GTIS Partners and Clyde Capital have formed a joint venture to develop a $250 million mixed-use, master-planned community in Surprise, Ariz. The Phoenix-area development will feature a build-to-rent residential community, retail space and a medical facility. The property will be constructed on 90 acres of land acquired by the joint venture.
The BTR community, to be called Tavalo at Asante, will be built on a GTIS-owned residential parcel at Asante Trails. Tavalo at Asante will provide 282 single-family duplex and detached homes, ranging in size from one to three bedrooms. An onsite leasing center, resident lounge, pool, dog parks and park will all be contiguous and within walking distance of the property’s future neighborhood shopping center.
Of the 90 acres, 20 have been sold to HonorHealth to develop a medical facility on the site. A 45-acre parcel will be allocated to Clyde and Simon CRE, a national commercial real estate acquisition and development company, to develop a 12-acre retail center at the southwest corner of Pat Tillman and 163rd Avenues. Remaining acreage will be allocated for the BTR community.
“The project was initially entitled for a large-scale regional power center by its prior owner,” Theodore Karatz, managing director, U.S. Acquisitions, and head of BTR acquisitions at GTIS Partners, told Multi-Housing News. “So we needed to successfully communicate our vision for the property to the responsible parties inside the city. The vision was to create a mixed-use project with residential neighborhood retail and medical services that directly served the submarket of North Surprise.”
“While the total commercial square footage was less than what was previously planned, we felt strongly our project was right-sized and had an opportunity be a magnet for activity by residents living in the submarket,” said Karatz. “We understood that this project was very different from the previous plan, and therefore would require spirited debate around a consensus to achieve approval.”
Responding to feedback as it refined its land plan for the project’s 90 acres, the joint venture worked closely with city officials within the planning department, planning commission, economic development office and city managers’ office. “This plan was presented to local residents in multiple neighborhood meetings, and we benefited greatly from having no known neighborhood opposition as a driving force to support our view that our plan made sense and would be a great amenity for the submarket,” Karatz said.
Last month, Wood Partners sold a Valley of the Sun property for $80 million.
