Thousands more build-to-rent units are coming to the Valley, but with a new twist. While some are the traditional detached, single-family homes built within a community with resort-like amenities, some are attached townhomes with their own garages. Here's what two out-of-state developers are bringing to the market.
It’s hard to know what to expect from Arizona’s economy in 2023. The labor market remains very tight, with low unemployment, high levels of labor market churn, and a tremendous number of open jobs. But any income gains we are making are more than offset by inflation. Rising mortgage interest rates and low affordability have combined to generate a decline in home sales. But as venture deeper into 2023, one thing is certain: Arizona is filled with brilliant minds and innovative companies that are certain to guide us through any economic storms that come our way. That's why we created the AZ Big 100: The 100 Arizona commercial real estate companies and people to watch in 2023.
The editorial board for Az Business and AZRE magazines met with Arizona industry leaders to identify the AZ Big 100 for 2023: The 100 people and companies who will shape Arizona’s business community in 2023. Today, meet 50 commercial real estate companies to watch in 2023 (in alphabetical order).
Park West, the Peoria shopping, entertainment and dining center, has announced a long list of retailers set open this year. Plus, click through to read about more of the biggest real estate deals from across the Valley, including building and land sales.
Churchill Real Estate provided $55 million in construction financing for Empire Group to develop the Village at San Tan, a 240-unit build-for-rent (BTR) community in Queen Creek, Arizona. The project, which is set to break ground in April, will mark Empire Group’s fourteenth multifamily project in the Phoenix-area over the last few years. Kyle McDonough, George Maravilla, and Vin Basa of Tower Capital arranged the non-recourse financing on behalf of Scottsdale-based Empire Group.
Churchill’s Sean Robertson remains bullish on the BTR sector, “The financing of Village at San Tan represents our continued commitment to the build-for-rent asset class, where we are extremely active throughout the southeast and southwest.”
Sitting on a 27-acre site, the Village at San Tan will offer one-, two- and three- bedroom homes averaging 940 square feet. Individual units will feature private patios or yard space and smart-home technology. The gated community will include amenities such as a central community pool and clubhouse, a dog park, both garage and covered parking, as well as EV charging stations throughout.
Tower Capital’s experienced team brings an institutional quality approach to middle market owners, operators, and developers. Tower Capital provides white-glove service to its clients from the beginning of the transaction all the way through to closing.
“So often, we hear complaints about our competitors, who sign up the transaction and then leave the borrower to manage the closing on their own with little support,” says Adam Finkel, principal and founder of Tower Capital. “Once we engage a lender, our transaction team is incredibly proactive throughout the closing process by keeping track of all the lender and third-party due diligence, scheduling and coordinating site visits; facilitating communication amongst title, the lender, and legal teams; taking a lot of that time, energy, and frustration off our client’s plates. Additionally, we are often complimented by our capital providers on the quality of our loan packages and overall process. Ultimately, the most aggressive lenders are the busiest and a strong working relationship with these groups opens up access to our clients that the competition may not be able to provide.”
While 2022 was a year where the market quickly shifted from an up cycle to a down cycle, Tower Capital advisors have shined more than ever while helping clients navigate the choppy market conditions.
“We are using this continued momentum and activity to position ourselves to be the ‘go to’ lenders for construction completion, bridge lease-up, and secondary financing solutions,” Finkel says.
93. Tower Capital
Volatility and uncertainty are apt descriptions for the lending market as we close out 2022. While it is abundantly clear that the mortgage industry remains strong, it faces challenges compared to last year at this time.
Though most lender volumes are down for the year, transactions are still getting done, albeit everyone is working harder to execute. Increased activity is occurring in the fixed-rate bridge and balance sheet bridge lender areas, primarily because borrowers are eschewing floating-rate loans and seeking to avoid purchasing expensive interest rate caps. These loans typically can offer more flexibility and higher leverage compared to cheaper lenders.
Red Oak Capital, Pensam, and Tower Capital are among the managers rolling out or expanding customizable programs.
Tower Capital announced Monday it has arranged $185.7 million in financing for four build-to-rent housing developments in Arizona and North Carolina totaling over 700 units, saying it expects the demand for...
Phoenix-based Tower Capital has arranged $185.7 million in financing for four build-to-rent communities–three in Arizona and one in North Carolina–with a total of 741 units.
Tower Capital has closed more than $750 million in financing transactions for BTR developments and has another $500 million of projects in the pipeline. Since 2018, the firm has closed financing on 30 BTR communities, with more than 5,000 units across multiple states including Arizona, Texas, Alabama and North Carolina.