over Historic Phoenix Building

Mike Sunnucks Senior Reporter | Phoenix Business Journal | Sep 19, 2016

An international architecture firm has leased and will renovate a historic mid-century building in Phoenix.

historic phoenix,commercial renovation,midcentrury,building,

A rendering of the interior

Minneapolis-based Cuningham Group Architecture has leased the Farmers & Stockmens Bank Building at Washington and 50th streets near Papago Park.

The 6,000-square-foot building was built in 1951 by famed Los Angeles architect William Pereira.

He also designed the Transamerica Pyramid in San Francisco, Luke Air Force Base in Glendale, CBS Television City in Los Angeles, the Arizona State Prison in Florence and much of Los Angeles International Airport.

The Washington Street building has a historic designation from the city of Phoenix.

Cuningham Group currently has its Phoenix offices near First Avenue and McDowell Road north of downtown Phoenix.

The architecture firm plans on moving this fall.

“For a firm such as ours that deeply respects good design, it is an honor to make this landmark our home,” said Cuningham Group Principal Nabil Abou-Haidar. “There is a clean-lined simplicity to the building that remains attractive to this day. It is certainly an approach we bring forward in contemporary architecture for our clients, and in our other offices around the world.”

Cuningham’s Phoenix office has approximately 20 architects and designers.

The firm’s project portfolio includes work in South Korea, China as well as Disney’s California Adventure.

Cuningham Group is leasing the 1950s era bank building from owners Mike and Gary Smith. They own Phoenix-based Jokake Companies, which acquired the property and in partnership with the city of Phoenix in 2015.

They restored the building’s exterior.

“We are delighted we were able to save the historic property,” said Jill Clements, president of Jokake Real Estate Services. “There are not many historic buildings left in the Phoenix area. So when we were able to save this one, we were thrilled. The Smiths are happy to be working with such a prestigious architectural firm as Cuningham Group and look forward to their long-term tenancy at the property.”

Call Laura Boyajian for all of your Historic Phoenix Homes Buying and Selling needs.

Metro Phoenix Starting to Grow Up Instead of Out

The Valley is seeing new inward development, a change from the outward expansion typical of metro Phoenix.
Mark Quinones/azcentral.com

There’s an urban revival going on in the Phoenix Valley, which has long been known for its affordable suburban homes.

Karen Wang is buying a condo in the new 14-story Portland on the Park development in downtown Phoenix.

Her new home is going up on a prime piece of land next to Margaret T. Hance Park that was a dirt parking lot when she moved here from the San Francisco Bay Area for culinary school 12 years ago.

Of course, metro Phoenix had plenty of empty lots back then. It was rated as one of the cheapest metro areas for parking in the U.S. in the mid 1990’s because it had so much vacant land, especially downtown.

Now, construction cranes and new housing, restaurant and retail developments can be found on many of those long-vacant parcels across central Phoenix, Scottsdale, Tempe, Mesa and Glendale.

The Valley, an area that for so long has grown outward with new, affordable suburbs, is having an urban revival.

For example:

Almost 4,000 condominiums are under construction, planned or were recently built in the central Valley, according to developers.
Upwards of 8,000 apartments are being built on infill sites in metro Phoenix, according to ABI Multifamily.
Infill land prices in the Valley have more than doubled in the most popular neighborhoods during the past 15 years, property records show.
Home prices and rents are climbing the fastest in the Valley’s urban hubs.
And the days of finding free parking on dirt lots in central Phoenix, Scottsdale or Tempe are as long gone as those vacant parcels.

downtown,phoenix,real estate,construction

Portland on the Park project at Central Avenue and Portland Street

Millennials and Boomers are behind the shift in metro Phoenix’s development. They want to live where they can walk or ride bikes to where they work or play — or both.

Builders are responding with many new high-density, high-rise condominium and apartment projects near popular eateries and shopping hubs. Not only are vacant lots being filled; older, often empty buildings are being transformed as well.

“I want a more urban lifestyle that wasn’t available when I first moved here,” said Wang, 39, who is moving downtown from the Arcadia area of Phoenix. “I am looking forward to walking just a few minutes to restaurants and the dog park.”

Her commute to her retail job in Scottsdale will get longer, but her partner, Logan Stephenson, works in downtown Phoenix.

Most urban planners support infill and high-density development because it uses less water, cuts back on freeway traffic and can create more walkable neighborhoods.

“It is a reflection of the Valley maturing as a metro area when the value of land closer in becomes more valuable and demands higher uses or basically more density,” said Mark Stapp, a growth expert and director of the Master of Real Estate Development program at Arizona State University.

