Experience

Client:

Optima, Inc.

Project:

Perkins Coie LLP represents a joint venture of Optima, Inc. and DeBartolo Real Estate Investments, LLC in the development of Optima Sonoran Village.

To be completed in three phases, Optima Sonoran Village is a cutting-edge interpretation of its Scottsdale setting. The integration of five residential buildings creates an entire luxury community at the gateway to Downtown Scottsdale. Residents experience both exceptional style and sustainable living with environmentally incorporated architecture. Residence highlights include stunning views of Camelback Mountain and surrounding landscape and
private garden terraces.

Issue: 

Project challenges include the following:

  • Phased Development. Optima Sonoran Village is a development that will be completed in three distinct phases. Phase I is complete and open. Phase II is nearing completion of construction. Construction on Phase III has not yet commenced.
  • Multiple Owners. Each phase is owned by a separate entity, and development of a phase needs to be independent of other phases for the purpose of financing and construction.
  • Integrated Approach. Although each phase is under distinct ownership and has independent financing, the three phases need to be integrated and work as a unified whole for the benefit of the occupants of Optima Sonoran Village.

Solution: 

Perkins Coie recommended and assisted our client in putting in place a condominium regime consisting of five condominium units (one unit in each of Phase I and III) and common elements. Even this solution had its own set of challenges, as each independent unit has vertical as well as horizontal boundaries that intersect other units. For example, a portion of one unit exists on top of and below a portion of another unit. We assisted in the negotiation of the construction loan for Phase I. 

At roughly the same time that Perkins Coie was working on the permanent loan for Phase I, we assisted with construction financing for Phase II. This required coordination among the client, two sets of lenders and the condominium association to make sure everyone’s rights and obligations were clearly stated under the condominium declaration and correctly reflected each party’s expectations. 

Perkins Coie recently completed the negotiation and closing of a refinanced permanent loan for Phase I. We are looking forward to Phase III of the project.