Construction of a single-family, build-to-rent community in the Phoenix suburb of Mesa, Ariz, US has begun. The new 400-acre master-planned development will bring 197 rental homes to the blend of for-sale and community retail developed in the past eight years.
30% of the project’s units will be one-bedroom units, 63% two-bedroom homes, and 7% three-bedroom homes. A fitness center is among the common-area amenities featured in the community.
Located within Cadence at Gateway, the project owned by GTIS and Harvard Investments is believed to be the first Qualified Opportunity Zone (QOZ) investment in a single-family rental development since the Opportunity Zone program began in 2018.
The rental community will offer residents walkable access to commercial services and amenities. It will be situated near single-family for-sale neighborhoods and future retail projects. All 2,200 residential lots at Cadence have been sold to regional and national homebuilders, including Toll Brothers, Lennar, Pulte, Gehan and Maracay.
According to Josh Pristaw, senior managing director, head of capital markets and co-head of Brazil at GTIS Partners, even before the pandemic, the Phoenix MSA and other Sunbelt markets were benefiting from a number of long-term drivers. One of those drivers is that the disproportionately large Millennial cohort is reaching family formation years. “We view Mesa, Ariz., as the right place for this development for several reasons,” he said.
Reflective of its commitment to sustainability and the QOZ program’s objectives, GTIS will use an innovative panelized building system called Hercuwall, which is composed of foam, steel forms and poured concrete. The system does away with expensive, time-consuming steps and dramatically hikes energy efficiency. It provides R31 insulation, has three times the strength of traditional wood studs and is light enough to be carried by one individual. Hercuwall also delivers improved fire resistance, sound rating and overall building quality.