Dominium, a leading affordable and multifamily housing developer and owner, has entered the build-to-rent (BTR) space, breaking ground on a 215-unit community in Maricopa, Arizona.
“Our team noticed a lot of exciting opportunities in the BTR space. One of the biggest benefits of this product type is that it allows us to offer residents private backyards—something that’s in high demand,” says Abby Perez, development analyst at Dominium. “It also allows us to consider land with lower density restrictions, opening a new range of development possibilities for our team.”
Saddleback Village at Stonegate, which will comprise 25 two-, 95 three-, and 95-four-bedroom homes between 910 and 1,442 square feet, will serve households earning 60% or less of the area median income. The three- and four-bedroom residences will be two stories.
The homes will feature private backyards, granite countertops, 9-foot ceilings, luxury vinyl-plank flooring with plush carpeting in bedrooms, designer lighting and hardware, walk-in closets, and bike storage. Residents also will have access to a playground and outdoor amenity spaces.
According to Dominium, Maricopa’s projected growth and number of families makes it an ideal location for the firm to launch its first BTR community.
“BTR is great opportunity for people who aren’t ready to buy but also want the amenities of a single-family home,” says Ron Mehl, senior vice president and project partner at Dominium. “Saddleback Village at Stonegate is expected to draw families so we are designing larger homes for them in mind. Dominium is providing an affordable housing option in Maricopa that has not been available previously.”
The $110 million development is a 4% low-income housing tax credit deal. Financing includes a tax-exempt construction loan provided by Western Alliance Bank, a taxable bridge loan from Bremer Bank, and a forward tax-exempt loan commitment from Freddie Mac serviced by Walker & Dunlop.
Additional partners include Todd & Associates as architect and Lifestyle Homes as general contractor.
Dominium, ranked No. 2 on both this year’s AHF 50 list of top of affordable housing developers and the National Multifamily Housing Council’s top 25 developers list, plans to build 35 BTR communities over the next few years, comprising 1,500 units of new affordable housing in Arizona.
Its Mountain West team is set to close and start construction on three additional BTR deals in the state this summer, including 304 units in Surprise, 200 units in Buckeye, and 278 units in Case Grande.
