Arizona Ascent July 2024 Issue

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FEATURED ARTICLES

EDITOR’S NOTE

Welcome to the July 2024 edition of Arizona Ascent! Our mission is to ignite and invigorate the dynamic tapestry of Arizona’s real estate landscape. This month, we dive into timely and crucial topics that are reshaping the Grand Canyon State, aiming to keep you informed and inspired.

Arizona’s economy has shown remarkable resilience, kicking off the year with promising strength indicators. Despite challenges, key data points underscore a robust foundation that significantly impacts the residential real estate market, fostering confidence in its stability.

In our Business Spotlight for July 2024, we uncover the fascinating story behind Chin Up Donuts, a Scottsdale-based, woman-owned enterprise led by Alex McEntire, the self-proclaimed Chief Donut Officer. Alex’s unique approach to crafting donuts, pushing boundaries with spicy, savory, or unexpected glazes, topped off with inventive and unconventional ingredients, is sure to intrigue and engage our readers. Her mission? To spread positivity and optimism one donut at a time.

Meanwhile, Maricopa County is on the brink of a crucial event-the Board of Supervisors election. The incumbent, Thomas Galvin, has been endorsed by the Phoenix Realtors for his impressive record in cutting tax rates, balancing budgets, and streamlining government. In an exclusive interview, he shares his vision for the future of our county, making this election a pivotal moment for our community.

As we move onward and upward, let’s delve deeper into the stories shaping Arizona’s narrative. We encourage you to share your thoughts, ask questions, or suggest topics for future editions, as your input is valuable in shaping the content of Arizona Ascent.

Onward and upward,

MARKET REPORT

The Effect of Luxury on Average Prices

The Effect of Luxury on Average Prices

When analyzing the real estate market, the median sales price offers a valuable insight that minimizes the impact of luxury homes, which sell in smaller numbers but can significantly skew averages. The median price, a reliable and trusted analyst metric, filters out these extremes, providing a clear and accurate picture of the market.

The Importance of Median Sales Prices

The median sales price is less affected by the luxury market, which refers to high-end properties that are typically larger, more expensive, and located in more desirable areas, because these homes sell in relatively small numbers. However, these luxury homes significantly impact both the average sales price and the average price per square foot, as some prices are so high they can skew the average upwards. In contrast, the median price ignores the extremes at both the high

and low ends of the market. This is why it is a popular metric among analysts dealing with real estate data, often including outliers that can distort the picture.

Latest Market Segmentation Insights

To understand how different market segments are performing, it’s crucial to look at their median sales prices. By examining smaller market segments, we can observe that the high-end market behaves very differently from the low—and mid-range markets, providing valuable insights for strategic decision-making.

Overall Market

The overall median sales price has been on an upward trend since February 2023, at $456,995 as of April 2024. However, it remained at its peak of $470,000 in May and June 2022.

Northeast Valley (Fountain Hills, Cave Creek)

In this area, the median sales price reached a re-

cord high of $879,500 in April 2024, up from a low of $730,000 in January 2023.

Fringes of the Valley (Maricopa, San Tan Valley):

The median sales price was $410,000 in April 2024, slightly above the low of $410,000 in February 2023, and still below the high of $439,450 set in May 2022.

Data Collection and Accuracy

Using comprehensive public records ensures the accuracy of the data, but it results in slower data collection. This is why we refer to April numbers rather than May. The data includes condos, townhouses, and singlefamily homes. If we analyze only singlefamily homes, all median prices shift higher, but the comparison remains the same. It’s important to note that outliers, which are data points that significantly differ from the rest of the data,

can distort the picture, hence the need for a comprehensive analysis.

Visualizing the Trends

Above is a graph that visually represents the median sales prices in different segments of the real estate market.

This graph showsOverall Market: Comparison of the current price (April 2024) with the low (2023) and high (2022) prices.

Scottsdale, PV, Fountain Hills, Cave Creek, Carefree:

This is a Comparison of the current price (April 2024) with the low (2023) and high (2022) prices.

Buckeye, Maricopa, San Tan Valley: This is a Comparison of the current price (April 2024) with the low (2023) and high (2022) prices.

This visual comparison highlights the variations in median sales prices across these segments over recent years. Understanding these trends is crucial for making informed decisions in the real estate market.

