North Phoenix Development News Update

Back in 2008 when I started this website, I wanted to write about news targeted to the hyper-local Deer Valley and Norterra region of North Phoenix. The problem was, it was the depths of the Great Recession and all new construction and building came to an abrupt halt.

Now more than a decade later, things have completely turned around. Despite the global pandemic, the stock market is reaching new highs every week. Housing values have jumped tremendously in a short period of time as demand outstrips supply. The 2020 Census revealed that Phoenix is the fastest growing city in the United States from 2010 to 2020, with an 11.9% increase in people, and the only U.S. city to see double-digit growth.

The North Phoenix submarket is reflecting these trends as well. New construction in the Deer Valley and Norterra neighborhoods is booming! Here is a development summary of what has been built in the past 2-ish years and what is currently going in.

Amazon Warehouse

A new Amazon warehouse has been constructed on Pinnacle Peak Road, between 3rd Ave and 7th Ave. Located just north of Deer Valley Road, the building is approximately 145,000 square feet of fulfillment space.

Union Park at Norterra

Union Park at Norterra is a massive 400-acre residential development in Northwest Phoenix. Ground was broken in 2018 with the project scheduled to be completed in multiple phases. The project is a joint venture between Sunbelt Holdings and USAA Real Estate. When completed, the mixed-use community will include single-family homes from three builders, multi-family residential, and a retail district, all centered around a recreation center. The community is also home to Union Park Elementary School, which serves PreK-8 students, and opened in fall 2020. At full build out, the community will feature 1,100 homes.

New homes under construction at Union Park at Norterra in North Phoenix.

New Multifamily Residential

• Avilla Deer Valley - 23rd Ave and Pinnacle Peak Road
• Springs at Deer Valley - 23rd Ave and Alameda Road
• The Retreat at Alameda - NWC 19th Ave and W Alameda Road
• Town Deer Valley - SWC 19th Ave and W Alameda Road
• Elux at Deer Valley - SEC 19th Ave and Happy Valley Road
• FirstStreet at Happy Valley - 17th Ave and Happy Valley Road

New Hotels

• Holiday Inn & Suites Express - N 23rd Ave and W Whispering Wind Dr.
• Best Western Plus Executive Residency - N 21st Ave and W Whispering Wind Dr.
• WoodSpring Suites - N 23rd Ave and W Alameda Road

Best Western Plus / Executive Residency is one of three new hotels recently opened in the Norterra area.

New Commercial Businesses

• Dollar Self Storage - 23rd Ave and Whispering Wind Dr.
• Discount Tire - 23rd Ave and Happy Valley Road
• Cobblestone Auto Spa - 18th Ave and Happy Valley Road
• Greulich's Automotive Repair - 17th Ave and Happy Valley Road
• AutoZone - 17th Ave and Happy Valley Road
• Brakes Plus - 18th Ave and Happy Valley Road
• SmartStop Self Storage - 17th Ave and Happy Valley Road
• Caliber Collision - 23rd Ave and N Farmers Way
• Mesquite Fresh Street Mexican Food - 17th Ave and Happy Valley Road

New Grocery Stores

• Fry's Food Stores - I-17 and Jomax Road (across from Fire Station 55)

TSMC Supplier Sites

Other big chunks of land in the area are being snapped up for development of supplier sites for the Taiwan Semiconductor Factory (TSMC) which is under construction at Interstate 17 and the Loop 303 Freeway.

A conceptual rendering of what the TSMC factory in North Phoenix may look like.

 

Largest House in Arizona

A home is more than just a place to live, it can also be a symbol of wealth, success, and prestige. Arizona is home to many luxury homes with multimillion-dollar price tags. Have you ever wondered: what is the largest home in Arizona?

There are many superlatives that can be used to describe a home: most expensive home sold, most luxurious home. For this article I am talking purely about size: what is the largest square footage private residence in Arizona?

To answer this question, we must distinguish between completed homes and under construction homes.

1. Walker McCune Mansion

Paradise Valley, Arizona is a wealthy enclave located within the Phoenix metro area. Although small in size at 15.4 square miles (39.8 km2.), it is very affluent with a median home price of $2.5 million. But even among these luxury properties, the McCune Mansion stands out from the rest.

