January/February Apartment News 2021

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JANUARY/ FEBRUARY 2021 The official publication of the Arizona Multihousing Association

2021

AMA Board

Ambitious Goals, Aspirations & Inspirations page 5

Board Chair letter Embracing our industry’s past, present and future

Legislative look-ahead What bills will affect the industry in 2021?

Construction update As population grows, so does number of new units

page 3

page 8

page 15


Apartment News | January/February 2021

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azmultihousing.org


Goals for 2021, beyond will ensure strength, success of AMA members

818 N. 1st St., Phoenix, AZ 85004 phone: 602-296-6200 fax: 602-296-6178 web: azmultihousing.org

I am honored and excited to be taking on the role as 2021 Board Chair as the Arizona Multihousing Association begins its 54th year of being the voice and advocate for the state’s apartment industry. I have set some ambitious goals for 2021, and with the support of our members and leadership, I have no doubt we will achieve them.

2021 AMA BOARD OF DIRECTORS

Gloria Munoz Maricopa County Housing

EXECUTIVE COMMITTEE Chair, Reid Butler Butler Housing Company

Lisa Osborn-Warne Priderock Capital Partners

Vice Chair, Scott Hines PEM Real Estate Group

My goals are both aspirational and inspirational.

Treasurer, Linda Coburn NexMetro Development

AMA provides leadership for Arizona business and government. In that

Secretary, Tina Schreiber Greystar Real Estate Partners

regard, AMA will continue to be the

Imm. Past Chair, Kim Pacheco Scotia Group Management

“go-to” voice for Arizona housing is-

AMC Exec., Sue Campbell Redi Carpet

sues. AMA has been among the top industry organizations in Arizona and

Mark Schilling MEB Management Services

Crystal Sevilla Weidner Apartment Homes

Michelle Sinclair Evergeen Devco, Inc.

Lesley Brice MC Residential

Dallin Tippets Rainforest Plumbing & Air

Dahnn Brown Camden Property Trust

Kris Tomlinson Cushman & Wakefield

Luz Bruscini MEB Management Services

David Vanek Greystar Real Estate Partners

forward to our shared future.

John Carlson Mark-Taylor Residential

Luis Verger Shelton Residential

With more than 100,000 new residents moving into the state each year,

Crystal DeHoag Bella Investment Group

Christopher Walker Law Offices of Scott Clark

Anna DiSabato Dunlap & Magee

Wendy Weiske Gorman & Company

new apartments each year to meet the demand.

Kohl Eisenhour Avenue 5 Residential

Debbie Willis P.B. Bell Companies

Preparing for our future will require us to innovate, invent, mentor and

Natalie Evans CoStar/Apartments.com

Nicole Wray Greystar Real Estate Partners

Kimberly Fitch Nicolosi & Fitch, Inc.

Rhonda Wooder Stratton Restoration

Adam Greco Burns Pest Elimination

Chris Worrell GPM Landscape, Inc.

Kristin Heiple Baron Property Services

Mark Zinman Zona Law Group

we will embrace our industry’s past,

present and future. This is my fifth decade in the Arizona Housing Industry (from the 1980s, 1990s, 2000s, 2010s, and now 2020s). My hope is to help provide a bridge from our industry’s past as we move

our industry will continue to be an economic engine. That translates to more than one million new Arizonans this decade, and about 10,000

build partnerships. As demographics continue to change in Arizona, we will be a multi-generational and high-value association. I have specific and measurable goals as well. As an industry that is vital to the state’s economy, we must ensure that

Kyle Simplot Accounting & Operations Manager kyles@azmultihousing.org Phone: 602-296-6203 Melissa Lanouette Events & Education Manager mlanouette@azmultihousing.org Phone: 602-296-6205 Lisa Garcia Membership & Operations Coordinator lgarcia@azmultihousing.org Phone: 602-296-6207 Amanda Perkumas Tucson Area Executive Assistant aperkumas@azmultihousing.org Phone: 520-323-0643 Jonathan Baldenegro Events & Education Coordinator jbaldenegro@azmultihousing.org Phone: 602-296-6209 Christina Desaubin Communications & Marketing Manager cdesaubin@azmultihousing.org Phone: 602-296-6204 Jenica Hickey Member Relations Coordinator jhickey@azmultihousing.org Phone: 602-296-6214

Robert Hicks Greystar Real Estate Partners

there is no rent control and no more moratoriums in Arizona. To battle

Stacey Hogue Greystar Real Estate Partners

these issues, we need to maintain our Better Government Fund at $1 million. We must also engage in more elections and on a larger scale.

Michelle Howland Blue Steel Security Services

This organization is all about our members. My goals are to focus on

David Kotin Kay-Kay Realty

regular member engagement at events and education as well as on

Sharon Kuhlman Shelton Residential

the committees. I would also like to see enhanced membership mar-

Dustin Lacey Mark-Taylor Residential

keting material and work with NAA on rolling our employee benefits to member companies.

