Tower Capital successfully arranged non-recourse construction financing for a build-to-rent Townhome community totaling $17,960,000.  The subject property consist of 90 contemporary styled, two level townhomes in a gated community with lifestyle amenities such as a pool, spa, dog park, zen garden and fitness studio.  The unit mix will consist of two and three bedroom townhomes each with two car attached garages which presents a unique and competitive alternative to current apartment rental housing in the area.  The property strategically borders Mesa and Gilbert along Baseline Road and the Interstate 60.  The site is within a minute commute to A.T. Still University and the new Abrazo Hospital site and 10 minutes from Banner Desert Medical Center.

One of the main challenges on this transaction was that, although the sponsor has a great track record in developing similar product, the client needed high leverage non-recourse construction financing during the Covid 19 pandemic. The sponsor had been searching for a debt partner for almost a year with no success, before hiring Tower Capital.  Within weeks, Tower Capital had multiple construction lenders willing to provide a stretch senior construction loan.  The sponsor reviewed multiple offers and chose one that provided 78% of the capital stack.