Chicago firm starts work on Scottsdale luxury condos, 7 other real estate deals to know

Chicago firm starts work on Scottsdale luxury condos, 7 other real estate deals to know

 by Staff - Phoenix Business Journal

Source: Phoenix Business Journal | The Staff

Chicago-based Belgravia Group Ltd. has broken ground on a $100 million luxury condominium project in north Scottsdale.

With nearly 50% of the project already sold, initial deliveries are expected in late summer 2024 for the private gated community, called Portico - North Scottsdale, located within DMB's One Scottsdale master-planned development slated to include up to 2.8 million square feet of retail and office space, 2,000 residential units and 400 hotel rooms.

Designed by KTGY, Portico homes are priced from the $900,000s to $2 million, offering up to 2,768 square feet of indoor living space along with private terraces.

Community amenities include an upscale clubhouse, outdoor pool and spa, and fitness center.

Cambridge Properties is the brokerage leading the sales for Portico.

• Dallas-based StreetLights Residential has opened its first apartment community in Gilbert.

The Tyler, 3150 E. Ray Rd., is within the mixed-use Epicenter at Agritopia, which includes 50,000 square feet of retail space including more than 20 unique retailers within seven shops. More are slated to open later this year.

Looney Ricks Kiss served as the architect of record and INK + ORO handled the Interior Design. StreetLights Arizona Construction LLC served as a general contractor.

Monthly rents range from $1,630 for a 504-square-foot studio to $4,575 for a three-bedroom, 1,313-square-foot unit.

The 320-unit luxury apartment community is the fourth project for StreetLights, but more are on the way.

The developer is building a 400-unit luxury apartment community on top of Whole Foods at the Paradise Valley Mall Redevelopment project. Ground was broken in late 2021 for the 335-unit The Alyssa in Tempe, while the 58-unit The Bergen broke ground in early 2022 in Phoenix. StreetLights also is working on a 314-unit luxury community at One Scottsdale.

Completed projects include The Ryan, a 332-unit high-rise community in downtown Phoenix, The Cameron, a four-story, 349-unit luxury community in Tempe, and The Angela, a 253-unit community it built in 2019 and sold for $117 million in October 2020, according to Tempe-based Vizzda LLC real estate database.

Greenlight Communities lands in Peoria

• Over in the West Valley, as expected, Scottsdale-based workforce housing developer Greenlight Communities has closed on the land for its first affordable apartment development in Peoria. The land, at the southwest corner of 87th and Peoria avenues, will be home to Greenlight’s 190-unit Streamliner 87th community, with construction scheduled to begin by the end of 2023 and leasing expected to start in May 2025.

Greenlight announced the deal on May 31, but its Facebook page indicates that the developer closed on the land on May 25.

In February, the Business Journal reported that Greenlight had earmarked $697 million to build more than 3,600 units in metro Phoenix and Tucson, with five communities built and sold and 14 more in various stages of development. At that time the company said it had closed on land buys for 11 of the 14 deals, and the Peoria land was among three that were in escrow. The other two were in Phoenix.

Patt Watts, co-founder and co-principal of Greenlight Communities said the Peoria project will attract new businesses and residents to the area, which is in the downtown Peoria vicinity, less than a mile from the Loop 101 and also close to Grand Avenue.

“Streamliner 87th will transform a vacant lot into a vibrant rental housing community and be an essential part of the revitalization of the downtown area,” Watts said in a statement. “We are confident that Streamliner 87th will be a success and a welcome addition to Peoria’s dynamic city.”

The project will include 71 studio apartments, 72 one-bedroom units, and 47 two-bedroom units. Rents are expected to start around $1,099 for studios and average $12,50 per month.

The developer focuses on providing attainable housing for workers who earn around $40,000 a year — educators, retail workers, and some health technicians. Its projects do not include government-subsidized units, and it keeps costs down by using its own civil engineering firm and using simple and efficient designs.

Apartment community gets refinancing; another is sold

• Walker & Dunlop Inc. (NYSE: WD) has arranged the $59.7 million refinancing for The Place at El Prado, a 432-unit garden-style apartment community built in 1979 at 1050 S. Longmore in Mesa.

Walker & Dunlop’s Alex Inman, Jon Hyduke, Rene Jaubert, Harrison Hoskins, and Hannah Coen arranged the refinancing opportunity from an existing Floating Rate Agency loan to a Fixed Rate Loan on behalf of the client, MC Cos., and the lender, Freddie Mac.

“Alex and his team notified us at the start of the year that interest rate cap escrows were increasing significantly on the existing loan and provided a few options, including a five-year fixed rate," Ross McCallister, principal of MC Cos., said in a statement. "Not only did this solution provide us with a considerable amount of cash flow, but it also reset our interest-only period and allowed us to pull a small portion of equity out. Given how turbulent the markets are today, we couldn’t have been more thrilled with the end result.”

• Marcus & Millichap Inc. (NYSE: MMI) negotiated the $6.25 million sale of Urbana at Glenrose, a 22-unit apartment community at 4250 N. 25th St., Phoenix.

Paul Bay, senior vice president of investments, and Darrell Moffitt, senior vice president of investments in Marcus & Millichap’s Phoenix office, had the exclusive listing to market the property on behalf of the seller. The buyer was procured by Bay and Moffitt.