San Diego-based Tower 16 Capital Partners in partnership with Raith Capital Partners has successfully acquired Ascend on Glendale, a 216-unit multifamily property located near the rapidly-growing Westgate Entertainment District of Glendale, Arizona.
“This marks our eighth acquisition in the Phoenix market and our 11th acquisition in Arizona,” said Tower 16 Co-Founder Mike Farley. “We have been studying the supply-demand fundamentals in the Phoenix market closely and have witnessed incredibly strong demand over the past two quarters. Phoenix continues to attract new job opportunities from corporate investment, expansion and relocation from more expensive markets. New construction starts are slowing down and we believe the market is poised for strong rent growth over the next five years. We are continuing to pursue opportunities in Western growth markets where we can acquire high-quality real estate at a steep discount to replacement cost and prior-peak pricing.”
“We are excited to partner with Tower 16 on the acquisition,” said Raith Capital Partners Principal Sahil Amin. “There is a strong history between the founding partners of our firms, and we are excited to start a new partnership. With this purchase, we are taking advantage of the opportunity to acquire a high-quality asset in a fast-growing market at a very attractive basis.”
Since its founding in 2017, Tower 16 has made similar moves in markets throughout the West, having acquired 7,200 units in Southern California, Las Vegas, Phoenix, Tucson, Albuquerque and Denver. The company seeks markets that exhibit strong rental housing fundamentals including employment growth, in-migration and limited new supply in relation to household formation. According to company executives, Tower 16 is continuing to aggressively pursue other new construction assets in varying stages of completion/lease-up as well as value-add opportunities in the Southwest.
Ascend on Glendale is situated on a strong corner location at Glendale Avenue and 75th Avenue near the Westgate Entertainment District. The property is a Class-A, two-story, garden-style multifamily community with a mix of 1-, 2- and 3-bedroom apartments averaging 921 square feet. The property offers a variety of resort-style amenities including a sparkling swimming pool, a state-of-the-art fitness center, and a large clubhouse. The property is located near popular shopping and dining destinations, as well as major employers and easy access to the Loop 101 and I-17 freeways.
“The property has performed exceptionally well during lease-up and we are excited to continue building off the progress that the Cushman & Wakefield property management team has helped generate. The property features a unique low-density site plan, large floor plans with oversized balconies and was extremely well-built by the developer. We are excited to enhance the community with strategic investment in the common area amenities, landscaping and technology at the property,” said Tower 16 Co-Founder Tyler Pruett.
Tower 16 and Raith will be overseeing substantial upgrades at the property to enhance the resident experience including modernized FF&E, technology upgrades and landscaping enhancements.
“We are excited to close on another new-construction multifamily acquisition this year, it is a high-conviction thesis for us. We have been spending a lot of time in the Phoenix market and appreciate the seller and Cushman & Wakefield for trusting us with this important opportunity,” said Tower 16 Director of Acquisitions Dave McClain. “It was an extremely smooth transaction and we look forward to doing future business with the entire team.”
David Fogler and Steven Nicoluzakis of Cushman & Wakefield represented the seller in this transaction. Cushman & Wakefield helped secure debt financing for the buyer, led by Brian Share and Craig Branton.
