PHOENIX/SAN DIEGO — April 23, 2025 — San Diego-based Tower 16 Capital Partners in partnership with Raith Capital Partners has successfully acquired Sanctuary at South Mountain, a 166-unit horizontal Build-to-Rent (BTR) property located near South Mountain in Phoenix. . The property was built in 2023 and was acquired for $48 million, which we believe is below today’s replacement cost and prior-peak pricing. Tower 16 and Raith will be rebranding the property to “Obsidian at South Mountain.”
“This marks our 10th acquisition in the Phoenix market and our 13th acquisition in Arizona,” said Tower 16 Co-Founder Mike Farley. “We have been studying the supply-demand fundamentals in the Phoenix market closely and have witnessed incredibly strong demand over the past year. Phoenix is a high conviction market for us and it continues to attract new job opportunities from corporate investment, expansion and relocation from more expensive markets. New construction starts are decelerating and we believe the market is poised for strong rent growth over the next five years. We are continuing to pursue opportunities in Western growth markets where we can acquire high-quality real estate at a steep discount to replacement cost and prior-peak pricing.”
“We are excited to partner with Tower 16 on another acquisition in the Phoenix market,” said Raith Capital Partners Principal Sahil Amin. “There is a strong history between the founding partners of our firms, and we are excited to continue growing the partnership. With this purchase, we are taking advantage of the opportunity to acquire a high-quality asset in a fast-growing market at an attractive basis.”
Since its founding in 2017, Tower 16 has made similar moves in markets throughout the West, having acquired over 7,500 units in Southern California, Las Vegas, Phoenix, Tucson, Reno, Albuquerque and Denver. The company seeks markets that exhibit strong rental housing fundamentals including employment growth, in-migration and limited new supply in relation to household formation. According to company executives, Tower 16 is continuing to aggressively pursue other new construction assets in varying stages of completion/lease-up as well as value-add opportunities in the Southwest.
Sanctuary at South Mountain is located at the intersection of East Southern Avenue and South 40th Street with close proximity to South Mountain and the I-10 freeway, providing excellent access to Central Phoenix, Tempe and the East Valley. The property is a Class-A, Build-to-Rent, multifamily community with a mix of 1-, 2- and 3-bedroom apartments averaging 1,104 square feet. The property offers a variety of resort-style amenities including a sparkling swimming pool, a state-of-the-art fitness center, a pickleball court, walking trails and a large clubhouse. The low-density site plan features single-story and two-story cottage style units that each have their own private fenced in yards.
“The property has performed exceptionally well during lease-up. We credit the strong performance to the great unit mix featuring 80% two- and three-bedroom units and a relatively insulated pocket of Phoenix that has limited new supply. The property has a top-of-the-line amenity set with an excellent clubhouse and was extremely well designed by the developer. We are excited to acquire another BTR asset and believe the property is well positioned to serve the tenant demand in the area,” said Tower 16 Co-Founder Tyler Pruett.
Tower 16 will oversee asset management and construction management and bring in Cushman & Wakefield as a third-party property manager.
“We have been extremely focused on identifying unique lease-up and new-construction acquisition opportunities across the Southwest. We are excited to get another one done in Phoenix and continue growing our local portfolio,” said Tower 16 Director of Acquisitions Dave McClain. “We appreciate the Berkadia team and the seller team for providing us with this opportunity.”
Mark Forrester and Andrew Curtis of Berkadia represented the seller in this transaction. CBRE helped secure debt financing for the buyer, led by Maxi Leachman and Scott Peterson.
Berkadia announces it has secured a $31 million loan to refinance No.17 Residences Allapattah, a 192-unit attainable luxury apartment rental building in the Fruit Packing District of Allapattah. Senior Managing Director Charles Foschini, Managing Director Christopher Apone, and Associate Director Shannon Wilson of Berkadia South Florida secured the financing on behalf of Neology Life Development Group, a lifestyle-driven residential and commercial real estate firm, led by Lissette Calderon, that specializes in the transformation of overlooked and undervalued communities into vibrant urban neighborhoods.
Fannie Mae originated the 10-year loan with five years of interest-only.
