AZBigMedia
Development doesn’t happen without funding. New projects are built with investment capital, and that capital has been flowing freely into Arizona for projects that span the market spectrum. But will the capital keep flowing into the market, and if so, where will it be focused? AZRE Magazine posed these questions to investment capital experts Rodney Riley, director of acquisitions and development for Caliber Development and Adam Finkel, CCIM, principal and founder of Tower Capital.
AZRE: Reflect a little on how the views of the Arizona market have changed since 2010 for investors and lenders?
Adam Finkel: Arizona was one of the hardest-hit states in the Great Recession, and it has always been known as a “boom and bust” town, which has kept many investors at bay. For many years following the recession, capital was afraid to come to Phoenix and we didn’t get much love. Fast forward to 2019 and it seems we are one of the most attractive markets in the country for capital investment, for the reasons I have listed above. Furthermore, we have greatly diversified our economy and remain undersupplied for housing, and it seems like the inventory in most asset classes is in balance. About three years ago, I began noticing that private equity groups from the coasts started to become more interested in Phoenix as they learned more about the market dynamics and saw how we have strong fundamentals now. As folks become more exposed to the amazing opportunities our state has to offer, word has gotten out.
