Tower 16 Capital Partners has sold IVilla Garden Apartments, a 214-unit multifamily project in Phoenix, for $30 million. The property was purchased by Tower 16 in February 2020 for $15.1 million in an off-market transaction. The new buyer is Tides Equities, one of the largest apartment owners in the Phoenix market, who is planning to further renovate and improve the property during its ownership.

“We made significant improvements to the IVilla Garden project during our ownership,” said Tower 16 Co-Founder Tyler Pruett. “That allowed us to achieve our business plan very quickly. Despite this sale, we plan on re-investing in multifamily properties throughout the Phoenix market over the next several years as we continue to see a positive supply/demand relationship in the region.”

IVilla Garden Apartments is a 214-unit apartment community located at 2634 N. 51^st Avenue in Phoenix. The property is in the Westside submarket of Maricopa County, less than eight miles from downtown Phoenix. This location is conveniently located near the I-10 the I-60 and the I-17 freeways, allowing quick access to downtown Phoenix and other parts of Maricopa County.

The project was built in 1981 and consists of 11 buildings situated on 2.4 acres. Common area amenities include gated access, two pools, laundry facilities, a central park, barbeques, a playground and dog park. The project includes both studio and one-bedroom units including fully equipped kitchens with stove/ovens, refrigerators, ceiling fans, central heating and air conditioning. Tower 16 spent over $1.9 million in renovations and upgrades to the property during its ownership.

“IVilla Gardens proved to be a great project for not only Tower 16 but for our investors and, most importantly, our residents of the community,” said Tower 16 Co-Founder Mike Farley. “Further, I believe the property will only continue to improve under the new ownership.”

Real estate brokers Jesse Hudson, Bill Hahn and Trevor Koskovich of Northmarq Phoenix advised the Tower 16 on the sale.

San Diego-based Tower 16 Capital Partners has acquired a two-property multifamily portfolio consisting of 214 units in Colton, Calif., for $41 million. The 1333 Canyon project consists of 104 units built in 1986 while the Reche Ridge Apartments includes 110 units built in 1985. The properties were acquired from a private seller in an off-market transaction.

“The Inland Empire continues to be a strong market for multifamily housing,” said Tower 16 Co-Founder Mike Farley. “We believe the demand drivers for multifamily housing will continue to grow in the coming years while new supply will remain very low. It’s likely this imbalance will result in strong rent growth in the submarket for the next several years.” 

Since its founding in 2017, Tower 16 has made similar moves into markets throughout the West, having acquired approximately 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 2,000 units in the Inland Empire market over the next several years.

The 1333 Canyon Apartments is located at 1333 Reche Canyon Road in Colton, Calif. The property includes a leasing office, clubhouse, gym and pool. Reche Ridge is located at 2270 Cahuilla Street in Colton, Calif. The property boasts covered parking, clubhouse, gym and pool areas in a park like setting. Both properties are located within minutes of the I-215 and I-10 freeways with close proximity to the Loma Linda medical campus, Loma Linda College, University of Redlands as well as several large distribution centers such as Amazon and others.

Tower 16 will be overseeing close to $4 million in upgrades and renovations at both properties including modernized unit upgrades, new clubhouses, gyms and updated pool areas. The company will also be adding outdoor amenities including barbecues, seating and outdoor gaming areas.

“Our renovations will significantly change the look and feel of these properties and the amenities offered to tenants,” said Tower 16 Co-Founder Tyler Pruett. “As always, we’re thrilled to be able offer a naturally affordable housing option to the residents of Colton.”

Scott Peterson, Bill Chiles and Morgon Fraser of the San Diego CBRE Capital Markets team arranged debt financing on behalf of Tower 16.

San Diego-based Tower 16 Capital Partners has acquired a two-property multifamily portfolio consisting of 332 units in the greater Phoenix area for $55 million. Summerhill Place Apartments is in Glendale, Ariz., and consists of 232 units built in 1986. The Villas at Montebella Apartments, located in Peoria, Ariz., includes 100 units built in 1974. The properties were acquired from a private seller in an off-market transaction.

