ABI Multifamily Phoenix Metro 2Q 2015 Multifamily Quarterly Report

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PHOENIX OFFICE | 4715 N 32ND STREET, STE. 105, PHOENIX, AZ 85018 | P: 602.714.1400 | ABIMULTIFAMILY.COM © Phoenix Glendale Mesa Scottsdale PHOENIX MSA QUICK STATS 4.8% 4.7% 4.5% 3.7% UNEMPLOYMENT RATE $46,870 $44,256 $48,054 $70,922 MEDIAN INCOME $80,201 $41,821 $90,279 $147,532 2Q 2015 AVG PRICE/UNIT (100+) $60,382 $54,048 $48,243 $103,241 2Q 2015 AVG PRICE/UNIT (10 - 99) POPULATION ADOA, EBRC ESTIMATE 4,404,888 +1.5% GROWTH MEDIAN HH INCOME ABI RESEARCH ESTIMATE YEARLY MEDIAN INCOME $55,250 UNEMPLOYMENT BLS, EBRC ESTIMATE - JUNE 2015, DECREASE 0.8% FROM YEAR AGO 5.4% -0.8% Total Sales Volume Price/Unit Price/SF Year Built $621M $75,747 $98.98 1979 $598M $62,108 $79.80 1975 3.8% 22% 24% 4 yrs 2Q 2015 2Q 2014 INCREASE/DECREASE New Construction 1,439 943 53% AVERAGE 10+ UNIT PROPERTIES Effective Rent Vacancy Rate $788 4.6% $731 5.9% 10 + $57 1.3%

Transcript of ABI Multifamily Phoenix Metro 2Q 2015 Multifamily Quarterly Report

PHOENIX OFFICE | 4715 N 32ND STREET, STE. 105, PHOENIX, AZ 85018 | P: 602.714.1400 | ABIMULTIFAMILY.COM

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Phoenix

Glendale

Mesa

Scottsdale

PHOENIX MSA QUICK STATS

4.8%

4.7%

4.5%

3.7%

UNEMPLOYMENT RATE

$46,870

$44,256

$48,054

$70,922

MEDIAN INCOME

$80,201

$41,821

$90,279

$147,532

2Q 2015 AVG PRICE/UNIT (100+)

$60,382

$54,048

$48,243

$103,241

2Q 2015 AVG PRICE/UNIT (10 - 99)

POPULATIONADOA, EBRC ESTIMATE

4,404,888+1.5%GROWTH

MEDIAN HH INCOMEABI RESEARCH ESTIMATEYEARLY MEDIAN INCOME

$55,250

UNEMPLOYMENTBLS, EBRC ESTIMATE - JUNE 2015,

DECREASE 0.8% FROM YEAR AGO

5.4%-0.8%

Total Sales Volume

Price/Unit

Pr i ce/SF

Year Built

$621M

$75,747

$98.98

1979

$598M

$62,108

$79.80

1975

3.8%

22%

24%

4 yrs

2Q 2015 2Q 2014INCREASE/DECREASE

New Construction 1,439 94353%

AV

ER

AG

E

10+ UNIT PROPERTIES

Effective Rent

Vacancy Rate

$788

4.6%

$731

5.9%10 + $57

1.3%

PHOENIX OFFICE | 4715 N 32ND STREET, STE. 105, PHOENIX, AZ 85018 | P: 602.714.1400 | ABIMULTIFAMILY.COM

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1980-89

32

PRE-1

980

100+ UNIT PROPERTIES

10 - 99 UNIT PROPERTIES

TOP 3 TRANSACTIONS BY PRICE/UNIT (100+)44 MonroePhoenix, 184 units | $50.65M | $275K/unit | $200.73/sf | Yr. Blt: 2008

SkySongScottsdale, 325 units | $67.5M | $208K/unit | $213.73/sf | Yr. Blt: 2014

Cactus Forty-2 Phoenix, 200 units | $36M | $180K/unit | $232.17/sf | Yr. Blt: 2014

2Q 2015 Transactions by Year Built# of Transactions Avg Price/Unit Avg Price/SF

2010+2000-091990-99

1980-89 Pre-1980

2 $197K $2206 $147K $1440 n/a n/a14 $63K $876 $54K $88

2Q 2015 Transactions by Year Built# of Transactions Avg Price/Unit Avg Price/SF

2010+2000-091990-99

1980-89 Pre-1980

1 $183K $1320 n/a n/a0 n/a n/a14 $53K $7332 $58K $80

TOP 3 TRANSACTIONS BY PRICE/UNIT (10-99)Valencia TownhomesPhoenix, 36 units | $6.59M | $183K/unit | $132.11/sf | Yr. Blt: 2010

Oasis TwentyPhoenix, 19 units | $2.1M | $111K/unit | $143.99/sf | Yr. Blt: 1960

Scottsdale TownhouseScottsdale, 27 units | $2.8M | $103K/unit | $107.42/sf | Yr. Blt: 1973

