By Angela Gonzales | Phoenix Business Journal
A Scottsdale multifamily investor is in the midst of a giant pivot as it buys land to build more single-family hybrid rental communities.
With two projects already under construction near South Mountain, Avenue North LLC is working on two more projects in Phoenix and another in Las Vegas.
Avenue North is not alone in jumping on this wildly popular build-to-rent concept that combines the luxuries of single-family homes built within a rental community — complete with their own backyards.
Colliers International has tracked 22 of these build-to-rent projects representing more than 3,800 units that are currently under construction.
This is adding to 3,750 units that currently exist in metro Phoenix, largely thanks to two pioneers that are making the concept so popular among developers — Phoenix-based NexMetro Communities LLC and Mesa-based Christopher Todd Communities.
“From a developer/investor perspective, these projects not only performed well pre-COVID but have performed amazingly well in the post-COVID world with current rents averaging close to $1,650 a month, up 23% since the first quarter of 2018,” said Thomas Brophy, national director of research and analytics for Colliers.
Read More (subscriber content)