Tower 16 acquires Nottinghill Apartments in Tucson for $35.5M
Tower 16 Capital Partners has acquired Nottinghill Apartments, a 322-unit multifamily property in Tucson, AZ in an off-market transaction for $35.5 million.
Nottinghill is Tower 16’s third investment in Tucson since entering the market in late 2020. The San Diego-based multifamily investment firm has identified Tucson as one of its primary target markets and with the acquisition of Nottinghill, Tower 16 is now halfway to its goal of building a local portfolio of 1,500 units by the end of 2023.
Nottinghill Apartments is located at 2660 N Alvernon Way in Tucson, Arizona. The property includes a leasing office, clubhouse, and four pools. The property is located at the intersection of E. Flower Street and N. Alvernon Way near the Tucson Medical Center and within minutes of the I-10 freeway, Downtown Tucson and the University of Arizona campus.
Tower 16 will be overseeing more than $8 million in upgrades and renovations at the property including modernized unit upgrades, exterior and common area improvements and landscaping enhancements. In addition to updating the pool area, Tower 16 also will be adding outdoor amenities including, barbeques, seating and gaming areas.
“The property was owned and self-managed by the seller for nearly 20 years and is almost entirely in classic condition, leaving us with significant opportunity for renovations,” said Tower 16 Co-Founder Tyler Pruett. “We believe we can significantly improve the quality of the residential experience at Nottinghill and continue to play a role in the transformation of the Oak Flower neighborhood, which began with our acquisition of La Mirada apartments.”
Since its founding in 2017, Tower 16 has made similar moves in markets throughout the West, having acquired over 6,500 units in California, Las Vegas, Phoenix, Albuquerque and Denver. The company seeks markets with increasing demand for workforce housing driven by job growth and in-migration but with relatively low levels of new supply.
Tower 16 was represented by Brett Polachek and Chris Canter of Newmark Knight Frank’s Phoenix office. Way Capital helped secure debt financing for Tower 16, led by Malcolm Davies, Zack Streit, Drew Sandler, and Alex Rossinsky.