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Alliance Residential Co. is set to break ground later this month on a 162-unit apartment community in downtown Phoenix on the northeast corner of Third and Portland streets.
Alliance paid $6.45 million for the 1.53 acres of land for the project, according to Vizzda LLC real estate database.
Ian Swiergol, managing director of the southwest division for Phoenix-based Alliance, told the Business Journal that total development costs for the project will be under $40 million. It is expected to be completed during the fourth quarter of 2021.
It will be built next to the 316-unit Broadstone Roosevelt, 330 E. Roosevelt St., which Alliance built in 2016 and sold in March to Weidner Apartment Homes for $84.2 million, according to Vizzda.
While an official name has not yet been selected for the new apartments, its working title is Broadstone Portland, Swiergol said, and basically is the second phase of Broadstone Roosevelt.
Monthly rental rates will range from the $1,400s to $3,000 for some of the top-level penthouse units, he said.
Swiergol said Alliance Residential had great success leasing Broadstone Roosevelt when the Phoenix company owned and managed it.
"Employment in the downtown area has grown so much, the demand for high-end apartments with highly amenitized pool area and fitness centers has grown," he said. "We see that market as one continuing to grow, playing off the successes of Phoenix attracting some high-end employers into the downtown market."
Downtown Phoenix has several high-end luxury apartments under construction and on the drawing board.
"I wouldn't tell you we're not in danger of overbuilding," Swiergol said. "I don't want to say that. We develop properties where people want to live. We see metro Phoenix as a market that's doing a good job of balancing its supply and demand. There may be areas that I tend to think are oversupplied, but overall as a market, we believe it's a very healthy market."
All the apartment communities Alliance Residential builds are branded with the Broadstone name.
It just finished spending over $40 million to build Broadstone Osborn at the northeast corner of Third Avenue and Osborn Road in midtown Phoenix. That 200-unit property is 40% leased, he said.
Also coming online is Broadstone Grand at Papago Park Center and Broadstone Rio Salado in Tempe, he said.
Those four projects — Broadstone Portland, Broadstone Osborn, Broadstone Grand and Broadstone Rio Salado — total nearly 937 units with total capitalization of just under $200 million, he said.
With 3,500 employees nationwide, Alliance Residential has invested in more than $10 billion of real estate and manage a $20 billion portfolio. It is an active buyer, builder and manager across 20 states and 33 metro areas.