Toll Brothers JV Develops New Community in Phoenix OZ

Image by Jared Murray via Unsplash

A joint venture comprised of EJF Capital LLC and Toll Brothers Inc., through the Toll Brothers Apartment Living division, will develop Henri, a new multifamily community in the increasingly popular downtown district of Phoenix. Filling a 2.32-acre site in a Qualified Opportunity Zone, the project will provide 313 apartments.

Created under the Tax Cuts and Jobs Act of 2017, Qualified Opportunity Zones provide investors with potential tax benefits. The goal is to spark economic growth in low-income areas. Partnering with TBAL is EJF OpZone Fund I LP. When complete, the seven-story structure will deliver a blend of studio, one-, two- and three-bedroom apartments.

The building will be located in one of the few pre-automobile-era and walkable neighborhoods in the Phoenix MSA. The neighborhood borders the iconic Phoenix arts district Roosevelt Row. Future residents of Henri will be able to walk to dining, nightlife, cafes, art galleries, boutiques and other retail opportunities as well as entertainment venues. Henri will offer on-site parking and quick and convenient access to area freeways.

Swift growth

 In a prepared statement, an EJF official noted that Phoenix is among the fastest-growing metropolitan areas in the country. The metro has a substantial employment base, as well as a downtown district offering an eclectic array of dining, shopping and nightlife. Henri will be in a position to respond to the demand for new multifamily residences downtown, where the supply of new housing of any kind is constrained.

In the same statement, a TBAL official observed that the demographics and adjacency of downtown Phoenix leave the area well positioned for fast and vibrant growth. Last month, Toll Brothers announced that with a partner, it would develop three new communities in the Dallas-Fort Worth area.