Single Family Build-To-Rent

  • Property Type: Single-Family Build-to-Rent
  • Financing Amount: $62,400,000
  • Purpose: Construction
  • Location: Southwestern US
  • Capital Source: Debt Fund

Transaction Details:

Tower Capital, a leading advisor for Build-to-Rent (BTR) construction financing, has secured $62.4 million in non-recourse construction financing for the development of a 276-unit BTR community in the Southwestern US. The community will be situated on approximately 30 acres of land, with roughly 7.7 acres dedicated to amenities such as a pond, open space, and a walking path.

The units will average 920 square feet in size and will include such options as a private patio or yard space. The overall community will also offer a fitness center, car care station, BBQ grills, a central community pool and clubhouse, and common open space. The units will feature solid surface quartz countertops, stainless steel appliances, premium kitchen backsplashes, full-size washers and dryers, and upgraded smart-home features and technology.

Tower Capital was able to secure the financing despite challenging market conditions, which allows the developer to move forward on the project. Many lenders have stopped funding construction loans in recent months, but the experienced structured finance team at Tower Capital was able to get lenders comfortable with the project financing and secure multiple term sheets for the client.

This financing is the latest in a series of transactions Tower Capital has successfully executed in the Build-to-Rent space. The company has closed more than $1.5 billion in BTR construction financing and joint venture equity for nearly 40 communities encompassing more than 7,000 units. The firm’s pipeline of BTR projects spans multiple states including in Arizona, Texas, Alabama, North Carolina, Colorado and Indiana.

About Tower Capital

Tower Capital is a private, boutique real estate capital advisory firm based in Scottsdale, AZ with a regional office in Denver, CO. Tower Capital specializes in arranging debt and equity placements primarily for industrial, multifamily, BTR/SFR, office, retail, and hospitality assets at the most efficient cost of capital on behalf of private and institutional sponsors. Tower Capital leverages a variety of capital sources to meet the needs of commercial real estate sponsors including life insurance companies, commercial and investment banks, debt funds, Fannie Mae, Freddie Mac, HUD, CMBS, mortgage REITs, pension funds, credit companies, family offices and more. To date, Tower Capital has arranged over $3.5 billion in bridge, construction, permanent, mezzanine, joint-venture, co-GP, and preferred equity financing transactions.