Conclusion

The median sales price is a powerful tool for real estate analysts, providing a clear picture of market trends without the distortion caused by

outliers. We can see distinct patterns that inform better decisionmaking by examining specific market segments. The rising trends in median sales prices since early 2023, particularly in highdemand areas like the Northeast Valley, underscore the dynamic nature of the real estate market. As always, the availability of comprehensive and timely data remains critical to ensuring the accuracy of our market analysis. anyone try her donuts, it would be Christina Tosi of Milk Bar fame and Phoenix Suns legend Charles Barkley.

Real Estate Briefs

Creation Unveils $120M

Switchyard: Queen Creek’s Premier MixedUse Hub.

Creation has unveiled The Switchyard, a $120 million mixed-use development that is set to revolutionize Queen Creek’s downtown. This unique project, planned for construction later this year, will not only encompass restaurants, retail shops, offices, and residential units but also feature innovative design elements and cutting-edge amenities, meeting the growing demand for integrated community spaces.

“Queen Creek is seeing

significant demand for a true mixed-use development that integrates living, working, and social spaces, and The Switchyard aims to meet those needs in this growing community,” said David Sellers, co-founder of Creation. “This project allows us to contribute to the town’s growth with highly sought-after retail, dynamic food and beverage options, amenity-driven offices, and outdoor gathering spaces.”

Strategically located at the intersection of Ellsworth and Ocotillo

roads on a sprawling 10-acre plot, The Switchyard is set to become a bustling hub. Among its first tenants are Postino, offering a 3,800-square-foot industrial wine cafe, and The Porch, opening an expansive 1,900-squarefoot retro-inspired hangout focusing on pub food and entertainment. The project, supported by GFF Design as the architect and LGE Design Build for construction, will open in phases, with the initial phase expected to be completed by early 2026.

Alloy Midtown:

Transforming Phoenix’s Historic DEA HQ

Once the Phoenix Drug Enforcement Agency Headquarters, Alloy Midtown stands as a living testament to urban transformation. This unique history, combined with the blending of two distinct structures into a unified community, is what sets Alloy Midtown apart.

Soltrust Residential REIT has reimagined this site, converting an office building into modern loft apartments alongside a newly constructed contemporary residential block. The grand opening on June 20 marks the debut of 171 modern homes featuring studio, 1-bedroom, and 2bedroom layouts equipped with smart lock systems, hardwood-style

flooring, energy-efficient appliances, and stylish fixtures. Residents will also enjoy amenities such as a dual heated/cooled infinity-edge pool, a fitness center, a yoga studio, a meditation courtyard, a rooftop deck, and a remote working lounge.

Alloy Midtown is the result of a collaborative effort by industry leaders. Developed by Soltrust and

Every aspect of Alloy Midtown, from its historic redevelopment to its modern amenities, is of the higest quality

designed by Synectic and GGLO Design, with contributions from Anderson Design, Peterson, LDG, A.R. Mays Construction, and Sentral, it sets a new standard in residential living. This collective expertise ensures that every aspect of Alloy Midtown, from its historic redevelopment to its modern amenities, is of the highest quality.

Clayco Breaks Ground on Ray Phoenix: Redefining Urban Living in Downtown Phoenix

Clayco, a prominent full-service firm in real estate, architecture, engineering, and designbuild construction, has initiated construction on

Ray Phoenix, a striking 26-story residential tower. This project, a collaborative effort with Ray and VeLa, is set to redefine urban living in Arizona’s capital. Featuring modernist architecture by Johnston Marklee & Associates and Lamar Johnson Collaborative, Ray Phoenix will offer 401 luxury apartments with expansive views of the mountains and skyline through floor-to-ceiling windows. The development aims to seamlessly blend inspired design with functional amenities, including a fitness center, yoga studio, outdoor pool, communal lounges, and lush gardens, complemented by 4,500

square feet of retail space.

The ceremonial groundbreaking on May 31 was a significant milestone for the project, graced by key figures such as Clayco’s Southwest Region President Ryan Abbott, Vela Development Partners’ Principal Nick Benjamin, and city officials, including Christine Mackay. With its unwavering commitment to enriching the cultural fabric of downtown Phoenix, Ray Phoenix will feature a street-level art gallery and a lobby mural by multimedia artist Alex Israel, embodying its vision to create a vibrant residential environment. Set to be completed

in early 2026, the development is poised to raise urban residential standards and make a substantial contribution to the city’s dynamic landscape.

