Caliber’s Opportunity Zone Fund Portfolio to Redevelop Downtown Mesa, Breaks Ground

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Caliber, a vertically-integrated alternative asset manager and fund sponsor, broke ground yesterday for The Commons of Mesa, a 144-unit apartment community located in downtown Mesa will be held on February 23, 2022, at 10 am. The Commons of Mesa will contain 48 one-bedroom units and 96 two-bedroom units. It will be comprised of twelve buildings each with 12 units surrounding a common courtyard.

It is located at 140 W. 2nd Avenue Mesa, AZ 85201 (between S. Robson and South MacDonald). The development sits on a 2.54-acre lot that is walking distance to Mesa’s downtown district.

In 2017, Caliber began acquiring a series of buildings in downtown Mesa, and The Commons of Mesa is the latest addition to the portfolio. “We have a lot of activity going on with our Mesa projects,” says John Hartman, Chief Investment Officer of Caliber.  “We are under construction at 114 W. Main Street for a co-working space. Also, we have signed with a distillery company for 155 W. Main Street and we are finalizing leases with a malthouse, a bar arcade and a multi-offering food hall which will have a market hall, restaurants, and bars.” In five other buildings that Caliber owns in downtown Mesa, the company is in late discussions with a number of other retail and restaurant tenants.

Caliber is redeveloping 29 West Main Street as a mixed-use property with 10,000 square feet of retail on the ground floor and 90 apartments on the five floors above. Caliber is in the entitlement process for these apartments now with its partner Bob Worsley of Zennihome. “Given the national conversation about the lack of attainable housing, Caliber’s apartments at The Commons of Mesa and at 29 West Main Street, add 234 new apartments to Mesa and are hitting directly at the need that local governments across the country are trying to address,” continues Hartman.

Caliber is leading the effort to redevelop downtown Mesa. “We are pleased that Mayor John Giles, City of Mesa, is scheduled to participate in this groundbreaking event,” adds Hartman.

By national standards, Mesa is the 34th largest city in the US and one of the fastest growing cities. Its downtown area in particular, where The Commons of Mesa is located, has experienced a renaissance in the past few years with the introduction of a light rail service, redevelopment of its historic core, and the new Arizona State University Campus at Mesa City Center which will host more than a thousand students, faculty and staff and is set to open in spring 2022.

Mesa currently has an annual growth rate of 2% and has seen its population increase by 22.5% since the 2010 census. Future job growth in Mesa over the next 10 years is projected to be 47%, far outpacing the national average. “Now that The Commons of Mesa is under construction, we will start pre-leasing as soon we are far enough along,” concludes Hartman.

The total development cost for The Commons of Mesa is $42M. Caliber is raising equity for this project in the amount of $9M. Caliber is co-developing this project with Cardinal Capital Management, a vertically integrated real estate development company that specializes in multi-family and workforce housing.

Another strategic partner for The Commons of Mesa is Waltz Construction.

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