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$69,200,000 Construction Financing
Phoenix, AZ | March 2022
Thorofare Capital has closed a $69,200,000 construction loan to finance the development of Aileron Apartments.
Aileron Apartments, with a completion date of mid-2024, will feature 287 units across 11 buildings totaling 241,684 square feet situated on a 9.95-acre site on North 7th Avenue in Phoenix, Arizona.
Located in the Deer Valley Submarket, the project is close to various transportation arterials and is just north of the Loop 101 freeway. In addition, Aileron Apartment is a mile south of Deer Valley Airport. The eleven-building, Class A luxury residential complex will feature of mix of studios, 1 bedroom, and 2-bedroom units averaging 842 square feet.
Unit finishes will include vinyl plank and carpet flooring, solid surface quartz counters, tile backsplashes, wood cabinets, and stainless appliances. All units will have in-unit laundry and air conditioning. Amenities will include a pool, spa, clubhouse, dog park, business center, outdoor lounge, BBQ area, fitness room, secured access, and package center.
The Deer Valley multifamily submarket remains an attractive destination for both tenants and investors. Relative affordability and the influx of out-of-state renters leaving dense and expensive markets since the onset of the pandemic have also helped support fundamentals in the submarket. As of the fourth quarter of 2021, vacancy rate in the submarket fell near a historic low of 4.4%. The submarket has experienced positive net absorption of approximately 1,170 units during 2021. Additionally, the submarket has experienced 24.6% rent growth in the past 12 months at the time of loan origination.
The interest-only, structured construction loan carries an initial term of three years, in addition to two extension options, and capitalizes the project’s development budget through its lease-up upon commencement of operations.
The sponsor is a joint venture between a local, vertically integrated investment firm and a Los Angeles-based, family-owned commercial real estate investment, management, and development company.