Affordable BTR Project to Break Ground in Phoenix
Upon its 2026 completion, the community will cater to residents earning up to 60 percent of the area median income.
Dominium is set to break ground on its first affordable build-to-rent project in Greater Phoenix. Construction on the 215-unit community dubbed Saddleback Village at Stonegate will kick off this month in Maricopa, Ariz.
Lifestyle Homes will serve as the general contractor for the BTR project designed by Todd & Associates. Upon its summer 2026 completion, Saddleback Village at Stonegate will cater to residents earning up to 60 percent of the area median income.
Located at 18260 N. Alan Stephens Parkway, the 19-acre site is roughly 36 miles south of downtown Phoenix. Dominium purchased it last December for $8.3 million.
READ ALSO: What Does the New Wave of BTR Homes Look Like? Here’s Crescent’s View
The community will encompass three- and four-bedroom rental homes, which are set to feature private backyards, 9-foot ceilings and key-fob controlled entry points, among others. Amenities are to include a playground, private backyards and outdoor amenity spaces.
Development funds include a $45.7 million Freddie Mac loan and $41.5 million in LIHTC equity. Walker & Dunlop arranged the financing.
Additional project partners comprise Western Alliance Bank, Bremer Bank, Arizona Department of Housing, Arizona Industrial Development Authority, Winthrop & Weinstine, Holland & Knight, Stover Legal, Slania Law, Squire Patton Boggs, Bowman Engineering, Commercial Partners Title, Kutak Rock and U.S. Bank.
Over the next few years, Dominium plans to build 1,500 affordable housing units across 35 projects in Arizona. Last March, the developer broke ground on two neighboring communities in Glendale, Ariz., that will add 605 such units to the Valley’s inventory when complete.
Overcoming the obstacles of building affordable BTR
Constructing affordable BTR communities requires tackling a series of challenges, from zoning to contractors and investors, according to a Tax Credit Advisor article.
Unlike the expected traditional density of income-restricted multifamily projects—about 22 units per acre—the BTR counterpart may be substantially lower, the same source shows. This could cause issues in getting the development through city officials.
Another hurdle is finding contractors that can accept payment and performance bonds—as well as maximum price contracts—that investors typically require, Tax Credit Advisor reports. There’s no great overlap between BTR and affordable housing general contractors, adding to the difficulty of finding home builders.
However, there are success stories as well. A partnership between Lincoln Avenue Communities and WNC & Associates is building The Ranches at Gunsmoke, a 271-unit BTR project also in Maricopa. The duo received funding last year and completion is expected in 2026.
