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Sunday, October 16, 2011

TDI proposes 667 apartment units for One Scottsdale

Grayhawk and Henkel North America would get hundreds of new neighbors under the latest apartment plan submitted to Scottsdale.

TDI Real Estate Holdings LLC, based in Irving, Texas, wants to build 677 apartments in two phases at One Scottsdale, the mixed-use project northeast of Scottsdale Road and Loop 101.

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Development costs for the 388-unit first phase would be about $65 million, said Gus Villalba, TDI West executive vice president in San Diego.

There is a growing demand for apartments in the Valley, he said.

"Everybody believes in Phoenix and that it's going to enjoy a strong jobs recovery," Villalba said.

"Right now, the propensity of people to rent is moving in our direction."

TDI's apartment project could breathe some new life into the 120-acre One Scottsdale site that has been largely vacant for three years while retail, residential and office development stalled in the recession.

Henkel, which took over Dial Corp. in 2004, opened its 348,000-square-foot North American headquarters at One Scottsdale in December 2008.

Plans subject to review

One Scottsdale, developed by DMB Associates Inc. of Scottsdale, is planned for 1.8 million square feet of commercial, office and retail uses, 400 hotel rooms and 1,100 residential units.

"This multifamily-residential development aligns with One Scottsdale's vision for a unique mixed-use community," said Charley Freericks, DMB senior vice president.

TDI intends to build on 24 acres east of the 73rd Street alignment between Legacy Boulevard and Thompson Peak Parkway.

The first phase would be on 13.6 acres at the northeastern edge of the One Scottsdale site, next to the Grayhawk community.

TDI's plans must be reviewed by the Scottsdale Development Review Board.

Phoenix attorney Kurt Jones of Gallagher and Kennedy, who is representing TDI, said the company hopes its plan will be on the board's December agenda.

Construction is slated to begin in April, and the three-story apartment buildings would be completed in 11 to 18 months, Villalba said.

Apartments would range in size from 748 to 1,280 square feet. Rental prices have not been set.

TDI was attracted to One Scottsdale because of its location and DMB's strong development track record, Villalba said.

Its developments include DC Ranch in Scottsdale and Verrado in Buckeye.

TDI's executives developed four apartment projects in Phoenix as JPI Development, including one with 438 units northwest of Scottsdale and Bell roads, completed in 1998.

Apartment boom emerges

Scottsdale is poised for a residential-building surge with developers lining up to construct about 4,400 apartments if all the projects are approved and completed.

Mayor Jim Lane said a shift away from consumer interest in homeownership is driving the apartment sector.

The financial markets will determine how many apartments ultimately are built in Scottsdale, he said.

"I think the market will settle into a reasonable growth rate," Lane added.

He and other Scottsdale City Council members will decide Tuesday on the fate of three disputed apartment projects in the Scottsdale Airpark.

The Scottsdale Airport Commission recommended that the council reject the three projects, with a combined 1,565 units, because the members fear that noise complaints and political pressure would lead to airport restrictions.

Two of the projects are just east of the airport near Scottsdale Road at Greenway-Hayden Loop and Paradise Lane, respectively.

The third is at 15333 N. Hayden Road, site of a closed car dealership east of the runways and next to Costco.

Last month, the Scottsdale Planning Commission unanimously recommended approval of the three projects.

by Peter Corbett The Arizona Republic Oct. 13, 2011 12:54 PM



TDI proposes 667 apartment units for One Scottsdale

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