development

This article originally appeared in the Phoenix Business Journal.

How a once tiny West Valley city has turned into an industrial development magnet

Years before Buckeye was designated a city, people were flocking by the thousands to the West Valley suburb, which was once a small town largely made up of family-owned agricultural and dairy farms.

“It was ‘Drive until you can afford,’” recalled Deanna Kupcik, the president of the Buckeye Valley Chamber, whose family came to Buckeye in the 1950s.

Single-family homes continued going up and residents moved in because of the relatively low price to buy land and inexpensive housing, she said.

In the 2000s, when the population jumped from just 6,500 to 50,000, some people were buying upwards of five homes, Kupcik said. City officials contend that a variety of “high value” housing options is what drove people to Buckeye.

Eventually, Buckeye was hit hard like the rest of Arizona by the Great Recession, so construction stalled. But as the economy started to recover, so did the West Valley municipality, which recent Census data shows was the fastest-growing city in the nation from 2010 to 2020.

We are your hosts Adam Baugh and Jason Morris, here to give you the inside scoop on some of the Valley’s best developments and some wild stories on how they came to be. But first, we want to share our story so you can get to know a little bit more about who we are and how we got into this crazy world of zoning and land use development.

This article originally appeared in the Phoenix Business Journal.

Developer proposes turning Phoenix movie theater into apartments

A plan to redevelop a Harkins Theatres location in north Phoenix could spark yet another new trend — repurposing outdated retail real estate to meet changing market demand.

Developer Wolff Co. hopes to raze the North Valley 16 movie theater and redevelop the site into apartments. Jason Morris, partner at Withey Morris and zoning attorney for the redevelopment project, said the site is no longer desirable as an entertainment use, but was very attractive to different apartment developers.

“There are a lot of retail centers out there that just aren’t going to work and probably shouldn’t work anymore,” Morris said. “The ones that are surviving are doing a different type of retail, like restaurants. In Arizona, which has a higher rate of retail per capita than the rest of the country, it is likely all of this retail isn’t going to stand the test of time and these sites will transition to other uses.”

According to CBRE Group Inc., experts forecast the U.S. will see a 20% reduction in retail real estate inventory by 2025. The U.S. averages 56 square feet per capita.

Morris’ client, the Wolff Co., plans to redevelop the site, located at 34th Way and Bell Road, into a 278-unit luxury apartment complex, which Morris said is in high demand in the highly residential area.

This article originally appeared in AZRE magazine.

Available land and increased infrastructure are propelling industrial development in the Valley’s southeastern and western peripheries.

The past few years have seen unprecedented growth across Greater Phoenix. A favorable business environment, mild winters and an overall high quality of life have attracted corporations from across the nation and globe to the Grand Canyon State. As a result, farmland and empty plots throughout the Valley have rapidly become the sites of large manufacturing and distribution facilities.

“Industrial has been the darling of the recession and the COVID response. It’s the one use that excelled above the rest and had the most energy money and interest behind it,” says Adam Baugh, partner at Withey Morris.

Both the East and West Valley have received the lion’s share of industrial investment. According to Baugh, there’s been nearly 20 million square feet of ground broken so far in 2021. The trifecta of high demand, investor interest and available land have led to atypical behaviors in the market.

“You typically wouldn’t build until you got a user, but demand is so hot that people are willing to build on speculation. Traditionally, developers wouldn’t spend that amount of money because of the risk,” Baugh notes.

For months, residents of a historic Phoenix neighborhood have been fighting an out-of-state developer over an apartment project. On Wednesday, the City Council voted on the proposal along the Grand Canal in the central city.

Phoenix calls it the Grand Canalscape, a 12-mile system for people to safely walk, run and bike. It’s a source of pride for city leaders and neighbors like Ken Waters who called the proposed 218-unit apartment complex the anti-prototype for the area.