Pam McCarthy Fairfield Residential

As I take the wheel of Board Chair for 2021, I ask you to join me and

Omar Mireles HSL Asset Management

put 2020 in the rearview mirror.

April Morris Cox Communications

– Reid Butler, AMA Board Chair, Butler Housing Company

Apartment News | January/February 2021

Erika McDowell Finance Director emcdowell@azmultihousing.org Phone: 602-296-6210

Christine Shipley Dunlap & Magee

Greg Stobart MG Properties

Reid Butler AMA Board Chair

Lauren Romero Tucson Area Association Executive lromero@azmultihousing.org Phone: 520-323-0643

Stacey Searl Weidner Apartment Homes

Krisanne Beckstead Picerne Real Estate Group

less opportunities for our members,

Sarah Fluke Deputy Director sfluke@azmultihosusing.org Phone: 602-296-6212

Lisa Rosenfeld HSL Asset Management

Justin Steltenpohl P.B. Bell Companies

As we enter a new year filled with end-

Courtney Gilstrap LeVinus President and CEO clevinus@azmultihousing.org Phone: 602-296-6200

John Rials Western Wealth Capital

BOARD OF DIRECTORS Elizabeth Beaulieu Quarterpenny Management

will continue to be.

AMA STAFF

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AMA CONTRACTORS CAPITOL CONSULTING GOVERNMENT RELATIONS Courtney LeVinus Government Affairs Consultant courtney@azcapitolconsulting.com Phone: 602-712-1121 Jake Hinman Government Affairs Consultant jake@azcapitolconsulting.com Phone: 602-712-1121 Bastien Andruet Municipal Lobbyist bastien@azcapitolconsulting.com Phone: 602-712-1121

PUBLIC RELATIONS/ COMMUNICATIONS MadridMedia Peter Madrid Owner, MadridMedia ptmadrid1975@gmail.com Phone: 480-495-3762 Leibowitz Solo David Leibowitz Owner, Leibowitz Solo david@leibowitzsolo.com GRAPHIC DESIGN James Dempsey Design james@jdempsey.com Phone: 602-510-5508

azmultihousing.org


Leadership is what drives our organization in good, bad times

AUGUST - SEPTEMBER 2020 NEW AMA MEMBERS The AMA would like to welcome all new members from October and November. We are excited to work alongside you to make our association and industry the best.

Leadership is defined as “… the action of leading a group of people or an organization.” The AMA, our Board of Directors and our members each took huge leadership roles in 2020, a year we all hope to never again witness.

members with education classes and fun and engaging virtual events. A heartfelt thanks goes out to our 2020 Board and Board Chair, Kim Pacheco, for their leadership in 2020. In her first Letter from the Chair in Apartment News, Kim said: “I believe that 2020 is going to be a year to remember in AMA’s history.”

remember. Not because of the eco-

• Global Construction

• Qleen

• SealMaster - Arizona (Phoenix)

• GROW Learning Management System

• Rimside Village LLC

• Four Rivers Recruiting (Phoenix)

• G&B Investment Properties

the January-February 2020 issue of

As we look back, it was a year to

• Wagner Pest Solutions

• Risk Assessment Group

• P.P.M.S. Security

The AMA staff displayed leadership by continuing to provide our

Courtney LeVinus AMA President & CEO

nomic devastation wreaked on our industry by the pandemic, but because we held our ground as an industry, as organization and we rallied around and supported each other.

• Bassham Properties

• Owner

• RangeWater Real Estate

• Green Leaf Partners Management

• Sedona Ridge

• Acero Cooley Station

• 23 Palms

• Nine90 Apartments

• The Scottsdale Grand

• Ten50 Apartments

• Camden North End ll

• Avilla Enclave Apartments

• Tides on Main

A goal in 2020 was to raise $1 million for our Better Government Fund.

• Tides on Dunlap

We reached and surpassed that goal. We started 2020 with more than

• Tempe Station

288,000 units in membership and enter 2021 with a little more than 300,000. That’s 100,000 more than 10 years ago.

• Escobedo at Verde Vista II

As we enter 2021, leadership will again be at the forefront of our

• Madison Heights II

organization. The AMA team is shifting to hybrid virtual and in person education classes for 2021. We will return to live events in a safe manor,

• The Addison Apartments

with our key signature events scheduled for the last two quarters of

• Solterra on 5th

the year. We look forward to the leadership Reid Butler will provide

• Avilla Lago • Coolidge Place Senior Apartments • Copper Stone Apartments • Arcadia Lofts • Aiya • Cottages at Tucson • Tides at Papago

• Plaza West

as 2021 Board Chair.

