GTIS Partners Breaks Ground on a Single-family Rental Community in Phoenix Qualified Opportunity Zone

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Dec 04, 2020, 08:30 ET

NEW YORK, Dec. 4, 2020 /PRNewswire/ -- GTIS Partners LP ("GTIS"), a real asset investment and development firm based in New York, today announced the ground breaking of a single-family build-to-rent community at Cadence, a master-planned development in Mesa, AZ owned by GTIS and Harvard Investments. Cadence is one of the most successful master planned communities nationally with over 2,200 units, and the new phase will add 197 rental homes to the mix of for-sale housing and community retail developed over the past eight years. The project is located within Mesa's Qualified Opportunity Zone (QOZ) and is believed to be the first major QOZ investment in a single-family rental project since the program's inception in 2018.

Cadence, a master-planned development in Mesa, AZ

To date, GTIS has invested in 11 projects that are located in Qualified Opportunity Zones, with a combined equity commitment of over $400 million. The projects, predominantly located in fast growing Sunbelt markets such as Phoenix, Tampa and Charlotte, comprise over 5,300 residential units and 1.6 million square feet of commercial office and industrial distribution space.

The new phase is conceived as an innovative single family rental product known as build-to-rent ("BTR"), and represents GTIS's focus on ground-up development of entire rental communities. It is designed to offer the most attractive features of both single-family and multi-family living: single-story homes and private backyards within a fully-designed and gated community with on-site management and amenities. The project's 197 units will be a mix of 1-bedrooms (30%), 2-bedrooms (63%) and 3-bedrooms (7%), clustered around an amenity area with a pool, fitness center and community leasing office.

"We are pleased to continue our commitment to the Phoenix area through this additional Opportunity Zone investment," said Tom Shapiro, Founder and President of GTIS. "Opportunity Zones, with the economic benefits and job creation they bring to underserved communities, clearly align with GTIS values and exemplify the importance of ESG considerations in the firm's investment process."

The community is favorably situated within the larger Cadence master plan, adjacent to single-family for-sale neighborhoods and future retail development, providing walkability for its residents to commercial services and amenities. Cadence has been one of the most successful master plans in the country over the last few years, selling all of its 2,200 residential lots to national and regional homebuilders including Toll Brothers, Lennar, Pulte, Gehan and Maracay. Residents will have the option of participating in Cadence amenities such as two resort-style pools, parks, trails, tennis, basketball and bocce courts.

GTIS focuses on employing environmentally friendly approaches across all of its QOZ investments. In line with its commitment to environmental sustainability and the goals of the QOZ program, GTIS has committed to using Hercuwall, an innovative panelized construction system that eliminates costly and time-consuming steps, and radically raises energy efficiency. Hercuwall, made of foam and steel forms and poured concrete, delivers R31 insulation and is three times stronger than traditional wood studs, all while being light enough for one man to carry. The system eliminates waste that typically results from cutting lumber on site and provides better fire resistance, sound rating and overall building quality.

About GTIS Partners
GTIS Partners is a leading real asset investment and development firm headquartered in New York with offices in São Paulo, San Francisco, Los Angeles, Atlanta, Paris and Munich. The firm was founded in 2005 by Tom Shapiro and is managed by President Tom Shapiro and Senior Managing Directors Thomas Feldstein, Josh Pristaw, João Teixeira, Rob Vahradian and Amy Boyle. The firm manages over $4 billion in gross assets and is active across a wide range of real estate sectors including single family and multifamily housing, office, industrial/logistics and hospitality as well as renewable energy infrastructure and opportunity zone investments. The firm invests at various points in the capital structure including credit, common equity and structured equity. In the US, GTIS has invested in over 130 assets across 40 unique markets including growth areas such as Phoenix, Dallas, Houston, Denver, Atlanta, Tampa and Charlotte. In Brazil, GTIS is among the largest real assets private equity firms with holdings including office, residential, logistics, hospitality and renewable energy investments. Marquee assets in São Paulo include the Infinity office building and Palácio Tangará, a five-star resort style hotel.