Cruising the residential condominium market in metro Phoenix is like sailing uncharted waters, according to several real estate veterans.
Maybe. But it appears the successful sales of residential condos is an ironic example of the saying that local home builders long have used to defend their cookie-cutter developments: "We’re giving the home buyers what they want."
Home buyers have no choice but to buy what the builders offer. If all they offer is white houses, buyers will choose white houses.
In the case of the condo communities, most developers — such as Optima Inc. Founder and President David Hovey and W Developments President David Wallach, both of Chicago, and Patrinely Group President C. Dean Patrinely of Houston — come from cities where vertical living is a major option in residential living.
In metro Phoenix, condo life is just five years old. It’s a feisty adolescent taking its place in the Southwest housing market that for decades has been dominated by single-family homes, and that option is old.
The out-of-state builders are offering a fresh housing product, and the hectic sales pace is a clear sign that the condo builders "are giving the home buyers what they want."
Chandler offices planned
Buchanan Street Partners and McMahon Development Group, in a $36.5 million joint venture, are planning Chandler Midway Corporate Center, a 189,000-square-foot office development on the northeast corner of Chandler and Gila Springs boulevards.
Buchanan Street has offices in Newport Beach, Los Angeles and San Francisco, Calif.; Chicago; and Atlanta. McMahon Development has offices in Solano Beach, Calif.
$550,000 pledged
The Chandler Education Foundation is benefiting from an innovative hotel and condo development in Chandler.
Jeff Cline, chairman of Signature Properties West LLC, surprised everyone at a recent promotion of his Elevation Chandler development. A silent auction and a raffle, plus a match of the private donations by Cline’s lender, EastWest Private Equity Group, generated $50,000 for the foundation.
Cline then pledged to the foundation 5 percent of the net profit, up to $500,000.
Cline’s Elevation Chandler is designed for 10 acres next to Chandler Fashion Center. It will have a 243-room Marriott Renaissance ClubSport conference hotel, a fitness club, a luxury spa and restaurants.
Topping the 10-story building are 27 Cielo Sky-Rise Residences. The Weitz Cos. has started work, with completion set for 2007.
Next to the hotel is a second building with 15 floors. The first three are for offices, and the other 12 levels will be a residential loft, condo and penthouse component named Casero. Construction of the second building is to start in early 2006, with completion in 2008.
Mike Padgett
The Business Journal
