Sunstone JV to Kick Off Phoenix BTR Project
The duo plans to break ground next month.
A joint venture between Sunstone Two Tree and Capital Square will break ground on a 238-unit BTR project in Buckeye, Ariz. Construction is set to kick off next month.
Sunstone paid $8.9 million for the 21 acres upon which the rental homes will rise, as reported by the Phoenix Business Journal.
The community will consist of 88 detached villas featuring three- and four-bedroom layouts that average 1,631 square feet, as well as 150 townhomes with two- and three-bedroom floorplans that round up to 1,271 square feet. Amenities are set to consist of a clubhouse, swimming pool, gym and playground, among other features.
Located at the confluence of North Jackrabbit Trail and West Blue Horizons Parkway, the construction site is about 25 miles west of downtown Phoenix. Interstate 10 runs within less than 1 mile, while Loop 303 is about 5 miles away.
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Sunstone has been on a BTR development spree lately. Just two months ago, it broke ground on another project in Mesa, Ariz. Additionally, the company has three other such communities underway in Waddell, Ariz., Tolleson, Ariz., and Phoenix, which will total more than 550 homes.
Capital Square teamed up with Sunstone for the Waddell project, dubbed Ironwood Homes at the Rosefield. Construction is underway, with the duo delivering 132 of the total 320 planned units earlier this month. Arbor Realty Trust backed this development with a $78.1 million construction loan in 2023, Yardi Matrix data shows.
Phoenix BTR deliveries surge, occupancy tightens
Metro Phoenix had nearly 7,200 BTR units underway as of December, according to Yardi Matrix data. What’s more, developers had an additional 10,200 rental homes in the planning and permitting stages.
Meanwhile, BTR housing completions in the market surged 35.6 percent year-over-year to more than 6,700 units in 2025, representing 28.5 percent of total stock, the data provider shows. Yet, despite this delivery glut, occupancy rates across BTR products still ticked up 1 percent year-over-year through October, clocking in at 93.6 percent on average.
Just this month, NexMetro delivered Avilla Western Garden, a 195-unit BTR property in Phoenix. Additionally, Crescent Communities and Heitman are about to further expand the market’s inventory through the completion of the 125-unit HARMON Ascend.
