Courtesy of Ke Thoi A Scottsdale developer wants to tear down the once-popular Barcelona nightclub and build apartments on a site north of the Scottsdale Quarter.
Scottsdale Place LLC submitted a rezoning request last week that would allow construction of a four-story, 240-unit apartment complex at 73rd Street and Greenway-Hayden Loop.
The Residences at Zocallo Plaza would replace the nightclub and a nearby office building on a 6.42-acre site.
Economic conditions have created strong demand for high-end apartments, said zoning attorney John Berry, who is representing Scottsdale Place and Jeffrey Newburg, one of its principals.
"Merchants and employers in the area are very enthusiastic about it," Berry said.
The Zocallo apartments, just east of shops along Scottsdale Road, would be among the first apartments built within the original Scottsdale Airpark area.
Development surrounding the Scottsdale Airport was heavy with office-warehouse uses starting in the late 1960s but has expanded in the past two decades to include office complexes, design centers, hotels, car dealers, retail, restaurants and entertainment.
Barcelona, a 19,000-square-foot restaurant and nightclub, opened in late 2001 and had a strong run before the economy and its fortunes turned. It closed in June 2009 and no one stepped up to reopen the flashy club that attracted a wide age range of patrons.
Car-wash owner Danny Hendon, who built Barcelona, had a ground lease for the nightclub and his offices for Danny's Family Cos. remain on the north side of the proposed apartment site. Hendon filed for bankruptcy protection last year.
Scottsdale Place is asking for a zoning change to allow residential units within an airpark mixed-use development. The apartment complex would include four 48-foot-high buildings with interior corridors and half the parking underground.
The apartments would be outside of an area surrounding the airport where noise-sensitive uses are not recommended.
"This is a true live, work, play environment," Berry said. "It's close to Scottsdale Road but far enough away from the airport."
Jim Keeley, founding partner of Colliers International's Scottsdale office, said apartments make good sense for the area and more multifamily projects are likely in the Airpark.
"The concept of mixed use has been around a long time, and it's picking up steam now," the longtime Airpark broker said.
Berry said he anticipates the zoning issues will be decided by the end of this year. If approved, construction of the apartments would likely start toward the end of 2012 and take about 18 months to complete, he said.
The two-story Barcelona Business Center northwest of Greenway-Hayden Loop and 73rd Street has a separate owner and would not be part of the Residences at Zocallo Plaza.
by Peter Corbett The Arizona Republic Aug. 24, 2011 09:03 AM