Despite a turbulent and challenging 2024 in the real estate market, Silver Creek Development has emerged stronger and more resilient.
The Arizona-based private real estate developer and owner, with primary offices in Scottsdale and Los Angeles, reported notable success in 2024 amid industry-wide slowdowns triggered by rising interest rates resulting in a downturn in transaction volume.
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Silver Creek focuses primarily on industrial and multifamily development and acquisitions with a primary geographic focus among the Mountain West region, and Texas. They also own office assets in Arizona, California, and Texas and two mixed-use hospitality projects. Collectively, the company owns, manages, or is in the process of developing about $2 billion in assets.
Silver Creek has a successful 25-year track record of acquiring and developing value-add apartments. At one point, the firm owned more than 18,000 units across the Sun Belt region. For the development pipeline, the company focuses on market rate, three- to four-story stick built suburban product primarily in Arizona.
Last year, Silver Creek demonstrated adaptability and strategic acumen by leveraging market opportunities and focusing on its high-value investments. The company’s ability to navigate these turbulent times highlights its robust operational framework and visionary leadership.
“Silver Creek Development’s success in 2024 is a testament to our team’s resilience and forward-thinking approach, ensuring we remain at the forefront of the industry,” said head of industrial, Bob Micera. “We remained committed to delivering high-performance properties that provide outstanding returns for investors and for the communities where they are located.”
As Silver Creek looks forward to 2025, the company remains committed to bolstering its pipeline to drive growth and continues to manage and develop high-quality real estate projects. With a strategic focus on expanding its portfolio and capitalizing on emerging market trends, Silver Creek is poised to build on its success and deliver greater value to its investor base.
That success and the ability to deliver is evident in the six free-standing industrial development projects that Silver Creek has recently completed or are currently under construction. Silver Creek delivers its buildings in tenant ready condition with an office suite, LED lighting package, 100 percent HVAC in the warehouse, and a dock package.
Silver Creek’s target industrial product is free-standing industrial buildings ranging in size from 25,000 SF to 250,000 SF. This size range represents the highest demand category among tenants seeking to relocate in the Arizona market.
Silver Creek was very proactive in 2024 with the following among its multifamily highlights:
• Silver Creek sold three of its multifamily value-add projects representing more than $150 million in value: Rosemont Cityview, Marietta, Georgia; Dawson Forest, Dawsonville, Georgia; and Sweetwater at Buckingham, Richardson, Texas.
• Completed construction of its 187-unit multifamily project in Tempe, Arizona, and commenced lease up in Q4 2024 with stabilization expected by mid-2025.
• Finalized plans for its two-phase, 374-unit multifamily project to be built at Cooley Station in Gilbert, Arizona.
On the industrial front, the company accomplished the following:
• Completed tenant improvement work, received certificate of occupancy, and sold a newly developed free-standing industrial building in Glendale, Arizona.
• Completed construction on three other free-standing Metro Phoenix West Valley industrial buildings in El Mirage (216,688 SF); Surprise (107,400 SF); and Avondale (86,372 SF).
• Achieved substantial construction progress on its eight-building, 330,000 SF industrial complex in Mesa, Arizona.
• Commenced construction of a 150,615 SF, free-standing industrial building in Surprise, Arizona.
• Refinanced construction loans on two of its industrial projects.
• Commenced lease up initiatives for its recently completed industrial assets.
• Executed an early extension with its tenant, Michelin, and completed a parking lot expansion at its 2 MSF tire distribution asset in the Chicago MSA.
Apart from its industrial and multifamily development projects, Silver Creek successfully repositioned a Phoenix office asset by negotiating a termination fee with a dark tenant, extending lease terms and expanding space with two in-place tenants and refinanced the property.
“As we enter 2025, the Silver Creek team will continue with our development efforts and be nimble to adapt to the ongoing market conditions. We will continue to pursue attractive investment and development opportunities to support our efforts to maximize investor returns while mitigating risk through our hands on oversight” said Silver Creek managing director Charles Essig.
