Tower Capital, a leading provider of build-to-rent construction financing, has secured $79.5 million in non-recourse construction financing for a 354-unit build-to-rent community in the Phoenix, AZ MSA. The community will be situated on approximately 29.9 acres of land, with a portion of the site dedicated to amenities such as open recreational space and an outdoor walking path. Each home will have an average unit size of 923 square feet and will offer some level of private patio or yard space. The greater community will also offer a fitness center, car care station, BBQ grills, a central community pool and leasing clubhouse. 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.
The site, located in Northern Phoenix, is positioned near a handful of major new employers inclusive of TSMC’s $165B plant, Amkor Technologies $2B testing and production facility, and Hyperion Technologies $1.5B manufacturing plant. Additionally, Mack Properties recently announced plans to develop Halo Vista, a $7B “city within a city” surrounding the TSMC plant, while the city of Peoria is pursuing a partnership with the Arizona State Land Department to develop the Peoria Innovation Core, a 6,700-acre mixed-use development just west of the TSMC plant.
The Sponsor is a highly experienced, locally based development firm with a substantial track record in the BTR space spanning multiple states including AZ, CO, IN, and TX with plans for further expansion to add to an already robust pipeline.
Tower Capital was able to secure the financing via a national debt fund despite persistent challenging market conditions. Many lenders as of Q2 2025 remain on the sidelines as it relates to deploying construction financing to focus on opportunities for existing assets. However, Tower was able to get lenders comfortable with the project, submarket, and Sponsor profile. As a result, the Tower team was able to capture multiple competitive term sheets for its client and ultimately secure non-recourse construction financing at a low-8% untended debt yield.
This financing is the latest in a series of successful transactions for Tower Capital in the build-to-rent space and is a testament to their continued growth of market share. . The company has capitalized over $2.4 billion in build-to-rent projects for 50 communities encompassing more than 8,850 units across the country.
