Dominium, a Minneapolis-based company, purchased Sahuarita Mission Apartments at 1091 Beta Street in Sahuarita, AZ, southwest of Tucson, for $2.08 million ($40,000 per unit). The seller, Sahuarita Ridge Apartments of Chandler, an affiliate of the Arizona Community Action Program, developed the affordable housing program project.
The program regulations are under Section 42 of the Internal Revenue Code that encourages developers to build affordable housing to meet the needs of the community in exchange for receiving Housing Tax Credits. Property owners must keep the units affordable for a specified number of years, with affordable rents defined and calculated based on Median Household Income figures published annually by the U.S. Department of Housing and Urban Development (HUD).
The 52-unit apartment complex offers large two- and three-bedroom floorplans, built in 2000, on 2.88 acres. Common amenities include a playground and picnic and BBQ area.
The new owner, Dominium is a developer and manager of multi-family properties nationwide, based in Minnesota. With more than 21,000 owned and/or managed units at 197 sites in 19 states. The company has received numerous awards from Affordable Housing Finance Magazine, awarded for its activity in the affordable housing industry as well as portfolio expansion.
Mark Laverty of Dominium said, “This is our first addition in the Tucson area to our portfolio, but we view it as a strong, recovering market that represents good value.” Dominium will handle the property management and leasing out of their regional office in Phoenix, and hire on-site managers and maintenance personnel. In Arizona, the company owns with this acquisition, 392-units at four properties located in Phoenix, Show Low and now Sahuarita, Arizona.
The community is close to shopping, schools and restaurants. Sahuarita Mission has a Walk Score of 52 out of 100 which means some amenities are within walking distance. The most walkable coffee shop is Starbucks. Restaurants nearby include Coach’s All American Bar & Grill, Domino’s Pizza, Dairy Queen Brazier, Arby’s, Manuel’s Restaurant, Burger King®, Papa Murphy’s Take ‘n’ Bake, and Jerry Bobs Restaurant. Nearby schools include Shepherd’s Fold Preschool and Day Care.
There were no brokers involved in the transaction, the seller and investor were self-represented in the transaction.
Laverty can be contacted at (763) 354-5632. The Community Action Program can be reached at (480) 963-4321.
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