Sumitomo Forestry to Develop 248-Unit Wood-Frame Rental Community in Phoenix, Arizona
Sumitomo Forestry announced on August 5, 2026, that its wholly owned subsidiary Crescent Communities, LLC will develop NOVEL Norterra, a multifamily rental community in Phoenix, Arizona. NEC Capital Solutions' U.S. subsidiary and Sumitomo Mitsui Trust Panasonic Finance Co., Ltd. are among the participants. Construction began in July 2026, and leasing is scheduled to begin in phases from February 2028.
On a site of approximately 10,405 tsubo (approx. 370,200 sq. ft.), the project will comprise five four-story wood-frame residential buildings and a single-story clubhouse serving as a shared amenity facility. It will have 248 units in total, with 1-bedroom and 2-bedroom layouts. The residential buildings will use 2x4 wood-frame construction, aiming to reduce costs and lower CO2 emissions during construction.
The project site is located within the Norterra master-planned community in the northern part of the Phoenix metropolitan area. It is within a 15-minute drive of employment hubs in the finance and healthcare sectors as well as a major semiconductor manufacturer's fabrication plant, with retail facilities also located nearby. Against the backdrop of job growth driven by new semiconductor plants and other developments, the project primarily targets young, highly skilled professionals.
The development entity is a special purpose company jointly funded by Crescent Communities and the participating companies, with Sumitomo Forestry Asset Management coordinating and managing the project. This marks the first time Crescent Communities has collaborated with a Japanese company in Arizona. The Sumitomo Forestry Group is developing the Phoenix metropolitan area as a priority development region, given its favorable employment environment and resilient housing demand.
Key Facts
- Property Name: NOVEL Norterra
- Development Entity: A special purpose company jointly funded by Crescent Communities, LLC, NEC Capital Solutions America, Inc., Sumitomo Mitsui Trust Panasonic Finance Co., Ltd., and others
- Project Coordination: Sumitomo Forestry Asset Management Co., Ltd.
- Location: Southeast corner of W Jomax Rd & N Norterra Pkwy, Phoenix, AZ 85085
- Construction Start: July 2026
- Leasing Start: February 2028 (planned)
- Scale: 5 residential buildings (4-story, wood-frame) / 1 clubhouse (single-story, wood-frame)
- Area: Site area of approximately 10,405 tsubo (approx. 370,200 sq. ft.) / Leasable Floor Area of approximately 6,591 tsubo (approx. 234,500 sq. ft.)
- Total Units: 248
- Unit Layouts: 1-Bedroom / 2-Bedroom
- Shared Facilities: Clubhouse / Pool / Outdoor Kitchen / Pickleball Court / Dog Run
- Planned Certifications: NGBS Bronze / Fitwel
