Calmwater Capital has provided Moderne Communities with a $41.1 million loan to refinance a 224-unit build-to-rent community, Moderne at Rocking K, in Vail, Arizona.
The two-year senior loan is secured by Moderne at Rocking K (“Moderne”) located in the master planned community of Rocking K, 22 miles southeast of Downtown Tucson. Delivered in two stages between November 2023 and September 2024, the 17.1-acre community features 224 single-story, single-family rentable homes offering a mix of one-, two-and three-bedroom floorplans. Each home features open-concept living areas, private yard, and nine-foot ceilings. Community amenities include beach entry pool and spa, pickleball courts, barbecue and firepit area and fitness center.
With the ever-growing affordability crisis for single-family homes, developers and investors continue to see the benefits of build-to-rent communities. According to the National Rental Home Council, project completions increased 270% from 2019 to 2023.
“Moderne at Rocking K is filling a need for residential rentals that provide an alternative to apartment living,” explains Randy Bury, founder and president of Moderne Communities. “A gated community of rental homes with upscale amenities situated within a master planned community is unique to Vail, Arizona.”
The cost to rent at Moderne is significantly lower than owning a comparable home in the area, which averages approximately $3,000 per month, according to Calmwater Managing Principal Larry Grantham.
“Moderne saw tremendous lease-up velocity after the first phase was delivered as renters appreciated the opportunity to live in a home without the cost burden of home ownership,” said Grantham. “Now that all units are online, the property aims to achieve stabilized occupancy levels early next year.”
“Competition is scarce for similar product throughout the Tucson market which will only drive demand for Moderne,” added Calmwater Director Zach Novatt, who heads the firm’s originations efforts in the Western United States. “The nearest build-to-rent community is 12 miles away and there are only two properties expected to be delivered through the end of next year.”
The financing was arranged by Los Angeles-based Way Capital led by CEO and Founder Malcolm Davies and Senior Director RJ Opeka.
“We are thrilled to have represented Moderne Communities on their incredible Rocking K build-to-rent community. Calmwater was the perfect fit for their lending needs and excited to help coordinate this partnership,” said Opeka.
Calmwater Capital is a commercial real estate debt lender specializing in senior secured bridge and transitional loans. With offices in both Los Angeles and New York city metros, Calmwater provides certainty of execution and individualized attention to our borrowers nationwide. Founded in 2010, Calmwater has grown to attract institutional investors both domestically and internationally. Calmwater Capital has originated nearly $4 billion in loans across 247 transactions since 2010.
Moderne Communities is a real estate development and investment company headquartered in Scottsdale with build-for-rent communities in Arizona and Nevada. Founded and operated by Randy Bury in 2019, Moderne Communities is actively investing in, and building residential and commercial projects.
