Phoenix Metro Multifamily 2014 Year End Review

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Phoenix

Glendale

Mesa

Scottsdale

PHOENIX MSA QUICK STATS

5.8%

5.5%

5.3%

4.4%

UNEMPLOYMENT RATE

$46,870

$44,256

$48,054

$70,922

MEDIAN INCOME

$73,865

$50,040

$72,255

$123,735

2014 AVG PRICE/UNIT (100+)

$44,779

$41,804

$49,195

$95,588

2014 AVG PRICE/UNIT (20 - 99)

POPULATIONCENSUS ESTIMATE

4,330,000+3.2%GROWTH

MEDIAN HH INCOMEAVG OF ACS 1,5 YEAR AND HUD

YEARLY MEDIAN INCOME ESTIMATE

$55,658

UNEMPLOYMENTBUREAU OF LABOR STATISTICS

ESTIMATE DEC 2014

5.6%-1.3%

Total Sales Volume

Price/Unit

Pr i ce/SF

Year Built

$2.7B

$79,558

$99.26

1980

$2.5B

$78,036

$92.13

1980

8.0%

2.5%

7.0%

2014 2013INCREASE/DECREASE

New Construction 4,527 3,5693.0%

AV

ER

AG

E

20+ UNIT PROPERTIES

Effective Rent

Vacancy Rate

$724

6.6%

$693

6.7%20 + $31

0.1%

NO CHANGE


100+ UNIT PROPERTIES

20 - 99 UNIT PROPERTIES

Total Sales Volume

Price/Unit

Pr i ce/SF

Year Built

Effective Rent

Vacancy Rate

$2.5B

$83,829

$104.13

1987

$793

6.1%

$2.3B

$84,572

$98.45

1988

$747

6.8%

8.0%

0.8%

6.0%

1-yr

$46

0.7%

2014 2013

TOP 3 TRANSACTIONS BY PRICE/UNIT (100+)District on Apache (Student Housing )Tempe, 279 units | $91M | $326K/unit | $249.16/sf | Yr. Blt: 2013

Broadstone CamelbackPhoenix, 270 units | $74.75M | $277K/unit | $341.39/sf | Yr. Blt: 2013

Alta RavenwoodTempe, 240 units | $44.45M | $185K/unit | $145.70/sf | Yr. Blt: 2008

2014 Transactions by Year Built# of Transactions Avg Price/Unit Avg Price/SF

2000+

1990-99

1980-89

Pre-1980

19 $144K $173

18 $117K $127

44 $65K $82

34 $48K $67

NUMBER OF TRANSACTIONS BY YEAR BUILT

44

1980-89

34PRE-

1980

19

2000+

18

1990-99

Total Sales Volume

Price/Unit

Pr i ce/SF

Year Built

Effective Rent

Vacancy Rate

$208M

$49,155

$63.31

1973

$654

7.2%

$210M

$41,973

$53.76

1974

$638

6.6%

0.8%

17%

18%

1-yr

$16

0.8%

2014 2013

TOP 3 TRANSACTIONS BY PRICE/UNIT (20-99)Scottsdale Haciendas (Fractured Condo)Scottdale, 79 units | $9 .25M | $117K/unit | $116.71/sf | Yr. Blt: 1985

18 at BiltmorePhoenix, 51 units | $5.6M | $110K/unit | $122.97/sf | Yr. Blt: 1957

VerandasPhoenix, 68 units | $7.05M | $104K/unit | $99.78/sf | Yr. Blt: 1987

2000+

1990-99

1980-89

Pre-1980

2014 Transactions by Year Built# of Transactions Avg Price/Unit Avg Price/SF

3 $64K $51*

1 $88K $64

39 $48K $61

55 $48K $66

NUMBER OF TRANSACTIONS BY YEAR BUILT

AV

ER

AG

E

39

1980-8955

PRE-1

980

3 12000+ 1990 - 99

AV

ER

AG

E

Transaction=

* Partially completed and affordable sales only.

INCREASE/DECREASE

INCREASE/DECREASE


SINGLE FAMILY RESIDENTIAL

NEW INVENTORYMEDIAN AND AVG SALES PRICE

TOTAL INVENTORYFORECLOSURES PENDING

MONTHLY SALES 6,495+8.8%, YEAR-OVER-YEAR+30.2%, MONTH-OVER-MONTH

MEDIAN SALES PRICE $197,000+6.5%, YEAR-OVER-YEAR MEDIAN

AVG DAYS ON MARKET 88+8.8%, YEAR-OVER-YEAR+30.2%, MONTH-OVER-MONTH

AVG SALES PRICES $257,900+4.4%, YEAR-OVER-YEAR AVERAGE

FORECLOSURES PENDING 5,760-33.4%, YEAR-OVER-YEAR-1.4%, MONTH-OVER-MONTH

SINGLE FAMILY HOME STATSYEAR-OVER-YEAR / MONTH-OVER-MONTH COMPARISON

$257,900

5,724

24,942

5,760

$197,000


580

982

1,449

4,692

6,375 6,294

8,533

6,385

7,261

8,644

7,663

3,281

5,431

3,683

2,751

6,902

5,003

9,315

2,593

615

1,668

3,569

4,527 * **

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Average: 4,704

* = 4,527 (ACTUAL 2014)

