A pair of 10-story towers planned near the Arizona Canal in downtown Scottsdale would bring 146 luxury apartments to one of metro Phoenix's highest-priced hubs for urban living, according to development plans recently filed with the city.
Scottsdale-based Deco Communities wants to develop a vacant 2-acre lot east of Scottsdale Fashion Square mall as the Peacock Scottsdale, a high-density residential complex that would be among the area's tallest at 115 feet. The property, 7433 N. Scottsdale Road, sits just west of the Safari Drive condos and about 500 feet east of the mall.
Deco filed construction plans in early December and does not need a zoning change or City Council approval to build the project. Architectural designs, however, must go before the city's Development Review Board for approval. A hearing is not yet scheduled.
The Peacock's apartment towers would feature a sixth-story rooftop deck, overhanging balconies and underground parking, according to development plans. Amenities include an outdoor swimming pool, a lounge, and recreation and fitness centers.
Deco Communities did not respond to a request for comment, and it's unclear when construction could begin. The company has developed several Valley projects, including condos in Scottsdale and apartments in Phoenix and Tempe.
Thousands of new apartments and condos have opened in downtown Scottsdale over the past several years, and the construction boom continues as the city continues to approve developers' requests for new multifamily communities.
The City Council in November approved zoning for two residential complexes in south Scottsdale, including 277 units in the downtown core and up to 750 units along McDowell Road. Both projects will replace shuttered auto dealerships.
The council has approved development plans and zoning requests to make way for nearly 7,000 new apartments since the start of 2013, and a half-dozen new projects proposed this year await council action.
Deco in September opened a $47 million condo tower, called Envy Residences, in the city's bustling downtown entertainment district. About half of the 89 units were sold before construction was finished, according to the company.
The eight-story tower near 75th Street and Camelback Road features condos of up to 2,400 square feet, and prices range from about $349,000 to more than $1 million.
The same developer also is building Inspire Downtown Scottsdale, a four-story condo complex farther south on Earll Drive between Scottsdale Road and 74th Street. The complex will feature 97 units and is scheduled to open in early 2017.
Downtown Scottsdale's increasing density and rising building heights became a significant campaign issue in the November City Council election, with mayoral candidate Bob Littlefield blaming "ugly" residential complexes for "overdevelopment" and traffic congestion. Councilwoman Suzanne Klapp, meanwhile, argued the new multifamily housing helps Scottsdale maintain an "upscale" brand while helping attract more employment to the area.
Rent at some of Scottsdale's new apartment communities can top $3,000 a month and have amenities such as private dog parks, indoor pools and pet salons that cater to tenants.
Overall, Scottsdale's average unit rental rate of $1,168 per month in the third quarter of 2016 was priciest in the Phoenix market, about 8.5 percent higher than second-place central Phoenix, according to data from Cushman & Wakefield in Phoenix. Rent continues to climb in Scottsdale, rising nearly 4 percent in six months.
Scottsdale's apartment vacancy rate of 6.1 percent, however, was among the highest in metro Phoenix and above the regional average of 5.7 percent, according to Cushman & Wakefield.