Tower 16 Makes $107M Apartment Purchase in the Inland Empire

Tower 16 Capital Partners has acquired a two-property, 504-unit apartment portfolio in the Inland Empire for $107.2 million. The two properties in the transaction are Sienna Pointe Apartments, a 384-unit property built in 1985, and Heacock Park Apartments, a 120-unit property built in 1971. Both were acquired from a private seller in an off-market transaction. Brian Nelson of Colliers International alongside Nicole Parrish of Centurion Realty represented Tower 16 in the transaction.

Tower 16 is bullish on the Inland Empire market because of job and population growth over the last year. This purchase, part of Tower 16’s expansion plans in the Inland Empire, is the fifth and sixth for the company in the market.

In May, the firm announced plans to build a 2,000-unit portfolio in the region over the next several years. The firm has acquired a two-property 214-unit portfolio in Colton, California, for $41 million as part of the strategy. The purchase consisted of 1333 Canyon, a 104-unit property built in 1986, and Reche Ridge Apartments property, a 110 units built in 1985. The company plans to invest an additional $4 million in capital improvements in both properties. The improvements will include a new clubhouse, fitness center, pool areas and the addition of barbeque areas, seating and outdoor gaming areas.

The firm has also completed the business cycle on investments in the market. In April, it sold a 352-unit multifamily property in Colton, CA. MG Properties purchased the asset for $88 million. The apartment complex, the District at Grand Terrace, is located at 1316 S. Meadow Lane, within close proximity to downtown Riverside and Loma Linda/Redlands.

In this most recent purchase of Sienna Pointe Apartments and Heacock Park Apartments, Tower 16 plans to invest an additional $10 million in capital improvements. As with the Colton properties, the upgrades will include community amenities, like new clubhouses and upgraded pools.