Tower Capital successfully arranged $59,590,000 in non-recourse construction financing for a 240-unit Build-to-Rent community in Phoenix, AZ.  The development is located in the rapidly growing North Phoenix submarket, near corporate job campuses and the new Loop 303 where the Taiwan Semiconductor Manufacturing Company (“TSMC”) is building a $12 billion plant.  TSMC is scheduled for completion is 2023, with chip production starting in 2024. This location is expected to generate $38.2 billion in tax revenue over 20 years and employ 3,000 direct jobs.

The subject property is situated on 23.46 acres, with an average unit size of 933 square feet.  The one-story project is designed to include one-, two- and three-bedroom layouts with such amenities as a resort-style swimming pool with jacuzzi, BBQ, ramada, fitness center, detached garages, storage units, dog park, dog spa, EV charging stations, private landscaped backyards, in-home pet doors, and smart home technology. Construction on the development is slated to conclude by July 2025.

The sponsor, a local developer with significant knowledge and experience within the Phoenix market, recognized the need for high-quality residential product in a supply constrained market. Tower was able to leverage market interest to secure the most competitive terms available by focusing on the desirable location as well as the sponsor’s track record and familiarity with the high-growth market.

Tower Capital has successfully closed more than $750 million in financing transactions for Build-to-Rent product and continues to be a leader in the marketplace with another $500 million of projects in the pipeline. The firm has closed more than 5,000 units and 30 communities spanning multiple states including in Arizona, Texas, Alabama, and North Carolina.