Scottsdale-based Matrix Equities paid $5.68 million for a 37-acre parcel east of the southeast corner of Watson Road and Papago Freeway within the Sundance master-planned community in Buckeye, according to Vizzda LLC, a Tempe-based real estate database. An entity tracing to Thomas Rietz sold the residential zoned parcel for $153,752.37 per acre.

Howard Weinstein and Patty Lafferty of The Land Agency represented the sellers in the deal. Matrix officials could not be reached for comment.

“We believe this will be the first community of its kind south of Interstate 10 in Buckeye,” Weinstein said.

The Land Agency also brokered a 38-acre parcel nearby at the southwest corner of Yuma and Apache roads in Buckeye for $2.38 million.

“There has been an increase in residential and industrial activity in the immediate area,” Lafferty said, adding that current zoning could accommodate additional build-to-rent projects there as well.

Phoenix is ground zero for the build-to-rent concept — a hybrid that features detached single-family rental homes in a multifamily setting, complete with community pools, clubhouses and other amenities. This concept has been made popular by Phoenix-based NexMetro Communities and Mesa-based Christopher Todd Communities, which partnered with Scottsdale-based Taylor Morrison Home Corp. in 2019 to build this hybrid product across the country.

The build-to-rent space is undoubtedly the fastest growing segment of the real estate market, said Jim Belfiore, founder of Phoenix-based Belfiore Real Estate Consulting.

“The product, an alternative to traditional apartment living, appeals to the largest demographic, and thus has captured the interest of homebuilders and investment groups alike,” Belfiore said.

Matrix joins a plethora of projects already in development across the Valley, which has 22 projects representing more than 3,800 units currently under construction, said Thomas Brophy, national director of research and analytics for Colliers International. Those units under construction add to 3,750 existing units and another 4,700 in various planning stages.

“From a developer/investor prospective, these projects not only performed well pre-Covid, but have performed amazingly well in the post-Covid world with current rents averaging close to $1,650 a month,” Brophy said.

Those rental rates are up 23% since the first quarter of 2018 and nearly $370 above the Phoenix market average of $1,284 as of year end 2020, Brophy said.

Most of these build-to-rent projects stabilize in the 96% plus occupancy range, which is about 40 basis points above current market averages.

“As multifamily has matured as an asset class and in response to the increasing median age of homebuyers — 47 as of 2019-2020 — the build-for rent or horizontal development fulfills a much-needed niche in the market for older renters and particularly those with families,” Brophy said.

Renters enjoy the benefits of less dense living with varying degrees of backyards and community amenities, he said.

“Given the robust response from renters regarding this emerging market segment, and even after accounting for projects under construction, build-to-rent will represent less than 3% of total inventory,” he said. “As such, this segment should continue to evolve and remain in high demand in both the near to medium terms.”