“You’re setting the model, a cookie cutter precedent for the rest of Canalscape,” he said. “In its present form, it’s a traffic bomb. Twelve hundred cars per day on the inside of the neighborhood, no arterial streets, they’re all trapped.”

This feature originally appeared in the Phoenix Business Journal.

When Adam Baugh, zoning attorney with Withey Morris PLC, took on a zoning case in Queen Creek for a build-to-rent community, he knew he had his work cut out for him.

Queen Creek homeowners had vehemently rejected an apartment community for that same 26-acre parcel at the northeast corner of Riggs and Ellsworth roads several years ago .

A land use market study commissioned by Queen Creek showed that the town needs to diversify its housing stock so that not all homes sit on an acre, Baugh said. Read more...

This article originally appeared in the Phoenix Business Journal.

A New York-based real estate private equity fund manager and developer is investing $100 million in the Valley’s rapidly growing build-to-rent market, in which detached single-family homes are constructed in a rental community with rich amenities.

GTIS Partners LP is developing a build-to-rent community in Queen Creek, paying $7.9 million for a 26-acre parcel on April 20. Phoenix-based Sonoma Communities is co-developing that project at the northeast corner of Riggs and Ellsworth roads. Read more…

This article originally appeared in the Phoenix Business Journal.

A 240-acre site on the west side of the Loop 202 South Mountain freeway extension is being primed for a large-scale industrial development, which the development team said will further the city of Phoenix’s goals to have a technology corridor along the region’s newest freeway.

“The introduction of the 202 has really changed the area,” said Adam Baugh, partner at Withey Morris and zoning attorney for the project, called the Dobbins Industrial and Tech Park. “This is bringing employment and nonresidential development to that area.”

Baugh’s client, Indiana-based Scannell Properties LLC, is seeking to have a mix of uses on the property, which is located west of Loop 202 and is bisected by Dobbins Road. Uses planned for the area include light industrial, office, technology, manufacturing, and other employment uses, according to city of Phoenix documents.

The Murphy is a planned commercial development in Gilbert designed with the nearby railroad tracks in mind. It’s name pays homage to the man who built the tracks through town. The Murphy consists of a retail complex and focal point of the neighborhood and a gathering place for the community to shop and dine. It is comprised of five retailers, a coffee shop and a restaurant situated around a lush courtyard and bound by the railroad tracks creating a unique and inviting setting.

According to historians, the oldest cartographic relic is the Babylonian World Map, a 600 B.C. clay design depicting landforms and water features of the ancient world. Over 2,600 years later, Google Maps provides precise geographical context, location and detail using satellite imagery. Examine the Withey Morris Project Map using Google’s technology, and the full scale, scope and breadth of the firm’s projects immediately become apparent. “It is astonishing because unless I look at the map and see the magnitude of it, it is hard to fathom how many cases we have been involved in,” says Jason Morris, attorney and founding partner, Withey Morris. “I also feel a tremendous sense of pride.”

Thousands of colorful pins, each representing a distinct land-use project, blanket the Valley landscape and reveal why the firm is recognized as Arizona’s premier entitlement, zoning and real estate law practice. “It is a function of having the perfect combination of an amazing team coupled with outstanding clients. Our clients have been loyal to us for two decades,” says Morris. “I have zoned hospitals, rehabilitation centers and care homes. We have worked on stadiums and arenas and a variety of nonprofits. But I do not think it is any one case, so much as the totality of being able to drive down the street and appreciate Withey Morris’ huge impact on the landscape of the city.” Read more...

This article originally appeared in the September/October issue of AZRE magazine.

The Loop 303 may soon be renamed Merit Partners Parkway if the developer keeps doing what it has been doing along the West Valley freeway. Merit Partners is one of the developers developing the PV 303, a 1600 acre business park that spans both sides of the 303 from Thomas Road north to Camelback Road in Goodyear. That development, at full buildout, could include more than 20 million square feet of office, industrial and retail space. Read more…

This article originally appeared in the Phoenix Business Journal.

