Single Family Build-To-Rent
- Property Type: Single-Family Build-to-Rent
- Financing Amount: $21,200,000
- Purpose: Ground Up Development
- Location: Phoenix, AZ
- Capital Source: Private Equity & Debt Fund
- Recourse: Non-Recourse
Tower Capital arranged the entire capital stack for a Build-to-Rent project in the Phoenix MSA for a new BTR developer. Tower Capital successfully arranged $21,200,000 in Co-GP Equity, LP Equity and non-recourse construction financing for a 47-unit single-family build-to-rent community in Phoenix, AZ. The development is located in the rapidly growing Laveen Village submarket, near job centers and the new Loop 202, Phoenix’s newest stretch of freeway.
The subject property will be comprised of 47 single-family homes in a self-contained community on fee simple lots across 14.82 acres, with an average home size of 1,728 square feet. The community will feature a mix of 3-, 4-, and 5-bedroom homes, attached garages, open floor plans, ample storage, pocket offices, spacious backyards with covered patio, modern elevations, energy star certification and high-speed internet. The units will have premium stone countertops, stainless steel appliances, full-size washer/dryer and upgraded smart-home features & technology. Each home oﬀers a private backyard with a covered patio.
The primary challenge with arranging capital for a developer beginning a new venture is usually finding a balance sheet to credit enhance the debt portion of the capital stack. Tower’s deep knowledge of capital providers in the build-to-rent space helped find a Co-GP to contribute both co-investment dollars in addition to their balance sheet to the partnership and didn’t require a co-developer role. The Co-GP was also flexible with debt requirements and got comfortable with higher leverage debt up to 75% LTC, which was accretive to the project IRR.
Tower Capital has successfully closed more than $750 million in construction financing and joint venture equity for 30 build-to-rent communities and continues to be a leader in the marketplace with another $500 million of projects in the pipeline. The firm’s pipeline of projects spans multiple states including in Arizona, Texas, Alabama, North Carolina, Colorado and Indiana.
About Tower Capital
Tower Capital was founded to enable owners of commercial real estate to achieve their investment goals with the least amount of time, energy, and cost, while creating surety of execution and peace of mind.
Established in 2015 and headquartered in Scottsdale, Arizona, Tower Capital provides customized structured financing to commercial real estate investors throughout the United States. The firm specializes in arranging debt and equity from $3 million to $300 million and has financed in excess of $2.3 billion for clients since inception. Tower Capital focuses on independent financial advising with an entrepreneurial mindset, market vigilance and personalized attention to every client.