ABI Multifamily Phoenix Metro Multifamily 1Q 2015 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 5.6% 5.6% 5.4% 4.4% UNEMPLOYMENT RATE $46,870 $44,256 $48,054 $70,922 MEDIAN INCOME $101,530 $43,373 $66,133 $68,800* 1Q 2015 AVG PRICE/UNIT (100+) $44,682 n/a $42,357 n/a 1Q 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 ESTIMATE FEB 2015 5.5% -0.6% Total Sales Volume Price/Unit Price/SF Year Built $675M $86,285 $107.75 1980 $245M $60,777 $74.29 1972 175% 42% 45% 8 yrs 1Q 2015 1Q 2014 INCREASE/DECREASE New Construction 220 826 73% AVERAGE 10+ UNIT PROPERTIES Effective Rent Vacancy Rate $765 5.2% $721 6.1% 10 + $44 0.9% *Denotes a Single Transaction

Transcript of ABI Multifamily Phoenix Metro Multifamily 1Q 2015 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

5.6%

5.6%

5.4%

4.4%

UNEMPLOYMENT RATE

$46,870

$44,256

$48,054

$70,922

MEDIAN INCOME

$101,530

$43,373

$66,133

$68,800*

1Q 2015 AVG PRICE/UNIT (100+)

$44,682

n/a

$42,357

n/a

1Q 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 ESTIMATEESTIMATE FEB 2015

5.5%-0.6%

Total Sales Volume

Price/Unit

Pr i ce/SF

Year Built

$675M

$86,285

$107.75

1980

$245M

$60,777

$74.29

1972

175%

42%

45%

8 yrs

1Q 2015 1Q 2014INCREASE/DECREASE

New Construction 220 82673%

AV

ER

AG

E

10+ UNIT PROPERTIES

Effective Rent

Vacancy Rate

$765

5.2%

$721

6.1%10 + $44

0.9%

*Denotes a Single Transaction

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

100+ UNIT PROPERTIES

10 - 99 UNIT PROPERTIES

TOP 3 TRANSACTIONS BY PRICE/UNIT (100+)DomusPhoenix, 223 units | $51.55M | $231K/unit | $297.68/sf | Yr. Blt: 2014

IndigoPhoenix, 101 units | $18.1M | $179K/unit | $143.35/sf | Yr. Blt: 2014

Trillium NorthPhoenix, 274 units | $42.49M | $155K/unit | $160.52/sf | Yr. Blt: 2012

1Q 2015 Transactions by Year Built# of Transactions Avg Price/Unit Avg Price/SF

2010+2000-091990-99

1980-89 Pre-1980

3 $188K $1995 $134K $1423 $112K $1168 $65K $898 $40K $64

1Q 2015 Transactions by Year Built# of Transactions Avg Price/Unit Avg Price/SF

2010+2000-091990-99

1980-89 Pre-1980

0 n/a n/a2 $180K $1350 n/a n/a11 $45K $6822 $48K $61

TOP 3 TRANSACTIONS BY PRICE/UNIT (10-99)Dolce Villagio TownhomesTempe, 37 units | $7M | $189K/unit | $132.95/sf | Yr. Blt: 2007

Chester Place LoftsPhoenix, 11 units | $1.65M | $150K/unit | $145.57/sf | Yr. Blt: 2008

Arcadia Park PlacePhoenix, 13 units | $1.3M | $100K/unit | $58.14/sf | Yr. Blt: 1964

22000-09

Transaction=

Total Sales Volume

Price/Unit

Pr i ce/SF

Year Built

Effective Rent

Vacancy Rate

$619M

$91,494

$113.49

1989

$846

4.5%

$192M

$69,001

$80.71

1987

$789

5.6%

222%

33%

41%

4 yrs

$57

0.9%

1Q 2015 1Q 2014

AV

ER

AG

E

INCREASE/DECREASE

1Q 2015 1Q 2014

Total Sales Volume

Price/Unit

Pr i ce/SF

Year Built

Effective Rent

Vacancy Rate

$56M

$52,952

$69.13

1973

$684

5.9%

$53M

$42,347

$57.56

1967

$653

6.6%

5.7%

25%

20%

6 yrs

$31

0.7%

AV

ER

AG

E

INCREASE/DECREASE

81980-89

8PRE-1

980

3

2010+

5

2000 - 09

31990-

99

NUMBER OF TRANSACTIONS BY YEAR BUILT

11

1980-89

22

PRE-1

980

NUMBER OF TRANSACTIONS BY YEAR BUILT

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 7,900+17.7%, YEAR-OVER-YEAR+31.9%, MONTH-OVER-MONTH

MEDIAN SALES PRICE $200,000+7.0%, YEAR-OVER-YEAR MEDIAN

AVG DAYS ON MARKET 92+9, YEAR-OVER-YEAR-3, MONTH-OVER-MONTH

AVG SALES PRICES $256,500+3.1%, YEAR-OVER-YEAR AVERAGE

FORECLOSURES PENDING 5,662-24.2%, YEAR-OVER-YEAR-0.3%, MONTH-OVER-MONTH

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

$256,500 10,345

26,483

5,662

$200,000

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

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 5 - P R E S E N T | 1 s t Q U A R T E R 2 0 1 5

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

220*

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

COMPLETED CONSTRUCTION

UNIT COMPLETIONS

CURRENTLY UNDER CONSTRUCTION

PLANNED PROJECTS

PlannedTotal # of Units: 15,947Total # of Properties: 62

Under ConstructionTotal # of Units: 13,321Total # of Properties: 56

* = 1Q 2015 UNITS DELIVERED** = ABI 2015 ESTIMATE

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

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

Home Depot | Plans to hire 1,500 throughout Phoenix Metro

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

IRIS Ohyama, a Japanese manufacturer, expands into Surprise with $40M facility | To bring 100+ jobs to the area

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

Tallwave and Hansji Corp. launch High Tide @ Luhrs City Center | Tech incubator which provdes accepted start-ups with rent free office space

Revana, Tempe-based tech firm which specializes in sales software to expand | 250 jobs at Tempe HQ

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

Western Maricopa Education Center breaks ground on Buckeye campus to house up to 650 students with plans to expand to Surprise

Orion Health, a population health management firm, expands data offerings | To hire up to 200

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

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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

AVENUE 25 APARTMENTS18250 N 25th Avenue, Phoenix, AZ

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

HAWTHORNE CONDOMINIUS3848 North 3rd Avenue, Phoenix, AZ

Price: $19,110,000Units: 182Year Built: 1996

DOLCE VILLAGIO TOWNHOMES202 South Hardy Drive, Tempe, AZ

Price: $7,000,000Units: 37Year Built: 2007

CHESTER PLACE LOFTS842 North 6th Avenue, Phoenix, AZ

Price: $1,650,000Units: 11Year Built: 2008

Apartment Brokerage & Advisory FirmABI Multifamily is a brokerage and advisory services firm that focuses exclusively on apartment investment transactions.

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

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