NexMetro Communities: Building a $1 Billion Vision for Arizona’s Thriving Rental Market
Phoenix-based NexMetro Communities has taken the build-to-rent (BTR) market to new heights, offering Arizona’s renters a compelling choice beyond traditional apartments and single-family homes. With $1 billion in projects underway across several markets, NexMetro is spearheading the BTR trend with its Avilla-branded communities, each designed to blend privacy, luxury, and convenience for its residents.
Expanding Across Arizona and Beyond
NexMetro Communities is transforming residential real estate across the country with its BTR projects. To date, NexMetro has launched 59 projects encompassing over 10,000 homes in various stages of completion and development. The company’s total investment has reached over $2.6 billion, a testament to its pioneering role in this fast-growing sector, says Jared Geisler, managing director of NexMetro’s Phoenix division. The metro Phoenix area alone has seen more than 4,100 of these homes completed or in the construction phase, demonstrating NexMetro’s strong commitment to the Arizona market.
Newest Addition: Avilla Palomino in Glendale
NexMetro’s latest BTR development, Avilla Palomino in Glendale, is set to offer 197 upscale rental homes. Situated on 18 acres at 51st Avenue and Peoria, Avilla Palomino brings a unique history to life—this location once hosted a horse racetrack and was previously a dairy farm. General contractor Mosaic started work in August 2023, with BSB Design shaping the community’s architecture. Residents can expect to move in by mid-2025.
Ranging from $1,575 to $2,375 per month, the units in Avilla Palomino feature high-end finishes, including 10-foot ceilings, granite countertops, stainless steel appliances, and hard-surface flooring. These prices reflect base rates, though special offers and promotions may be available during the lease-up phase, Geisler noted.
Growing Portfolio and Expanding Footprint
Following Avilla Palomino, NexMetro recently opened leasing for Avilla Mystic, a 254-home community at El Mirage and Westland Roads in north Peoria. With occupancy currently at 25%, this $63 million project is already attracting significant interest. The Avilla Broadway in Phoenix, which started leasing in May, is nearly 75% leased with 117 units near 99th Avenue and Broadway.
In addition to these projects, four other BTR communities are under construction across metro Phoenix, with locations near Loop 101 and Indian School Road, Buckeye, Surprise, and San Tan Valley. Each development is carefully positioned to capture demand across a diverse array of submarkets and is expected to open over the next few years.
NexMetro’s ambitions extend beyond Arizona, with plans to expand its BTR model in Colorado, Texas, Georgia, and Florida, tapping into a growing market of renters seeking more privacy and space than traditional apartment complexes offer.
Meeting the Needs of Today’s Renters: Privacy, Security, and Flexibility
NexMetro’s BTR properties cater to the modern renter, with a focus on privacy, security, and in-home amenities. Unlike the often transient feel of traditional apartments, each Avilla community offers detached or semi-detached units with private entrances, creating a sense of home for each resident. Additionally, each community features resort-style pools, communal gathering areas, dog parks, and electric vehicle charging stations.
“We find our best ideas are coming from our residents,” Geisler emphasized, adding that the company’s latest floor plans evolved directly from customer feedback. Residents prioritize storage space, privacy, and well-designed interiors over traditional amenities like clubhouses or fitness centers. NexMetro has responded by enhancing storage options in one-bedroom units with expansive cabinetry, closet areas, and full laundry rooms.
The Build-to-Rent Market Booms Amid Strong Demand
The demand for NexMetro’s Avilla communities is strong, driven by a hot rental market in metro Phoenix. According to Northmarq’s recent “Single-Family Build-to-Rent Properties” report, the build-to-rent sector has seen unprecedented growth, with vacancy rates tightening and rents spiking. Northmarq’s report indicates that from 2022 through 2023, developers delivered an annual average of over 2,000 new BTR units, with more than 7,200 units coming online since the start of 2023 and nearly 6,000 still under construction.
Popular areas for new developments include east Mesa, South Mountain, Goodyear, and Peoria, which have all seen significant BTR growth. NexMetro’s communities align with these trends, meeting the strong local demand for high-quality rental options in these areas.
Streamlined Investment for Repeat Investors
While each Avilla project has traditionally been funded by different investor groups, NexMetro has launched a direct access fund that offers investors a diversified portfolio option, allowing them to invest in multiple projects across states. This approach simplifies tax documentation and streamlines the investment process. For NexMetro, the direct access fund provides greater flexibility in securing land and closing escrow on projects, a critical advantage in a competitive market.
NexMetro’s investors, many of whom are repeat participants, appreciate this model as it allows them to diversify with ease and benefit from a stable, high-demand rental market. By investing across various projects and locations, they reduce risk and capitalize on NexMetro’s growing footprint in some of the nation’s most desirable rental markets.
What’s Next for NexMetro?
As the demand for BTR communities shows no signs of slowing, NexMetro continues to refine its offerings to meet the evolving needs of renters seeking high-quality, private rental spaces. With upcoming projects slated to open soon, and existing communities attracting strong interest, NexMetro is well-positioned to lead the BTR trend well into the future, shaping how Phoenix residents—and renters nationwide—experience community living.
