Moderne Lands Refi for Arizona BTR Community
Calmwater Capital originated the debt.
Moderne Communities has secured a two-year, $41.1 million refinancing note for Moderne at Rocking K, a 224-unit, single-family rental property in Vail, Ariz. Calmwater Capital originated the loan while Way Capital arranged the financing.
Previous debt on Moderne at Rocking K included a $37.4 million construction note issued by ABP Capital in 2021, Yardi Matrix data shows. The community debuted in two phases between November 2023 and September 2024.
The property comprises single-story homes with one- to three-bedroom layouts ranging from 839 to 1,565 square feet. Units feature smart home technology, granite countertops and 9-foot ceilings, among others. Community amenities include a gym, swimming pool and sports court.
READ ALSO: What Will 2025 Bring for the SFR/BTR Sector?
Moderne’s 17-acre property is at 7720 South Rocking K Ranch Loop, about 11 miles from Interstate 10 and some 22 miles southeast from downtown Tucson, Ariz. Roughly 6 miles north, residents can access the Saguaro National Park.
The SFR community is part of the 5,000-acre Rocking K master plan. Moderne is the only build-to-rent property in a 12-mile radius, according to prepared remarks by Zach Novatt, director at Calmwater.
Way Capital CEO and Founder Malcolm Davies and Senior Director RJ Opeka arranged the financing on behalf of Moderne Communities.
Tucson BTR rates grow steadily
Renting is cheaper than paying a mortgage in nearly half of the markets tracked by Yardi Matrix, according to a report by the data provider. In fact, 61 percent of renters in the largest U.S. metros are priced out of homebuying. Noticing the appeal of BTR, developers ramped up projects, with completions rising 270 percent from 2019 to 2023, the National Rental Home Council shows.
Tucson’s average advertised SFR rate was up 5.3 percent year-over-year, to $1,852 as of October, according to Yardi Matrix research. Meanwhile, the average mortgage payment was roughly $3,000, according to prepared statements by Calmwater Managing Principal Larry Grantham.
Meanwhile, the overall occupancy in Tucson’s BTR sector stood at 93.7 percent in October, down 10 basis points over 12 months, the data provider reveals. The dip was likely influenced by new stock coming online in the first 10 months of the year—more than 350 rental homes—a significant change from last year, which had no SFR completions, Yardi Matrix shows.
