DOWNTOWN PHOENIX The Adeline
Home is where the high rise is Downtown Phoenix seeing more multifamily development as people are drawn to urban core By STEVE BURKS
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hen Hines began looking into developing its first multifamily project in Arizona, there were several attractive markets to choose from. Luxury apartment projects like the one Hines wanted to deliver to the Valley were hot commodities across the Valley, from Tempe to Scottsdale to the Camelback corridor in Phoenix, even out in the rapidly growing West Valley. Hines has an international portfolio of projects and has recently found tremendous success in the Phoenix office market with its Offices at Chandler Viridian project and its 100 Mill project. Riding that wave of success, Hines became one of a growing list of developers to be lured into
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the Downtown Phoenix submarket, breaking ground in January on Adeline, a 25-story, 379-unit luxury for-rent residential high-rise community at the Collier Center in downtown Phoenix. “The state continues to have positive population and job growth and a segment of that wants to live in an urban environment,” said Chris Anderson, senior managing director and Arizona leader for Hines. “Once you determine demand, then it is what economics make sense for the risk you are taking and will a consumer pay for it. We believe they will, as downtown is in a real renaissance that has been experienced in many other cities this cycle.”
Hines is definitely not alone in taking a chance on multifamily developments in Downtown Phoenix. Since 2000, there have been 7,743 housing units built in Downtown Phoenix, according to Downtown Phoenix Inc., an economic development advocacy group for the Downtown Phoenix submarket. Of that 7,743 units, 2,353 were built in the previous three years (2017 through 2019) and included projects like The LINK PHX. That number will grow exponentially in the next two years, as there are 4,143 units under construction currently, nearly 2,700 of those units are expected to come online in 2020. Adeline will add to that total when it is completed in 2021. Hines began work on Adeline at a busy time for the market, with labor and materials costs on the rise. But with the revitalization of the Downtown Phoenix market in
