01 May Avenue North Sells 7 acres to Rockefeller Group
Long known for developing industrial and office projects in metro Phoenix, New York-based Rockefeller Group is getting into the build-to-rent sector.
The developer of several industrial and retail projects in metro Phoenix bought two parcels totaling 16.5 acres in south Phoenix with plans to invest about $40 million to develop 152 rental townhomes.
Ranging between 1,126 and 1,525 square feet, each two-story unit will have a doggie door and private backyard.
Mark Singerman, vice president and regional director for Rockefeller Group, said the two parcels the company bought are nearly two miles apart.
A 9.2-acre parcel at 8181 S. 20th St. was purchased from The Bruckal Group for $4.9 million, and a 7.34-acre site at 825 E. Euclid Ave. was purchased from Scottsdale-based Avenue North LLC, which has been developing rental units in the South Mountain area.
Ryan Hartman, chief vision officer for Avenue North, said he was offered a nice price so he sold the parcel he had planned to develop.
“We provided the design drawings for the 20th St sale and had full construction drawings completed for our Euclid parcel. We still have more land in South Mountain — three parcels totaling 481 units across 32 acres that we intend to build,” Hartman said.
Zack Mishkin, senior vice president with Orion Investment Real Estate in Scottsdale, represented the sellers in both transactions.
“Arizona is the epicenter and proving ground for BTR product,” Mishkin said. “Since 2015, Phoenix has added more than 12,000 units completed or in various stages of development in the Phoenix MSA alone.”
Both sites are fully entitled, Singerman said. Groundbreaking on both sites is expected to begin this summer, with first occupancy projected in the first quarter of 2025.
Both communities will be gated and professionally managed, he said. They each will include a community pool, spa, dog park, BBQ areas and play areas for children.
The townhomes at 8181 S. 20th St. will have two-car attached garages.
Singerman said he hasn’t selected a general contractor for the project. He expects to have one general contractor for both sites.
Phoenix Business Journal