Multifamily - Debt, Sale

NorthMarq arranges sale and financing for two Christopher Todd-Branded Single-Story Rental Communities

Transaction marks the 25th BTR community sold by NorthMarq

PHOENIX, ARIZONA (August 30, 2021) – NorthMarq’s team of Investment Sales President Trevor Koskovich, Senior Vice President Jesse Hudson, and Executive Vice President Bill Hahn arranged the sale of two Phoenix-area Christopher Todd Communities Build-to-Rent (BTR) communities. This transaction marks the 25th BTR community sold by NorthMarq, an industry leader in the burgeoning horizontal multifamily property type. NorthMarq’s financing team of Managing Directors Griffin Martin and James DuMars arranged the financing through its Fannie Mae DUS platform. 

These Christopher Todd Communities, known for their five-star lifestyle in single-story rentals, were purchased by an affiliate of The Inland Real Estate Group of Companies, Inc., the firm’s sixth and seventh acquisition of Build-to-Rent communities developed and owned by Christopher Todd Communities. Christopher Todd Communities At Estrella Commons, a 286-home community located in Goodyear, Ariz., and the 222-home Christopher Todd Communities On Happy Valley in Peoria, Ariz., were sold Aug. 24, 2021. 

“We are honored to continue our representation of Christopher Todd Communities’ unique, high-end properties,” said Koskovich. “The competition from interested investors has increasingly expanded since our first sale of one of these assets in 2019, paving the way for continued growth in the sector.” 

In addition to the competition from investors, lender interest has intensified, as this popular property type becomes more mainstream across the southern U.S. “We’ve been involved with the product since its inception. As such, we’ve watched this asset class become an extreme success in terms of both tenant demand and its embrace by the capital markets as well,” said Martin.

SRC is a new luxury category in the BTR sector, a nod to the resort-inspired lifestyle and luxury resident experiences.  “As an early BTR Single-Story Rental Community innovator, having jumped into this niche in 2016, we’ve been able to craft a community experience that is unparalleled in the industry. We are the only BTR Single Story Rental company in the nation to strategically create branded communities that deliver a consistent top-tier experience regardless of locale,” said Todd Wood, CEO of Christopher Todd Communities. “That brand commands faster lease ups, 25-30% higher rent rates, and 50% higher resident retention.” 

“We continue to see opportunities with assets located in Arizona due to the influx in population,” said Matthew Tice, senior vice president of Inland Real Estate Acquisitions, LLC. “Christopher Todd Communities represent the top tier of the single-family rental communities, and we are happy to own and manage so many of these properties. Our Inland affiliates now own and manage approximately $1 billion of commercial real estate in Arizona.”

The private, smart-gated and walkable communities are comprised of single-story, pet-friendly smart homes.  The communities are less dense than typical multi-family, with no one above or below. The keyless door entry makes it easy to come and go with minimal touching of materials, and the private backyards give people the space to be socially distant yet maintain a sense of connection.  Resort-style amenities such as pool with ramadas, fitness center, event lawn and parks are part of each community. 

As part of the sale, each community will retain the Christopher Todd Communities brand, bringing added value to this transaction and a seamless experience for their residents.

The two communities in this sale were developed and wholly owned by Christopher Todd Communities and were built prior to its strategic partnership with Taylor Morrison Home Corporation (NYSE: TMHC). Taylor Morrison, America’s Most Trusted® Home Builder is taking the Christopher Todd brand to markets where they are invested with their traditional home building operations. 

Northmarq is an industry-leading capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales and loan servicing. We combine industry-leading capabilities with an open, flexible structure, enabling our team of seasoned professionals to create innovative solutions for clients. Our solid foundation and entrepreneurial approach have built an annual transaction volume of over $30 billion, and loan servicing of nearly $70 billion.