• Bath Fitter

• Elux at Norterra

• Western Fence

Guidance. Direction. Influence.

• Pro One Security PLLC

That’s true leadership.

• DISH Network • Adivo Construction – Courtney LeVinus, President & CEO, Arizona Multihousing Association

Apartment News | January/February 2021

ON THE COVER Greystar hosted the December AMC event at its community, The Ryan, in the heart of Downtown Phoenix at 188 E. Jefferson. The Ryan stands 17 stories high, features 332 units and a Fry’s supermarket. 4

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AMA announces 2021 board members Kristin Heiple, Baron Property Services; Robert Hicks, Greystar

AMA announced the election of its 2021 officers

Real Estate Partners; Stacey Hogue, Greystar Real Estate Partners;

and board members at a virtual board meeting

Michelle Howland, Blue Steel Security; David Kotin, Kay-Kay Realty; Sharon Kuhlman, Shelton Residential; Dustin Lacey, Mark-Taylor;

in December.

Pam McCarthy, Fairfield Residential; Omar Mireles, HSL Asset Reid Butler, Owner, Butler Housing

Management; April Morris, Cox Communications; Gloria Munoz,

Company, is AMA’s 2021 Board Chair.

Maricopa County Housing; Lisa Osborn-Warne, Priderock Capital

Joining Butler on the leadership group

Partners; John Rials, Western Wealth Capital; Lisa Rosenfeld, HSL

are Scott Hines, Vice Chair, PEM Real

Asset Management; Mark Schilling, MEB Management Services.

Estate Group; Linda Coburn, Treasurer,

Stacey Searl, Weidner; Crystal Sevilla, Weidner; Christine Shipley,

NexMetro Development; Kim Pache-

Dunlap & Magee; Michelle Sinclair, Evergreen Devco, Inc.; Justin

co, Immediate Past President, Scotia Group Management; and Sue

Steltenpohl, P.B. Bell Companies; Greg Stobart, MG Properties;

Campbell, AMC Executive, Redi Carpet.

Dallin Tippets, Rainforest Plumbing & Air; Kris Tomlinson, Cushman

Board members for 2021: Elizabeth Beaulieu, Quarterpenny Man-

& Wakefield; David Vanek, Greystar Real Estate Partners; Luis Verger,

agement; Krisanne Beckstead, Picerne Real Estate Group; Lesley

Shelton Residential; Christopher Walker, Law Offices of Scott Clark;

Brice, MC Residential; Dahnn Brown, Camden Property Trust; Luz

Wendy Weiske, Gorman & Company; Debbie Willis, P.B. Bell; Nicole

Bruscini, MEB Management Services; John Carlson, Mark-Taylor

Wray, Greystar Real Estate Partners; Rhonda Wooder, Stratton

Residential; Crystal DeHoag, Bella Investment Group; Anna DiSabato,

Restoration; Chris Worrell, GPM Landscape; and Mark Zinman,

Dunlap & Magee; Kohl Eisenhour, Avenue 5 Residential; Natalie

Zona Law Group.

Evans, CoStar/Apartments.com; Kimberly Fitch, Nicolosi & Fitch, Inc.; Adam Greco, Burns Pest Elimination.

BGF UPDATE $1M GOAL

$1.046 MILLION RAISED

1 million reasons to keep supporting BGF The AMA Better Government Fund (BGF) hit and surpassed its $1 million goal in 2020 at $1.046 million. The BGF is an industry defense fund used to independently support candidates and initiatives and to help support policies that strengthen the apartment industry in Arizona. Click here

BGF

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Apartment News | January/February 2021

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AMA Happenings

Lyceum Leadership shows and shares warmth Each year the AMA Lyceum Leadership class is required to do a service project as part of the program. Typically, it organizes a group service project at a food bank, cleaning up

Golf tourney and a drive-in movie

a neighborhood or volunteering at UMOM. Because of the COVID-19 pandemic, the group had to pivot and get creative. Knowing our community has been impacted hard this year,

The theme for AMA in late 2020 was “The show must go on.”

they decided to turn their efforts towards a blanket drive to

That was true in two regards as AMA continued to sponsor events

benefit local charities in Phoe-

for its members despite COVID-19.

nix and Tucson.

On Oct. 30, a full field enjoyed the 25th Annual AMA/Cox Par Tee Golf

The group collected 97 new

Tournament. Starfire Golf Club again provided an excellent venue for

blankets for Tucson Homeless

the event.

Connect and 489 for UMOM

It was a night of family fun on Dec. 5 when

New Day Centers in Phoenix

AMA hosted its first Drive-In Movie Night.

(total of 586).

AMA members and their families were

Congratulations to our 2020

treated to a good old-fashioned drive-in

Lyceum Leadership Class for

movie in the parking lot adjacent to the

completing an AMAzing ser-

AMA building.

vice project. A special thanks

A large screen was provided and those

to all of our members who

who attended saw holiday favorite “Elf.”

helped us spread the warmth this year.

