Homebuilder Lennar Corp. has purchased two Scottsdale office buildings in Kierland that it plans to tear down to make way for new luxury apartments.
The company paid almost $18 million for the two buildings, located on about four acres, public estate records show.
The apartment project is planned for along 71st Street between Paradise and Tierra Buena lanes in the high-end shopping, office, resort and residential area that straddles the Phoenix/Scottsdale border.
“It is unusual for the sale of two high-quality office buildings to result in demolition,” said Greg Hopley, executive vice president of Colliers International in Phoenix, who brokered the sale. “This is indicative of the premium being placed on well-located multifamily sites during this very robust cycle of apartment development.”
Lennar plans to start construction on the apartment project next Fall. The complex could be as tall as six stories and may also include townhomes.
Developer DMB has been planning a hotel/condominium/retail high-rise in Kierland, but hasn’t received zoning approval.
There are four Optima Kierland apartment and condominium towers recently built or planned in the area.
Condo prices in Kierland now easily top $1 million. The area also has some of the Valley’s highest apartment rents, with two-bedroom rentals costing more than $1,800 a month in some complexes.