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Tower Capital Advises on $108 Million in Financing for Four Single-Family, Build-For-Rent Developments in Arizona, North Carolina

Tower Capital arranged nearly $108 million in combined financing for four single-family, build-for-rent (BFR) developments in two states.

The larger of the transactions involve Empire Group’s development plans in Metro Phoenix for the Village at Paseo de Luces in Tolleson, AZ and Village at The BLVD in Avondale, AZ. Tower Capital also arranged financing for Family Development’s Arise North PHX in Metro Phoenix and arranged financing for a single-family BFR project in Charlotte, North Carolina.

Tower Capital’s George Maravilla, senior vice president, said, “We continue to lead in the rapidly growing single-family, build-for-rent asset class that started in Arizona and is spreading across the country. These four transactions reflect increased demand for build-for-rent assets from both Baby Boomers and Millennials who find the format attractive. BFR housing allows Boomers to downsize without giving up features and comforts of an owned residence. Millennials appreciate that the larger BFR layouts align with their shift to a more family-style of living.”

Both The BLVD and the Paseo de Luces developments offer residents privacy, luxury, and top of the line amenities. Scottsdale-based Empire Group has developed more than 100 projects valued at north of $1 billion. The larger build-for-rent deal is the Village at Paseo de Luces, a 272-unit, single-family BFR community in Tolleson, for which Tower Capital arranged more than $46 million in construction financing. The property sits on 22.41 acres and will offer one-bedroom/one-bathroom, two-bed/two-bath, and three-bed/two-bath units, with an average unit size of 949 square feet. The project is set to break ground in September 2021 and deliver its first units in September 2022.

The Village at Paseo de Luces community will feature detached garages, a designer workout facility, a recreation building with community kitchen and gathering area, a resort style pool, spa, barbeque and kitchen area, large green belts, a dog park with a washing station and a gated entrance. The units will feature fenced and gated private patios and backyards with lush landscaping, premium countertops, stainless steel appliances, 10-foot ceilings, walk-in closets, high-speed fiber optic internet service, smart home technology, upgraded kitchen cabinetry and faux wood flooring.

The second Empire Group deal involves $27 million in Tower Capital-arranged construction financing for a 187-unit, single-family BFR community located within The BLVD, a 356-acre mixed use district in Phoenix’s West Valley. The Village at The BLVD will sit on 17 acres, with an average unit size of 929 square feet. The project is set to commence construction in mid-August 2021 and deliver its first units in August 2022.

The Village at The BLVD community will feature detached garages, a designer workout facility, recreation building with community kitchen and a gathering area, a resort style pool, spa, barbeque and kitchen area, large green belts, and a dog park with washing stations and a gated entrance. Additionally, the units will feature fenced and gated private patios and backyards with lush landscaping, premium countertops, stainless steel appliances, 10-foot ceilings, walk-in closets, high-speed fiber optic internet service, smart home technology, upgraded kitchen cabinetry and faux wood flooring.

In North Carolina, Tower Capital arranged $19.1 million in financing for a BFR project on behalf of an unnamed Phoenix investor. The high leverage acquisition financing is for 99 planned, build-for-rent townhomes in Indian Trail, a suburb of Charlotte. The loan is floating rate at Libor plus 400 bps, with a floor at 4.25% and has a two-year term with a six-month extension option. The structured facility will allow the borrower to acquire the individual homes as they receive certificates of occupancy in separate phases. The property will consist of two-story three-bedroom townhome units with direct access attached garages and will cater to families in the surrounding area attracted to its high scores for schools, desirable retail and a more secluded family setting.

Tower Capital secured $13.9 million for Arise North PHX, a BFR project adjacent to Anthem, a 5,860-acre master-planned community in Phoenix’s North Valley. The project will feature 170 detached units including one, one and half and two bedrooms, averaging 850 square feet. The project is set to commence construction in December 2021 and begin delivering units in Q3 2022. This will be Family Development’s second single story rental project in the Phoenix metro and fourth build-for-rent project in the Phoenix metro. More projects are in the works for Idaho, Texas and California.

Tower Capital has successfully closed more than $400 million in financing transactions for Build-for-Rent product and continues to be a leader in the marketplace with another $1 billion of projects in the pipeline. The firm’s pipeline of projects spans multiple states including in Arizona, Texas, Alabama, Georgia and Florida.