PCCP, LLC announced that it has provided a $39.4 million senior loan to IDM Companies for the ground-up development of Acero Glendale, a Class A garden-style multifamily community located at the northwest corner of 95th Avenue and Missouri Avenue in Glendale, AZ (the West Valley of Phoenix). The project will total 352 units across 18 residential buildings and is situated on 15 acres. The first units are expected to deliver in mid-2021, with completion of the entire project anticipated in 2022. The financing was arranged by Adam Deermount, Steve Sims, and John Meek with RanchHarbor, and David Kidder with Landmark Real Estate.
The 352 units will have an average size of 986 square feet and include a mix of one-, two- and three-bedroom floor plans. Unit interiors will include hard surface countertops, vinyl plank flooring (with carpet in bedrooms), air conditioning, in-unit laundry rooms with washer and dryer, private patios and balconies, and stainless steel appliances. The common area amenities will feature two pools, a fitness center, leasing office, community room and lounge with kitchen, and outdoor common areas.
The project will offer its residents convenient freeway access, as the site is situated directly east of the 101 Loop with ingress/egress located less than one-half mile away. The freeway allows for quick access to employment centers within the West Valley, such as the Banner Estrella Health Center, a full-service medical campus which is one of the largest hospitals and employers in the state. Additionally, the site is just south of the 64,000-seat State Farm Stadium (home to the Arizona Cardinals), as well as Top Golf, the Tanger Outlets, and the Westgate Entertainment District, a large mall with several restaurants and retailers.
“PCCP is pleased to provide financing to an experienced, repeat borrower, IDM Companies,” said Michael Johnson, Senior Vice President with PCCP. “This well-located project will offer high quality multifamily product to a growing area of Glendale.”
Johnson noted that in March 2020, PCCP 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 also located within Phoenix’s West Valley. Acero Algodon will total 458 units across 24 three-story buildings.
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 4,455 units under management across 22 properties. Including this project, the company has five developments totaling 1,700 units either under construction or in the pipeline in the Phoenix area.