A partnership between Arch Companies and Drake Real Estate Partners (“Drake”) has acquired a three-property portfolio of garden-style multifamily properties in Tuscaloosa, Alabama totaling 649 units. As the Southeast market continues to appreciate, this is the third acquisition of a garden-style portfolio by the Arch-Drake partnership in under five months. This purchase follows an acquisition of 672 garden-style units in Columbia, South Carolina and 486 garden-style units in Birmingham, Alabama earlier in this year which brings the Arch-Drake partnership to approximately 2,000 units. The acquisition was financed by Walker & Dunlop Commercial Property Funding and arranged by Josh Jacobs, First Vice President, Investments, Marcus & Millichap, as well as Brian Savage, Partner & Managing Director, Colliers International.

The portfolio includes three properties south of downtown Tuscaloosa and the University of Alabama in the Southwood and Idlewood neighborhoods: Broadmoor Gardens, Copper Creek and Woodlawn Manor. The three properties all offer convenient access to work and leisure activities in the city via I-59, I-20 and I-359, and are near parks, the DCH Regional Medical Center and employment opportunities, such as Mercedes-Benz US.

“Strategically located near the heart of Tuscaloosa, this portfolio aligns with our expansive Southeastern footprint,” said Jeffrey Simpson, Managing Partner and Co-Founder, Arch Companies. “We are excited by the opportunities presented by assets with high upside potential, particularly those in dynamic cities with diversified live-work-play offerings for residents.”

The three properties include a mix of one-, two-, and three-bedroom units, all which, have benefited from strong occupancy figures. To improve resident experience, Arch will be implementing value-add capital improvements through their vertically integrated Arch Builders division. Additionally, the properties will be operated by Arch’s experienced, hands-on, in-house management team.

“Across our robust Southeast multifamily presence, our strategy is to stabilize and improve assets to deliver investment value and a great resident experience,” said Jared Chassen, Partner and Co-Founder, Arch Companies. “We have strong relationships with our partners and capital providers to help ensure our vertically integrated approach continues to support the breadth of our vision and portfolio.”

“We value our continued collaboration with Arch and their nearly 5,000-unit multifamily portfolio,” said Geoff Smith, Managing Director, Walker & Dunlop. “They have built an impressive reputation through their ability to identify and deliver on value-add opportunities in ascendant markets.”

“Drake continues to seek long-term, programmatic relationships with strategic partners, like Arch, with deep expertise and relationships in their respective property types and markets,” said Moira Concannon, Vice President of Acquisitions, Drake Real Estate Partners. “We value our ongoing partnership with Arch and look forward to targeting and delivering on opportunities in the Southeast multifamily market with them in the future.”

“Working with Arch and Drake continues to be a productive relationship and we expect great success,” said Jacobs. “Their institutional expertise and their proactive vision continue to drive growth that benefits all transaction parties and the regional market.”

San Diego-based Tower 16 Capital Partners, in partnership with Drake Real Estate Partners, has acquired La Mirada Apartments, a 201-unit multifamily project in Tucson, Ariz. The property was acquired from a private seller in an off-market transaction.

“We are excited to announce our second acquisition in the Tucson market,” said Tower 16 Co-Founder Mike Farley. “We believe that the demand drivers for multifamily housing in Tucson will continue to grow in the coming years, and we are excited to be part of that growth story.” 

Since its founding in 2017, Tower 16 has made similar moves into markets throughout the West, having acquired close to 4,000 units in California, Las Vegas, Phoenix, Tucson and Denver. The company seeks markets with increasing demand for workforce housing driven by job growth and in-migration but with relatively low levels of new supply. According to company executives, Tower 16 intends to build a portfolio of over 1,000 units in the Tucson market over the next several years.

La Mirada Apartments is located at 4415 East Grant Road in Tucson, Ariz. The property is just minutes away from the I-10 freeway and only ten minutes from Downtown Tucson and the University of Arizona campus. The community consists of large two- and three-bedroom apartments with a clubhouse and two swimming pools. Tower 16 will be overseeing over $4 million in upgrades and renovations to the property including modernized unit upgrades, a new clubhouse, gym and updated pool areas. The company will also be adding outdoor amenities including barbeques, seating and outdoor gaming areas.

“We plan on making numerous upgrades to the property that will greatly enhance the tenant experience at La Mirada,” said Tower 16 Co-Founder Tyler Pruett. “It gives us great satisfaction to watch the transformation of the property and the surrounding neighborhood through our efforts. We look forward to starting our work as soon as possible.”

Tower 16 partnered with Drake Real Estate Partners in the acquisition of La Mirada, the second venture in a programmatic relationship between the two firms.