PHOENIX, February 22, 2021 – Tower Capital arranged a programmatic joint venture with an institutional private equity firm, which resulted in $50 million in financing for three separate single family rental developments. The financing will be coupled with 60% LTC construction debt from an existing sponsor relationship for the first 114-unit townhome community on a 5.4-acre site in Surprise, Arizona.
Tower Capital co-founder Kyle McDonough says, “These projects are at the forefront of the new and rapidly growing single-family build-to-rent asset class. The property type is uniquely positioned between multifamily and single-family to provide a lifestyle for people who desire the privacy and independence offered by single-family living the flexibility and amenities of multifamily living. The asset class also appeals to households who are looking to downsize in space from larger single-family homes or upsize from a more dense apartment.”
Construction on the Surprise site at W. Bell Road and N. Litchfield Road is anticipated to commence in March 2021 and the project is expected to be completed in 18 months. The two- and three-bedroom homes will feature bright kitchens that open to large great rooms, two baths, a powder room and convenient in-unit laundry rooms. With granite countertops, plentiful cabinets, handsome flooring and upgraded fixtures, all details are commensurate with newly built single-family homes. Each home at TOWN Surprise also includes a private courtyard and viewing decks that is perfect for pets, barbeques and enjoying the outdoors along with a couple of viewing decks.
Palm Desert, Calif.-based Family Development’s Rudy C. Herrera said, “Tower Capital introduced us to a private equity firm, which resulted in a $50 million commitment for projects in the Phoenix market, as well as in Dallas-Fort Worth and Boise. The whole team at Tower Capital, from George Maravilla, Kyle McDonough and Vin Basa, worked tirelessly to help facilitate the financing. Tower went above and beyond to address challenges and get the transaction done for a product concept that maximizes the units per acre.”
These communities will offer residents numerous amenities including onsite leasing and management offices, swimming pools, dog parks and a two-car attached garage for each unit.
“The developer, Family Development, designed a townhome product that offers nearly all of the benefits of single-family living, yet also includes the coveted two-car attached garage that residents want,” said Tower Capital’s Senior Vice President George Maravilla. “Family has designed a product that can yield up to 18 units per-acre with these two-story townhomes. That has allowed them to secure well-located sites that have been passed over because they were too small for horizontal apartment product.”
Tower Capital has successfully closed more than $250 million in financing transactions for Build-to 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 span multiple states including in Arizona, Texas, Alabama, Georgia and Florida.