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One of the Area’s Largest Multifamily Developments Planned for N. Phoenix

Fueled by the explosion in employment opportunities and related development in north Phoenix, developer Toll Brothers Apartment Living has proposed what would be one of the largest multifamily developments by unit count in the Greater Phoenix area.

Situated on approximately 18.68 gross acres at the SEC of 7^th Street and Beardsley Road, North 7^th Residences is planned for 817 units, with up to 825 units allowed, spread across five buildings. Four of the buildings would be garden-style, with the remaining structure constructed as a wrap-style building with an interior parking garage, according to the Planned Unit Development project narrative submitted to the City of Phoenix by project representative law firm Snell & Wilmer.

According to the conceptual site plan, the wrap-style building—Building A—would be five stories in height with 407 units and a square footage of 611.5KSF. The remaining four garden-style buildings break down as follows:

Building B: three stories, 62 units, 97.5KSF;
Building C: three and four stories, 177 units, 220.1KSF;
Building D: three stories, 60 units, 92.5KSF, and
Building E: four stories, 111 units, 151.4KSF.

There is also a separate 4.5KSF amenity structure planned, bringing the total proposed building area to nearly 1.18MSF.

The expected unit count calls for 19 studio apartments, 455 one-bedroom, 309 two-bedroom and 34 three-bedroom apartments. As a self-described “modern, upscale, and amenity-rich living experience,” several site and lifestyle enhancement features are planned, “including a total of 25,050 square feet of air-conditioned indoor amenity space distributed throughout the site, as well as up to 90,100 square feet of useable outdoor open space containing pools, outdoor seating and lounging nodes, cooking and dining areas, fire pits, activity and fitness lawns, sports courts, and entertainment media walls distributed throughout the site in locations central to community residents,” according to the narrative.

The Site and Development Standards

The location is currently partially occupied by a two-story 97.4KSF office building developed in 2003 and previously used as a call center. The narrative says, “By reimagining the site for residential purposes, there will be improvements to the surrounding community by removal of a high traffic generating use (office/call-center), completion of the vacant site (which, as vacant land, tends to attract less than desirable activities), improvement of the abutting streetscape (modernizing the pedestrian experience along 7th Street with detached sidewalks and additional shading) and providing a new housing choice option for those that want to live/work/play in this part of the City.”

The development standards laid out in the PUD narrative are for a C-2 General Commercial Zoning District, which permits a maximum residential density of 825 units (44.2 units/gross acre) with minimum setbacks of 100 feet on the east perimeter, 50 feet on the south and 20 feet on both the north and west perimeters.

The site is adjacent to existing single- and multifamily residences. Consequently, the narrative makes a point of addressing how the development will be sensitive to existing uses, saying, “To achieve a balanced transition between neighboring uses, the Project utilizes a stepped down design, gradually decreasing the buildings’ height from its tallest elevation of 65’ and five (5) stories along the 7th Street and Beardsley Road frontages to the shortest elevation of 38’ and three (3) stories where the property is more proximate to existing homes.

“This stepped-down design results in a building massing that is contextually appropriate while also providing a transition in height ensuring the Project’s compatibility with its surrounding neighbors. Significant building setbacks (up to three (3) times greater than those required by the current zoning adjacent to the east property line and over sixteen times greater than those allowed by the current zoning adjacent to the south property line) further provide a buffer and separation between the Project and adjacent existing residences.”

Development is planned in two possible phases, with Phase I consisting of Building A with the parking structure, 407 units, swimming pool and core amenities spaces.

One of Metro Phoenix’s Largest Communities

Given the extent of multifamily development in metro Phoenix in recent years and the number of outlets and resources covering the sector, it is surprisingly difficult to find definitive information on community sizes around the area.

The DATABEX project database was started in 2016 and, for obvious reasons, does not include communities developed before its launch. Yardi Matrix is a standard resource for apartment development research, but it includes some surprising omissions and inconsistencies in its reports.

