Downtown Mesa Revitalization Progress Continues With Opening of 2nd Avenue Commons Housing Development
New Complex Brings Attainable Workforce Housing Solutions to a Booming Region of Maricopa County
SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- CaliberCos Inc. (NASDAQ: CWD), a manager of real estate investments and developments, is accelerating the growth of a variety of housing solutions in the booming Downtown Mesa, Arizona, area. On Monday, October 16, Caliber executives alongside Mesa Mayor John Giles and Councilmember Jenn Duff, oversaw a ribbon-cutting ceremony for the 2nd Avenue Commons at 140 W 2nd Avenue. The Commons is a 144-unit workforce housing complex, consisting of 12 three-story buildings, which collectively house 48 one-bedroom units and 96 two-bedroom units. Caliber has co-developed the property alongside Cardinal Capital Management and MEB Management Services is managing the leasing of units.
“The steps we’re taking to revitalize Mesa’s central corridor are bringing a renewed sense of history and character,” said Mesa Mayor John Giles. “2nd Avenue Commons is a welcome addition, creating more opportunities for people to live in our downtown. We appreciate Caliber’s investment and commitment to Mesa.”
As Arizona’s third-largest city, Mesa ranks as one of the best places to live, known for its charm, diversity and affordable high standard of living. Mesa is the 34th largest city in the U.S. and one of the fastest growing with its population increasing by 22.5% from 2010 to 2020. Downtown Mesa has experienced a renaissance in the past few years with the introduction of light rail service, redevelopment of its historic core, and the new Arizona State University Campus at Mesa City Center. This growth has accelerated the need for expanded housing solutions to accommodate students, young people, and families moving to the area.
Caliber’s Opportunity Zone Funds have played a key role in developing solutions to this growing need through the acquisition and development of properties like 2nd Avenue Commons as well as an innovative new concept located at 29 West Main Street with 90 ZenniHome units under construction. ZenniHome units offer a viable solution to the housing industry shortage by designing and factory-building their model homes to be easily transported and stack in multi-family configurations.
“The investment in Downtown Mesa is a priority for Caliber, not only as a business growth strategy, but as members of the surrounding community,” said Chris Loeffler, Chief Executive Officer of Caliber. “Our focus on housing solutions will directly support continued growth in the broader area, including the exciting and diverse new businesses that now call Downtown Mesa home. We’re proud to be a part of the redevelopment efforts in Mesa, which are providing our investors with the opportunity to invest in meaningful, high impact projects with competitive returns.”
“Caliber has served as a key partner in the development and launch of the 2nd Avenue Commons property,” said Susan Kauffman, Vice President of Business Development at MEB. “Together, we are bringing exceptional new housing units to Downtown Mesa, meeting a critical need for the growing population.”
Caliber began acquiring a series of buildings in and around Downtown Mesa, a designated Opportunity Zone, in 2017. Alongside housing developments like The Commons and ZenniHome, Caliber is developing 10 buildings and approximately 160,000 sq. ft of mixed-use space, including Southwest Institute of Montessori Studies Inc. (SIMS), which closed on a 10-year lease at 305 E. Main Street, Sonoran Rows, a Craft Malthouse located at 18 W. Main, Copper City Spirits at 155 W. Main Street, and the recently opened Level 1 Arcade Bar, located at 48 W. Main Street.
These projects in Downtown Mesa are all part of Caliber’s Opportunity Zone Fund and are central to the redevelopment of the area. Opportunity Zone funds offer investors the ability to reduce and eliminate short and long-term capital gains tax liabilities by investing in a professionally managed real estate fund and completing new developments that are impactful to the designated communities within each zone. All of Downtown Mesa is located within an opportunity zone, making it an attractive location for additional investment.
Caliber is a manager and developer of real estate that assists investors seeking access to potentially lucrative investments within Caliber’s target markets. Caliber creates and manages real estate funds that allow investors to participate as partners in multiple real estate investment strategies, including opportunity zone, opportunistic, distressed, value-add, and core plus investing. Caliber is differentiated by its in-house asset services group, which provides Caliber with stronger control of the real estate it manages and allows it to focus on projects between $5-$50m in size. Caliber’s investments are made available to registered investment advisers, broker-dealers, institutions, family offices and high net worth individuals through Caliber’s in-house client services group. Additional information can be found at Caliberco.com and Caliber Funds.co.
Forward Looking Statements
This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” "will,” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the final prospectus related to the Company’s public offering filed with the SEC and other reports filed with the SEC thereafter. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
Source: CaliberCos Inc.
Released October 17, 2023