JLL Capital Markets arranged capital for Build-to-Rent communities across Arizona and Colorado
PHOENIX, (Jan. 17, 2025) – JLL Capital Markets announced that it has secured capital for Nexmetro Communities for a Build-to-Rent Portfolio across Phoenix, Arizona, and Denver, Colorado.
JLL represented the sponsor, NexMetro Communities on recapitalizing the portfolio which was valued at approximately $300 million. The financing structure includes $160 million in insurance capital invested and managed by Blackstone, plus a preferred equity investment from Artemis Real Estate Partners.
The four assets included in the portfolio are Avilla Gateway, Avilla Magnolia, Avilla Eastlake and Avilla Canyon. These communities are strategically located in high-growth submarkets of Phoenix and Denver, offering residents a unique blend of single-family home living and the flexibility of a rental.
Completed between 2021 and 2023, these Class-A built-to-rent communities feature detached, single-story homes with private backyards, high-end finishes, and resort-style community amenities. The average unit size across the portfolio is 959 square feet.
NexMetro Communities, a pioneer in the BTR sector, has developed over 9,400 homes across nearly 60 projects nationwide. This recapitalization allows NexMetro to continue its rapid growth and strategic expansion in key Sunbelt markets.
“NexMetro is creating a platform for growth for our best-in-class BTR portfolio while realizing the synergies from joint venture and partnership portfolio management,” said NexMetro CEO Josh Hartmann.“BTR benefits from favorable market fundamentals that lead to superior revenue growth and this recap allows for the upside of executing longer-term business partnerships.”
JLL Capital Market’s Advisory team was led by President of Capital Markets Kevin MacKenzie, Senior Managing Directors Brad Miner and Michael Joseph and Managing Directors Matthew Putterman and Chris Shea.
"This transaction underscores the strong investor appetite for high-quality BTR assets in growth markets," said MacKenzie. "NexMetro's innovative approach to rental housing continues to attract both residents and institutional capital, reflecting the evolving preferences in today's housing market."
JLL Capital Markets is a full-service global capital solutions provider for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers best-in-class solutions for clients, whether they need investment sales and advisory, debt advisory, equity advisory, or recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide and offices in nearly 50 countries.