Tower 16 Capital Partners Makes Strategic Entry into Reno with $43M Acquisition of The Deco at Victorian Square

In a striking move that further cements its presence in the Western growth markets, Tower 16 Capital Partners has announced the acquisition of The Deco at Victorian Square, the San Diego-based company’s first foray into the Reno, Nevada, multifamily property sphere. Excellently positioned within a vigorous market, The Deco, comprised of 209 units, was secured for an impressive $43 million—a figure notably beneath the current replacement cost. Constructed just a year prior, in 2021, the property not only represents a strategic venture but also epitomizes Tower 16’s commitment to arresting high-quality real estate at substantial value.

“We’re pursuing opportunities in Western growth markets to acquire high-quality real estate at a steep discount to replacement cost and prior-peak pricing,” Tyler Pruett, co-founder of Tower 16, stated with assured confidence. Pruett’s remark lends insight into the firm’s calculated approach towards expansion and investment, highlighting its strength in recognizing the long-term benefits of strategic market entry.

Notably, The Deco distinguishes itself with its prime location at 955 Avenue of the Oaks in the sought-after Victorian Square neighborhood of Sparks, just a stone’s throw from Reno. This 10-story, podium-style community flaunts an array of living options, from studios to two-bedroom apartments, averaging a generous 731 square feet. Proximity to major infrastructure—like the I-80 freeway, the Tahoe Reno Industrial Center, and a range of healthcare facilities—not to mention an abundance of outdoor lifestyle amenities, fortifies The Deco’s position as a highly desirable residential choice.

The property’s remarkable 97% occupancy during escrow, testimonial to the superior management by FPI Management in the leasing phase, only solidifies Tower 16’s veneration of their acquisition. Mike Farley, another co-founder, acknowledged the stellar performance of The Deco, underpinning the commitment to elevate tenant experiences further.

And it doesn’t stop there. Tower 16 intends to inject nearly $1 million into enhancing The Deco, specifically upgrading the common areas, fitness center, and landscaping, while also augmenting outdoor amenities to foster community and leisure.

This acquisition is aligned with Tower 16’s broader strategy witnessed across the Western U.S., where it has accumulated nearly 7,000 units, reflecting an asset worth over $1 billion—focusing on markets with robust rental housing fundamentals. The insightfulness is echoed by Dave McClain, Tower 16’s Director of Acquisitions, who hailed this transaction as the opportune “right re-entry point” into the Reno market, lauding the collaboration with Eastdil in navigating a “turbulent capital-raising environment.”

At Multifamily Leadership, we recognize the potential this acquisition promises for the multifamily apartment industry. Tower 16’s endeavor showcases a judicious blend of strategic asset selection and innovative vision, underlining the ever-growing importance of adaptable and savant investments in the evolving landscape of multifamily real estate.