The loan was provided to Cavan Companies (“Cavan”), the developer, and was originated by ACRES Capital.
Jeremy Korer and Kristian Brown with Cushman & Wakefield’s Equity, Debt & Structured Finance Group in Phoenix represented the developer in the transaction.
“Bungalows on Cotton Lane will provide a wonderful Class A horizontal rental opportunity for residents of Glendale and Phoenix Metro market seeking a modern stand-alone home with all the amenity perks found in a more luxury multifamily environment, along with maintenance-free living,” said Jeremy Korer, Senior Director. “The Bungalows are a unique and flexible housing product that meet the demand of new rental market trends — boasting higher rent and higher retention.”
Korer, who has already closed nine finance transactions in the built-to-rent space in the Phoenix market, added, “The built-to-rent trend is a fairly new product type but that has exploded the past few years. We are seeing increasing demand from renters as well as investors, developers and lenders wanting to get into this space in Phoenix as well as other parts of the country. One of the draws has been they provide residents with the feel of a single-family home.”
Bungalows on Cotton Lane is located at North Cotton Lane and West Orangewood Avenue, just west of Loop 303, and will feature:
• 336 single-story units, comprising one-, two- and three-bedroom units
• 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 site is located in a newly emerging area dominated by the construction of several major industrial and distribution parks and offers excellent access and exposure from the 303 loop, a key route providing access to Interstates 10 and 17. The location is also near major employment, retail and entertainment centers.