Developer Lands $73M Bridge Loan For Phoenix Build-To-Rent Community
California-based Golden Horizon Enterprises has secured a $73.1M bridge loan to finance its acquisition of a build-to-rent community in Phoenix.
Lument, a subsidiary of Orix Corp. USA, provided the financing for Golden Horizon, which purchased the property earlier this month for $112.5M, according to a Lument press release. The loan was originated by Arcus Real Estate Capital.
The 334-unit gated community, Merrick on Camelback — formerly called the Bungalows on Camelback — includes one-, two- and three-bedroom units in single-level living and private detached units. Amenities include a dog park, fitness center and pool.
The loan has a three-year term with two one-year extension options, according to the July 24 release.
“The flexible terms provided by Lument will help finance the next chapter for this property as we bring our vision to life,” Marlowe Moy, principal at Golden Horizon, said in the release.
The Southwest has seen strong BTR development activity this year, with nearly 55,000 units underway in the Sun Belt as of February, according to a RealPage report. Phoenix alone had 9,000 units underway in February, or 13% of the national BTR construction pipeline, followed by Dallas and Atlanta.
Eight U.S. submarkets had 1,000 or more BTR units under construction, with three of those in Phoenix — the Avondale/Goodyear/West Glendale area, Pinal County and Deer Valley, according to the RealPage report.
Merrick on Camelback is located in Phoenix's West Valley submarket.