“It’s a good thing for growth,” he said.

The Valley may never be Manhattan, but …

Phoenix will never be a San Francisco, Manhattan, London or Hong Kong for high-rise living.

The Valley also still lags other big cities such as Chicago, Portland and Denver for urban redevelopment. And growth on the Valley’s fringes will continue.

But metro Phoenix is already a higher density city than most people realize.

“Too many people equate the Valley’s growth with sprawl,” said Grady Gammage Jr., author of the new book “The Future of the Suburban City: Lessons from Sustaining Phoenix.”

An average of 3,200 people live per square mile of the Valley, according to the Center for Neighborhood Technology, a national growth think tank.

Gammage, who has been analyzing metro Phoenix’s growth for decades, said that makes the Valley a more dense area than Seattle, Houston, Charlotte or Atlanta.

Los Angeles is the densest U.S. city with an average 7,000 people living in every square mile. Second is Las Vegas with 4,500 people per square mile, he said.

But more condominiums and apartments are under construction or planned in the Valley now than any time since the boom. Most are going up in the central Valley on infill sites.

People often try out an area by renting, experts say. Then they’ll buy if they really like it.

“Apartments lead the way for condo construction,” said Tom Simplot, CEO of the Arizona Multihousing Association and a former Phoenix city councilman. “People first became comfortable living in that area, and are now converting to ownership.”

Rooftops following retail

Metro Phoenix’s typical growth trend has been reversed with infill.

Retail followed rooftops to the Valleys’ suburbs. But now new housing is chasing new infill restaurant and shopping hubs.

“Creating ‘high-connectivity’ hubs with high-density homes near restaurants, bars, shops, cultural centers and jobs is becoming the development pattern of metro Phoenix,” Stapp said.

Phoenix infill hubs include:

Downtown Phoenix, which has become a big draw for buyers, renters, eaters and shoppers. The area’s Roosevelt Row has several new condo developments, row houses and apartments. The Muse, with 367 apartments, is going up at Central Avenue and McDowell Road, a prime corner of the city’s skyline that has been empty for decades. Downtown Phoenix has the highest average apartment rents in the Valley.
Central Phoenix, where there are several restaurant hubs drawing residents and new infill homes. There’s the Uptown area around Postino, near Camelback Road, where high-end townhouses are filling the last vacant spots. One developer is transforming old apartments into Frank Lloyd Wright-inspired condos called the Mason.
Midtown Phoenix, where apartments and condos are going up among clusters of restaurants and shops across from Steele Indian School Park. In the Midtown neighborhood called the Yard, after the hopping restaurant hub on Seventh Street, home prices jumped 50 percent last year.
Phoenix’s Camelback Corridor and Biltmore areas, which have very few empty lots left for development. Now builders are tearing down older apartments to make way for newer, luxury ones because so many people want to live near the area’s luxury shops and high-end restaurants. New projects are stretching this chic area’s borders south.

“In the last 15 years the major urban cores of Phoenix, Scottsdale and Tempe have transformed to the extent that the population is now demanding planners make them increasingly vibrant,” said David Newcombe, a co-founder of Scottsdale-based Launch Real Estate and broker at Portland on the Park.

He said the trend for urban growth is being powered by “people wanting to take back ownership of their life.”

Suburban high-rises

High-density and vertical developments aren’t just going up in Valley downtown’s anymore, either.

If an area has a popular restaurant and shopping hub, then developers are building, believing buyers will come.

Pat and John Simpson are moving from their home in north Scottsdale’s DC Ranch to a new luxury condo at Optima Kierland. The 12-story development is going up on the Phoenix/Scottsdale border next to a resort, popular shopping and restaurant hub near the Loop 101 Freeway.

“We are downsizing but not downgrading to an area where we can walk to get a cup of coffee or a meal,” said Pat Simpson, a real-estate agent with Russ Lyon Sotheby’s who moved to the Valley from New York a decade ago. “We want views and amenities.”

In April, more than 1,400 new and used condos sold, according to The Information Market. That’s the highest monthly tally since mid-2007.

“Creating higher-density housing like condos near central areas strengthens communities and provide people with an alternative way of living in the Valley,” said architect David Hovey Sr., who developed the Optima condos in Scottsdale and Phoenix’s Biltmore area and now is building in Kierland.

