By Roxana Baiceanu
Although rent growth slowed in Phoenix during the first half of the year, it continues to outpace the national average. The apartment market’s affordability and a high job availability continue to play a decisive role in population growth, which keeps developers busy balancing the rising demand with the new supply.
Investment activity is strong in the metro, surpassing the $3 billion mark in the third quarter. While supply of Class A units remains sparse, investors have been focusing on repositioning the B and C units available in core markets.
The metro’s top 10 apartment owners, according to Yardi Matrix data, boast portfolios ranging from 3,200 to 10,500 units. The total number includes units within projects that are completed, units under construction, as well as planned and prospective.
10. Security Properties
The Seattle-based company has a diverse multifamily portfolio spread out across the United States. In Phoenix, the real estate investment firm owns and manages seven properties counting 3,231 units. Two of its largest ones, The Catherine Townhomes at Scottsdale and Canyon Creek Village, are located in Union Hills. The Catherine Townhomes, built in 1999, is a Class A Phoenix community, which includes 539 units. The resort-style amenities include a lagoon-like pool and a community clubhouse with a master chef’s kitchen, media center with a private screening room, conference room and fitness center.
9. ColRich Group
The West Coast investor has 12 properties in the Phoenix area, with most of them clustered in the South Scottsdale, South Mesa and North Mesa submarkets, and managed by Greystar. The largest community is Scottsdale Gateway at 2100 N. Scottsdale Road in the North Tempe submarket. It offers 582 studios and one- and two-bedroom units, as well as amenities including three swimming pools, a barbecue area and a business center. Rents per unit vary from $844 to $1,500.
8. Onni Group
Onni is a Canadian company that has been building communities in the United States and Canada for over half a century. Its portfolio south of the border includes properties in four major cities: Los Angeles, Seattle, Chicago and Phoenix. In Phoenix, Onni owns 3,453 units, representing more than half of its entire national portfolio. Capilano Properties manages all these assets. Central on Broadway at 2145 W. Broadway Road in the South Mesa submarket is Onni’s largest Phoenix community (480 units).
7. Capital Real Estate
The Phoenix area hosts 3,469 apartments by Capital Real Estate, the largest number of units in the company’s portfolio. Five of the 14 properties are luxury, with Springs at Alta Mesa in East Mesa and Pavilions at Arrowhead in Deer Valley being the most upper class. Located at 1865 N. Higley Road, Springs at Alta Mesa was completed in 2000 and offers 200 studio, one-, two- and three-bedroom units. Amenities include a complimentary library and java bar, a sauna and spa, two swimming pools, an executive business center and a clubhouse. Average rent is $1,113.
6. PrivatePortfolio Group
The Seattle-based company owns 12 properties in the Phoenix area, out of its total portfolio of 15 properties. All 3,524 units are luxury, managed by Pillar Communities. The biggest clusters are located in the North Scottsdale and Glendale submarkets. The company’s most recent portfolio addition is Elevation on Central at 4650 N. Central Ave. in Uptown. It offers 266 one- and two-bedroom units at an average rent of $1,196.
5. City of Phoenix Housing Department
The government institution made it to the top five list of apartment owners in Phoenix, where it owns the second largest number of properties in the area, 27. The majority of the 3,598 units, which are managed by Dunlap & Magee, are affordable. The largest community, Park Lee, located at 1600 W. Highland Ave. in Uptown submarket has 523 units.
4. Camden Property Trust
Based in Houston, the real estate investment trust manages more than 150 properties nationwide. Only 11 of them are located in the Phoenix area, totaling 3,998 units, all luxury. The largest one, Camden North End at 6800 E. Mayo Blvd., is under construction. Upon its completion in 2019, the Union Hills community will offer 1,069 units, a fitness center, a yoga studio, a swimming pool with lounge deck, a zen garden and a sky lounge.
The largest multifamily developer in Arizona owns and manages 11 high-end Phoenix properties totaling 4,102 units. Three of them, San Valencia in Gilbert, San Piedra in Superstition Springs and San Portales in North Scottsdaleare, are under construction. The company’s largest and the most upscale asset is San Sonoma. Located at 9010 S. Priest Drive in South Tempe, the community offers 590 luxury units, with average rents reaching $1,405.
2. Western Wealth Capital
The second Canadian investor on the list, Western Wealth, is based in Vancouver, but its entire 22-property portfolio is made up of Phoenix assets. The majority of the 4,328 units are clustered in the Glendale, Scottsdale and Mesa submarkets. The largest community, totaling 301 units, is Signature Place at 600 W. Grove Parkway in South Tempe. It is a gated property close to some of Tempe’s finest restaurants, offering its residents a variety of amenities such as poolside Wi-Fi, biking trails, whirlpool spas, steam rooms and a business center.
1. Weidner Investment Services
Phoenix’s top apartment owner is Weidner Investment Services. The company has 10,850 units and 30 properties in the area, representing one-third of its nationwide portfolio. The majority are luxury communities scattered across different parts of the metro and managed by Weidner Apartment Homes. The largest one, Red Mountain Villa, is located at 815 N. 52nd St. in Central East Phoenix. The community offers 768 units ranging from studio to four-bedroom and a variety of amenities. Average rents are $910.
Images courtesy of Yardi Matrix