Taylor Morrison Sells Phoenix-Area BTR Asset for $55M
Northmarq arranged the deal and the acquisition financing.
Taylor Morrison has sold Yardly Paradisi, a 193-unit build-to-rent property in Surprise, Ariz. Christopher Todd Capital purchased it for $55.2 million, with the help of a $32.8 million loan issued by Brighthouse Financial, public records show. Northmarq arranged the sale and financing.
Under the new ownership, the asset will be rebranded as Christopher Todd Communities Paradisi. The community came online last year, featuring rental cottage-style homes. The unit mix includes one- and two-bedroom houses averaging 857 square feet. Amenities consist of a gym, a swimming pool and a dog park, as well as private backyards and smart home technology for each unit.
READ ALSO: Stumbling Blocks to Ownership Still Boosting BTR
Located at 12065 N. 168th Lane, the property is about 31 miles northwest of downtown Phoenix. Loop 303 and more than 1 million square feet of retail space are within walking distance.
Northmarq President Trevor Koskovich, Regional Managing Director Jesse Hudson and Senior Associate Logan Baca represented Taylor Morrison in the transaction. The two companies are partners in delivering BTR properties across the nation.
This sale closed four months after Taylor Morrison forged a $3 billion land and construction facility agreement with Kennedy Lewis to expand its Yardly brand. At the time, the homebuilder had already completed 36 such properties.
Additionally, Taylor Morrison also established a national BTR partnership with Northmarq, whereby the brokerage company represents several Yardly-branded properties across the Sun Belt, a Northmarq spokesperson told Multi-Housing News.
Last year, the firm sold the 142-unit Yardly Dechman in Grand Prairie, Texas, and the 167-unit Yardly McDowell in metro Phoenix. Tower 16 Capital Partners paid $46.5 million for the property in the Valley of the Sun.
Phoenix continues attracting BTR investment
Metro Phoenix’s BTR product features rental rates 21 percent higher than its multifamily counterpart, according to Northmarq. The promise of higher returns drew in more BTR investment across the metro, the sales volume growing 73.4 percent year-over-year and clocking in at $240.7 million during the first 10 months, Yardi Matrix data shows.
Additionally, the average rental home commanded a higher price, trading for $388,809 year-to-date through October, marking a 28.9 percent increase compared to the same period of last year, the data provider shows.
Blackstone’s Tricon Residential was among this year’s Phoenix BTR investors. The private equity firm paid $44.2 million for two properties totaling 91 homes. Northmarq represented the sellers, Arcadia Capital Group and Platform Ventures.
