Commercial Real Estate Investment Firm Has Acquired Their Third Property in Tucson Since Late 2020

TUCSON, ARIZONA  — Tower 16 Capital Partners (“Tower 16”) has acquired Nottinghill Apartments, a 322-unit multifamily property in Tucson, AZ in an off-market transaction for $35.5 million.

Tower 16 was founded in 2017 by principals Mike Farley and Tyler Pruett who have over 45 years of combined institutional real estate experience with an emphasis on value-add investing.

Nottinghill is Tower 16’s third investment in Tucson since entering the market in late 2020.  The San Diego-based multifamily investment firm has identified Tucson as one of its primary target markets and with the acquisition of Nottinghill, Tower 16 is now halfway to its goal of building a local portfolio of 1,500 units by the end of 2023.

Nottinghill Apartments is located at 2660 N Alvernon Way in Tucson. The property includes a leasing office, clubhouse, and four pools. The property is located at the intersection of E. Flower Street and N. Alvernon Way near the Tucson Medical Center and within minutes of the I-10 freeway, Downtown Tucson and the University of Arizona campus.

Tower 16 will be overseeing more than $8 million in upgrades and renovations at the property including modernized unit upgrades, exterior and common area improvements and landscaping enhancements. In addition to updating the pool area, Tower 16 also will be adding outdoor amenities including, barbeques, seating and gaming areas.

“The property was owned and self-managed by the seller for nearly 20 years and is almost entirely in classic condition, leaving us with significant opportunity for renovations,” said Tower 16 Co-Founder Tyler Pruett.  “We believe we can significantly improve the quality of the residential experience at Nottinghill and continue to play a role in the transformation of the Oak Flower neighborhood, which began with our acquisition of La Mirada apartments.”

Since its founding in 2017, Tower 16 has made similar moves in markets throughout the West, having acquired over 6,500 units in California, Las Vegas, Phoenix, Albuquerque 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.

Tower 16 was represented by Brett Polachek and Chris Canter of Newmark Knight Frank’s Phoenix office. Way Capital helped secure debt financing for Tower 16, led by Malcolm Davies, Zack Streit, Drew Sandler, and Alex Rossinsky.

Since 2017, the Company has acquired over 6,500 units representing $1 billion of assets under management.

Rancho Sahuarita housing market continues along at a frenzied pace.

SAHUARITA, ARIZONA — The latest 428-lot subdivision in award-winning Rancho Sahuarita Master Planned Community, Entrada Del Pueblo, has all of its lots committed to four home builders now.

Pulte closed on 105 SFR lots for $6,507,635 ($61,977 per finished lot) and Meritage closed on 115 SFR lots for $6,785,000 ($59,000 per finished lot). Pulte lots are all 45’x120’ and Meritage are 40’x 120’ in size.

Earlier, Lennar Homes closed on 110 SFR lots for $6,864,000 ($62,400 per finished lot) and Richmond American Homes also purchased 98 SFR lots for $6,131,381 ($62,565 per finished lot). All the home builders closed on platted lots with seller, an affiliate of Rancho Sahuarita, that will provide finished lots at a per lot development agreement.

Rancho Sahuarita is a 3,000-acre master planned community located within the municipal boundaries of Sahuarita, Arizona, a town with a population of approximately 31,500 in Southern Arizona. Sahuarita is one of Arizona’s fastest-growing communities located roughly 20 minutes south of Central Tucson on Interstate 19 and Tucson International Airport a 20-minute drive.

Started in 2000, Rancho Sahuarita began expansion south of Sahuarita Road with Entrada La Coraza with 144-homes earlier this year, located in the vicinity of the new hospital. Entrada Del Pueblo’s 428 homesites, will be to the south of Entrada La Coraza.

With low interest rates and limited inventory fueling record high sales prices. May saw the median existing-home sales price exceed $350,000, a 24% increase and the largest year-over-year increase since 1999, according to the National Association of REALTORS®. Eager buyers are making multiple offers, some for well over asking price, while others are making offers on homes sight unseen.

Meanwhile, home builders are trying to meet the increased market demand, with housing starts up 3.6% in May from April nationally, according to the Commerce Department. Single‐family housing starts in June were at a rate of 1,160,000; this is 6.3 percent (±11.7 percent) above the revised May figure of 1,091,000.

For more information on Rancho Sahuarita, Diana Dessy, Director of Land Assets at Rancho Sahuarita, should be reached at 520.275.7235.

To learn more, see RED Comp #8843 and #8892.

TUCSON, ARIZONA – Avila Enterprises of Tucson (Juan Roberto Avila, manager) sold the former Shamrock gas station at 1306 West Grant Road in Tucson for $1 million to PARBHU, LLC of Tucson (Sumit Thathi, manager).

Purchased in April for $624,000, the seller was able to resell the property 2 months later.

This high traffic site is at the southeast corner of Grant Road and I-10, the buyer purchased to renovate as a gas station again.  The 1,616-square-foot building sold with deferred maintenance including a new roof needed.

Rob Lamb and the Rob Lamb Team of Long Realty represented Avila when it purchased it and the seller and buyer in the subsequent transaction.

For more information, Lamb should be reached at 520.444.4411.

To learn more, see RED Comp #8864 and #8725.