Sprawl Loses Appeal Amidst Clamor For Urban Living

PHOENIX-Sprawl has driven development in this Sun Belt city for decades. But experts are telling GlobeSt.com that, as Valley residents are increasingly demanding urban living, new developments are homing in on proximity to shops, restaurants and employers.

“In Arizona, land is cheap and urban sprawl has been the norm,” says Dea McDonald, senior vice president for DMB Associates. That norm has resulted in wide swaths of single-family, suburban homes and long commutes. “I think we're seeing a trend where some of the younger generations are gravitating towards living in the inner city,” McDonald says.

To accommodate these younger users, new apartment complexes are cropping up in areas already bustling with retail and office space, such as the Biltmore and North Scottsdale. As the economy continues to perk up, mixed-use communities anchored by apartments and single-family residential are emerging onto the market.

Spurring the trend is a newfound acceptance for renting. “Back in 2005, 2006, there was a shame in renting,” says Jack Hannum, vice president of Transwestern. “If you didn't own your house, you kind of hung your head a little bit.”

Renting, however, has become a mainstay for urban residents seeking luxurious living in high-density areas.

Downtown Phoenix's CityScape is perhaps one of the more dramatic examples of the city's transformation toward urban living and acceptance for renting. The mixed-use complex includes restaurants, shops, a concert venue, fitness center, comedy club and national retailers. Near the development are sporting venues and ASU's downtown campus.

Construction on Phase 1 began in late 2007, and new luxury apartments, The Residences at CityScape, will be available for lease later this year. The apartment building's location atop the 10-story Hotel Palomar affords views of downtown lights and access to hotel amenities.

Outside downtown, other new apartment complexes coming online offer the live-work-play allure.

The 54-unit Lofts on Thomas, built this year in Central Phoenix, is adjacent to St. Joseph's Hospital and offers access to light rail “to complete your urban living lifestyle,” the website promises.

In Scottsdale, SkySong includes 325 apartments to house people working on the campus, an ASU project with office space rented by companies ranging in size from startups to global corporations. Apartments have begun leasing, and construction is scheduled to end in Q2 2014.

Investment Property Associates' new Liv apartments include rent discounts for residents working at companies enrolled in the Liv-Work-Play program. The communities, located in the Ahwatukee section of Phoenix, North Scottsdale, Chandler and Gilbert, offer community events and dog parks. Liv Avendia in Chandler has already begun leasing, and apartments at remaining properties will be available for lease next year.

Gilbert's 402-unit Liv Northgate will be part of a broader North Gateway community — 155 acres with more than 1 million square feet of office and industrial space and 12 acres of retail. The project is a joint venture between IPA and New York City-based The Rockefeller Group.

Further east, Mesa's Eastmark Community covers 3,200 acres of the former General Motors Desert Proving Ground. Up to 50,000 residents will ultimately call Eastmark home. “We think we have an opportunity to create a city,” McDonald says.

Planning documents submitted to the city of Mesa reveal Eastmark's far-ranging plan to develop a walkable, bikeable urban environment with a mix of residential, retail and commercial space devoted to companies of all sizes. The plan calls for 15,000 residential units, including single-family, custom homes, apartments and other multi-family units. About 460 acres is reserved for non-residential use.

In July, Grand Canyon University announced plans to build a campus on up to 160 acres at Eastmark. Developers expect student lofts, classrooms and a student union.

Home sales have begun, and planning is underway for the community's first commercial area, located on the northeast corner of Ellsworth and Ray Roads. The site will likely be anchored by a grocery store with pads for gas stations and banks in a Main Street-like retail district. McDonald says another section of Eastmark might incorporate ground-floor retail and second-floor multifamily.

“It's really a blank palette, as much as we want to plan, plan, plan,” McDonald says. “This is going to grow organically.”