News Ticker

6,900 Scottsdale Apartments in the Pipeline

By Peter Corbett, and Edward Gately for The Arizona Republic

Optima Sonoran Village

Scottsdale’s first wave of apartment development is advancing downtown but the big surge isn’t expected to sweep across the city until next year.

Scottsdale was flooded with rezoning requests and plans over the past two years to build apartments after a decade with only a few hundred new units added to the city’s housing supply. Most of the projects were approved but there has been a lag in development while builders finalize their plans and secure financing.

Optima, with plans for 781 apartments and condominiums is the first of nearly 20 Scottsdale apartment projects with about 6,900 units in the development pipeline, said Pete TeKampe, Marcus & Millichap vice president of investments.

Scottsdale’s apartment building boom is expected in 2013 with thousands of renters likely to start moving in the following year.

TeKampe, an apartment analyst, said, “I don’t want to get people spooked, but (the apartments) won’t all be added at one time.”

After a big rush last year and early this year, the number of new applications for apartment complexes has come to a halt, Dan Symer, Scottsdale senior planner, said.

Apartment rents in the first half of 2012 were up 4 percent over last year in south Scottsdale to an average of $770, and up 2.5 percent to $928 in north Scottsdale/Fountain Hills, according to a Marcus & Millichap report.

The apartment vacancy rate was 3.6 percent in south Scottsdale and 4.7 percent in north Scottsdale/Fountain Hills.

The Valley’s overall market vacancy rate of 6.4 percent is at its lowest level in six years.

The Valley housing market will add 1,260 apartments this year, increasing the overall supply by 0.5 percent.

Read more at AZCentral

Sample of Major Proposed Scottsdale Apartment Projects

Project

Location

Units

Open

Status

Optima Sonoran Village 68th St. and Camelback Rd.

781

2013

Under construction
Sky Song McDowell and Scottsdale roads

325

2013

Under construction
Blue Sky Scottsdale and Camelback roads

749

2015

Groundbreaking, 1st quarter 2013
Portales Place McDowell and Scottsdale roads

300

2014

Groundbreaking, 1st quarter 2013
Bauhaus Flats Thomas and Scottsdale roads

274

2014

Groundbreaking, 4th quarter 2012
Archstone at DC Ranch Pima Rd. at Legacy Blvd.

224

No information
Jefferson at One Scottsdale Jefferson St. at Scottsdale Rd.

677

No information
Broadstone on Lincoln Scottsdale Rd. at Lincoln Dr.

264

2014

Demolition started
Broadstone at Waterfront Arizona Canal at Scottsdale Rd.

259

2015

In final permitting
Residences at Zocalla Place Greenway-Hayden Loop at 73rd St.

240

No information