Tower 16 Acquires Phoenix Multifamily Community for $48 Million

San Diego-based Tower 16 Capital Partners, in collaboration with Raith Capital Partners, has successfully purchased a Build-to-Rent (BTR) property, Sanctuary at South Mountain, in Phoenix for $48 million. The acquisition, a strategic addition to their growing portfolio, marks their 10th investment in the Phoenix area and 13th in Arizona overall. Tower 16 plans to rebrand the asset to Obsidian at South Mountain, continuing their targeted engagement with Western U.S. markets that showcase strong demand fundamentals and limited supply. This recent acquisition highlights Phoenix's appeal, with major corporate influx due to strategic economic advantages over pricier regions, thus indicating promising rent growth. The property, built in 2023, stands out with excellent amenities and proximity to vital arterial routes, further underpinning its investment value. Tower 16, led by industry veterans Mike Farley and Tyler Pruett, together with partners like Raith Capital, focus on maintaining and enhancing asset value through active management and new opportunities across the Southwest. The deal was facilitated by Berkadia, with CBRE assisting in financing.