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Location prime draw for luxury Arizona lofts
Edmonton Journal
Jun 04, 2011 :
Location prime draw for luxury Arizona lofts
Selling price a fraction of what condo would fetch in Canada
By Dawna Freeman, Edmonton Journal June 4, 2011
If there's one thing Canadians have learned from America's housing crash, it's how to pick premium U.S. properties.
Sure, there are still bargains to be had in the shattered Sunbelt, but discriminating secondhome shoppers, flush with above-par buying power, are rejecting the cookie cutters in favour of undervalued, high-end properties that will reward them with pleasure now and price appreciation in the future.
The current demand for better-designed homes is not lost on Wade Hundley, CEO of ST Residential, an American asset management company that holds $2.7 billion US in residential luxury condominium properties in Georgia, Florida, Texas, Nevada, Arizona and California in a public-private partnership with the Federal Deposit Insurance Corp. (FDIC). He credits the housing crash for steering North Americans back to quality buildings. "The market was so frothy in the '90s and 2000s that people lost sight of the importance of quality," says Hundley, whose consortium of private equity investors is led by Starwood Capital Group, owner of the stylish W Hotels. "This housing crash pointed (the importance) out and savvy buyers today are much more in tune with quality in design and attention to detail. They know what a dollar can buy and how quality in architecture will pay dividends for them in the future when the market returns."
In January 2011, ST Residential relaunched a luxurious residential condominium complex in downtown Scottsdale that delivers two of real estate's most desired tenets -prime location and high quality.
Phase One of Safari Drive, an award-winning urban loft boutique, is at the prominent intersection of Camelback and Scottsdale roads, the cultural corner of arts and entertainment with world-class dining, nightlife, shopping and galleries.
Located on 4.8 acres (1.9 hectares) spanning seven city blocks, the high-end waterfront development backs onto the sun-glistened Arizona Canal, with kilometres of walking and biking trails.
The mid-rise complex is built on the site of the legendary Safari Hotel, a mid-century resort enjoyed by Hollywood's elite. Phase 2 will be a 12-storey highrise.
Across Scottsdale Road is the upscale, twomillion-square-foot Scottsdale Fashion Square mall. The Scottsdale Waterfront, a promenade of shops, boutiques, cafes and restaurants along the canal, and the historic and touristy Old Town Scottsdale, are a short walk away. Sky Harbor International Airport is 10 minutes by car.
Marcus Horeak, whose parents live in Phoenix, spent the last two years researching the local market before buying his 933-sq.-ft. flat at Safari Drive in April.
"Real estate is all about location, and Camelback and Scottsdale roads is one of the top 10 intersections in the Southwest," says Horeak, who traded some of his paper investments for prime real estate.
"This property is an investment I get to enjoy now. In the morning, I can look out my window from the shower and see the McDowell mountain range to the north and the Waterfront Canal to my east."
The 93-unit Safari Drive opened briefly before the housing crash halted sales in 2007. In 2009, the FDIC took control of the bank-owned property and it sat, maintained, until Chicagobased ST Residential purchased it as part of its portfolio of luxury residential properties.
Hundley says Safari Drive was built in 2006 during the move toward greener urban living, and he observes that pedestrian-friendly planning appeals today: "Look at the types of homes people are demanding to own or rent now. Urban living is very appealing, especially with gas prices going up."
The contemporary four-storey steel and concrete structure, with wooden overhangs and metal railings, has walls of floor-to-ceiling glass windows that optimize light, not heat. Clean lines dressed in decorative rusted steel material reflect the new desert-inspired modernism and the southwestern indoor/outdoor lifestyle.
Safari Drive was recognized by the American Institute of Architects (AIA) in 2010 for its sustainable design and unique character, and in 2011 earned Project of the Year from Builder magazine. It has been certified a Green Building Program by the city of Scottsdale.
The seven buildings, which are offset from each other, have a mix of exterior entry and hallway entries, and terraces or decks. They cluster around the complex's interconnected courtyards, offering residents common access to a barbecue area, two pools, a Zen garden and yoga lawn.
Sales director Angela Moore says a 1,700-sq.ft. fitness centre on the lower retail level is coming soon. Since they reopened in January, she says they are averaging four sales a month.
Staggered for privacy, the long slim units offer an open linear line from kitchen through living room to patio. Every unit is pre-wired for motorized blinds and pre-packaged for surround sound. Kitchen cabinets are Italianmade Scavolini and appliances are Sub-Zero. All parking is underground.
Single flats, live/work lofts and two-storey townhomes range in size from 933 to 2,722 sq. ft. Originally priced from $800,000 to $2 million, these condos now sell for $399,500 to $699,500 (all prices in U.S. dollars).
Horeak says the reduced price puts Safari Drive at the intersection of value, quality and fun. Currently condo shopping in Vancouver, where his company is transferring him, he adds: "I guarantee you, in Vancouver you would pay $3 million for this property."
Hundley says they believe the superior interior finishes and quality exterior make Safari Drive the best valued property in the area, and he predicts future prices will begin to reflect that quality.
"We're beginning to see prices starting to bounce on the bottom. The correction is slowly taking place. We're raised prices five per cent at our other Arizona property since we first started selling six months ago. In Miami, our property is up 15 per cent off bottom."
For information on Safari Drive, go to SafariDriveScottsdale.com or call the sales center at 480-421-2000. Sales and marketing handled by Geoffrey H. Edmunds Realty.
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