Recently, Milhaus, an award-winning national builder of Class-A multifamily properties, announced that it would be expanding in north Tempe. The new project broke ground in March of 2021 and is reportedly one of the largest the company has undertaken. The future home of Milhaus?s next Arizona development is located within one of Maricopa County’s designated opportunity zones. Here is more on this new development coming to north Tempe’s opportunity zone.
Milhaus North Tempe
According to a recent report, Indianapolis-based developer Milhaus, a national multifamily developer and owner and operator of Class-A multifamily housing, will be building a new development called Milhaus North Tempe. The company has partnered with Los Angeles-based development firm Banyan Residential to complete the project. The $177 million development will have two phases. The first phase will cost an estimated $91 million to complete.
Milhaus North Tempe will be located at the southwest corner of Miller and Curry Roads at 1245 E. Curry Rd. in Tempe. The new complex will sit a mile away from Arizona State University, one and a half miles from downtown Tempe, and just a quarter of a mile from Tempe Town Lake.
The property will feature 310 units in its first phase and will total 621 units upon completion. Residents will have a choice of leasing a studio apartment or a one, two, three, or four-bedroom unit. The new complex will have high-end amenities such as an on-site library, an outdoor spa, a fitness center, a property clubhouse, grill stations, a pool deck, and a dog park.
Milhaus Vice President of Development Brad Vogelsmeier commented on the project, saying, ?I can?t think of a better place for Milhaus to join the Arizona market than Tempe.? Vogelsmeier also related that ?The employment opportunities, entertainment scene and proximity to ASU and Tempe Town Lake make it an appealing location both for residents and developers alike. We are excited to bring such a strong residential presence to a growing area alongside a great partner in Banyan.?
North Tempe Opportunity Zone Development
Milhaus North Tempe is being developed inside an IRS Qualified Opportunity Zone. Qualified Opportunity Zones were established by the Tax Cuts and Jobs Act of 2017. Opportunity zone investors can realize capital gains tax savings by re-investing their profit from selling non-homestead real estate, stocks, a business, or other investment within 180 days of the sale. By investing in an opportunity zone, the investor can defer paying taxes on the capital gains they re-invest into the designated area. After ten years, If the investor holds the investment in the Qualified Opportunity Funds (QOF) for at least ten years, ?the investor is eligible to elect to adjust the basis of the QOF investment to its fair market value on the date that the QOF investment is sold or exchanged.? Opportunity zones tax breaks are meant to attract investment and hasten development in underserved areas that need affordable housing, increased business traffic, and more jobs. According to a recent report, there are 85 opportunity zones in the Metro Phoenix area and 168 throughout Arizona.
Milhaus North Tempe is reportedly Milhaus’s ?fifth project funded by Opportunity Zone capital and the first of four planned Opportunity Zone developments in 2021.? According to the developer?s website, about half of ?Milhaus? development pipeline is in an Opportunity Zone.? The company also reports that it has ?closed four opportunity zone projects and will raise an additional $200 million of equity for projects closing by December 2021.? Milhaus is reportedly managing over $350 million in opportunity zone assets.
Other significant opportunity zone developments are reportedly underway in the Phoenix area, including projects involving Amazon, Arizona State University, and Nike. There are also numerous Phoenix-area opportunity zona apartment developments and hotels either in the planning stages or under construction.
Laura B. Bramnick is an Arizona real estate attorney with the knowledge and experience you need to protect your interests during every stage of your real estate matter. If you are seeking an exceptional, client-driven real estate lawyer in Scottsdale, Phoenix, Sedona, and throughout the State of Arizona, contact Laura B. Bramnick to schedule your consultation.