A joint venture of Toll Brothers Apartment Living and Willton Investment Management has begun the development of Lumara, a 456-unit luxury community in Phoenix. Financing for the project includes an $86 million construction loan from Santander Bank N.A. The equity and debt were arranged in-house.
The development team includes Biltform Architecture Group, landscape architect Collaborative V Design Studio Inc. and civil engineer Hubbard Engineering. Lumara is set to come online in early 2025.
Common-area amenities at the 13.5-acre, four-story property will include a swimming pool, rooftop terrace, virtual sport simulator, business conference room, along with 700 parking spaces and EV charging stations.
The property will rise at 25255 N. 19th Ave. in the Deer Valley submarket, close to employers such as USAA, Wells Fargo, and Farmers Insurance. The Shops at Norterra and Happy Valley Towne Center will be within a 1-mile radius. The site is also in the vicinity of Cabana Happy Valley, a 292-unit Class A community that came online earlier this year.
Toll Brothers extends Phoenix inventory
Toll Brothers currently owns two completed multifamily assets in the market, as well as four others in various stages of development, Yardi Matrix shows. When completed, the communities will encompass over 2,150 units. One of the properties under construction, a 313-unit rental project, has recently received $65 million in construction financing.
Earlier this month, the developer announced a joint venture with Canyon Partners Real Estate for the development of Navona, a 400-unit luxury community in Mesa, Ariz., that will open in the fall of 2024. In May, Toll Brothers, in partnership with The Davis Cos., announced the opening of Callia, a 403-unit community that was designed in partnership with Biltform.
Phoenix sees strong pipeline
A Yardi Matrix report shows that 5,892 units were delivered year-to-date as of July in Phoenix, while an additional 37,606 units were under construction. Roughly 18,600 units are expected to come online this year, accounting for the second-largest expected delivery volume, after Austin.
Transactions in the market through October amounted to $2.5 billion across 39 properties sold, a steep decline from the 181 communities that traded during the same period of 2022 for $10.4 billion. Comparing the same time frames, the per-unit price also dropped, from $330,039 in 2022, to $289,994 this year.