IPA Brokers $64 Million Sale of The Livano Deer Valley, in Phoenix Underlining their expertise and credibility in the industry, Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), has successfully brokered the sale of The Livano Deer Valley in Phoenix, Arizona, for an impressive $64 million. This achievement, which equates to $264,463 per unit for the 242-unit multifamily property, was made possible by

the efforts of Steve Gebing and Cliff David of IPA, who represented the seller, LIV Development, in the deal with the buyer, The Praedium Group. This transaction not only sets a new benchmark in the Phoenix multifamily market but also showcases the robust potential of the area.

Strategically nestled near Interstate 17, The Livano Deer Valley basks in the proximity of Phoenix’s thriving Deer Valley and I-17 employment hubs, which boast a staggering 36.4 million square feet of office, industrial, and flex space. The area magnetizes high-earning professionals with its scenic mountainous backdrop and prestigious residential offerings. Notably, the Deer Valley submarket has witnessed a surge in renter households, outpacing new multifamily unit introductions since 2010. Within a mile radius, the community is a vibrant mix of 79% white-collar professionals, with average household incomes of $142,500 and median incomes of $105,400, in an environment where single-family homes command an average price of $650,500. This

“ “

The Livano Deer Valley redefines luxury living with its array of amenities

makes The Livano Deer Valley a prime investment opportunity, promising a potential return on investment in the thriving Phoenix multifamily market.

Built-in 2023, The Livano Deer Valley redefines luxury living with its array of amenities, including a clubhouse, oversized swimming pool, and spa set in a desertlandscaped courtyard. The apartments are designed to offer modern comforts, featuring ninefoot ceilings, stainless steel appliances, and

in-unit laundry facilities. Some residences even boast more spacious layouts with 12-foot ceilings and floor-toceiling windows, averaging 821 square feet per unit. The property’s location is further enhanced by its proximity to retail and dining options, including popular destinations like The Shops at Norterra and Happy Valley Towne Center, making it an attractive residential investment in Phoenix.

FEATURED ARTICLE

Arizona’s Economy Remains Strong: Implications for Residential Real Estate

Arizona’s economy has demonstrated remarkable resilience, starting the new year with promising strength indicators. Despite the challenges, the critical data points underscore a robust foundation that significantly influences the residential real estate market, instilling confidence in its stability.

Labor Market and Employment:

Revised Job Growth: Arizona’s upward revision of job growth for 2022-2023 to 2.6%, with Phoenix MSA at 3.0% and Tucson at

1.6%, is a significant indicator of the state’s economic trajectory and its implications for the real estate market.

Unemployment Rates:

The state’s unemployment rate remains stable at 3.8%3.9%, slightly above the national average of 3.6%.

Future Job Gains:

Although predicted to slow, growth rates of 2.2% in 2024 and 2.0% in 2025 are still outpacing national projections.

Inflation Trends:

Phoenix’s inflation rate moderated to 2.6% in April 2024, below the national rate of 3.4%.

Shelter inflation in Phoenix was 3.5%, compared to the national rate of 5.5%.

Income Growth:

Arizona saw a 6.5% increase in personal income in 2023, with per capita income rising to $61,652, surpassing the national growth rate.

Housing Market Dynamics:

Rising Home Prices:

The median house price in Phoenix reached $444,990 in March 2024, marking a 6.0% yearover-year increase. Tucson’s median house price increased by 7.3% to $364,900.

Housing Affordability:

Rising home prices and elevated mortgage rates continue to strain potential homebuyers’ affordability.

Impact on Residential Real Estate

Affordability Concerns:

Rising home prices and higher mortgage interest rates are creating affordability challenges. Potential homebuyers need help to enter the market, particularly in high-demand areas like Phoenix and Tucson.

Moderated Inflation:

The slowdown in inflation, particularly in the housing sector, is a positive development. Reduced shelter inflation could ease some cost pressures in the housing market, offering a glimmer of hope for improved affordability.

Income Growth

Supports Market:

Strong income growth in Arizona bolsters the real

estate market by enhancing residents’ purchasing power. This growth helps to offset some affordability issues caused by rising home prices and interest rates.

