Multifamily Booms in Roosevelt

We need two hands to count all the new multifamily projects rising in Roosevelt. (This also made us realize we need to moisturize more.) We asked MetroWest Development's Doug Gannett for a rundown of what's in his firm's pipeline.

The Chicago-based firm has been more and more focused on the metro Phoenix area. Doug tells us “The city has done a wonderful job setting the table up for developers." Besides creating new urban zones, there's also cost for development compared to Chicago. “We don't have problems with trades here. It's a non-union town. It's much more affordable.”

MetroWest is working on three projects in Phoenix: Townhomes on 3rd, Union @ Roosevelt (an apartment project, pictured), and the renovation of two historic properties and additional vacant land. Those are all in the Historic District. Doug likes Roosevelt's rebirth, with increased employment, restaurants, retail, and the light rail. Those aren't the only MetroWest projects on tap. The firm has tied up other sites in the area for a 20-unit project, a small six-unit project, and another 60-unit project. All are shooting for a $1.50 to $1.60/SF rental because those multifamily developers in Phoenix chasing $2/SF rents are “giving me heartburn.” What lenders want: "to be shown how you're going to achieve those rents,” he says.

MetroWest isn't the only multifamily developer in play. Doug even says there are another six projects aside from his in the pipeline for the Roosevelt area. Most recently, Habitat Metro announced plans for a second phase to Portland Place called Portland on the Park (above). “Am I concerned about how many units we bring to the party here in the next couple of years? Absolutely. But do I think the first ones out will get the preference? I absolutely think they will.” (Early bird gets the worm; early builder gets the tenant.)


Just an article I found on the web. A ton of activity for the Roosevelt district, obvious good news, but I won't believe it until I start seeing some buildings break ground. Thoughts?

I really don't see the negative with the skyscrapers up Central. Sure, if those buildings would've been downtown then we'd have more density and accelerated development, but mid-town is really hot right now. Dare I say it is rivaling Arcadia for new restaurants and small business.

Now, will there be more office towers Central? Maybe not, but I rather like the ones that are there today. Driving north down central is a pretty cool, unique experience. I think we will continue to see more small business and residentail take foot (4-10 stories) which will further increase the density in midtown.

I think honestly we are pretty lucky to have three hot areas right now with urban development, Downtown Tempe, Midtown and Downtown.

All of that sounds great and promising for Roosevelt. I'll just believe it (or, get excited) when dirt starts moving. If they really build all of those developments he mentioned, that would be awesome... less empty lots the better.

I'm not sure Midtown is 'hot right now". Park Central is still a huge, dead mostly empty shell right in the heart of midtown. Midtown office lease rates are horrible. Some cool eateries have opened, but thats about it.

The issue with Phoenix having up zoned so much land in the 60s-80s is that developers end up becoming land bankers. It costs them nothing to squat on land for decades, so our city is blighted with parking lots or dirt lots while developers wait for a demand (that's likely never coming) for 20+ story towers.

It still costs them property taxes, liability insurance, and (minimal) upkeep. That's a lot more than nothing, especially when compounded over decades, even if it is only a minor expense in comparisson to the entire company's portfolio.

The office component at Park Central is 21% vacant and the retail portion is 27% vacant. Not great by any means but far from a "dead mostly empty shell." As for Midtown, the office submarket has absorbed over 180,000 SF since Q2 13 when vacancy topped 30%, so its definitely getting better.

Its a lot to you or I, but to Colliers, its nothing. If it was something, they'd sell or develop.

But that's not accounting for all the wasted land at Park Central. Look at all that empty surface parking. If our city was healthy and booming, that land adjacent to 2 major rail stops would be already developed or soon to be developed at much higher densities.

Unfortunately, Park Centrals ownership is fractured between a few different groups and it seems hopeless in the near future.

You can't measure empty parking lots as inventory, even though I understand your point. Midtown is covered in empty lots from 3rd to 3rd from 1-10 to Camelback. It will take a crapload more residential in the area to make developing other retail and office space viable. Right now, it doesn't pencil out. Why do you think Barron Collier essentially gave up at Central and Indian School?

to my recollection, didn't nickw252 just point out a little progress on a new apartment project beginning there, by Park Central? That's something.

or is that just renovating an existing building??

