[CrestedSaguaro]

Posting this here since it deals with low-rise multi-family development. A little bit on Lafferty's project that is going up with a little smidgen of info on other developments. Rendering of St. Ambrose at: https://laffertyelectrictechnologies.../#!prettyPhoto

More apartments are coming to downtown Phoenix. This time, they're affordable

Despite the fact that 4,000 apartments units are under construction and even more are in the pipeline in downtown Phoenix, Michael Lafferty says the $29 million project he's building is absolutely necessary.

The founder of Phoenix-based Lafferty Construction Co. has started building the 235-unit St. Ambrose Apartments at the southwest corner of Van Buren and 12th streets near the Phoenix Biomedical Campus. This project is different, he says, because the units are more affordable for renters and won't have some of the luxury amenities of other new downtown apartments.

"The St. Ambrose project will average approximately $1,051 per month rents versus the $1,608 average in the downtown area currently," Lafferty said. "This St. Ambrose project will give the professionals, Arizona State University students, biomedical, TGen, downtown-based workers and the general public a sustainable place to reside five blocks from downtown."

This 129,000-square-foot project — which will include a four-story parking garage, pool, clubhouse and weight room — will help transition the Van Buren corridor, as described in the Eastlake Edison general planning documents, Lafferty said.

"The history of Van Buren has an amazing past and now this project will help reinvigorate with this redevelopment in this area," Lafferty said. "The real big advantage is nobody wants to spend 50% of their income on rent, and St. Ambrose helps resolve that issue."

The thousands of apartment units under construction in downtown Phoenix will expand the area's inventory by more than 10%, said Jessica Morin, director of market analytics for CoStar Group in Phoenix.

"The projects currently under construction are limited to 4- and 5-star buildings, which command higher rents," she said. "There is a substantial need for affordable housing, especially during this period of economic volatility, and many renters are facing financial hardships."

In downtown Phoenix, vacancies for mid-tier properties are much lower, she said, trending near 6% compared with 4- and 5-star properties, where vacancies are in the double digits.

"We are expecting a supply and demand imbalance in downtown Phoenix in the near-term that will push up vacancies in the submarket," Morin said. "Most of the increase will be in newly delivered high-end apartments. Conversely, vacancies are expected to be relatively stable in 3-star communities, due to demand for more affordable apartments and the lack of new construction in this space."

Other projects filling up
Here's a quick look at some of the other residential projects in the works downtown that are focused on affordability:

Scottsdale-based Greenlight Communities LLC is investing $325 million to build more affordable housing. The company has four projects under construction and is buying land to build another six around metro Phoenix, which would deliver 2,500 units during the next two years. Rents average $1,100 a month.

Phoenix-based Urban Communities LLC also is acquiring old apartments and is refurbishing them to offer workforce housing, although rents are pushing closer to $1,300 for these units.

Meanwhile, Denver-based Live Forward Ventures made its debut in Phoenix with a 43-unit condominium community in the historic Garfield District at the northeast corner of Polk and Ninth streets. Ranging from 500 to 750 square feet, units are priced starting in the $200,000s.

Scott Kilkenny, a partner in Live Forward Ventures, said his goal was to build attainable housing for first-time homebuyers and those who want to downsize and live in the downtown area.

Called Verde Park Condominiums, that $9.5 million project already sold out its north building, with residents moving into single-bedroom homes.

Only eight units are left for sale, said Nicholas Yale, owner of Brokers Hub Realty, the broker for the project.

"Verde Park's success starts with our developers who had the desire to build attainable homes in central Phoenix," Yale said. "It is exciting to reach out to buyers with a community in the downtown area that is normally unavailable. A community with our location and our price point is unheard of."

Source: https://www.bizjournals.com/phoenix/...partments.html