Capital Square Raises $43M for Phoenix Development
The community will be located in one of the city's fastest-growing suburbs.
Capital Square has raised over $43 million in equity from investors for the capitalization of Capital Square Glendale BFR LLC. The Regulation D private placement fund will facilitate the development of a 320-unit build-to-rent community located in Glendale, Ariz.
Capital Square has partnered with Sunstone Two Tree as co-developer of the project. When complete, the development will be known as Ironwood Homes at The Rosefield, located at the southeast corner of Northern Parkway and North Sarival Ave. in Glendale, a major suburb of Phoenix.
Construction is expected to finish in the third quarter of 2026, with about 10 percent of the project’s units already delivered. Leasing and initial move-ins are underway, according to Capital Square.
Ironwood Homes at The Rosefield will include 102 detached single-family homes averaging 1,655 square feet, and 218 townhouses, which have a mean of 1,257 square feet. Each unit will be two stories, with direct garage access and a private yard. Community amenities will include a pool, spa, fitness center, barbecue areas, gated entry systems and sports courts.
READ ALSO: BTR Townhomes Take Off
The success of the offering illustrates the growing demand for build-for-rent communities, especially in locations like Glendale, noted Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square, in a statement.
Glendale is indeed a growth market: In 2020, the U.S. Census counted 248,399 people in the city, and by 2024, the bureau estimates that there are 258,143, a nearly four percent increase.
Since 2012, Capital Square’s mixed-use development projects have totaled over 2,000 multifamily units, with a total development value of more than $800 million. Capital Square Living, the firm’s property management division, now manages over 13,000 apartments in a number of states.
Why Phoenix is still a BTR hotspot
Metro Phoenix has seen the strongest amount of BTR development of anywhere in the nation recently, according to Yardi Matrix data analyzed by Point2Homes.
In 2024, the metro saw the completion of 4,460 units. That total significantly outpaced the second-strongest market, metro DFW, which saw 3,197 new BTR units come on line last year. Demand for BTRs is strong in Arizona in part due to economic growth, particularly in health care services and transportation.
Many U.S. markets that are seeing economic growth are seeing BTR growth as well, which Point2Homes chalks up to strong job creation, but also the confluence of remote workers’ need for space and young families looking for larger homes – at a time when for-sale housing is increasingly unaffordable,
Nationwide, only about 3,800 BTR units came on the market in 2015, notes Point2Homes. A decade later, in 2024, that total had mushroomed to 39,000.
