Phoenix - Epoch Properties Inc. in Winter Park, Fla. (Kyle Riva, pres.) plans to develop 292 apartments in a $50 million project that should bring about 400 residents to downtown Phoenix. A 1.92-acre parcel located along the south side of Washington Street at 12th Street is targeted for 152 units and a 1.87-acre site located along the north side of Washington Street at 11th Street (alignment) is planned for 140 units. A company formed by Epoch paid a combined $8.1 million to buy the properties from a trust and company formed by Michael Lafferty in Phoenix. The deal was negotiated by Mark Forrester an Ric Holway of Hendricks Berkadia in Phoenix. The downtown apartment projects will be the first in the Valley for Epoch Properties. Since 1970, the privately-held firm has developed more than 32,000 multi-family units in 55 cities located from Florida to California. While the upscale apartments on Washington Street will be the first for Epoch in the Phoenix market, Riva says hopefully it will not be the last. The company is now investing from its Epoch Multi-family Opportunity Fund II and is looking for sites in the Valley to develop more apartments.
The two apartment communities in Phoenix, being called 11 Capital Place and 12 Capital Place, are being designed by Archicon. Plans call for two, four-story structures each on top of one-level of podium parking. Riva says construction slated to start second quarter 2014, with opening to follow in early 2015. Build out expected third quarter 2015. Contractor still to be selected. Studio, one-, two- and three-bedroom units to range from 890 sq. ft. to 1,500 sq. ft. Monthly rental rates projected to run from $1,200 to $2,400. Development cost (land and buildings) estimated to be approaching $50 million. Construction financing yet to be arranged. Epoch may decide to develop the Phoenix apartments in a joint venture and is likely to hold the assets for investment after completion of construction and lease up. Epoch will manage the multi-family projects, which will both be adjacent to light rail stops at 12th Street. There is a light rail station on Jefferson Street going east and on Washington Street going west. Riva says typical tenants will be young professionals with ties to the legal industry, the downtown campus of Arizona State University and the nearby Phoenix Sky Harbor International Airport. The sites for the newly planned apartments are about one block apart on opposite sides of Washington Street. The 12th Street parcel, which is bordered on the south by Jefferson Street, has a roughly 35,000-square-foot structure in place that once was headquarters for Lafferty Electric. That building, which Lafferty has been using as a warehouse, will be razed for the new apartments. Records show Epoch Downtown Phoenix Apartments LLC paid $4.292 million to buy the site for 12 Capital Place, which is at 1209 E. Washington Street. The seller in the cash sale was Michael J. Lafferty Revocable Trust. In the other property sale, Epoch Downtown Phoenix Apartments LLC paid $3.808 million to acquire the site for 11 Capital Place. The seller in that cash sale was 1100 East Washington LLC (Lafferty's company). That parcel, which is at 1012 E. Washington Street, has a 31,000-square-foot retail building that will be razed. In June 2012, Lafferty's company paid just under $2.219 million to buy that property from Azteca Wedding Enterprises Inc. in Phoenix. The long time bridal business owned by the Torrez family still operates from a 25,771-square-foot building it owns next door at 1010 E. Washington Street. That commercial structure will remain in place. After moving Lafferty Electric from the 1209 E. Washington Street property in 2004 and then selling the business in 2006, Lafferty has been pursuing opportunities in solar technology. He also took the two Washington Street parcels through the entitlement process, paving the way for the multi-family projects. Lafferty says he is involved with the “urban movement” in downtown Phoenix and is exploring opportunities to bring amenities to the area that will support the residents that Epoch Properties will attract.
Get more from Riva at (407) 644-9055. Call Lafferty at (602) 220-9696, ext. 202. Forrester and Holway are at (602) 955-1122.