Phoenix-based homebuilder NexMetro Communities, America’s innovator and builder of next generation, leased-home neighborhoods in the Sunbelt, announced today that it has closed on two financing deals with iStar Inc. (NYSE:STAR) for the development of Avilla branded rental communities in the Phoenix area. The newly formed relationship could lead to iStar’s investment in as many as nine Avilla communities over the next twelve to eighteen months. NexMetro’s developments are located in prime suburban communities within the Phoenix, Dallas-Fort Worth, and Denver areas. The gated properties feature detached single-story homes with private backyards, ten-foot ceilings, high-end finishes and open-concept designs.
“Our companies have a shared vision of Avilla Homes as an innovative response to a sizable, growing and underserved consumer demand in the leased-home marketplace,” said Ken Abrahams, CEO of NexMetro Communities. “We are excited about our relationship with iStar and look forward to working together to offer a convenient, upscale leased-housing option to consumers in many markets across the country.”
NexMetro Communities is planning to start construction on up to nine new Avilla communities in 2016. Construction on the first two iStar-financed developments began in late 2015 and will continue throughout the year, with the first homes available to lease beginning in early 2017. Construction of Avilla projects in metropolitan Denver will start in late 2016 with homes available to rent in late 2017. Renters may choose from one, two or three bedroom floor plans. Avilla Homes’ rental rates are comparable to other upscale rental communities but offer a unique alternative to both traditional apartment product and single-family home rentals.
“The NexMetro team brings a proven track record and an innovative approach to these developments,” said Steve Wylder, Vice President of iStar. “We think the product is uniquely positioned to meet the demands of a growing demographic seeking the privacy and feel of a single-family home with the convenience and flexibility of an apartment community. We’re excited to have formed this relationship.”
