ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, has originated an approximately $28 million loan to fund the construction and stabilization of Bungalows on Bowlin (the “Property”), a 196-unit, single-story rental community located at Bowlin Road and John Wayne Parkway in Maricopa, Arizona, one of the fastest growing cities in the United States over the last decade. The loan is provided to sponsor Cavan Companies (“Cavan”), a leading innovator in real estate development that has successfully completed multiple bungalow projects in the Phoenix metropolitan statistical area (MSA).
“We are pleased to complete this transaction in the Phoenix market, which is an ideal area for new multifamily development due to a sustained influx of new residents,” said ACRES Chief Executive Officer and President Mark Fogel. “The MSA’s population growth is projected to continue in the coming years, as new residents arrive from states with higher taxes and costs of living to take advantage of Arizona’s quality-of-life benefits and lower prices. The Property is poised to benefit from the sponsor’s deep local knowledge and experience with these types of rental communities.”
Bungalows on Bowlin will feature high-end exterior and interior amenities and finishes, including a resort-style pool and spa, farmhouse-style clubhouse and 426 on-site parking spaces. Once completed, the 16-acre Property will be one of the only single-story rental communities in the Maricopa submarket, offering residents seeking to live within the Phoenix MSA a competitive alternative to home buying or renting in more expensive suburbs of Phoenix. The sponsor selected ACRES for its flexible financing solution and efficiency in execution.
David Cavan, Chairman and Owner of Cavan, said, “The ACRES team recognizes our track record of developing projects of this nature in the Phoenix market, and was swiftly able to offer us a financing package that met all of this project’s needs. We look forward to offering residents a new, high-quality housing option in a prime location within the Maricopa suburb.”
Maricopa’s population has increased over 5,000 percent since 2000. The Phoenix MSA is attractive to businesses, and has grown its prominence as a finance and insurance hub fueled by companies such as: the United Services Automobile Association (USAA); State Farm; Freedom Financial Network, LLC; The Charles Schwab Corporation; and Northern Trust Corporation. The Property will be located just west of John Wayne Parkway with easy access to Interstates 8 and 10. It sits within proximity to Maricopa Elementary School and Maricopa High School, both less than half a mile away.
The loan was arranged by Jeremy Korer of Cushman & Wakefield.