Venture on 19th

• 65-75% ($2,925,000-$3,375,900) Loan
• 5-28% ($250,000-$1,400,000) Preferred Equity Capital from Offering
• 5-20% ($500,000-$1,000,000) Preferred Equity Capital from Neighborhood Ventures Fund LLC

After two years, we expect the property to sell for $150,000 per unit.

Average Rents 

One-bedroom one-bathroom units

Neighborhood Average  $864/month

Zip Code Average           $887/month

19th Current Average Rent    $766/month

Venture on 19th Avenue is located at the West Phoenix Submarket.

Development 

Databex, the Arizona construction project database developed and maintained by BEX Companies (fka Arizona Builder’s Exchange), lists 30 projects recently completed, in active planning, or under construction in the four ZIP Codes making up the West Phoenix Submarket.

The $1.46 Billion project scope crosses nearly all types of commercial and residential development, including multifamily, transportation, industrial, infrastructure, education, and urban expansion.

Grand Canyon University (GCU)

Grand Canyon University is the West Phoenix submarket’s private economic development powerhouse and has been for several years. As of the beginning of the 2020 – 2021 school year, GCU has a total enrollment of roughly 20,500 students on campus and 81,000 students online, totaling over 100,000 across all its program offerings.

To enhance its capabilities in research, philanthropic solicitation, NCAA Division I participation and ability to continue a 10-year tuition freeze, GCU transitioned from a for-profit entity to non-profit status in July 2018. The arrangement was approved by the Arizona regulators and by the Higher Learning Commission, GCU accrediting body. In 2015, GCU President Brian Mueller detailed his goal to ultimately expand the university’s holdings to 400 acres, with facility and supporting investment to match. That same year, an economic analysis by Elliot D. Pollack & Co. estimated an impact of $11.1 Billion related to the expansion activities for the years 2010-2019.
 

The BEX Companies’ database lists seven projects of more than $5M in value underway or completed between mid-2016 and January 2021, with direct construction cost estimates of more than $320 Million.

Grand Canyon University (GCU) – University Development & Community Transformation

West Phoenix is where GCU calls home. That's why GCU stands committed to transforming the surrounding neighborhoods into a safe, thriving place for those in the community to live with hope and better futures. Along with providing academic excellence and a vibrant campus life, GCU believes its purpose is to partner together to implement initiatives in the area that open educational opportunities for all, create jobs, restore housing and reduce crime. GCU calls this United by Purpose.
 

One aspect of this transformative endeavor starts with the new development project at 27th Avenue and Camelback Road that's changing the face of the Canyon Corridor. Developed to be the gateway into West Phoenix, this new development will serve as a commercial hub featuring:
 

(1) A four-story office complex
 

(2) Renovated GCU Hotel, resort-style pool, and fitness center
 

(3) Canyon 49 Grill and Grand Canyon Beverage Co. coffee shop
 

(4) Building that will be home to a future business, economic, and education innovation center
 

This development is only the beginning for reshaping West Phoenix into a destination of economic, tourism, business, employment, and educational growth. Our new enterprises (GCU Golf Course, GCU Hotel, Canyon 49 Grill, Grand Canyon Beverage Co.) also play a role in reviving the local community.
 

GCU's campus continues to grow to meet the needs of students and cultivate world-class learning experiences.
 

(1) State-of-the-art GCU Stadium and GCU Arena

(2) Contemporary residence halls and apartments with resort-style swimming pools

(3) Two new engineering classroom buildings dedicated to cutting-edge STEM learning

(4) The Grove - a community of four suite-style residence halls exclusively for freshmen

(5) Division I athletics, club sports teams, intramural sports teams

Valley Metro Light Rail

At 28 miles and counting, the Phoenix area’s Valley Metro Light Rail project has been a major development catalyst since construction began in 2005.

As of mid-2019, light rail is credited for spurring an estimated $11 Billion in private development within a half-mile radius of its lines.

Impacts of light rail and other Transit-Oriented Development efforts extend across a variety of industries, with one recent study identifying an 88% increase in new knowledge sector businesses, 40% in the service sector, and 28% in retail new starts as compared with the area’s traditional “automobile-accessible control areas”.

Phoenix and regional economic development leaders cite the introduction and expansion of light rail and associated developments as a primary contributor to the area’s nation-leading in-migration appeal. Mesa received the first major expansion, 3.1 miles along Main Street from Sycamore to Mesa Drive in 2015, as well as a second extension of 1.9 miles from Mesa Drive to Gilbert Road in 2019.

Market Information

The Phoenix economy suffered a relatively mild downturn during the COVID 19 induced recession during the first half of 2020 and is already in recovery, adding back almost 80% of jobs lost by November 2020. Nevertheless, the metro’s recovery will slow during Q1 2021 due to rising COVID-19 cases and a softening U.S. economy.

The multifamily sector has been remarkably resilient in the face of the pandemic supported, in part, by ongoing migration to the metro. Over 76,000 residents flocked to Phoenix in 2020, on par with 2019’s 78,000 new residents. As a result, not only does the average vacancy rate remain low by historic standards at just 4.8% as of Q3 2020, but the average rate has returned to pre-pandemic levels already. Further, overall, rents have bounced back in the metro with an average quarterly rent growth of an about +1.25% in Q3 2020. Even so, certain submarkets which are more densely populated and have seen strong growth in new supply over the past few years such as Central Phoenix, North Tempe, and Scottsdale and have seen vacancy rates increase and rents continue to decline as residents choose to live in less populous West and East Valley locations where rents are cheaper, and it is easier to be socially distant.

With the COVID 19 vaccine starting to be administered, the economy is likely to rebound strongly in the latter part of 2021 as more and more residents are vaccinated. Longer-term, Phoenix is likely to remain one of the strongest economies in the country due to a warm climate and relatively low business and living costs. This and the vast amount of available land should continue to attract both employers and population long-term. As a result, the Phoenix economy should continue to outperform the national economy over the long run. 

Above-average job and population growth bode well over the longer-term, five-year forecast. With the metro’s 20-to-34-year-old population cohort expected to expand, the multifamily sector seems well-positioned to meet future demand. 

Economic Profile - Workers 

Due in large part to the climate, tourism is one of Phoenix's top industries. Roughly 43 million people fly through Sky Harbor Airport each year, making the Valley of the Sun the starting point for many travelers' Arizona vacations and providing a need for workers in the leisure and hospitality sectors. 

Phoenix is also developing into a technology hub, with many web-based companies like GoDaddy and InfusionSoft finding a home here. Residents also find work in the financial services industries, with Wells Fargo, Bank of America, American Express, and JPMorgan Chase & Co. employing large numbers of locals.   

The unemployment rate in Phoenix is slightly below the national average.
 

Job Market Index Score: 6.5 /10 

Average Annual Salary 

• Phoenix- $50,520 
• USA- $51,960

Top Industries in Phoenix

• Health Care and Social Assistance- Total Employment 277,300 (Nursing Aid Salary: $24k - $34k) 
• Administrative and Support and Waste Management and Remediation Services- Total Employment 206,500 
• Accommodation and Food Services- Total Employment 201,000