Published:   November 22, 2013
Volume:   XIX    Number:   46


Scottsdale - A venture formed by Crescent Communities in Charlotte, N.C. (Todd Mansfield, pres.) and Glimcher Realty Trust in Columbus, Ohio (NYSE:GRT, Michael Glimcher, CEO) paid $9.25 million to acquire a parcel within the Scottsdale Quarter mixed-use project that is planned for 275 apartments. Glimcher announced plans in May to develop the upscale rental units with Crescent Communities after a deal with a previous developer partner fell through. Records show Crescent - SDQ III Venture LLC (Crescent/Glimcher entity) acquired the parcel with a $45.525 million acquisition and development loan from Regions Bank. The seller was SDQ III Fee LLC, a company formed by a subsidiary of Glimcher Realty. The publicly-traded real estate investment trust (REIT) is the developer of the hugely successful Scottsdale Quarter, which is one of the hottest spots for entertainment, restaurants and shopping in the Valley. The 28.61-acre Scottsdale Quarter development is located at the southeast corner of Scottsdale Road and Greenway-Hayden Loop. The high-end multi-family project, being called Crescent Scottsdale Quarter, is expected to be open by Spring 2015. Plans from Gromatsky Dupree & Associates (GDA) show a six-story residential building with studio, one- and two-bedroom units ranging from 542 sq. ft. to 1,480 sq. ft. Whiting-Turner Contracting Co. just started construction on the apartment complex. Development cost (land and buildings) estimated at $61 million. Crescent Communities will have a majority interest in the apartment project, with a minority interest going to Glimcher Realty. The 2.713-acre multi-family site is within a 9-acre parcel being developed in the third phase of Scottsdale Quarter. The third phase land is at the southwest corner of 73rd Street and Greenway-Hayden Loop. Plans for phase three include retail, restaurants, office, hotel and the apartments. At year-end 2012, BREW reported Glimcher Realty looking for a new development partner for the Scottsdale Quarter apartments after Zaremba Group in Cleveland, Ohio shut down its operations. That opened the door for Crescent Communities, which may be in the mix with Glimcher to develop other components in the 9-acre final phase of Scottsdale Quarter. Glimcher has been courting Bloomingdale's to locate a department store at Scottsdale Quarter. The 500 or so residents who will be living at Crescent Scottsdale Quarter could certainly help that cause. Brian Natwick, pres. of Crescent Communities Multifamily Group, is the contact . . . call him at (980) 321-6000. Marshall Loeb is the contact for Glimcher on Scottsdale Quarter . . . (614) 621-9000.

Copyright © Business Real Estate Weekly of Arizona