A Yardi Matrix market composition report shows 47 communities with more than 500 units completed between 1980 and 2023 in greater Phoenix, totaling 30,388 units, or 10.1% of the total market.

A March 2022 article in GlobeSt lists the largest market-rate community as the former Del Mar Terrace apartments on West Indian School Road. The 1,012-unit development was purchased by CIM Group and Tides Equities for $255M and rebranded as Tides on 71^st.

When first proposed, Camden North End at 6800 E. Mayo Blvd. in Phoenix would have been larger. The development was originally planned for three phases and a total of 1,069 units. Phases I and II were built, with Phase II delivering in 2021 for a total of 784 units for the entire project. The Phase III location was sold off to another developer.

It is believed Optima McDowell Mountain Village in north Scottsdale is the largest community under development in the Phoenix metro area. Currently in the pre-construction phase, the project is planned for 1,330 apartment and condo units to be built in three phases over a 10-year development cycle.

At 817 planned units, North 7^th residents will easily land among the top planned and, if built as proposed, the largest completed development projects in the metro area.

Toll Brothers Apartment Living is the developer. The design firm is CCBG Architects, with landscape planning by Collective V Design Studio, Inc. Hubbard Engineering is the civil engineer, and Lokahi is the traffic engineer. The zoning attorney/project representative is Snell & Wilmer. As of press time on Aug. 28, no hearings or meeting dates have been set.

CapMatrix Secures $37.1M Senior Loan for Optima McDowell Mountain Multifamily Property in Scottsdale

SCOTTSDALE, ARIZ. — Phoenix-based CapMatrix Ltd., acting as exclusive capital markets advisors to Optima, secured a $37.1 million senior loan to provide financing for ongoing land and horizontal infrastructure improvements at Optima McDowell Mountain in Scottsdale. At completion, Optima McDowell Mountain will feature six residential towers offering more than 1,330 units of for-sale condominiums and rental units. The project is located at the southeast corner of Scottsdale Road and Loop 101 freeway. Western Alliance Bank provided the financing, which represented the first deal between Optima and Western Alliance.

ASM bakes job pie on ‘development row’

Did you hear the one about the corporate giant bringing hundreds of jobs to North Scottsdale?

This isn’t about Axon – which is already in the 101/Hayden Road neighborhood. The Taser maker is fighting to move ahead with a controversial plan to build a new office building surrounded by upwards of 1,900 apartments.

While the police equipment juggernaut says it will quadruple its work force if allowed to move ahead with a scheme the city and others are challenging, another tech powerhouse has encountered no resistance as it quietly charges ahead on building a new corporate home.

No apartments here at ASM, less than a mile north of Axon.

And why would ASM’s 1,300 engineers and other workers want to live on the Dutch company’s new American headquarters and “campus?”

ASM’s next-door neighbor is Optima McDowell Mountain Village, where 1,300 apartments are being built.

Though impressive, the number of positions ASM is creating is just a cut of a massive job pie being baked here on “development row.”

On a sprawling lot south of ASM, the smaller Banner Health Center Plus that starts construction soon and a planned Banner Scottsdale Medical Center could employ upwards of 2,500. Across Hayden Road from Banner, Rick Smith promises to balloon his Axon staff of 850 to 5,500 if his live-work-play campus is not blocked.

As Optima and Axon both plan shops and restaurants, the number of new employees along development row could approach 10,000.

While a few of these big developments are pending, ASM is at full-speed-ahead.

The Netherlands company designs and manufactures “equipment and process solutions to produce semiconductor devices for wafer processing.” Wafers serve as bases for semiconductor chips.

On its 20 acres, ASM plans “a combination of capital expenditures related to infrastructure and lab equipment,” with research and engineering jobs coming – as hinted by plans for a five-story garage, in addition to two offices and labs.

