New Partnership Kicks Off with 1.8MSF Mixed-Use Project in Scottsdale
- Mar 05, 2008
Macerich Partnership L.P. and DMB Associates Inc. have just formed a regional alliance for the development of commercial real estate projects and are initiating the partnership with One Scottsdale, an upscale retail and lifestyle project in Scottsdale, Ariz. that DMB originally commenced as a solo endeavor. One Scottsdale, which will cost upwards of $1 billion at full build-out, will encompass 120 acres in the Scottsdale Road corridor. Macerich-DMB is focusing its efforts on the multi-phase development’s 1.8 million-square-foot retail segment that will occupy 55 acres of the site. Ultimately, 1,100 residences–including urban estates and condominiums–and as many as 400 boutique resort hotel rooms will also sprout up at the location. The team will also incorporate into its office segment Dial Corp.’s new 350,000 square-foot headquarters and research facility that has already gotten underway. With a new partner on board, DMB is handing over development, leasing and operation responsibilities for the retail segment to Macerich, but will retain its control of the residential, hotel and office components.A team of seven architectural firms–master-plan architect Field Paoli and Robert A.M. Stern among them–are involved in the design of the first phase of One Scottsdale. Every facet of the project is being designed as an upscale offering to appeal to the affluent surrounding community, and to serve as a premier destination for visitors. Scheduled to reach completion in the fall of 2010, the first phase, as will be the case with the following phases, will contain amounts of office and retail space, as well as residential and hotel accommodations. DMB’s union with Macerich is a complementary one–DMB vice president Robert Mayhew told CPN today–with DMB coming to the table with a vast understanding of the luxury development sector and Macerich bringing its strong relationships with retailers and its expertise in the market. The timing for forming the alliance was just right, too. “Macerich had been contemplating a project across the street from One Scottsdale, but we ended up looking at the area holistically rather than trying to capitalize on each other’s projects,” Mayhew said. “We ended up finding such a commonality and thought an alliance would be very synergistic.” DMB and Macerich had also been in talks about joining forces on a DMB pursuit in Mesa and another in Buckeye. There is also a possibility that the two will originate new projects through the alliance. “By teaming up together on One Scottsdale, we hope we’ll have that dialog.” DMB is a diversified real estate development and investment concern that, since its inception 24 years ago, has become one of the leading developers in the western United States. The company’s activities include resort and recreational properties, residential communities, and signature commercial properties. Macerich is a REIT that focuses on the acquisition, leasing, management, development and redevelopment of regional malls across the nation.