Tower 16 Capital Partners has acquired its seventh multifamily community in California’s Inland Empire. The San Diego-based firm purchased the 330-unit Sorelle Apartments in Moreno Valley for $85 million from a private seller in an off-market transaction.
“This acquisition marks our seventh property acquired in the Inland Empire market and brings our current portfolio in the Inland Empire to over 1,000 units,” said Tower 16 co-founder Tyler Pruett. “We are continuing to expand our presence in the Inland Empire market given the strong employment growth and attractive supply-demand imbalance coming out of the pandemic.”
Rent growth has been strong in the Inland Empire, seeing a 17.5% year-over-year increase in August, according to Yardi Matrix. According to Tower 16, it is well on its way to its goal of acquiring 2,000 units in the Inland Empire over the next couple of years.
Built in 1986, Sorelle Apartments includes a leasing office, a fitness center, a playground, and two pools. Tower 16, which is focused on acquiring and managing value-add investments throughout the West, will oversee nearly $5 million in upgrades and renovations at the property, including modernized unit upgrades, exterior common areas, and landscaping enhancements. The company also plans to add outdoor amenities, including updated pool areas, barbecues, seating, and outdoor gaming areas.
“The property offers significant renovation opportunity, and we look forward to physically transforming the project to improve the resident experience for our tenants,” said Tower 16 co-founder Mike Farley.
Tower 16 was represented by Ed Rosen of Berkadia’s San Diego office. Led by Bryan Mummaw and Bryan Liu, NorthMarq helped secure the debt financing for the buyer.
Since its founding in 2017, Tower 16 has acquired more than 5,500 units in California, Denver, Las Vegas, Phoenix, and Tucson.
