Former Scottsdale apartment complex in limbo

A downtown Scottsdale apartment complex that was slated to be razed for a high-rise condo project continues to sit dark and vacant, leading to speculation that the owner is looking to unload the property.

International Capital Partners of Scottsdale purchased the former Orchidtree Apartments in late 2006 and evicted the tenants last year because of costly air-conditioning repair issues.

The company did not say the 10-acre site at the southeast corner of 68th Street and Camelback Road is on the market, but would not rule out that a sale could take place.

“Should the opportunity arise to sell rather than redevelop, we’ll consider it,” said James Petersen, ICP’s marketing director. “But at the present time, we continue to view Orchidtree as an incredibly important redevelopment piece to the future of downtown Scottsdale.”

Unlike an ICP-owned office building across the street, Orchidtree does not have a for sale sign on the property. The former apartment complex features chained driveways, no trespassing signs and dark buildings.

The apartment complex has been vacant since July, which was the same month the owners filed a rezoning application with the city to raze the 1970s complex and replace it with about 200 high-end condos that would rise up to 65 feet in some spots.

To do so, the City Council would need to not only approve new zoning, but vote to expand the boundary of the downtown area to include the site.

The city expressed concern with the project, and no public hearing dates have been set.

Susan Bitter Smith, a consultant working with ICP, said there are plans to amend the site plan, which could include keeping the property outside of the downtown boundary. If that happens, it would limit the height of the buildings to 36 feet.

Bitter Smith said she did not have a time frame for a new submittal, but acknowledged the current state of the housing market and concerns from the city and neighbors over how height has affected the project’s progress. She said the intent, however, is still to raze the current building and construct owner-occupied condos.

Nancy Cantor, a member of the Scottsdale Housing Board and former Orchidtree resident who was hired by ICP to help relocate elderly residents, said it’s her understanding the Orchidtree site is for sale.

“The climate politically and economically is not there (to pursue high-rise condos),” Cantor said. “At this juncture, I’d like to see it rehabbed because we don’t have a significant number of rental units.”

ICP acquired the property in 2006 as part of a master plan to redevelop Camelback Road between 68th Street and Goldwater Boulevard, just west of Scottsdale Fashion Square.

In June 2005, privately held ICP purchased the Camelback Executive Park to the east of Orchidtree (the Tribune leases space in this office complex) and the AmTrust Bank tower, the headquarters for ICP that — until the recent downtown boom — stood as the city’s only high-rise building.

The company also controls the Motel 6 and Original Pancake House restaurant land and the office building at 6828 E. Camelback Road. It is also working on a lease to control the northeast corner of 68th Street and Camelback Road.

The 10,000-square-foot office building at 6828 E. Camelback is listed at $6 million, Petersen said. A master plan concept has never been submitted to the city.

ICP is also developing the new Veritas luxury condos at McCormick Ranch. The company has also announced plans for the proposed 8.5-acre “Cendere on Lincoln” commercial zone at the northwest corner of Lincoln and Scottsdale roads, but no hearing dates have been set. ICP also has offices in Austin, Texas, Denver, London and Montana.