12010+

Total Sales Volume

Price/Unit

Pr i ce/SF

Year Built

Effective Rent

Vacancy Rate

$517M

$92,113

$117.47

1988

$868

4.2%

$529M

$69,025

$92.90

1988

$804

5.6%

2.3%

33%

26%

$64

1.4%

2Q 2015 2Q 2014

AV

ER

AG

E

INCREASE/DECREASE

2Q 2015 2Q 2014

Total Sales Volume

Price/Unit

Pr i ce/SF

Year Built

Effective Rent

Vacancy Rate

$104M

$59,347

$80.43

1970

$707

4.9%

$68M

$55,191

$66.20

1970

$658

6.2%

53%

7.5%

21%

$49

1.3%

AV

ER

AG

E

INCREASE/DECREASE

2

2010+

6

2000 - 09

14

1980-89

6

PR

E-1980

NUMBER OF TRANSACTIONS BY YEAR BUILT

NUMBER OF TRANSACTIONS BY YEAR BUILT

NO CHANGE

NO CHANGE

PHOENIX OFFICE | 4715 N 32ND STREET, STE. 105, PHOENIX, AZ 85018 | P: 602.714.1400 | ABIMULTIFAMILY.COM

SINGLE FAMILY RESIDENTIAL

NEW INVENTORYMEDIAN AND AVG SALES PRICE

TOTAL INVENTORYFORECLOSURES PENDING

MONTHLY SALES 8,674+20.2%, YEAR-OVER-YEAR+4.3%, MONTH-OVER-MONTH

MEDIAN SALES PRICE $214,900+10.2%, YEAR-OVER-YEAR MEDIAN

AVG DAYS ON MARKET 78-4, YEAR-OVER-YEAR-3, MONTH-OVER-MONTH

AVG SALES PRICES $271,000+5.8%, YEAR-OVER-YEAR AVERAGE

FORECLOSURES PENDING 5,048-22.1%, YEAR-OVER-YEAR-6.1%, MONTH-OVER-MONTH

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

$271,000 9,120

23,337

5,048

$214,900

PHOENIX OFFICE | 4715 N 32ND STREET, STE. 105, PHOENIX, AZ 85018 | P: 602.714.1400 | ABIMULTIFAMILY.COM

PlannedTotal # of Units: 15,475

Total # of Properties: 61

Under ConstructionTotal # of Units: 13,244

Total # of Properties: 58

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

2,054*

8,500**

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Average: 5,019

** = ABI 2015 ESTIMATE

* = 1Q/2Q 2015 UNITS DELIVEREDP 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 EU N I T S D E L I V E R E D 1 9 9 5 - P R E S E N T | 2 N D Q U A R T E R 2 0 1 5

COMPLETED CONSTRUCTION

PHOENIX OFFICE | 4715 N 32ND STREET, STE. 105, PHOENIX, AZ 85018 | P: 602.714.1400 | ABIMULTIFAMILY.COM

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

Northern Trust | Opening $95M regional operations center in Tempe | Hiring 1,000

Microsoft to move data operations center to Phoenix Metro

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

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

Zenefits | Fast-growing human resources technology firm | Hiring 700 for Tempe office by end of 2015

Apple to spend up to $2 billion on global command center in Mesa

Groupon | Opening Sales Office at SkySong in Scottsdale | Plans to hire 150+

PayPal | Expanding footprint in Chandler, AZ | Plans to hire 150 by the end of the year

ASU unveils urban lakefront plan for Atheletics District | Catellus, developer, projects 20 year timeline: 7M SF of office, 2,500+ residential units and 250,000sf of retail

Mayo Clinic set to open $180M cancer-fighting center in March 2016

CreditRepair.com opertor, Progrexion, leases entire 62,000sf building near Peoria Ave & I-17 | Plans to hire 450

Metro Valley Light Rail Test Train Arrives in Mesa

Metromile | San Francicso-based insurance company opens office in Tempe, plans to hire 130+

Phoenix City Council agrees to ASU, Nantworks Biomedical Project - to compliment Downtown Phoenix Biomedical Campus

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DISCLAIMER (C) 2015 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 / ADOA / Bureau of Labor Statistics / Census Bureau / EBRC / HUD / Pierce-Eislen / US Chamber of Commerce / Vizzda / ARMLS

100+ UNIT PROPERTIES 10-99 UNIT PROPERTIES

NOTABLE RECENT ABI MULTIFAMILY TRANSACTIONS

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Price: $28,000,000Units: 160Year Built: 1989

PALM VALLEY APARTMENTS1891 North Litchfield Road, Goodyear, AZ

Price: $27,200,000Units: 264Year Built: 1997/98

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Price: $7,300,000Units: 78Year Built: 1985

POWER APARTMENTS845 North 3rd Avenue, Phoenix, AZ

Price: $1,165,000Units: 12Year Built: 1914

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The experienced advisors at ABI Multifamily have completed billions of dollars in sales and thousands of individual multifamily transactions.

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