As opportunities for large-scale developments within the city of Scottsdale have become harder to come by, developers and builders have turned their focus east, to the Salt River Pima-Maricopa Indian Community, which has quickly become a destination for a slew of commercial projects.

In the past five years, nearly 1.7 million square feet of commercial space has come online on the reservation, according Newmark Knight Frank research. That slice of the Valley is home to Salt River Fields, the spring training home of the Arizona Diamondbacks, as well as the Great Wolf Lodge, Medieval Times restaurant and Arizona’s only White Castle burger restaurant.

Development in the corridor has nearly doubled in the past five years, and the area now encompasses about 3.5 million square feet of developed space. The reservation is directly east of Scottsdale, and is bounded by Pima Road on its western edge. Read more…

A new 54-unit multifamily residential proposal received a split 4-3 vote by the City Council to provide a small pocket of housing in Old Town Scottsdale.

The tight Council vote was rendered on Aug. 24, after the project receiving unanimous recommendations from the Development Review Board and Planning Commission this summer.

Called Canalside, owners Stockdale Capital Partners, represented by Jason Morris of Withey Morris PLC, sought a zoning district map amendment for a mixed-use development consisting of 54 units of multifamily residential, and approximately 900-square-feet of non-residential open space. Read more…

A new apartment project is planned for a vacant plot of land in downtown Scottsdale.

The project, named Canalside for its proximity to the Arizona Canal, is scheduled to go before to the City Council for approval on August 24.

According to plans filed with the city, Canalside will include 54 apartment units in a 50-foot building and around 900 square feet of retail space on the 1.17-acre site, which is wedged between Indian School and the Canal just east of 68th Street. Read more…

PICACHO — Nestled in the shadow of Picacho Peak, an area recreational vehicle and manufactured home park is poised to nearly double in size with the addition of new upscale residences, larger sites and more amenities. Read more….

This article originally appeared in the Phoenix Business Journal.

Construction work has begun at Papago Plaza, a redevelopment project near McDowell and Scottsdale roads in south Scottsdale.

Final grading is being done onsite for installation of electrical and water lines. Pivot Development, which is developing the hotel, restaurant and retail space at Papago Plaza, began razing the former shopping center in late 2019. Read more…

This article originally appeared in the Phoenix Business Journal

The Maricopa County Board of Supervisors voted Wednesday to approve a controversial development on the former Falcon Golf Club.

The project will be a cross-dock truck facility for FedEx, according to public documents. Plans submitted to the county call for two phases of development. The development’s first phase is planned to be on the property’s north portion, comprising 79 acres of land at Camelback Road and 152nd Avenue.

Plans include a 245,730-square-foot footprint, including the cross-dock facility and support buildings, as well as 683 employee parking spaces and about 1,500 parking spaces for trucks, vans and trailers. Read more...

MK Company Inc., recently submitted plans to the City of Phoenix for a new multifamily development, known as Metro Lofts, at the NEC of Dunlap and 29th Avenues.

The site is located on approximately 7.32 acres at 9201 N. 29th Avenue, and is immediately adjacent to the Arizona Canal, “which is envisioned as a regional amenity and transportation route for bicyclists and pedestrians,” according to the project documents. It is also near a future light rail station, Metrocenter Mall and a water treatment facility. Read more…

This article originally appeared in AZRE magazine.

Jason Morris established himself and the law firm that he co-founded as one of the top land use, real estate and zoning minds in the Valley. Withey Morris PLC may be one of the more highly-respected firms that developers turn to when they need help getting approval for a project, but for Jason Morris, how he goes about his job is similar to what he did when he was putting himself through college, selling shirts and ties at Nordstrom’s. Read more….

Boise, Idaho-based Hawkins Cos. is in the midst of rezoning a downtown Phoenix parcel that will pay tribute to Lincoln Ragsdale, a prominent Phoenix civil rights leader and previous owner of the site. Plans call for building a five-story multifamily property with ground floor retail at the northwest corner of Washington and 12th streets that will be named The Ragsdale.

