Tower 16 Capital Finds Value in Off-Market Portfolio

Demand drivers continue to push supply to the limits in Inland Empire but investors are rising to the challenge. In an off-market transaction, San Diego-based Tower 16 Capital Partners recently acquired a two-property multifamily portfolio consisting of 214 units in Colton for $41 million from a private seller.

“The Inland Empire continues to be a strong market for multifamily housing,” said Mike Farley, Tower 16 co-founder. “We believe the demand drivers for multifamily housing will continue to grow in the coming years while new supply will remain very low. It’s likely this imbalance will result in strong rent growth in the submarket for the next several years.”

1333 Reche Canyon Rd. consists of 104 units built in 1986 while the Reche Ridge Apartments located at 2270 Cahuilla St. includes 110 units built in 1985. Both properties are located within minutes of the I-215 and I-10 freeways with close proximity to the Loma Linda medical campus, Loma Linda College and University of Redlands as well as several large distribution centers such as Amazon.

Tower 16 will be overseeing close to $4 million in upgrades and renovations at both properties including unit upgrades, new clubhouses, gyms, updated pool areas and additional outdoor amenities.

“Our renovations will significantly change the look and feel of these properties and the amenities offered to tenants,” said Tower 16 co-founder Tyler Pruett.

Scott Peterson, Bill Chiles and Morgon Fraser of the San Diego CBRE office arranged debt financing on behalf of Tower 16.