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n a bold move to address Phoenix's housing shortage, Caliber, a real estate investment firm, has secured unanimous approval from the Phoenix City Council to transform a distressed office complex into 376 units of much-needed rental housing. The Canyon Village project, situated in North Mountain Village, is poised to capitalize on the area's growing semiconductor industry and favorable tax treatment as an Opportunity Zone.

    "We're witnessing a perfect storm of opportunity," said Chris Loeffler, CEO of Caliber. "Distressed commercial real estate is being snapped up at unprecedented discounts, and we're seeing a surge in demand for housing in strategic infill areas like North Phoenix."

    The project's 300,000-square-foot office building has been underutilized, but Caliber sees potential in its redevelopment. By acquiring the property at just 15% of its estimated replacement cost, the company is poised to deliver a significant return on investment while addressing the city's housing needs.

    As the national office sector continues to struggle with declining valuations and weak tenant demand, Caliber is seizing the moment by adapting underutilized office space into multifamily housing. The Canyon Village project reflects this broader trend, which is expected to continue as investors seek out opportunities in distressed commercial real estate.

    Phoenix's rental market is tightening due to a decline in new construction, with active projects plummeting from 1,900 units in Q4 2023 to just over 450 units in Q2 2025. As the market rebounds, Caliber plans to deliver the first apartments in the second half of 2026, positioning Canyon Village to benefit from strengthening fundamentals.

    The project's success is tied to the expansion of the local semiconductor industry, which is expected to drive continued housing demand in North Phoenix. With TSMC's recent investment and the completion of its second fabrication facility ahead of schedule, the area is poised for significant economic growth.

    Caliber has laid the financial foundation for the project through its tax-advantaged Opportunity Zone funds, investing approximately $7.7 million to date. The company is now raising additional equity for Phase I construction, inviting institutional and accredited investors to participate in this exciting opportunity.