Tower Capital arranged $185.7 million in financing for four Build-to-Rent (BTR) developments that will result in 740 units delivered in Arizona and North Carolina. The financing encompasses three new projects in the Phoenix market, including $67.4 million for Village at Carver Mountain, $59.6 million for Village at Sonoran Vista, and $21.2 million for Montana Del Sur, as well as $37.5 million in financing for Poplin Glen, a BTR project in the Charlotte, NC MSA.
Tower Capital’s Kyle McDonough, Principal and Co-Founder, said, “Consumers continue to be attracted to top quality Build-to-Rent housing projects and that continues to drive demand for new developments. We just arranged our second financing in North Carolina and our BTR originations completed in the Sunbelt now totals 30 projects encompassing roughly 5,000 units since 2018.”
Tower Capital has successfully closed more than $750 million in financing transactions for Build-to-Rent product and continues to be a leader in the marketplace with another $500 million of projects in the pipeline. The firm has closed more than 5,000 units and 30 BTR communities spanning multiple states including in Arizona, Texas, Alabama, and North Carolina.
Village at Carver Mountain is a 285-unit gated Build-to-Rent (BTR) project being developed by Empire Group in the Laveen Village in South Phoenix near the new Loop 202. The one-story project is designed to include one-, two- and three-bedroom layouts with such amenities as a resort-style swimming pool with jacuzzi, BBQ, ramada, fitness center, detached garages, storage units, dog park, dog spa, EV charging stations, private landscaped backyards, in-home pet doors, and smart home technology. Construction on the development is slated to conclude by December 2024.
Village at Sonoran Vista is a 240-unit gated BTR project being developed by Empire Group in North Phoenix, near the new Taiwan Semiconductor Manufacturing plant. The one-story project is designed to include one-, two- and three-bedroom layouts with such amenities as a resort-style swimming pool with jacuzzi, BBQ, ramada, fitness center, detached garages, storage units, dog park, dog spa, EV charging stations, private landscaped backyards, in-home pet doors, and smart home technology. Construction on the development is slated to conclude by July 2025.
Montana Del Sur is a BTR community comprised of 47 single-family detached homes being developed by Rockridge Properties and Investments at 47th Avenue and Southern Avenue in Phoenix. The predominantly single-story project is designed to include three-, four- and five-bedroom layouts, open floor plans, ample storage, two-car garages, pocket offices, nine-foot ceilings and smart home features. The development is anticipated to be ready for move-ins by January 2023.
Poplin Glen is a 169-townhome BTR development being built in the Charlotte market. The two-story project features three-bedroom homes with an average size of 1,900 square feet across six distinct floor plans. The homes will also include two car direct access garages and is expected to cater to families in the surrounding area due to its high scores for schools, good retail and a more secluded family setting. The multi-phased project started delivering units in May 2022.
McDonough adds, “Builders continue to seek financing for this more complex BTR product type, which we know well and are comfortable arranging capital to meet borrowers project requirements. Rising mortgage rates are causing potential buyers to take a look at single-family rentals, which can offer more affordable economics compared to buying a house, while delivering the lifestyle and flexibility they seek. For those reasons, it is expected that demand will continue to increase for BTR’s.”
The BTR projects that have found favor across multiple demographic segments include those with large private yards, doors for pets, as well as a host of amenities or gathering areas found in luxury apartments like pools, spas or game lawns. Residents in BTR settings gain the single-family type of home environment, and also like having a maintenance staff to take care of the property so they can spend time doing things they enjoy with family and friends.
Tower Capital also arranged $3.6 million in acquisition financing for Avalon, a 12-unit apartment asset in Phoenix.
Speak Your Mind
You must be logged in to post a comment.