#United States #Phoenix #Sumitomo Forestry #Crescent Communities #NOVEL Norterra

Development of NOVEL Norterra in Phoenix

In a significant move, Crescent Communities, LLC, a wholly-owned subsidiary of Sumitomo Forestry Co., Ltd, is set to develop a new rental apartment complex, named NOVEL Norterra, in Phoenix, Arizona. This development is a collaboration that includes NEC Capital Solutions America, Inc. and Mitsui Sumitomo Trust & Panasonic Finance Co., Ltd, marking the first instance of Crescent partnering with Japanese companies in Arizona. Construction of the complex is slated to commence in July 2026, with plans for leasing to begin in February 2028.

Key Features of the NOVEL Norterra Complex

The NOVEL Norterra complex will be built on a sprawling 8.5-acre site, totaling 21,804 square meters in floor area. It will consist of five residential buildings, each four stories high, alongside a clubhouse. Targeting young professionals—business individuals possessing advanced skills and expertise—this complex is designed with a focus on comfort and luxury.

As part of Crescent’s premium brand, NOVEL, the apartments will offer high-quality specifications and amenities. Featuring one-bedroom and two-bedroom layouts, each unit will include a balcony and air-conditioned common hallways. The shared facilities will boast a clubhouse, swimming pool, outdoor kitchen, pickleball court, and dog run, all designed to create a relaxing and vibrant community atmosphere.

Utilizing a wooden frame construction method with two-by-fours will allow for cost reductions compared to reinforced concrete structures. This method is known for its lower CO₂ emissions during construction and contributes to long-term carbon storage through wood’s natural properties.

Location Advantages

Strategically located in the rapidly growing North Phoenix area, the NOVEL Norterra complex is part of the Norterra Master Plan Community. It is conveniently situated within a 15-minute driving radius of major employment sites in industries such as semiconductor manufacturing, finance, and healthcare, which are abundant in the area. The property also enjoys excellent transportation links, being adjacent to I-17 and offering easy access to highways 101 and 303. The central Phoenix area is just a 25-minute drive away, while Phoenix Sky Harbor International Airport is a 30-minute drive, further enhancing its appeal to dual-income households.

With nearby supermarkets and open-air shopping facilities, the region provides a convenient lifestyle. The anticipated construction of a new semiconductor manufacturing facility will further bolster job growth and meet the increasing demand for housing in North Phoenix.

Partnership Structure

The development focus is spearheaded by Crescent Communities, along with the collaboration of NEC Capital Solutions America, Inc., a subsidiary of NEC Capital Solutions Co., Ltd., and Mitsui Sumitomo Trust & Panasonic Finance Co., Ltd., under a special purpose company (SPC). Sumitomo Forestry Asset Management Co., Ltd. plays a pivotal role by coordinating and managing the project oversight.

Future Directions

Sumitomo Forestry Group's approach revolves around diversified engagement with forests, from timber production to construction and real estate development, aiming to promote carbon storage through wood-based solutions. Their long-range vision, Mission TREEING 2030, targets increased CO₂ absorption from forests, along with a broader push toward decarbonization through wooden construction methods in global markets, particularly in the United States.

Project Overview (Planned)

• - Project Name: NOVEL Norterra
• - Location: Southeast corner of W Jomax Rd & N Norterra Pkwy, Phoenix, AZ 85085
• - Rental Floor Area: 21,788 m² (234,536 sq ft)
• - Number of Units: 248
• - Structure/Construction: Four-story wooden frame; clubhouse is one-story wooden construction
• - Expected Certifications: NGBS Bronze (Environmental Certification), Fitwel (Well-Being Certification)
• - Start of Construction: July 2026
• - Leasing Begins: February 2028

About Crescent Communities

Crescent Communities, headquartered in Charlotte, North Carolina, was established in 1939 as a division of Duke Energy and transitioned into the real estate development sector in 1990. It became a fully-owned subsidiary of Sumitomo Forestry in 2018. The company has grown to become a leading developer of multifamily and mixed-use properties across 17 cities in ten states.

About Sumitomo Forestry Asset Management Co., Ltd.

Established in November 2020 and headquartered in Tokyo, Japan, Sumitomo Forestry Asset Management is dedicated to managing investments associated with various funds formed by the Sumitomo Forestry Group. The firm aims to bolster investment advising and management services, promoting sustainable growth within the sector.