Capital Square, a sponsor of tax-advantaged real estate investments, and Sunstone Two Tree, a developer and operator of rental housing communities, announced that they have broken ground on a new build-for-rent community in Glendale, Arizona.
The 29-acre lot in the Phoenix suburb will become Ironwood Homes at Rosefield and feature 320 single-family rental homes and plenty of amenities. The new build-for-rent community is planned to include larger units, dedicated parking and private yards – with the “convenience” of renting. The property is projected to open during the summer 2025.
“Capital Square is pleased to break ground on the development of a single-family rental community in Glendale,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “This Southwestern market is a job engine with record-setting rent growth in recent years and a shortage of single-family homes.”
Development of the project is being primarily funded with proceeds from Capital Square Glendale BFR LLC, a project-specific limited liability company that is currently raising approximately $49 million in equity from accredited investors.
The partnership closed on the lot at the southeast corner of Northern Parkway and N. Sarival Avenue in September 2023. The 320-unit community will include 102 detached single-family homes, averaging 1,655 square feet, and 218 townhomes averaging 1,257 square feet. Each home will have two stories, direct garage access and a private yard. The community have various amenities including a pool, spa, fitness center, parks, BBQs, gated entry and sports courts. The lot is located with access to downtown Phoenix, Sky Harbor Airport, freeways, shopping centers, schools and employers. It is also in close proximity to the dining, retail and entertainment options at The Village at Prasada, a recently opened outdoor shopping center, and Desert Diamond Casino which is currently under construction.
“Greater Phoenix, the tenth largest metropolitan area in the nation, has experienced a shortage of high-quality single-family rental options due to significant population growth that has far exceeded the pace of housing development in recent years,” said Whitson Huffman, co-chief executive officer. “Glendale BFR provides investors an attractive opportunity to expand their portfolio into a high-growth Southwest market with an experienced team of developers, while also working to alleviate the single-family rental housing shortage.”
Sunstone Two Tree is a vertically integrated real estate operator and developer focused on rental housing throughout the United States. It was formed in 2023 as a result of the merger between Sunstone Properties Trust, an owner, operator and fund manager founded in 2012, and Two Tree Capital, an acquirer and developer of multi-family build-for-rent communities. Sunstone Two Tree has nine build-for-rent communities in various stages of development in Arizona, totaling 1,500 units.
Since its founding in 2012, Capital Square has reportedly raised more than $3 billion in equity from investors for its various real estate investment offerings, primarily Delaware statutory trust offerings employed to facilitate tax-advantaged 1031 exchanges and qualified opportunity zone funds.