Commercial Real Estate Investment Firm Plans to Spend Close to $4 Million to Renovate the Property
San Diego-based Tower 16 Capital Partners, in partnership with Drake Real Estate Partners, has acquired Sierra Vista Apartments, a 258-unit multifamily project in Tucson, Ariz. The property was acquired from a private seller in an off-market transaction.
“We are excited to enter the Tucson market with the acquisition of Sierra Vista Apartments,” said Tower 16 co-founder Mike Farley. “The project is well positioned to take advantage of the growing apartment demand in Tucson, especially after we complete our renovation of the property.”
Since its founding in 2017, Tower 16 has made similar moves into markets throughout the west, having acquired over 4,000 units in California, Las Vegas, Phoenix 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.
Sierra Vista Apartments is located at 3535 N. First Avenue in Tucson, Ariz. The property is minutes away from the I-10 freeway and ten minutes from Downtown Tucson and the University of Arizona campus. The community consists of one-, two- and three-bedroom apartments with a large clubhouse, gym and two swimming pools. Tower 16 will oversee close to $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.
Tower 16 partnered with Drake Real Estate Partners in the acquisition of Sierra Vista, the first such joint venture between the two firms. Real estate brokers Jesse Hudson, William Hahn and Trevor Kosovitch of Northmarq represented both the buyer and seller in the transaction. Brian Mummaw of Northmarq coordinated debt financing for the buyer.
Commercial Real Estate Investment Firm Plans to Acquire Over 2,000 Units in the Denver MSA Over the Next 18 Months
San Diego-based Tower 16 Capital Partners, in partnership with Dune Real Estate Partners, has acquired the Fairways at Lowry Apartments, a 450-unit multifamily project in Denver, Colorado. The property was acquired from a private seller.
“We’re very excited about the acquisition of Fairways at Lowry. The project represents our first investment in the Denver MSA which we believe is poised for future rent growth due to the strong demand for workforce housing,” said Tower 16 co-founder Tyler Pruett. “We believe the city will continue to see strong job growth and in-migration of people from more expensive coastal markets seeking the high quality of life that Denver offers.”
While the project represents Tower 16’s first investment in Denver, the company has made similar moves into markets such as Las Vegas, Phoenix and the Inland Empire driven by market dynamics that support strong demand for workforce housing. Based on the market fundamentals in Denver, Tower 16 plans to acquire a portfolio of 2,000 units in the next 18 months.
Tower 16 partnered with Dune Real Estate Partners in the acquisition of Fairways at Lowry, the first such joint venture between the two firms. “We believe strongly in the workforce housing market in Denver and are excited to partner with Tower 16 on the acquisition of Fairways at Lowry” said Aaron Greeno, partner and Head of West Coast investments for Dune.
Fairways at Lowry is located at 9913 E. 1st Avenue in Aurora, Colorado. The property is just minutes away from the Lowry master-planned development and all the dining, shopping and recreation amenities the area has to offer. In addition, Fairways is only three miles from Interstate 225 and seven miles from Downtown Denver. The community consists of one & two-bedroom apartments with a large clubhouse, gym, swimming pool and playground. Tower 16 will be overseeing $6.8 million in upgrades and renovations to the property including modernized apartment unit upgrades, a new clubhouse, gym and updated pool area. The company will also be adding outdoor amenities including barbeques, seating, outdoor gaming and a sports court.
Real estate brokers Terrance Hunt and Shane Ozment of Newmark Night Frank represented both the buyer and seller in the transaction. Charlie Williams of Newmark coordinated debt financing for the buyer.
Encinitas-based Tower 16 Capital Partners announced it has hired Joe Anfuso, a 15-year veteran in the real estate investment industry, as an asset manager to oversee its multifamily assets throughout the Southwest region.
Tower 16 currently owns and manages a portfolio of seven properties representing nearly 2,000 apartment units. Anfuso's responsibilities will include managing onsite operations and staff, directing investor reporting and executing the asset business plans. Additionally, Anfuso will play a critical role in the initial acquisition of new assets as well as property dispositions.
“We are excited to have Joe join our team of real estate professionals,” said Tower 16 co-founder Mike Farley. “His broad experience in the housing industry will be a great asset for Tower 16 and its investors. We look forward to him making significant contributions to our investments in addition to adding valuable perspective to our senior management team.”
Prior to joining Tower 16, Anfuso was the director of acquisitions and asset management for Presidio Residential Capital, a real estate private equity firm located in San Diego. During his seven years with the company, he was responsible for sourcing and managing the company’s residential equity investments throughout the western United States.
“I’m delighted to join Tower 16 as I embark on this next phase of my career,” said Anfuso. “I was impressed with the company’s quick growth in the multifamily industry and their value-add investment philosophy, which I strongly believe in. As such, I made the decision to join what I believe is a dynamic organization that understands the future of multifamily investing.”
