By Roland Murphy for AZBEX
Long-stalled plans to develop market-rate multifamily at University Drive and Center Street in Mesa have now evolved into an opportunity to deliver 62 affordable senior housing units after City Council approved a lease and development agreement last month.
The DATABEX project database shows plans for the nearly one-acre site at 17, 31 and 37 W. University Dr., dating back to at least 2020. The last iteration was a 54-unit plan with apartments sized between one and three bedrooms. The last reported activity was the property noted as listed for sale in December 2023.
The City of Mesa acquired the three parcels last year, according to the Maricopa County Assessor’s Office and City materials. The presentation to Council for the March 23 meeting notes the site was purchased using federal funds with the intent to develop senior housing through a public-private partnership.
Moving that plan forward, Council approved a resolution to authorize the City Manager to enter into ground lease and option to purchase agreements with Commonwealth Development Company that will enable the development of The Helix on the site. The developer is a division of The Commonwealth Companies, which already has three established communities in Arizona: Lynne Village and The Cove in Phoenix and The Abbott in Bullhead City.
Units at Helix Apartments will be provided as one- or two-bedroom options. The community is also expected to have common areas for programming and exercise activities, as well as an amenity roof deck. There will be covered parking incorporated into the first floor.
Units will be targeted toward seniors earning between 30% and 60% of the Area Median Income.
Estimated costs for Helix Apartments are $18M, and the developer is pursuing Low-Income Housing Tax Credits as a financing mechanism. The agreement is contingent upon securing the LIHTC funds, but City officials said the chances of success are high.
Under the terms of the agreement, the ground lease will have a 50-year term with an option to renew for another 25. During the construction phase, the annual rent will be $1,200, which will increase to just less than $24K after a certificate of occupancy is issued.
Commonwealth must secure the LIHTC funding in either the 2026 or 2027 cycle. When funds are secured, building plans must be provided to the City by the end of the award year, with construction required to start by the end of the next year.
Commonwealth will have the option to purchase the property starting at the end of year 25. Affordability will be maintained as a noted requirement through the entire 50-year term.
A local news report covering the meeting cited Deputy City Manager Candace Cannistraro, who said Commonwealth applied for the credits in 2024 and was next in line for funding when the credits ran out.
Based on the approved agreement and other scoring factors in the plan, Cannistraro expects the application for funding to score as high as 180 points out of a possible 185.
