Tower Capital arranged $27.8 million in non-recourse construction financing for a build-to-rent multifamily community in McKinney, TX. The 13.2-acre property, which was purchased by Hanson Capital in 2019, is located at 2703 Rockhill Road and will house a 128-unit development that is expected to deliver in Q1 2023. The financing arranged by Tower Capital allows Hanson Capital to finish the horizontal improvements and fund the vertical improvements.

“We own a portfolio of both multifamily and industrial projects in the Dallas-Fort Worth market, but this will be our first out-of-the ground, build-to-rent multifamily development,” said Chris Hanson of Scottsdale, AZ-based Hanson Capital.

The project will feature one to three bedrooms ranging in size from 833 square feet to 1,621 square feet, a resort style pool and spa, fitness center, paseo with shade structures, BBQ grills, a bocce ball court, a playground, a dog park and dog wash.

 “Fundamentals for the single-family build-to-rent sector has continued to accelerate due to heavy demand driven by household formations, net migration, and COVID-related shifts, such as remote work,” said Kyle McDonough, principal and co-founder of Tower Capital.

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More than 30 Arizona companies were named to the third annual Inc. 5000 Regionals Southwest list, a ranking of the fastest-growing private companies based in Arizona, New Mexico, Oklahoma and Texas. Born of the annual Inc. 5000 franchise from Inc. magazine, the Inc. 5000 Regionals list represents a unique look at the most successful companies within the Southwest economy’s independent small businesses.

“This year’s Inc. 5000 Regional winners represent one of the most exceptional and exciting lists of America’s off-the-charts growth companies,” Inc. Editor-in-Chief Scott Omelianuk said. “They’re disrupters and job creators, and all delivered an outsize impact on the economy. Remember their names and follow their lead. These are the companies you’ll be hearing about for years to come.”

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Every lender in the country is fighting for any industrial deal that comes to the market, including warehouse, distribution, flex and cold storage properties. Borrowers are seeing extremely aggressive terms such as higher leverage, longer interest-only periods and sub-3% rates. The low cost of tenant improvements and common area maintenance combined with the “stickiness” of industrial tenants makes this property a no-brainer for lenders.

All this competition will push lenders into smaller markets, especially since core industrial assets in primary and many secondary areas are owned almost exclusively by institutional-grade investors, most of which do not need new lending relationships. Lenders will also start to consider more vacant properties or those that are not fully stabilized.

Life companies will be the most active in the space, while banks will be the best option for bridge and construction loans. CMBS lenders, credit unions, bridge lenders, debt funds and private money lenders will also strive to win these deals this year.

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Tower Capital reports it closed nearly $370 million in financing transactions so far in 2021 and is on track to reach $750 million for the year.

Tower Capital was co-founded by Kyle McDonough and Adam S. Finkel in 2015 to enable commercial real estate owners to achieve investment goals with the least amount of time, energy, and cost, while creating surety of execution and peace of mind. The customized structured financing they provide spans commercial real estate investors nationally and totals nearly $2 billion since inception. The mortgage brokerage firm remains on the leading edge of Phoenix’s exploding apartment market and an expanding multifamily build-for-rent (BFR) trend that has gained popularity in Phoenix.

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With tens of thousands of apartment units in the pipeline in metro Phoenix, those who were burned by the Great Recession more than 10 years ago can't help but wonder if we're in danger of overbuilding again. Here's what experts say.

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Arizona is home to many innovative companies that are driving the state’s economy and that is reflected in the state’s showing on this year’s Inc. 5000 list. A total of 117 Arizona companies made the Inc. 5000 list of the fastest-growing private firms in America for 2021. That is an increase of 10 Arizona companies over 2021.

Paradigm Laboratories, a high complexity molecular and infectious disease laboratory ranked No. 224 on the 2021 annual Inc. 5000 list with a three-year revenue growth of 1,961%. Paradigm was also ranked on last year’s 2020 Inc. 5000 list at No. 2,871.

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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.

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