A nearly 100-acre property is undergoing construction that will see 2 million square feet of office space and other uses, and 2,200 multifamily units come to the northeast Phoenix area.
Crown Realty & Development announced the start of construction activity Tuesday on property surrounding the existing High Street retail, office and residential community near Loop 101 and 56th Street in northeast Phoenix.
The total cost of the development is projected to be nearly $2 billion.
“There is no doubt City North is one of the best pieces of real estate in the western United States and will soon offer a variety of residential units, retail, hotels and office space to complement its spectacular location,” stated Crown CEO and founder Robert Flaxman.
Coined the “City of the Future,” City North has started construction on horizontal infrastructure, including water and sewer. Construction will then begin above ground on the streets, sidewalks, landscaping, trees, comfort stations for shuttles and ride sharing companies and streets. The main spine road will be four lanes with a center median bordered with two 12-foot wide tree-lined pedestrian/cycle paths.
Crown hired A.R. Mays for infrastructure construction, budgeted at $20 million. Vertical construction will start next year.
“We are thrilled construction is starting and our brokers are already at work finding the type of tenants and partners to bring one of the finest pieces of real estate in Arizona to life,” said Rick Carpinelli, Senior Vice President of Acquisition and Development at Crown. Mr. Carpinelli also oversees Crown’s Arizona operations.
Among the amenities in the first phase are a 160,000 square-foot, four-story office building and 250 multifamily residential units on four acres.
When completed, City North’s entire multifamily residential component will consist of 2,200 units on 32 acres of the City North development, joining 2 million square feet (47 acres) of Class A offices and other uses in the Desert Ridge area of Phoenix. That includes three hotels and new restaurants.
“The project density and size will make it feel like its own city,” stated Jennifer Parks-Sturgeon, a public relations official for Crown Realty & Development.
Crown acquired the nearly 100-acre City North property in January. The land had been the subject of litigation for nearly a decade and has been valued by the bankruptcy court for $121 million.
Crown — which has developed the Omni Montelucia Resort and spearheaded redevelopment of Mountain Shadows in Paradise Valley — plans to develop what will essentially be a new city and second urban node for Phoenix with City North, a release states.
A formal groundbreaking is planned in early October. The land is zoned for 2,500 residential units, 2 million square feet of office, 500 hotel rooms and 100,000 square feet of retail.
It is next to Desert Ridge Market Place and the High Street development that are in the northwest corner of Loop 101 and 56th Street.
Cushman & Wakefield was retained as the brokers to market the first phase of City North’s multifamily residential component. Several local and national multifamily developers are competing to build that first phase.
CBRE was retained as the exclusive agents for the office portion of a premier mixed-used development.
Crown Realty & Development will be announcing the office developer that will be responsible for all vertical office development. The first phase of the office portion is anticipated to start later this year.
Editor’s Note: Information from Jennifer Parks-Sturgeon, a public relations official for Crown Realty & Development. Updates with estimate on number of residential units.