Commercial Real Estate Investment Firm Has Acquired More Than 2,300 Units in the Last 18 Months

San Diego-based Tower 16 Capital Partners, in a joint venture with Henley Investments, has acquired Five89 Apartments, a 312-unit multifamily project in Las Vegas for $32.5 million. The property was acquired on an off-market basis from a private seller. 

“Five89 Apartments fits very well with our investment strategy of purchasing assets below replacement cost in emerging locations with strong demand drivers,” said Tower 16 Principal Tyler Pruett. 

This is the firm’s seventh acquisition in the last 18 months having acquired over 2,300 units in that timeframe and its fifth purchase in the Las Vegas market.

“We are still very bullish on the Las Vegas market given the strong job and population growth, limited new supply and overall occupancy projections for workforce housing,” said Mike Farley, principal.

Five89 Apartments is located at 4801 E. Sahara Avenue, within five miles of the Las Vegas Strip. The community consists mostly of two- and three-bedroom apartments with covered parking and private balconies or patios, two swimming pools, a fitness center, a playground and a leasing office.

Tower 16 will be overseeing $4 million in renovations and upgrades to the project including new outdoor amenities, an upgraded leasing office and interior renovations. 

Pinnacle, a national multifamily real estate management firm, will take over as property manager.

Commercial Real Estate Investment Firm Plans More Acquisitions in the Region This Year and Beyond    

Tower 16 Capital Partners, in a joint venture with Henley USA, has acquired Hillside Village Apartments, an 80-unit multifamily project in San Bernardino, for $11 million from a private seller. This is the first of many acquisitions the company plans to make in the Inland Empire over the next 12 to 24 months.

“While this acquisition is small for us, it fits with our criteria of purchasing assets with significant operational upside and require capital improvements,” said Tower 16 Principal Mike Farley. “Our plan is to replicate our growth in the Las Vegas market, where we now have 1,600 units, as we assemble a portfolio of multifamily properties with considerable upside.”

Hillside Village is located at 2196 Kendall Drive in San Bernardino, within one mile of California State University, San Bernardino, a strong submarket with median incomes of $57,000. The apartment complex is near parks, freeways, Loma Linda University and Victoria Gardens open-air shopping destination.

Hillside Village features one- and two-bedroom apartments with covered parking and private balconies or patios, a pool, spa, fitness center and laundry facilities. 

“We are excited about the Hillside Village acquisition as part of a larger acquisition strategy in the Inland Empire,” says Tower 16 Principal Tyler Pruett. “There is a huge need for affordable housing options as the Inland Empire continues to attract new people to the region from more expensive coastal markets.”

Demand for apartments in the Inland Empire soared to a level not seen in 16 years at the end of 2018, according to the Riverside Press-Enterprise, with vacancy rates of 3.4 percent. The average monthly rent in the region is $1,504 per month, a 5.5 percent increase over the year before, and rents exceeded $1,700 in several western San Bernardino County cities.

Real estate brokers Warren Berzack and Slavic Zlatkin of Lee & Associates represented both the buyer and seller in the transaction.