New York-based ACRES Capital Corp. has originated an approximately $28 million loan to fund the construction and stabilization of Bungalows on Bowlin, a 196-unit, single-story rental community in Maricopa, Arizona.
The loan is provided to sponsor Cavan Companies, an innovator in real estate development that has completed multiple bungalow projects in the Phoenix metropolitan statistical area (MSA).
“We are pleased to complete this transaction in the Phoenix market, which is an ideal area for new multifamily development due to a sustained influx of new residents,” said ACRES Chief Executive Officer and President Mark Fogel.
“The MSA’s population growth is projected to continue in the coming years, as new residents arrive from states with higher taxes and costs of living to take advantage of Arizona’s quality-of-life benefits and lower prices. The Property is poised to benefit from the sponsor’s deep local knowledge and experience with these types of rental communities.”
Bungalows on Bowlin will feature high-end exterior and interior amenities and finishes, including a resort-style pool and spa, farmhouse-style clubhouse and 426 on-site parking spaces. Once completed, the 16-acre property will be one of the only single-story rental communities in the Maricopa submarket, offering residents seeking to live within the Phoenix MSA a competitive alternative to home buying or renting in more expensive suburbs of Phoenix.
The loan was arranged by Jeremy Korer of Cushman & Wakefield.