According to a news release, “ASM, a semiconductor supplier with local customers like Intel and TSMC, is investing $300 million in its new Scottsdale facility and plans to add 500 new high-paying jobs as part of the expansion.”

A development agreement requires ASM to provide 600 acre feet of water – about as much as 2,000 homes would use in a year – to the city.

(City of Scottsdale)

With 800 employees already at its current Phoenix headquarters, the additional staff would bump ASM’s Scottsdale payroll to 1,300. ASM showed it was serious by entering into a joint development agreement with the city.

A crucial difference between this and Axon’s plan: As ASM is not trying to put up living spaces, no rezoning was required for it to build.

The city issued building permits May 7. While writing a check for around $360,000 in permit fees, ASM told the city the value of its commercial shells for an office, lab and garage is $116 million.

Contractor Oakland Construction Company got right to it, starting foundational work the second week of May.

Compared to many developers who struggle for financing, this company can afford to pay its way. ASM’s revenue for 2024 was $3.2 billion, jumping 11.31% from 2023

‘Bring your water’

Across the 101 from Grayhawk and the booming Scottsdale One development, ASM’s new North American headquarters will cover 250,000 square feet – double the size of its Phoenix facility.

ASM has research and development centers in Arizona, the Netherlands, Belgium, Finland, Japan, South Korea and Italy and manufacturing sites in Singapore, South Korea, Italy and the Netherlands.

On Sept. 10, Scottsdale City Council unanimously approved $7 million in water and sewer line reimbursements to a trio of developers in that “netherland” south of the Loop 101, between Scottsdale and Hayden roads: global corporation ASM, healthcare giant Banner Health and “retail development specialist” De Rito.

One week later, Council unanimously approved a separate development agreement with ASM.

The new ASM development deal calls for the city to reimburse the tech company for up to $6.3 million “for a portion of public infrastructure costs.”

Then-Councilman Tom Durham, before making the motion to approve the development deal, praised the Dutch-based company’s plan to bring the water it will use in Scottsdale. Former Scottsdale Water Executive Brian Biesemeyer explained it will be provided by SRP.

In early 2024, even as Durham and other city officials were rejoicing over ASM’s relocation, Biesemeyer expressed concerns over the Dutch company’s plans to recycle 80% of its wastewater.

In an internal email, Biesemeyer warned it was crucial for ASM to understand “they cannot dump to our sewer if their recycle plant is down.”

Near the beginning of 2024, Paul Crothers, ASM’s vice president of operations, projected the company’s North Scottsdale water use: Just under 90,000 gallons per day during Phase 1 of development, shooting up to about 234,000 gallons per day in Phase 2.

That would mean from 30 to 80 million gallons per year.

$1B Optima McDowell Mountain Village will break ground in 2023

Award-winning real estate development firm, Optima, announced today plans to move ahead with its next Arizona residential development, Optima McDowell Mountain Village, in North Scottsdale after receiving the city’s approval for the $1 billion sustainable mixed-use community.

Breaking ground spring/summer 2023, the 22-acre site, located on the southeast corner of Scottsdale Road and the Loop 101 Freeway, Optima McDowell Mountain Village is comprised of six concrete-framed, eight-story buildings that will include 1,330 luxury residences and 36,000 square feet of commercial and retail space. The development will be a mix of condominiums and apartments.

Optima McDowell Mountain Village will create an environmentally friendly residential neighborhood in the burgeoning area of North Scottsdale with a state-of-the-art, all-inclusive, health-based, amenity-rich community. Most notably from a sustainability perspective, it will be the largest private rainwater harvesting site in the U.S. The residences within the community are expected to use half as much water as the average Scottsdale multi-family residence and a quarter as much water as the average Scottsdale single-family home. Optima is also providing the City of Scottsdale with 2,750 acre-feet of water that will be deposited into the Scottsdale water system.

