Dominium is on track to expand its affordable build-to-rent inventory with another project in the Valley of the Sun. The company will built Townhomes on Earley, a BTR property set to comprise 278 homes in Casa Grande, Ariz.
Development partners consist of Ironmark Building Co. and a Dominium subsidiary firm handling construction and architecture.
Financing for the project comprises $62 million and $5 million in separate bonds issued by Arizona Industrial Development Authority with U.S. Bank as trustee, according to Yardi Matrix data. The former bears a 2043 maturity date, while the latter will be due in 2065. Additionally, KeyBank originated a $38.8 million construction loan set to mature in 2028.
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The affordable BTR project also secured LIHTC. Further partners include Barclays, Freddie Mac, Arizona Department of Housing, Winthrop & Weinstine, Todd & Associates, Hunter Engineering, Commercial Partners Title, Kutak Rock, and Colliers Securities.
Taking shape at 1355 E. Earley Road, Townhomes on Earley will consist of single- and two-story duplexes with private backyards encompassing three- and four-bedroom floorplans. Common-area amenities are set to include a clubhouse, gym, swimming pool and playground.
Phoenix’s growing affordable BTR pipeline
This project builds on Dominium’s affordable BTR momentum as the company just began work on its first such property in metro Phoenix earlier this year. Dubbed Saddleback Village at Stonegate, the Maricopa, Ariz., development is set for completion in 2026.
Dominium isn’t the sole company building affordable BTR communities across the market. Lincoln Avenue Communities also kicked off construction on The Ranches at Gunsmoke, a 271-unit affordable BTR development in Maricopa, Ariz. This project marked LAC’s first foray into the BTR sector.
Affordable BTR can be advantageous for both developers and residents. For instance, Dominium and LAC reported lower construction costs compared to garden-style multifamily, according to a Tax Credit Advisor article. Additionally, the end of LIHTC compliance could mean placing the homes on the for-sale market, with priority given to renters.
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