After a big bump late in the year, Phoenix joined Las Vegas as the nation’s leader for apartment rent growth in 2018, according to RealPage, Inc. In the last 12 months, apartment rents have climbed 7.4% in Phoenix, matching the increase in Las Vegas.
By comparison, apartment rents rose an average of 3.3% across the nation in 2018.
Despite the fast-rising rents, Phoenix renters are still filling up apartments at healthy rates. Occupancy across the market is 95.4%. Even considering the high growth rate, Phoenix rents are still affordable at an average of $1,075 compared to the national rate of $1,353.
Phoenix, Ariz. – Argenta, a 396-unit apartment community at 4104 E. Broadway Rd. in Mesa, has been sold to a California investor for $50,275,000.00. The development offered opportunity for future value appreciation with extensive renovation and modernization.
Argenta was sold by Millburn Company of Salt Lake City. The buyer was 29th Street Management III, based in San Francisco. Cindy Cooke and Brad Cooke of Colliers International in Greater Phoenix handle the sale transaction.
“We were honored to be involved in the disposition of Argenta for Millburn Company. They did a great job stabilizing and positioning Argenta for the next buyer. 29th Street Capital’s strong local knowledge made them the perfect buyer to take Argenta to the next level.”
Since 2004, downtown Phoenix has been fueled by tremendous economic development activity, including $5.03 billion investment by companies that have redeveloped a 1.7-square-mile area in the heart of central core. Downtown Phoenix currently has 6,121 total units across 101 separate properties. Of those, 2,269 units within 16 properties have either age/affordable/student housing restrictions. As of Sept. 10, there were six properties totaling 1,428 units under construction.
The downtown Phoenix region is changing rapidly, thanks in large part to thousands of new apartments being built as well as scores of new tech jobs landing in the area. The downtown area is receiving a boost from 2,000 apartments that have been finished during the past two years and will get another 3,000 during the next few years.
Within two years, Tucson could face a shortage of more than 1,700 apartments pushing rents to levels not seen before in this market.
In 2017, only 318 new units were brought online and 796 units are now under construction.
The human-centered business model of disruption set the bar of ambition for KTGY as it took on the task of designing its “Apartment of the Future” concept. In collaboration with the National Multifamily Housing Council (NMHC), the company set out to imagine how multifamily housing will evolve over the next decade, focusing on how developers and designers can create spaces for residents that enhance their living experience in an environment that changes and evolves constantly.
But this isn’t your typical next-century Jetsons’ apartment.
The Phoenix area has 10,500 apartment units under construction to the tune of nearly $1.4 billion, according to a report being released today by Colliers International.
The market continues to record vacancy declines, even as new units are delivered, said Pete O’Neil, research director for Colliers International in Phoenix.
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