LA Multifamily Investor Attracts Financing Partner to Phoenix Market

Article originally posted on Phoenix Business Journal on June 29, 2020

Los Angeles-based Tides Equities LLC — which has been buying up multifamily apartments in the Valley during the past few years — has brought a new equity partner to the mix.

Tides Equities teamed with Chevy Chase, Maryland-based FCP to buy the Tides at South Tempe for $71.5 million.

FCP replaced Tides’ former equity partner, Cap Sol, said Sean Kia, co-founder and principal of Tides Equities.

In October 2018, the joint venture between Tides and Cap Sol paid $55.5 million for the 442-unit apartment community and renamed it Tides at South Tempe.

“We partnered with a group called Cap Sol on the East Coast and they got out because they hit their minimum return threshold, so they were happy to take their win for them and their investors,” Kia said.

During the past two years, Tides has invested about $3 million in renovations, with plans to invest another $5 million, Kia said.

The property at 4130 S. Mill Ave. is 95% occupied. It is among more than 5,000 units on 20 properties in the Valley Tides owns, Kia said.

Now Tides and FCP created a new joint venture to buy the apartments from the previous joint venture, said Bart Hurlbut, vice president of multifamily acquisitions for FCP.

“We have come in and partnered with Tides to recapitlize that partnership,” he said. “Tides is staying in as the operating partner and continuing with the plan to renovate units and select common areas of the property.”

Hurlbut said he’s been impressed with the Tides team so far.

“We’re excited to get a deal done with them,” Hurlbut said. “We hope it will be a fruitful partnership. We are open to working together in the future, absolutely.”

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The Tides at South Tempe apartment complex has changed hands.