San Diego-based Tower 16 Capital Partners, in a strategic alliance with Raith Capital Partners, has broadened its investment portfolio in the thriving Phoenix market with the acquisition of Ascend on Glendale, a 216-unit multifamily property. This Class-A community, now rebranded as “Obsidian on Glendale,” is strategically located near Glendale, Arizona’s rapidly expanding Westgate Entertainment District. This acquisition marks a significant move for both firms, underlining their confidence in the Phoenix real estate market and their commitment to investing in high-quality assets in key growth areas.
Aerial view of Ascend on Glendale multifamily property showcasing modern architecture and landscaping
This acquisition signifies Tower 16 Capital Partners’ eighth venture in the Phoenix market and eleventh in Arizona, highlighting their deep understanding and bullish outlook on the region. Mike Farley, Co-Founder of Tower 16, emphasized the compelling market dynamics: “We have been closely monitoring the Phoenix market’s supply-demand balance and have observed exceptionally strong demand in recent quarters. The area’s appeal is fueled by corporate investments, expansions, and relocations from pricier markets. With new construction slowing, we anticipate robust rent growth in the coming years. Our strategy is to capitalize on Western growth markets, acquiring premium real estate at substantial discounts.” This strategic acquisition, bolstered by the partnership with Raith Capital Partners, perfectly aligns with this vision.
Raith Capital Partners Principal, Sahil Amin, elaborated on the synergy of this partnership: “We are thrilled to collaborate with Tower 16 on this acquisition. The foundational partners of our firms share a strong history, and we are excited to embark on this new venture together. This purchase allows us to leverage the opportunity to acquire a top-tier asset in a rapidly growing market at a highly favorable basis.” The partnership with Raith Capital Partners brings additional financial strength and strategic insight to the deal, enhancing the potential for value creation at Obsidian on Glendale.
Since its inception in 2017, Tower 16 Capital Partners has been actively expanding its footprint in high-growth Western markets, amassing a portfolio of 7,200 units across Southern California, Las Vegas, Phoenix, Tucson, Albuquerque, and Denver. The firm strategically targets markets with strong rental housing fundamentals, including job growth, in-migration trends, and constrained new supply relative to household formation. The collaboration with Raith Capital Partners on the Ascend on Glendale acquisition is a testament to this focused strategy and their ability to identify and capitalize on prime investment opportunities.
Ascend on Glendale, now Obsidian on Glendale, occupies a prominent corner location at Glendale Avenue and 75th Avenue, placing it at the heart of the Westgate Entertainment District. This Class-A, garden-style community features two-story buildings and offers a mix of spacious 1-, 2-, and 3-bedroom apartments, averaging 921 square feet. Residents enjoy an array of resort-style amenities, including a sparkling pool, a state-of-the-art fitness center, and a spacious clubhouse. Its prime location provides convenient access to popular shopping and dining destinations, major employers, and key transportation arteries like Loop 101 and I-17 freeways.
Tyler Pruett, Co-Founder of Tower 16, acknowledged the property’s strong initial performance: “The property has demonstrated exceptional lease-up performance, and we are eager to build upon the foundation established by the Cushman & Wakefield property management team. The low-density site plan, expansive floor plans with oversized balconies, and superior construction quality are key differentiators. We are excited to further elevate the community through strategic investments in common area amenities, landscaping, and technology.” Raith Capital Partners and Tower 16 are jointly committed to enhancing the resident experience through these substantial upgrades.
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The planned enhancements at Obsidian on Glendale, overseen by both Tower 16 and Raith Capital Partners, include modernized FF&E, technology upgrades, and refined landscaping, all aimed at enriching the living experience for residents and increasing the property’s appeal in the competitive Phoenix market.
Dave McClain, Director of Acquisitions at Tower 16, highlighted the strategic importance of new construction acquisitions: “We are pleased to close on another new-construction multifamily acquisition this year, a high-conviction strategy for us. We have dedicated significant time to the Phoenix market and appreciate the seller and Cushman & Wakefield’s trust in us for this significant opportunity. The transaction was exceptionally smooth, and we look forward to future collaborations with the entire team.”
The transaction was facilitated by David Fogler and Steven Nicoluzakis of Cushman & Wakefield, who represented the seller. Cushman & Wakefield also secured debt financing for the buyer, with Brian Share and Craig Branton leading the effort. This successful acquisition of Ascend on Glendale by Tower 16 Capital Partners and Raith Capital Partners underscores their strategic approach to real estate investment and their confidence in the continued growth of the Phoenix multifamily market.
