As demand for housing alternatives continues to grow, Caliber is applying its expertise in multifamily development in creative ways to provide new solutions across the Valley. This spring, the firm completed funding for the first phase of our SP10 project, the conversion of a 160-room hotel into 104 apartment units with Class A amenities in the Ahwatukee Foothills of South Phoenix. Construction is set to begin in the fall.
Once the tower conversion is complete, Caliber will construct 44 townhouses behind the tower and 40 similar units in front. These single-family rentals will feature amenities targeting young professionals, families, work-from-home individuals and corporate housing.
Located at East Elliot and 51st Street, this multifamily complex is adjacent to the I-10, and a short drive to Intel’s $20-billion plant expansion in Chandler, as well as Tempe, Mesa and Central Phoenix. The project’s transformation of a pandemic-impacted hotel asset acquired in 2018 into a purpose-built housing complex will help meet the community’s growing needs. Housing demand in Metro Phoenix remains high due in part to the combination of continued high home prices and a sustained period of high interest rates. Realtor.com reports Phoenix has the third-largest gap between mortgage payments and rent.
At the same time, the number of distressed properties, particularly under-utilized office buildings or hotels, continues to grow in Maricopa County because of the rise in interest rates and lack of access to traditional debt. When persistently high construction costs are added to the mix, it’s clear that converting buildings versus constructing new ones is going to be one of the most promising strategies in real estate investment in the near term.
 Chris Loeffler is CEO of Caliber. |
Photos courtesy of Caliber
