New build-to-rent project in West Valley gets $52M in construction financing
Scottsdale-based Tower Capital LLC has arranged $51.5 million in construction financing for the development of a 190-unit build-to-rent community in west Phoenix.
Developing the luxury rental property is Scottsdale-based Zen Investing and 10Y, both founded by Bala Krishnan, who serves as CEO.
The project is slated to be built on 12 acres at 83rd Avenue and Thomas Road. It is Zen's first project, said Shelby Duplessis, managing partner of Zen Investing. The project at 2627 N. 83rd Ave. broke ground in June and is expected to be completed in October 2025.
All two-story townhomes at the development, called Skyview by Zen, will include two 2-car garages and floor plans averaging 1,420 square feet. One layout features three bedrooms, 2.5 baths with an office, while another encompasses a dual owner suite configuration with 2.5 baths and office.
While the traditional BTR product originally was envisioned as detached single-family homes built into one rental community with resort-like amenities, many developers like Zen are putting their own spin on the concept and incorporating more attached product, which means they won’t need to buy as much land.
Units include solid surface quartz countertops, stainless steel appliances, kitchen backsplashes, full-size washers/dryers and upgraded smart-home features and technology. Each home offers some level of private patio and/or yard space.
Community amenities include a dog run, BBQ grills, central community pool and clubhouse, and common open space.
Tower Capital's Kyle McDonough, managing partner and co-founder, and George Maravilla, partner, arranged the financing on behalf of Zen and 10Y. Duplessis said it's too soon to identify rental rates.
In May 2023, Duplessis left her position as president of land development at Scottsdale-based Empire Group of Cos. to launch her own consulting and real estate development firm called Diversified Future. Within a month of leaving Empire Group, she landed a managing partner role with Zen Investments, which has a handful of projects in the pipeline in metro Phoenix.
Zen Investments has another project lined up in Litchfield Park. The next project to break ground will be nearby at 81st Avenue and McDowell Road for 62 units, while a 130-unit development is being planned at Indian School and Dysart Road in Litchfield Park.
They are all using the same concept of a two-story townhome with two-car garages. Each garage will have an electric vehicle charging station.
“We’re working with Presidential Pools & Spas on a new concept for our pool,” she said. “It will be more user-friendly with little coves to sit in. Our first pool will have four coves with benches so you can sit in a cluster with friends and family.”
The new housing developments come at a time when Phoenix tops the nation in construction for build-to-rent communities, with more than 8,000 units under construction as of a Jan. 17 Northmarq report.
Since that study, developers have hundreds — if not thousands — more units in their pipelines, including:
New York-based Rockefeller Group (making its Arizona BTR debut with 142 units in south Phoenix)
Scottsdale-based MODUS Cos. ($425 million in projects totaling 1,030 units across metro Phoenix)
Atlanta-based Trilogy Investment Co. (84-unit BTR community in Avondale at a total development cost of $40 million)