Cornish Pasty
 

I spoke with someone from Cornish Pasty, and work has been going on some time now on their new downtown location at 3 W. Monroe St. Their goal is to be open by the end of the summer....

Looks like there is revived talk about constructing an observation tower in downtown Phoenix! I kinda like the spiral design and the ability to walk around and get the 360 view. What do you guys think? Do you like it? Do we think it will ever happen?

http://azbex.com/developers-look-to-...tower-project/

Do I like it?

I have no objection if it is built with private funds.

Do I think it will ever happen?

No.

Great! I was wondering what was up with that recently....seemed like it was announced forever ago and then went quiet.

I also wondering how long its going to take that place going into the US Bank building to open. I think its burgers or BBQ or something. They had some sign up proclaiming they won an award somewhere for 'best late night dining', I hope its a 24/7 diner kinda place.

Seconded.

So many folks have had such strong, borderline enraged feelings about something that's as likely to happen as the Suns ever getting the #1 pick in the NBA draft, it is odd.

Burger Joint Chicago. I don't think they are coming. Their website shows two locations in Chicago. Yelp and Zagat both say that they have received reports that they are closed. I called the number on their website and it has been disconnected.

Not sure if we are talking about the same site, but I think thenoriginal reference was to the ground level of Adams and Central, where Nick's101 was. The place is called Ted's BBQ or something similar.

And, wow, that's a comeback from nowhere for Cornish Pasty. They had started remodeling about 3 years ago and dropped off since... are they considered more of a restaurant or bar?

Excited that Hotel Monroe's retail is opening in such a healthy part of town.

For those that think Phoenix simply lacks the bones to ever develop into a world class city, I think you should take a look at Google Maps and check out the neighborhoods east and west of downtown for a glimpse of the population base that could be feeding into downtown if there was the civic or political leadership in place to empower revitalization.

To the east, Garfield shows signs: The Welcome Diner, Crossfit, along with random infill projects, show that both the residential and commercial sectors aren't scared of investing in the area. But, there's a lot of more work to do, and it's all possible, at least from 7th-12th. A healthy, arts-driven takeover of Roosevelt with First Friday inclusion might help; but, a restored building stock with a mix of incomes that are able to afford downtown expenditures would be a huge positive, and a reason why streetcar and calming of the 7s is so important.

To the west, at least as far as 15th Ave are houses with charm and character. But, again, they've been all but ignored with 7th ave serving as the divider between revitalization and slums. Grand Ave, government light rail, and street calming should all help.

And, that's why it's important for downtown to develop smartly so it can serve as the commercial and business center of the city of at least the area, with streets that allow connectivity to surrounding neighborhoods, its own empty lots filled with dense development so investment can move onto the peripheral areas, and make wise choices for prime land for the day that those neighborhoods are restored.

It's unfortunate that the "big" projects are the ones we need financially, yet are a threat to the urban vitality of the city, while the smaller infill projects are proving the civic pride, services, and local character so desperately needed.

Would love to know about the plans MetroWest was talking about- at least the sites. It always boggles my mind how little residential has been developed adjacent to Roosevelt Row. Portland, Moreland, Central to 3rd is essentially a blank canvas. These feed directly into Hance, so it's no wonder the
park is as dead as it is. I hope some projects are constructed around The Row, because the retail market is near 100% outside Roosevelt Point, so some new mixed use projects are sorely needed.

Older Building Stock
As far as lacking older stock to turn into successful, modern businesses, I don't agree. There's plenty of stock along Roosevelt, 12th St-15th Ave, Grand Ave, Jackson-Grant, and even Van Buren for small business. It's the size needed for residential or hotel projects that we lack, which is why the warehouse district will struggled to ever be more than a temporary, 9-5 kind of area. The buildings that might work all have issues that make living there seem not worth it: views of slums, power plants/jails/the sheriff as your neighbor...

There's a huge opportunity for education/connecting existing educational resource down there, though, that has gone unnoticed, which is really a shame. Perhaps through that synergy, a student population could be introduced - dorms don't need fancy views - and help commerce revive. Because, light rail is coming, and it'd be a shame for those buildings to languish when they have so much potential.

How are the costs for converting office towers into condos? Savings worth the effort, or no?

