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April 23, 2008 - 11:50AM
Updated: April 24, 2008 - 12:25AM
Paradise Ridge land sale could spark bidding war
Donna Hogan, Tribune
A 112-acre chunk of state-owned land in the north East Valley, west of Scottsdale Road and north of Loop 101, could be a battleground for retail heavyweights after all.
The Paradise Ridge property is scheduled for auction Tuesday.
Local shopping center giant Westcor, a division of national retail industry powerhouse Macerich, said it will bid on the parcel it dubbed Pailisene. It was originally pegged for a 1-million square foot luxury shopping center, the core of a planned 2,000-acre master-planned development.
Now rival developer Thomas J. Klutznick Co. may show up to fight for the land.
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"With our role in the development of Desert Ridge and CityNorth, we've always had a strong interest in the Northeast Valley. Paradise Ridge is a natural expansion of that interest," vice president John Klutznick said in a response to a query about whether the company would bid on the property.
Klutznick and retail development partner Related Urban have already started construction of a 1.5-million square foot luxury shopping center on the CityNorth property just west of Paradise Ridge.
In fact, to keep Westcor from getting the state land and making deals with coveted retailers first, Klutznick threw legal challenges at a previously scheduled auction of the property, successfully delaying it until CityNorth had landed Bloomingdale's, Nordstrom and several upscale restaurants.
Meanwhile, Scottsdale-based developer DMB, which planned a smaller luxury retail core for its long-planned One Scottsdale mixed-use complex, said it would bid on the Paradise Ridge land.
But Westcor and DMB joined forces a month ago, so Westcor could develop the retail portion of One Scottsdale, and DMB could handle the residential development of Paradise Ridge if Westcor won the bid.
At the time, State Land Commissioner Mark Winkleman said he was worried that nobody would bid for the Paradise Ridge property, which he had hoped would fetch $100 million - at least $32 million for the land, and an additional $67 million for mandated roads, sewers and other infrastructure improvements.
As of Wednesday, none of the potential players, including Westcor, has indicated to the State Land Department that it plans to bid on the Paradise Ridge parcel, said Jamie Hogue, deputy land commissioner. But bidders are not required to tip their hand ahead of time, she said.
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