Glendale, Arizona -- Tower 16 Capital Partners has sold Obsidian on Ocotillo Apartments, a 232-unit multifamily project in Glendale, AZ, for $56.4 million ($243,103 per unit). The property was purchased by Tower 16 in April 2021 for $40 million in an off-market transaction. The new buyer is SB Real Estate Partners, who is planning to further improve the property during its ownership.
“We made significant improvements to Obsidian on Ocotillo during our ownership including an entire rebrand of the community,” said Tower 16 Co-Founder Tyler Pruett. “We have now executed three roundtrip investments in the Phoenix market representing nearly $120 million of sale value.”
Obsidian on Ocotillo Apartments, formerly known as Summerhill Place, is a 232-unit apartment community located at 6801 W. Ocotillo Road in Phoenix. The property is in the Glendale submarket of Maricopa County, less than eight miles from downtown Phoenix. The property is conveniently located near the I-60 freeway and Arizona State Route 101, allowing quick access to downtown Phoenix and other parts of Maricopa County.
Obsidian on Ocotillo was built in 1986 and consists of 14 buildings situated on 8.55 acres. Common area amenities include gated access, two pools, laundry facilities, barbeques, a playground and dog park. The project is comprised of one-bedroom and two-bedroom units including fully equipped kitchens with stove/ovens, refrigerators, ceiling fans, washers and dryers. Tower 16 spent over $2.7 million in renovations and upgrades to the property during its ownership.
“Obsidian on Ocotillo proved to be a great project for not only Tower 16 but for our investors and, most importantly, our residents of the community,” said Tower 16 Co-Founder Mike Farley. “We are very happy about the outcome and are continuing to look for multifamily investment opportunities in the Phoenix market.”
Real estate broker Jesse Hudson, Trevor Koskovich, and Bill Hahn of Northmarq Phoenix advised Tower 16 on the sale.