SCOTTSDALE, AZ-Investment Property Associates of Grand Haven, MI and local P.B. Bell & Associates have joined forces to build a second area project. The joint venture, Plinth Venture LLC, acquired 5.83 acres with plans to build a 240-unit high-end apartment complex at an all-in cost of $45 million.

Plinth Venture plans to break ground on the as yet unnamed project near the corner of Scottsdale Road and Greenway Hayden Parkway during Q4 2012, with units coming online by late 2013. IPA principal William J. Fettis says the project’s location made a lot of sense because of the abundance of amenities nearby, such as the mixed-use Kierland Commons and Scottsdale Quarter. “The Quarter was coming online right around the time the downturn occurred, and there were a number of restaurants and retail that didn’t open as a result,” Fettis explains.

But that’s starting to change. Owned by Glimcher Realty Trust, the Quarter, which officially opened in spring, 2009, will build out in three phases during the next several years. As such, Fettis notes, the timing for the Plinth Venture apartment project is good.

The timing also speaks to the fact that class A multifamily product in the North Scottsdale submarket is selling for replacement costs or higher. “When that happens,” Fettis tells Globest.com, “it’s time to develop.”

Locally based MT Builders will serve as general contractor for the Scottsdale project, with design services by L.R. Niemiec Architects Inc., also of Scottsdale. The planned unit mix features studios, one- and two-bedroom units ranging from 800 square feet to 1,200 square feet. The partners acquired the acreage from Scottsdale Place LLC, which was represented by Rue Bax, Sean Stutzman and Ari Spiro with Orion Investment Real Estate Solutions. Cindy Cooke and Brad Cooke with Colliers International's Phoenix office represented Plinth Venture.

Fettis goes on to say that Plinth Venture won’t necessarily in a hurry to sell the project once it’s online; IPA is more comfortable as a long-term asset holder. However, “we have to be very aware of where we are in the cycle in Phoenix; there are pronounced peaks and valleys,” he comments. “Though we protect ourselves for a longer-term hold, we have lower leverage than others.”

Last spring, the partners acquired 18 acres at Arizona Avenue and Queen Creek Road in Chandler, AZ to build a 322-unit project that is part of a 50-acre mixed-use development.  Fettis says IPA has other projects in the Phoenix area, but none, at this time, with P.B. Bell. “We’d be happy to partner with them on another project or projects,” he adds.