The Arizona-based Westcor, a powerhouse in retail development, bought a 112-acre parcel near the corner of Scottsdale Road and the Loop 101 Freeway in North Scottsdale last week. Known for developing some of the best shopping destinations in Arizona; Scottsdale Fashion Square, Biltmore Fashion Park and Chandler Fashion Center, Westcor won the bid of $32 million today and plans to build a massive high-end mixed-use development, directly across the street from One Scottsdale. Earlier this year, Westcor teamed up with DMB Associates to complete the One Scottsdale project, another high-end mixed-use development that will redefine urban living in the desert. The agreement in that deal allocated 500,000 square feet of commercial space for Westcor to control.
Westcor has been planning to develop Palisene for years now, even though they didn’t own the land. Skeptics believed they would have backed off the deal because they joined DMB in the One Scottsdale project. Winning the bid proved that they are highly confident they can complete both projects.
This high-end urban luxury in the North Scottsdale/North Phoenix will be a true test to see how much of this product can be absorbed in that area. Both new urban style projects under construction, CityNorth and One Scottsdale have already experienced hiccups, but will get built. If many of us urbanites had our druthers, we would love to see all three developed today. Unfortunately, the market has been struggling and banks are still very reluctant to loan, even when big name retailers sign leases. Banks are even more timid to lend money for mixed-use projects that are ever so rare for Arizona. The area will most likely boom, unfortunately it is just a matter of time before the market is balanced again to begin more construction.
All three projects are distinguishable and will transform one of the last empty areas in the Greater Phoenix area into a dynamic and world-class destination for living, working and shopping.
