Saturday, September 15, 2012

6,900 Scottsdale apartments in pipeline

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.

But signs of dirt turning are out there.

Optima Sonoran Village is under construction southeast of 68th Street and Camelback Road with the first of 210 units in a seven-story building targeted to open as early as May, said David Hovey Jr., an Optima vice president.

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.

He and other market watchers say not all the apartments will be developed. But a few projects are starting to turn dirt or will be under way later this year.

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

"Developers are definitely going to meet some of the demand," said TeKampe, an apartment analyst. "I don't want to get people spooked, but (the apartments) won't all be added at one time."