'FOR RENT' PAYING OFF Christopher Todd sells five communities for $235 million By STEVE BURKS
T
he rise in the appeal of singlefamily, for-rent homes can clearly be seen in the Phoenix market. From 2015 to 2019, the Valley saw just over 3,000 single-family, for rent homes built. Compare that five year span to the almost 1,900 under construction in the Valley currently, and the trend doesn’t show any signs of slowing. One of the first companies to specialize in these types of communities, Christopher Todd, recently entered into a partnership with one of the largest homebuilders in Arizona, Taylor Morrison Home Corp. Taylor Morrison will buy land
16 | May-June 2020
and build the communities, complete with the Christopher Todd brand. Christopher Todd will then put its marketing and leasing expertise to work filling those communities. In the last two years, Christopher Todd invested more than $230 million into building communities in the Phoenix market, mostly in the western part of the Valley. In March, Christopher Todd sold five of their completed communities to The Inland Real Estate Group of Companies, Inc. (Inland). According to NorthMarq, which served as broker and provided financing, the sales price for all five is $235 million. “These communities were attractive because of their uniqueness, fast leaseups, high occupancy and rents,” said Matt Tice, senior vice president of Inland Real Estate Acquisitions, LLC. “They are innovative, luxury, single-family home rental communities that disrupt the
multi-family industry with smart gated communities, pet-friendly one- and twobedroom single-family smart homes, private backyards, and resort-style luxury amenities in ideal locations.” NorthMarq’s Investment Sales team led by Trevor Koskovich, Jesse Hudson, and Bill Hahn brokered the sale and represented the buyer and seller. Acquisition financing for the portfolio was arranged by James DuMars and Griffin Martin, managing directors of debt and equity for NorthMarq’s Phoenix office. Three properties closed escrow and two more properties are in escrow and will be closing when each respective community is stabilized at 90 percent occupancy. Based on the $235 million total, the average price per unit is $250,000, with an average of $279.23 per square foot — the highest in the West Valley. “Not only is it the third largest multifamily sale, by dollar volume,
