How does Phoenix multifamily debt pricing compare to other Sun Belt metros?

Phoenix pricing is typically among the tightest in the Sun Belt for comparable product, reflecting deep lender appetite and strong sponsor depth. Senior pricing today runs SOFR + 300–425, mezz 12–15%, pref 11–13%. Differential to Dallas or Atlanta is generally 0–25 bps.

Are bank construction loans returning for Phoenix multifamily?

Selectively. Arizona regional banks remain measured. National banks (Wells Fargo, JPM, Bank of America) have been more consistent for larger sponsor relationships at 60–65% LTC. Debt funds dominate the 65–75% LTC senior tier and most non-recourse structures.

Phoenix multifamily construction financing

Phoenix, AZ · Up to 85% LTC

Multifamily Construction in Phoenix, AZ

Phoenix multifamily starts have moderated from 2022 highs but the metro remains one of the deepest construction lending markets in the U.S. Active areas include the urban core, the Camelback corridor, downtown Tempe, the Chandler / Gilbert tech corridor, and West Valley pockets near employment growth. We arrange senior construction debt and full capital stacks to 85% capitalized basis.

Phoenix Developer Market

Phoenix has been one of the top five U.S. metros for single-family permitting every year since 2020. The West Valley (Buckeye, Goodyear, Surprise) is now absorbing the majority of new production volume, with national homebuilders dominating land takedown and BTR sponsors competing aggressively for entitled lots.

Luxury spec in Paradise Valley, North Scottsdale, and Arcadia has remained durable through every interest-rate cycle since 2020. Capital depth in those submarkets is exceptional, with multiple private lenders competing for sponsor relationships.

Permit Trends

Maricopa County is permitting at near-record levels, with Buckeye alone projected to triple in population by 2040. Queen Creek and San Tan Valley continue to absorb the eastern overflow. BTR communities have been particularly aggressive in Maricopa, Casa Grande, and far-west Buckeye.

Capital Climate

Arizona regional banks pulled back hard in 2023; private credit and family-office capital filled the gap and remain dominant. Spec, BTR, multifamily, and land all have deep lender markets. Pricing for repeat sponsors is among the most competitive in the country.

Phoenix Submarkets We Place In

Scottsdale Chandler Gilbert Mesa Queen Creek Buckeye Surprise Goodyear Peoria Maricopa

Multifamily Construction Program Terms

First-Lien Loan-to-Cost

Up to 75% (debt only)

Combined Loan-to-Cost

Up to 85% with mezz / pref equity

Loan Size

$5M – $150M first-lien

Term

24 – 42 months, interest-only

Recourse

Recourse, partial recourse, and non-recourse

Min DSCR (stabilized)

1.20x – 1.30x

Full Multifamily Construction Program Details

Representative Phoenix Deal

Senior + mezz + pref

$58M senior + $11M mezz + $9M pref

286-unit podium multifamily in Tempe. Layered stack to 82% capitalized basis. Close in 10 weeks.

Frequently Asked Questions

Questions builders and developers ask about multifamily construction loans in Phoenix.

Urban core, the Camelback corridor, downtown Tempe, and the Chandler / Gilbert tech corridor draw the most lender interest given employment density. West Valley deals near identifiable employment (West Valley logistics, Loop 303) remain active. Far-suburban deals in northern Buckeye face tighter underwriting.