Tower 16 Capital Partners has entered the Albuquerque, New Mexico, market with the acquisition of a four-property multifamily portfolio with 572 units. The portfolio was purchased from Greenwater Investments for an undisclosed price.
Based on the market’s fundamentals, the San Diego-based real estate investment and management company plans to acquire a portfolio of 1,500 units in the next 18 months.
“We’re very excited about the acquisition of these four properties. The project represents our first investment in Albuquerque, which we believe is poised for future rent growth due to the strong demand for workforce housing,” said co-founder Mike Farley. “We believe the city will continue to see strong job growth and in-migration of people from more expensive coastal markets seeking the high quality of life that Albuquerque offers.”
Villas del Sol I and Casa Bella, both on Western Skies Drive, will be combined into one 288-unit community, including two pools, a playground, barbecue areas, and state-of-the-art fitness centers. Just 1 mile north is the 124-unit Villas del Sol II, which includes similar amenities. The fourth property, the 160-unit Villas del Sol III, is located to the northeast with convenient access to I-25.
Tower 16 will oversee approximately $13 million in upgrades and renovations at the four properties, including modernizing units, adding new clubhouses and fitness centers, and updating pool areas. It also plans to add outdoor amenities, including barbecues, seating, games, and a sports court.
“We look forward to physically transforming the projects to improve the resident experience for our tenants, and our hope is that this portfolio will be the first of many successful investments in the Albuquerque market,” said co-founder Tyler Pruett.
Berkadia’s Art Wadlund, Clint Wadlund, and Bill Fox represented both the buyer and the seller in the transaction. Berkadia’s Clay Akiwenzie coordinated debt financing for the buyer.
