Tower Capital arranged $70.2 million in construction financing for the development of a Phoenix-area Build-to-Rent community. Tower Capital’s Kyle McDonough, George Maravilla, David Stull, and Noah Schott arranged the financing on behalf of the Empire Group

The Village at Borgata is a 287-unit BTR community being developed by the Empire Group of Companies in Phoenix’s Queen Creek submarket. Tower Capital arranged non-recourse construction financing via a debt fund. The community will be situated on roughly 27 acres of land at 3959 W. Hunt Hwy in San Tan Valley, with a portion of the site dedicated to amenities such as open recreational space, fitness center, leasing clubhouse, dog parks, and an outdoor walking path. Each home at Village at Borgata will have an average unit size of 960 square feet and will offer some level of private patio or yard space in addition to smart home technology packages.

Empire Group has built rental units in the BTR space spanning multiple states including Arizona, Colorado, Indiana, and Texas with plans for further expansion and a robust pipeline set for 2025.

Maravilla said, “The non-recourse construction loan arranged by the Tower team was structured with multiple attractive features including a rate burn down and an earn out.  The rate burn down allows the sponsor to lower their interest rate spread at final certificate of occupancy and the earn out allows the sponsor to draw incremental proceeds from the loan once construction is complete. These features allow the sponsor to lower project capital expense and increase project returns.