PHOENIX, Feb. 26, 2016 /PRNewswire/ -- Phoenix-based homebuilder NexMetro Communities, America's innovator and builder of next generation, leased-home neighborhoods in the Sunbelt, announced today that it has closed on two financing deals with iStar Inc. (NYSE: STAR) for the development of Avilla branded rental communities in the Phoenix area. The newly formed relationship could lead to iStar's investment in as many as nine Avilla communities over the next twelve to eighteen months. NexMetro's developments are located in prime suburban communities within the Phoenix, Dallas-Fort Worth, and Denver areas. The gated properties feature detached single-story homes with private backyards, ten-foot ceilings, high-end finishes and open-concept designs.
"Our companies have a shared vision of Avilla Homes as an innovative response to a sizable, growing and underserved consumer demand in the leased-home marketplace," said Ken Abrahams, CEO of NexMetro Communities. "We are excited about our relationship with iStar and look forward to working together to offer a convenient, upscale leased-housing option to consumers in many markets across the country."
NexMetro Communities is planning to start construction on up to nine new Avilla communities in 2016. Construction on the first two iStar-financed developments began in late 2015 and will continue throughout the year, with the first homes available to lease beginning in early 2017. Construction of Avilla projects in metropolitan Denver will start in late 2016 with homes available to rent in late 2017. Renters may choose from one, two or three bedroom floor plans. Avilla Homes' rental rates are comparable to other upscale rental communities but offer a unique alternative to both traditional apartment product and single-family home rentals.
"The NexMetro team brings a proven track record and an innovative approach to these developments," said Steve Wylder, Vice President of iStar. "We think the product is uniquely positioned to meet the demands of a growing demographic seeking the privacy and feel of a single-family home with the convenience and flexibility of an apartment community. We're excited to have formed this relationship."
About Avilla Homes NexMetro's Avilla Homes neighborhoods signify a new breed of residential offerings, a "hybrid" that incorporates the attributes of single-family and multi-family residential projects. NexMetro and its affiliated companies have been developing Avilla Homes neighborhoods since 2010 to satisfy an underserved segment of the housing market that demands a higher quality leased-living experience. Avilla Homes are single story and detached with private back yards, similar to single-family homes, but the homes and landscape are maintained by the property management company, as is typical for multi-family properties. Leased instead of owned, Avilla Homes allow residents to live like homeowners without the burdens of home ownership.
Known as an "innovator" in creating non-traditional leased-living neighborhoods, NexMetro's Avilla Homes is a response to today's housing market demands. Demographic and consumer preferences trends show that Millennials to Baby Boomers are increasingly searching for upscale living choices that don't require a mortgage since flexibility, convenience and privacy top the list of consumer demands. With more than 20 Avilla Homes projects already completed or currently under construction, NexMetro has embarked on an aggressive plan to build nine Avilla Homes neighborhoods in 2016 throughout the Sunbelt. For detailed information about Avilla Homes, go to avillahomes.com.
NexMetro's executive team is comprised of experienced business, real estate, homebuilding and finance leaders—all of whom share a long-term vision for meeting the growing demands of a new consumer. For detailed information on NexMetro, visit nexmetro.com or call 602-559-9388.
About iStar iStar (NYSE: STAR) finances, invests in and develops real estate and real estate-related projects as part of its fully-integrated investment platform. Building on over two decades of experience and more than $35 billion of transactions, iStar brings uncommon capabilities and new ways of thinking to commercial real estate and adapts its investment strategy to changing market conditions. The Company is structured as a real estate investment trust ("REIT"), with a diversified portfolio focused on larger assets located in major metropolitan markets. Additional information on iStar is available at iStar.com.
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SOURCE NexMetro Communities