Tower 16 Capital Partners Expands with Yardly McDowell Acquisition
Deal News | Jan 08, 2025 | EIN
Tower 16 Capital Partners, a San Diego-based commercial real estate investment firm, has expanded its portfolio by acquiring Yardly McDowell, a 167-unit Build-to-Rent (BTR) multifamily property in Phoenix, Arizona for $46.5 million. This acquisition marks the firm's ninth project in Phoenix and twelfth in Arizona, highlighting their commitment to strategic expansion in high-growth markets. Co-Founder Tyler Pruett emphasizes Phoenix's potential for strong rent growth, driven by corporate expansion and job creation. The property offers attractive amenities such as a swimming pool and fitness center, positioned to meet rising rental demands. Tower 16 plans to enhance the community further with investments in shared spaces, bringing Cushman & Wakefield on board for property management. This acquisition is part of Tower 16’s strategic focus on markets with significant rental growth potential, characterized by employment growth and housing supply-demand dynamics.
Sectors
- Real Estate Investment
- Construction & Development
Geography
- United States – The article focuses on Tower 16’s activities within the Southwest, particularly Phoenix, Arizona.
- Arizona – The primary activity centers around Tower 16's acquisition in Phoenix, Arizona.
Industry
- Real Estate Investment – The article discusses Tower 16's acquisition of a Build-to-Rent multifamily property, falling under commercial real estate investment activities.
- Construction & Development – The acquisition involves a new-construction multifamily property, relevant to ongoing discussions in construction and development sectors.
Financials
- $46.5 million – The acquisition price for Yardly McDowell by Tower 16 Capital Partners.
- 7,400 units – Total units acquired by Tower 16 since its founding.
- $1.2 billion – Value of assets under management by Tower 16.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Tower 16 Capital Partners LLC | Buyer/Acquirer | Company | An investment and management firm focused on real estate in the Western US. |
| Yardly McDowell | Target Company | Company | A 167-unit Build-to-Rent multifamily property located in Phoenix, AZ. |
| Northmarq | Seller's representative and debt financing | Company | Northmarq represented the seller in the transaction and assisted in securing financing. |
| Cushman & Wakefield | Property Manager | Company | The third-party property manager assigned to manage Yardly McDowell. |
| Tyler Pruett | Co-Founder of Tower 16 | Person | Co-Founder and principal of Tower 16 Capital Partners. |
| Mike Farley | Co-Founder of Tower 16 | Person | Co-Founder and principal of Tower 16 Capital Partners. |