Increased Housing Supply:

There has been a significant increase in housing permit activity, with a 30.1% rise in total permits in early 2024. This surge, especially in singlefamily permits that have nearly doubled, indicates a robust pipeline of new homes. This could alleviate the supply shortages and address the affordability concerns in the real estate market.

Population Growth Slows:

Slower population growth and reduced migration rates,

influenced by high interest rates and affordability challenges, could impact future housing demand. Monitoring this demographic shift is crucial as it could have significant long-term effects on the housing market.

Outlook for the Future

Arizona’s economic outlook remains positive, with growth expected to continue, albeit slower. Despite the predicted slowdown, the state is projected to add jobs faster than the national average. While affordability challenges persist, robust income growth and an increasing housing supply offer a balanced perspective, fostering optimism about the market’s potential.

As Arizona’s residential real estate market navigates these complex dynamics, stakeholders must remain informed and adaptable. This emphasis on staying abreast of the evolving economic landscape empowers them to make informed decisions and respond effectively to market changes.

How CarbonCapture’s Arrival Seeds Mesa’s Housing Renaissance

As a realtor, I can’t overstate how transformative CarbonCapture’s decision to lease its first-of-its-kind high-volume manufacturing plant here will be for the Mesa residential real estate market. CarbonCapture is not just any company but a pioneer for scalable and flexible direct air capture (DAC) solutions. Its decision to establish a plant in Mesa thrusts our city into the vanguard of the emerging American DAC industry alongside places like California and Wyoming, signaling the potential for Mesa to become a significant player in this growing sector.

CarbonCapture’s revolutionary modular system, designed for efficient mass production and seamless installation, is a game-changer in the fight against carbon emissions. This cutting -edge technology, like the one pioneered by CarbonCapture, can effectively remove carbon dioxide from the atmosphere, making a significant impact on climate change. Mesa was chosen as the flagship site for this groundbreaking technology, a testament to our region’s vibrant innovation ecosystem, talent pool, and commitment to sustainable solutions.

This commitment underscores their intention to make Mesa their permanent base, promising a siginificant boost to our local economy and job market

From a realtor’s perspective, the establishment of CarbonCapture’s $83,000 square-foot plant as a catalyst for further DAC industry expansion presents numerous opportunities. As Adrian Corless, CarbonCapture’s CEO, has confirmed, the company is dedicated to providing competitive wages, comprehensive benefits, and workforce training collaborations with local educational institutions. This commitment underscores their intention to make Mesa their permanent base, promising a significant boost to our local economy and job market, and potentially attracting more businesses and investors to the area.

The expected influx of skilled professionals with stable incomes is likely to drive up the demand for quality housing near the facility and other

major employers in our clean technology corridor. Prospective buyers driven by environmental values are likely to prioritize homes with sustainable features such as energy efficiency, renewable power sources, and green landscaping. This trend could ignite a new era of eco-conscious residential development in the area, further enhancing Mesa’s appeal as a hub for sustainable living, and potentially attracting more sustainable development projects to the region.

Additionally, Mesa’s ability to attract a pioneering company like CarbonCapture

reinforces our city’s pro-business stance and commitment to sectors that support national climate objectives. From a realtor’s vantage point, this raises Mesa’s overall desirability and growth trajectory - key drivers of increasing property values over time. This decision by CarbonCapture demonstrates the potential and value of our region, and we are eager to witness its positive impact on our community.

While carbon capture plants the seeds of change through its physical manufacturing presence, the ripple effects across Mesa’s housing landscape could

be profound. I expect to see a rising tide of sustainability-minded buyers, developers, and complementary businesses looking to ride this green wave of opportunity we’re now positioned to create.

An exciting new era has dawned in Mesa.have

Tom Galvin: Navigating Maricopa County’s Complex Future

In the bustling heart of Arizona, Maricopa County stands as a testament to rapid growth and evolving challenges. At the center of this dynamic landscape is Tom Galvin, a Maricopa County Board of Supervisors member seeking reelection. His journey from land use attorney to county leader offers a unique perspective on the intricate issues facing America’s fastestgrowing county.

A Career Bridging Private and Public Sectors

Galvin’s path to the Board of Supervisors stems from a diverse professional background. As a land use attorney, he honed his skills in navigating the complex interplay between property rights, development, and community needs. “I have worked with realtors, developers, home builders, farmers, landowners, and homeowners on a myriad of issues that

affect us daily,” Galvin explains, emphasizing the practical experience he brings.

