Daily Top 5
First office-to-apartments ‘flip’ hits Scottsdale
Article originally posted on East Valley on Oct 5 2026

Unlike most fictional detectives, critic Peter Haining notes, Georges Simenon’s Maigret “relies on his intuition and unique facilities of perception.”
The French puzzle solver might puff a few pipes while cutting through the fog hanging over Scottsdale City Council’s 2 p.m. Tuesday, Oct. 6, meeting.
The name of the gathering is somewhat cryptic, though not entirely unique: “special meeting.”
Adding to the mystery: the developer with a plan that may terrify some is unnamed on the agenda.
The meeting is highlighted by an executive session to “discuss and consult with the city’s attorneys for legal advice, and to consider the city’s position and provide possible instruction to the city’s attorneys, regarding matters arising from the proposed Northsight Apartments ….”
The location is clear enough: 13875 N. Northsight Boulevard, near Thunderbird Road and the Loop 101.
Conjuring an image of Maigret’s mysterious first-nemesis Pietr the Latvian, the unidentified developer apparently plans to use the state’s new “adaptive reuse/multifamily conversion” law.
This would be a first, in Scottsdale.
Several members of Scottsdale City Council have pushed back – however ineffectually – against state laws aimed at forcing cities like Scottsdale to allow more “affordable housing.”
You can generally read “apartment buildings” for that.
Maigret would quickly find the city’s aversion to the project hidden between the lines of the agenda.
The key, though somewhat murky, section is “the potential filing of a complaint … regarding the city’s interpretation and application” of the state law.
Scottsdale has been down this road before, only to receive “do not enter” commands from state leaders.
When the state passed a law allowing home owners to build casitas, Scottsdale tried to exclude most of the city – under the logic most areas were too close to the Scottsdale Airport.
Furious state legislators passed a new version, stating it closed the loophole Scottsdale was trying to exploit.
According to arizonalegislature.gov, “Arizona Revised Statutes 9-462.10 requires large Arizona municipalities (population 150,000 or greater) to establish objective standards allowing the adaptive reuse of commercial, office, or mixed-use properties into multifamily housing without requiring rezoning, planned unit developments, or public hearings.”
The law mandates that cities allow adaptive reuse/multifamily conversion on at least 10% of existing commercial, office, or mixed-use parcels or buildings.
And the lawmakers were very specific: “no public hearings.
The law prohibits requiring a conditional use permit, rezoning application, planned unit development, “or any application triggering a public hearing.”
Flashback to late spring, 2025:
At a Planning Commission meeting, city planner Brad Carr introduced “Adaptive Reuse Text Amendment Initiation.” Carr reviewed a law passed in 2024 that can be boiled down to “office to apartment flipping.”
The original legislation required cities to allow “up to 10%” of existing, underused commercial or office properties to be converted to multifamily residential housing without a public hearing process.
Scottsdale went lowball on its interpretation, allowing only 1% of the existing commercial, office and mixed-use land to be converted.
Foul play, cried state leaders.
They spent the early part of the year amending the adaptive reuse law requirement for cities from “up to 10%” to “at least 10%.”
Following the Planning Commission’s grudging approval, Scottsdale’s elected officials had little choice but to fall in line.
On June 24, 2025, Scottsdale City Council unanimously approved “implementation of House Bill 2110 (2025),” with wording for “redevelopment of at least 10% of existing commercial, office, or
mixed-use parcels for multifamily residential use” – and, as previously noted, “without requiring a rezoning, conditional
use permit, or public hearings.”
The city is able to establish “updated development standards related to height, density, and setbacks based on existing nearby zoning.”
Though not directly related, Scottsdale fought another state law in the last two years, with the city specifying the “casitas bill” did not apply to homes and properties within roughly a 10-mile radius from Phoenix Sky Harbor International Airport and Scottsdale Airport.
The city’s interpretation covered much of the city, including South Scottsdale and Old Town.
Some state leaders were furious at Scottsdale’s perceived manipulations.
In late 2024, a joint statement from Arizona House Majority Leader Leo Biasiucci insisted, “Scottsdale is now in violation of the laws passed in HB2297 (‘adaptive reuse”) and in HB2720 (“casitas”).
Biasiucci and others worked on revisions to the adaptive reuse language in 2025.
Here, as well, Scottsdale ultimately surrendered.
“At their Sept. 30 meeting,” according to a city press release last fall, “the Scottsdale City Council amended the city’s zoning ordinance related to accessory dwelling units (ADUs) to comply with a state law (HB2928) adopted earlier this year.
“The new law expands the ability for ADUs to be built on residential lots.”
Developer uncovered
Rather than a pipe-smoking examination of evidence, unearthing the developer requires only a Google search.
Commercial real estate tracker vizzda.com records a 2022 purchase of the property by Desert Financial Credit Union.
According to commercial real estate site Loopnet, “North Scottsdale redevelopment or owner/user at 13875 N Northsight Blvd.,” an 8,500 square-foot office building was for sale for $9.5 million – but is “in escrow.”
The property is billed as “rare redevelopment or owner/user opportunity in highly sought-after North Scottsdale neighborhood.
“Proposed uses include corporate headquarters, medical and senior housing.”
The 6-acre property is zoned as “C-2 – Commercial.”
But …
The developer who apparently purchased the property seems to have other ideas.
According to Scottsdale-based developer of industrial, retail, office and multifamily real estate properties:
“KB DEVCO is planning to construct 121 units at 13875 N Northsight Blvd. in Scottsdale.”
Asked about the project, Erin Walsh, a Scottsdale spokeswoman, said an application for the “multifamily conversion case at 13875 N Northsight Blvd.” was submitted July 2.
The Planning Department “sent back comments and are awaiting their second submittal.
“This is for about 275 dwelling units (five stories),” Walsh added, “on the 4.5-acre site.”
The owner is listed as a limited liability company called Northsight Partners, in turn owned by Benjamin Johnson – president of KB Development Company.
The city’s strategy in this test case for the new law will not be open to the public, as the Oct. 6 executive session is a closed affair.
As such, apartment-wary residents may feel what a French detective once observed in a subject’s eyes: “something uncertain but undoubtedly akin to anxiety.”
