San Diego-based Tower 16 Capital Partners, in a joint venture with Henley Investments, has acquired Five89 Apartments, a 312-unit multifamily project in Las Vegas for $32.5 million. The property was acquired on an off-market basis from a private seller.
“Five89 Apartments fits very well with our investment strategy of purchasing assets below replacement cost in emerging locations with strong demand drivers,” said Tower 16 Principal Tyler Pruett.
This is the firm’s seventh acquisition in the last 18 months having acquired over 2,300 units in that timeframe and its fifth purchase in the Las Vegas market.
“We are still very bullish on the Las Vegas market given the strong job and population growth, limited new supply and overall occupancy projections for workforce housing,” said Mike Farley, principal.
Five89 Apartments is located at 4801 E. Sahara Avenue, within five miles of the Las Vegas Strip. The community consists mostly of two- and three-bedroom apartments with covered parking and private balconies or patios, two swimming pools, a fitness center, a playground and a leasing office.
Tower 16 will be overseeing $4 million in renovations and upgrades to the project including new outdoor amenities, an upgraded leasing office and interior renovations.
Pinnacle, a national multifamily real estate management firm, will take over as property manager.
About Tower 16 Capital Partners LLC
Tower 16 Capital Partners, LLC is a commercial real estate investment and management company focused on acquiring and managing value-add investments in the Western United States. Headquartered in Carlsbad, Calif., Tower 16 was founded by principals Mike Farley and Tyler Pruett who have over 40 years of combined institutional real estate experience with an emphasis on value-add investing. The principals currently have a growing multifamily portfolio of $300 million of assets under management.