Hines, the international real estate firm, along with a joint venture partner, recently acquired 11 acres in north Phoenix, where it plans to develop a 325-unit, luxury, for-rent residential property.
Hines’ multifamily property, located at the northwest corner of Happy Valley Road and 35th Avenue, will consist of six, three-story buildings. An additional one-story building will include a clubhouse and fitness amenity that surrounds the pool. In total, Hines will develop 318,000 square feet.
Hines broke ground only a short time before on its first luxury for-rent property in the Phoenix market: Adeline, which will be a 25-story, 379-unit high-rise community at the Collier Center in downtown Phoenix. The firm has 165 developments currently underway around the world.
“Hines jumped at the opportunity to work with our partners on this project on Happy Valley Road. Our luxury multifamily project is positioned well to meet the expanding need for suburban luxury multifamily options in the submarket,” said Robert Trujillo, managing director for Hines.
Hines’ property is part of a larger commercial development by the Pederson Group of Phoenix, which owns the adjacent existing 167,000-square-foot Stetson Village shopping center and has plans to develop seven acres of a mix of retail services directly in front of Hines’ multifamily development on Happy Valley Road. Established in 1983 by Jim Pederson, Pederson Group Inc. specializes in the development of Class A retail shopping centers in Phoenix and throughout Arizona.
“The Pederson Group acquired the 23-acre site from the Arizona State Land Trust,” says Jim Pederson, CEO. “We sought a quality multifamily developer to partner with us to create a fine mixed-use project.” The area is near high-quality employers such USAA, W.L. Gore and Honor Health, as well as The Shops at Norterra and Interstate 17.
The unit mix is expected to be: 161 one-bedrooms, 140 two-bedrooms, and 24 three-bedrooms. Rent prices haven’t been finalized yet. Plans call for the multifamily construction to start in the fourth quarter of 2020.