Workforce housing project to break ground in downtown Mesa

Phoenix Business Journal

Scottsdale-based CaliberCos Inc. is set to begin construction in February for a 144-unit workforce apartment community in downtown Mesa as part of its redevelopment of that area. Since 2017, Caliber has acquired 10 buildings and 160,000 square feet of mixed use space in and around downtown Mesa, with financing provided by Caliber’s Opportunity Zone Fund. Called The Commons of Mesa, that housing project will be part of Calber’s Opportunity Zone Fund portfolio to redevelop downtown Mesa, said John Hartman, chief investment officer of Caliber. Financing for the $42.2 million housing project will come from $9 million in an equity raise and a $32.5 million construction loan from United States Department of Housing and Urban Development. Caliber is co-developing this project with Wisconsin-based Cardinal Capital Management Inc., which currently owns the site and specializes in multifamily and workforce housing. Cardinal will make a contribution of $700,000.Late last year, Mesa city officials said there were more than$500 million worth of projects in the works to help revitalize downtown.

The Commons of Mesa will include 48 one-bedroom units and 96 two-bedroom units ranging between $1,700 and $2,000 in monthly rental rates. Hartman said he hopes to have the first buildings out of the ground within six to 12 months. The project is near ASU at Mesa City Center, which is expected to open this spring. “We think there’s probably a number of students who are going to want a two-bed, two-bath with a roommate,” Hartman said. This project comes at a time when 13,000 new apartment units are expected to be delivered in 2022, according to Colliers International’s Phoenix MSA Multifamily Construction Breakdown. The coronavirus pandemic and related supply chain issues hampered deliveries last year, according to the report. While between 9,500 and 11,500 units were expected to be delivered in 2021, only 8,072 new units were delivered, representing 7.9% below the 8,767 units that were delivered in 2020.

Angela Gonzales
Senior Reporter
Phoenix Business Journal