By Angela Gonzales – Senior Reporter, Phoenix Business Journal
Construction has begun on a 402-unit multifamily development project in the West Valley.
Atlanta-based Wood Partners has teamed up with New York-based CP Capital US to build Alta 99th, which will be at the southeast corner of Campbell and 99th avenues in Phoenix, said Todd Taylor, managing director of Wood Partners.
“We have been and we continue to be committed to the Phoenix-Mesa market,” Taylor said. “We’re extremely bullish and we continue to look for new opportunities. We think the entire marketplace is open for business at this point in the cycle.”
Taylor estimates Wood Partners has invested more than $1 billion in metro Phoenix so far. The company has built and sold 3,000 multifamily units in metro Phoenix, and today has 2,000 in production and lease-up, he said.
“We raise capital on a project-by-project basis, both debt and equity,” Taylor said. “That said, CP is a fantastic partner and we expect to partner again with them on another development in the future.”
‘We’d like to do more’
Alta 99th will be the 23rd project the two companies have done together nationwide and the third in metro Phoenix, said Paul Doocy, co-head of CP Capital US. The companies worked on their first joint venture project in Atlanta in 1998.
CP Capital first entered the Phoenix market in 1995 and has invested in 13 projects here, he said.
“We’d like to do more,” Doocy said. “We’re trying to do projects in these different growth markets. Each project is typically done with a construction lender. A bank will provide a construction loan and we and the developer provide the rest of the capital.”
Construction on Alta 99th is expected to be completed by January 2024. Taylor expects rental rates for Alta 99th to range between $1,475 and $2,200.
Meanwhile leasing has begun on its 330-unit Alta Raintree apartments at Scottsdale Road and Loop 1010 as well as its 300-unit Alta Warehouse District at Seventh Avenue and Lincoln Street in downtown Phoenix.
Last summer, when the Alta Warehouse District was about 40% completed, it was burned down. An arsonist was caught, sentenced and convicted, and now is serving time, Taylor said.
“He was a vagrant,” he said. “It is unclear if he did it on his own or was paid by somebody. it was during the period time when there were a lot of protests. It’s not clear what his motives were. I don’t know his name but he’s in prison.”
That was a rough time, he said, but insurance came through and the project is back on track.
We started over and we’re on the precipice of opening,” he said. “We’re very excited about it.”