$300M recapitalization secured for Nexmetro Communities Portfolio

PHOENIX, Jan. 15, 2025 – JLL Capital Markets announced today that it has secured capital for Nexmetro Communities for a Build-to-Rent Portfolio across Phoenix, Arizona and Denver, Colorado.

JLL represented the sponsor, NexMetro Communities on recapitalizing the portfolio which was valued at approximately $300 million. The financing structure includes $160 million in insurance capital invested and managed by Blackstone, plus a preferred equity investment from Artemis Real Estate Partners.

The four assets included in the portfolio are Avilla Gateway, Avilla Magnolia, Avilla Eastlake and Avilla Canyon. These communities are strategically located in high-growth submarkets of Phoenix and Denver, offering residents a unique blend of single-family home living with the flexibility of a rental.

Completed between 2021 and 2023, these Class-A built-to-rent communities feature detached, single-story homes with private backyards, high-end finishes and resort-style community amenities. The average unit size across the portfolio is 959 square feet.

NexMetro Communities, a pioneer in the BTR sector, has developed over 9,400 homes across nearly 60 projects nationwide. This recapitalization allows NexMetro to continue its rapid growth and strategic expansion in key Sunbelt markets.

“NexMetro is creating a platform for growth for our best-in-class BTR portfolio while realizing the synergies from joint venture and partnership portfolio management,” said NexMetro CEO Josh Hartmann.“BTR benefits from favorable market fundamentals that lead to superior revenue growth and this recap allows for the upside of executing longer-term business partnerships.”

JLL Capital Market’s Advisory team was led by President of Capital Markets Kevin MacKenzie, Senior Managing Directors Brad Miner and Michael Joseph and Managing Directors Matthew Putterman and Chris Shea.

"This transaction underscores the strong investor appetite for high-quality BTR assets in growth markets," said MacKenzie. "NexMetro's innovative approach to rental housing continues to attract both residents and institutional capital, reflecting the evolving preferences in today's housing market."

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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NexMetro Communities is a pioneering real estate developer that has identified and filled a unique niche in the housing market by offering luxury leased home neighborhoods. The company's Avilla Homes neighborhoods combine the privacy and comfort of single-family living with the flexibility and convenience of professional management, catering to consumers seeking an alternative to traditional homeownership or apartment living. With a focus on innovation, quality and enhancing residents' lifestyles, NexMetro is reshaping the rental housing landscape across growing Sunbelt markets. More information at Nexmetro.com.

Artemis Real Estate Partners is an investment manager headquartered in metropolitan Washington D.C. with additional offices in New York City, Los Angeles and Atlanta. Artemis has raised approximately $11 billion of capital across core, core-plus and value-add/opportunistic strategies. The firm makes equity and debt investments across property types and markets in the U.S., specializing in joint venture partnerships and direct investments.