By Angela Gonzales | Phoenix Business Journal
Despite the fact that 4,000 apartments units are under construction and even more are in the pipeline in downtown Phoenix, Michael Lafferty says the $29 million project he’s building is absolutely necessary.
The founder of Phoenix-based Lafferty Construction Co. has started building the 235-unit St. Ambrose Apartments at the southwest corner of Van Buren and 12th streets near the Phoenix Biomedical Campus. This project is different, he says, because the units are more affordable for renters and won’t have some of the luxury amenities of other new downtown apartments.
“The St. Ambrose project will average approximately $1,051 per month rents versus the $1,608 average in the downtown area currently,” Lafferty said. “This St. Ambrose project will give the professionals, Arizona State University students, biomedical, TGen, downtown-based workers and the general public a sustainable place to reside five blocks from downtown.”
This 129,000-square-foot project — which will include a four-story parking garage, pool, clubhouse and weight room — will help transition the Van Buren corridor, as described in the Eastlake Edison general planning documents, Lafferty said.
“The history of Van Buren has an amazing past and now this project will help reinvigorate with this redevelopment in this area,” Lafferty said. “The real big advantage is nobody wants to spend 50% of their income on rent, and St. Ambrose helps resolve that issue.”
The thousands of apartment units under construction in downtown Phoenix will expand the area’s inventory by more than 10%, said Jessica Morin, director of market analytics for CoStar Group in Phoenix.
“The projects currently under construction are limited to 4- and 5-star buildings, which command higher rents,” she said. “There is a substantial need for affordable housing, especially during this period of economic volatility, and many renters are facing financial hardships.”
In downtown Phoenix, vacancies for mid-tier properties are much lower, she said, trending near 6% compared with 4- and 5-star properties, where vacancies are in the double digits.
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