Caliber, a real estate investor, developer, and manager, announced completion of the funding for the first phase of the Company’s SP10 project, which will bring much needed new housing units to the Ahwatukee Foothills neighborhood in South Phoenix. The project will begin with the conversion of an existing 160-room hotel to 104 apartment units with Class A amenities. This will be followed by the construction of 44 low-density townhouse units in back of the tower complex and 40 similar units on acreage recently acquired by Caliber in front of the tower. The entire complex of single-family rentals (SFR) will share access to a full suite of amenities designed to appeal to young professionals and families, work-from-home professionals, and corporate housing. Demolition on the interior of the tower began in May.
Demand for housing rental options across the metro Phoenix area remains high as the cost of home ownership continues to be out of reach for many, with high interest rates only exacerbating the situation. According to a report by Realtor.com, the Phoenix area has the third widest gap between mortgage payments and monthly rent in the nation. Yet Arizona ranks as the 12th most expensive state for home and apartment rents.
Located at the southwest corner of East Elliot and 51st Street, Caliber’s new housing complex is ideally situated adjacent to the I-10 Highway, providing convenient access to the new $20 billion Intel semiconductor plant expansion in Chandler as well as neighboring Tempe, Mesa and the Central Phoenix business district. Less than four miles from Sky Harbor Airport, the location will also appeal to frequent business travelers. Ahwatukee was rated number one in Niche’s “Best places to live in Phoenix.” The area boasts close access to numerous hiking and biking trails, along with multiple parks catering to the outdoors lifestyle.
Chris Loeffler, CEO of Caliber, said, “Funding this project initiates the turnaround of a hotel asset we acquired in 2018 that was negatively impacted by the pandemic. Through the combination of investor equity and a new construction loan, we have fully capitalized the first phase of this built-for-purpose housing complex that will meet the growing housing needs of this vibrant community.”
“Our team continues to see a growing number of distressed or abandoned assets across the marketplace. In this case, we developed and are executing our own solution to an underperforming asset that we expect to provide a long-term, attractive return for our investors and partners,” Loeffler concluded.
The SP10 project is part of a Caliber-sponsored single asset syndication, which is continuing to accept new investors.
With panoramic views of South Mountain Park, the 104 apartments will include 23 studio, 80 one-bedroom and one two-bedroom units. Each apartment will have a full kitchen and washer/dryer units. The ground floor will feature Class A amenities with a focus on co-working space and club amenities designed for work-from-home residents. The 88 low-density townhome-style units surrounding the tower will average just over 1,200 square feet in size and some will include direct access to a garage.
Caliber expects to begin construction on the tower phase of this complex in the fall.
