By Angela Gonzales | Phoenix Business Journal
Known for its award-winning custom homes, Camelot Homes is taking a giant leap into the single-family rental home market.
The Scottsdale-based family owned business is working in partnership with Scottsdale-based Arcadia Communities to build single-family rental homes scattered throughout the Valley, with more than 300 lots in escrow.
But these single-family rentals are different from the wildly popular build-to-rent communities that many homebuilders are developing throughout the Valley, where a large cluster of single-family detached homes are built within a highly amenitized community.
Instead, Camelot is building smaller communities ranging between 10 and 40 units without the extra perks.
“They could be sold as single-family homes but we’re renting them instead,” said Julie Hancock, managing director of Camelot Homes.
These two-story, detached single-family homes with two-car garages all have their own backyards. Three- and four-bedroom homes will be about 1,700 square feet, with monthly rental rates starting at $2,500.
“These are infill locations surrounded by other single-family neighborhoods,” Hancock said. “They are nice homes that fit in the neighborhood. Someday we may sell them as single family homes but right now we’re renting them.”
With 93 homes currently under development across the Valley, another 334 more lots are in escrow, she said.
Arcadia Communities is composed of a group of local prominent real estate developers who joined together to develop these single-family rentals and will be responsible for leasing and managing.
Leading Arcadia Communities are Josh Tice, chief financial officer who is managing all project underwriting and financing, and Chris Brown, vice president of acquisitions with responsibility for acquisitions, rezoning and construction management of projects.
“The goal is not to go out into the periphery markets,” Tice said. “Our goal is to do something nuanced in niche, infill communities.”
The first project is Arcadia Citrus Court, 11 rental units that are 100% leased near 37th and Flower streets in the Arcadia Lite area of Phoenix.
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