Arizona and Colorado, The Top West Coast Target Markets

Arizona and Colorado are among the top multifamily target markets on the West Coast. Hines is now expanding its multifamily business in the two markets, and has tasked Robert Trujillo, who was recently hired as a managing director, to expand in the markets. Hines already has a presence in these markets, but the recent growth in these markets and improving fundamentals has encourages the investor to grow its presence in the markets.

“Hines has played an important role in the development of cities across the United States and around the globe, and Phoenix and Denver are two cities where Hines’ iconic office buildings are visible,” Trujillo tells GlobeSt.com. “It is Hines’ strong presence and long history in these cities that has given us a deep understanding of the real estate fundamentals that drive local growth whether in commercial or residential development. Hines believes multifamily demand continues to be strong in Phoenix and Denver given the consistent high-quality job growth and population growth we’re experiencing as these cities mature as 24-hour urban centers.  Our objective is to build multifamily properties that mirror the quality and sustainability Hines has accomplished with office development in these markets.”

Trujillo says the firm will focus on creating a diverse portfolio of multifamily communities, including high-rise, mid-rise and garden apartments. It will focus on walkable urban and suburban neighborhoods with strong employment centers. “Hines prides itself on having a highly sophisticated internal market research division, which we believe is the best in the real estate industry,” adds Trujillo. “We take a very disciplined approach to site selection and building the “right” product to serve the specific demographic profile seeking a lifestyle we’re providing in other U.S. markets with great success.”

In addition to Trujillo, Hines is also expanding its development business. The firm hired Jim Bulsiewicz as a development associate to focus on development Arizona and Colorado. Hines will also develop multifamily properties in these markets using what it calls a top-down approach, using the same criteria as its investment model, like walkability and job centers. This year, Hines plans to stick to this strategy rather than focus on specific volume or acquisition goals. “We are sourcing the best locations to build best-in-class properties, and we manage our properties with the best property management teams in the industry,” explains Trujillo. “We have an established local Hines team with expertise in development, construction and property management across the real estate spectrum. We’re on our way to building deep roots in Arizona and Colorado.”

Phoenix in particular has been a popular investment destination for multifamily capital this year. Trujillo says that employment and population growth is playing a big role in investment demand. “Within the Phoenix market, we’re targeting high-visibility urban submarkets in downtown Phoenix, Scottsdale and Tempe, and we’re focusing on sites with potential for 24-hour live/work environments,” he says. “We’re seeing a national transformation of our cities where young and old residents are choosing to coexist in high-energy locations where amenities not only exist within the communities we build, but in the neighborhoods surrounding our buildings as well.  We’re beginning to see this same evolution of development in the north and southeast Phoenix suburbs, so we’re looking at several suburban areas for expanding our multifamily portfolio in these areas as well.”