$37M in REO Multifamily Portfolio Closes in Central Tucson

REO Multifamily
Equinox on Prince and Metro Tucson Apartments

TUCSON, AZ (Feb. 13, 2026) — Two REO-related multifamily transactions closed Feb. 6, 2026, in Central Tucson for a combined $37,000,000, reflecting lender-controlled dispositions following foreclosure.

Metro Tucson Apartments, a 232-unit community at 3985 N. Stone Ave., sold for $24,050,000 ($103,663 per unit) in an REO sale. The property totals 128,690 square feet on 6.85 acres and was built in 1984. The sellers were N Stone Ave LLC and Ashbran Properties LLC, c/o Vertical Street Ventures (Scottsdale). The buyer was Metro Tucson Apartments LLC, c/o DGE Investments, LLC (San Francisco).

Equinox on Prince, a 114-unit property at 1625 E. Prince Rd./3699 N. Cherry Ave., sold for $12,950,000 ($113,596 per unit) in an REO sale. The property totals 72,987 square feet on 4.72 acres and was built in 1964. The seller was 1625 E Prince, LLC, c/o Vertical Street Ventures (Scottsdale). The buyer was Equinox Prince Apartments LLC, also c/o DGE Investments, LLC (San Francisco).

The circumstances behind the REO actions were not disclosed, and there was no broker representation. However, both properties last traded in 2022, and many deals completed between 2020 and 2022 were financed with bridge loans—often at floating interest rates. When rates surged, debt service rose sharply, in some cases nearly doubling, while property income did not increase fast enough to offset the change, which can quickly push cash flow negative. Now that low-rate loans are maturing, even stable properties can struggle to refinance: today’s terms typically support smaller loan proceeds unless net operating income has grown substantially. In many cases, owners must contribute new equity to close the gap, something not all borrowers can afford or are willing to do.

Multifamily trades frequently, uses more leverage, and is widely held by syndicators, so it’s more exposed to debt markets and refinancing cycles. Also, big portfolios financed with similar structures can tip all at once.

Source: RED Comp #12333 and #12334.