Massive urban village could rise in N. Scottsdale in 2016

A mix of modern office towers, street-level shops and high-density housing could soon bring thousands of jobs and residents to an urban complex planned in north Scottsdale, with an early phase expected to break ground this spring.

One Scottsdale, a massive mixed-use project at the northeastern corner of Scottsdale Road and Loop 101, could feature a campus-like cluster of six-story buildings and nearly 3 million square feet of commercial space if plans are approved by the Scottsdale City Council in 2016.

The complex would be among the Valley’s largest developments, with more square footage than State Farm’s new Marina Heights regional headquarters in Tempe and larger than nearby Kierland Commons and Scottsdale Quarter combined.

Scottsdale-based developer DMB — the company behind Eastmark in Mesa, Verrado in Buckeye and DC Ranch in Scottsdale — filed building designs and a zoning request for One Scottsdale in early December, hoping to start construction in 2016.

Part I: First of four office buildings

The first phase of an office and retail center on the northern end of the 76-acre lot could be under development by April or May, DMB Vice President Mike Burke said. The company is joining with Ryan Cos., also a partner in Tempe’s State Farm complex, to build the first of four three-story office buildings expected to house nearly 600,000 square feet of work space.

Scottsdale-based developer DMB plans to build a new Class A office complex near the northeastern corner of Scottsdale Road and Loop 101

Sprinkled among the offices will be five buildings for shops, services and restaurants and two parking garages, according to DMB. There are a few companies looking for large, Class A office space in the Valley, and DMB hopes to land at least one of them at its One Scottsdale project, Burke said.

Class A space typically features underground or structured parking, taller floor-to-floor heights and a larger footprint, allowing companies to fit more employees on a single level, Burke said.

The new complex will stretch along the east side of Scottsdale Road between Legacy Drive and Thompson Peak Parkway.

Part II: Urban core

DMB next plans to develop a dense urban core with a mix of offices, shops, restaurants and apartments or condos south of Legacy Drive, closer to Loop 101. That phase of the project could start construction in late 2016 or 2017, Burke said.

No City Council vote is scheduled, but DMB is requesting a zoning amendment to provide for greater density on the property. Those plans are consistent with the city’s Greater Airpark Character Plan adopted in 2010, which marks the One Scottsdale site for high-density, regional-core development.

DMB wants to raise maximum building heights to 90 feet, which translates to about six stories in an office tower, Burke said. The company also wants to increase the number of apartment units allowed at One Scottsdale from 1,100 to nearly 2,500.

The housing component is an essential catalyst for the commercial elements of the project, as office and retail tenants want to be closer to a residential base, Burke said.

"Part of what’s changed in our market is everybody is looking for that walkable community," Burke said. "The big key to get development interest is to have that mixture of uses."

That could mean loft-style housing above street-level retail in One Scottsdale’s inner core, with separate apartment or condo buildings farther out, Burke said.

One Scottsdale, a mixed-use project at Scottsdale Road and Loop 101, could include a dense urban core with offices, shops, hotels and apartments.

DMB is teaming up with Macerich, which owns malls across Arizona and the U.S., to develop the urban core. While the center’s urban design will give it a similar feel to Kierland Commons or Scottsdale Quarter, the types of tenants will likely be quite different.

There are plans for at least one hotel and 400 beds, but the primary focus will be on a campus-style office development, Burke said.

"We now see it more as an employment core for the city," he said.

What’s there today

The early seeds of One Scottsdale were actually planted back in 2008, when industrial giant Henkel opened a North American headquarters for its consumer products on the southern edge of the property, overlooking Loop 101. Henkel’s consumer brands include Dial, Purex, Right Guard and Schwarzkopf.

The 348,000-square-foot headquarters includes a 900-car parking garage, 82-foot-high atrium and roof garden, according to the American Institute of Architects. Henkel shares its space with fast-growing tech company GPS Insight, which moved into the building in 2013.

The southeast corner of the Henkel headquarters building in north Scottsdale.

Texas-based developer TDI Real Estate Holdings has built roughly 750 apartments in two communities: Jefferson at One Scottsdale and Avion on Legacy, which is now owned by Simpson Property Group.

The remaining 76 acres are awaiting development. DMB says it has substantial interest from development partners and would likely move quickly if its plans for One Scottsdale receive city approval.

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