Northmarq arranges $77.5M financing for the development of two Phoenix build-to-rent communities

PHOENIX (Jan. 12, 2024) — Shannon Hersker, Brandon Harrington and Tyler Woodard of Northmarq’s Build-to-Rent (BTR) team secured $77.5 million in construction financing for the development of two BTR communities located in the Phoenix MSA. The ground-up BTR projects, consisting of 388 units are being developed by 29^th Street Development and their respective partners. Both projects are located within opportunity zones.

“We are pleased to arrange financing for these transactions on behalf of 29^th Street and appreciate the opportunity to collaborate with such strong sponsorship,” said Hersker. “Successfully closing these projects before the new year, despite market volatility, highlights our team’s expertise and the availability of capital in the space. The strategic launch of these build-to-rent projects aligns with current market dynamics, positioning them favorably for future success.”

The Artesian, located in Goodyear, Arizona, a city on the west side of the Phoenix Metro is a ground-up development including 187 single-story units. Amenities include a clubhouse, fitness center, pool, entertainment lawns, BBQ’s and dog parks. The community will have a unit mix of 66 one-bedroom units, 96 two-bedroom units, and 25 three-bedroom units averaging 943 sq. ft.

The second project, The Residences at Apache Trail is located in Apache Junction, Arizona, a city on the East side of the Phoenix Metro. The ground-up development includes 201 single-story units, clubhouse, fitness center with yoga room, co-working space, BBQ’s and dog park. The community will have a unit mix of 74 one-bedroom units, 116 two-bedroom units, and 11 three-bedroom units averaging 914 sq. ft.