https://www.bizjournals.com/phoenix/...Y0lRUT09In0%3D
Construction has begun on the redevelopment of the 33-acre Scottsdale Entrada, which is planned to be a mixed-use development with office, apartments, retail and open space.
In December, California-based Banyan Residential, the owner of the project, closed on the land at 64th Street and McDowell Road for $38 million. Plans for the site include 250,000 square feet of office space, 736 apartment units and 5,000 square feet of retail on the vacant former Scottsdale Auto Park site.
All portions of the project are beginning construction at the same time. The office portion of the project is scheduled to be completed by the third quarter of 2021, followed by the first apartments in 2022.
Banyan purchased the property using money from an opportunity fund, which is used to reinvest capital gains into developments in qualified “opportunity zones.”
Opportunity zones were created through the Tax Cuts and Jobs Act and allow investors to invest capital gains realized from a sale of property, stock or business in order to defer paying taxes. The money must be invested within 180 days of a sale for it to be eligible for the deferred taxes. The money can be invested two ways: in real estate or in operating companies within designated opportunity zones. The development will be done in compliance with the program.
The development is fully speculative, according to Tom Adelson, a broker from Newmark Knight Frank who brokered the sale of the property.
Todd & Associates and SmithGroup have worked to design the project.
“Backed by a first-class design team and the support of a stellar equity partner in Bridge Investment Group, we have developed a truly unique mixed-use plan for a very special property... in need of timely renovation,” Ben Brosseau, founder of Banyan Residential, said in a statement.
“Creating desirable living and work space requires design planning with a focus on the end user experience,” Max Friedman, a partner at Banyan Residential, said in a statement. “The Entrada property offered us the rare opportunity to program a large parcel with a blank slate, allowing us greater flexibility to integrate open space, foster connectivity between uses, and create points of interest throughout the site.”
Mike Garlick and Jimmy Hoselton of Newmark Knight Frank will be in charge of leasing the office portion of the property.
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