The largest private home in Arizona is the 52,000 square foot Walker McCune Mansion, located at 6112 N Paradise View Drive in Paradise Valley. At 52,000 square feet, the McCune Mansion is the largest completed single-family home in Arizona.

The McCune Mansion in Paradise Valley has 52,000 square feet of living space on 3 levels.

 

Walker McCune was the grandson of the founder of Standard Oil Company, and the beneficiary of a significant trust fund. Between 1960 and 1965, McCune spent about $5.4 million (equivalent to $49.2 million in 2022) building the palatial home on Sugarloaf Mountain. However, he went through a bitter divorce with his wife and never lived in the home. He died in 1971 at the age of 68.

The house was purchased in 1986 by businessman and investor Gordon Hall. Hall spent $1 million renovating the home, but spent his time between this property and another home in Mesa. Hall was arrested by Federal agents in 1997 for fraud and racketeering charges. In 2015, he was sentenced to 23 years in prison for running a tax scam and a ponzi scheme.

The house changed hands once again in 1992 when it was purchased by Geordie Hormel, heir to the Hormel Foods company. Geordie lived in the 3-bedroom guest house and allowed his friends and family to stay in the main house. Geordie was soft spoken, humble, and an accomplished musician who founded The Village Recording Studio in Los Angeles and composed music for many popular television shows in the 1950s and 1960s. He lived in the home until his death in 2006 at the age of 77.

The home is still owned by the family. It has been listed for sale in 2006, 2010, 2013, 2015, and 2016 with the last listing being removed in 2018 after failing to find the right buyer. The house has every amenity imaginable including 14 bedrooms, 30 bathrooms, 5 kitchens, 3 levels of living space, and a 10-car garage. It remains to be seen if the home will be listed again someday in the future.

 

2. Silverleaf Mansion

Before the Great Recession and the subprime mortgage lending crisis of 2007, the real estate market was a giant bubble about to burst. One example of this mania is the Silverleaf Mansion, which began construction in 2006.

Artist rendering of the 100,000 sq. ft. Hope Mansion at Silverleaf in North Scottsdale. The home was sold unfinished to Michael Matzek in 2014.

A technology entrepreneur named Jason Hope announced plans to build a mega mansion totaling 100,000 square feet. Hope founded a mobile technology company called Jawa.

In December 2010, Hope threw a massive Christmas party at a completed part of the house. Approximately 400 guests were invited to the event, which included a performance from rapper Ludacris and guests from several TV shows including Snooki from Jersey Shore and "Breaking Bad" star Aaron Paul. The party cost a reported $500,000 according to the website Gawker.

Construction was halted in 2011 after Hope's company Jawa faced a lawsuit over a text-messaging scheme that was alleged to have cost cellphone users millions of dollars. Although Hope settled the suits in 2012, construction did not resume.

The partially-built home was sold in 2014 to Idaho developer Michael Matzek, who announced plans to complete the home. Since that time, I have not been able to find any reports or accounts of the home being completed.

3. Cave Creek Mansion "Blue Sky Preserve"

Cave Creek, Arizona is a small town with a population of around 5,000 people. It is located on the north east edge of the greater Phoenix area. In 2016, the website Sonoran News ran a story about a construction project in Cave Creek with the name "Blue Sky Preserve."

The project is on a large 230-acre parcel of land, leading to speculation that it would be developed as a resort or perhaps a subdivision of new homes.

This Cave Creek mansion will be the largest private residence in Arizona at 60,000 sq. ft. upon its completion. Photo by: 12 News.

In 2020, the Arizona Republic ran a story about the project, calling it the "Cave Creek Massive Mystery Compound." A reporter discovered that the project is actually a 60,000 square foot private residence, which has been under construction for more than a year.

The owner of Blue Sky Preserve is unknown, but aerial photos from 12 News show a lavish main house with 4 artificial lakes on the property.

When complete, this house on Grapevine Road in Cave Creek will capture the title of Largest House in Arizona.

