Lincoln Avenue JV Finances Phoenix Affordable BTR

Lincoln Avenue Communities, in partnership with WNC & Associates, has secured financing for The Ranches at Gunsmoke, a 271-unit build-to-rent affordable development in Maricopa, Ariz. Completion is slated for 2026.

Citibank originated a construction and a permanent loan. The former is a $91 million note set to mature in 2027, Yardi Matrix data shows. Additional funding includes $65 million in tax-exempt bonds issued by the Arizona Development Authority, as well as $49 million in LIHTC and solar equity syndicated by WNC. According to prepared statements by WNC Senior Vice President Darrick Metz, the investor provided 40 percent of the development’s financing.

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The project—which is LAC’s first single-family rental project—will comprise a mix of two- and three-bedroom duplexes, as well as standalone homes, each featuring patio space, walk-in closets and private fenced backyard. The rental homes will cater to residents earning up to 60 percent Area Median Income.

Amenities will include a gym, swimming pool, club house and rental storage units. What’s more, the crew will implement a solar carport system that’s expected to offset roughly 50 percent of the community’s electricity usage.

The 22-acre development is at 19550 N. Gunsmoke Road, roughly 39 miles south of downtown Phoenix. Within 2 miles, future residents may access a 189,000-square-foot shopping center and several parks.

Affordable BTR in Phoenix

A recent Yardi Matrix study found that renting is cheaper than paying a mortgage in nearly half of the markets tracked by the data provider. In the Valley of the Sun, the difference was $1,231 in favor of renting as of March.

The delta is likely higher as BTR advertised asking rents in Phoenix were down 3.8 percent year-over-year through August. Nevertheless, as home ownership is unlikely for many, the need for affordable single-family rental communities remains high.