San Diego-based Tower 16 Capital Partners has acquired Sorelle Apartments, a 330-unit multifamily property located in Moreno Valley, Calif., for $85 million. The Sorelle Apartments project was built in 1986 and was acquired from a private seller in an off-market transaction.
“This acquisition marks our seventh property acquired in the Inland Empire market and brings our current portfolio in the Inland Empire market to over 1,000 units,” said Tower 16 co-founder Tyler Pruett. “We are continuing to expand our presence in the Inland Empire market given the strong employment growth and attractive supply-demand imbalance coming out of the pandemic.”
Since its founding in 2017, Tower 16 has made similar moves into markets throughout the West, having acquired over 5,500 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 is well underway on its goal to acquiring 2,000 units in the Inland Empire market over the next couple years.
Sorelle Apartments is located at 12159 Calle Sombra in Moreno Valley, Calif. The property includes a leasing office, fitness center, playground and two pools. The property is located within minutes of the I-215 and CA-60 freeways with close proximity to the Moreno Valley Mall, March Air Reserve Base, Centerpointe Industrial Area as well as several large distribution centers along the I-215 corridor.
Tower 16 will be overseeing close to $5 million in upgrades and renovations at the property including modernized unit upgrades, exterior common areas and landscaping enhancements. The company will also be adding outdoor amenities including updated pool areas, barbecues, seating and outdoor gaming areas.
“The property offers significant renovation opportunity, and we look forward to physically transforming the project to improve the resident experience for our tenants,” said Tower 16 co-founder Mike Farley.
Tower 16 was represented by Ed Rosen of Berkadia’s San Diego office. NorthMarq helped secure debt financing for the buyer, led by Bryan Mummaw and Bryan Liu.