Will Mid-Rise Multifamily Dominate?

When Steve Jobs introduced the iPod, people didn’t know they needed one (and you know how that story goes). Same for mid-rise multifamily buildings in the greater Phoenix area, according to Transwestern VP Jack Hannum (we’ll get to his Megadeth posters in just a few). Historically, buildings were garden-style with the classic, stucco look, he says, but more urban, mid-rise projects make up 43% of 14,000 units coming online over the next few years. In 18 months, we’ll see just how successful they are, he says, but we’re already seeing some command rents upwards of $1.75/SF.

Source: Transwestern

Developers are aiming for a new renter—one who wants a lifestyle and amenities. “It’s almost that Phoenix wants to be its own LA,” Jack says. (With fewer paparazzi.) We’re seeing more luxurious clubhouses, granite and quartz kitchens, and game rooms that go beyond billiards. And growing around these projects, like Alliance Residential’s Broadstone Camelback, is a thriving restaurant and retail scene. “Go to Old Town Scottsdale on a Thursday and it’s buzzing,” he says. “There’s a bigger city feel than Phoenix 15 years ago.” Strong investor interest is following—even aggressive for the best-located assets.

Now back to the Megadeth posters. When Jack’s not specializing in multifamily investment sales, you might just find him at a heavy metal or rock concert. He snapped this pic of his son, Ethan, at the 9-year-old’s first concert two years ago. They were in the front for Dream Theater, and behind him is John Petrucci playing guitar. “Ethan was the only kid up front, and the band gave him all the love at the show,” he says. Jack’s also down for a good book and is gearing up to re-read a favorite, John Maxwell’s Everyone Communicates, Few Connect.