Hawkins is in escrow to purchase the 2.9-acre parcel as the company works its way through the rezoning process, said Jason Morris, a partner for Withey Morris PLC and zoning attorney for the project. He said he expects escrow to close contingent upon entitlements. Read more…

The city of Phoenix and several other governmental agencies around the country have extended development deadlines to give developers and businesses increased flexibility during the pandemic. Here’s how the new guidelines break down, from construction permits and plan reviews to preliminary plats. Read more…

If you grew up in Phoenix, you’re likely familiar with the cultural activity of cruising Central Avenue. For decades before the advent of social media, teen entertainment in the Valley often turned to motoring along Central. It was a way to meet other teenagers and find out where the parties were. It was a place to see and be seen and show off your wheels, even if it required spending the night driving up and down the same road. The iconic Park Central Mall, Phoenix’s first shopping mall, was a focal point on the strip given its large parking lot, which offered ample opportunity for hanging out. Read more….

Leaders in one West Valley community seeded ground for an innovative residential development, which some hope — and others fear — will bring much-needed affordable housing.

But the project’s potential impact proved a point of contention, with some residents claiming the project will attract poor people and crime and drive down their property properties.

Developers of the complex, known as Vita at Greer Ranch, seek to build 149 standalone and duplex rental units on 10 acres at the northeast corner of Cactus and Reems roads in Surprise. Read more…

Pivot Development ceremonially broke ground Thursday morning at Papago Plaza in south Scottsdale for a site that eventually will be developed into a mixed-use project worth more than $100 million. Read more…

Miami-based Lennar Corp. (NYSE: LEN) is in escrow to buy one of the last remaining large parcels of land in Gilbert.

The deal to acquire 90 acres is expected to close within the next couple of weeks, said Ed Grant, executive vice president of Scottsdale Investment Management, who is selling the land to the nation’s largest homebuilder. Read more…

A planned commercial development in Gilbert is designed with nearby railroad tracks in mind and was named to pay homage to the man who built the tracks through town.

“This is a really small, weird-shaped property, and these properties get looked over time and time again,” said Adam Baugh, an attorney with Withey Morris who is representing Moulin Group, the parcel’s developer. “My client wanted to something creative and flip the script on what the retail place looks like.” Read more...

Two well-known Scottsdale buildings will face the wrecking ball this fall.

Papago Plaza is the city’s oldest shopping center. The pink Pueblo-inspired plaza near McDowell and Scottsdale roads is expected to soon come down. A demolition permit from the city is pending staff approval, according to the city. Read more…

Six high-rise towers may soon replace a long-vacant plot of land at the northeast corner of Indian School Road and Central Avenue in Phoenix — a project that supporters call a first of its kind in Arizona. Read more…

A proposed 150-foot downtown office building surpassed a major hurdle on July 10 when it received thumbs up from the Scottsdale Planning Commission. Read more…

Big changes are coming to a key intersection in Phoenix. On Wednesday, the City Council approved a zoning change for the northeast corner of Central Avenue and Indian School Road.

A developer plans to build six towers on the privately owned land near Steele Indian School Park, which includes three historic Phoenix Indian School buildings. The project is in Councilwoman Laura Pastor’s district. Read more…

As it takes over the campus formerly of the Thunderbird School of Global Management, Arizona Christian University plans to transform the campus from a commuter school to an on-campus living environment. New housing developments are also planned for the 85 acres of vacant land neighboring the campus. Read more…

Looking to fill a void for residents in the far reaches of the North Black Canyon Corridor wanting restaurant and entertainment options in the area, Scott McGill of MCG Commercial in Phoenix is working to entitle and purchase land for a mixed-use project. Read more…

Infill development is currently experiencing a renaissance in the Valley and in metropolitan areas across the U.S. There is no single cause for this. Instead, it is a confluence of economic factors, lifestyle trends, and significant changes in transportation technology and infrastructure. Since the Great Recession in 2008, the trend toward suburban sprawl and new development on the fringes of the Valley has dramatically reversed. Read more….

