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, at 6801 W. Ocotillo Road, in Glendale, consists of 232 units built in 1986, and The Villas at Montebella Apartments, at 10860 N. 85th Ave., in Peoria, 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,” Tower 16 co-founder Mike Farley stated in a news release. “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.”
Tower 16 says it intends to build a portfolio of more than 2,000 units in the Phoenix market over the next several years.
Summerhill Place is just minutes from Grand Avenue and only a few miles from major West Valley employment centers. Villas at Montebella is between Grand Avenue and Loop 101.
Tower 16 will oversee 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 also will add outdoor amenities including barbecues, seating and outdoor gaming areas.
“We plan on making numerous upgrades to modernize the properties and provide a better tenant experience,” Tower 16 co-founder Tyler Pruett stated. “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.”