What to know about a project along Old Town Scottsdale's canal

By: Shawn Raymundo

More multi-family housing and commercial space are coming to Old Town Scottsdale.

A Texas-based real estate firm is building a new mixed-use development, called Magnolia Waterside at Old Town, alongside the Arizona Canal.

Neighboring downtown Scottsdale’s Fifth Avenue District and Scottsdale Arts District, the project is meant to enhance the synergy between the areas while strengthening the neighborhood’s walkability.

Here’s what we know about the project:

What is the Magnolia Waterside?

The Magnolia Waterside comprises a 38,160-square-foot structure that sits on a 1.17-acre property near Indian School Road and Fifth Avenue.

When complete, it’ll feature a four-story building with 54 multi-family dwelling units and 900 square feet of commercial ground-floor space.

Who’s constructing the development?

Magnolia Property Company, a real estate investment and development firm from Southlake, Texas, owns the site and is building the project.

On its website, Magnolia boasts that it owns 42 properties nationwide. Those developments range from high- and mid-rise apartment communities to commercial and mixed-use buildings.

How will this impact Old Town Scottsdale’s parking?

The development will have a tuck-under garage for residents to park.

There will be a total of 66 spaces, including six for guests, according to city planning documents.

Based on its proximity to the canal and downtown Scottsdale’s slew of shops and offices, the project is meant to “encourage alternative modes of transportation,” according to Magnolia.

That includes walking, riding a bike, or taking public transportation.

“Encouraging these alternatives is inherent to downtown development, as the property is located near numerous restaurants, retail and cultural destinations,” city documents stated.

How long will construction take?

It’s unclear when Magnolia expects to finish construction.

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Final Thoughts:
As metro Phoenix’s housing market stays buyer-leaning, more sellers are choosing to pull listings rather than give in to deep concessions or price cuts. With 30% of listings canceled and over half of all home sales involving concessions, sellers are feeling the pinch of a market correction. Still, as inventory begins to dip again, a gradual shift back toward a balanced market could emerge heading into 2026. Patience — and pricing strategy — will be key for sellers in this changing environment.