Hines, the international real estate firm, announced today that it has closed financing with Alliance Bank of Arizona and is set to begin construction on a significant new luxury multifamily project in north Phoenix.
The new Hines multifamily property will feature a 325-unit, 318,000-square-foot luxury multifamily development at the northwest corner of Happy Valley Road and 35th Avenue, offering a mix of one-, two- and three-bedroom apartment homes. This project will consist of six three-story buildings and an additional one-story building which will include a clubhouse and fitness amenity center that surrounds the outdoor pool.
The 11-acre parcel is part of a larger commercial development by Phoenix-based Pederson Group, which owns the adjacent existing 167,000-square-foot Stetson Village shopping center and has plans to develop seven acres of new retail directly in front of Hines’ multifamily development on Happy Valley Road. Pederson has already begun off-site infrastructure improvements on the land.
“We are looking forward to starting construction on this exciting new luxury multifamily project,” said Robert Trujillo, managing director for Hines. “This is an exceptional location in a growing area with a broad base of amenities, and the project being built by Pederson Group adjacent to our development will provide residents of the new community with a great retail mix.”
The area’s close proximity to downtown Phoenix and resident demographics are prime to support a luxury residential project since it is located close to many high-quality employers including USAA, W.L. Gore, and Honor Health, and is also near The Shops at Norterra and Interstate 17.
Dekker/Perich/Sabatini is the architect for the project, which is being planned with the goal of achieving LEED Silver Certification from the U.S. Green Building Council. Modern Constructors is the general contractor.
Alliance Bank of Arizona is providing financing for the project, and Hines is partnering with MetLife as equity investors in the development. Walker Dunlop’s Phoenix office assisted with identification of financing options on behalf of the development team.
The Phoenix metro area’s multifamily market has fared well despite the economic conditions created by the COVID-19 pandemic, with rent rates remaining stable and a significant amount of construction continuing in the market.
The project is Hines’ second multifamily development in the Phoenix market and one of many nationwide. Hines’ announcement comes on the heels of the developer breaking ground on Adeline, its first luxury for-rent property in the Phoenix market. Adeline will be a 25-story, 379-unit high-rise community at the Collier Center in downtown Phoenix.
“Hines is excited about the potential of the Phoenix marketplace when it comes to multifamily development,” Trujillo added. “We are continuing to identify opportunities in the Phoenix area for new development and are looking forward to bringing the new Happy Valley Road development to fruition.”