Developer Plans Bell 17 Business Park for North Phoenix

Four years ago, I wrote a post called The Mystery of Phoenix Northgate that explored the history behind a large, vacant parcel of land near 19th Avenue and Bell Road in North Phoenix. Several commenters wrote in to share their knowledge of the ill-fated development.

A New Chapter for Phoenix Northgate
The land eventually became State Trust land, which is often sold at auction. Earlier this year in June 2018, the Arizona State Land Department sold the 93.25 acre parcel at auction for $26.5 million dollars. The buyer was a San Diego, California developer called Sunbelt Land Holdings. Proceeds from the sale of State Trust Land go into a fund that benefits Arizona's K-12 public schools.

Concept Illustration of the Bell 17 Business Park by CBRE.

After sitting dormant for decades, progress on the land across from the famous Turf Paradise race track now appears to moving along quickly. The Phoenix Business Journal reported on November 13th that Sunbelt Land Holdings had purchased another parcel of land, 51 acres in size, near 40th St and the Loop 202 freeway, for $25.8 million.

Sunbelt plans to develop master-planned business parks on both sites. The North Phoenix location is tentatively called Bell 17 Business Park, according to a sign on the property. Initial plans call for 1 million square feet of developed space, spread out over 12 to 16 buildings. The development will include both office and retail space, according to the Business Journal.

The project is expected to break ground in the year 2020. The developer has selected Balmer Architectural Group Inc. for the project, but has not yet announced a general contractor.

Neighborhood in Decline
The neighborhood surrounding 19th Ave and Bell intersection has been struggling with crime and other issues for about a decade. The opening of a new Wal-Mart store on the southeast corner in early 2007 brought an increase in transients and other petty crimes to the area.

Four Phoenix Police cars on a typical night at the 19th Ave and Bell Road Walmart store.

An article published in the Arizona Republic on December 14, 2016 studied the number of calls that Phoenix Police received from 2011 through mid-2016. Records obtained by The Republic showed that three of the top five addresses with the most police calls were Wal-Mart stores. The 19th Ave and Bell Road Wal-Mart ranked 4th in Phoenix for highest number of police calls during the time period. Locations #2 and #5 on the list were large apartment complexes.

Furthermore, a 2016 property crime report published by the Phoenix Police Department shows a "Very High" concentration of property crimes centered on the intersection of N 19th Avenue and W Bell Road in North Phoenix.

This data is similar to the crime map published by real estate website Trulia, which pulls in data from SpotCrime.com and CrimeReports.com. Again, there is a high instance of crime in the vicinity of 19th Ave and Bell compared to surrounding areas.

Famed local steakhouse Bill Johnson's Big Apple closed their North Phoenix location in May 2014. The restaurant was quickly transformed into Pawn 1st, a pawn shop, which is still in operation.

A nearby motel at 17th Ave and Bell Road (across the street from two different cash loan/title loan stores) is well-known to police and locals as a hotspot for prostitution. With a pitiful 1.5 star rating on Google, numerous reviewers mention prostitutes drug dealers, and homeless transients as a problem. With 335 reviews on Google and the vast majority of them being "1-star" ratings, there are enough of them that it simply cannot be a coincidence or an isolated incident.

Possible Turnaround?
Will the construction of a new master-planned office park at 19th and Bell help turn this struggling area around? It is hopeful that the addition of higher paying professional jobs will clean up the area, which is surprisingly rough considering its location in the otherwise quiet sprawl of the North Valley suburbs. We'll be sure to keep you updated on this project as it moves forward.

August 2020 Update
The Phoenix Northgate entry monuments from my original blog post have been torn down. Construction has started on the first building of the proposed 93 acre business park. "Building 5" is scheduled to be completed in October 2020, with 101,058 square feet of space for office or light industrial use. Leasing is being handled through CBRE.

Construction of Building 5 at the Bell 17 Business Center. August 2020.
Photo by: North Phoenix Blog

The massive building is 481 feet long by 215 feet wide, and could accommodate two floors of office space, or warehouse space with its 26 foot clear height. The site plan for Bell 17 Business Park calls for 11 buildings totaling 781,928 square feet when fully built out.

