Phoenix BTR Project Lands $52M
First units are slated for delivery in October 2025.
A joint venture between Zen Investing and 10Y has secured a $51.5 million non-recourse construction loan for Skyview by Zen, a 190-unit build-to-rent community in Phoenix. Arbor Realty Trust provided the financing, public records show, in a deal arranged by Tower Capital.
Construction is already underway at the 12-acre site and the developers expect to bring the first units online in October 2025.
Plans call for two-story townhomes with two-car garages. Configured in two layouts, floorplans will encompass two- and three-bedroom units averaging 1,420 square feet, according to prepared remarks by Tower Capital Partner George Maravilla. Additionally, each layout will provide either an office or dual-owner suites. Units will feature smart-home technology and quartz countertops.
READ ALSO: Build-to-Rent Development: Here’s Where BTR Is Blooming
The townhomes are slated to feature private patios, as well as yard spaces. Common-area amenities are to include a dog run, barbecue grills, a swimming pool and a clubhouse.
Located at 2627 N. 83rd Ave., the site is roughly 3 miles north of Interstate 10, while downtown Glendale, Ariz., and Phoenix are some 7 and 11 miles away, respectively. Desert Sky Mall, a 130-store shopping center, is roughly 1 mile from the development.
Tower Capital Managing Partner and Co-Founder Kyle McDonough, alongside Partner George Maravilla, secured the funding for Zen Investing and 10Y.
A closer look at Phoenix’s build-to-rent market
At a national level, developers are expected to debut 35,170 build-to-rent units this year—roughly 6.4 percent of total multifamily deliveries—but the figure is slated to drop to 24,509 units next year, according to Yardi Matrix research.
Greater Phoenix had upward of 7,400 build-to-rent units in its supply pipeline as of July, Yardi Matrix data shows. A total of 4,429 units are expected to come online this year in the metro, accounting for 1.2 percent of total stock, as forecasted by the same data provider.
Year-over-year as of June, the national advertised asking rates in the build-to-rent market grew by 1.1 percent, edging the multifamily counterpart which registered a 0.6 percent growth rate during the same period, according to a report. However, Phoenix saw a 4.5 percent decline in its build-to-rent advertised asking rental rates during the same interval.
Earlier this year, Rockefeller Group contributed to Phoenix’s build-to-rent pipeline by breaking ground on two communities totaling 152 townhouses and carriage-style units. The developments are Rockefeller’s first single-family rental projects in the metro.
