Highland 23 Multi-Family Development Opportunity in Central Phoenix
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FOR SALE HIGHLAND 23 MULTI-FAMILY DEVELOPMENT OPPORTUNITY IN CENTRAL PHOENIX ± 3.01 AC vacant site for up to 150-175 units walkable to Light Rail that’s east of I-17 and two blocks south of Camelback Road in an Opportunity Zone. www.highland23.com HIGHLAND 23 CONTACT US BERT KEMPFERT Senior Vice President ±1 602 735 5526 [email protected] TABLE OF CONTENTS 03 EXECUTIVE SUMMARY 05 PROPERTY OVERVIEW 07 INVESTMENT DRIVERS 13 SALES COMPS 15 ZONING 25 DEMOGRAPHICS 33 MARKET REPORT © 2019 CBRE, Inc. All Rights Reserved 2 NOT TO SCALE EXECUTIVE SUMMARY HIGHLAND 23 THE OFFERING Property Name Highland 23 Southwest Corner of 23rd & Highland Avenues, Address Phoenix, AZ 85015 Parcel Size ± 3.01 Acres Price Determined by the market. R-3, City of Phoenix. Will consider selling subject Current Zoning to rezoning to R-5. 45 two-story, 3 bd/3ba, 2-car garage, Approved Site Plan townhomes INVESTMENT HIGHLIGHTS + High demand infi ll location with excellent transit options for modestly priced modern housing + Excellent access to major highways and employment corridors + Walking distance to Valley Metro Light Rail stop at 19th Ave. & Camelback Rd. + Located in an “Oportunity Zone” offering favorable tax treatment + Near Walmart, Harkins Theatres, Costco, JCPenney, Super Target, PetSmart, Ross, El Super, Popeyes, BoSa Donuts, Subway, Geno’s Pizza, Walgreens and banking EXECUTIVE SUMMARY 4 NOT TO SCALE PROPERTY OVERVIEW HIGHLAND 23 PROPERTY OVERVIEW This offering consists of a desirable infi ll location convenient to employment, shopping, schools, and entertainment that’s walkable to a light rail stop and close to freeways to access all parts of the Valley. The site is already zoned R-3, City of Phoenix for a townhome development and has an approved site plan for 45 units. However, the site could be upzoned to R-5 for 150-200 units and a height of 4 stories which could receive favorable tax treatment because it’s located in an “Opportunity Zone”. The site is rectangularly shaped with frontage on Highland Avenue, 23rd Avenue and Coolidge Street in a mature neighborhood near Westwood Elementary School, an apartment community and single-family homes. There is strong demand for new and modern “workforce” housing product especially in this area of the submarket evidenced by new apartment construction and renovation of older projects between the 7’s (7th Street and 7th Avenue) in the North/Central and Downtown submarkets. The Highland 23 site offers a developer the opportunity to develop modestly priced modern housing near Midtown and Downtown with signifi cant price advantage. Over the last year, the North/Central Phoenix submarket average rents increased by more than 8.7% while the vacancy decreased by 100 basis points. Rents along the Central corridor increased over 17% last year. ANTHEM LONE MOUNTAIN RD HAPPY VALLEY PKWY HAPPY VALLEY RD DYNAMITE BLVD RIO VERDE DR SUN CITY WEST PINNACLE PEAK RD DEER VALLEY RD PATTON RD SURPRISE SUN VALLEY PKWY THUNDERBIRD RD 17 CACTUS RD CACTUS RD OLIVE AVE NORTHERN AVE HIGHLANDBETHANY 23 HOME RD 10 VAN BUREN ST YUMA RD AVONDALE BUCKEYE RD APACHE APACHE TRL JUNCTION LOWER BUCKEYE RD BUCKEYE RD DOBBINS RD GUADALUPE RD ELLIOT RD CHANDLER BLVD HIGLEY 10 QUEEN CREEK RD SUN RIGGS RD LAKLAKES HUNT HWY N 8787 587587 NOT TO SCALE PROPERTY OVERVIEW 6 NOT TO SCALE INVESTMENT DRIVERS HIGHLAND 23 INVESTMENT DRIVERS IMPROVING SUBMARKET FUNDAMENTALS West/Central Phoenix is trending with the recent extension of the METRO Light Rail three (3) miles further north on 19th Avenue and will be a more affordable alternative in the future than the more expensive supply constrained North/Central Phoenix Submarket. Central Phoenix rents averaged $1.15 per square foot in 4Q18 and have increased 8.7% in the past four quarters and averaged 92% occupancy, up 100 basis points over the same period. RESIDENT PROFILE Within 3 miles of Highland 23, the population is over 185,028 with a median age of 32.3 and there are over 7,700 employers where 102,733 residents are employed and over one-third of them are college educated. DEVELOPMENT OPPORTUNITY Condo development has exploded in North/Central and Midtown Phoenix where the average sales price is over $600,000 – way out of reach for the average resident profi le that already works, but would like to live in this area. A recently constructed lower priced community is Edison Condominiums at Central Avenue and Thomas Road, a fi ve-story, 80-unit complex with prices starting at $377,500. Currently, with a higher propensity to rent than own, this site presents an excellent opportunity for high density affordable multifamily development of approximately 150 units with favorable tax treatment. Under the federal Opportunity Zone