CHANDLER, AZ-Real Estate Capital Partners' and Vedura Residential's partnership to build the 163-unit Elevation Chandler at 2300 W. Pecos Rd. was prompted, in part, by long-term ties. Elevation Chander represents the 13th investment of RECAP's Metropolitan Opportunity Fund III, and Vedura's second planned "Elevation" branded multifamily project in Arizona.
"Our company goes back years with Bruce Hart," comments Steve Henry, RECAP's vice president. Hart helped co-found Vedura Residential. Henry tells GlobeSt.com that his relationship with Hart goes all the way back to the Trammell Crow Residential days of the early to mid-2000s.
Also driving the JV relationship – and the project -- is terrific market fundamentals. Chandler is proving to be a good submarket in which to build. RECAP is no stranger to the greater metro Phoenix region – in August 2012, the company acquired the Arbors Apartments in Tempe. Henry acknowledges that RECAP has been eyeing Chandler for awhile as well.
"There's a great employment story there with several notable companies nearby," Henry explains. Chandler's Price Corridor has many employers of record including eBay Inc., PayPal Inc., Orbital Sciences Corp., Freescale Semiconductor Inc., Rogers Corp. and Avnet Logistics. Furthermore, in early March, General Motors announced it would build a new IT innovation center, which would employ up to 1,000 folks. "That center will be less than a mile away from our property," Henry says.
Given that RECAP seeks out local partners with which to partner on their investments, the relationship with Vedura on Elevation Chandler seems a good match. "As a company, we look to partner with the 'best of breed' local operators in their markets," Henry points out. "Bruce's and Paul (Fannin)'s track records make them great partners."
Elevation Chandler follows Vedura's initial development, Elevation Flagstaff at 5000 N. Mall Way, which opened last summer and has been leasing very well, according to Hart. "Flagstaff has positive momentum when it comes to job growth," he tells GlobeSt.com. Even better is that a new casino is opening in that city. "Given the regional medical center and other industries up there, we think our timing is great and we're happy with our lease-up there," Hart says.
And Hart agrees with Henry in Chandler's fundamentals for multifamily development. He also likes the Phoenix market overall – to that end, Vedura is planning a third multifamily property – Elevation Central, in Phoenix's CBD, which is anticipated to break ground by the end of the year.
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