Top 5 Phoenix Submarkets for Construction Activity

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Top 5 Phoenix Submarkets for Construction Activity

With many businesses moving to remote working, Phoenix has seen significant immigration of residents leaving the overpriced California subways in search of more affordable alternatives. At the same time, local officials have worked to create a business-friendly environment that has caught the attention of major employers such as Google, Amazon, and several life science companies. Phoenix’s multi-family market held up well under the effects of the pandemic and ended 2020 as the market with the highest transactions. This trust in the metro was also evident in the pipeline. Last year around 17,800 new units were added to the portfolio. According to Yardi Matrix data, 116 projects were underway in February for a total of 27,300 units in the subway. That is 8.5 percent of the completed inventory, with the top 5 sub-markets accounting for 54 percent, more than half of all construction activities in the subway. Most of the new communities cater to upscale renters. Here is a list of the most active submarkets in Phoenix in terms of multi-family development activities. 5. Deer Valley rendering from Happy Valley Residences. Image courtesy of Hines With eight ongoing projects totaling 1,843 units, Deer Valley ranks fifth. Hines is developing the largest project in the submarket, the 325-unit Happy Valley Residences. According to Yardi Matrix data, Western Alliance Bank received $ 40.2 million in mortgage lending for the luxury home last November. The project is taking shape on the northwest corner of Happy Valley Road and 35th Avenue in Phoenix, and is expected to go live in 2022 The List. Of the nine properties currently under construction with a total of 2,254 units in the submarket, three are equipped with affordable residential components. The largest project in the sub-market and the third largest in the Phoenix market is the 587-unit The Pier in Scottsdale, Arizona. The project is located on 1190 Vista Del Lago Drive and is part of the city’s goal to combine apartment buildings with offices and retail space in order to revitalize the area and transform it into a modern urban residential area. The project will be on the south shore of Tempe Town Lake. 3. Western suburbs of Acero Algodon. Image courtesy of PCCP LLC The submarket is expected to increase its multi-family inventory by 3,216 units in the coming months. Of the 13 properties currently under construction, the Acero Algodon Center in Phoenix is ​​the largest. In early 2020, Pacific Coast Capital Partners issued a $ 49.2 million home loan for the development of the 458-unit project. IDM Cos. is very active in the metro; The company delivered 3 properties in 2020 and has two more projects in the planning and approval phase. 2. Gilbert The Crossing at Cooley Station. Rendering courtesy of CCBG Architects 3,248 units were under construction in the submarket in February. All 11 multi-family projects are aimed at upscale tenants. The Crossing at Cooley Station is a luxury project taking shape at 3700 E. Williams Field Road in Gilbert, Arizona. Wells Fargo Bank is providing $ 49 million mortgage lending. The 408 unit property will take shape less than 3 miles from the Gilbert Medical Campus. Developer Management Support already has almost 2,900 units in Phoenix and 504 in the submarket. 1. Sky Harbor The Fillmore. Rendering courtesy of High Street Residential Though much has been said about the decline in the popularity of city cores, Phoenix’s Sky Harbor has remained the most active sub-market, with nearly 4,200 units currently (as of February). The 16 projects make up almost half of the total portfolio of the submarket. Sky Harbor is home to the upcoming Phoenix Biomedical Campus innovation center anchored by Arizona State University. The largest project in the submarket and currently the second largest project in the metro is The Fillmore. The partially affordable project will be 609 units and less than a mile from Arizona State University. High Street Residential’s mixed-use project also includes retail space on the ground floor and is expected to go online in late 2022. This list includes apartment buildings with at least 50 units that were under construction through January 2021. Data from Yardi Matrix.

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