program, created by the Tax Cuts and Jobs Act of 2017, real estate developers who make long-term private capital investments in designated low-income urban communities receive tax breaks on capital gains. Glendale Ave RICHARDSON’S ALL SAINTS CUISINE OF EPISCOPAL NEW MEXICO Abrazo Palo Verde Hospital Golf Course LUCI’S Central HEALTHY THE VIG Campus MARKET PLACE UPTOWN Bethany Home Rd CHRISTOWN Z TEJAS STARBUCKS SPECTRUM MALL VALLEY LUTHERAN HIGH SCHOOL PHOENIX WALMART, COSTCO CITY GRILLE TARGET FEDERAL PIZZA THE YARD P HARKINS MADISON NO 1 PITA JUNGLE MIDDLE SCHOOL MOVIE THEATER JOYRIDE TACOS WINDSOR SPINATO’S Solano POSTINO PIZZA CHURN CHAR’S HAS Central Ave Park Solano 24 HOUR FITNESS 5 & DINER CVS Grand School THE BLUES Canyon SALON FRYS FOODS ESTIQUE SUN UP CHERRY OREGANOS JIMMY JOHNS University Arizona NEWTON BREWERY BLOSSOM PIZZA SANDWICHES Recreation AJS Center DUTCH BROS FINE CAFE CHIPOTLE FOODS Camelback Rd P LIGHT RAIL Camelback Rd P TWO HIPPIES MAIZIE’S CAFE BEACH HOUSE ROCHELLE’S Cielito SALON & SPA BOURGADE BILL LUKE HULA’S MODERN URBAN DUCK & DECANTER Park AUTO TIKI COOKIES CATHOLIC GRANADA HIGH EAST OSBORN TORCH SCHOOL MIDDLE SCHOOL LOLA’S COFFEE SCHOOL WESTWOOD THEATER XAVIER/BROPHY MADISON PARK MELROSE COLLEGE PREP MIDDLE SCHOOL DISTRICT CENTRAL HIGH SCHOOL GEORGE 12th Street COPPER STAR JOE’S TANGIBLE TANNING COFFEE DINER & DRAGON HIGHLAND23Highland & FITNESS Madison STACEY’S 27th Avenue TWO HIPPIES Park & Pool SMOKEHOUSE Towns23 Steele VA MAGIC LUKE’S OF LUX COFFEE SHOP Indian School Medical MUSHROOM CHICAGO Park Center BURGER Indian School Rd COSTCO LONGVIEW BUSINESS RHYTHM ROOM ELEMENTARY GrandCENTER Avenue PHOENIX CHRISTIAN GALLO BLANCO HIGH SCHOOL PHOENIX REGIO’S SAFEWAY CHARTER MEXICAN ENCANTO FOOD ELEMENTARY FEZ URBAN BEANS THE SPOT SALON GREAT CLIPS STARBUCKS HAIR MIDDLE EASTERN JAMBA JUICE CATALINA’S CHINA CHILI 7th Street BAKERY & DELI AZ Heart 16th Street 23rd Avenue PARK CENTRAL COCKTAILS 7th Avenue 15th Avenue 35th Avenue 19th Avenue MALL Hospital PHOENIX Metro Tech COLLEGE PHOENIX HILTON WALGREENS High School St. Joe’s Hospital Thomas Rd NORTH LENNY’S BURGERS Phoenix HIGH SCHOOL BARRIO CAFE ST. MARY’S Children's PINK SPOT COFFEE HIGH SCHOOL CORONADO Hospital Encanto & ICE CREAM CAFE Park SUNSHINE MARKET WHITE SAGE Enchanted HUMBLE PIE ESPRESSO AZ Heart Island HEARD PIZZA Institute Amusement WILLO MUSEUM Monterey RICE PAPER TUCK SHOP NEIGHBORHOOD Park Park DURANT’S EMERSON ASTOR HOUSE N ELEMENTARY PHOENIX THEATER ROYALE ARIZONA LOUNGE LA CONDESA GOURMET TACOS STATE FAIR HOB NOBS PHOENIX ART NOT TO SCALE MUSEUM SAFEWAY McDowell Rd INVESTMENT DRIVERS 8 SITE N NOT TO SCALE DESIRABLE WEST/CENTRAL PHOENIX LOCATION The area surrounding Highland 23 is in trending with the recently extended Metro Light Rail on Camelback Road extend- ing north up 19th Avenue and west to Midtown and Downtown Phoenix. With unparalleled access to both the freeway and transit networks, the site places residents within proximity to the dynamic Camelback, Midtown and Downtown Corridors offering access to the highest concentrations of employment and entertainment hubs in the Valley. EXCELLENT EXPOSURE TO REGIONAL EMPLOYMENT With a median age of 32, Phoenix is home to a large executive and professional workforce that compliments the busi- ness environment of the city. Due to its proximity to Camelback Road, Metro Light Rail and the freeways, 23Highland Towns will provide residents with excellent access to Midtown and Downtown Phoenix and the Phoenix Sky Harbor Inter- national Airport. The Camelback Corridor and Downtown Phoenix offer a combined employment base of over one million employees within less than a 30 minute commute. Education, healthcare, aerospace, government and defense employers are all nearby. Some of these major employers include Abrazo Central Campus, Blue Cross Blue Shield, Banner Good Samar- itan, Phoenix Children’s Hospital, Honeywell Aerospace, Phoenix Newspapers, Inc., Phoenix College, Grand Canyon University, Downtown Arizona State University & Phoenix Medical Campus. CONVENIENT ACCESS TO TRANSPORTATION Four of Arizona’s major freeways – the State Route 51, Black Canyon Interstate 17, Interstate 10 and the State Route 60 Grand Avenue – are within three (3) miles of the subject property, providing excellent access to locations across the Phoenix Metropolitan area. Highland 23 outstanding location offers residents immediate access to the Phoenix Metro bus system and is walking distance to a stop at 19th Avenue & Camelback Road to the recently extended-route METRO Light Rail. It currently provides access to northwest Phoenix, downtown Phoenix, Arizona State University (downtown and in Tempe with an enrollment of over 75,000 students), to Phoenix International Airport (the 6th busiest airport servicing over 40.3 million passengers annually), to the Mill Avenue