Yes, the show must go on – and it did.

Apartment News | January/February 2021

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Legislative Update

A New Year Brings New Opportunity

The AMA begins its push to build more housing, secure rental assistance and oppose further moratoria in 2021 By Jake Hinman and Bastien Andruet

With the dust settled on the 2020

the AMA is able to pick up where it left off

President Ronald Reagan, made permanent

election, the AMA, as with many

prior to COVID-19. In 2021 it will push for

by President Bill Clinton, and has been re-

the establishment of a state LIHTC program,

sponsible for developing millions of housing

others, was surprised to find that

secure further rental assistance for property

units in the decades since. The bill received

the next legislative session will

owners experiencing a loss of income and

wide bipartisan support, passing 45-15 in the

oppose any further efforts at the state and

state House, and was on its way to passage

federal levels to impose another eviction

through the state Senate when COVID effec-

moratorium.

tively killed all remaining bills for the session.

look quite familiar. After nearly every politico and pundit predicted that Democrats would flip the state House of Representatives, Republicans managed to hang on to their majorities in both the state House and the state Senate, only losing one Senate seat.

LIHTC returns

One thing the 2020 election taught folks was

As you may recall, the AMA, in partnership

that the issue of building affordable housing

with Rep. Jeff Weninger (LD17), had intro-

is bipartisan, and it is an issue the AMA ex-

duced a bill to the previous Legislature that

pects should receive widespread support yet

intended to establish a state Low Income

again in 2021.

Housing Tax Credit (LIHTC) meant to develop a greater supply of affordable housing across

This is of particular significance as Arizona

the state. Over half of all U.S. states, both red

saw an influx of more than $40 million into

and blue, currently have established LIHTC

legislative races – most of which originated

programs which have proven to be incredi-

from out of state and was intended to help

bly effective and generating more affordable

Democrats flip key seats.

housing development.

Now that many of the same, and even a few

The AMA’s bill mirrored the federal LIHTC

new players are returning to the state house,

program, which was established in 1986 by

Apartment News | January/February 2021

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Rental assistance has proven key As has been the case since March, the AMA has been holding local and state government accountable during these unilateral eviction moratoria by fighting to secure more than $128 million in rental assistance and foreclosure prevention funds for property owners and managers. Additionally, the AMA has –Continued on next page

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been working hard to remind policy makers that eviction moratoria

Gov. Doug Ducey with real-time industry numbers demonstrating the

accomplish nothing other than kicking the can down the proverbial

lack of need for another extreme and costly measure. While some

road, and that the most effective aid for rental residents financially

municipalities have attempted to take advantage of the crisis and

struggling is to provide more rental assistance dollars to supplement

unilaterally reform landlord-tenant law, the AMA has successfully held

depleted funds across the state.

off any efforts to extend the eviction notice period.

At the federal level, the AMA has supported efforts to secure federal

The AMA is also continuing its push with the courts to streamline the

rental assistance dollars which have been conspicuously absent over

eviction process and partner property owners with rental assistance

the past nine months. At the local level, the AMA has been aggressively

dollars to save the cost of going to court in the first place.

pushing since April to secure rental assistance funds to supplement Jake Hinman is the Director of Government

the severely underfunded state rental assistance program.

Affairs for Capitol Consulting.

Maricopa County and Phoenix saw such high demand that they had

He can be reached at 602-712-1121.

to add an additional $10 million and $3.3 million to their respective programs. For 2021, the AMA will be pushing more aggressively at the Legislature for the state to step up and both streamline and fully

Bastien Andruet is a Municipal Lobbyist

fund its statewide eviction prevention program to meet demand.

for Capitol Consulting.

Life, liberty and property

He can be reached at 602-712-1121.

Lastly, and arguably most important, the AMA will be fighting any and all efforts to further extend or establish a new eviction moratorium. At the federal level, the AMA will be working closely with the National Apartment Association (NAA) to convince our congressional delegation that an eviction moratorium is neither necessary nor an effective solution. Locally, the AMA will continue to educate legislators on the facts behind the harm eviction moratoria cause, as well as provide

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The Ryan is right place at right time

December AMC event highlights Greystar’s spectacular, urban community in Downtown Phoenix By Michelle Howland Talk about a “live-work-play” apartment com-

Community amenities

munity. The Ryan in Downtown Phoenix has

• Truly walkable Downtown Phoenix location

added the words “shopping, entertainment, culture, and sports” to that phrase. It’s even on the website: “This is where you will live and shop, where your imagination will flourish, where your sense of neighborly bonding will find firm footing, and where each day will offer something new while embodying storied elements of the past.”

