Tower Capital successfully arranged construction financing for a 212-unit single family rental communitytotaling $44,500,000. Located at the southeast corner of 19th Avenue and Happy Valley Road, The Elux at Deer Valley development will feature a workout facility, clubhouse, a resort style pool, a dog park, and a gated entrance. The units will feature premium countertops, stainless steel appliances, nine-foot ceilings, smart home technology, and private yards. The first units will become available mid-2020.
Elux at Deer Valley is at the forefront of the new and rapidly growing asset class called single-family build-to-rent. The asset class is uniquely positioned between multifamily and single-family to provide a lifestyle for people who desire the privacy and backyard offered by single-family living. The asset class also appeals to renters who have grown accustomed to living independently and are looking to downsize in space from larger single-family homes often requiring more maintenance and upkeep.
“We are thrilled to be closing another transaction in the rapidly growing single-family rental community space. Arizona has been ground zero for this new asset class and we have been fortunate to quickly gain an expertise and niche in this sector as it spreads across the country and gains a foothold in other markets,” states Kyle McDonough, Principal at Tower Capital.
The highly structured, non-recourse construction financing garnered tremendous interest from an array of capital sources, including banks, debt funds, institutional private equity, and other balance sheet lenders. Tower Capital’s lending sources are currently seeking opportunities in multifamily and the single-family for-rent space. For more information, contact Kyle McDonough at (480) 734-8180 or George Maravilla at (602) 697-5501.
