Tempe AZ Real Estate Investing-First time

[Shlomo Jesner]

I am currently looking to invest in a property in the Tempe Arizona area in the Hillcraft Villas East complex and would like to get some input from people regarding the area. I am concerned that it is very industrial and may be hard to rent. I would appreciate any input people may have

[Dan Schwartz]

@Shlomo Jesner Thanks for the address. It helps. I drove this stretch twice a day for seven years, ate lunch countless times at the intersection mentioned above, and shopped frequently at the Staples that used to be right across the street.

I don't think you'll lack tenants here. The area isn't truly industrial; it's more "large commercial." Industry is generally west of 19th Avenue. This area would have large warehouses for furniture companies, etc. Lots of recent building (huge commercial shells) along the Broadway corridor within a mile or two of this neighborhood. The Cotton Center just across the street is a huge, more-upscale commercial district.

All of that said, this neighborhood has the potential of being a very hands-on management situation. What property management plans do you have in mind? This is unlikely to be a "screen from NYC and collect a check every month" property.

As for gentrification, you are years, if not decades away from that here. The Baseline corridor from 48th street to the west is finally building out, with new homes selling between $200k and $500k. I think the Southern Ave corridor parallel to that will be the next to develop. Broadway will take quite a while, especially up there near the airport and the intersection of the 10 and 143.