His transition to public service began at the Arizona Corporation Commission, where he served as chief of staff to Commissioner Brenda Burns. This four-year stint exposed Galvin to critical infrastructure issues, including electrical, water, and natural gas. “I was involved intimately with electrical issues, water issues, natural gas issues, and just dealing

with ratepayers,” Galvin recalls, highlighting the breadth of his policy experience.

The Road to the Board of Supervisors

When a vacancy opened on the Maricopa County Board of Supervisors in 2021, Galvin saw an opportunity to give back to a community that had “been good to me the last 17 years.” Appointed in December 2021, he faced the unique challenge of learning the ropes of county

governance while campaigning for election.

“I had to go out there while ramping up as a county supervisor, really with important issues, but campaigning,” Galvin says. This baptism by fire proved successful, with Galvin winning both the Republican primary and general election in 2022. As he campaigns for a full four-year term, Galvin brings a wealth of experience and a clear vision for the country’s future.

District 2: A Microcosm of Maricopa County

Representing District 2, which encompasses nearly 950,000 residents, Galvin oversees an incredibly diverse constituency. His district includes urban centers like Mesa and Scottsdale, suburban communities like Fountain Hills, and rural unincorporated areas like Rio Verde Foothills. This diversity presents both challenges and opportunities.

“When I meet with people in either Fountain Hills or Carefree, their issues might be similar, but not the same as when I meet with people in downtown Mesa,” Galvin notes.

This variety requires a nuanced approach to policymaking, balancing the needs of different communities within the broader context of county-wide issues.

Addressing and Tackling

Maricopa County’s Most Pressing Issues

Housing Affordability Crisis

The rapid growth of Maricopa County has led to a significant housing crunch. Galvin acknowledges that the county has been “behind the eight ball for the last 15 years” in meeting housing demand. To address this, he advocates for a multi-pronged approach:

• Incentivizing higerdensity development in urban cores

• Exploring alternative housing options like duplexes and accessory dwelling units (ADUs)

• Working with cities to improve water banking programs to support new development

• Pushing for state-level action to incentivize housing construction

Public Safety and Law Enforcement

As the grandson of an NYPD detective, Galvin

“Arizona today uses less than or as much water as it did in 1957 on an actual basis

places a high priority on supporting law enforcement. He strongly opposes the “defund the police” movement, arguing that a well-supported police force is crucial for community stability and economic growth.

Galvin has worked closely with County Attorney Rachel Mitchell on two key initiatives:

• Educating youth about the dangers of fentanyl, addressing

“the county’s alarming rate of six overdose deaths per day

• Combating organized retail theft through the Organized Retail Theft Task Force

Fiscal Responsibility in Times of Inflation

To help offset the impact of inflation on county residents, Galvin has championed property tax cuts and overall budget reductions. Under his tenure, the county

implemented the most significant property tax cut in its history and reduced its overall budget by approximately 14% over two years.

“We cut it last year by 3%. We’re cutting it this year by 11%,” Galvin proudly states, emphasizing the rarity of government downsizing while maintaining essential services.

Water Management and Future Planning

Despite concerns about water scarcity, Galvin is optimisitc about the future of Arizona’s water. He advocates for a threepronged approach of conservation, augmentation, and reuse (CAR). Galvin points out a little-known fact: “Arizona today uses less than or as much water as it did in 1957 on an actual basis.”

However, he acknowledges the challenges, particularly with the Colorado River, and emphasizes the need for creative solutions and collaboration between cities, the county, and the state.

Infrastructure and Transportation

Looking ahead, Galvin emphasizes the critical importance of infrastructure development in supporting the country’s growth. He strongly advocates for Proposition 479, which would fund transportation projects for the next 20 years.

continues its trajectory as the fastest-growing county in the United States, the decisions made today will shape its future for decades. With his unique blend of private sector experience and public service, Tom Galvin stands at the forefront of these crucial decisions.

newcomers— understanding Galvin’s approach provides valuable insight into the potential direction of county policy.

FUN FACTS

“If you’re a realtor and you want to be selling houses 10, 20, 30 years from now, you need Prop 479,” Galvin asserts, underlining the long-term impact of current infrastructure decisions.

