The Battery is a 278-unit, Class A multifamily development in the Warehouse District, a burgeoning tech hub in downtown Phoenix. The Battery is nearing a “shovel-ready” status as the Project is fully entitled and designed with building permit applications under review by the City of Phoenix. The Project provides the opportunity to develop a best-in-class multifamily offering on a parcel adjacent to the MLB’s Chase Field, the thriving downtown Phoenix, and the eclectic Warehouse District, a once blighted industrial sector of the City which is experiencing a significant revitalization through the addition of numerous new creative firms and tech employers.
As a pioneer of the neighborhood, The Battery be the first new rental housing developed in the Warehouse District in over 10 years. The supply of housing has not yet followed the hundreds of tech companies that have recently taken space in the Warehouse District. According to the New York Times, 110 new businesses have moved into the Warehouse District during the past five years. According to Cushman & Wakefield, the greater Downtown Phoenix had about 1,800 employees working at 67 tech companies in 2012, with a $16 million annual economic impact. In 2017, the area had grown to more than 7,000 tech jobs at 265 tech companies, raking in $58 million in annual economic impact.
The completed project will feature 278 for-rent units throughout two four-story apartment buildings situated on two city blocks. The community will offer residents a number of amenities including keyless entry and smart home technology, a state-of-the-art fitness center, a rooftop amenity deck that features a pool, spa, and open air ramada, and common area designs that inspire creativity and collaboration by drawing upon elements commonly seen in co-working spaces. The Battery’s unit finishes will embody the authentic and often industrial aesthetic that has defined the personality of the historic Warehouse District. Exposed brick, concrete floors and slab countertops, wooden warehouse trusses and large open air environments will be incorporated throughout the public spaces of the Project. The Battery is slated to open its doors to its first new residents in January of 2021.
The Battery is located in a Qualified Opportunity Zone (QOZ) and benefits significantly from special tax treatment of capital gains by the IRS stemming from the Tax Cuts and Jobs Act of 2017. Proceeds from the sale of any property that carry long-term capital gains can be invested into the Project to defer the payment of the capital gains tax until 2026. Furthermore, if the Project is held for 10 years, the basis for capital gains will be reset at fair market value, effectively eliminating capital gains taxes that would be owed for the Project itself.