Tower Capital, a leading financial services company, recently secured $70.2 million in construction financing for the development of a Build-to-Rent community in the Phoenix area. The team at Tower Capital, including Kyle McDonough, George Maravilla, David Stull and Noah Schott worked together to arrange this financing on behalf of their client Empire Group.
The Village at Borgata is an upcoming 287-unit BTR community located in Queen Creek submarket of Phoenix. The project will be developed by Empire Group and will span over 27 acres of land at 3959 W. Hunt Hwy in San Tan Valley. A portion of the site will be dedicated to various amenities such as open recreational space, fitness center, leasing clubhouse,dog parks and an outdoor walking path for residents’ enjoyment.
Each unit at Village at Borgata will have an average size of 960 square feet and offer private patio or yard spaces along with smart home technology packages.
Empire Group has successfully built rental units across multiple states including Arizona,COLORADO Indiana,and Texas with plans for further expansion.Their pipeline is set to grow significantly by2025.
According to Maravilla,”The non-recourse construction loan arranged by Tower Capital offers attractive features such as rate burn down and earn out options.The rate burn down allows our client to lower their interest rates upon final certificate occupancy while earn out option provides them with additional funds once construction is complete.These features not only reduce project capital expenses but also increase overall returns.”
This successful financing deal marks another milestone achievement for both Tower Capitaland Empire Group as they continue their partnership towards developing high-quality communities that meet market demand.
