By Corina Vanek | Phoenix Business Journal
2020 was a momentous year and one that had a dramatic impact on commercial real estate. Office and retail leases stalled, building sales halted and hotel projects were largely put on hold during the height of the Covid-19 pandemic. But that isn’t evident with the massive amount of large developments — from a factory to apartment and office towers to entertainment destinations — teed up to start in 2021. It’s a clear sign that developers are optimistic about 2021 and the years to come.
Here is a look at (two of) the top 10 Valley commercial real estate projects to watch in 2021:
Brothers Shawn and Steven Yari have major redevelopment plans in Old Town Scottsdale. They plan to revamp the city’s bar district to create a higher end hospitality area. Scottsdale City Council approved the rezoning for the plans, which total about 10.25 acres, but not all will be redeveloped for the project, called the Scottsdale Collection.
In total, the plans call for the project to contain 580,451 square feet of commercial space and 512 units of residential. The site is adjacent to where Stockdale is already developing the Marquee office building at Scottsdale Road and Shoeman Lane.
In total, the project will cost about $450 million to develop. Development schedules will depend on market conditions, but the first phase could begin construction in summer 2021.
The plans for the project include demolishing the Dakota nightclub, which is operated by Stockdale, but no tenants will be removed from their locations, the developers said. Plans for the redevelopment area include several new lifestyle hotels in addition to existing restaurants and clubs, including the Mint Night Club and Maya Day and Night Club.
Vertical construction on the first buildings, an apartment complex and an office, at CityNorth near Desert Ridge Marketplace is scheduled to begin in mid-2021. The buildings will kick off development of nearly 100 acres of land that have previously been undeveloped and could eventually include $1.5 billion worth of development.
The developments that are planned and underway are going to use up about 17 acres of the 96.5-acre core, which Crown Realty & Development CEO Robert Flaxman said could accommodate up to $1.5 billion worth of development. Crown has planned to develop the office component on their own, but Flaxman said they have been approached by office developers for the property, and they are entertaining some of those ideas.
A U.S. Bankruptcy Court ruling in early 2019 gave Crown clearance to develop the core 96.5 acres near Desert Ridge and granted it master developer rights to 5,700 more acres, which are owned by the Arizona State Land Department. Since then, all pending appeals have been settled in Crown’s favor. Flaxman said there are not any scheduled auctions for any of the pieces, but as master developer he would like to encourage more development in the area.
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