PEORIA AND GLENDALE, ARIZ. — Empire Group has received $120.5 million in financing for two build-to-rent (BTR) communities in the Phoenix metropolitan area. Kyle McDonough and George Maravilla of Tower Capital arranged the financing on both deals.
Empire Group received $78.5 million in nonrecourse bridge financing for Village at Pioneer Park, a BTR community in the northwestern Phoenix suburb of Peoria. The bridge loan refinanced the project’s construction loan upon opening and allows Empire Group time to stabilize the asset prior to putting a permanent loan in place.
Village at Pioneer Park was built in 2022 and offers 332 units averaging 921 square feet in size, as well as amenities including a clubhouse, pool, fitness center, pet wash station and dog park. Units come in one-, two- and three-bedroom floor plans, according to Apartments.com.
The Scottsdale-based developer also received $42 million in nonrecourse construction financing for the Village at Skyline Ranch in Glendale. Located approximately 1.2 miles from Luke Air Force Base and related off-base housing, Village at Skyline Ranch is slated for delivery in 2024.
The project will consist of 167 BTR units featuring one- and two-bedroom floor plans. Amenities will include walking paths, a dog park, clubhouse, fitness center and pool with a spa. The property will also offer 60 detached garages and 60 storage units.
“We continue to see strong demand for BTR communities across the country due in large part to the shortage of affordable housing options in many markets where people desire to live,” explains Maravilla. “These two communities will add nearly 500 units of rental housing to the high-growth Phoenix market. People also appreciate that a BTR community typically offers a larger array of amenities that match their lifestyle.”
Also headquartered in Scottsdale, Tower Capital has arranged financing for roughly 6,000 units across 35 build-to-rent communities totaling more than $1 billion in BTR construction financing and joint-venture equity. The firm’s pipeline of projects includes communities in Arizona, Texas, Alabama, North Carolina, Colorado and Indiana.
Empire Group currently focuses on BTR and urban high-rise development in Arizona, according to the company’s website. Since its founding in the 1970s, Empire Group has developed and managed $1.5 billion in assets.
— Channing Hamilton