The Wilshire

Investment Overview

Positioned within West Phoenix’s 85037 zip code, the Wilshire land site offers a 138-unit infill development opportunity at the intersection of sustained affordability and durable workforce demand. With a probable delivery window of 2028 or 2029, the Property is timed to meet an intensifying wave of renter demand precisely as the metro’s construction pipeline contracts — representing one of the most compelling entry points the Phoenix multifamily market has presented in years. Phoenix has spent the past several years absorbing an extraordinary volume of new supply. Developers delivered approximately 25,000 units in 2025, more than double the ten-year historical average, and these deliveries have weighed on near-term fundamentals. Advertised asking rents declined 0.6% on a trailing three-month basis through November 2025 to an average of $1,519, with rents down 4.1% year-over-year — the second-lowest figure among the top 30 metros. Occupancy reflected similar pressure, though to a far more modest degree than the supply volume would suggest. Despite the addition of 25,000 units, stabilized occupancy declined only 20 basis points to 92.0% in 2025 — a resilience that signals a market approaching equilibrium as deliveries decelerate. Stabilized occupancy subsequently recovered to 93.4% by October 2025, even as more than 60,000 units were absorbed since January 2022, underscoring the depth of underlying renter demand. Absorption over the trailing year ran at more than double the pre-pandemic average. The market’s defining characteristic has never been insufficient demand, but rather a contest between voracious supply and equally vigorous absorption. This dynamic is what makes the Wilshire opportunity compelling. The same conditions that softened rents and occupancy over the past two years are now set to reverse. Confronted with negative rent growth, escalating construction costs, and tightening equity markets, developers have curtailed new starts dramatically. Groundbreakings fell 52% in 2024 relative to 2023. While 22,100 units remained under construction in the fourth quarter of 2025 — roughly 5% of existing inventory — that total marks a 40% decline from the mid-2024 peak, signaling a near-term easing of supply pressure and the foundation for gradual stabilization.

Investment Highlights

• Located in the Phoenix MSA area
• 138-Unit Infill Development Opportunity
• Proximity to Major Transportation Routes
• Strong Demographics and Population Growth
• Ample Nearby Retail and Dining Options
• Favorable Zoning Regulations
• Close to Employment Hubs
• Strong Historical Occupancy Rates