Ground broken on Phoenix affordable housing apartment complex
PHOENIX — A new affordable housing apartment complex broke ground last week near downtown Phoenix.
The complex, called St. Ambrose apartments, will include 235 units across 129,000 square feet near the intersection of 11th and Van Buren streets.
The project was developed by investment groups Defer Gain and Pacific Oak Capital Advisers. It is located within a downtown Phoenix opportunity zone.
Opportunity zones are spaces where people can reinvest their capital gains taxes into low-income neighborhoods, resulting in those tax dollars being reduced or eliminated entirely from the property, if held for 10 years.
The city’s 42 opportunity zones were created via the Tax Cuts and Jobs Act of 2017, with the Phoenix City Council approving the zones locally on Feb. 13, 2018.
The new complex will feature apartments that are 30% below the downtown core’s average, according to a press release. Average monthly rent at St. Ambrose will be $1,051 per month, with units starting at less than $1,000.
Michael Lafferty, who serves as the principal of Defer Gain, thinks the St. Ambrose complex can spur economic development in the city, especially among those hardest hit economically by the coronavirus pandemic.
“We’re looking forward to helping lead the revitalization of this area,” Lafferty said in the release. “This project has been in development for many years and will offer Phoenix residents first-class amenities at an affordable price point, making it a great option for those downsizing amidst the pandemic or facing credit issues.”
St. Ambrose is slated to be completed by 2022.