By the time Harvey Friedman and his wife, Fran, finally move into a lavish new condo in downtown Scottsdale’s Waterfront Residences, it will have been about two years since they bought the place.
While high housing prices are something that Scottsdale residents have come to accept, a new trend is making an impact on the city’s downtown: the multimillion-dollar condominium. At the Waterfront, some of them are selling for nearly $4 million. The prices are far and away higher than elsewhere in the Valley, Scottsdale officials said.
But it’s worth it to Friedman, a 64-year-old retired electrical engineer, to live without the hassle of household upkeep and near friends and entertainment.
He wouldn’t reveal how much he paid. "We got in before they broke ground," he said. The couple previously owned a home in Troon and have been living in an east Phoenix condo for the last couple of years.
Friedman, originally from Cleveland, said they travel a lot and are only in Phoenix part of the year.
"You turn the key and walk away and know you have security," he said. "We don’t have to worry about picking up the lawn or taking care of the pool while we’re gone." It’s also convenient to live near all of downtown Scottsdale’s amenities. "It’s just location and the area, being close to all the shopping and restaurants," he said.
The 13-story Waterfront southwest of Scottsdale and Camelback roads is the most conspicuous of the high-end condo developments.
Only five units remain unsold in the luxury towers, said sales representative Babbi Gabel. Three of them are priced between $1.6 million and $1.9 million, while two penthouses are going for at least $3.25 million.
At least eight other nearby condo developments are fetching prices in the millions for downtown living.
"You would think it would be a lot of out-of-town buyers used to high-rises but there’s a lot of people moving from Desert Mountain (in north Scottsdale) and Paradise Valley, and they’re looking to downgrade their lifestyle," said Marty Stephens, president of the Scottsdale Area Association of Realtors.
Most of the condos slated for downtown Scottsdale are not even finished yet and they’re already sold, she said.
"A lot of people are moving here because they want to be close to where things are happening and they’re looking to get away from the upkeep of yards," Stephens said.
Dave Roderique, the city’s general manager of economic vitality, said condos in Scottsdale generally are priced much higher than in Tempe and Phoenix, where prices typically range between $300,000 and $500,000.
"Given median prices, that’s very high and you’re not seeing those kind of prices in other developments," he said.
Roderique said that’s because amenities like food, entertainment and shopping featured in downtown Scottsdale are in high demand, driving up property values.
While many downtown condos are priced in the millions, the median home price in Scottsdale for a new single-family home is $716,000, while the median price is $525,000 for resale homes, according to Jennifer Hawkes, a research specialist with the city’s Economic Vitality Department.
Stephens said people who want to live downtown are buying into a lifestyle.
"What people pay is a matter of supply and demand," she said. "Is there anywhere that has this kind of lifestyle on the outskirts or anywhere else?"
Roderique said the one constant is that buyers have access to substantial resources.
"A lot of these people are probably coming out of million-dollar homes," he said.
He ascribed the demand to baby boomers – who don’t want to take care of a large house and yard and whose children have left the home – to young professionals and those buying second homes or looking for winter residences because of good economic conditions and low interest rates.
"It’s a combination of factors," Roderique said.
"It’s a pretty wide diversity of people coming in."
He said downtown Scottsdale is continuing a four-year boom in condo construction.
"Overall, we have close to 3,000 units that are in some stage of development in downtown," he said.
"It’s really only been in the last four years."
The influx of downtown residents is a healthy sign of a vital downtown, Roderique said. "I see it as a very positive aspect. Everything we have seen in recent years suggests residential is a very important part of downtown."
The project :
The $250 million Scottsdale Waterfront project comprises two, 13-story buildings of 198 condominium units. The towers are the centerpieces to two- and three-story buildings housing offices and shops, as well as planned public gathering spots, two bridges and public art. The 11-acre project is southwest of Camelback and Scottsdale roads.
The perks
Millions of dollars spent on a condominium at the Waterfront do bring perks. For instance, upper floors have views unimpeded by neighboring buildings, since the development is one of the tallest structures around. Residents also will have the advantage of a private wine cellar.
By Ari Cohn – East Valley Tribune
