Glimcher Eyes Phase Two Start at 600,000-SF MXD

The 257,000-sf first phase, which broke ground in October 2007, will be ready to open next spring. The developer will have invested about $250 million into construction of the two phases, a mix of retail and about 100,000 sf of office set on 28 acres at 15101 N. Scottsdale Rd.

Scottsdale Quarter is master planned for a third phase, which will consist of residential and hotel space. The plan is for local developer Wolff Co. to build the final phase after Glimcher's done with phase two.

The reason for phasing in the project wasn't economics, but logistics. "We've been building phase one around an existing research center," explains Lisa Indest, vice president of finance and accounting for the Columbus, OH-based Glimcher Realty. The 129,689-sf research center belongs to Dial Corp., which will move in early 2009 to 400,000 sf at One Scottsdale,, which is right down the street. Then, the building will be razed so work can begin on Scottsdale Quarter's phase two.

Indest tells GlobeSt.com that about 60% of the total retail space and nearly one-third of the office space are committed. The retail roster includes Williams-Sonoma, West Elm contemporary furniture store and Hennes & Mauritz, a high-end fashion brand for men, women and children.

Indest says Glimcher plans to hold onto the asset once it is finished. "We felt the timing was perfect for this type of project," she says. "We have strong retail demand and an infill location across the street from the 450,000-sf Kierland Commons lifestyle center, which is owned by Macerich Co. in Santa Monica, CA.

"We don't view ourselves as competition to Kierland," Indest continues. "We think Scottsdale Quarter will be very complementary to that development. We complement one another in terms of merchandise offerings."

Corritore Co. of Scottsdale is doing the retail leasing for Glimcher. CB Richard Ellis' Phoenix team has the office assignment. Nelsen Architects Inc. of Phoenix designed Scottsdale Quarter and Baltimore-based Whiting-Turner Contracting Co. is building it.