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.

Pinnacle, one of the nation’s leading multifamily management firms, announced today it was awarded over 29,000 apartment homes from two separate portfolios, adding 19,689 units in Florida; 6,635 units in Colorado; 1,144 units in California; and 1,721 units in Washington. To accommodate the growth, the company expanded its national and regional infrastructure to ensure a smooth transition for the incoming communities and team members and to avoid disruption for residents.

“The continued upswing in the multifamily markets across the nation is fueling investment opportunities for our clients,” said Rick Graf, president and chief executive officer. “Pinnacle was pleased to have been selected for the management of these portfolios and immediately turned our attention to dedicating resources toward the undertaking. Our goal was to protect our client’s investment while enriching the resident experience.”

Developing a strategic approach to such a large integration was the first course of action after being awarded management. Pinnacle’s in-place processes were fortified to handle the volume of incoming properties, applying a system of checks and balances so operations would not be interrupted.

The migration occurred in phases, explained Larry Goodman, chief operating officer. “As a management company, we were entrusted with overseeing so much more than bricks and mortar. This is a home environment and the last thing we wanted to do was cause disruption in any way so we did our due diligence to minimize errors and anticipate the concerns of residents. Then we implemented our plans with a calculated approach.”

Overall, 700 team members were hired during the transition, 12 of whom were regional level managers, to accommodate the growth and safeguard the operational integrity of the communities. To supplement Pinnacle’s automated processes in play, onboarding teams were created to visit each property and induct the new hires. Forty corporate positions were also added within various departments, including Human Resources, Marketing, Information Technology and Learning and Development, to support the associated business initiatives.

“Securing the right talent was paramount to this endeavor,” said Graf. “Once that was accomplished, it was important for us to personally interface with each new team member as they began their cultural introduction into the company. These individuals were more than just a name on paper to us, they became an integral part of Pinnacle with living and breathing ideas to share.”

Training was another primary focus for Pinnacle. The strategy was to provide critical operating information to new team members at a very early stage over a period of several weeks, targeting different topics and job titles on a rotational basis. A blended learning environment with intensive in-person sessions, along with hands-on practice scenarios and virtual courses and resources was initiated. Each new community was also sponsored by a seasoned Pinnacle team member to provide guided support and serve as a direct point of contact. This collaborative approach between many of Pinnacle’s internal departments allowed community life to proceed with as few disruptions as possible.

“We couldn’t be more pleased with the results of this endeavor,” said Graf. “Pinnacle did so much more than grow a portfolio. We attracted some of the best professionals in the business to assist in our mission. These talented individuals have all contributed to the evolution of our company.”