All Terms Confidential
George Smith Partners successfully secured a combined $55,500,000 in non-recourse debt and JV equity financing for the development of a ground-up, single-family, build-to-rent community in Tucson, AZ. Spanning 17.1 acres, the Project features 225 units across 168 stand-alone residential buildings and is part of a multi-phase master planned community (expected to span approximately 4,800 acres). The financing allowed for the acquisition of the development site and an anticipated groundbreaking in Q1 2022.
The Sponsor, a best-in-class homebuilder based in the Southwest, identified the site given its strategic proximity to Tucson’s fast-growing tech corridor. Build-to-rent communities have gained significant traction during a time where vacant rental units are being absorbed in less than 15 days in the Tucson submarket. The Sponsorship team recognized the substantial value behind the grand vision of the master planned community, supported by local knowledge and industry expertise in BTR developments. GSP was able to identify a non-recourse construction lender who not only understood the rapidly growing demand for rental units in a high-growth submarket, but also the Sponsor’s ability to execute on the business plan. GSP was also able to identify a joint venture equity partner that is actively targeting new investments in the BTR space nationwide.
October 19, 2022
George Smith Partners is pleased to announce the arrangement of $23,750,000 of LP JV-Equity for the ground-up construction of a 155-unit build-for-rent community in Loudon County, Virginia. The Sponsor originally engaged GSP to capitalize the land from purchase to finalization of the site plan that would be sold to a homebuilder. As headwinds from rising interest rates started affecting homebuilders’ price indications, the Sponsor decided to pivot into developing all 155 units as rental units with a Limited Partner. Through GSP’s deep relationships and the Sponsor’s expertise in development, the transaction changed in scope and direction ending in a great partnership and transaction for the Sponsor.
- Advisors: Ed Steffelin
$46,890,000 Debt and JV Equity Financing for a Ground-Up Single-Family Build-to-Rent Development; Phoenix, AZ
February 9, 2022
George Smith Partners successfully arranged a total of $46,890,000 in non-recourse debt and joint venture equity financing for the ground-up development of a single-family build-to-rent community in Phoenix, AZ. The Project spans approximately 14 acres and will feature 185 units across 150 stand-alone residential buildings located just 15 minutes west of Downtown Phoenix. The financing capitalized the acquisition of the development and related construction costs.
The Sponsor, a top tier homebuilder based in the Southwest, identified the site as an ideal candidate for re-entitlement to residential, and worked alongside the City to fast-track the change of use. The development team recognized the top-tier investment potential of the site given that build-to-rent product has been the fastest growing asset class in the U.S. housing market. Demand has grown exponentially as new ground-up single-family rental communities in the Phoenix area are not only averaging high absorption rates, but they are also achieving 42% rent premiums over neighboring garden-style apartments. GSP was able to identify a non-recourse construction lender with strong local knowledge that understood the high value of the re-entitled land, the strong local need for rental housing, as well as the Sponsor and joint venture equity partner’s extensive background and expertise in the BTR space.
All Terms Confidential
March 31, 2021
George Smith Partners successfully advised on $7,100,000 in joint venture equity financing for a 109-unit build-to-rent and Opportunity Zone transaction in Phoenix, AZ. This single family for rent community will offer one, two and three-bedroom detached homes with upscale furnishings and private yards for most units. This was the first transaction for our Sponsor who is optimistic about the popularity and emerging trend of the build-to-rent niche.