Hines, alongside a national equity group as a joint venture partner, has purchased 11 acres of land that will be used to develop a 325-unit luxury multifamily community in north Phoenix. Construction will begin in the fourth quarter of 2020 with an expected completion date of the first quarter of 2022.
Located at the northwest corner of Happy Valley Road and 35th Avenue, the 318,000-square-foot community will offer 161 one-bedroom, 140 two-bedroom and 24 three-bedroom units spread throughout six three-story buildings. The community will also include another one-story building that will be used for the resident clubhouse and fitness center that surrounds the pool.
Robert Trujillo, managing director at Hines, said in prepared remarks that the new multifamily development would address the growing need for luxury communities in the submarket.
“The north Phoenix suburban submarket is outperforming most suburban areas in the Phoenix MSA relative to rents and occupancy,” Trujillo told MHN. “The Happy Valley corridor along I-17 has great transportation infrastructure, strong employers, good retail amenities and good schools.”
The property will be located near employers like USAA, manufacturing company W.L. Gore and healthcare provider Honor Health, according to Hines.
Hines’ latest project marks its second foray into the Phoenix market as the company broke ground on its first luxury multifamily recently. Hines announced plans to develop Adeline, a 25-story, 379-unit luxury community in downtown Phoenix back in November 2018.
MIXED-USE WITH MULTIFAMILY
Hines’ multifamily project will be a part of a larger commercial development being undertaken by retail developer Pederson Group. Pederson was also the seller of the 11 acres of land to Hines, according to Trujillo.
The developer known for building retail shopping centers around Arizona will construct seven acres of retail services in front of Hines’ multifamily development on Happy Valley Road. Jim Pederson, CEO of Pederson Group, said in prepared remarks that the company purchased the 23-acre site from Arizona State Land Trust and was looking for a multifamily developer to collaborate on its mixed-use project.