Pennrose Breaks Ground on Phoenix Affordable Housing
This $28 million community for seniors is the second phase of a multi-part development.
Pennrose Properties has broken ground on Garfield Housing Phase II, a 60-unit affordable housing project for seniors in Phoenix. The development team includes the City of Phoenix, Butler Housing Co., CBC Financial Corp. and the Arizona Department of Housing.
The architect is Dekker Perich Sabatini, W.E. O’Neil serves as general contractor and Dunlap & Magee is the property manager. The community’s completion is scheduled for winter 2024.
Financing of the $28 million project encompasses:
- LIHTC equity and construction loan from Bank of America
- Permanent loan from Cedar Rapids Bank and Trust
- HOME loan from the City of Phoenix
- $500,000 in Congressional Program Funds.
The four-story community will encompass studio and one-bedroom apartments totaling 58,000 square feet. All residences are reserved for seniors of 55 and over, earning between 20 and 60 percent of the area median income. Common-area amenities are slated to comprise a fitness room, multi-purpose room, management suite and outdoor recreation area. The project will also provide supportive services facilitated by local nonprofit Greater Phoenix Urban League.
The project’s initial phase is Garfield Commons, a 100-unit affordable community for veterans. It was delivered in 2014 as the redevelopment of the historic Sacred Heart nursery home, built in 1958. Butler Housing Co. President & Owner Reid Butler stated in prepared remarks that the project’s third phase, slated for delivery in 2025, will create an additional 60 affordable units.
Phoenix’s robust development pipeline
Located at 1510 E. Portland St., the development is off Interstate 10 and roughly 3 miles from downtown Phoenix. It is also some 4 miles from the Phoenix Sky Harbor International Airport and less than 2 miles from the Banner – University Medical Center.
Year-to-date through July, 5,892 units came online in the Phoenix metro, accounting for 1.8 percent of existing stock, according to a Yardi Matrix report. At that point in time, the market had 37,606 units under construction, along with 92,000 units in planning an permitting stages. Fully affordable developments represented roughly 5 percent of the pipeline, while 94 percent belong to the Lifestyle segment, the same source shows.