Multifamily New Construction In 2016 Has Already Beat 20-Year Average

The Phoenix area’s multifamily construction boom isn’t showing any signs of a slowdown. In terms of project units delivered, new multifamily construction has already beaten the 20-year average. New deliveries haven’t hit that average for six years, according to ABI’s Multifamily Construction Pipeline report for Q2 2016.

Here's a synopsis of the report’s stats:

  • Most transactions involved projects built before 1990.

  • Transaction volume was $1.61B for properties with more than 100 units and $119M for properties with less than 100 units.

  • Average price/SF, 100+ units, was $128.39 and average price per unit was $107k.

  • Average price/SF, fewer than 100 units, was $93.35 and average price per unit was $71k.

  • 5,448 project units have delivered this year, beating Phoenix MSA’s 20-year average.

We dug a little deeper to bring you more details about two new multifamily projects ABI noted.

Agave Old Town

Courtesy of Phoenix Capital

Phoenix Capital and JLB Partners are teaming up on this 365-unit development. Agave Old Town will be in Scottsdale, giving residents quick access to the Entertainment District, Fashion Square and Old Town. The project, which just broke ground, will be Phoenix Capital Real Estate Fund VII’s second investment.

The Tomscot

Google Earth

The Connell Co’s latest development, The Tomscot, is open for business in Scottsdale. Offering a vast range of configurations in studio, one-, two- and three-bedrooms, rent starts at $935 for 532 SF. The project most notably features a dog park with a dog washing station, bike storage and bike repair station, five electric car charging stations, smartphone keyless entry for residents and a fitness center.

Courtesy of Greystar

The Tomscot’s fitness center is a force to be reckoned with, standing two stories tall and offering a self-serve protein shake machine, a yoga room, a climbing wall, a spinning room and a UFC room. A golf simulator room offers more relaxing exercise.

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