"Lissette Calderon and her company, Neology, have once again demonstrated their exceptional vision and expertise in transforming the Allapattah neighborhood with the refinancing of No.17 Residences. It's been a remarkable journey working alongside Neology Life on this project. Lissette Calderon's dedication to 'attainable luxury' and the development's success in the heart of Allapattah truly stand out, aligning perfectly with the community's needs.”
Located at 1569 NW 17th Avenue, No.17 Residences Allapattah was completed in April 2021 and leased up in record time. It offers one-, two-, and three-bedroom apartments ranging from 600 square feet to 1,125 square feet. Individual units feature smart home technology, open floor plan kitchens, stainless steel appliances, quartz countertops, washer and dryer, full-length windows, balconies, and walk-in closets. Building amenities include an expansive urban park, lobby lounge with co-working and social spaces, a TV lounge area, art-inspired pool deck, pool side cabanas, indoor/outdoor clubroom, fitness center, on-demand virtual fitness classes, a rooftop garden with a summer kitchen, an outdoor movie theater, bark park, bike storage, electric car charging stations, a zoom room, on-site parking, and 24-hour secure package rooms.
The property is situated in Miami’s centrally located Allapattah neighborhood, which is just a short walk, bike ride, drive or public transit trip from some of Miami’s largest employment centers, including the Health District, Civic/Government Center, Downtown Miami, Wynwood< and the Brickell Financial district, and offers easy access to the Dolphin Expressway and I-95. As home to the flagship location of Superblue, the Rubell Museum and El Espacio, Allapattah has quickly become an important arts and culture destination.
Berkadia announces it has arranged the acquisition financing for Tavalo Tradition, a 216-townhome build-to-rent community located on one of the last developable parcels of land within the Tradition Master Planned Community in Port St. Lucie, Florida. Managing Director Scott Wadler and Senior Director Matt Nihan secured the loan on behalf of the buyer, a vehicle managed by GTIS Partners.
A national bank provided the forward acquisition loan, which will be funded in draws as the builder, K. Hovnanian, delivers units through mid-2024.
“This was the lender’s first build-to-rent (BTR) transaction in the U.S.,” said Wadler, “and Berkadia was successful in getting them to underwrite the unique acquisition structure and accommodate the borrower’s phased takedown closing schedule.”
Added Nihan, “This was a rare opportunity for our client to secure a differentiated BTR product in an infill site within the highly sought after Tradition Master Planned Community which, until now, has only offered traditional multifamily rentals and for sale homes. We expect the BTR market to continue to flourish throughout the state of Florida due as the cost of homeownership continues to rise.”
Located in the heart of the Tradition MPC in Port St. Lucie, Tavalo Tradition offers two- and three-bed townhomes ranging from 1,387 square feet to 1,494 square feet. Individual units feature quartz countertops, 42-inch kitchen cabinets, vinyl plank flooring, stainless steel appliances, washer and dryers, LED lightning and rear-load two-car garages. Community amenities include pickleball courts, a fitness center, a swimming pool, a dog park, over 500 acres of lakes, and 300 acres of parks.
Tradition MPC is a highly successful, 2,500-acre master-planned community that is now getting new industrial and retail tenancy, and a critical mass of residential density. It consists of 7,000 residences,1.3 million square feet of office space, 675 square feet of retail and 300 hotel keys. Tavalo Tradition is minutes away from The Landing at Tradition shops, Cleveland Clinic, Tradition Town Center, a public TMI shuttle, an integrated school system, an amphitheater, PGA Village and Golf club, parks, lakes and entertainment.
Berkadia announces it has arranged the sale of 1715 Douglas, an 0.87-acre development site in the heart of Downtown Coral Gables, within walking distance to Miracle Mile, six million square feet of office space and two million square feet of retail. Senior Managing Directors Roberto Pesant and Jaret Turkell, Director Yoav Yuhjtman, Associate Director Omar Morales and Associate Jose Mota of Berkadia South Florida marketed the property on behalf of the seller.
BAM Development acquired the development site, which is site plan approved for an 8-story, 120-unit Class A multifamily mid-rise development with 178 proposed parking spaces. Tomas Sulichin of ISG Related represented the buyer.
