Nitya Capital has scooped up the 274-unit Tides on McDowell apartment complex on Phoenix’s Westside for $41 million in an off-market deal, assuming the existing financing as part of the purchase. The transaction covers 27 two-story buildings at 4620 W. McDowell Rd.
Deal details
The community, built in 1985, sits on roughly 13.06 acres and offers studio, one-bedroom and two-bedroom floor plans, with a mix of renovated, partially upgraded and classic units, as reported by Connect CRE. Amenities include a swimming pool, soccer field, playground, fitness center, clubhouse, laundry facilities and gated access. The complex is about six miles west of downtown Phoenix, with convenient access to Interstate 10.
Buyer’s plan and financing
According to Nitya Capital, the firm acquired the asset at roughly $150,000 per unit and is planning a modest value-add program of about $700,000 in total to complete upgrades that already exist on roughly 130 of the 274 units. The deal structure includes seller financing along with an assumption of the current loan, a combination Nitya says removes floating-rate bridge risk. The firm projects that the finished renovations will support a rent premium in line with what the already upgraded units are achieving today.
Brokers and the seller
Northmarq brokers Jesse Hudson, Logan Baca and Chris Michl represented Tide Equities in the sale, according to Connect CRE. Northmarq lists all three advisers on its Phoenix investment-sales team, and Tides Equities still shows Tides on McDowell among its Arizona holdings. The deal hands off a property that Tides had operated in the Phoenix market for several years.
Why buyers were interested
Nitya has marketed the acquisition as an off-market opportunity purchased at roughly a 31% discount to the prior owner’s basis after a default, with upside tied to finishing the renovation program and maintaining stable occupancy, per the firm’s offering materials. The business plan projects that the remaining work can close a rent gap and improve net operating income over a three-year hold, a thesis Nitya has pitched to prospective investors on its deal page. That mix of pricing, financing structure and a partially proven renovation play is the rationale Nitya points to for stepping in now.
The sale highlights that investors are still hunting for discounted, value-add multifamily deals in Phoenix, even as capital markets remain cautious. For residents at Tides on McDowell, the immediate change will be a new owner as Nitya phases in the remaining upgrades it says are expected to lift rents modestly over time.
