Condo tower is sought for Tempe's lake

Jahna Berry
The Arizona Republic
May. 13, 2006 12:00 AM

A 22-story tower called Onyx may soar over the north shore of Tempe Town Lake, and, if built, would become the third major lakefront condominium development nestled near Loop 202 and Scottsdale Road.

While skeptics and residents wince at the millions that Tempe has poured into the 220-acre man-made lake, the water has helped create a hot real estate ticket.

On the north side, Town Lake's shores are crowded with construction equipment for Northshore, a 137-unit complex being built by WestStone Group of Cos., and Mondrian, a 532-unit condo-apartment project by Gray Development Group.

And on the south side, Suncor Development Co. is building four condo towers and will celebrate the first building's grand opening on Thursday.

"There are limited opportunities for shoreline access," said Greg Loper, director of development for WestStone, which is building Onyx and Northshore. "It's just an ideal location."

The unfinished Northshore project has sold all but a handful of its units, he said.

WestStone said it expects to submit formal plans for the Onyx project to the city in a few weeks.

The project would include townhouses and a condo tower, with a total of about 200 units, Loper said. The condos would sell, on the low end, for an estimated $400,000 to $500,000.

Initially, a restaurant was to be where the proposed Onyx project would go. Now that the lake property is a hot commodity, though, developers are pursuing more condos, said Tempe Development Services Manager Chris Anaradian.

Still, one real estate expert said that while the lake may be a popular location, the rash of condo development is vulnerable to the same market forces as the rest of the Valley.

"Right now, it's a popular area because downtown Tempe is being pushed, but there's a limit to those things," said Jay Butler, head of the Arizona Real Estate Center at ASU Polytechnic.

Butler said that he wouldn't be surprised if a fair number of Arizona State University students with wealthy parents end up living in them.

There could be other challenges. The new condo tower would be about 220 or 230 feet tall, and must be approved by the City Council during public hearings, Anaradian said.

Projects more than 200 feet tall have to notify the Federal Aviation Administration, he said, and the city won't issue a building permit until a project has applied for FAA review.

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