“1715 Douglas has a strategic location in the thriving South Florida market,” said Pesant. “Coral Gables is experiencing a wave of growth that has easy access to major hubs like Brickell and the Miami Health District. As demand for sophisticated living spaces grows, 1715 Douglas will set a new standard for sophistication in the heart of Coral Gables,”
1715 Douglas will feature one- and two-bedroom units averaging from 578 square feet to 1,024 square feet. The site is expected to complete and obtain master permitting within four months. Ideally located in the heart of Downtown Coral Gables, within walking distance to over 120 restaurants and Merrick Park, the property is less than 30 minutes away from the Miami International Airport, Doral, Wynwood, Coconut Grove and has convenient access to the Douglas Road Metro Rail Station, connecting Coral Gables to Brickell, Downtown Miami, Dadeland and offers an additional 16 million square feet of office space within a 20-minute commute.
Berkadia announces it has arranged financing for Atlantic Pacific Companies and LEM Capital to acquire Verona View Apartments, a 293-unit apartment community in Plantation, Florida.
Senior Managing Director Mitch Sinberg, Managing Directors Brad Williamson, Scott Wadler and Matthew Robbins and Vice President of Originations Abigail Beauchamp of Berkadia South Florida arranged the financing on behalf of the joint venture buyers, Miami-based Atlantic Pacific Companies, and LEM Capital, a real estate private equity firm based in Philadelphia, PA.
Freddie Mac provided the 10-year, floating-rate loan.
“Despite the volatility in the capital markets, capital is still lending on multifamily product in South Florida backed by strong sponsorship,” said Robbins. “We were able to secure a very strong floating-rate execution from Freddie Mac to maximize proceeds. South Florida remains one of the tightest rental markets in the country, and properties like Verona View, in close proximity to millions of square feet of corporate office space, are positioned to perform well.”
Built in 1989 and located at 10900 Northwest 17th Street, Verona View offers one-, two- and three-bedroom apartments ranging from 874 square feet to 1,666 square feet. Individual units feature open-floor concepts, stainless steel appliances, hardwood flooring and private patios. Community amenities include a swimming pool, sundeck, grilling area, fitness center, dog park and resident lounge.
Verona View is conveniently located off Sunrise Boulevard, just minutes from I-595, I-75 and the Florida Turnpike, less than 25 minutes from downtown Fort Lauderdale and Fort Lauderdale-Hollywood International Airport and surrounded by millions of square feet of prime office and retail space including several corporate headquarters and Sawgrass Mills Mall.
Berkadia announces it has arranged a $12 million refinance loan for The Forge Lofts, a 35-unit boutique building completed in 2022 in the heart of the FATVillage™, downtown Fort Lauderdale’s historic warehouse-turned-tech district. Managing Director Brad Williamson, Senior Managing Director Mitch Sinberg, Managing Directors Scott Wadler and Matt Robbins of Berkadia South Florida arranged the loan on behalf of the sponsor, Urban Street Development, a full-service development firm based in Fort Lauderdale.
Fannie Mae provided the seven-year, fixed-rate loan with full-term interest-only, through its Near-Stabilization Program and Green Building Certification Program.
“This asset is a unique rental loft unlike any other rental property, with high ceilings and an open layout, and excellent Opportunity Zone location,” said Williamson. “Berkadia was able to structure fixed-rate debt with full-term interest-only to mirror the sponsor’s business plan. The Forge Lofts are a great addition to this growing neighborhood.”
Located at 401 NW First Avenue, The Forge Lofts offers one- and two-bedroom units ranging from 775 square feet to 1,330 square feet. Individual units feature 10- to 13-foot ceilings, polished concrete floors, premium kitchen appliance packages with custom kitchen islands, smart home technology, and large balconies. Community amenities include controlled building and garage access, reserved parking, an electric car charging station, high speed Wi-Fi, a 24/7 fitness studio, a summer kitchen and a heated pool.
The Forge Lofts are within walking distance to the Brightline, The Broward Center for the Performing Arts, the Fort Lauderdale Museum of Art, and the Museum of Discovery and Science.
