Tower Capital Sees Significant Activity in Build-for-Rent Market

Tower Capital closed nearly $370 million in financing transactions so far in 2021 and is on track to reach $750 million for the year. The commercial real estate lending activity in H1 2021 was powered by a surge in build-for-rent (BFR) activity as well as increased activity to meet housing demand including conversions of hotels to multifamily housing.

“We continue to see significant activity in the build-for-rent market nationally, an asset class that gained popularity in Phoenix and for which we have another $1 billion of BFR projects in the pipeline,” says Adam Finkel, principal and co-founder of Tower Capital. “Our results this year also reflect a burgeoning hotel-to-multifamily conversion trend.”

Tower Capital’s 2021 activity encompassed 31 acquisition, refinancing and construction transactions including more than 2,800 multifamily units, 800 single-family build-for-rent units, more than 290,000 square feet of industrial space and a robust deal pipeline exceeding $250 million expected to close in the next 60 days. The company participated in a wide array of debt and equity placements across asset classes. The most active capital sources so far this year have been debt funds, banks and agency lenders.