In a recent article published by the Arizona Republic, Jones Lang LaSalle’s Phoenix multifamily expert, John Cunningham, discussed the recent sale of Main Street Lofts at Verrado and what it means for the Phoenix multifamily market. John, along with JLL’s Charles Steele, represented DMB Associates in the $4.73 million sale to Waitt Verrado LLC, a newly-formed group made up of Nebraska-based WaittCorp Real Estate LLC and Arcadia Capital Group LLC of Phoenix.
Main Street Lofts features an urban design, with some units built above ground-floor retail stores such as Bashas’ grocery store, CVS Pharmacy, Bank of America and restaurants. The 9-year-old complex also has units in two- and three-story buildings.
The sale shows how much interest investors have in the “recovering” multifamily market, especially in the West Valley, said John Cunningham, executive vice president of Jones Lang LaSalle, which brokered the deal.
“It was a little unique for the West Valley, in that it was multifamily units over retail,” Cunningham said. “It’s very urban for the West Valley.”
Apartments also are rare for large master-planned communities such as Verrado, which typically feature neighborhoods of single-family homes. But Main Street Lofts has a good history of high-occupancy rates, Cunningham said.
Apartments are likely to become more popular as West Valley cities develop urban downtowns.
They appeal to the young urban professionals that West Valley cities would like to attract, Cunningham said.
He estimated that one apartment is needed for every nine jobs created.
If metro Phoenix created 50,000 to 60,000 new jobs a year, that would create the demand for 15,000 to 20,000 apartments in the next four years, he said.
Read the full story on the Arizona Republic’s website