•D irect access to Fry’s grocery store •G round floor restaurant – Blanco Tacos & Tequila •R esident Bar – Legacy •5 th Level pool deck with lounge seating, grilling stations, fire pits •P anoramic views of downtown and mountains

Greystar hosted the December AMC event

•5 th level resident social space

at its community in the heart of Downtown

•C atering kitchen with private

Phoenix at 188 E. Jefferson. More than 20 attended the Zoom event. We met with Man-

dining area •F itness center featuring

ager Xenia Higgins and Assistant Manager Jessica Hott. They gave us a tour of the beau-

Precore® equipment •F lex fitness room featuring WellBeats®

tiful community that stands 17 stories high and features 332 units. Sarah Fluke gave us an overview of 2020 for AMA. We are all thankful that we have an organization such as AMA to lead us. The winner of the raffle to meet with The Ryan Team

and Peloton® spin bikes •C o-working space •R esident lounge with fireplace •E xpansive activity and yoga lawn •D og run and pet spa •P rivate garages and EV charging

was Kelly McPherson with ATI Restoration.

stations available

Apartment Amenities • Studio, one- and two-bedroom options • NOS® speakers • Urban mudrooms • Modern Shaker-styled cabinetry featuring pullout trash and pots and pans drawers • Quartz countertops • Distinctive wood-style flooring • Built-in wine refrigerators • Stainless steel GE® appliances • Built-in desks in select units • Front load washer and dryer • Private patio or balcony in every unit

Apartment News | January/February 2021

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Sky is the Limit Arizona apartment construction activity maintains momentum despite COVID-19

By Peter Madrid

It’s not hard to drive through Downtown Phoenix, see no fewer than five construction cranes reaching toward the sky, and ask yourself: “Downturn? Pandemic? What are you talking about?” “The Metro Phoenix multifamily market is expected to continue to perform well in 2021,” predicts Chapin Bell, CEO of P.B. Bell. “The area is expected to be one of the top job growth and rent growth markets in the country. As a result, the construction pipeline is expected to remain robust and be similar to 2020. As COVID-19 ravaged most industries and economies in Arizona and around the U.S., the apartment construction pipeline continued to

apartment development and construction business experienced many

flow with 22,000 units under construction as of 3Q 2020, according

disruptions and various uncertainties.

to a study by RealPage Inc.

“Insurance costs skyrocketed, as did lumber prices; municipalities

That ranks Metro Phoenix at No. 7 nationally for total units under

became partially paralyzed which made processing plans and receiv-

construction. The study adds that 7,500 units are in the permitting

ing inspections very difficult. There were some disruptions to the

process with an additional 38,000 units on the drawing board. Still,

material supply chains which resulted in various short-term delays.

some are taking a wait-and-see approach to 2021.

COVID infections had a relatively small, but noticeable, impact on the

“2020 was full of all kinds of disruptions to most businesses, with

availability of labor,” Evans adds.

the exception of various technology and virtual businesses,” says Matt Evans, Regional President – Multifamily, with Evergreen. “Our

Apartment News | January/February 2021

–Continued on page 13

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Evans says he expects 2021 to be somewhat choppy with regard to

RENTCafe.com projects that an estimated 45 million Gen Z-ers will have entered the housing market by 2025. Most of those young adults will be more likely to rent.

construction activity during the first half of the year. He says most developers have learned how to deal with the situation, from labor and subcontractors to lenders. “There were probably a number of projects that were dropped, and

“And, if the current behavior patterns of young Millennials and adult Gen Z-ers continue, the renting lifestyle is poised to regain some ground in the next decade and maintain a solid footing in urban areas,” according to RENTCafe.com.

some delayed, due to fear of the unknown,” Evans says. “Certain markets like San Francisco and New York City will most likely see a fall off of construction in the near-term. Other markets are faring quite well with demand and will continue to see a strong construction supply.” Locally, the boom is not just happening in Downtown Phoenix. More than 200 people are moving into Maricopa County each day. This grow-

“Apartment deliveries will increase to the highest level post the previ-

ing population, a business-friendly environment and exploding talent

ous recession or 2011,” says John Carlson, President at Mark-Taylor

pipeline is creating a need for apartment communities Valley wide.

Residential. “We estimate 12,300 to 13,500 units in 2021 depending

While Central Phoenix and North Central Phoenix are enjoying the

on construction delays.”

lion’s share of apartment construction, other submarkets are seeing

Affordability is helping drive apartment construction, according to

cranes in the sky, according to RealPage.

Apartment List. Median rent for a one-bedroom apartment in Phoenix is $945. Median rent for a two-bedroom apartment in Phoenix is $1,154.

