Alliance Residential to Develop Broadstone Midtown Apartments in Phoenix

Article originally posted on Business Real Estate Weekly on January 17, 2017

Photo Credit: ORB Architects

Phoenix – Alliance Residential Co. in Phoenix (Bruce Ward, Bob Hutt, Jay Hiemenz, partners) plans to develop a 200-unit luxury apartment complex at the northeast corner of Third Avenue and Osborn Road in midtown Phoenix. A joint venture entity formed by Alliance Residential paid $6 million ($56.96 per foot) to buy the 2.4 acre site, which is now occupied by two buildings that were built in the late 1950’s. The seller was 240 Osborn LLC, formed by NOVO Development LLC in Scottsdale (Kurt Rosene, manager) and investor Jacob Long of Phoenix. Alliance Residential is developing the upscale apartment community in joint venture with Appian Capital LLC of Larkspur, Calif. (Jonathan Lotter, managing partner). The project is being called Broadstone Midtown. Design plans from ORB Architects in Phoenix show a four-story residential building above two levels of podium parking. The one-, two- and three-bedroom units will range from roughly 625 sq. ft. to 2,100 sq. ft. Monthly rental rates to run from $1,200 to $3,200. Construction scheduled to start second quarter of this year, with opening expected third quarter 2018. Build out to require 24 months. Alliance Residential Builders to serve as contractor. Development cost (land and buildings) estimated at more than $40 million. Construction financing has yet to be arranged. The transit-oriented development will be located less than three blocks from a light rail station. The site for Broadstone Midtown is now occupied by the Murdock Professional Building at 240 W. Osborn Road and the Federal Housing Administration Building contiguous west at 244 W. Osborn Road. Those two-story structures were built in 1958 and 1959. A portion of one of the vacant buildings will remain in place and is being incorporated into the multi-family project. Alliance Residential, which has been the nation’s busiest apartment developer the past two years, has acquired, developed and sold numerous multi-family communities in the Valley. The company, which has developed and sold some of the highest priced apartments ever recorded in Arizona, is looking for additional apartment investment and development opportunities in the Phoenix area. Alliance Residential and Appian Capital are also venture partners on Broadstone Gilbert Heritage, a 256-unit apartment project under construction at 230 E. Civic Center Drive in Gilbert.