“We are especially excited about the location of Optima McDowell Mountain Village being in north Scottsdale so close to the spectacular McDowell Mountains and the proximity to the Loop 101 Freeway as well as current and future major employers” said David Hovey Jr., AIA, Optima’s President and COO. “Architecturally this project will be unique with over 75% open space with six buildings surrounding a central sheltered courtyard comprised of a combination of xeriscape, drip irrigation and artificial turf. This will be our most sustainable project to-date and will include the largest private rainwater harvesting system in the United States, as well as the next evolution of our vertical landscaping system and active roof decks.”

The community will be the first project in Arizona to be built under both the new International Energy Conservation Code (IECC) and International Green Construction Code (IgCC). A few highlights of the sustainable features include 75% open space that will be a combination of artificial turf, xeriscape landscaping and native plants; high-performance mechanical systems, solar panels; 100% underground parking to mitigate the heat-island effect, and Optima’s signature vertical landscape system. The vertical landscaping system, with its self-containing irrigation and drainage, enables a palette of vibrantly colored plants at the edge of each floor to grow both up and over the edge of the building. The integration of enhancements to the vertical landscape and architectural shading systems protects homes from the sun and creates additional privacy, while filtering the air and lowering ambient temperature.

The kind of sophisticated architectural detail that characterizes Optima’s Arizona projects will be reprised at Optima McDowell Mountain Village, and represents the next evolution of Optima’s architecture and construction. Designed by internationally recognized architects David C. Hovey, FAIA and David Hovey, Jr. AIA, the six buildings, with undulating landscaped facades, echo the shapes of the McDowell Mountains. The eight-story buildings are designed to have complex elevations that step in and out creating depth, shadow and texture that enlivens each face of every building. Adding to the dynamic effect will be the outdoor terraces provided for every residence that will be edged with trailing native plants cascading down the building. The buildings have been designed to emulate the colors of the desert with bronze glass, railings and planters. Glass-enclosed, 15-foot-high ground-floor levels will feel utterly transparent.

Each of the six buildings will contain its own resort-style amenity offering which will include a rooftop deck with a 50-meter Olympic-length swimming pool; a sauna, spa, and cold plunge; a running track that will follow the perimeter of the roof; outdoor fireplaces; lounge seating; outdoor kitchens with barbecues and dining spaces and sheltering arbors covered with vines. Every rooftop will offer spectacular views of the McDowell Mountains to the east, vibrant sunsets to the west, Pinnacle Peak to the north and Camelback Mountain to the south.

The ground-floor level of each building will be similarly outfitted with spacious, well-appointed lobbies; a fitness center and yoga studio that look out over the lushly landscaped courtyard; a sauna and steam room; a residents’ club with game room and theater; an indoor basketball and pickleball court; an outdoor pickleball arena; a golf simulator; an outdoor putting/chipping area; indoor and outdoor kids’ play spaces; a massage room; a dog park and pet spa; and a business center and conference room.

With views of the majestic McDowell Mountain range as the backdrop, the location is just a five-minute drive to the shopping, dining and entertainment destinations of Scottsdale Quarter and Kierland Commons. Being adjacent to the Loop 101 Freeway and just two minutes from the SR-51 Highway and ten minutes away from the I-17 Highway will allow residents to be just 15-25 minutes from Downtown Phoenix, Glendale, Old Town Scottsdale, Tempe, Mesa, and Phoenix Sky Harbor Airport. Also, the development will feature a bicycle and pedestrian path around the perimeter of the development that will connect to the bicycle and multi-use paths of the City of Scottsdale Bicycle Master Plan.

Registration is now open for both the condominiums and apartments to be among the first to learn about upcoming sales and leasing opportunities. For more, visit OptimaMcDowellMountainVillage.com.

Optima develops largest private rainwater harvesting system in U.S.

