By Katy Reeve
At the intersection of desirable retail, commercial and residential real estate in Scottsdale, also known as Scottsdale Road at Shea Boulevard, a longtime shopping center is undergoing significant renovations after its sale last year.
Denver-based DPC Companies., a private commercial real estate firm that specializes in acquiring and developing commercial real estate throughout states in the western U.S., purchased the retail center in March of 2018. Formerly known as 7 Thousand Shea, the center will receive a $14 million renovation this year.
Plans for the new center include converting around 50 percent of the square footage into office space and the other half into retail and restaurant space. Situated on more than 8.3 acres, renovations of the 149,708-square-foot property are expected to be completed by February 2019. The final name for the retail and office center hasn’t been determined, but DPC Companies shared that the it will be either Block 7000 or B7.
With the surrounding area attracting people from throughout Scottsdale, the metro Phoenix area and countless tourists, the renovation strategy is to align with the neighborhood.
The property is surrounded by some of the most expensive housing in the state with average home values in excess of $1M. Renovation plans are driven by the need to accommodate high-end dining, creative office spaces and sophisticated retail all with contemporary finishes and move-in ready suites.
Distinguishing features of the office portion include 10-foot windows spanning two sides of the space overlooking an open-air courtyard, and 14-foot ceilings with exposed wood trusses. Additionally, a centralized conference facility and community plaza are planned.
Nearly 76,000 square feet of space will be dedicated to on-site retail and restaurant tenants which also includes a 10,000-square-foot building on Shea Boulevard.
About 50 percent of the spaces are leased with some existing tenants planning to remain at the renovated development. Current tenants include Arizona Bread Company, Tide Dry Cleaners, Pluma Designs hair studio, Beginners Edge Sports Training, AndyFood: A Culinary Studio, Fitness 4 Home Superstore, and Tuesday Morning among others.
ORION Investment Real Estate facilitated the sale of 7 Thousand Shea in March for $16 million, approximately $110 per square foot. Other properties DPC Companies is actively involved with in central Arizona include Bell Tower Shopping Center in Tempe, a 344,527-square-foot office building on Central Avenue in Phoenix, and a collaborative project with fellow Denver company Confluent Development to convert a former Sam’s Club into a 115,000 square-foot industrial building on 12 acres near Phoenix Sky Harbor International Airport.
DPC Companies began its commercial acquisition and development in the late 1970s. During market increases and corrections, DPC Companies has been successful in both redevelopment, new construction, acquisition and value enhancement. The current focus of the company is to be engaged in what they describe as the patient and disciplined search for new turn-around opportunities, as well as select development opportunities for commercial, entry-level residential and raw land development.