ACRES Originates $62M Loan to Construct Phoenix-Area Rental CommunityMARCH 08, 2021
PHOENIX – (March 4, 2021) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, has originated a $62 million loan to fund the construction and stabilization of Bungalows on Cotton Lane (the “Property”), a 336-unit rental community located at North Cotton Lane and West Orangewood Avenue in the Glendale, Arizona area, just west of Loop 303.
Bungalows on Cotton Lane will be built within the New Frontier District, Glendale’s emergent area for development which contains new industrial, office, and retail properties accommodating Glendale and the entire West Valley. The loan is provided to Cavan Companies (“Cavan”), which has successfully completed multiple single-family rental communities in Arizona.
“We believe in emerging markets, such as Phoenix, that are well-positioned for sustained growth,” said ACRES Chief Executive Officer and President Mark Fogel. “As more residents migrate from high-tax and cost-of-living areas to smaller metros around the country, cities like Phoenix have growing competitive advantages such as talent pools and quality of life. We are also excited to continue our partnership with Cavan, whose substantial local knowledge and vision are materializing in another bungalow community project in the market.”
Bungalows on Cotton Lane will be a single-story rental community featuring amenities such as a resort-style pool and heated spa, farmhouse-style clubhouse with a full kitchen, fitness center, car charging stations, gated entry and 859 parking spaces. The development will contain 336 units with a mix of 66 one-bedroom, one-bathroom units; 152 two-bedroom, two-bathroom units; and 118 three-bedroom, two-bathroom units, with an overall average unit size of 1,066 square feet. Unit amenities will include smart-home technology, premium finishes, stainless steel appliances, private patios and backyards, among others. ACRES also recently provided financing for Cavan’s Bungalows on Bowlin project, located in Maricopa, Arizona.
“We are confident that Bungalows on Cotton Lane will be another successful investment for our portfolio,” said David Cavan, Chairman and Owner of Cavan. “It has been a pleasure to once again partner with ACRES on the financing, which will allow us to effectively execute our vision. Our team looks forward to providing residents with another competitive and highly amenitized housing option in an attractive area of the Phoenix market.”
The Property will be located just west of Loop 303, which provides access to Interstates 10 and 17 and connects the West Valley and North Phoenix. It is within proximity of employment, retail and entertainment centers such as The Market at Estrella Falls, Westgate Entertainment District, Luke Air Force Base, and the sports complex that houses both the NHL’s Phoenix Coyotes and NFL’s Arizona Cardinals in separate, but adjacent, facilities.
The Phoenix MSA is one of the fastest-growing metros in the nation, increasing its population by 692,000 since 2010. Phoenix boasts some of the highest hiring rates for finance and insurance jobs in the U.S. The Glendale area is expected to experience above-average growth over the next decade based on the area’s established employment base and accessibility to both the Phoenix and Los Angeles markets.
The loan was arranged by Jeremy Korer of Cushman Wakefield.