Tag Archives: multifamily construction

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Downtown Scottsdale’s Only New-Construction Condominiums Break Ground

iStar Residential has broken ground on the final  phase of Sage, the luxury condominium community along the Scottsdale Waterfront, that will be the only new-construction, for-sale condominiums in downtown Scottsdale.

The construction, which is in excess of $35 million of residential real estate, signifies the first ground-up condominium development in Downtown Scottsdale since the recession. Following the success of the sold-out first phase, Sage’s final phase will feature 72 two- and three-bedroom condominiums ranging from 1,490 to 1,775 square-feet, with optional den floor plans, and is expected to be priced from the high $400,000s.

Located directly south of Sage’s first phase at Chaparral Road just east of Scottsdale Road, the two, three-story buildings are now under construction with owner move-in by early 2015. A priority interest list is currently being developed and sales will begin this winter led by lifestyle and design visionaries, The Kor Group. The Kor Group is well known for creating the Viceroy Hotel brand and developing one-of-a-kind lifestyles experiences that build lasting value for homeowners and local communities.

Haute Photography - Phoenix Photographer

“It’s exciting to be the first and only new condominium development to break ground in downtown Scottsdale in over six years,” David Sotolov, senior vice president at iStar Financial. “There is pent-up demand for this type of new product within walking distance to the heart of downtown Scottsdale. It just doesn’t exist anywhere else right now other than at Sage. For months we’ve received calls on a weekly basis from interested buyers and Realtors who are eager to purchase. There are approximately 5,000 apartment units either under construction or recently completed in Scottsdale and Tempe. But, Sage is the only fully-amenitized, new community for-sale in Scottsdale. iStar is committed to the Phoenix-metro market and we have big expectations about the area’s growth and the completion of the community at Sage.”

The design and architecture of the final phase will be nearly identical to the first, but the final phase will have more efficient layouts and additional state-of-the-art technology conveniences such as WiFi programmable thermostats, USB charging ports and enhanced energy-efficient windows. Tucked into a quiet residential neighborhood that lines the waterfront of The Arizona Canal, Sage combines the feel of a suburban lifestyle in an urban location. Upscale yet intimate, Sage’s traditional architecture boasts stone-lined walls and chimneys complemented with architectural niches and dimensions that differentiate one set of homes from the next, creating a picturesque community. Inside Sages’ residences are top-of-the-line features and finishes, including Dacor appliances and high-end fixtures, granite and travertine countertops, natural stone gas fireplaces, over 9-foot ceilings, hardwood floors, private oversized balconies and patios overlooking mountain and water views and dramatic foyer entrances that create an impactful sense of arrival. With sophisticated details at every turn, Sage homes have all of the characteristics of a luxury estate.

Along with the final phase, iStar is constructing a paved walking path from Chaparral Road to the southern end of the property line with enhanced, lush landscaping that will connect Sage to the heart of Downtown Scottsdale. The first phase of Sage, a collection of 50 condominiums, townhomes and penthouses, sold out in early 2012.

Construction Spending

Construction Spending Reaches Highest Level Since December 2009

Construction spending in June rose to a 2-1/2 year high as double-digit percentage increases in private residential and nonresidential construction more than offset an ongoing downturn in public construction, according to an analysis of new federal data released today by the Associated General Contractors of America. Association officials said they expect the disparity between private and public construction is likely to persist and urged policy makers to put more funding into infrastructure projects.

“The June spending gains come on top of upward revisions to May and April totals, reinforcing the notion that private construction is now growing consistently,” said Ken Simonson, the association’s chief economist. “Even more encouraging, the improvement is showing up in a wide range of residential and nonresidential categories.”

Simonson noted that total construction spending gained 0.4% for the month and 7.0% year-over-year. Private nonresidential spending climbed for the fourth consecutive month and was 14% higher than in June 2011. Residential construction increased 1.3% for the month and 12% year-over-year, with new multifamily construction soaring 3.4% and 49%, respectively, and single-family homebuilding up 3.0% and 19%.

The construction economist said that five of the 11 private nonresidential categories in the Census Bureau’s monthly report registered double-digit percentage gains in spending from June 2011 to June 2012: power and energy construction (including oil and gas-related projects), 26%; hotels, 26%; manufacturing and educational, 19% apiece; and transportation (mainly trucking and rail facilities), 17%. There were also 7% year-over-year increases in health care, commercial (retail, warehouse and farm) and office construction.

Public construction spending appears to have stabilized in recent months but the June 2012 total was 3.7% less than a year earlier, Simonson noted. He said only two of the Census Bureau’s 13 public categories posted year-over-year increases.

“Private nonresidential and multifamily construction should continue to grow in the second half of 2012 and beyond,” Simonson predicted. “Single-family homebuilding also should top last year’s figures, although progress may not occur every month. As a result, total construction spending in 2012 will be positive for the year for the first time since 2007 even though public construction will remain in the doldrums.”

Association officials said construction growth will remain unbalanced, however, unless lawmakers enact more funding for essential water, wastewater and other infrastructure projects.

“Although Congress has kept highway spending from falling, other types of infrastructure, including our aging water systems, need attention,” said Stephen E. Sandherr, the association’s chief executive officer. “There is nothing to be gained from letting our infrastructure deteriorate further.”