Previous to Presidio, Anfuso worked for TriPacific Capital Advisors where he was responsible for managing the firm's western region investment portfolio on behalf of the Los Angeles County Employees Retirement Association (LACERA). Anfuso has also held positions with Chelsea Investment Corporation, an affordable housing developer, as well as Fairfield Residential, a nationwide multifamily owner/operator.
Anfuso earned a master’s degree in real estate from the University of San Diego and a bachelor’s degree in business administration with an emphasis in finance from Northern Arizona University.
“The addition of Joe to our team will allow Tower 16 to continue to grow while maintaining a sharp focus on executing on our existing investments,” said company co-founder Tyler Pruett. “We believe the best has yet to come for Tower 16, and we’re glad to have Joe play a role in that future success.”
San Diego-based Tower 16 Capital Partners has successfully sold Altura on Duneville, a 228-unit apartment project located in Las Vegas. The property was originally purchased in 2018 for $24,000,000 and was sold this month for $35,500,000. During their two-year hold, the company performed significant exterior and interior unit renovations, adding several amenities including a new leasing office, gym, business center and game room.
“Altura on Duneville was a phenomenal project in a great location in Las Vegas,” said Tower 16 Co-Founder Mike Farley, “We put a lot of hard work into repositioning the property in order to create value for the residents, the neighborhood and our investors.”
Tower 16 has amassed a portfolio of close to 2,000 apartment units since first entering the Las Vegas market in April 2018. “We believe that Las Vegas will continue to be a strong market for multifamily investments due to the growing job base and reasonable cost of living,” said Tower 16 Co-Founder Tyler Pruett. “I think you’ll see us continue to be an active buyer in the market for those reasons.”
Altura on Duneville Apartments is located at 5050 Duneville Street, within a few miles of the Las Vegas Strip in the Spring Valley submarket. It includes 228 one- and two- bedroom apartments. Community amenities include two swimming pools, a newly renovated leasing office and on-site daycare.
Commercial Real Estate Investment Firm Owned the Property for Only 18 Months
San Diego-based Tower 16 Capital Partners has successfully sold Altura on Tropicana, a 512-unit multifamily project in Las Vegas, after an 18 month hold period. Tower 16 had originally purchased the property for $50 million in June 2018 and invested over $4 million in capital improvements during its hold period.
“Altura on Tropicana has provided us with an amazing opportunity to execute a true value-add repositioning strategy and capitalize on the strong Las Vegas apartment market,” said Tower 16 Principal Tyler Pruett. The property’s new ownership will continue with the repositioning strategy at the project.
Tower 16 has amassed a portfolio of close to 2,000 apartment units since first entering the Las Vegas market in April 2018. “While the sale of Altura on Tropicana represents a large disposition for Tower 16, we are still fundamentally bullish on the Las Vegas apartment market,” added Tower 16 Principal Mike Farley, “In fact, I think you will see us continue to acquire apartment projects opportunistically for the foreseeable future.”
Altura on Tropicana Apartments is located at 6255 W. Tropicana Ave, within a few miles of the Las Vegas Strip in the Spring Valley submarket. It includes 512 oversized one-, two- and three-bedroom apartments and townhomes. Community amenities include three swimming pools, two spas, a leasing office and outdoor amenity area.
Real estate brokers Angela Bates, Curt Allsop and Vittal Ram of Newmark Knight Frank represented Tower 16 in the transaction.
Commercial Real Estate Investment Firm Plans to Acquire Over 2,000 Units in the Phoenix MSA Over the Next 18 Months
San Diego-based Tower 16 Capital Partners, in partnership with HG Capital, has acquired Lilly Garden Apartments, a 180-unit multifamily project in Phoenix. The property was acquired on an off-market basis from a private seller for $11,700,000, or $65,000 per unit.
“Lilly Garden Apartments fits very well with our investment strategy of purchasing assets with significant operational upside below replacement cost,” said Tower 16 Principal Mike Farley.
This is the firm’s first purchase in the Phoenix market, with its second property in escrow and scheduled to close early next year. Tower 16 has plans to acquire over 2,000 units in the Phoenix MSA over the next 18 months.
“We are excited about the Lilly Garden purchase as part of a broader acquisition strategy in the Phoenix market given the strong demand drivers and limited new supply of workforce housing,” said Tower 16 Principal Tyler Pruett.
Lilly Garden Apartments is located at 4903 W. Thomas Road, within a few miles of five Amazon distribution centers and seven miles from downtown Phoenix. The community consists mostly of studios and one-bedroom apartments with covered parking, three swimming pools, a playground and a leasing office.
Tower 16 will be overseeing $2.7 million in renovations to the project including new outdoor amenities, an upgraded leasing office and interior renovations.
Real estate brokers Dan Cheyne, Ric Holway and Mark Forrester of Berkadia represented both the buyer and seller in the transaction.
