According to Streetscout, Lennar Corp. recently bought two office buildings on four acres of land for $18 million that will be torn down and replaced by luxury apartments. The site lies within the Kierland resort area that intersects Phoenix and Scottsdale. “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.
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