Published:   December 14, 2012
Volume:   XVIII    Number:   49


Tempe/Scottsdale - Zaremba Group in Cleveland, Ohio (Walter Zaremba, principal) is selling its interest in the incredibly popular West Sixth towers apartments in Tempe and has decided not to pursue developing an upscale multi-family project within the Scottsdale Quarter mixed-use development in Scottsdale. Sources say Zaremba is close to completing a deal to sell its roughly 50 percent ownership in the 375 apartments that comprise the 22- and 30-story buildings known as West Sixth. That project is within the Centerpoint mixed-use complex that is located just west of the Arizona State University campus. West Sixth is just west of Mill Avenue and east of Ash Avenue between 5th Street on the north and Seventh Street on the south. In February 2011, a venture formed by Zaremba Group and California State Teachers Retirement System (CALSTRS) paid $30 million to acquire the two partially built towers. Sources say after completing the development, the venture (called ZarCalRes Tempe LLC) now has about $70 million invested in the luxury apartments. Word on the street is that Zaremba will walk away with at least $15 million after CALSTRS buys out its partner based on the West Sixth buildings having a present value of $100+ million. While representatives of Zaremba and CALSTRS won't confirm the pending sale, it does fall in line with further talk that Walter "Wally" Zaremba has decided to retire from the development game. At one point, Zaremba had a deal to develop the upscale multi-family units planned in the third and final phase of the 28.61-acre Scottsdale Quarter project at the southeast corner of Scottsdale Road and Greenway-Hayden Loop. According to The P&Z Report, the developer of the hugely successful Scottsdale Quarter has filed a site modification in Scottsdale involving phase three of Scottsdale Quarter that includes high-end retail, restaurants, office, residential and hotel. The site for the third phase is at the southwest corner of 73rd Street and Greenway-Hayden Loop. The entire project, which was developed and is owned by Glimcher Realty Trust in Columbus, Ohio (NYSE:GRT), is one of the hottest spots for entertainment, restaurants and shopping in the Valley. Many apartment developers were envious last year when Glimcher selected Zaremba Group to jointly develop 350 luxury apartments in a project called Residences at Scottsdale Quarter. Representatives of Glimcher will not comment on why Zaremba Group won't be involved in phase three, but multiple people close to the company say the rest of the planned remaining components at Scottsdale Quarter will still be developed in joint ventures. Kent Chantung, formerly of Zaremba Group and now running his own development company, was expected to make a run at teaming with Glimcher to develop the Residences at Scottsdale Quarter. If BREW's sources are accurate, an unidentified East Coast firm will now develop the multi-family units at Scottsdale Quarter in a venture with Glimcher. That same venture partner also is believed to be working with Glimcher to develop other components in the 9-acre final phase of Scottsdale Quarter. There has been talk of Nordstrom or Bloomingdale having department stores at Scottsdale Quarter. Marshall Loeb is he contact for Glimcher on Scottsdale Quarter . . . call him at (614) 621-9000. Paul Gilbert and George Melara are assisting Glimcher with the zoning . . . call them at (480) 949-6800. Talk to Chantung at (480) 313-4313.

View Larger Map

Copyright © Business Real Estate Weekly of Arizona