Kierland, where a 12-story condo building is on the rise, is among the suburban areas drawing higher-density housing. Others include:

Central Scottsdale, where the Old Town and the Waterfront areas are sprouting high-end condos and apartments near many upscale restaurants and shops. Condo prices are easily topping $1 million, particularly in the development replacing the Borgata shopping center.
South Scottsdale, known as SoSco, which is drawing Millennials to its new apartments and older neighborhoods with more affordable porch homes. Apartment rents jumped 20 percent in this area last year.
Tempe’s Town Lake and Mill Avenue, which led the Valley’s urban rebound. New developments underway on ASU land along the water will bring even more apartments and condos to the 24/7 area that is drawing not only students and Millennials, but Gen X-ers and Baby Boomers.
Downtown Mesa, which is drawing its first new housing developments in many years and becoming a cultural hot spot.

Moving in, up or down

Metro Phoenix’s two biggest groups moving closer in now are Millennials and empty nesters or Boomers, developers say.

These huge demographic groups seem to want to spend less time in their cars and taking care of homes with yards.

The Koch family represents both. Ann, 55, and Bob Koch, 59 live in north Phoenix but are buying a new condo in downtown Phoenix’s en Hance Park for their daughter Kayla to live in while she goes to ASU.

“We looked at renting an apartment for Kayla downtown and then realized buying could be a better deal,” Bob Koch said.

He said when their daughter moves out, the couple plan to keep the condo, stay there themselves and share it with family and friends who want to enjoy downtown.

Kayla Koch, 21, said she will walk to class and take light rail to her job in Uptown Phoenix at Flower Child restaurant.

“There’s these new type of ethos and feeling about living in an area where you can walk to a park, so many restaurants, museums and things to do,” said Aaron Carter, broker for en Hance. “More people are letting go of the trappings of a larger home to be in a great location, particularly if it’s near light rail.”

Ride it, and you might like it

Metro Phoenix Light Rail

Some may question whether light rail has drawn enough riders to be considered a success, but few dispute the train tracks have drawn development and created new Valley growth hubs.

Several of the Valley’s most popular new restaurant and shopping areas stretch along light rail from Midtown Phoenix to downtown and out to Tempe and Mesa. Housing has followed the train.

Some planners expect to see similar hot spots for development in Glendale as light rail expands there.

Light rail helped draw Adrian Zaragoza to downtown Phoenix.

He had been living in north Phoenix and found himself driving everywhere, including to central Phoenix to hang out with friends.

Five years ago, he began renting on Roosevelt Row. Now, he’s buying a condo at Portland on the Park.

“Downtown is great. I can either bike or take the train wherever I want to go,” said Zaragoza, 29, a senior financial manager in Tempe. “I only drive my car to go to work.”

Patricia Gober, interim director of ASU’s School of Geographical Sciences and Urban Planning, said light rail has helped change metro Phoenix’s growth pattern.

“Light rail has created places where people feel like they belong and want to be in the Valley,” she said. “Phoenix is becoming more dense and poised for better growth, thanks in part to its trains.”

Density means less water usage

Urban planners say one of the biggest benefits from higher density housing is how it improves water conservation. Most infill developments use much less water than traditional neighborhoods with single-family homes.

“A very rough but conservative estimate would be that a typical high-rise household would use at least 50 percent less water than a typical single-family home on the Valley’s fringes,” said Sarah Porter, director of the Kyl Center for Water Policy at ASU’s Morrison Institute.

Based on several recent studies, she estimates a metro Phoenix high-rise home uses an average 4,000 to 5,000 gallons of water a month.

That means a Valley single-family home with a yard uses an average 8,000 to 10,000 of gallons of water each month.

“In the Valley, up to 70 percent of household water goes to outdoor uses, though the average percentage per household has been declining,” Porter said.

Water usage is an important growth factor for cities in the West like Phoenix dealing with shortages and long-term droughts.

But not all urban planners think a big shift to infill development is the right growth path for the Valley.

“Areas with high-dense housing and vibrant downtowns like San Francisco, Paris and Manhattan are unaffordable for most people,” said Joel Kotkin, executive director of the Center for Opportunity Urbanism. His most recent book is “The Human City. Urbanism for the Rest of Us.”

He said metro Phoenix’s big draw for new residents is relatively inexpensive housing.

“Affordable cities like Phoenix are now drawing Millennials and families who can’t afford to live in Southern California or on the East Coast,” he said. “I am not sure those people are looking for more expensive high-rise developments in the desert.”

But Gammage and Stapp said they think there’s demand for both infill and high-rise homes as well as more affordable single-family houses farther out in the Valley.

