A subsidiary of Colonial Development LLC, a Scottsdale-based development company purchased nearly 10 acres along the north side of Raintree Drive, between Thompson Peak Parkway and 92nd Street, for $3.6 million.

The company plans to develop the office condominium project in a joint venture with Stratford American Corp., a Phoenix-based development company who has Phoenix Suns owner Jerry Colangelo as one of its principals, and Diamond Ventures, a Tucson-based development company.

To be called Raintree II, the joint venture plans to build 10 buildings from 5,000 to 13,000 sf. Construction is scheduled to begin at the beginning of the second quarter of 2001, with completion expected some time around the first quarter of 2002.

Colonial Development is under construction on a 42,500-sf office project immediately adjacent to the new project. It is a five-building office condominium project called Raintree I. The project, with buildings ranging from 5,000 to 11,000 sf, is expected to be completed by the second quarter of 2001.

Colonial purchased the land from Shea Realty, which purchased the parcel in two separate deals. Shea Realty purchased a 4.75-acre parcel from John Gardner of Phoenix for $1.625 million and another 4.75-acre parcel from Hedwig Hermerath of Phoenix for $1.6 million.

Scottsdale is one of the tightest office submarkets in the Valley. At the start of the fourth quarter, the vacancy rate in north Scottsdale was 5.6%, compared to an overall vacancy rate of 9.7% valleywide.