“This acquisition marks our third and fourth properties acquired in the Phoenix market,” said Tower 16 Co-Founder Mike Farley. “We believe the demand drivers for multifamily housing in Phoenix will continue to grow in the coming years, and we are excited to be providing a naturally affordable product to meet that demand.” 

Since its founding in 2017, Tower 16 has made similar moves into markets throughout the West, having acquired approximately 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 2,000 units in the Phoenix market over the next several years.

Summerhill Place is located at 6801 W. Ocotillo Road in Glendale, Ariz. The property is just minutes away from Highway 60 and only a few miles from major employment centers on the west side of Phoenix. Villas at Montebella is located at 10860 N. 85^th Ave in Peoria, Ariz., and is conveniently located between Highway 60 and 101 loop. Tower 16 will be overseeing close to $6 million in upgrades and renovations at both properties 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 modernize the properties and provide a better tenant experience,” said Tower 16 Co-Founder Tyler Pruett. “We’re excited to watch the transformation of these properties over the next six to 12 months, and we think our tenants will be very happy.”

Tower 16 was represented by Jesse Hudson, Bill Hahn, Trevor Koskovich and Ryan Boyle with Northmarq’s Phoenix multifamily team. Northmarq also secured debt financing for buyer, led by Brian Mummaw, Brandon Harrington and Tyler Woodward.

Tower 16 Capital Partners has sold Hillside Village Apartments, an 80-unit multifamily project in San Bernardino, for $16.5 million. The property was purchased in January 2019 for $11 million in an off-market transaction. Tower 16 recently sold another Inland Empire property, The District at Grand Terrace, for $88 million.

“We made major improvements to the Hillside Village project during our ownership,” said Tower 16 Co-Founder Tyler Pruett. “That allowed us to achieve our business plan relatively quickly. Despite this sale, we plan on re-investing in multifamily properties throughout the Inland Empire over the next several years.”

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 over $57,000. The apartment complex is near parks, shopping centers, freeways, Loma Linda and Victoria Gardens.

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

Despite the pandemic, demand for apartments in the Inland Empire soared to a level not seen in 18 years by the end of 2020, with vacancy rates of 2.4 percent. The average monthly rent in the region is $1,686 per month, an 8.3 percent increase over the year before, and rents exceeded $1,700 in several western San Bernardino County cities.

Real estate brokers Ed Rosen, John Chu and Tyler Sinks of Berkadia San Diego represented Tower 16 on the sale.

The Firm Implemented a $2.6 Million Renovation During Two-Year Ownership Period

San Diego-based Tower 16 Capital Partners has successfully sold The District at Grand Terrace, a 352-unit apartment project located in Colton, Calif. The property was originally purchased in 2019 for $63,050,000 and was sold this month for $88 million. During its two-year hold, the company performed a $2.6 million capital improvement program including interior unit renovations and enhancing several exterior amenities.

“District at Grand Terrace was a phenomenal execution for Tower 16 and our primary LP investor,” said Tower 16 Co-Founder Mike Farley. “In just two years, we significantly enhanced the value of the property and transacted with one of the preeminent multifamily owners on the West Coast.”

This marks Tower 16’s first disposition in 2021 with another Inland Empire sale closing later this month. Despite the two sales, Tower 16 is planning additional acquisitions in the Inland Empire with the goal of amassing a portfolio of 1,000 apartment units over the next 18 months. “We believe the Inland Empire will continue to be a strong market for workforce housing due to the growing job base and high barriers to entry for new construction,” said Tower 16 Co-Founder Tyler Pruett.

The District at Grand Terrace is located at 1316 S Meadow Lane in Colton, within five miles of downtown Riverside and Loma Linda/Redlands. Colton is a strong submarket with average incomes of $72,000. The apartment complex is located near the I-215 freeway and is four miles from the Loma Linda University Medical Center.

The buyer of the property is MG Properties, a privately held real estate investment firm based in San Diego. Real estate brokers Tyler Martin, Alex Garcia, Chris Zorbas and Chris Copenhaver of Institutional Property Advisors represented Tower 16 in the transaction.

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.