PHOENIX, ARIZONA (October 24, 2022) – Northmarq’s debt and equity team of Brandon Harrington and Tyler Woodard secured a $33,327,212 construction loan for the development of The Aster at Mountain Vista in Mesa, Arizona. The ground-up development is a joint venture between Scottsdale-based Ascent Companies and Stave Properties, with Crown Builders as the general contractor.
Located near the intersection of Southern Avenue and Crismon Road, the developers are planning to break ground on the 156-unit, multifamily property before year-end 2022. The Aster at Mountain Vista community will offer similar amenities and quality as seen in much larger multifamily communities in the submarket, but in a boutique setting. Constructed on an 8.47-acre parcel, the community will have a unit mix of 80 one-bedroom, 66 two-bedroom, and 10 three-bedroom units, within seven residential buildings. The community amenities include a clubhouse, fitness center, pool, entertainment lawns, BBQ’s and dog park.
“We are extremely excited to have placed the financing for The Aster at Mountain Vista. The capital markets for construction financing are challenging but we cast a wide marketing effort and were able to secure a fixed rate construction loan for this project,” according to Harrington. “Lenders are still active for best-in-class developers and projects given the continued lack of supply in certain areas of Phoenix.”
Construction of new units in the Phoenix multifamily market, and the quickening pace of development is bringing supply and demand closer to equilibrium. Apartment construction levels are expected to remain elevated for several more quarters. The number of units under construction has essentially doubled in the past two years, and developers have been delivering an average of about 10,000 units per year since 2017, up from 6,000 units per year in the preceding period. For more details see Northmarq’s Market Insights Greater Phoenix Multifamily 2Q 2022 report.