When asked about her favorite donut, Alex doesn’t hesitate. “The

The Road Ahead

As Maricopa County

His reelection campaign offers voters a choice not just in leadership but also in a vision for managing the complex challenges of growth, development, and community well-being. For those invested in Maricopa County’s future—from realtors and developers to longtime residents and

As the election approaches, the stakes are clear: the future of America’s fastest-growing county hangs in the balance, with issues of housing, water, public safety, and infrastructure at the forefront. Tom Galvin’s campaign represents not just a bid for reelection but a referendum on how Maricopa County will navigate the complexities of its rapid growth in the years to come.

Microsoft’s Major Land Purchase in El Mirage: Implications for Residential Real Estate

Microsoft’s recent acquisition of 283 acres of land in El Mirage, Arizona, marks a significant development for the region. The technology giant has invested over $258 million in this prime location, adjacent to its expanding data center campus. This purchase is a vital part of a more enormous 961-acre master-planned industrial park, the Logistic Center at Copperwing, with sections earmarked for data center development. This move has far-reaching implications for the residential real estate market in El Mirage.

The Investment and Its Strategic Importance

At an impressive $912,657.33 per acre, Microsoft’s purchase underscores El Mirage’s strategic importance in the company’s growth plans. The land is situated at the northwest and northeast corners of North Dysart Road and

West Northern Parkway, positioning it ideally for expansion. This area is significant for its planned conversion from industrial warehouses to a state-ofthe-art data center, aligning with Microsoft’s commitment to advanced, sustainable infrastructure.

Impact on Residential Real Estate

Increased Demand for Housing:

The expansion of Microsoft’s data center campus is expected to attract a significant workforce. This influx of employees will drive demand for housing for purchase and rental. As a result, residential developers are likely to see increased opportunities for new housing projects to accommodate this growing population.

Rise in Property Vales:

The development of a major technology hub in El Mirage will likely lead to an

appreciation in property values. As the area becomes more attractive to Microsoft professionals and ancillary businesses, the demand for residential properties will drive up prices, benefiting current homeowners and investors.

Boost in Local Economy:

Microsoft’s largescale operation in El Mirage is not just a boon for the company, but a significant boost for the local economy. The establishment of a major technology hub will create a ripple effect of economic growth, leading to increased employment opportunities and higher disposable incomes. This, in turn, will benefit local businesses and services, making El Mirage an even more appealing place to live and work.

Impactful Infrastructure Improvements:

Large-scale projects like Microsoft’s data center often lead to improvements in local infrastructure. Enhanced roads, public transport, and utilities are likey outcomes, improving residents’ overall quality of life. These infrastructure upgrades can make residential areas more accessible and appealing to potential buyers.

Sustainable Living Initiatives:

Microsoft’s commitment to LEED Gold certification and zero-waste operations for its data centers is not just a corporate strategy, but a significant step towards a greener future. This aligns with a broader trend towards

sustainability and can reassure environmentally conscious residents and stakeholders about the project’s positive impact on the environment. It also sets a standard for future residential developments, ensuring a sustainable and eco-friendly community.

Long-term Prospects

The future of residential real estate in El Mirage looks promising, thanks to Microsoft’s ongoing development of its data center campus and associated facilities. As the area’s profile as a burgeoning tech hub solidifies, it is likely to attract further investments from other tech companies and industries. This virtuous cycle of growth and development will not only

benefit the local economy but also provide longterm stability and growth for the residential real estate market in El Mirage.

Microsoft’s substantial investment in El Mirage is not just a business move, but a catalyst for significant changes in the residential real estate market. With increased demand for housing, rising property values, and improved local infrastructure, El Mirage is not just a place to live, but a thriving community with potential for personal growth and prosperity. The synergy between technological advancement and residential growth will undoubtedly shape the future of this vibrant region, offering a promising outlook for all.

For our exclusive July Business Spotlight, we sat down with Alex McEntire, the founder and selfproclaimed “Chief Donut Officer” behind Scottsdale’s buzzworthy Chin Up Donuts. In the male-dominated world of food entrepreneurship, McEntire is rising to the top with brioche dough and an infectious positive attitude. She has turned her hobby of creating wildly creative donut flavors into a thriving empire with two popular Valley locations.

