The site is located along the 303-corridor which, along with the adjacent city of Goodyear, has emerged as Phoenix’s fastest growing commercial/industrial hub. There is an estimated 20M sf of industrial and office that will deliver over the next several years, generating an estimated 21,000 new jobs. At the state level, according to the Arizona Governor’s office, an estimated 700,000 new jobs will be created by 2030.
The project will feature one and two-bedroom single-story rental homes with resort-style amenities, including a resident clubhouse and leasing center, pool, fitness center, large central park and walking trails.
Theodore Karatz, Managing Director at GTIS, said, “We continue to see attractive investment opportunities across the Phoenix MSA in various real estate sectors, particularly in build-to-rent. The 303-corridor has experienced a tremendous amount of economic growth over recent years, spurring the need for housing both on the for-rent and for-sale side. We expect well-located residential projects to be in high demand and feel our Cotton Lane project is well positioned to meet that demand.”
The Phoenix MSA leads the nation in net in-migration, a trend that was underway prior to the COVID-19 pandemic and has continued to accelerate through this period, driven by the business-friendly environment, corporate expansions/relocations, relative affordability, and high quality of life, among other factors. These favorable trends have helped Phoenix become one of the top performing residential markets in the nation over recent years.
Tom Shapiro, President and CIO at GTIS, added, “Growing our built-to-rent platform has been a focus of GTIS as a firm as we position ourselves for what we see as the next phase of single-family rental: purpose-built, fully-amenitized rental home communities. We believe Cotton Lane is a strong addition to our existing portfolio and look forward to expanding our footprint on both a local and national scale.”
Cotton Lane is the third build-to-rent project in Phoenix that GTIS has under development, with several other sites under control in its pipeline. Cadence, a 197-unit build-to-rent community in Mesa, is under construction and will open for leasing in Q1 2022, and Queen Creek Commons, a 276-unit build-to-rent community in Queen Creek, is expected to start construction in Q1 2022.
In addition to build-to-rent, GTIS has been active in several other real estate sectors in Phoenix including industrial and homebuilding. GTIS, with its partners Baker Development and Foundation Capital, is currently developing a 490,320 square foot industrial project called Airport Logistics Center located just 11 miles south of the Cotton Lane site adjacent to the Phoenix Goodyear Airport. That investment, along with its Cadence project, was made by the GTIS Qualified Opportunity Zone Fund.
Jim Stockwell, owner of Sonoma Communities, added “With another successful acquisition, this project aligns perfectly with our thesis of providing high quality rental opportunities in cities experiencing significant positive migration and job growth where barriers to quality rental options have previously existed.”