Downtown Phoenix Developer Agrees To Lower Some Rents On Micro Apartments

Published: Thursday, March 3, 2016 - 7:48am
Updated: Thursday, March 3, 2016 - 11:50am
(Photo courtesy of Phoenix Community and Economic Development Department)
The proposed Derby Roosevelt Row project consists of a 19-story high-rise would be comprised of 211 "micro-units."

The Derby Roosevelt Row project has been marketed as high-end homes for people who work in downtown Phoenix and spend most of their free time dining out, and attending museums, concerts and sporting events. That’s why the city-approved $8 million property tax break rubbed some residents the wrong way.

And that led the developer’s representative, Stephen Earl, to announce a deal to lower some rents during Wednesday’s council meeting.

“We’re going to set aside 10 units for five years at a rent capped at only $840," he said. "The normal rents will be $1,200 and the above range.”

The offer came at the request of Councilman Michael Nowakowski who represents the downtown area — and it could happen more often. The city is studying how much affordable housing is available and some council members have said they need to make sure downtown living is open to a variety of income levels.

The developer, AMSTAR, also agreed to provide the city with $30,000 for a downtown parking study and solutions.

Derby Roosevelt Row highlights:

  •     19-story tower on northwest corner of McKinley and 2nd Streets
  •     211 furnished apartments called 'micro-units' due to small size
  •     Average unit is about 400 square feet
  •     Ground floor will be retail
  •     First four floors will be parking
  •     Two floors will offer amenities like an outdoor pool, barbecue areas and fitness center