“Not all future growth will occur in the Valley’s core,” Stapp said. “We will need to build on the edges, but more dense regional hubs can also evolve in Gilbert, Mesa, Chandler and other suburbs.”

Density appeals to Wang, who the Bay Area transplant who is moving to downtown Phoenix.

“Part of my pessimism about living in the greater Phoenix area is that I’ve always felt like it was a large suburb due to the sprawl,” she said. “But the growth of Phoenix has dynamically changed in the past five years.”

She said it’s tough to compare Phoenix to San Francisco, New York and Los Angeles for downtowns.

“But Phoenix can be Phoenix, and it has changed over the years,” she said. “I am happy about the attention and renewal being brought to the heart of the city.”

Phoenix Approves Sale of Historic Downtown Building

The city of Phoenix will sell a 101-year-old historic downtown building to a developer for $2.28 million.

Jun 23, 2016

Barrister Building,downtown Phoenix.historic

Barrister Building in downtown Phoenix sale approved and will be renovated

The Arizona Republic reports that the city-owned Barrister Building, which sits on the corner of Jefferson Street and Central Avenue, will be sold to Crescent Bay Development Services LLC. The developer plans to renovate the century-old building, which the city bought in 1990.

Development plans include at least 88 condos in the existing six-story building as well as two new buildings.

This is the latest effort to renovate and preserve the historic building, which originally opened in 1915, and at one time was the tallest building in the state. The city had approved another project plan two years ago but it eventually fell through.

The building was long home to the Jefferson Hotel, featured in Alfred Hitchcock’s 1960 movie “Psycho.”

“We’re really excited about the project,” said Geoff Beer, a principal with Scottsdale-based Crescent Bay.

Beer said plans calls for construction of two new six-story buildings to go along with the six-story, 100-year-old Barrister building. The Jefferson Hotel/Barrister building was built in 1915.

Beer expects condos to be priced between $250,000 and $650,000 with an average unit size of 1,170 square feet. He said Crescent’s bid calls for buying the city-owned building for $2.28 million. It will also include some ground level retail and restaurant space.

Phoenix could reimburse Crescent Bay up to $1.9 million for infrastructure and preservation improvements, according to the Republic.

Tim Gallen and Mike Sunnucks

Phoenix Business Journal

Lou Malnati’s Pizzeria in Phoenix Opening May 16th

Dominic Armato, The Republic | azcentral.com 12 p.m. MST May 11, 2016

Get a first look before the new location opens Monday

On Monday, Lou Malnati’s Pizzeria, one of the most famous purveyors of deep-dish pizza, will open up shop at Uptown Plaza, at Camelback Road and Central Avenue in Phoenix.

I’m not sure I can defend it, but I sure do love it.

Deep-dish pizza lives at the intersection of brash decadence and pure gluttony.

Take the simple elegance of a Neapolitan pizza, Americanize it and jam it in a pan, then bury it under a pile of cheese and chunky tomato sauce and you have Chicago’s most famous contribution to the world pizza pantheon. Though short on sophistication, it’s a dish that’s long on pure joy.

And on Monday, May 16, Lou Malnati’s Pizzeria, one of the most famous purveyors of deep-dish pizza, will start serving it in Phoenix, at Camelback Road and Central Avenue.

This is one of Chicago’s titans of deep dish, and the chain’s new restaurant at Uptown Plaza will be the 46th branch, but the first outside the greater Chicagoland area.

Though Pizzeria Uno is the first choice of tourists visiting Chicago, Lou Malnati’s always seemed to me the more widely respected establishment among locals, opened by and named for the son of Rudy Malnati Sr., former pizza chef at Uno. The Malnatis are among the first families of Chicago deep-dish pizza, and their claim to its creation is as credible as any other.

Why Phoenix?

“We ship a lot of pizza to Phoenix,” says Mark Agnew, the president of Lou Malnati’s, who started working at the restaurant when he was 15. “We wanted a market where we felt like people know who we were.”

Malnati’s isn’t merely spreading its seed to the wind with a franchising agreement, as Pizzeria Uno did in the 1990’s with disastrous culinary consequences.

Rather, they’re keeping the business in the family, taking care to ensure the pizza at this Malnati’s is a fair representation of the pizza they serve back home.

All of the ingredients used at the Phoenix Malnati’s will be the same as those used in Chicago.
Five members of the Malnati’s management team have relocated to Phoenix.
Nearly half the staff has trained at the restaurants back East.

