By InBusiness Phoenix
Caliber, a real estate investor, developer, and manager, announced the recent Phoenix City Council’s unanimous approval of the Company’s Canyon Village redevelopment project. The project has successfully rezoned and received all necessary government approvals to retrofit a distressed +300,000 square foot office building to a 376-unit rental multifamily residential building. The project also benefits from opportunity zone tax incentives.
Caliber’s Canyon project will bring much needed new housing to the North Mountain Village area of Phoenix, an infill location that will alleviate the anticipated increased demand for housing driven by the TSMC (NYSE: TSM) Arizona fab locations. TSMC recently announced a $100 billion increase to its existing $65 billion investment commitment in the United States and that its Fab 2 in Phoenix was completed ahead of schedule.
Office represents the most distressed real estate asset class nationwide due to the $2.4 trillion national office sector being negatively impacted by declining property values, weak tenant demand post the COVID-19 pandemic, and high interest rates for new financings. Caliber believes that office, purchased at a discount to its estimated replacement cost, offers an attractive adaptive reuse opportunity, converting to multifamily residential.
