Tower Capital, a national leader in arranging Build-to-Rent (BTR) construction financing, arranged $79.5 million to refinance an existing loan for the Village at Bronco Trail, a 354-unit BTR community in the Phoenix market.
The sponsor, Scottsdale, AZ-based Empire Group, commenced construction on the project in 2023. Tower Capital’s Kyle McDonough, Managing Partner and Co-Founder, George Maravilla, Partner, David Stull, Vice President, and Noah Schott, Capital Advisor, originated the non-recourse construction financing via a debt fund.
Tower Capital has capitalized more than $2.4 billion, primarily in construction financing, for build-to-rent projects involving 50 communities encompassing more than 8,850 units across the country. That includes closing more than $100 million in BTR construction financing in the state of Texas in Q1 2025 with a substantial pipeline behind it.
“The BTR market continues to experience strong growth and demand in markets across the Sunbelt,” said McDonough. “The refinance of an existing construction loan will provide the capital Empire Group needs to bring the Village at Bronco Trail to fruition. This is the 16th project we’ve arranged financing for Empire Group in the past several years.”
The roughly 30-acre Village at Bronco Trail site at 29th Avenue at Sonoran Desert Drive is slated for first deliveries in Fall of 2025. The community will consist of 354 units and will offer one-, two- and three-bedroom units with floor plans averaging 923 square feet. Amenities will include detached garages, a fitness center, car wash station, playground, a dog park, grilling area, resort-style pool, clubhouse, and common area open spaces. Each home will have a private yard, kitchen with quartz countertops, stainless steel appliances and backsplashes, full-size washers and dryers, and upgraded smart-home features and technology.
“We are excited to deliver Village at Bronco Trail, which is our largest build-to-rent project to date and one of the largest horizontal apartment communities in the country. The project’s proximity to TSMC and Halo Vista, the 2,300 acre project surrounding it, will provide in-demand housing for years to come,” said Richard Felker, founder of The Empire Group of Companies.
Interest in BTR projects remains strong as renters seek out the flexibility, amenities and single-family living style these purpose-built communities deliver. Maravilla adds, “Tower Capital was able to secure the financing via a national debt fund despite persistent challenging market conditions. Most lenders as of Q2 2025 remain very cautious as it relates to deploying construction financing. However, our BTR financing team was able to get lenders comfortable with the project, submarket, and sponsor profile, and as a result, we were able to capture multiple competitive term sheets for our client.”
