Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer and manager of housing communities, announced that the firm has closed on construction financing and the acquisition of 29 acres of land in the Phoenix suburb of Glendale, Arizona, for the development of Glendale BFR, a 320-unit build-for-rent (BFR) single-family housing community. Capital Square has partnered with Sunstone Two Tree as co-developer of the project.
“Capital Square has searched the nation for top markets in which to develop new BFR communities,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “The Phoenix area checks all the boxes – 10th largest MSA in the nation, record setting job production and fourth highest rent growth in the nation over the past three years.”
Located at Northern Parkway and N. Sarival Avenue, the property will include a mix of 102 detached villas with three- and four-bedroom units averaging 1,655 square feet, as well as 218 townhomes with two- and three-bedroom units averaging 1,257 square feet. Property amenities will include a pool, spa, fitness center, pickleball courts, grilling pavilion, pocket parks, a dog run and a playground. Capital for the development is being raised through Capital Square Glendale BFR, LLC, a project-specific LLC offering that is open to accredited investors.
Approximately four miles southeast of the property is The Village at Prasada, an outdoor shopping center currently under construction, which will include a Sprouts Farmers Market, Ulta Beauty, TJ Maxx, Marshalls, PetSmart and other popular retail outlets. Residents will also have easy access to downtown Phoenix, Sky Harbor Airport and Luke Air Force Base. Adjacent to the property is Desert Diamond Casino, a $450 million casino under-construction expected to be completed in 2024. The casino complex will employ approximately 1,300 people who will need housing and will feature a fine dining restaurant, food court, conference center and amphitheater.
“Significant growth in the Greater Phoenix single-family rental market has left a shortage of high-quality single-family rental options in the area,” said Whitson Huffman, co-chief executive officer. “Capital Square Glendale BFR, LLC gives investors the perfect opportunity to invest with an experienced team of developers in this prominent Southwest market.”
Phoenix is the 10th largest metropolitan statistical area in the U.S. with about five million residents and a top performing single-family rental investment market with rent growth of 30% since March 2020, the highest in the U.S. The Glendale industrial submarket has 16.3 million square feet of logistics space currently under construction, including a recently approved four million-square-foot logistics park along Loop 303 just north of the site in Glendale.
Capital Square formed the Private Equity Group managed by experienced real estate executives, Dave Platter and Jon Trott, as managing directors and co-heads, to profit from opportunities in the housing market, including a dedicated build-for-rent (“BFR”) strategy in high growth sunbelt markets.
