$37 million midrise luxury condo project headed for downtown Scottsdale
A $37 million midrise condominium project is planned for Old Town Scottsdale, marking the re-emergence of a market sector that has been largely dormant for several years.
The eight-story project, called Envy, will be located on roughly a one-acre lot at 75th Street just south of Camelback Road. It will feature 90 for-sale condo units ranging from 800 to 1,750 square feet and starting at $425,000.
There will also be three levels of subterranean parking, a 4,000-square-foot fitness facility with a lounge and juice bar as well as a rooftop saltwater pool and deck with cabanas and 360-degree views.
Envy is being developed by Scottsdale-based multifamily developer Deco Communities, which unveiled its plans in a statement today, along with joint-venture partners Castlelake of Minneapolis and Isles Ranch Partners of California.
Deco is aiming for a 2016 completion date, but will begin accepting reservations this summer.
“Envy is luxury for the next generation, catering to the affluent millennial that wants to be at the center of Scottsdale’s electrifying 24-hour atmosphere,” Rob Lyles, partner of Deco Communities, said in the statement. “This is the next generation of luxury living in the heart of the city’s core.”
Envy comes at a time when the local and national for-sale condo and townhome market has had a much more difficult time rebounding from the housing bust than the single-family sector, said housing expert Michael Orr, the director of Arizona State University’s Center for Real Estate Theory and Practice.
Thus, new condo development has been minimal in recent years. And with the rental market still strong, most of the condo-turned-apartment projects have also not been converted back to their original use, he said.
But Orr believes there is some pent up demand for condos that likely will strengthen as the market improves.
“I would say there’s room for expansion, especially if it’s in a desirable location,” which Envy is, he said. “Builders are interested in building them again.”
A recent article by CoStar cited Envy and a handful of other projects in Boston, New York City and Chicago as evidence of a condo “ripple” — although not a wave — occurring nationwide.
But at the moment, Envy doesn’t face much competition.
In Scottsdale, only 2.6 percent of the 3,136 condo and townhome sales last year were new, according to my analysis of Orr’s monthly housing reports. He said there are also only 103 condo/townhome units priced above $400,000 currently on the market in the Envy’s 85251 ZIP code.
As for the apartment boom taking place in downtown Scottsdale, it shouldn’t be problematic for Envy either. People have usually decided whether to buy or rent by the time they’re out shopping — they rarely look at both at the same time, Orr said.
From: Phoenix Business Journal