Summary

The development of 258 multifamily luxury units, lease-up to stabilization, and sale to an institutional owner.  The property is located in metropolitan Phoenix within the City of Chandler.  Phoenix has enjoyed extraordinary growth during the last twelve months, adding 63,000 new jobs.  Chandler is participating in the region’s growth as well. Intel, for example, recently announced the development of a $3 billion semiconductor plant which is expected to add an additional 1,000 jobs. Phoenix’s population has grown at a rate three times that of the national average.  According to available data and City officials there are no multifamily zoning cases pending in Chandler. Over the past four years, new supply of multifamily rentals has been on the decline. The upside potential is rooted primarily in the value created through the development process.  Building at cost is less than the market value of new luxury units. 

The execution of one of three different exit strategies is available.  The base case is the sale to an institutional investor looking for a stable long term investment.  Exit strategy number two is to sell to a condominium converter.  The third potential exit strategy is to convert and sell the units individually as condominiums.