Bell 17 Business Center site plan

Buildings 1, 2, and 3 will be for General Industrial and are 61,600 sf, 62,400 sf, and 38,300 sf (respectively). Buildings 4, 5, and 6 are for flex office space. Building 4 will be 74,250 sf, building 5 is currently under construction at 101,058 sf, and building 6 will be 86,400 sf.

Buildings 7, 8, 9, 10, and 11 are intended for Corporate Office clients. They will be: 88,000 sf (Building 7), 101,200 sf (#8), 54,720 sf (#9), 50,160 sf (#10), and 63,840 sf (#11).
I am hopeful that this new project will bring higher paying, professional jobs to the area. If that happens, the surrounding area may see a revitalization from a crime hotspot in the North Valley to a place where people can work and live comfortably.

North Phoenix Hotels Converting to Senior Living

I have noticed a trend in the North Phoenix area of hotels converting into senior living facilities.

The first one was the former Embassy Suites at 2577 W. Greenway Road. Built in 1986, this all-suites hotel offered 168 guestrooms where every room was a 2-room suite. The website went offline in 2015, and the 17-acre property began the transformation to its present status as "Park Terrace at Greenway." Prior to its closure, the hotel's ratings took a nosedive, with an average score of 2.0 out of 5 on Yelp with 74 reviews. The new property offers four different floor plans for seniors, ranging from 504 square feet to 1,208 square feet.

The next to go was a 166 room hotel located at 2641 W. Union Hills Dr. It has operated under many names over the years including the Ramada Midtown, Park Plaza Phoenix North, Comfort Inn Phoenix North, and most recently, Plaza Inn & Suites. It is now renovated and operating as "Bridgewater Assisted Living." Like the Embassy Suites, this one had pretty bad reviews as a hotel. The website HotelPlanner records that the property had 2.5 out of 5 stars with 196 reviews prior to its closure.

The most recent North Phoenix hotel to convert to a senior home is the former Country Inn & Suites, located at 20221 N. 19th Ave. The 126 room property was built in 2000 and sits on 5 acres of land. Unlike the other properties, this one had great reviews prior to its closure - 4 out of 5 stars with 441 reviews. A banner on the property announces the new name as Deer Valley Senior Living.

Why are so many hotels making this transition? Allow me to make some educated guesses:
1. With so many newer hotels in the Happy Valley/Norterra area, the supply of hotel rooms in the North Valley is greater than the market demand, causing low occupancy and cutthroat rates.

2. With so many baby boomers retiring, there is an increased demand for senior and assisted living care facilities. Converting a hotel saves on cost versus building a brand-new property from the ground up, and it's also faster.

3. Hotel properties typically include all of the facilities needed for senior care, such as on-site laundry service, meal preparation, and large lobby/conference room areas that can easily be repurposed as activity rooms.

4. Don't quote me on this, but I believe that in Phoenix, the same type of zoning that allows for a hotel also permits multi-unit housing. The properties can quickly be turned around without a re-zoning hearing.

5. North Phoenix has two age-restricted communities already, which are the Friendly Village of Orangewood at 27th Ave and Union Hills and the Sand Dollar Apartments.

Will more North Phoenix hotels convert to senior living in the coming years? If the current trend is any indication, then the answer is likely a "yes."

Deer Valley Park to Get New Dog Park

One of the larger neighborhood parks in North Phoenix is Deer Valley Park, located at 19th Ave and Wahalla Ln., just south of the Loop 101 Agua Fria Freeway. The 38-acre park offers amenities including a Community Center, public pool, tennis courts, and playground equipment. But recently, a new project has begun at the park.

New Dog Park under construction within Deer Valley Park

An unused section of Deer Valley Park has been fenced off and construction crews are hard at work building a new Dog Park! The funding was approved in a 2008 measure called the Phoenix Parks and Preserves Initiative.

When completed, the new dog park will have 3 one-acre pens with grass, shade trees, and benches. There will also be a new ramada with drinking fountains and lighting installed. Construction is expected to be completed in Fall 2017.

