What happens when a real estate project faces a major problem that nobody planned for?
In this September update, Tim Fergestad talks about the markets and projects he is focused on right now. He explains why Arizona remains a major focus for him, even with concerns about water making headlines. Tim shares what he has learned about groundwater, the Colorado River, Arizona’s 100-year water supply requirements, and how changing agricultural land to housing can affect water use.
Tim also gives an update on his build-to-rent projects around the Phoenix metro area. He explains why these communities are designed to give renters more of a house-like experience, including yards, garages, and larger floor plans.
Then he shares the story of a 2023 fire at Avalon, a 135-unit apartment property east of Nashville. The fire created a long insurance and rebuilding process, but the property received a new building, lost revenue was covered, and Tim says investors made about $1 million from the outcome.
You’ll also hear Tim explain why the team behind an 80-unit Tucson property chose to refinance instead of sell. The property is already renovated and about 95% occupied, but current values are not where the team wants them to be.
Tim wraps up with a more personal update, including his work helping with his daughter’s 200-member high school band and a bucket-list rafting trip through the Grand Canyon.
In this episode:
- Why Tim still focuses on Arizona, Texas, and Nashville
- How Tim looks at Arizona’s water concerns
- Why housing on former farmland can use less water than agriculture
- How Tim’s Phoenix-area build-to-rent communities are progressing
- What happened after a fire damaged a Nashville apartment building
- Why the Tucson team is refinancing instead of selling
- How the Tucson preferred-equity structure works
- Tim’s Grand Canyon rafting trip, including sleeping near scorpions