• North Scottsdale: 5,800 units under construction;

• North Tempe/University: 6,000 units;

• Gilbert: 7,500

• Avondale/Goodyear/West Glendale: 5,800;

Downtown Phoenix Inc. reports there are now 19,500 residents in the urban core. It expects that figure to increase by 13 percent to 22,000 by 2022. DPI identifies 13 housing developments under construction. Most include ground floor retail. As the downtown Arizona State University campus continues to grow, more apartment units will be filled.

• Peoria/Sun City/Surprise: 4,100.

–Continued on page 15

Apartment News | January/February 2021

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In the Arizona pipeline Projects under construction or on the drawing board in 2021: • Hines is building a 325-unit, 318,000 SF multifamily project at the NWC of Happy Valley Road and 35th Avenue, offering a mix of one-, two- and three-bedroom homes. It will consist of six, three-story buildings and an additional one-story building which will include a clubhouse and fitness amenity center that surrounds the outdoor pool.

• The Goodyear City Council approved a rezoning request for a proposed 336-unit multi-family residential development on the NWC of North Bullard Avenue and West Van Buren Street. Greenlight Communities purchased the property for $2.8 million and will develop Cabana at Bullard. • The Manor Scottsdale, 13220 N. Scottsdale Road will be a 286-unit, multi-family apartment between Scottsdale Quarter and Kierland areas. Developer The Related Group also has plans for two additional multi-family projects including a 420-unit project in Chandler slated to begin 1Q 2021 and a project in the North Scottsdale area that will provide an additional 360 multi-family units.

• Crescent Communities bought 8.61 acres of land at the SEC of Val Vista Drive and Pecos Road in Gilbert for a $100 million, 317unit apartment community, NOVEL Val Vista.

Apartment News | January/February 2021

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• 2.0 at Eastmark, NEC of Ray and Ellsworth roads in Mesa, will consist of 354 apartment homes within the Eastmark community. The community will feature pickle ball courts, children’s playground, car-charging stations and a community park. • The Place at Gateway Silverbell, an affiliate of MC Companies, purchased 14.4 acres at 7300 N Silverbell Road in Marana for $2.55 million. MC Companies plans 300 luxury apartment homes with large floorplans that average 1,070 SF. • Kenect Phoenix, a 23-story, 320-unit multifamily project at the SEC of Central Avenue and Polk Street in Downtown Phoenix.

• The Derby, a 21-story, 211 micro-unit project at the NWC of McKinley and Second streets. The units will average 400 SF.

• Adeline at Collier Center, a 25-story, 379-unit multifamily project

• Aspire, a 17-story, 254-unit apartment community at the NEC of

at the NWC of Jefferson and Third streets in Downtown Phoenix.

Fillmore Street and third Avenue in Downtown Phoenix.

CONSTRUCTION BOOM The top 10 metro markets across the U.S. with the most apartment units under construction through 3Q 2020: 1. Dallas/Fort Worth, TX: 40,058 2. Washington-Arlington-Alexandria, DC-VA-MD-WV: 30,986 3. Los Angeles-Long Beach-Glendale, CA: 30,265 4. Newark-Jersey City, NJ-PA: 27,215 5. Houston-The Woodlands-Sugar Land, TX: 24,790 6. New York-White Plains, NY: 22,125

7. Phoenix-Mesa-Scottsdale, AZ: 22,055 8. Seattle-Bellevue-Everett, WA: 20,642 9. Austin-Round Rock, TX: 17,705 10. Atlanta-Sandy Springs-Roswell, GA: 16,653. Source: RealPage Inc.

Apartment News | January/February 2021

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Legally Speaking

A year like no other

Challenges, changes will dominate 2021 industry story lines after tumultuous 2020 By Blythe Edmondson, Attorney at Law

2020 was not what anyone expected. This time last year legislation regarding rent control appeared to be the point to contend with for 2020. We were prepared for some unfavorable bills in the Arizona Legislature, but nobody could have predicted the onslaught we would face with COVID-19. The buck stopped with the rental property owners each and every time, and I am incredibly proud of our community and how we have weathered the storm to date. While I hope with the COVID vaccine some things will get back to “normal,” we need to be prepared for the continued attack on

in Arizona Rules allowing non-lawyers to represent individuals in

our industry and be aware of policy changes that may benefit our

limited situations.

industry and harm our industry.

We hope this will lead to increased education regarding the evic-

On the national stage, we can expect a better than 50/50 chance that the Centers for Disease Control moratorium will be extended. We may have a small window in January without it. The Joe Biden/Kamala Harris plan for housing may be stopped by a Republican Senate, but we can expect to see at least an attempt to increase Section

tion process for residents, but the exact ramifications remain to

2020 was a rough year, and we don’t have a crystal ball looking into 2021.” – Blythe Edmondson

be seen. Be prepared for legislation to establish rent control and to extend the time before starting and/or completing the eviction process. Given the make-up of our Arizona Legislature for 2021, the likelihood of these types of bills passing is not great, but

8 funding, more funding for subsidized housing development, a

the narrative will continue to be pushed as some try to inch closer

possible renter tax credit, and changes to attempt to strengthen

to additional regulation on the rental housing industry.

fair housing regulations.

