ENCINITAS — An Encinitas-based commercial real estate agency has acquired a $43 million upscale high-rise apartment building in Nevada, the agency announced.
Tower 16 Capital Partners, a commercial real estate investment and management company headquartered in Encinitas, has acquired The Deco at Victorian Square Apartments in the Sparks neighborhood of Reno.
Located at 955 Avenue in Victorian Square in downtown Sparks, just off the Interstate 80 freeway and close to the Tahoe-Reno Industrial Center, the complex is a 10-story multi-family building with 209 apartment units. The building features luxury penthouses on the 10th floor with 11.5-foot ceilings and floor-to-ceiling windows.
“This marks our first acquisition in the Reno market and brings us back into Nevada, where we previously owned a portfolio of 2,000 units,” Tower 16 Capital Partners co-founder Tyler Pruett said.
Since 2017, Tower 16 has made similar moves in markets throughout the West, acquiring nearly 7,000 units worth over $1 billion in Southern California, Las Vegas, Phoenix, Tucson, Albuquerque, and Denver.
“We are eager to build on the momentum here and continue targeting other recently developed multi-family communities,” said Tower 16 co-founder Mike Farley.
The company seeks markets that exhibit strong rental housing fundamentals, including employment growth, in-migration and a limited new supply of housing, according to Tower 16.
“The Deco has performed very well, and FPI Management has done a phenomenal job managing the final stages of lease-up, getting the property up to 97% occupancy during escrow. The property is extremely well built, and we plan to take it to the next level by improving critical tour path amenities and enhancing the overall tenant experience,” Farley added.
Tower 16 will also oversee nearly $1 million in upgrades, including modernized common areas, fitness center upgrades, and landscaping enhancements. The company will also add outdoor amenities, including barbeques, seating, and game areas.
In the transaction, Jonathan Merhaut of Eastdil Secured represented the seller, Silverwing Development. Eastdil Secured, led by Lee Redmond and Greg Stampley, helped secure debt financing for the buyer.
“We have been patiently waiting for the right re-entry point in the market and are extremely grateful to Eastdil for the opportunity to acquire the property and appreciate their assistance securing debt financing during a turbulent capital markets environment,” Tower 16 Director of Acquisitions Dave McClain said. “The Tower 16 team is eager to execute the business plan with our excellent investment partner and lender.”
