Cadence is a 260-home build-to-rent community in suburban Phoenix, built to a 6.55% yield on cost and held for income to a year-five exit at a 5.0% cap.

A family that wants a house to rent in suburban Phoenix has almost nowhere to go.

Cadence is 260 rental homes with private yards and garages around a shared pool and clubhouse.

Four home types, from 720-square-foot cottages to 1,750-square-foot detached houses.

An entitled suburban parcel, graded and serviced before the first home goes vertical.

Detached cottages and townhomes in a walkable, desert-modern plan around a central amenity core.

Full kitchens, in-home laundry, private yards and garages, with a pool, clubhouse and managed grounds.

In-migration keeps arriving while the pipeline of family-sized rentals stays thin.

Sun Belt households keep forming while for-sale ownership stays out of reach.

260 homes at a $2,925 blended rent produce $5.62M of net operating income on $85.75M of cost.

Pre-leasing off the model homes, then a phased ramp to about 94% occupancy.

A development and operating team that builds the community and manages it in-house after lease-up.

The $85.75M project is funded with a $51.45M construction loan at 60% loan-to-cost and $34.3M of equity, being $34.0M of LP equity and $0.3M of GP co-invest. At stabilisation the construction loan refinances into a $59.4M permanent loan sized to a 1.35x debt service cover, which releases about $8.0M back to equity. The debt sits behind a first legal charge, a completion guarantee and a stabilisation test that gates the refinance.

Groundbreak to stabilization over three years, then hold for income to a year-five exit.

Distributions run through a standard waterfall: an 8% preferred return to limited partners, then a 70/30 split with the general partner above the preferred. On the base case, limited partners earn about a 16% net IRR, a 1.95x equity multiple and a 5.5% stabilised cash-on-cash yield over the five-year hold, with interim distributions paid quarterly once the community stabilises.

Cadence seeks $51.45M of construction finance at 60% loan-to-cost, refinancing to a $59.4M permanent loan at a 1.35x debt service cover, and $34.0M of LP equity. The develop-to-core hold returns about a 16% net IRR and 1.95x to limited partners over five years, with an exit near $112.4M at a 5.0% cap.