Resident advocates are expecting a three-prong wave of evictions

The lawsuit, Brown v. CDC in Georgia, will continue to be critical for

in 2021.

industry as we fight to our protect rights. On a state level, we will likely see non-attorney advocates appearing in court to assist renters in eviction actions due to a change

Apartment News | January/February 2021

–Continued on next page

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First, they expect the writs of restitution to be issued in mass due

The AMA has myriad resources and articles we can provide to

to the expiration of the COVID protections such as the CDC order.

educate our residents, friends and neighbors on the importance of

Second, they anticipate that property owners who held off on filing

multifamily housing in our communities. We will continue to show-

will finally file once the COVID protection lapses, creating a second

case the many wonderful things you are all doing for your residents

wave of evictions in 2021.

and your communities.

Finally, they are preparing for a final wave of evictions when fore-

We present facts and numbers when we hear phrases such as

closures occur later in the year due to the financial hardship many

“rampant evictions” or “property owners want to evict residents.” (Why the commonsense point that without residents, property

property owners have faced with the COVID restrictions.

owners do not have a business or income is missed by so many

While the last is unlikely to result in evictions in the multi-housing

remains a mystery to me).

industry, and I don’t believe there will be a flood in the first two categories, the perception of property owners is that we are ready

2020 was a rough year, and we don’t have a crystal ball looking into

to evict residents and want them out.

2021. However, we can prepare ourselves for the challenges that will continue to assail our industry. We are the advocates for the

In short, expect continued and increased attempts to increase

multi-housing industry. Our continued efforts will help protect both

regulations on rental housing in 2021. Efforts will continue to “pro-

owners and residents.

tect” residents who were affected by COVID well into 2021. These protections will likely come at the expense of the property owner,

Blythe Edmondson, Attorney at Law Edmondson Law PC

as they did throughout 2020.

Blythe opened Edmondson Law PC in 2018 after 18 years of practicing law in Tucson. While Blythe’s practice initially included real estate matters and landlord representation, she expanded her practice areas over the years to include collections and business law to provide more comprehensive service for her clients.

Expect property owners to continue to be portrayed as the evil villains. Therefore, we need to be ready to present an accurate picture of our industry. How do we politely fight these attacks and correct these inaccuracies? With facts.

The Julie Hurst and Steve Peters Education Fund provides fund-

To learn more about the scholarship and

ing for the employees of a company that is a member in good

other AMA Education scholarships, go to

standing of the Arizona Multihousing Association (AMA) and their

azmultihousing.org/scholarships

immediate family members. Immediate family members include children, spouse, or dependent of a legal guardian.

Deadline to Apply: March 1, 2021

Administered by the Arizona Community Foundation (ACF), the Julie Hurst and Steve Peters Education Fund will distribute academic scholarships annually. The scholarships are for one

To apply for the scholarship

year of undergraduate study for part-time and full-time students at an accredited college, trade/vocational school, or university located in Arizona. Applicants may reapply in subsequent years to be considered for additional funding.

Apartment News | January/February 2021

directly, go to azfoundation.academicworks.com/opportunities/3500 18

azmultihousing.org


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Apartment News | January/February 2021

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AMA Patron Profile Ally Waste Services 55 W. Hoover, Unit 8, Mesa, Ariz., 85210

By Peter Madrid

It’s not a play on words when Tanner Crezee says the value of

“As a Platinum Sponsor, we have been able to

Big Hearts. Charity walks and runs. I love to

take part in some special events and meet-

see the good that can be done when people

ings within the AMA,” he explains. “This as-

get together around a charitable cause.”

being an AMA member is that his company has gained friends and allies through the relationships it has built. The name of the company? Ally Waste Services, of course. “The value of being an AMA member is im-

From a business perspective, the AMA is one of the best places to spend our marketing dollars.” – Tanner Crezee

measurable,” said Crezee, Owner/Director of Business Development of the Mesa-based

sociation continues to provide us avenues for

valet trash and recycling company. Ally has

marketing and keeps us well informed on the

been an AMA member for 4 years. “Not only

multifamily housing industry and our partners.”

have we been able to significantly grow our business through the AMA, but we have built strong relationships.” Crezee credits his team for helping build those relationships. It was his team, he adds, that found unique ways to pivot and overcome all challenges as the COVID-19 pandemic wreaked havoc on Arizona’s apartment industry. “Although there were some setbacks, we have continued to grow,” he proudly says. “We are grateful to continue adding new jobs constantly.” Industry groups are vital to the success of any business. How has Ally Waste Services leveraged its standing in the Arizona multifamily community through its membership in AMA?

