Phoenix, Arizona – ABI Multifamily is pleased to announce the $24.25 million / $151,563 Per Unit / $204.66 per square foot sale of Pointe Vista Apartments, a 160-unit multifamily apartment property located in Phoenix, Arizona.

Built in 1981, the property is constructed of wood frame and stucco with flat roofs. The unit mix consists of 71 one-bedroom / one-bath units, 36 two-bedroom / one-bath units, 33 two-bedroom / two-bath units, 8 two-bedroom / two-bath units with den and 12 three-bedroom / two-bath with a total average of 741 square feet per unit. Each unit is individually metered for electricity and features individual HVACs and hot water heaters. Interior amenities include Patio / balcony, ceiling fans, fireplaces (select units), walk-in closet (select units), extra storage space, and high-speed internet / cable access in addition to kitchens equipped with refrigerators, dishwashers and garbage disposal. Each unit is equipped with a stackable washer / dryer. The community also provides its residents with a swimming pool and spa, three laundry facilities, fitness center, business center, basketball court, barbecue / picnic area and dog walk.

Residents enjoy direct access to all areas of the Phoenix Valley by way of the Piestewa Freeway (State Route 51), Papago Freeway (Interstate 10) and the Pima Freeway (Loop 101). In addition, there are numerous dining and entertainment options in close proximity to the property, including the rapidly gentrifying Christown Spectrum Mall, a 1.2MSF retail power center anchored by key tenants such as: Super Target, Walmart, Harkins Theatres, and JCPenney.

Alon Shnitzer, Senior Managing Partner at ABI, said, “Pointe Vista Apartments represents a great value-add opportunity. Both the interior and exterior of the property can be improved to maximize its revenue potential.”

Shnitzer added, “Despite the pandemic, the income at the property continued to stay stable or even rise, showing its resilience and potential.”

ABI Multifamily’s Alon Shnitzer, John Kobierowski, Rue Bax, Doug Lazovick and Eddie Chang represented the buyer and the seller in the transaction.

The Buyer is Rise48 Equity, a Phoenix-Based Real Estate Firm. This is Rise48 Equity’s 7th acquisition in the Phoenix market since 2019. Zach Haptonstall, CEO and Co-Founder of Rise48 said, “Pointe Vista Apartments offers a great opportunity for us to renovate interiors and re-brand the exterior in order to drastically increase rents. This is a conservative business plan with a lot of upside for our investors. We’re excited to get to work.”

The seller is based in California.

Developer NexMetro Communities will bring 263 luxury rental units to the North Peoria area

Scottsdale, Ariz. – Land Advisors Organization’s Metropolitan Phoenix office is pleased to announce the sale of approximately 13 acres within the Mystic at Lake Pleasant Heights community located in Peoria, Arizona.

Arizona-based NexMetro Communities, a leading developer of luxury leased-home neighborhoods, purchased the site for nearly $3.25 million and plans to begin constructing phase one of the community, which will comprise 263 luxury multifamily units.

NexMetro is the third builder to land in this nearly 1,090-acre community being developed by a partnership between Avanti Properties Group and Voyager Investment Properties LLC, led by Principals Mark Voigt and Dave Rogers.

The property is located on El Mirage and Westland roads, east of the first phase of 423 lots in the Mystic at Lake Pleasant Heights Community where Lennar Homes and Taylor Morrison are scheduled to start new homes sales this month.

The Mystic community is also located immediately north of the award-winning and highly-successful community of Vistancia. The ideal northwest Peoria location provides future residents with access to many desirable lifestyle amenities and outdoor activities at Lake Pleasant Regional Park and is just minutes from the Loop 303 for easy connectivity to the surrounding areas.

Greg Vogel, Mike Schwab, Bret Rinehart, Ryan Semro, and Ben Heglie, who specialize in home builder developments and master-planned communities throughout Arizona for Land Advisors Organization’s Metropolitan Phoenix office, represented the seller in the transaction. The firm continues to advise clients on this product type and is working on several similar projects in the area.

By: Elliott D. Pollack & Company

A quick analysis of important economic data released over the last week

Last week saw a new U.S. President inaugurated followed by a flurry of new executive orders, many of which sought to undo the previous administration’s policies. The orders address a broad range of topics. Roughly half of the orders are meant to address the COVID-19 pandemic such as testing capacity, vaccine supply and distribution, the development of therapeutics, PPE supplies, a mask wearing campaign, and other policies. Other topics of the executive orders addressed the border wall, membership in the World Health Organization, rejoining the Paris climate accord, canceling the Keystone XL pipeline, and several reversals of the former President’s immigration policies.