Based on other dog parks, I presume that the three pens will be designated for small, medium, and large size dogs. Below is an artist's rendering of what the completed dog park pens will look like.

Dog Park Artist Rendering

This is another great feature that will make Deer Valley Park a valued asset to the community and to the North Phoenix area.

Metro Light Rail Expansion Continues

There is an old expression "burning the candle at both ends" which refers to someone working quickly to finish a project. In the case of the Valley Metro Light Rail, they are *building* at both ends!

Construction is underway to extend the Light Rail system in both Mesa and Phoenix. The Mesa segment is expected to open four new stations in August 2015 with two additional stations planned.

In Phoenix, the expansion is divided into two phases, which are scheduled to be completed in 2016 and 2026, respectively.

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Tempe Approves Hayden Flour Mill Redevelopment

One of the oldest and most iconic buildings in Tempe is the Hayden Flour Mill. Located within walking distance of the Tempe Town Lake and adjacent to the ASU campus, the old flour mill is a highly visible monument of the city's history.

First opened by Charles Trumbull Hayden in the late 1800s, the mill produced flour until 1998. Since closing down, the large white silos have attracted vandals, scrappers, graffiti artists, urban explorers, and the homeless. The city has been searching for to do something with the historic structure.

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Former Honeywell Plant to Become Microsoft Data Center

One of the largest private employers in Arizona is Honeywell, who has employed thousands of people throughout the Valley since the mid 1950s. Honeywell's Phoenix operations are a major center for aircraft and avionics manufacturing.

In 2008, the company underwent a major re-structuring which left one of their large facilities in North Phoenix completely vacant.

A recent article in the Phoenix Business Journal states that the old Honeywell plant at 25th Avenue and Union Hills will be getting a new tenant soon! The 575,000 square-foot building is likely to become a new data center for Microsoft!

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Wal-Mart, Light Rail to Revitalize Metrocenter Mall

What was once the largest mall in Arizona is now facing increased competition from retail "power centers," online shopping, and reduced consumer spending due to the economy.

Now, a plan is underway to revitalize Metrocenter Mall and the surrounding area.

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Harkins Camelview 5 to be Replaced by Luxury Cinema in 2015

For 40 years, the Harkins Camelview 5 at Scottsdale Fashion Square mall has been the best place in town to catch an independent or limited-release film.

Located in a small building which is detached from the main mall, the Camelview 5 has dutifully served its clientele of indie moviegoers since 1973. The building's exterior is distinguished by several large metal "mushrooms" adorned with neon lights, which are a local landmark all of their own.

Nearby in the main section of Fashion Square Mall, Harkins Theaters also operates a 7 screen theater showing the latest new releases. For a long time, this proved to be a good setup. However, Harkins has recently announced plans to combine the two theaters into a new 14-screen theater under one roof.

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Greenway Parkway Bridge Replacement Project Begins

If you live or work near the area of 19th Avenue and Greenway Parkway, you'll want to know about this. A segment of Greenway Parkway from 16th Drive/Beck Ln. to 14th Ave is CLOSED until August 31, 2014. The road is closed while the bridge over Cave Creek Wash is being replaced.

Drivers must seek an alternate route as the road is closed to traffic and pedestrians in both directions. Bell Road and Thunderbird Road are recommended as alternate routes. Additionally, city bus service along Greenway Parkway will be suspended between 19th Ave and 7th Ave during this time.

Construction began on March 3rd and is scheduled to be completed at the end of August 2014.

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Maricopa Trail to Be Completed in 2015

Maricopa County has a lot to offer the outdoor enthusiast. There are 10 different parks that offer everything from hiking and walking to bicycling and horseback riding. Soon, these parks will all be connected by a network of trails known as the Maricopa Trail.

When it is completed in 2015, the Maricopa Trail will comprise 242 miles and connect 9 different parks and recreational areas together. These include:

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Sky Harbor to Demolish Terminal 2 by 2019

Earlier this year, I wrote about the Phoenix Sky Train Grand Opening. As I mentioned in the article, the Sky Train will be extended to Terminal 3 and in service by 2015. The Sky Train will not have a station built at Terminal 2, and here's why: it is scheduled to be closed in 2019.

