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Downtown Phoenix Multifamily Development Map & Report Update

ABInsight | Downtown Phoenix Multifamily Development Map & Report Update

By: Thomas M. Brophy, Director of Research

For purposes of the report Update, our focus will be exclusively on ‘for rent’ multifamily projects in the Downtown Phoenix CBD area which includes the 85003 and 85004 zip codes only. The previous report included both ‘for rent’ and ‘for sale’ multifamily product, as well as, the 85006, 85007 and 85034 zip codes as those are considered part of the Central Phoenix Submarket as a whole.

Current Multifamily Inventory
As currently exists, the Downtown Phoenix CBD has 3,842 total units across 63 separate properties (10+ units in size) with 1,094 units (10 properties) having either age or affordable (or both) housing restrictions. Average vintage for the CBD is 1964.

Current Multifamily Under Construction
As of September 27, 2016, there were six (6) properties totaling 1,260 units under construction and detailed below.

The Muse (Market)
Developer: Lennar Multifamily Communities
Number of Units: 367
Location: 1602 North Central Avenue, Phoenix, AZ 85004

Roosevelt Arts District (Market)
Developer: Alliance Residential
Number of Units: 318
Location: 1011 North 3rd Street, Phoenix, AZ 85004

Broadstone Arts District (Market)
Developer: Alliance Residential
Number of Units: 280
Location: 202 East McDowell Road, Phoenix, AZ 85004

iLuminate (Market)
Developer: Baron Properties
Number of Units: 111
Location: 1002 North 3rd Street, Phoenix, AZ 85004

Linear (Market)
Developer: Baron Properties
Number of Units: 104
Location: 998 North 3rd Street, Phoenix 85004

Union at Roosevelt (Market)
Developer: MetroWest Development
Number of Units: 80
Location: 888 North 1st Avenue, Phoenix 85004

Current Multifamily Planned
There have been many planned apartment community announcements, the most recent of which was Transwestern’s City Center on the Park. The planned project, located near the Margaret T. Hance Park $118 million Redevelopment area, consists of two-phases, the first of which includes a 5-story, 319 unit apartment building. In addition to City Center, Transwestern is concurrently moving forward with a 211-micro housing unit project called The Derby at 2nd Street and McKinley.

Another major announcement was the hotly contested City of Phoenix RFP site at 355 North 5th Avenue. The City of Phoenix, despite a few setbacks, officially awarded the RFP to a Trammell Crow entity called High Street Fillmore LLC. Current plans for the site call for 600 total units with a percentage set-aside as affordable.

With the two projects referenced above, and other projects such as The Stewart, fka Circle Records Redevelopment site, bring the total to nine (9) properties totaling 2,343 units currently in the planning process.

Current Average Rents & Occupancy
As referenced on the chart below, the Downtown Phoenix CBD commands, on average, $700 more per month in rent than both the City of Phoenix and Phoenix Metro, currently resting at $1,643/month. Average effective rents across the CBD have increased 25% (6% per year) from 1Q 2013. In fact, Downtown Phoenix, when compared to Downtown Tempe (85281 zip code) and Downtown Scottsdale (85251 zip code), is, on average, $330 per month more expensive.


Despite commanding the highest average effective rents, and referenced on the following chart, Downtown Phoenix boasts the highest occupancy which at 97.02% is the highest of the regions compared and followed closely by Downtown Scottsdale, 96.24%, and Downtown Tempe, 96.17%.


It should be noted that Downtown Phoenix has only recently witnessed, beginning in 2012, more robust development typically relegated to Downtown Scottsdale and Downtown Tempe. From 2010 thru YTD 2016 a total of 1,172 new units have been delivered to Downtown Phoenix which is substantially less than Tempe’s, 3,746 units and Scottsdale’s 1,518 units.

Downtown Phoenix is currently in the development maturation process as both developers and residents have expressed more sustained interest in urban living. Fueled, in large part, by tremendous economic development activity including: the Biomedical Corridor, ASU / UofA campus expansion areas and Phoenix Metro Light Rail serving as a transportation hub. Robust economic growth has, in turn, led to population increases which, according to the Maricopa Association of Governments (MAG), the Downtown Phoenix area is expected to increase by 35% to 35,083 by 2020, from its current 25,908 total.

This post first appeared on ABInsight | Phoenix Arizona Multifamily Apartment, please read the originial post: here

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Downtown Phoenix Multifamily Development Map & Report Update


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