PHOENIX: Resume Holders, Rejoice
You can thank the Valley’s job-growth momentum for fueling Phoenix’s multifamily mania. (If there was ever a time to open that tie shop you’ve always dreamed of, it’s now.) RED Capital research guru Dan Hogan tells us that the city created 41,500 jobs in 2012 and jumped to 43,100 in 2013. And near-peak home prices mean apartment demand has been exceptional. The Valley absorbed 2,744 units between July and December, up nearly 40% year-over-year, according to Reis. And Phoenix’s 3% to 4% projected uptick in rent growth through 2018 will place it among the top 15 large markets nationwide. Welcome to the big leagues.
One California investor, MIG Real Estate, just snapped up Quadrangles Village, a 510-unit apartment community adjacent to ASU in Tempe. MIG CEO Greg Merage, above, tells us the firm will focus on student renters by tapping management company Greystar and upgrading amenity packages and interior finishes. It’s MIG’s second investment in Arizona multifamily, and Dan says national institutional investors (co-mingled investment funds, hedge funds, life companies) are eager to add Scottsdale and North Phoenix recent construction trophies to their investment portfolios. Sales dollar volumes skyrocketed last fall as a result.