Phoenix Theatre Company Buys Apartment Building in Central City, Readies for Big Expansion Article originally posted on AZ Central on July 26, 2023 Finding temporary housing in Phoenix often is challenging and expensive, so one group with needs for short-term shelter is taking an “entrepreneurial” approach. Phoenix Theatre Company bought a 36-unit apartment complex in central Phoenix to house visiting artists and generate funds as the company prepares to break ground on one of the largest expansions of a regional theatre company in the country. The company bought the apartment complex, on Fifth Street south of McDowell Road, for $7.6 million, according to real estate database Vizzda. The building is the second apartment complex the theatre company has purchased — in 2014 it bought another one, which has filled up with visiting artists and participants in the theatre’s apprenticeship program. “After the real estate crash in 2008, we saw that property values were really growing, especially in downtown Phoenix,” Vincent VanVleet, executive director at Phoenix Theatre Company said. “We knew it would be hard to find housing that was on shorter leases for artists who are visiting.” About a year ago the company began looking for a second building, as the apprenticeship program has expanded, and the theatre’s needs have grown. While Phoenix Theatre Company employs many locals, the company often has visiting actors, directors and other professionals. VanVleet said it is standard in the industry to provide housing for visiting artists free of charge, but most theatre companies rent space instead of buying it. “Phoenix Theatre Company is very entrepreneurial,” VanVleet said. “We looked at the long-term cost of leasing temporary housing versus owning it, and saw it was to our benefit to buy.” All units in the new apartment building are already leased, and VanVleet said the company will continue to lease some of the units, while using about 10 to house visiting artists and apprentices. Stays from visiting artists vary in duration, and can last about 10 weeks for an actor, four weeks for a director and two for other production positions, so it is important to have access to short-term housing, VanVleet said. Donny Peper, who is a board member for the company and a broker at Clear Commercial Advisors helped facilitate the sale. 500-seat theatre to begin construction The acquisition comes just before Phoenix Theatre Company will break ground on an expansion of its Hormel Theatre, which will expand from 250 seats to 500 seats. The $30 million project will begin next month, and construction is expected to complete at the end of 2024, with a grand opening planned in spring 2025, VanVleet said. The Hormel Theatre will close during construction and productions will continue at the company’s other two theatres. The company is still seeking a naming rights sponsor for its 14-acre campus, which includes three theatres. The Hormel Theatre will close during construction and productions will continue at the company’s other two theatres. The company is still seeking a naming rights sponsor for its 14-acre campus, which includes three theatres.