Värde Partners Closes $65.5 Million Refinancing for Empire Group's Phoenix Build-to-Rent Community
PHOENIX — Värde Partners has closed a $65.5 million floating-rate loan to refinance Village at Sonoran Vista, a newly completed 240-unit build-to-rent community in Phoenix's Deer Valley submarket, the Minneapolis-based investment firm announced Sept. 30. WAY Capital arranged the financing for borrower Empire Group, a Scottsdale-based developer, to support the property's lease-up following its January 2026 completion.
The loan carries a three-year initial term with two one-year extension options. At 240 homes, the financing equates to approximately $272,917 per unit.
Property and Location Details
Village at Sonoran Vista sits at 30825 N. North Valley Parkway in north Phoenix, occupying approximately 34 acres within the Deer Valley submarket. The community consists of 240 single-story detached rental homes ranging from approximately 680 to 1,282 square feet, with one to three bedrooms and one to two bathrooms. Each home includes a private garage or carport. Community amenities include a resident clubhouse, swimming pool, fitness center, car wash and dog park.
The property is located within roughly three miles of Taiwan Semiconductor Manufacturing Co.'s Arizona semiconductor campus, a proximity that figures centrally in the project's demand thesis. TSMC announced an additional $100 billion of planned Arizona investment in 2026, bringing its total planned Valley investment to approximately $165 billion in additional spending. The broader buildout is expected to generate thousands of direct and indirect jobs and increase demand for housing in north Phoenix.
What the Parties Said
"This was a compelling opportunity to support the Empire Group, a leader in build-to-rent, with reliable capital through the lease-up and stabilization of Village at Sonoran Vista," said Jon Miller, Managing Director at Värde Partners. "With TSMC's investment anchoring a broader set of housing demand drivers in North Phoenix, this new community offers residents an attractive option for single-family living without the cost of ownership."
Randy Grudzinski, Partner at the Empire Group, pointed to mortgage-rate conditions as a tailwind for the rental product. "We are thrilled to team up with Värde Partners on our Village at Sonoran Vista community. With 30-year mortgage rates nearing 7%, many would-be homebuyers are finding luxury, highly-amenitized build-to-rent communities like Sonoran Vista to be a superior, more flexible option for getting into a new home," Grudzinski said. "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."
Phoenix Build-to-Rent Market Context
The financing arrives as Phoenix's build-to-rent sector moves through a period of moderating supply. Greater Phoenix delivered fewer than 1,400 build-to-rent units through the second quarter of 2026, a decline of more than 50% compared with the same period in 2025. The slowdown is expected to ease leasing competition for recently completed communities.
Market conditions remain mixed. Greater Phoenix build-to-rent vacancy declined 100 basis points over the six months through the second quarter of 2026 to 8.8%, though it was only 10 basis points lower year over year. Average asking rent stood at approximately $1,969 per month, up 0.2% from the first quarter but down 1.7% year over year. The combination of improving vacancy and negative annual rent growth indicates that lease-up conditions are stabilizing even as operators continue to face pricing pressure.
Village at Sonoran Vista competes in a submarket that includes Sonoran Row, another north Phoenix rental community offering 259 townhouse units with floor plans ranging from 1,264 to 1,861 square feet. Sonoran Vista's smaller, detached-home format and private parking position it across a broader renter segment than some nearby townhouse offerings.
The three-year initial loan term, with two extension options, provides Empire Group additional runway to lease the community and establish operating performance before a potential sale, permanent loan or recapitalization.
About the Firms
Empire Group, headquartered in Scottsdale, Arizona, has a 50-year history as a commercial developer in the Southwest. The firm has more than 5,000 build-to-rent units in various stages of pre-development, development, lease-up and completion. Through its division Aspirant Development, Empire also develops luxury, urban infill, Class A mixed-use projects in the greater Phoenix metro area.
Värde Partners, founded in 1993, specializes in credit and credit-related assets and currently manages $15 billion in assets. The firm has originated $9 billion in U.S. commercial real estate loans since 2017 and invests across asset-based finance, real estate, corporate credit and Asia credit through local investment teams and partnerships in North America, Europe and Asia Pacific.