Article originally posted on Phoenix Business Journal on Oct 5 2026

Varde Partners has closed on a $65.5 million loan to refinance a newly completed build-to-rent community.

Scottsdale-based Empire Group received the financing for its 240-unit Village at Sonoran Vista. Arranged by Way Capital, the floating-rate loan has a three-year initial term with two one-year extension options.

Varde has originated $9 billion in U.S. commercial real estate loans since 2017.

Spanning 34 acres in the Deer Valley submarket, the community is within a three-mile radius of Taiwan Semiconductor Manufacturing Co.⁠’s $265 billion semiconductor campus that will employ thousands of people in need of housing.

The rental community features single-story detached homes with private garages and carports. Shared amenities include a resident clubhouse, swimming pool, fitness center, car wash, dog wash and dog park.

Empire Group has more than 5,000 BTR units in various stages of pre-development, development, lease-up and completion.

With 30-year mortgage rates hovering around 7%, many would-be homebuyers are finding luxury BTR communities a more flexible option for getting into a new home, said Randy Grudzinski, partner and head of capital markets for Empire Group.

“And with TSMC⁠’s nearby investment generating a massive amount of jobs, which in turn is driving the need for additional housing options within close proximity, we believe that Sonoran Vista is well positioned to capitalize on this influx in demand,” he said.

Build-to-rent deliveries fall off in 2026

This development pipeline comes at a time when the metro’s BTR market is moving into a slower phase of the supply cycle, according to Northmarq⁠’s second quarter BTR report.

“Deliveries have fallen sharply in 2026, leading to vacancy improvements in recent periods, although rents have not yet begun to gain momentum,” according to the report.

Rents for BTR properties ended the quarter averaging $1,969 per month, which is 1.7% below the level during the same period in 2025 as the market continues to work through new supply.

The vacancy rate has declined by 100 basis points during the past six months to 8.8%, although the rate is down just 10 basis points year-over-year, according to Northmarq’s Market Insights report.

Meanwhile, investment activity has been modest, with a handful of BTR properties trading through the first half of 2026.

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