Mike Padgett, The Business Journal

Whether it was business smarts, financial muscle, luck or all of the above, two major developments planned for Phoenix and Scottsdale are the work of Chicago corporate executives who chanced upon opportunities in the Valley and grabbed them.

David Wallach, president of W Developments, learned from a Chicago business associate who co-owned a downtown Phoenix property that it was for sale. During a recent golfing trip to Phoenix, Wallach visited the site on the south side of Jackson Street, between Third and Fourth streets. The land is next to Bank One Ballpark and America West Arena.

Wallach bought the land and then hired Kitchen Sink Studios to start designs for a 23-story condo building, The Summit at Copper Square. He wants to start work in early 2005. His price range is $170,000 to $700,000.

Wallach said it was serendipity — a suggestion from a Chicago business associate — that started him on the road to designing the tallest residential building in central Phoenix in many years.

“I didn’t choose the site,” Wallach said. “It chose me.”

The same could be said for the latest partnership at the Scottsdale Waterfront, a controversial mixed-use property on 11 acres at the southwest corner of Scottsdale and Camelback roads.

Early this year, Starwood Capital Group announced its partnership with Chicago-based Golub & Co. to build the property that local developers and Scottsdale officials say has the potential to start a redevelopment chapter in downtown Scottsdale.

“Sometimes you get into projects coincidentally or through relationships,” said Golub Chief Executive Michael Newman. “This was a combination. We have come out here, like a lot of Chicagoans, for vacation and pleasure, and we’re always looking for opportunity.”

When they were in Scottsdale two years ago for a wedding, Golub & Co. Chairman Gene Golub, Executive Vice President Lee Golub and Newman saw the vacant property.

They started asking questions and learned the land was owned by Starwood, where the Golub executives already had corporate relationships. By coincidence, a day later, they ran into a Starwood executive, and talks about the current partnership began.

“We said we’re interested, one thing led to another, and it all happened very quickly,’ Newman said. “We all came up with concepts and ideas, and it all just worked out.”

The talks lasted about a year before the partnership was formally announced in early 2004. Construction of the Waterfront’s retail component is to start in June. The residential construction is planned for late 2004. The condo price range is $400,000 to $3 million.

Realtor makes the ‘A’ team
Estates West magazine named Scott Jarson an “A List Realtor” because he and his wife, Debbie, are known as the “go-to team” for buyers interested in architecturally unique residences. The honor is in the summer 2004 issue of the magazine, which showcases luxurious homes in the western United States.

The Jarson and Jarson team’s specialty is homes that are architecturally unique as well as historic. They work regularly with noted architect Will Bruder, who has won many awards, and they have sold several Frank Lloyd Wright- and TaliesinWest-designed homes.

For more: www.azarchitecture.com.

Go west, Wespac
The northward and westward expansion of metro Phoenix is keeping several contractors busy, including Wespac Construction Inc.

The company recently finished the $850,000 WestWing Mountain Community Center in WestWing Mountain, a 1,312-acre master-planned community with about 2,150 homes in Peoria. Pivotal Group is developing the residential community and commercial development in four phases. The community center was designed by SHJ Studio.

Wespac also started a 3,900-square-foot recreational center within Sunbelt Holdings’ 800-acre Sonoran Foothills master-planned community in north Phoenix between 15th and 27th avenues and Lone Mountain Drive and Dove Valley Road.

The community will have about 1,700 residences. The $2.8 million recreational center is scheduled for completion in October. The architect is David W. Fulk Architecture in Scottsdale.

Real estate notes
–The Bade Cos. is busy in the northwest Valley with medical and professional offices at the southwest corner of Greenway Road and 75th Avenue in Peoria; the Union Hills Professional Centre at the southeast corner of Union Hills Drive and 89th Avenue in Peoria; and medical and professional offices at the northeast corner of Reems Road and Mountain View Boulevard in Surprise.

–KB Home’s Phoenix division moved to the fourth floor of Two Gateway, 432 N. 44th St., Phoenix. The company formerly had offices on the building’s first and second floor. The new telephone number is 602-567-4800. KB Home has 26 new home communities in metro Phoenix.

–Summit Builders received the construction contract for the Laveen Village Shops and Fry’s Food Store on 18 acres at the northwest corner of 51st Avenue and Baseline Road in Phoenix. The shops will have 31,000 square feet, and Fry’s will have 74,000 square feet. The work is scheduled for completion early in the fourth quarter of 2004. Summit was hired by Weingarten Realty Investors of Phoenix and Fry’s Food Stores of Arizona.

By Blanche Evans

May 12, 2004

Like many warm weather communities that boomed during the 1980s, Tempe, Arizona has a large stock of older homes, but even so, they are selling well compared to new housing due to the town’s evergreen popularity with ASU students and retirees, say local Realtors.

“Tempe is dominated by ASU,” say Realtors Wally and Patricia Neal. “South of the Superstition Freeway, the ASU influence is less severe, but, even here, a large percentage of the residences are devoted to student rental housing. As such, market conditions are influenced more by factors emanating from the school (such as increases in tuition, fluctuation in enrollment, etc) and investment factors, than by normal housing issues.

They suggest, “Structure age is an issue for most of Tempe. Except for very limited, but nice redevelopment in the Northwest along the river, even the newest homes here were built in the early 1980′s. Construction materials, architectural styles, homes sizes, etc, are typical of this era. Short commute distances and times to/from downtown Phoenix (the major commute flow pattern throughout the entire metro area) is a positive factor for Tempe properties.”

Says Realtor Jeanne Bryson, “Tempe offers a quality of life unparalleled to any place in the country. Arizona’s sixth largest city, with over 165,000 residents, Tempe has successfully blended the dynamics of a high-tech business center, the fun and excitement of a resort community, the warmth and comfort of a residential neighborhood and the small town atmosphere of a college community. Centrally located to downtown Phoenix, Sky Harbor Airport, the 101 freeway, 202 and US60, Tempe’s strategic location makes it popular for businesses and residents. More than 750 high-tech & manufacturing firms reside in Tempe, including Motorola, AlliedSignal and Medtronic Micro-Rel employing more than 6,000 people. Tempe’s educational environment includes ASU with over 50,000 students. Downtown Tempe is a cultural center in its own right, with a wide variety of restaurants, shopping, movie theatres, hotels, corporate offices and condominium developments. The Spring and Fall Festival of the Arts drew over 250,000 visitors this year. Tempe is also the sports capital of Arizona — home to the Arizona State University Sun Devils and NFL’s Arizona Cardinals as well as the setting for the Fiesta Bowl.”

About the market, Bryson says, “Sales continue strong in the Tempe area, with an average sales price of $183,709. Last month ( April 2004), there were 294 homes sold — with an average market time of 53 days. Sellers are getting 108.81 percent of their listed price! Buyers have a wide variety of homes to choose from in Tempe: older homes in established neighborhoods may be more affordable, custom homes on acre+ lots and trendy loft-type condominiums are available in the Mill Avenue area, as well as starter homes in the FHA price range ($165,126.)”

Agrees Realtor Pat Hill, “Tempe home sales continue to rise. In April 2004, the average home price was about $183,533 which was up from March 2004 of about $180,000! The most active area for home sales was in the area close to South Mountain with 194 homes sold. Seller were getting 98.47 percent of their asking price. With cultural advantages of the university such as theatre, educational classes, sports and a great downtown area of restaurants and shopping, Tempe is a terrific college town atmosphere.”