The 755,000-square-foot Scottsdale Quarter mixed-use development has been acquired by FalconEye Ventures, which plans to invest $100 million on renovations.
The real estate firm founded by Arizona tech billionaire George Kurtz has made another major Valley investment. Kurtz’s FalconEye Ventures has acquired the 755,000-square-foot Scottsdale Quarter mixed-use development, according to a June 26 announcement. The company is now planning a $100 million capital campaign that will include an expansion of its Class-A office offerings. It has partnered with shopping center operator Vestar to oversee operations at the development. FalconEye Ventures declined to comment on the sale price.
“Scottsdale Quarter is a powerful asset with even greater future potential as a magnet retail destination and a hub for breakthrough technology companies,” said Kurtz in a statement. “This acquisition aligns with our commitment to investing in and developing leading mixed-use properties that serve as catalysts for innovative companies and economic growth.”
Scottsdale Quarter, which is located at 15279 N. Scottsdale Road, will begin on its capital improvements starting in “late 2025” and the renovations will focus on “tenant curation, infrastructure enhancements and experiential retail concepts designed to differentiate the property,” per an announcement from Vestar.
The Scottsdale open-air shopping center is one of most premier retail destinations in the Valley and includes approximately 600 residential units along with more than 300,000 square feet of office space. Scottsdale Quarter is home to brands such as Apple, Restoration Hardware, lululemon, Jenni Kayne, Veronica Beard and Dominick’s Steakhouse among many others.
Vestar CEO and President David Larcher told the Business Journal that the investments in Scottsdale Quarter, which are supposed to occur over the two to three years, will bring the center to new heights.
“Scottsdale Quarter currently is a very high performing property in the retail sector and it sits in one of the premier trade areas in the United States. We really believe we’ve got the opportunity to take it to the next level,” Larcher said. “At the end of the day, Scottsdale Quarter will become a fashion-forward destination with an unmatched collection of unique brands, similar to some iconic streets and retail streets and districts that you may be familiar with — SoHo in New York City, Abbot Kinney Boulevard in Los Angeles, and the Miami Design District in Miami.”
A majority of these nine-figure improvements will be dedicated to the office and retail portions of Scottsdale Quarter, Larcher said. The approximately 300,00 square feet of office space will see improvements in the form of new amenities like conference room facilities and a fitness center. Scottsdale Quarter’s retail makeover will come in the form of “customer facing” improvements, Larcher added. The first set of capital improvements will be a “property refresh” and will begin later this year, Larcher said. Some of those initial touch ups will include redoing the landscaping, common areas and other aesthetic improvements.
There will be no modifications or improvements to Scottsdale Quarter’s residential portion.
Some other renovations were already underway on North Street in March, converting the two larger tenants spaces once occupied by Forever 21 and Express into smaller spaces. Larcher confirmed some of the ongoing renovations will continue, but did not specify which.
Scottsdale Quarter is less than a mile south on North Scottsdale Road from Kurtz’s $1 billion project called The Parque. Kurtz, the CEO of cybersecurity firm CrowdStrike, is behind the ambitious redevelopment plans to transform the former CrackerJax amusement park into a mega mixed-use project, one of the handful of billion dollar developments in North Scottsdale.
The development team submitted site plans in March for the sprawling project, which anticipates bringing 1,236 dwelling units, a 223-room hotel, and a 150,00-square-foot office building to a 30-acre site at 16001 N. Scottsdale Rd.
The first phase of the project will include an 89-unit apartment and a 70-unit condo building that sit on top of retail or restaurant space, four separate restaurant spaces and a 1.7-acre park at the center of the site.
FalconEye also plans Old Town Scottsdale project.
FalconEye Ventures made a splash earlier this month when it confirmed plans for a major mixed-use project in Old Town Scottsdale called 5th & Goldwater.
The project is set to feature a 5-story residential building with 232 units and approximately 32,000 square feet of ground level retail. Scottsdale Quarter marks the second shopping center owned by FalconEye Ventures in the city. The company acquired The Promenade at Scottsdale Road and Frank Lloyd Wright Blvd., which incidentally is also managed by Vestar, for $180 million in 2021, according to previous Business Journal reporting.
The 581,611-square-foot shopping center is 98% leased after signing a slew of new tenants in the early months of 2025,
Phoenix-based Vestar is well-known in the Valley as a developer and operator of shopping centers. Perhaps its most notable ongoing project is the 500,000-square-foot Verrado Marketplace in Buckeye, a $275 million project that’s one of the largest ongoing construction projects in the metro.
Vestar is partnering with Scottsdale-based DMB Associates on the power center, which broke ground on November. Verrado Marketplace’s long list of tenants includes Target, Safeway and Harkins BackLot, and the development was already about 70% leased as of November 2024. It’s expected to create 1,500 jobs at full buildout, while generated $50 million in tax revenue and $1.8 billion in economic output during the first decade of operations.
Other Vestar projects in development include a 530,000-square-foot mixed-use project in Laveen Village dubbed Laveen Towne Center, and the grocery-anchored Black Mountain Village retail center in north Phoenix, which received zoning approval in December.
By Jorge Ramos and Paul Thompson – Phoenix Business Journal
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