Perhaps most importantly, Malnati’s has chosen the fertile soil of a city awash with Chicago expats to plant its first remote location, hoping to draw the kind of ebullient crowds that welcomed Portillo’s to the Valley in 2013.

Early Malnati’s memories

For the record, my feelings about Portillo’s are somewhat reserved. Though a venerable Chicago institution, I think Portillo’s product is less superlative than it is consistently solid. But I have no such reservations when it comes to Malnati’s.

It wasn’t always this way. Growing up in Chicago, we were a Gino’s East family, routinely feasting on miraculous pies served from deep within the bowels of its original location, a graffiti-covered dungeon of a building just off Chicago’s Magnificent Mile. When we pulled up one day to discover the building razed and Gino’s relocated to the former home of a Planet Hollywood, we jumped ship and consoled ourselves in the embrace of a pizza that — if I’m being honest with myself — was probably a little better.

That was Lou Malnati’s deep dish. We never looked back.

A different look

The look of the Phoenix Malnati’s may surprise fans of some of the older locations.

“We try to be a local pizzeria,” Agnew explains. “Each of our restaurants looks different, and we try to fit in.”

That means embracing the Mid-century Modern style of Uptown Plaza’s renovation, complete with neon lights, aquamarine tiling, Fiestaware plates and Googie design. It also means welcoming local charities during an invitation-only soft opening to raise money for Chrysalis’ domestic violence shelters, Alice Cooper’s Solid Rock teen center and Phoenix Children’s Hospital.

The bright colors and wild look of the dining room are a far cry from the original Lou Malnati’s, which opened in Lincolnwood, Ill., in 1971. Folks new to Malnati’s won’t know the difference, but to trigger the nostalgia synapses of old-time Chicagoans, the food will need to carry the day.

What’s deep dish?

We’re talking about a pizza that Jon Stewart famously denigrated as a “casserole.” Though it was meant as an insult, even as a fan of deep dish, it’s a characterization that I have a hard time refuting. We are, after all, talking about your choice of toppings mixed with an abundance of melted cheese and covered with a thick layer of bright, chunky tomato sauce, all stuffed into a dense, crunchy crust that’s buttery and — for reasons unknown — almost always undersalted.

In a national scene now dominated by Chris Bianco’s artfully crafted legacy, deep dish can seem like a dense, clumsy oaf of a pizza whose most compelling feature is its unashamed sense of abandon. But its coarse appearance belies the subtlety within. When it’s on, there is a beguiling, gooey charm in a slice of deep dish. Malnati’s, in particular, challenges the notion that a single slice can feed a family of six. It sure isn’t light, but two or three slices can slide right down a lot quicker than you might think.

In just a few days, families will begin lining up for a taste of Lou Malnati’s deep dish. Here’s hoping the famed pizza lives up to their expectations.

Details: Uptown Plaza, 100 E. Camelback Road, Phoenix. loumalnatis.com.

Downtown Phoenix grocery store could be delayed

How the downtown Phoenix grocery store could be delayed by a Cold War-era bomb shelter

May 5, 2016, 10:12pm MST

Like many downtown Phoenix residents, I was ecstatic when news broke that Fry’s would be landing a long-desired grocery store in the city core.

And while the store isn’t slated to open for a while, there might be a few things that will require a little extra patience for us long-suffering downtown denizens.

According to a report this week in The Arizona Republic, when developers break ground later this year on the project at Second and Jefferson streets, officials with the city of Phoenix expect them to unearth a bevy of city history including remains of old jail cells and prehistoric artifacts.

Oh, and possibly a Cold War-era bomb shelter.

That’s right. A bomb shelter. Turns out the parcel of land on which the Fry’s and accompanying mixed-use high-rise will be built has had quite a history.

It used to be home to a J.C. Penney store, as well as a city-operated jail.

Phoenix officials told the Republic the bomb shelter made sense in the middle of the 20th Century during the height of the Cold War and when children across the nation spent time in drills learning to “duck and cover” in the event of a nuclear blast.

But for a 21st Century grocery store as part of an ongoing gentrification period? The Republic story doesn’t mention what developers might do with an excavated bomb shelter, though it could be redeveloped into a planned basement for the Fry’s. Developers plan to house the grocery store’s bakery and other operations in a basement.

Regardless, it is likely that if developers do uncover the bomb shelter, it will add a little bit of time to the project’s time table.

Apparently, such historical finds are common for downtown developments.

The Republic reports that construction of the CityScape project in downtown unearthed an old bank vault and other artifacts.

Tim Gallen

Digital Editor