Work has begun on the next phases of One Scottsdale — a 75-acre development that will be the home to a Hilton Home2Suites as well as retail shops, dining destinations and medical offices north of Loop 101.
Up first on the to-do list for construction was finalizing the infrastructure of the Hilton Home2Suites, which is expected to open in October and laying the infrastructure for the coming retailers – which wound up being a costly chore, according to developers DMB Associates, Inc.
“We put another approximately $4 million worth of infrastructure in to support the hotel, the retail and the office users and some additional retail pads along Scottsdale Road,” said Michael Burke, DMB senior vice president of commercial, development.
However, rising costs are among the issues that Burke has become all too aware of throughout this project.
“The portion of the infrastructure between Thompson Peak and Legacy Boulevard has taken about six months longer than it was scheduled for mainly due to labor and supply chain issues,” he said. “Our budget hasn’t been as impacted but the infrastructure has.
This has largely impacted the 54-acre project South of Legacy Boulevard that DMB is planning as a mixed-use “village” that will include a multifamily project with StreetLights Residential.
“We’re just getting ready to start building the support on the multifamily parcel and that has been impacted by the construction pricing and inflation more than anything,” Burke said.
Despite the delays and rising costs, Burke and the rest of his team remain determined to get the project finished and give residents like DMB Associates CEO Susan Bansak – who calls North Scottsdale home – a place to dine and shop that’s closer to home.
“I live up in Pinnacle Peak and I can’t tell you how excited I would be able to not have to drive any farther south than Thompson Peak Parkway to have the exciting food and beverage offerings and to have other things available to me,” she said.
“We want to do something exciting, different and will benefit the city of Scottsdale and all of the constituents that it serves.”
The project recently received approval from the city Design Review Board to move forward on a condominium complex that has already amassed interest on the 45 units made available for pre-sale.
Also in the works for One Scottsdale are 65,000 square feet of food and beverage space and DMB is working through the feasibility of adding a senior living facility to the project.
“There’s a lot of demand. It’s a great project, it’s a great location and there’s been a ton of planning and design work done to kind of make it something that the city hasn’t seen in a while,” Burke said.
With progress moving forward toward getting more of the land that was first purchased nearly 20 years ago developed, it is loosely estimated that it could take another decade to fully build out the 75 acres that make up One Scottsdale and a driving factor of that will be the economy, according to Burke.
“It’s hard to say since it depends on things in the economy and what happens with inflation,” he said. “It might be sooner but inflation issues, labor shortages talk of recession now could very well delay it more.”
Despite the lengthy completion time, Bansak and Burke believe that this will be an exciting addition to Scottsdale residents.
“I think our location is neat since it is kind of the gateway to north Scottsdale where it’s not quite urban and it’s not quite suburban so it’s a great place of transition,” Bansak said.