CenterSquare’s latest Value-Added Fund made a preferred equity investment for the development of Ironwood Homes at Rosefield, a 320-unit build-to-rent townhome and single-family detached community in the fast-growing West Valley submarket of Phoenix, AZ. The property will consist of all two-story units with high-end interior finishes, fenced backyards, attached garages, and extensive community amenities. This is a unique asset in the Pheonix build-to-rent market, which primarily consists of horizontal apartments without attached garages. The Sponsor acquired the land in 2023 and commenced horizontal construction later the same year. Vertical construction began in late 2024, with the first homes delivered in April 2025, and common area amenities completed in June 2025.
CenterSquare’s preferred equity investment ranges from 65% to 74% of the capital stack, with material Sponsor equity subordinated to CenterSquare’s position, and provides CenterSquare with a compelling risk adjusted return with downside protection.
“Despite recent market volatility, we maintain our conviction in the build-to-rent sector.” said Chris Picyk, Senior Vice President, Private Equity Real Estate, “This investment demonstrates CenterSquare’s ability to find creative ways to invest in our high conviction sectors throughout the cycle.”
