SEDONA, ARIZ. — Wespac Residential, as general contractor, has broken ground on The Villas on Shelby, an affordable multifamily property in Sedona. Project partners include HS Development Partners, the City of Sedona, Athena Studio and the Arizona Department of Housing. The Villas on Shelby will be Sedona’s first-ever affordable housing community and will be funded through federal Low-Income Housing Tax Credits (LIHTC). Situated on a 1.2-acre site acquired by the City of Sedona, the three-story apartment complex will feature 30 affordable rental homes, including 24 one-bedroom units and six three-bedroom units. The development will include covered parking, a community room with a kitchen, fitness room, playground and elevator access. Additionally, the property will feature future-ready infrastructure with stubs in place for electric vehicle charging stations. Construction is underway, with completion and tenant move-in scheduled for May 2026. In addition to federal LIHTC, the project is being funded via an investment from the State Housing Trust Fund, part of Governor Katie Hobbs’ allocation toward addressing Arizona’s housing crisis.
Arizona
FalconEye Ventures Acquires 755,000 SF Scottsdale Quarter Mixed-Use Project in Arizona, Plans $100M in Improvements
by Amy Works
SCOTTSDALE, ARIZ. — FalconEye Ventures has purchased Scottsdale Quarter, an open-air mixed-use development in Scottsdale, for an undisclosed price. The asset offers 755,000 square feet of retail, dining and office space. Current tenants include Apple, Restoration Hardware, lululemon, Jenni Kayne, Veronica Beard, Dominick’s Steakhouse and True Food Kitchen. As part of the acquisition, FalconEye plans to implement a $100 million capital improvement program to the property. The program will focus on tenant curation, infrastructure enhancements and experiential retail concepts designed to differentiate the property. Implementation is scheduled to commence in late 2025, with phased execution designed to minimize operational disruption to existing tenants. FalconEye has retained Vestar to be a strategic partner and oversee operations at the property. FalconEye is a real estate investment company founded by tech entrepreneur George Kurtz in 2020.
PHOENIX — Denali Apartments LLC has acquired Seventh, an apartment property in Phoenix’s North Central neighborhood, from an undisclosed seller for $34.7 million. The seller owned and operated the asset since 2021, during which time they completed major capital improvements. Located at 5145 N. 7th St., the 154,282-square-foot multifamily property offers 286 studio, one-, two- and three-bedroom floor plans with an average unit size of 539 square feet. Community amenities include two swimming pools, several laundry facilities and a modern fitness center with outdoor workout space. David Fogler and Steven Nicoluzakis of Cushman & Wakefield represented the seller in the transaction.
TUCSON, ARIZ. — Gantry has secured a $16.7 million permanent loan to refinance Plaza Colonial, an office and retail property in Tucson. Located at 2840-2890 E. Skyline Drive and 6375 N. Campbell Ave., Plaza Colonial offers 83,869 square feet of retail and office space spread across four buildings. Patrick Barkley and Chad Metzger of Gantry represented the borrower, a private real estate investor. An institutional balance sheet lender provided the five-year, fixed-rate loan, which features full-term interest-only payments. Gantry will service the loan.
Trinitas, Mitsui Fudosan to Break Ground on 27-Story Student Housing Tower Near Arizona State University
by Amy Works
TEMPE, ARIZ. — A partnership between Trinitas Ventures and Mitsui Fudosan America is set to break ground on Astria Tempe, a 27-story student housing tower located steps away from the Arizona State University campus in Tempe. The development will offer units in studio, one-, two- and three-bedroom configurations. Shared amenities will include a pool, spa, fitness center, coworking space, social lounges, dog-friendly areas and ground-floor retail space. The community is scheduled for completion in summer 2027. TSB Capital Advisors arranged equity for the project, and BMO Bank provided financing. The development team includes Layton Construction Co. and Niles Bolton Associates.
Marcus & Millichap Arranges Sale of 84-Unit Westside Commons Apartment Complex in Tucson
by Amy Works
TUCSON, ARIZ. — Marcus & Millichap has brokered the sale of Westside Commons, a multifamily property in Tucson. A limited liability company acquired the asset from a limited liability company for $10.7 million. Located at 1335 West St. Mary’s Road, Westside Commons offers 84 apartments. Hamid Panahi and Clint Wadlund of Marcus & Millichap represented the seller and procured the buyer in the deal.
QUEEN CREEK, ARIZ. — TerraLane Communities, the build-to-rent (BTR) division of residential investment firm IHP Capital Partners, has acquired 22 acres in Queen Creek, about 44 miles southeast of Phoenix, for the development of TerraLane at Hudson Station. TerraLane is partnering with general contractor Hancock Builders in the construction of TerraLane at Hudson Station. This will be the sixth residential development the two firms are completing together. Mark-Taylor Residential will oversee leasing and property management. Western Alliance Bank and 400 Capital Management are providing financing for the project. Construction has commenced, and leasing is anticipated to begin in 2027. The BTR community will include 218 units. Twenty-four of the units will be single-story, two-bedroom duplexes; 97 will be three-bedroom townhomes; and the remaining 97 will be four-bedroom townhomes. Each home will feature a two-car, direct-access garage, stainless steel appliances and integrated smart home technology, such as keyless entry, remote thermostat controls and fiberoptic cabling to support future connectivity needs. Community amenities will include a gated entrance, pool and hot tub, fitness center, grass park, shaded playground, grilling stations, valet trash service and on-site maintenance. Wi-Fi will be available throughout common areas, and all homes will be pet-friendly with built-in dog …
PHOENIX — Gantry has secured a $28.2 million permanent loan to refinance a portfolio of five manufactured housing communities in Arizona, California and Iowa. The fully stabilized assets feature a total of 687 pads across properties in Sierra Vista and Casa Grande, Ariz., Hemet and San Bernardino, Calif., and Atlantic, Iowa. Patrick Barkley and Chad Metzger of Gantry’s Phoenix production office represented the borrower, a private real estate investor. The five-year, fixed-rate loan was provided by an institutional balance sheet lender and features full-term interest-only payments. Gantry will service the loan.
Legacy Partners, DWS Start Construction on 433-Unit Apartment Project in Scottsdale, Arizona
by Amy Works
SCOTTSDALE, ARIZ. — A joint venture between Legacy Partners and DWS has commenced construction of Olea Scottsdale, a multifamily community in Scottsdale. Olea Scottsdale will feature 325 garden-style apartments in 14 buildings and 108 townhomes spread across 24 buildings. Delivery of the townhomes is slated for summer 2027, with apartments scheduled for fall 2027. KTGY is serving as architect and an affiliate of Houston-based The Dinerstein Cos. is serving as general contractor and co-investor for the project.
PHOENIX — Rein & Grossoehme Commercial Real Estate has arranged the $5 million sale of Siete Square, a 35,926-square-foot shopping center located at 4139 W. Bell Road in Phoenix. Mark Rein of Rein & Grossoehme represented the seller, Butterfield Trail LLC, and the buyer, Bell Square LLC, in the transaction. Originally built in 1985, the property was 87 percent leased to tenants including Mattress Max and Georges Baddawi at the time of sale. The center also features a freestanding pad site occupied by Jack in the Box, which was not included in the sale.