Valley’s most pricey rental units open in Tempe

Historically high apartment vacancies haven’t stopped a Phoenix developer from marketing what it says are the most expensive units in the Valley.

For $2,000 to $6,000 a month, renters living the high life can get one of 54 units at the Grigio, a luxury apartment complex, which adopted the motto “Your wish. Our pleasure.”

Located near the southeast corner of Scottsdale Road and Loop 202 in Tempe, the Grigio has one- to three-bedroom units and offers free housekeeping, dry cleaning, reserved underground parking and health club classes.

Gray Development Group, which built the Grigio, also has six, two-story presidential suites encompassing 2,583 square-feet, three bedrooms and private verandas overlooking Tempe Town Lake.

Other amenities include bamboo floors, blue pearl granite counter tops, stainless steel appliances and “magnificent views of Tempe Town Lake.”

There are 523 units total, and less high-rolling renters can find units starting at $900.

While vacancy rates in the Phoenix metropolitan are at historically high levels — 12.4 percent during second quarter, according to experts — Gray Development Group officials said interest in the Grigio has been high since the company began marketing the most expensive units in September.

“We’ve had a great response to them,” said Jacqueline Day, Grigio’s community director.

Day said the company has rented five of the 54 most expensive units.

“I do think that obviously the location here is ideal,” she said. “We offer something that you’re not going to get anywhere else.”

But with an abysmal apartment market, local industry-watcher Bob Kammrath said he’s doubtful Grigio officials will fill the units without some big incentives like rent concessions.

“The timing couldn’t have been worse for a property of this type,” he said.

Kammrath said the market was more hospitable when the project was in its early stages.

“Hopefully, the people who are doing the Grigio take the long-term view and say, ‘well this isn’t going to last forever.’”

Pete TeKampe, vice president of investments at Marcus & Millichap, had a much different view saying the Grigio’s prestige and prime location insulates it from the economy more than other rentals.

“That building is in a class by itself,” he said. “It has invented it’s own market segment. . . I would say that it is probably affected by the softening of the overall rental market conditions, but it’s also a property that has some protection against the down side.”