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Capital Square and Sunstone Two Tree Begin Construction on Single-Family Build-For-Rent Community Near Phoenix

December 6, 2023
Glendale BFR

PHOENIX (Dec. 6, 2023) – Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer and manager of housing communities, and Sunstone Two Tree, a developer and operator of rental housing communities in high-growth markets throughout the United States, today announced that they have broken ground on a new build-for-rent community in Glendale, Arizona. The 29-acre lot in the Phoenix suburb will become Ironwood Homes at Rosefield and feature 320 single-family rental homes and plenty of amenities. The new build-for-rent community promises to combine many of the benefits of single-family living – larger units, dedicated parking and private yards – with the advantages and convenience of renting. The property is projected to open later summer 2025.

“Capital Square is pleased to break ground on the development of a single-family rental community in Glendale,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “This Southwestern market is a job engine with record-setting rent growth in recent years and a shortage of single-family homes.”

Development of the project is being primarily funded with proceeds from Capital Square Glendale BFR, LLC, a project-specific limited liability company that is currently raising approximately $49 million in equity from accredited investors.

The partnership closed on the lot at the southeast corner of Northern Parkway and N. Sarival Avenue in September 2023. The 320-unit community will include 102 detached single-family homes, averaging 1,655 square feet, and 218 townhomes averaging 1,257 square feet. Each home will be well-designed, with two stories, direct garage access and a private yard. The community will boast amenities including a pool, spa, fitness center, parks, BBQs, gated entry and sports courts. The lot is conveniently located, with easy access to downtown Phoenix, Sky Harbor Airport, freeways, shopping centers, schools and employers. It is also in close proximity to the dining, retail and entertainment options at The Village at Prasada, a recently opened outdoor shopping center, and Desert Diamond Casino which is currently under construction.

“Given today’s challenging capital markets environment, we are especially pleased to close on this well-located property and begin construction within such a short amount of time,” said Scott Maddux, president of Sunstone Two Tree. “High interest rates are making it one of the worst times for consumers to buy a home, so we believe our unique rental product will provide an attractive value proposition to future tenants. With a proven track record in real estate ventures, Capital Square is an important partner of ours and we are pleased to collaborate with them to bring this much needed, best-in-class rental housing to Phoenix.”

“Greater Phoenix, the tenth largest metropolitan area in the nation, has experienced a shortage of high-quality single-family rental options due to significant population growth that has far exceeded the pace of housing development in recent years,” said Whitson Huffman, co-chief executive officer. “Glendale BFR provides investors an attractive opportunity to expand their portfolio into a high-growth Southwest market with an experienced team of developers, while also working to alleviate the single-family rental housing shortage.”

Since its formation in 2012, Capital Square has raised more than $3 billion in equity from investors for its tax-advantaged real estate investment offerings. The company has consistently ranked as one of the leading sponsors of Delaware statutory trust (DST) investment programs for investors seeking the advantages of Internal Revenue Code Section 1031 exchanges and is also an active sponsor of qualified opportunity zone funds, development LLC’s and Capital Square Apartment REIT, a real estate investment trust that invests in multifamily communities throughout the Southeast.

Sunstone Two Tree has nine build-for-rent communities in various stages of development in Arizona, totaling 1,500 units. The developments are a key part of the company’s commitment to create high-quality, attainable living spaces to address the critical shortage of entry-level homes. In addition to its work in Phoenix, Sunstone Two Tree has acquired or developed thousands of rental units across the country.

About Capital Square

Capital Square is a vertically integrated national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years the company has become an active developer of mixed-use multifamily properties in the southeastern U.S., with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $590 million. Since 2012, Capital Square has completed more than $7.8 billion in transaction volume. Capital Square’s related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management and disposition, for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for seven consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense’s list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” report in 2019 and their “Fantastic 50” reports in 2019 and 2020. In 2023, Capital Square was recognized by the Richmond Times-Dispatch as one of the region’s “Top Work Places.” To learn more, visit

About Sunstone Two Tree

Sunstone Two Tree is a vertically integrated real estate operator and developer focused on rental housing in high growth markets throughout the United States. Sunstone Two Tree was formed in 2023 as a result of the merger between Sunstone Properties Trust, an owner, operator and fund manager founded in 2012 with deep expertise and a successful track record in multifamily investments, and Two Tree Capital, an acquirer and developer of multi-family build-for-rent (BFR) communities.

Sunstone Two Tree acquires, renovates and manages existing multifamily assets while developing dedicated single-family rental communities. Sunstone Two Tree is based in Westlake Village, CA is driven by a two-fold mission: 1) to protect investor capital and deliver compelling returns through every phase of the economic cycle and 2) to create and operate safe, clean, and well-maintained rental communities for individuals and families.

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