McEntire’s journey began quite literally in her one-bedroom apartment in Seattle. While working her corporate dream job at Amazon, the constant rain eventually got her down. “I started baking donuts as a sunny hobby,” she recalls. “I became obsessed with perfecting the brioche donut recipea delicious cross between a rich, buttery bread and a pastry.”

Not satisfied with stopping at a perfect brioche base, McEntire

let her culinary creativity run wild, experimenting with glazes and toppings inspired by dishes she loved eating. “If I enjoyed a flavor in another food, I’d think about how I could turn it into a donut,” she says. This exploratory approach led to iconic Chin Up creations like the “Everything Bagel” donut coated with sesame seeds and everything bagel seasoning and buzzworthy collaborations with local restaurants like the “Brisket Brown Butter” donut topped with

If I enjoyed a flavor in another food, I’d think about how I could turn it into a donut

authentic brisket from Little Miss BBQ.

But the journey wasn’t all sunshine and donuts. As she fried donuts in her tiny kitchen and tested flavors at popup shops and farmers’ markets across the Pacific Northwest, the positive response gave McEntire the confidence to take the entrepreneurial leap. However, she also faced challenges such as increasing demand, maintaining quality, and balancing her corporate job with her growing business. In 2019, after an organizational shake-up at Amazon, she decided to move back home to Arizona and pursue Chin Up Donuts full-time.

McEntire spent months doing her due diligence,

speaking to other local donut and coffee shop owners about costs and production, crunching numbers, and creating a business plan. “I had open-book conversations with five or six different shops to understand the financial side,” she says.

The real work began when she opened the flagship North Scottsdale location in November 2020 amidst the COVID-19 pandemic. McEntire got scrappy, pivoting to contactless delivery of custom donut letter boxes that spelled out phrases like “Keep Your Chin Up” to continue her mission of spreading positivity during lockdowns. She also partnered with other local businesses on gift box collaborations.

Despite the challenging times, the Scottsdale community played a pivotal role in Chin Up Donuts’ immediate success. The City of Scottsdale partnered with the brand for community events, providing exposure and practical support. This demonstrated the brand’s success and positive impact on the community, a testament to the power of entrepreneurship in

fostering local connections and support.

Reflecting on her journey, Alex McEntire underscores the significance of community and mentorship. ‘Having that tight-knit network of other local business owners who had been through it already was monumental,’ she notes. ‘The female founders group The Founders was also an incredible source of mentorship and community.’ This underscores the value of support and collaboration in the entrepreneurial journey, making the audience feel included and supported.

Securing financing for expansion has been one of the biggest roadlocks. Still, McEntire has slowly and responsibly grown Chin Up’s staff, production

processes, and physical footprint to maintain quality and consistency. A second location opened in Old Town Scottsdale in late 2021 to meet demand, with more Valley expansions in the works for the next five years.

Chin Up Donuts’ success is about more than just its unique donut offerings and vibrant retro spaces. The brand’s mission, to create spaces that embody the whimsy, joy, and positivity that donuts give people, is a significant part of its draw. This mission is reflected in every aspect of the brand, from the playful donut flavors to the cheerful and welcoming store environments, creating a unique and memorable customer experience.

FUN FACTS

When asked about her favorite donut, Alex doesn’t hesitate. “The Everything Bagel is my all-time favorite.” Another pick was the brisettopped collaboration with Little Miss BBQ. If she could have anyone try her donuts, it would be Christina Tosi of Milk Bar fame and Phoenix Suns legend Charles Barkley.

As for plans, McEntire says, “We’re still a very young business with so much potential. My biggest focus is building the infrastructure and team to expand thoughtfully while staying true to our roots of creativity and positivity.” She envisions

“Do your research, talk to as many people as possible in your industry, and get your finances solid - but don’t wait for the ‘perfect’ time to start. You have to go for it.

“Chin Up Donuts brightening up every Valley neighborhood. Her advice to aspiring entrepreneurs, especially women? “Do your research, talk to as many people as possible in your industry, and get your finances solid - but don’t wait for the ‘perfect’ time to start. You have to go for it.” With her infectious spirit, creative vision, and assistance from Scottsdale’s supportive entrepreneurial ecosystem, Chin Up Donuts’ sweet success is just beginning to rise.

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