Tower 16 Acquires 508-Units in Phoenix for $78M
The company has purchased two communities in separate transactions and plans to implement $12 million in capital improvements.
PHOENIX, AZ – San Diego-based, Tower 16 Capital Partners has purchased two Phoenix-area multifamily properties for $78.5 million.
The properties, which total 508 units, were acquired in two separate transactions.
The first of the two properties comprises the 232-unit Banyantree Apartments community, which was acquired for $36.5 million from a private family that had owned and operated the properties for nearly 30 years. Located at 12435 N. 28th Dr. in Phoenix, AZ, Banyantree Apartments features a pool, on-site laundry facilities, barbeque and picnic areas and a leasing office.
The second acquired property is Solano Pointe Apartments, a 276-unit community located at 6565 W. Bethany Home Rd. in Glendale, AZ. The community was purchased for $42 million in an off-market transaction. Built in 1983, Solano Pointe Apartments features a playground, a pool, on-site laundry facilities, barbeque and picnic areas and a leasing office.
Tower 16 will be investing a collective $12 million in capital improvements at the two properties. The company plans to implement unit renovations, clubhouse upgrades, leasing office renovations, updated pool areas, and new outdoor amenities including barbeques, seating and outdoor gaming areas.
“These acquisitions represent our fifth and sixth properties acquired in Phoenix and bring our current portfolio in the Phoenix market to over 1,000 units,” says Tower 16 co-founder, Mike Farley. “We remain bullish on the Phoenix market given the continued in-migration and strong employment growth coming out of the pandemic and are actively looking to expand our presence in the market.”
Tower 16 intends to build a portfolio of over 2,000 units in the Phoenix market over the next several years.
Berkadia’s Ric Holway, Dan Cheyne and Mark Forrester represented the seller of Banyantree Apartments. Berkadia’s David Bleiweiss and Jack Hunsicker helped to secure debt financing for Tower 16 in this transaction.
Alon Shnitzer, Rue Bax, Eddie Chang, and Doug Lazovick of ABI Multifamily’s Phoenix-based institutional apartment group represented the buyer and the seller in the Solano Pointe Apartments transaction.
“Each property offers significant opportunity to physically transform the projects and enhance the resident experience with our renovations,” says Tower 16 co-founder, Tyler Pruett. “We are looking forward to starting our work as soon as possible and are excited to see the impact on the neighborhoods with our efforts.”