A planned 2.3 million-square-foot mixed-use project could serve as the next entryway to Steele Indian School Park near Central Avenue, developers hope. Read more…

Sometimes it takes a different strategy to convince homeowners that your project will be a good fit in their neighborhood.

On March 26, D.R. Horton Inc. paid $80 million for 122 acres from the Marley family, according to Vizzda real estate database. Plans call for building 706 homes ranging between 1,800 and 3,500 square feet on the property. Read more…

After receiving approval from the Scottsdale City Council to raze and redevelop the vacant Papago Plaza, to be known as Papago Marketplace, developers are headed back to the design review board after adjusting plans to reflect feedback from neighbors.

“We were able to establish a really positive dialogue with the neighborhood leadership and incorporate their direction and desires,” said Jason Morris, an attorney with Withey Morris working on the case. Read more…

A relic of the Cold-war era, the National Guard Armory building was constructed in the early ‘60’s just west of downtown Phoenix. The roughly 38,000 sqft building housed everything from a drill hall and rifle range to a library and “chow hall,” while the roughly 5-acre site parked military vehicles and equipment. When the Department of Emergency and Military Affairs decided to sell the property, Withey Morris assisted the buyer (Northwood Properties) in obtained appropriate and flexible land use entitlements for the properties rehabilitation into creative spaces for artists and skilled craftworkers. Future plans include the possible development of live/work artist units on the remainder of the site. The project includes a Historic Preservation Overlay on the original Armory building, further helping to preserve this piece of Arizona history.

Lincoln Property Co. has plans for a 1.2 million-square-foot build-to-suit industrial project in west Glendale. Read more…

A development lauded to transform the defunct 1960s Papago Plaza in south Scottsdale has unanimously passed Scottsdale City Council. Read more…

A hotel, grocery store and residential development are all in the mix to replace the vacant Papago Plaza on McDowell and Scottsdale roads.

Preliminary plans include a 116-room hotel and 247-unit apartment complex. Restaurant and retail pads will front Scottsdale Road. The existing Wells Fargo bank on the corner of Scottsdale and McDowell is not part of the development.

“This area has seen so much interest, with the redevelopment directly to the south and the development along the McDowell Road corridor,” said Jason Morris, a zoning attorney working on the project who is a partner with Phoenix law firm Withey Morris PLC. “There are so many moving parts to create a true mixed-use development and making sure the retail works with the residential and the hotel.”

(This article originally appeared in the Phoenix Business Journal.) Read more…

Political and economic uncertainty has defined the past year.

With Arizona’s economy showing signs of growth amid low inflation, it seems like a crane casts a shadow over every intersection in downtown Phoenix.

But we are still dealing with an evolving and distressed retail segment and most pencil-pushers are still struggling to understand the implications of President Donald Trump’s changes to the tax laws.

But that’s not the only legal issue we need to be watching. AZRE spoke with some of the great legal minds in commercial real estate to find out what trends and issues they say we should look at before making that next deal. Read more…

An army of red shirts, slogan pin buttons, protest signs and opposition websites. These efforts describe the recent increase in opposition to infill redevelopment, rezoning and community planning.

Neighborhood outreach and citizen involvement is a bedrock principle in the development process. By ordinance, local jurisdictions require developers to notify and meet with neighbors for a variety of property entitlements such as general plan amendments, rezoning, site plan approval, variances, use permits and more. Cities and counties generally require some form of community outreach, and smart developers often engage neighborhood involvement early in the process. However, the increase in project opposition and the new methods employed by opponents require serious pause and study. Developers and zoning attorneys must learn to strike the right balance of listening and responding to neighborhood concerns while positioning their project for development success. Read more…