T
ides Equities is shifting its focus from value-add properties to Class-A multifamily investments in the Sun Belt, seeking fresh opportunities after some of its existing assets have gone under. Principals Sean Kia and Ryan Andrade reported a steady stream of deals, with dozens being considered each month. However, one potential acquisition hit a snag when Tides' equity partner unexpectedly backed out, complicating financing for Ascend at Black Canyon, a Phoenix-area new development priced at $76 million.

    Tides had initially sought a 60% loan-to-cost mortgage but later increased its leverage to 85%, including a 15% preferred equity stake. Without the partner's commitment, the deal fell through. Andrade attributed the issue to the co-investor's inability to secure liquidity in time for the closing date, not Tides' reputation.

    The firm's track record has been marred by foreclosures and losses of investor capital, but Andrade insisted that this was due to external factors such as rising rates and high leverage debt. He emphasized that Tides is willing to invest its own equity into struggling deals and that assets with institutional JV partners are more likely to survive market turbulence.

    Tides still views the Ascend project favorably and may attempt to acquire it in the future. The firm is currently scoping other Class-A deals in Phoenix, Texas, and Nevada, being selective in its approach. Meanwhile, Tides is selling off some of its distressed assets, including a 582-unit complex in Arizona that was sold for a 30% premium over its original purchase price.