Joint Real Estate Venture To Develop Rental Community In Phoenix

Press release from Toll Brothers Apartment Living:

April 8, 2021

Toll Brothers, Inc. (NYSE: TOL) (TollBrothers.com), the nation’s leading builder of luxury homes, through its Toll Brothers Apartment Living® rental subsidiary, and real estate investment firm The Davis Companies, have announced the formation of a new joint venture to develop Callia, a 403-unit multifamily rental community in Phoenix, AZ. The project is being financed through a $66 million construction loan facility from Pinnacle Financial Partners, as administrative agent, and Trustmark. The debt and equity were arranged by Toll Brothers’ in-house Finance Department. Toll Brothers Apartment Living will manage the development, marketing, and asset management of Callia.

Callia is located on an 8.2-acre site at Central Avenue and Indian School Road in the vibrant Midtown neighborhood of Phoenix. It is within walking distance of the Valley Metro light-rail stop, which offers convenient access to Downtown, Uptown, Central Phoenix and Tempe. It is also within walking distance of a variety of high-end restaurants, grocers, retail stores, and office space.

According to the Arizona Technology Council, “With more than 66,450 tech employees in its boundaries, Phoenix has become a tech hub. Central Avenue in Phoenix has one of the highest concentrations of tech jobs in the region, thanks to the fact that many tech employees prefer a work setting with established nearby neighborhoods and significant amenities.” Phoenix is home to numerous financial services, health care, startup, and technology companies. Fortune 500 and other major employers in the market include Amazon, American Express, Avnet, FedEx, Freeport-McMoRan, GM, Honeywell, Insight Enterprises, Intel, PetSmart, OpenDoor, Republic Services, Wells Fargo, and ZipRecruiter.

Callia will be a 4-story, surface-parked, 403-unit multifamily rental community consisting of market-rate studio, one-, two-, and three-bedroom luxury rental apartments, including 9 live-work units. Callia will include tuck-under garages and luxury amenities, including two resort-style pools with cabanas and spas, an entertainment pavilion, a 4th floor Sun Lounge with fireplace, gaming room, state-of-the-art fitness center, a yoga studio, cycling studio, off-leash dog area and pet spa, bike storage and on-site retail for Bodega/Coffee.

Charles Elliott, President of Toll Brothers Apartment Living, stated: “We’re thrilled to expand our Toll Brothers Apartment Living presence in Phoenix and surrounding areas in Arizona. The market has seen significant employer growth bringing in transformative developments to the area. Callia will mark our third multifamily community, joining Haverly, and Canvas - a Toll Brothers Campus Living community, which is adjacent to Arizona State University.”

Fred Cooper, Toll Brothers’ Senior Vice President, Finance and Investor Relations, stated: “We are excited to be undertaking our sixth community with The Davis Companies, which has joined us on new projects in a variety of markets across the U.S. We also thank Pinnacle and Trustmark for their support in bringing Callia to reality. This will be another great addition to the portfolio of TBAL communities being developed in Arizona and a strong complement to the wide array of Toll Brothers’ for-sale home communities in the state.”

“Toll Brothers Apartment Living has been a fantastic partner for our firm,” stated Gary Hofstetter, SVP, Asset Management for The Davis Companies. “We look forward to continuing our work with them as we enter the fast-growing Phoenix market with this well-located, highly amenitized, luxury community.”

Please visit TollBrothersApartmentLiving.com for future updates and information regarding the community.

This press release was produced by Toll Brothers Apartment Living. The views expressed here are the author's own.