In addition, President Biden is championing another round of stimulus estimated at $1.9 trillion. Common elements among several different proposals include extending unemployment benefits beyond last month’s $900 billion stimulus package, another direct stimulus payment to residents for $1,400 per person (meant to “top off” the previous $600 payment to the promised $2,000 payment), and additional financial support to purchase and accelerate distribution of the vaccine across the country. Debate over whether or not this is enough or even too much stimulus will dominate the news cycle until some form of the package is passed.

We’ve read the debates regarding stimulus payments and whether they are going to those who may not need it based on their employment status and household income level. It really depends on the goal of the stimulus. Is it intended to provide financial relief for those who lost income and fell behind? Or is it meant to do what it has been nicknamed and “stimulate” the economy? For those in financial stress, the stimulus payments are welcomed relief, especially families with children who receive added funds. For those still employed and in good financial standing, based on the historic savings rate of households, it is very likely that they will take their stimulus check and pump it back into the economy. So, the answer lies in what the goal of the package is for. If it is meant for those in dire straits, then the package must be far more targeted and focused on unemployment benefits, financial aid, and late payment or debt relief for those who can certify a need. If it is meant to provide a jolt to economic activity, then it should do just that. The consequences of paying for it will be another discussion.

In terms of economic data last week, nationally, we witnessed unemployment claims come down somewhat, the private housing market did exceptionally well and ended its best year since 2006. Not surprisingly, builders remain confident. Existing single family home sales also did very well, with over 6% growth in volume in 2020 and over 9% growth in the median sales price.

Here in Arizona, as expected, the year ended with negative job growth, the first year of job losses since 2010. The leisure and hospitality industry suffered the largest of those losses. There were only a few industries with total job gains. One of those, construction, is experiencing a bright spot in the homebuilding sector. New home sales in Greater Phoenix were up over 21% and permits rose 13%. In Tucson, new homes sales increased nearly 8% for the year and permits rose by over 17%.

U.S. Snapshot:

• Initial claims declined by 26,000 to 900,000 in the week ending January 16. Last week’s level is similar to the levels last seen in August 2020.
• The private housing market finished its best year since 2006 according to the U.S. Census. The preliminary 2020 figures show total permits at 1.45 million (1.84 million in 2006) and single family permits were up 13.3% from a year ago.
• The NAHB/Wells Fargo Housing Market index decreased for the second consecutive month from the all-time high in November. The January (83) level remained above a year ago (75). Any reading above 50 means builders see market conditions as favorable.
• Single family existing home sales reached 5.1 million up 6.3% according to preliminary 2020 data from NAR. Median sales price increased 9.2% to $299,900.

Arizona Snapshot:

• Preliminary employment data for 2020 was released last week for the state and its metros. For the state as a whole, an estimated 66,600 jobs were lost (-2.3%) in 2020. Only three sectors grew including Trade, Transportation & Utilities (8,800 jobs), Financial Activities (1,400 jobs) and Construction (600 jobs). The sector that suffered the biggest losses was Leisure and Hospitality (46,900 jobs). December over December the picture is even grimmer with 80,300 jobs lost with only Trade, Transportation and Utilities growing in that time period. This is the first year of job losses since 2010.
• Greater Phoenix saw similar results as the state. The metro was down 42,500 jobs or 2.0% with 35,200 coming from the Leisure and Hospitality sector. Job growth occurred in Trade, Transportation & Utilities (6,800 jobs), Education and Health Service (1,900) Financial Activities (1,700 jobs) and Construction (1,000 jobs).
• Greater Tucson was down 11,200 or 2.9% below the levels in 2020. Job growth in Trade, Transportation & Utilities (1,800 jobs) and Construction (300). Leisure and Hospitality and Professional and Business Services had the biggest job losses 4,600 and 3,200, respectively.
• The Greater Phoenix saw increases for permits and new home sales while resales held their own with small contraction according to RL Brown. For the year, new homes sales were up 21.3%, permits 13% and resales were down 0.2%. Buyers continue to take advantage of the low mortgage rates. Looking at the December data, median sales price for resales and new home sales increased 18.4% and 2.0%, respectively. Again the lack of resale supply continued to push prices higher in the metro.
• Greater Tucson had their best year since 2007 for permits and new home sales according to RL Brown. In 2020, new home sales increased by 7.9% and new permits by 17.3%. Based on what we have seen in the last few months, all indicators point to the momentum in housing continuing into 2021.

Elliott D. Pollack & Company (EDPCo) offers a broad range of economic and real estate consulting services backed by one of the most comprehensive databases found in the nation. This information makes it possible for the firm to conduct economic forecasting, develop economic impact studies and prepare demographic analyses and forecasts. Econometric modeling and economic development analysis and planning are also part of our capabilities. EDPCo staff includes professionals with backgrounds in economics, urban planning, financial analysis, real estate development and government. These professionals serve a broad client base of both public and private sector entities that range from school districts and utility companies to law firms and real estate developers.

For more information, contact Elliott D. Pollack & Company at 480-423-9200.