Midtown

I wouldn't say Midtown is booming, but it's doing better than it has in.. Forever. If all of the proposed residential projects come on board, that'll be a huge help in boosting office/retail rates.

I think both sides have a point in that there's a lot of momentum, but there are major holes in the area that will continue to suck out all of that energy until dealt with: Central/McDowell, Indian School Park, Central/Highland (unfortunately bring filled with an anti-urban fortress), Central/Camelback, etc. There's also the continued problem of the offices themselves, which turn their back to Central. Hopefully, the success of Mod spurs some similar remodels, but City incentives wouldn't hurt.

A city demonstration project on Central of Canalscape would also be awesome, given the renewed sense of importance placed on that idea.

A few corrections to your post.

The former Nicks 101 and possible opening of the new restaurant is in the U.S. Bank building on the corner of Adams and 1st Ave. Cornish Pasty has nothing to do with the Hotel Monroe. It will be across the street on Monroe in a former underground (literally) bar that used to be called Monroe's Wine & Spirits. :runaway:

Sorry, last post.

One thing I forgot to mention was Union Station. As obvious as it is to us, and as great as it would be, it will never serve as the central point of our transportation system. The south line of light rail could've been planned to least pass by it and keep open some ideas, but that was never on the table. The City allowed it, and it's beautiful Chambers neighbor, to be leased to awful companies that have threatened the integrity of the structures - it has never, and will never be, a focus of our government for Union Station to be a public amenity, by way of being a transportation hub or otherwise. 2nd stupidest mistake, IMO, with The Westward Ho's million-year lease being 1.

My hope is that the ASU art program is the first of many more educational investments into the area. Ideally, Phoenix College becomes a University, and houses its fine arts, real estate and sustainability courses in the Warehouse District. Union Station would be transformed into the Arizona Urban & Cultural History museum in the center, Valley Youth Theatre to the east, restaurant and open air patio to the west. The 1-acre of land would be turned into a park, with free weekend performances in the summer mornings by VYT, Phoenix U, Ballet TDC, etc. Land would be acquired to the south, and a HAWK signal and other safety precautions would allow the safe travel over the tracks onto this area, which would house a botanical garden filled with farmed ingredients for the restaurant as well as local art from students, tennis and basketball courts, and a new Performing Arts Center along 3rd, built in collaboration between those entities above, and Phoenix Job Corps, Phoenix OIC and others in the district with similar goals.

Along with light rail and any educational buildings built, hopefully we'd see a boom in warehouse investing, with entertainment and commercial uses in the warehouses, and midrise residential filling in the gaps.

There's also synergies in sustainability, marketing/creativity, and innovation just waiting to be fostered, with the APS H2O Power Park, Electric Transportation, EcoTality (car chargers), Vintage Industrial, Iiam (medical innovations), NRG, Moses, R&R and more in the area.

Soleri - I've always thought McDowell just west of the 51 would make the best gayborhood in Phoenix, given the street fronting businesses and grit that are perfect for bars and nightlife, with restaurants and housing hopefully to follow. It's interesting that it may have happened if not for the AIDS epidemic.

Melrose, unfortunately, just hasn't caught on within that community. I've never heard the district called by name, and we're always wishing for that kind of place we "own." Melrose's identity is as an eclectic central suburb with funky shops and a melting pot of culture, so it's no surprise gay bars have opened there. But, it hasn't ever been embraced, as you can tell by how scattered 'gay' establishments are throughout Phoenix. An area with more than 2 gay-friendly establishments in walking distance of each other, where we feel no less safe than 7th ave/Camelback and I think you might see the community start flocking closer and closer.

As far as a streetcar, I've had a similar wish. Roosevelt - McDowell, 16th St - 7th Ave (with Grand financing its own, or this could go south on 7th, up Grand to about 12th? I just like 7th's potential calming if a line went in.). I don't think density would be an issue. Potential for development is much more important, plus with the light rail so close, our densest neighborhoods are effectively connected. But, this puts some of our best cultural amenities on a transportation network which is so important: Banner, all of Roosevelt, Grand hopefully, 7th/McDowell..).

Thanks.

But, yes, I know Cornish Pasty is unrelated to Hotel Monroe. But, having it fill an empty space in the area will hopefully help the hotel fill its ground level.