Empire Group Recapitalizes Three BTR Communities Across Phoenix Metro
Empire Group of Companies, a commercial developer and a sponsor of private placement funds, has recapitalized three of its single-family build-to-rent communities across the Phoenix metropolitan area.
“These successful recapitalizations reflect the continued strength of the build-to-rent asset class and reaffirm our commitment to delivering high-quality rental communities across Arizona,” said Randy Grudzinski, partner at the Empire Group.
The company closed bridge loans totaling over $144 million with Arbor Realty Trust Inc., retiring the construction debt and the entirety of the $21 million of outstanding preferred equity associated with each project. Those preferred equity investors were admitted into each project between mid-2020 and early 2023; they earned an annualized current pay of 10% per year during the duration of their investment.
The recapitalization includes:
- The Village at Camelback Park: $46.17 million loan, closed May 27;
- The Village at Schnepf Farms: $36.11 million loan, closed April 24; and
- The Village at Paseo de Luces: $61.89 million loan, closed March 14.
“We’re proud to partner with Arbor Realty as we position these communities for long-term performance. Also, in a time where the pace of the for-sale market in multifamily is slow, it gives us great satisfaction to provide liquidity to our preferred equity investors,” said Grudzinski.
Each real estate project comprised its own standalone offering: Empire Village at Camelback Park, LLC, which launched in February 2020 and sought to raise $25 million; Empire Village at Schnepf Farms, LLC, which launched in December 2020 and sought to raise $25 million; and Empire Village at Paseo de Luces, LLC, which launched in January 2021 and sought to raise $30 million. Arete Wealth Management was the placement agent for each.
A 194-unit gated single-family BTR community, Village at Camelback Park sits at the northwest corner of 112th Avenue and Camelback Road in Phoenix. Spanning roughly 17 acres, the single-story residences feature one-, two-, and three-bedroom layouts from 680 to 1,282 square feet, with private backyards, smart-home technology, and fully equipped kitchens. The community offers resort-style amenities including a swimming pool with jacuzzi, 24-hour fitness center, clubhouse, dog park and spa, EV charging, and individual garages, all within 1.5 miles of Loop 101 and minutes from the Camelback Ranch baseball complex.
The Village at Schnepf Farms is a 144-unit gated BTR community located at the northwest corner of Rittenhouse and Cloud Roads in Queen Creek, Ariz. The approximately 13-acre development features one-, two-, and three-bedroom single-family units with floor plans ranging from 680 to 1,282 square feet. Situated adjacent to the iconic Schnepf Farms and the fast-growing San Tan Valley, the community offers a unique blend of rural charm and modern living.
Located just east of the northeast corner of 99th Avenue and Van Buren Street in Tolleson, Ariz., The Village at Paseo de Luces consists of 272 single-story units across approximately 22 acres. Offering one-, two-, and three-bedroom floor plans ranging from 680 to 1,282 square feet, the community combines space and privacy with the convenience of rental living. Positioned a half mile south of the I-10 and with easy access to Loops 101, 202, and 303, the location is ideal for residents commuting across the West Valley.
According to the company, its BTR communities comprise a robust pipeline of projects in various stages of development throughout Arizona and beyond. Last summer, it raised approximately $30 million of equity via the independent broker-dealer and registered investment adviser community to support the development of the Village at Mayfair, a 217-unit build-to-rent community in New Braunfels, Texas. The placement agent was Arete Wealth Management.
Headquartered in Scottsdale, Ariz., the Empire Group of Companies is a commercial developer in the Southwest. The firm is focused on the single-family build-to-rent space with more than 5,000 units in various stages of pre-development, development, lease-up and completion.
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