Joint Venture Starts 197-Unit Single-Family Rental Project Near Phoenix

Article originally posted on CoStar on August 31, 2023

Two Phoenix real estate development companies started Avilla Palomino, a 197-unit single-family rental complex in Glendale, Arizona, that is expected to open next summer.

General contracting firm and developer Mosaic and residential developer NexMetro Communities are building the cottage-style apartments on 18 acres at 5023 W. Peoria Ave., the companies said in a statement.

The one-, two- and three-bedroom duplexes and single-family detached homes with private backyards and front patios are designed to range from 690 to 1,265 square feet.

The project will have a pool and spa, pavilion, outdoor barbeques, open space and a dog park, the developers said.

The project is expected to help alleviate a shortage of high-end rental homes in Phoenix’s Glendale suburb, Mosaic and NexMetro said.

Phoenix’s strong population growth paired with the dwindling supply of for-sale homes in the region has contributed to the rising demand for rental homes over the past few years.

Avilla Palomino is Mosaic’s third project and NexMetro’s 24th in the region, but the joint venture’s first in Glendale.

Despite the short-term uncertainty caused by tighter lending and heightened construction, single-family rentals are to continue capturing a larger share of the overall housing market in coming years, according to Northmarq’s recent Single-Family Build-to-Rent Special Report.

A combination of high mortgage rates and low supply of available for-sale homes is making it tougher to transition from renting to owning, causing more households to stay in the renter pool for longer periods, according to the report.