Real estate development firm Optima has verified it’s moving ahead on plans to build a $1 billion sustainable mixed-use residential area with the nation’s largest private rainwater harvesting system. The project is located at the southeast corner of Scottsdale Road and the Loop 101 Freeway and will be called Optima McDowell Mountain Village. The 1,333 residences are expected to use half as much water as the average Scottsdale multi-family residence, and one-quarter as much water as the average single-family home. The project should provide the City of Scottsdale with 2,759 acre-feet of water that will be deposited into the Scottsdale water system. For more information, visit OptimaMcDowellMountainVillage.com.

City pumping up N. Scottsdale sewer system

If sewage is fun – you must be in Scottsdale.

According to a recent newsletter from Councilwoman Solange Whitehead, “Elected leaders from around the state and the governor’s office attended my ‘Building Arizona’s Energy and Water Future’ session and Scottsdale Water Executive Director Brian Biesemeyer served on the water panel.

“But the Popsicles were the real hit at the conference. Fruity, delicious and made from Scottsdale recycled waste water. Everyone was talking about the Popsicles!”

Scottsdale Water spokeswoman Jessica Lema confirmed Biesemeyer moderated a water panel hosted by the Arizona League of Cities and Towns Aug. 30, adding:

“Popsicles made with recycled water from Scottsdale’s Advanced Water Treatment Facility were served after the discussion.”

The panel’s theme was “Water: What’s Happening – And What’s Next.”

In North Scottsdale, what’s happening is construction – of sewer lines.

And what’s next is Optima McDowell Mountain Village, which plans 10 story buildings that will house 1,330 luxury apartment and condo units on North Scottsdale Road.

On May 4, the Development Review Board unanimously approved the Optima development on desert land from Mayo Boulevard to the Loop 101.

City Council narrowly approved the development in November.

The mammoth Optima project, projected to cost $1 billion to build, was opposed by council members Kathy Littlefield, Betty Janik and Solange Whitehead.

But in the “no hard feelings” department, Littlefield, Janik and Whitehead joined the other four council members in approving an infrastructure reimbursement agreement with Optima McDowell Mountain Village.

Biesemeyer gave the presentation on the sewer build-out across undeveloped land between Scottsdale Road and the TPC Golf Course.

He stressed Optima will pay for the construction – with “reimbursement from the city for portions that are not required for Optima.”

Sewer development fee funds will pay for part of the project, with future developers to be charged “payback” for the sewer lines they will use.

The new sewer pipes will allow for even more development south of the 101 between Pima Road and Scottsdale Road.

Optima is developing 20 acres at 18777 N. Scottsdale Road, just off the freeway.

The rezoning last fall included a development agreement on sewer infrastructure.

After poring over results of a commissioned study, the city “concluded that the sewer infrastructure capacity needed to serve all of the existing and future development in the area would need to be significantly increased beyond what was planned,” according to the agenda background on the Optima agreement.

Instead of having the developer put in its minimum sewer pipe requirements, the city asked Optima to construct “larger diameter sewer mains which are sized to handle future projected flows for development in the area.”

The Progress asked Biesemeyer how much the whole new system will cost.

“An estimate of construction cost will be developed as design nears completion,” he replied. “Optima will be paying up to 26% of design and construction costs.”

Biesemeyer was asked if the sewer lines will extend as far as the proposed Banner hospital and Axon campus projects on the west and east sides of Hayden Road south of the Loop 101.

“The sewer would serve the proposed Banner site but local sewer line would need to be constructed by the developer,” he said.

“Axon would also need to construct local sewers but is able to connect to an existing sewer on Hayden Road.”

According to Biesemeyer, construction on the Optima-and-others sewer line “will be completed in phases to minimize traffic and community disruptions.”

He expects construction on the North Scottsdale sewer project to begin in the spring and finish a year-and-a-half later.

Inside Arizona’s New $1 Billion Sustainable Luxury Community

As Optima McDowell Mountain takes shape in North Scottsdale, award-winning real estate firm Optima is setting a new benchmark for sustainable luxury with its $1 billion mixed-use community.

