JV to Break Ground on Phoenix BTR
Northmarq arranged the financing for the project.
A joint venture led by Porter Kyle will break ground on The Wayne, a 100-unit single-family rental project in Chandler, Ariz., this month. Northmarq arranged the financing agreement for the project.
Brandon Harrington, managing director at Northmarq, told Multi-Housing News that First Bank provided construction financing for the development. Porter Kyle’s venture partner is a Southern California-based investment firm, which provided equity, he added.
The team expects completion of the $45.3 million project in the first quarter of 2027, according to Harrington. The Wayne will encompass one- to three-bedroom rental homes—each being slated to feature a two-car garage and private yard.
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The project is set to kick off at 1535 N. Dobson Rd., about 20 miles southeast of downtown Phoenix. Dobson Park Plaza, a roughly 70,000-square-foot retail center, as well as several parks and transit stops are within walking distance. Amenities will include a dog park, a trail system, as well as a clubhouse featuring coworking spaces, a gym and a swimming pool.
Home sales during 2024 reached 4 million—the lowest level in 30 years—according to the National Association of Realtors. Ongoing struggles related to affordability are set to further fuel BTR demand. Last year alone, issuers floated $7.8 billion of bonds backed by SFR, a staggering 118.7 percent increase year-over-year, Asset-Backed Alert reveals.
Metro Phoenix, a hotspot for BTR development
The Valley of the Sun’s single-family rental pipeline had around 9,200 units under construction as of February, according to Yardi Matrix data. Last year, upward of 4,200 SFR units debuted throughout metro Phoenix, marking an 11.8 percent year-over-year increase.
The supply glut had a profound impact on the market’s BTR advertised asking rental rates, which slumped nearly 4 percent year-over-year through January, a Yardi Matrix report shows. The SFR occupancy levels likewise decreased by more than 1 percent during the same interval.
Greater Phoenix’s Chandler BTR submarket has high barriers to entry due to a scarcity of available land, Harrington told MHN. Only about 190 rental homes were under construction in Chandler as of February, the data provider shows.
