25 apartment projects could add more than 5,000 units in West Valley, Phoenix

25 apartment projects could add more than 5,000 units in West Valley

At least 25 apartment projects on West Valley's suburban horizon

Derek Hall, Arizona Republic
Published 6:00 a.m. MT Nov. 28, 2018

At least 25 apartment projects are planned or going up across the West Valley as the region responds to increased demand for rentals.

The new developments could add more than 5,000 units in the region as rents continue to rise throughout the Valley, pushing more renters to the suburbs in search of affordable rates.

The average monthly rent across metro Phoenix was $1,083 in the third quarter, a year-over-year increase of 6.7 percent, ABI Multifamily's quarterly report shows.

Many factors are fueling demand, including higher-than-expected population growth and rising interest rates, said Thomas Brophy, research director for Phoenix-based ABI Multifamily.

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Rent is more affordable in the West Valley compared with other points east, but the region has lagged in multifamily development even as the Phoenix area is in the midst of an apartment building boom.

Glendale led the nation in rising rent in April 2017 with an 11.5 percent increase in average rent when compared with the previous month, a report from national real-estate research firm ABODO shows. It was the only big Valley city with no new apartments under construction at the time.

The city has added more than 400 rental units since, and two projects are planned near the Westgate Entertainment District that will add another 613 units. One of the projects is in Phoenix.

With occupancy rates above 95 percent, the pipeline of new rentals won't be nearly enough to meet demand, Brophy said.

"When you look at Glendale, which has seen less than 500 units come on line, there's no inventory to bring that occupancy rate back down," he said.


Goodyear leads way

Goodyear leads the West Valley in new multifamily developments with more than 2,000 rental units in planning and construction.

The city of nearly 80,000 residents had the region's highest median household income in 2015 and continues to build its employment base. Microsoft Corp.'s recent purchase of approximately 259 acres in Goodyear has fueled speculation that the tech giant could eventually add even more jobs in the city.

https://www.gannett-cdn.com/presto/2...unds&auto=webpPebbleCreek Marketplace Apartments plans to offer 269 units at the corner of 159th Avenue and McDowell Road in Goodyear. (Photo: City of Peoria)


The city's rapid growth and changing consumer habits have fueled the flood of new multifamily developments, Goodyear Mayor Georgia Lord said.

"It doesn't matter what age you are," Lord said, "there are people out there now who don't want the lawn anymore."

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Other cities have been hesitant to approve new multifamily developments, partly because of a negative perception of what apartments might bring to the suburbs.

There was a public outcry in Surprise in 2017 over a proposed "high-density" rental development. More than 100 people expressed concerns to the City Council that apartments would lower home values and increase traffic and crime in the city. More than a year later, the project is under construction at Reems and Waddell roads.

It's a perception Peoria Mayor Cathy Carlat said her city hopes to change.

"We want to protect property values for people who have homes, and we want to bring in the types of apartments and communities that add value to homes," Carlat said.

Peoria is second to Goodyear with 1,139 rental units planned or under construction.

In Peoria, the building of the units is part of a strategy to attract and retain Millennials and members of Generation Z, who are "looking for a variety of housing models," Carlat said.

"There is a traditional suburban model that people no longer want out of the suburbs," Carlat said. "They are looking for different options. It's not just a single family home on a large lot."

What's Coming?

Here's a look at some of the rental developments planned or underway in the West Valley.

Glendale: 613 units

• Christopher Todd at the Stadium: 99th and Missouri avenues, Phoenix, 313 units under construction near Westgate.
• Camelback 95: Camelback Road and Loop 101, Glendale, 300 units planned.

Peoria: 1,139 units

• T83 Apartments: 8175 W. Ludlow Drive, 183 units under construction.
• The Landmark on 67th: 67th and Olive avenues, 56 units planned.
• Point 81: 11430 N. 81st Ave., 13 units planned.
• Sunrise Promenade at Lake Pleasant: 24645 N. Lake Pleasant Parkway,140 units planned.
• Paradise at P83: 75th Avenue and Paradise Lane, 352 units planned.
• Avilla Lago: Beardsley Road and 99th Avenue, 120 units planned.
• Parc at Roundtree Ranch: 83rd and Olive avenues, 275 units planned.

Avondale: 634 units

• Avalon Apartments: 103rd Avenue, 400 units under construction with some already leasing.
• Cerro Vista: Van Buren Street east of Fairway Drive, approximately 234 units planned.

Surprise: 761 units

• Avilla Meadows NexMetro Community: Reems and Waddell roads, 127 units under construction.
• Christopher Todd Collection at Marley Park: Old Oak Lane and Whisperwood Drive, 173 units under construction.
• Christopher Todd Collection on Mountain View: Mountainview Boulevard and Carlin Drive, 217 units planned.
• Hancock Communities at Rancho Trugold: Cotton Lane and Sweetwater Avenue, 244 units planned.

Tolleson: 160 units

• Desert Jewel Apartments: 96th Avenue and Pierce Street, 160 units under construction.

Goodyear: 2,192 units

• Hudson Commons: Van Buren Street and Estrella Parkway, 183 units planned.
• CTC at Estrella Commons: Estrella Parkway and Van Buren Street, 286 units planned.
• Goodyear 145 Apartments: 145th Avenue and McDowell Road, 188 units planned.
• Villages at PebbleCreek: West Virginia Avenue and PebbleCreek, 116 units planned.
• Estrella Commons Apartments: Fillmore Street and Estrella Parkway, 352 units planned.
• CTC at Canyon Trails: 173rd Avenue and Van Buren Street, 261 units planned.
• PebbleCreek Marketplace Apartments: 159th Avenue and McDowell Road, 296 units planned.
• Liv Goodyear: 15361 W. Virginia Ave., 326 units planned with some already leasing.
• Avilla at Centerra: 15390 W. Centerra Drive N., 184 units planned with some already leasing.

Goodyear could not provide detail on whether the projects were under construction yet.

https://www.azcentral.com/story/news...on/2057026002/