Dealmaker: CBRE Secures $35M for BTR Community in Peoria, Ariz.

(Illustration courtesy of CBRE)

CBRE, Dallas, secured a $35.25 million construction loan for Bella Olivia, a build-to-rent community in Peoria, Ariz.

The property is currently under construction with a summer 2024 expected delivery date.

Bruce Francis, Doug Birrell, Bob Ybarra, Shaun Moothart, Nick Santangelo and Jim Korinek with CBRE Capital Markets’ Debt and Structured Finance team secured an 80% loan-to-cost full-term interest-only construction loan with an initial 30-month term for Arizona-based Bela Flor Communities.

“Construction capital continues to be constrained, as many banks have taken a more conservative underwriting approach over the past year,” Birrell noted. “However, alternative sources continue to provide liquidity to the market for developments such as Bella Olivia that help fulfill a need within the market.”

Bella Olivia will be a 112-unit property at 9625 West Olive Avenue in southwest Peoria. The community will include one-, two- and three-bedroom units across 16 residential buildings.

CBRE reported the BTR sector has boomed in recent years in the Phoenix area. Developers have delivered more than 10,000 build-to-rent units in Arizona since 2018, the firm said.