Saddleback Village | Case Study

The Situation

In 2024, Dominium launched Saddleback Village at Stonegate, a forward-looking affordable housing development in Maricopa, Arizona, part of the Phoenix MSA. The project introduces a build-for-rent (BFR) model to the affordable space, offering 215 two-, three-, and four-bedroom detached homes across 123 buildings, all rent- and income-restricted to households earning no more than 60 percent of AMI. This new product type was years in development and reflects Dominium’s commitment to innovation, livability, and long-term affordability.

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The project faced multiple layers of complexity. Dominium required both LIHTC equity and permanent debt financing to make the project feasible, necessitating close alignment across capital partners. The location, while growing rapidly, is within a submarket grappling with high multifamily vacancy following a wave of new market-rate deliveries. Additionally, the new BFR model represented a departure from conventional affordable multifamily typologies, requiring careful structuring to meet compliance and investor expectations.

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The project also needed to qualify for a property tax exemption to ensure long-term financial stability—a critical factor in a rising interest rate environment and tightening capital markets.

The Solution

Walker & Dunlop’s Affordable Housing platform provided a fully integrated capital solution to meet these challenges. Through W&D Affordable Equity, Walker & Dunlop syndicated $42.2 million in 4 percent LIHTC equity, placed into a proprietary fund structure. Simultaneously, Walker & Dunlop’s Affordable Debt team arranged a $45.8 million Freddie Mac TEL unfunded forward commitment to provide long-term, fixed-rate financing at conversion.

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The project qualified for full and permanent property tax abatement under Arizona Revised Statute 42-11133, thanks to its nonprofit general partner, Langston Hughes Affordable Housing, Inc. The construction loan was provided by Western Alliance Bank, and delivery will be phased from 2026 through early 2027.

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The collaboration between Walker & Dunlop’s equity and debt teams enabled seamless underwriting, efficient documentation, and closing certainty, delivering a complex capital stack through a single, coordinated platform.

The Result

Saddleback Village at Stonegate will bring 215 affordable homes to one of the nation’s fastest-growing housing markets, helping address the supply gap for large, family-oriented rental housing. Each unit will maintain rent and income restrictions at 60 percent of AMI, and the project is expected to maintain a 29 percent affordability gap to market-rate rents, supporting long-term occupancy and financial performance.

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The build-for-rent layout offers residents a single-family living experience at affordable rents, positioning the property as a high-demand alternative to traditional apartment-style communities. The permanent financing takeout is scheduled for November 2027, supporting long-term asset stability for Dominium and its investors.

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This transaction underscores Walker & Dunlop’s differentiated platform, which brings together tax credit syndication and specialized debt financing to help leading developers execute complex, high-impact affordable housing projects.