Trammell Crow Residential files Scottsdale office-to-apartment conversion plans

Trammell Crow Residential filed plans to convert a Scottsdale office property into a 319-unit, five-story apartment complex, the Phoenix Business Journal reported.

The Related Group bought the building at 14646 North Kierland Boulevard in 2023 for $32 million. That purchase followed the firm's rezoning of the site and city approval for conversion plans. The property had traded in 2020 for $19.4 million, or $243 per square foot.

The 5.4-acre property holds an 80,000-square-foot office building constructed in 2000. Trammell Crow Residential's plans call for 13,000 square feet of amenity space and a pool, spa and lounge area. The site abuts the Westin Kierland Resort & Spa's Mesquite Golf Course, where Host Hotels & Resorts' residential redevelopment plans have drawn opposition from neighbors, KNXV reported.

Kierland-area rents have hit bottom and are stabilizing after post-pandemic apartment development pushed rates down, according to Cushman & Wakefield, with the average asking rate approaching $1,600 a month. The Kierland area is a 730-acre master-planned community straddling the Phoenix-Scottsdale line, home to some of the region's priciest apartments.

Trammell Crow Residential, the multifamily arm of Dallas-based Crow Holdings, opened a Phoenix office earlier this year to pursue market-rate Class A development in the region. Crow Holdings has asked LPs to price a $3.3 billion renovation bet, as this publication reported in September.