** = 4,500 (ABI PROJECTED 2014)

COMPLETED CONSTRUCTION

UNIT COMPLETIONSCURRENTLY UNDER CONSTRUCTION

PLANNED PROJECTS

P H O E N I X M U L T I F A M I L Y C O N S T R U C T I O N P I P E L I N E

U N I T S D E L I V E R E D 1 9 9 2 - P R E S E N T | Y E A R - E N D 2 0 1 4

Under ConstructionTotal # of Units: 11,310Total # of Properties: 44

PlannedTotal # of Units: 17,007Total # of Properties: 73


PHOENIX MSA EMPLOYMENT AND SELECT NEWS ARTICLESPHOENIX MSA EMPLOYMENT AND SELECT NEWS ARTICLES

West Valley Casino & Resort: 300+ Construction Jobs | 3,000 + full time jobs upon buildout | $300 million in annual economic impact

ASU buying 24 acres near Mayo Clinic to create health education and bio-science research campus | $75 million development | 100+ jobs

ASU Law School breaks ground on Dowtown Phoenix location | $129 million | 11,500+ students in downtown Phoenix

GCU continues massive campus expansion | 3,000+ employees and 14,000+ students expected by 2020

General Motors | Hiring 1,000+ IT Professionals, 500 by end of 2014 and another 500 by 2016

Brings total State Farm Phoenix area employment to 3,000+

Able Engineering plans expansion to hire 100+ employees in 2015

Choice Hotels | Hiring 100+ IT Specialists for 2 Phoenix offices | Salaries start at $55,000+

Springleaf to open Tempe Central Operations Center | Baseline Corporate Center | 200+ new call center positions

Progressive Leasing | Hiring 500+ employees by end of 2015 | Jobs include: underwriters, collections officers, cust service reps and support

Fry’s is hiring 1,000+ workers across Arizona | Positions include pharmacy techs, managerial positions and all-purpose clerks

Intel replaces Texas Instruments as the supplier of chips for next iteration of Google Glass

Intel’s Arizona manufacturing plants become exclusive high-volume manufacturing plants for Intel’s newest small chip technology

APAC adding 1,100 jobs, 700 in Southern Arizona and 400 in Phoenix, to expand call center solutions platform

CPLC to transform Pickle House into 200-job incubator program | $2.9M in grant funding from US Dept of Commerce Economic Dev Admin

The Nerdery, a web, software and mobile app development company, plans on hiring 150+ over next several years


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DISCLAIMER (C) 2014 ABI Multifamily | The information and details contained herein have been obtained from third-party sources believed to be reliable; however, ABI Multifamily has not independently verified its accuracy. ABI Multifamily makes no representations, guarantees, or express or implied warranties of any kind regarding the accuracy or completeness of the information and details provided herein, including but not limited to the implied warranty of suitability and fitness for a particular purpose. Interested parties should perform their own due diligence regarding the accuracy of the information. SOURCES: ABI Research / Bureau of Labor Statistics / Census Bureau / Pierce-Eislen / US Chamber of Commerce / Vizzda / ARMLS

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ALON SHNITZER SENIOR MANAGING PARTNER

RUE BAX SENIOR MANAGING PARTNER

DOUG LAZOVICKPARTNER

EDDIE CHANGPARTNER

TERRY KASSSENIOR VICE PRESIDENT

MARK SKELPSASENIOR VICE PRESIDENT

NOTABLE 2014 ABI MULTIFAMILY TRANSACTIONS

AVENUE 25 APARTMENTS18250 N 25th Avenue, Phoenix, AZ

Price: $35,400,000Units: 254Year Built: 2014

MIRAMONTE APARTMENTS8025 E Lincoln Drive, Scottsdale, AZ


WATERFORD ON TATUM15425 N Tatum Boulevard, Phoenix, AZ


SCOTTSDALE HACIENDAS985 North Granite Reef Road, Scottsdale, AZ

Price: $9,250,000Units: 79 of 180Year Built: 1985

Real Estate

Phoenix Metro Multifamily 2014 Year End Review