The development spans 22 acres on the southeast corner of Scottsdale Road and the Loop 101 Freeway and features residences, cutting-edge green building techniques, expansive open space, and community-driven amenities.

Some of its most notable environmentally friendly initiatives include:

The largest private rainwater harvesting system in the U.S.: A state-of-the-art system designed to capture and store approximately 210,000 gallons of rainwater in an underground concrete vault, repurposing it for irrigation and minimizing overall water use.
75% open space: There will be 14 acres of open space, with over 70% available to the public and 30% reserved for residents. The landscape will include a combination of native xeriscaping, shaded seating areas, putting greens, and a network of pedestrian and bicycle pathways.
Optima’s signature vertical landscaping system: This self-sustaining system allows lush, drought-resistant plants to cascade down the facades of the buildings, providing natural insulation, filtering air pollutants, and reducing the urban heat island effect.
Advanced energy-efficient building systems: The buildings will incorporate solar panels on the roof, high-performance VRF heating and cooling systems, induction cooktops in the residences, and EV charging in the parking garage.
100% underground parking: By moving all parking below ground, the development mitigates heat retention at the surface level.
Green codes: The community will be the first project in Scottsdale to be built under both the recently adopted International Energy Conservation Code (IECC) and International Green Construction Code (IgCC).

Designed by internationally acclaimed, award-winning architects David Hovey Sr., FAIA, and David Hovey Jr., AIA, Optima McDowell Mountain positions itself as a national model for water conservation and green building.

Optima McDowell Mountain: $1B Scottsdale community celebrates strong pre-sales

Luxury real estate developer Optima has launched sales for the first condominium tower at its $1 billion Optima McDowell Mountain community in North Scottsdale, marking the company’s return to Arizona’s for-sale residential market for the first time in four years.

Located on a 22-acre site at Scottsdale Road and Loop 101, the community has already generated nearly $27 million in early reservations, underscoring strong demand for the amenity-rich and architecturally distinctive homes.

The debut tower, dubbed 7230, will include 196 luxury condominiums ranging in size from 728 to 2,204 square feet. Floorplans will include one-, two- and three-bedroom options with estimated starting prices in the $600,000s. Features will include floor-to-ceiling glass, landscaped private terraces, smart-home integration and designer kitchens. Buyers will have the opportunity to personalize finishes and even combine units into larger custom residences—a feature that has driven more than 60% of early reservations so far.

“This is a significant milestone for Optima,” said David Hovey Jr., AIA, president of Optima. “We’re bringing everything we’ve learned over the past four decades into this new community. Optima McDowell Mountain reflects our ongoing commitment to thoughtful design and quality living.”

The full development will consist of six eight-story towers that include both for-sale condominiums and apartments, as well as 36,000 square feet of retail and dining space. It is designed with a strong emphasis on sustainability and open space, with 16 acres—approximately 75% of the site—dedicated to landscaped areas, walking paths, biking trails and a 10-acre central park.

Each building in the community will be anchored by about 1.5 acres of rooftop and ground-level amenities. The 7230 tower will feature a Sky Deck with panoramic views of the McDowell Mountains, a 50-meter heated lap pool, rooftop running track, spa, saunas, firepits, and indoor-outdoor entertainment spaces. Additional amenities will include a state-of-the-art fitness center, pickleball and bocce courts, a golf simulator, movie theater, coworking spaces, pet spa, and children’s play areas.

The development also incorporates an ambitious approach to environmental stewardship. Optima McDowell Mountain will house the nation’s largest private rainwater harvesting system, with a capacity to store 210,000 gallons for irrigation use. It will also be the first Scottsdale project built under the new International Energy Conservation Code and Green Construction Code. Other sustainability features include solar panels, self-irrigating vertical gardens, 100% underground parking to minimize surface heat, and EV charging stations.

The first apartment tower is expected to open in fall 2025, followed by the condominium tower in summer 2027. The Optima McDowell Mountain Sales Gallery is now open by appointment.