Around $1 billion in rental construction projects are in the planning stage for a Phoenix-based financing company.
With funding secured through the Tower Capital company, at least five of those projects will go up in the Phoenix metro area, including a 114-unit complex in the city of Surprise.
The build-to-rent residential market entails any number of detached, single-family rental units, usually built within a community.
Established in 2015, Tower Capital provides the vital service of connecting builders and lenders for such projects, offering customized structured financing to investors.
The company has taken on student housing, senior housing, office, and retail projects, among other market segments ranging in price from $2 million to $300 million.
The build-to-rent market has seen a double-digit growth in the last decade nationally as the demand for single-family rental housing has increased.
Such projects have proven to be particularly popular in the South and West.
According to the Houston Chronicle more than 7,500 build-to-rent homes have been built in recent years in the just Houston market alone.
The Charlotte, North Carolina-based Crescent Communities just announced plans to build up to 200 single-family build-to-rent homes in metro Atlanta and three other southeastern markets.
Last month it was announced that the Scottsdale-based Camelot Homes is entering the build-to-rent market with communities ranging in size from 10 to forty units.
Meanwhile, the Family Development company of Palm Desert, California, is in the application process for a 204-unit build-to-rent project in Gilbert, Arizona.
By Garry Boulard
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