PCCP, LLC announced that it has provided a $49.2 million senior loan to IDM Companies for the ground-up development of Acero Algodon, a Class A garden-style multifamily community located within the West Valley of Phoenix, AZ. Situated on 20.5 acres at N 91st Avenue between W Osborn Road and Thomas Road, Acero Algodon will total 458 units across 24 three-story buildings and feature modern amenities as well as surface, covered and garage parking totaling 901 spaces (1.97 per unit). The financing was arranged by David Kidder, Adam Deermount, Steve Sims and John Meek with Landmark Real Estate.
“IDM Companies is a repeat borrower with PCCP and has a strong 25-plus year track record of suburban multifamily development,” said Michael Johnson, Senior Vice President with PCCP. “This project is well-located in one of the fastest-growing markets in the United States and is poised to provide high quality apartment living for area residents.”
Located one-half mile northeast and two miles north of on-ramps to the 101 Loop and I-10 freeway, respectively, Acero Algodon is situated within Algodon Center, a 1,200-acre corporate and medical office development along the 101 Loop. The property is currently the only site in the master plan approved for multifamily development. The project is expected to break ground imminently and be delivered in phases, with the first units planned to deliver in mid-2021 and completion of the entire project anticipated in mid-2022.
The project will have an average unit size of 970 square feet and include 196 one-bedroom units, 238 two-bedroom units and 24 three-bedroom units. All floor plans will feature quartz countertops, stainless steel appliances, vinyl plank flooring (with carpet in bedrooms), walk-in closets, in-unit laundry rooms, and private patios or balconies. On-site amenities are planned to include two resort-style swimming pools, fitness center with yoga and spin studio, business center, community lounge and kitchen, game room, dog park, and BBQ and picnic areas. All amenities will be available to tenants 24/7 through keycard access.
The West Valley is the largest multifamily submarket in Phoenix and has traditionally attracted renters through its relative affordability. Also fueling renter demand is the growing population in the West Valley, which is similarly present near the project. The population within a three-mile radius of the site grew 6.5 percent this cycle and is projected to grow another 6.8 percent by 2024.
The Phoenix economy is now the 11th largest metro in the United States. Phoenix ranked second in population gains across all U.S. metros between 2018 and 2019, adding 96,000 residents during the period, and today outperforms national population growth by 2.2 percent.
IDM companies was founded in 1993 and is headquartered in Vancouver, WA. The company has developed more than 3,500 multifamily units in the Pacific Northwest and currently has 3,357 units under management across 19 properties. Including this project, the company has five developments totaling 1,700 units either under construction or in the pipeline in the Phoenix area.