Reno Multifamily Trades for $43M
Tower 16 is entering the Reno market with this deal as well as returning to Nevada.
San Diego-based Tower 16 Capital Partners has acquired The Deco at Victorian Square, a 209-unit multifamily property in Reno, NV. The project was built in 2021 and acquired for $43 million, which Tower 16 says is well below today’s replacement cost.
It is the company’s first acquisition in the Reno market and marks its return to the state, where it once owned a portfolio of 2,000 units, according to Tower 16 Co-Founder Tyler Pruett. “We’re pursuing opportunities in Western growth markets to acquire high-quality real estate at a steep discount to replacement cost and prior-peak pricing. We have been trying to enter the Reno market for years and remain firm in our conviction that in-migration from more expensive markets will continue, driven by increasing job opportunities, low cost of living and attractive lifestyle amenities.”
Tower 16 has made similar moves in markets throughout the West, acquiring nearly 7,000 units representing assets of over $1 billion in Southern California, Las Vegas, Phoenix, Tucson, Albuquerque and Denver. Tower 16 is aggressively targeting new construction assets in varying stages of completion/lease-up as well as value-add opportunities in the Southwest.
The Deco is a 10-story, podium-style multifamily community with a mix of studio, 1- and 2-bedroom apartments averaging 731 square feet. IT was at 97% occupancy during escrow, said Tower 16 Co-Founder Mike Farley.
Tower 16 will complete nearly $1 million in upgrades including common areas and fitness center upgrades and landscaping enhancements. The company will also add outdoor amenities including barbeques, seating and gathering areas.
Jonathan Merhaut of Eastdil Secured represented the seller in this transaction. Eastdil Secured helped secure debt financing for the buyer, led by Lee Redmond and Greg Stampley
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