Author: BEX Staff

By PB Bell Momentum has shifted in the Phoenix apartment market as the area transitions from being one of the hottest multifamily metros in the country during the pandemic, to facing substantial challenges today. Starting in late 2021, the surge in multifamily demand that drove unprecedented performance in the prior 18 months began to evaporate as potential renter households buckled under the weight of high inflation and economic uncertainty. The slowdown in rental demand came just as new supply was ramping up, an imbalance that sent vacancy rates soaring and rent growth negative. Moving forward, Phoenix has yet to feel…

Groundbreakings 1. Construction has started at Meritum Sonoran Desert, a 348-unit apartment community at Sonoran Desert Drive and 29th Avenue. The development from IDM Companies features DAVIS as the design firm, IDM Builds as the general contractor and HILGARTWILSON as the civil engineer. 2. SunCap Property Group is adding to its portfolio at Gilbert Spectrum with construction of the 119.2KSF Building 3. SunCap has selected Graycor Construction Company as the design-build contractor for the building, which will continue the evolution of the developer’s 64-acre industrial park in Gilbert. Construction is scheduled to begin this month, with delivery in Q4 2024.…

The Mesa Design Review Board discussed plans for the 144-unit Apache Gardens garden-style apartment development planned on five acres near Main Street and Crismon Road in its July 11 meeting. The property currently lies in Maricopa County and is part of an annexation and rezoning request. Plans submitted by developer BFH Holdings LLC call for six three-story buildings and a central amenity area. The townhouse-style units will also have two-car garages and a five-foot private backyard or patio. (Source)

Edged Energy has filed preliminary applications with the City of Mesa to develop a 126KSF data center with office space and equipment space on a 14-acre site near Warner Road and the Loop 202 freeway. Reflecting a growing trend in modern data center development, the Edged proposal calls for a facility with a zero carbon footprint and a zero water use cooling system. If approved, the project will require development of a new electrical substation, which would be coordinated with Salt River Project. Edged Energy is the developer. HKS Architects is the design firm, and HILGARTWILSON LLC is the civil…

By Arizona State University and Applied Materials, Inc. Arizona State University and Applied Materials, Inc. have announced an alliance, aided by the Arizona Commerce Authority, that brings more than $270M to create a world-class shared research, development and prototyping facility, the Materials-to-Fab Center, in the university’s MacroTechnology Works building at ASU Research Park. The MTF Center will be designed to accelerate the transfer of innovations from ideation to fab prototype by bringing state-of-the-art semiconductor manufacturing equipment into a collaborative ASU and Applied Materials environment to work with industry partners, startups, government entities and academic institutions. The MTF Center will provide…

By Roland Murphy for AZBEX Having broken ground on the first phase of the massive South Pier at Tempe Town Lake master plan around the beginning of the year, developer South Pier Tempe Holdings LLC (McBride Cohen Management Group) is preparing to move forward with the next phase of the project. Project representative Gammage & Burnham and architect DAVIS submitted an initial application for an amended planned area development overlay and development plan review to the City of Tempe in May. While the documents have not yet been publicly released, BEX Research staff obtained them through a public records request.…

By Roland Murphy for AZBEX Simpatico Communities is planning a new 20-acre mixed-use master planned development in Casa Grande on the south side of East McCartney Road, approximately one-quarter mile from Interstate 10. McCartney Commons will require a rezoning from General Business and Multifamily Residential to Planned Area Development. Simpatico has also requested review and approval for a preliminary development plan. The northern half of the parcel, slightly less than 11 acres, will be designated for commercial use and may be set as two parcels—A and B. Parcel A would be 4.29 gross acres, and Parcel B would be 6.47.…

By BEX Staff for AZBEX Office Metro Phoenix saw no new Office projects break ground in Q2, and the only delivery was a 32KSF build-to-suit for Immedia in the Northeast Valley/Scottsdale submarket. The market saw a negative net absorption rate of nearly 935.8KSF after Q1 was nearly flat. Class A and Class B properties had combined negative net absorption of slightly more than 1MSF. Class C properties, meanwhile, had positive net absorption of 80.3KSF. Overall, buildings with large available areas have encountered difficulties, while those smaller than 50KSF have done well. The vacancy rate increased to 24.6%, which is the…

Giving Back 1. Brycon once again partnered with the City of Chandler to participate in the 2023 Operation Back to School event. Brycon was able to donate 100 backpacks filled with school supplies. Employees donated money, bought supplies and spent a morning assembling 100 backpacks. Awards & Accolades 2. The Greater Phoenix Chapter of IFMA celebrated a year of membership philanthropy at its annual Cheers to the Foundation and Awards Ceremony recently in Phoenix. Members who have made significant contributions to the chapter over the past year were honored. They included: Associate Member of the Year: Aimee Wells, Express Facility…

Sales Transactions 1. CBRE facilitated the sale of the 380-unit multifamily community Soltra at SanTan Village in Gilbert to The Premiere Residential for $140M. The newly built property is the company’s first Phoenix acquisition in 16 years. CBRE’s Asher Gunter, Matt Pesch, Sean Cunningham and Austin Groen represented the seller, Leon Multifamily. 2. STORE Capital Group has paid $50.4M for 394 acres in Coolidge. The land includes the site of Nikola Corporation’s electric vehicle and hydrogen truck manufacturing facility, which the company will lease from the new property owner under a 99-year agreement. 3. Reliant Group Management LLC has paid…