January 27, 2025 – CenterSquare made a preferred equity investment for the development of Ironwood Homes at Blue Horizons, a 238-unit build-to-rent townhome and single-family detached community in the fast-growing West Valley submarket of Phoenix, AZ. The property will consist of all two-story units with high-end interior finishes, fenced backyards, attached garages, and extensive community amenities. This is a unique asset in the Phoenix build-to-rent market, which primarily consists of horizontal apartments without attached garages.
CenterSquare made a preferred equity investment with the same Sponsor in a similar property, Ironwood Homes at Rosefield, in July 2025. The Rosefield property has begun delivering homes successfully and is 24% leased, five months ahead of schedule, demonstrating the potential for success.
CenterSquare’s preferred equity investment ranges from 65% to 83% of the capital stack, with material Sponsor equity subordinated to CenterSquare’s position. The targeted return metrics are compelling on a risk adjusted basis given the downside protection from the preferred equity investment structure.
