Marriott Hotels Corp., the Washington, DC-based hospitality company that operates more than 2,100 hotels and resorts worldwide, is selling 4.2 acres at the northeast corner of 16th Street and Camelback Road, at the very western edge of the popular Camelback Corridor. Marriott purchased and cleared the 8 1/2-acre corner site last year, razing a Revco drug store and McDonald's restaurant. The parcel has an approved site plan, with C-2 zoning, that calls for two hotels and 28,000 sf of retail space. It has a height limit of four stories, as does the rest of Camelback except at major intersections.
Marriott plans to use half of the tract to develop a 192-room Residence Inn, says Art Cunningham, head of Scottsdale-based Cunningham Real Estate, the listing broker on the parcel. "It's a much bigger site than they needed," he tells GlobeSt.com. "They were always planning to sell off the residual."
Marriott will be building on the eastern edge of the acreage, which abuts Squaw Peak Parkway. A shared-space parking garage will be built in the northeast corner.
The property has been listed for sometime, but Marriott held off making a deal until a final decision was made regarding its lodging plan, Cunningham says. That decision should be made in the next few weeks, after which bids will be entertained in earnest, he says. The property should draw between $35 per sf and $40 per sf, Cunningham says. "We are pretty close," he says. "There has been quite a bit of interest. There are not too many development sites along the Camelback Corridor." The strongest interest in the parcel has come from retail developers, he says, although office, multifamily and for-sale condominium developers also have shown interest.
The Camelback Corridor is one of the most popular areas for office users, retailers and restaurateurs. It commands the highest office lease rates in the Valley, most often going for as much as $27 per sf.
The intersection of 24th Street and Camelback Road is considered by many to be the focal point of professional services in the Valley, home to most of the major real estate brokerage firms, law firms, financial institutions, brokerage firms and accounting firms. Biltmore Fashion Park, Camelback Colonnade and Town and Country Mall are situated within a mile of the parcel.
But there is little available land on which to build along the Camelback Corridor, which unofficially runs from 16th Street to 40th Street along Camelback Road. All open lots are developed and a number of underdeveloped sites have been redeveloped in the past few years.
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