Real estate services firm Cushman & Wakefield has arranged a loan of $62m to developer Cavan Companies from ACRES Capital to build a multi-family community in Glendale, Arizona, the US.
The construction loan is for Cavan to construct a new single-story, built-to-rent community called Bungalows on Cotton Lane, which is located on 35 acres of land in Glendale.
Cushman & Wakefield’s Equity, Debt & Structured Finance Group in Phoenix, Jeremy Korer and Kristian Brown, represented Cavan Companies in the transaction.
Senior director Korer said: “Bungalows on Cotton Lane will provide a wonderful Class A horizontal rental opportunity for residents of Glendale and Phoenix Metro market seeking a modern stand-alone home with all the amenity perks found in a more luxury multi-family environment, along with maintenance-free living. The community is a unique and flexible housing product that meets the demand of new rental market trends — boasting higher rent and higher retention.
“The built-to-rent trend is a fairly new product type but that has exploded the past few years. We are seeing increasing demand from renters as well as investors, developers and lenders wanting to get into this space in Phoenix as well as other parts of the country. One of the draws has been they provide residents with the feel of a single-family home.”
Korer has already closed nine such financial transactions in Phoenix’ built-to-rent market.
Bungalows on Cotton Lane will showcase 336 single-story housing consisting of one-, two- and three-bedroom units, which will include a gated entry along with more than 850 parking spaces.
The site is not only located near major retail, employment and entertainment centres, it also lies in a newly emerging area that is dominated by construction works of several major industrial and distribution parks. Moreover, it is accessible to the 303 loop – a key route that links to Interstates 10 and 17.
In 2020, Cushman & Wakefield, which has over 400 offices in 60 countries, showed revenues to the tune of $7.8bn.
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The site is not only located near major retail, employment and entertainment centres, it also lies in a newly emerging area that is dominated by construction works of several major industrial and distribution parks. Credit: Ralph Kelly/Unsplash.
