Hines has secured financing from Alliance Bank of Arizona for its 325-unit, 318,000-square-foot luxury multifamily project in north Phoenix and is set to begin construction on the 11-acre site. Completion is expected in 2022.
Hines is partnering with MetLife as equity investors in the development. Walker & Dunlop’s Phoenix office assisted with identifying financing options on behalf of the development team.
The project will consist of six three-story residential units with a mix of one-, two- and three-bedroom units. A separate one-story building will include a clubhouse and fitness amenity center surrounding the outdoor pool. The site, located at the northwest corner of Happy Valley Road and 35th Avenue, is part of a larger commercial development by Phoenix-based Pederson Group, which plans to develop 7 acres of new retail in front of the Hines multifamily development. Pederson has already begun making off-site infrastructure improvements on the land.
Robert Trujillo, managing director for Hines, said in a prepared statement the Pederson Group development will provide residents with a great retail mix. He called the site an exceptional location in an area with a broad base of amenities, including The Shops at Norterra, which is also located near the planned multifamily project. The property is close to Interstate 17, downtown Phoenix and many employers including USAA, W.L. Gore and Honor Health.
Dekker/Perich/Sabatini is the architect for the project, which is aimed at achieving LEED Silver certification from the U.S. Green Building Council. Modern Constructors is the general contractor.
Hines announced in March the Happy Valley property would be its second multifamily development in the Phoenix market. Hines broke ground in February on Adeline, a 25-story, 379-unit luxury multifamily community at 222. E. Jefferson St. in the city’s Sky Harbor submarket. Trujillo said Hines is continuing to identify more Phoenix multifamily development opportunities. The company noted the metro’s multifamily market has fared well despite the economic conditions created by the COVID-19 pandemic. Rents have remained stable and a significant amount of construction is continuing in the market.
Hines is currently building multifamily projects in other parts of the United States, including a 230-unit apartment community in New Haven, Conn., marking its first rental project in Connecticut. The international real estate firm also began development of a 326-unit upscale project in Oklahoma City in partnership with Humphreys Capital.