Despite a shaky economy – the fallout from COVID-19 – multifamily remains a brisk property type in Arizona. How is this benefitting Ally Waste Services? “We thrive in multifamily properties,” Crezee says. “We love the enthusiasm from ownership groups and management companies who continue to build here. Arizonans love these new communities and all the amenities they provide.” Personally, what does it mean to Crezee to be a member of AMA?

Tanner Crezee Owner/Director of Business Development (877) 689-2559 tanner@allywaste.com

“It is being part of something bigger,” he says. “From a business perspective, the AMA is one of the best places to spend our marketing dollars. But personally, I love seeing all the good that is done through the AMA. Scholarships.

Apartment News | January/February 2021

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New program at Gateway Community College prepares future maintenance techs in Phoenix By Kelly Graham

Maintenance talent is currently the most sought-

Maintenance roles make up nearly 29% of all apartment jobs postings this quarter, up 3% from last year. Meanwhile, establishing a

after talent in our industry. With so many people

reliable pipeline of maintenance talent remains a major challenge in

spending more time at home, the need for repairs

the industry.

and maintenance has increased significantly.

In early 2019, NAA and the Arizona Multihousing Association teamed up to address this growing industry-wide need for skilled maintenance talent by piloting a training and internship program. –Continued on next page

Apartment News | January/February 2021

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The program was collaboratively designed by AMA, the NAA Education Institute and several individual companies and training organizations. The design process was led by Grads of Life, a nonprofit workforce intermediary that helps companies develop innovative programs to bring young people into quality jobs.

Now, in continued partnership with Grads of Life, AMA has formalized the components of the successful pilot program through a collaboThe program involved training aligned with NAA’s CAMT and a 10-

ration with Gateway Community College in Phoenix. The result is a

week paid internship for young adults. At the end of the 10-week

new course, the first apartment maintenance program at Gateway.

internships, the companies that hosted the interns had the option

The course includes a paid internship and Grads of Life’s professional

to hire them full-time at no extra cost. As a result of this small pilot,

skills curriculum, Career Labs. Career Labs teaches important profes-

10 young people were placed into maintenance technician roles. The

sional skills like collaboration, problem solving and time management.

success of the program was exciting, but expansion was halted due

These two components were fundamental to the success of the pilot

to the onset of COVID-19.

program. A paid internship opens the opportunity to many people that otherwise could not afford to get into this career. Professional skills training sets them up for long-term success. The new course is offered at flexible times through the technical side of the college and serves as a pathway into a middle-skill job. “This program is a path to earn an affordable education and advance your skills through a rigorous curriculum and hands-on practical application in the apartment maintenance field,” said Program Manager Mark Woehl. Apartment maintenance technician roles provide advantages that other maintenance jobs do not – most importantly, a clear career path to earning up to $100,000 per year as a regional maintenance manager. In addition, Phoenix area property management companies will benefit from a strong pipeline of pre-trained, local talent for these in-demand roles. The program was established to help build stronger businesses in the industry and support the Phoenix community more broadly. Potential students or anyone interested in helping with instruction,

WINDOW & DOOR SCREENS

please reach out to Stephanie Martinez at stephanie.m.martinez@

ameristarglass.com

gatewaycc.edu or (602) 238-4392.

602-675-8700 office 602-675-8707 fax ROC# 327236

Apartment News | January/February 2021

Interested trainees may apply at admissions.maricopa.edu.

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What’s up

THANK YOU

PATRON MEMBERS! P L AT I N U M

down in Tucson

As we kick off 2021, we are looking forward to getting together as soon as we can safely do so. All our committees are busy at work thinking of new ways to engage members and support our amazing industry. Events to keep an eye out for in Tucson:

Big Hearts Annual Fun Run This hugely popular event will have a twist this year. Join us as we run off the 20s between January 20 and February 20. Look for ways

G O L D

to participate throughout the duration of the run with small groups of your close friends or colleagues. Sponsorship opportunities are available for inclusion on the shirt that each runner will receive and more. Check out the Big Hearts fundraising page on the AMA website for more information.

The Networking Committee

S I LV E R

This committee is exploring options for a networking event in March to bring members safely together. If you have a great idea, we’d love to have you join our committee. All of our committees are open for new members and we’d love to have you. Check out the website or email LRomero@azmultihousing.org for more information.

Tucson AMA/American Roofing & Waterproofing Golf Tournament This event is scheduled for April. The AMA is working closely with the Randolph Golf Course and the Pima County Health Department to plan

For more information on how to become a patron member of AMA, please contact Sarah Fluke, sfluke@azmultihousing.org, 602-296-6212.

a safe, socially-distanced event. Differences you may see are scheduled tee times and staggered box lunches to help promote social distancing.

Apartment News | January/February 2021

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