06 May Scottsdale-based build-to-rent developer starts third-party construction firm
Avenue North, which has been busy developing $200 million build-to-rent communities in south Phoenix, has launched a construction company to build projects for other developers and owners.
The goal of this new third-party construction firm is to build 1,000 units a year, said Ryan Hartman, chief vision officer for Scottsdale-based Avenue North. It will operate as an affiliate of Avenue North.
“We’re interested in providing a service to other developers in capturing the opportunity of the build-for-rent pipeline that we’ve been building for ourselves; using that experience to help other developers get their projects out of the ground as well.”
Plans call for hiring a senior estimator and additional site superintendents as Avenue North Construction grows, he said.
Hartman already hired Jean Loredo from Meritage Homes Corp. (NYSE: MTH) to serve as regional construction manager for Avenue North Construction.
Avenue North has been busy building build-to-rent communities in the south Phoenix area over the past few years. A couple of the projects are within a couple of miles of the new light rail station at Central Avenue and Baseline Road expected to open in 2024.
The first community Avenue North built — Proximity 16th St. — at 16th Street and Baseline Road will be listed for sale next week, represented by Northmarq.
That 85-unit build-to-rent community, which opened in June 2021 and is 96% leased, will be listed without a set price, Hartman said.
Hartman said he has no immediate plans to sell any of Avenue North’s other communities.
“This is more just about providing a return to investors,” he said.
Hartman also is finalizing permits with the city of Phoenix for a 192-unit townhome community and a 46-unit build-to-rent community at 36th Street and Southern Avenue. Plans call for selling that 22-acre parcel with CBRE Group Inc.
“We have launched it for sale,” Hartman said. “We would act as general contractor to build it.”
Meanwhile, Avenue North just broke ground on the 84-unit Proximity 7th and will break ground on the 243-unit Proximity Central later in May. The company began vertical construction on 80 garden apartment units at Proximity Baseline with leasing to begin this summer.
“We’ve got some exciting things going on there,” Hartman said. “We have 895 units of development in the pipeline.”