The Sky Train is just one part of a massive plan to overhaul Sky Harbor Airport and modernize it for the 21st century. The Sky Harbor website has all the details about its Terminal Modernization Program.

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Sonoran Boulevard Now Open

On Saturday, May 25th, 2013, the Arizona Department of Transportation officially dedicated a new route that will allow drivers to connect easily from Interstate 17 to Cave Creek Road.

Known as Sonoran Boulevard (formerly Dove Valley Parkway), the road provides a connection between Cave Creek Road and Interstate 17, right in between Carefree Highway and Deer Valley Road.

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Proposed Interstate 11 Would Link Phoenix to Las Vegas

When it comes to Interstate Highways, Arizona is pretty easy to figure out. We have Interstate 40, Interstate 10, and Interstate 8 running east and west, and Interstate 17 and Interstate 19 running north and south. In the far northwestern corner of the state, a small 30-mile stretch of Interstate 15 links Nevada and Utah. And that's pretty much it!

However, the Arizona Department of Transportation and Nevada Department of Transportation are currently working together on a study that will determine the feasibility of building a new Interstate highway that would link Phoenix and Las Vegas. If built, the new highway would be called Interstate 11.

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I-17 Pedestrian Bridge at Jomax Road Complete, Remains Closed

If you've driven on Interstate 17 in North Phoenix within the past year, you may have noticed the new pedestrian bridge that crosses over the freeway between Jomax Road and Dixileta Road. The bridge will allow pedestrians, cyclists, and horseback riders to continue along the multi-use path that follows the Hayden-Rhodes Aqueduct.

The bridge was scheduled to open in the fall of 2012, however, that never happened. For some reason, the fences never came down. Currently, a locked gate prevents people from using the bridge, whose construction has been finished for approximately four months now.

I don't know what is going on with the bridge, but I am sure that the residents of North Phoenix would appreciate a safe way to cross the freeway while they are out for a jog or a ride.

I want to know: what's the deal? How come the bridge is done and not open?

John C. Lincoln Sonoran Health Center Under Construction

In spite of the recessed economy, there are still signs of growth in North Phoenix. Local healthcare provider John C. Lincoln is hard at work building a new facility at Interstate 17 just south of Carefree Highway.

The "Sonoran Health and Emergency Center" is a multi-story facility which is expected to open in late 2013 or early 2014. When complete, the facility will include hospital beds for up to 120 patients. This will allow John C. Lincoln to serve the growing communities of Anthem, New River, and Black Canyon City with medical care in a convenient location.

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Phoenix Sky Train Celebrates Grand Opening

After four years of construction and $644 million dollars, the first phase of the Phoenix Sky Train opened to the public on Monday, April 8th, 2013. This is the first phase of this mass-transportation system that will modernize Sky Harbor Airport.

The first section of the Sky Train ferries passengers along a 1.7-mile track from the East Economy Parking area to Terminal 4. Future sections will connect to Terminal 3 and to the Rental Car Center when the project is complete in the year 2020.

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World's Largest Mobile Crane at Intel's Chandler Facility

Although this is the North Phoenix Blog, I acknowledge that important things happen in other parts of Phoenix and Arizona all the time. Sometimes, very big things happen.

If you've been in the Chandler area recently, you may have seen the gigantic crane at the Intel plant. You may have even thought to yourself "Wow, that's a big crane." It is more than just big, it is one of the largest mobile cranes in the world!

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Phoenix FBI Headquarters Close to Completion

Regular readers of this blog may know that I have been keeping an eye on a very large office building under construction in North Phoenix for the past 2 years. Now, the new Phoenix FBI Headquarters is close to completion!

The massive building is close to completion with the windows, signage, flags, and security fence installed. I drive by this location frequently, and decided to take a photo for this post. I pulled over and hopped out of the car to snap a quick photo.

While I had been stopped by the side of the road for less than two minutes, I was quite surprised to see a Phoenix Police officer had pulled up behind me. He was standing next to his vehicle with a blank expression on his face. "What's going on here" he said flatly.

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