Mar 11, 2024
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Phoenix is ground zero for build-to-rent communities, where single-story, detached homes are built in a community with resort-like amenities
Scottsdale-based TerraLane Communities has opened a 297-unit rental community in Goodyear, next to another community it had built and sold in 2022.
TerraLane at Canyon Trails South, at 25 N. 173rd Ave., is immediately south of TerraLane at Canyon Trails.
Phoenix-based Hancock Builders built the project and Mark-Taylor Residential manages the property. Monthly rental rates start at $1,399 for a one-bedroom unit and $1,820 for a two-bedroom unit.
Community amenities include a heated swimming pool and hot tub, fitness center, outdoor poolside sunning deck, ramada and flat-screen TV, barbecue grilling stations and an outdoor fire pit with seating.
Also recently completed was the 163-unit TerraLane at Park McDowell, which is nearing lease-up.
Phoenix is ground zero for build-to-rent communities, where single-story, detached homes are built in a community with resort-like amenities. So it's no surprise that Phoenix tops the nation in construction for these BTR communities, with more than 8,000 units under construction, according to a report released by Northmarq in January.
TerraLane has developed more than 1,100 rental homes across five communities in metro Phoenix and recently opened its first project in El Paso, Texas, called TerraLane at Campo del Sol.
When CEO Steve La Terra, a former real estate analyst, officially launched TerraLane Communities in 2021, after laying the ground work in 2019, he said he planned to build more than 1,100 upscale luxury single-family rental homes within two years.
La Terra now says he's not only expanding geographically, but also expands the company's product line to include townhomes and single-family homes for rent. His goal would be to develop master-planned communities with all these types of rental homes in one community with shared amenities, much like his build-to-rent communities.
Newport Beach, California-based IHP Capital Partners is majority owner of TerraLane Communities. IHP and Varde Partners own Northpointe at Vistancia and Five North at Vistancia commercial core.
La Terra said he would love to target Vistancia for his master-planned concept to feature all types of rental units in a community.
While he doesn't own any land for this concept in Arizona, he said he does have a couple of parcels under option in Texas.
"We're always looking for land," he said. "We want to expand our product to include other types of rental housing. It's a dedicated part of our growth strategy."
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