Empire Group has secured $88.5 million in construction financing for a build-to-rent community in Phoenix. Arranged by Tower Capital, the loan will back the development of the 354-unit Village at Bronco Trail.
“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,” Kyle McDonough, principal & co-founder at Tower Capital, told Multi-Housing News. “For those reasons, it is expected that demand will continue to increase for BTR’s. We continue to see strong demand for BTR communities across the country because of the shortage of affordable housing options in many markets where people desire to live.”
Situated at 29th Avenue at Sonoran Desert Drive, the site occupies approximately 30 acres. Community amenities are set to include a dog park, pool, clubhouse, grilling area, common open space and detached garages.
“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,” said McDonough.
According to Yardi Matrix data, one-, two- and three-bedroom layouts will be featured at the Village at Bronco Trail. Individual homes will average 920 square feet and will incldude washers and dryers, smart home technology and a private yard.
Located in the North Phoenix submarket, the property is an approximately 30 minute drive from downtown Phoenix. Dining, entertainment and retail options are available nearby. Green spaces in close proximity to the community include the Cave Buttes Recreation area, Ironwood Country Club and Desert Hills Trailhead. The Taiwan Semiconductor Manufacturing Company’s $40 billion manufacturing plant is being constructed less than two miles away from the project, which is expected to be online next year.
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Kyle McDonough and George Maravilla, senior vice president, arranged the deal. Tower Capital has closed almost $210 million in BTR financing in the past month, McDonough said in prepared remarks. In total, the company has closed construction financing and joint venture equity across 37 BTR communities.
Another company, Mill Creek Residential, recently entered the Phoenix single-family BTR market. Also located in North Phoenix, the community, Amavia Aster Ridge, is set to include 177 two- and three-bedroom townhouses. That project is anticipated online in February 2024.
