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BTR Weekly - October 2, 2024 - Brunton Management acquires BTR asset in Phoenix, AZ

BTR Weekly - October 2, 2024 - Brunton Management acquires BTR asset in Phoenix, AZ

Brunton Management buys BTR community in AZ. East West Partners & Holder Properties kick off 50 unit BTR project. NexMetro enters the Atlanta market with 193-unit BTR asset. JLL secures $32 million in funding for BTR development. Two new BTR deals.

Matt H & Aid Sopjani
October 02, 2024

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NEWS ROUNDUP

ACQUISITION: Brunton Management acquires BTR asset in Phoenix, AZ. Brunton Management acquired Sanctuary on 51st, a 217 unit BTR development in Phoenix, AZ for $61.4 million ($282,949/unit). The seller, Arizona-based Brown Group Inc., was represented by Berkadia, with the transaction facilitated by Berkadia’s Mark Forrester, Ric Holway, Dan Cheyne, Spencer Scott and Andrew Curtis. Sanctuary on 51st features one-, two- and three-bedroom floor plans with an average size of 1,055 square feet.

DEVELOPMENT: East West Partners & Holder Properties kick off BTR project in South Carolina. East West Partners and Holder Properties broke ground on The Fenland, a 36-acre waterfront community on Daniel Island. The development, consisting of 50 three- and four-bedroom townhomes, will be managed by East West Hospitality. Will Menkes, President and Managing Director at Holder Properties, and Chris Frampton, CEO at East West Partners, expressed great enthusiasm about this collaboration.

DEVELOPMENT: NexMetro enters the Atlanta market with 193-unit BTR community. Phoenix-based NexMetro has entered the Atlanta market with a build-to-rent project called South Pine. The gated 34-acre community will consist of 193 townhomes, each with private backyards. Atlanta-based Jim Chapman Construction Group (JCCG) is the general contractor. Jim Chapman, JCCG President, highlighted his company’s robust track record as a key factor in NexMetro's decision to partner with them.

FINANCING: JLL Capital Markets secures $32 million in funding for BTR development. Agador Spartacus Development has secured a $32 million construction loan for Magnolia at Spring Hill, a 162-unit BTR project in Spring Hill, FL. Max La Cava and Pier Barinci of JLL arranged the financing which was provided by North River Partners and Amzak Capital Partners. Scheduled for completion in 2025, Magnolia at Spring Hill will feature two- and three-bedroom townhomes, along with two-bedroom apartment units.

READ: BTR in short supply. Demand for BTR is expected to rise significantly in the coming year, despite a current slowdown in new developments due to capital constraints. Brad Hunter, founder of Hunter Housing Economics, claims that the US will be short by 63,208 BTR units this year as demand outpaces supply. This gap is forecasted to increase to 76,466 units in 2025.