A Tale Of Two Multi-Family Properties On Geronmino

Two apartment properties on Geronimo Avenue sold within one day of each other recently; they were located within two blocks of each other, but sold for dramatically different prices. The two sales when viewed side-by-side demonstrate the buyers’ individual preferences, only time will tell which was the better investment.

The first property, at 3022 N Geronimo Avenue, is a 10-unit building, built in 2005, that sold for $530,000 ($53,000 per unit) with 7,791 sq. ft. on a 30,492 sq. ft. lot. The seller, DCS 33, LLC of San Diego (David Canterman, principal) sold the property fully leased, with new roof, new stucco, and with no deferred maintenance. The buyer, SJK Geronimo, LLC (Sandra J Knight, trustee) was looking for an investment property without deferred maintenance and a cap rate around 8%.

Canterman says he did not want to sell the property, but was attracted to the idea of paying off the loans on all his other Tucson properties from the sale, after buyer’s agent, Allen Mendelsberg approached him with an offer. Mendelsberg of Cushman & Wakefield / Picor Commercial Real Estate in Tucson handled the transaction for both buyer and seller.

Canterman, a private lender, says he’s looking for more investment opportunities in Tucson.

Referring to his property manager, Jacklyn Malott of Keller Williams in Tucson, Canterman had this to say, “Jackie taught me not to be a ‘slumlord’ and to keep my tenants happy by maintaining the property; when the landlord does his part, the tenants do theirs and are much more likely to get their rent checks in on time.”

Malott has been retained for management services of the property by the new owner.

The second property, only two blocks away, at 3245-3261 N Geronimo Avenue is a 12-unit apartment that sold for $176,000 ($14,666 per unit) in an REO sale. The lender, City National Bank, sold the property to Mark A. Wilson of Saratoga Springs, UT in an all- cash deal. It was fenced off and boarded up at time of sale. The 8,485 sq. ft. in three buildings sits on 1.06 acres and was returned to the lender in March, 2011, and remained vacant for those two years.

Jeff Sherman of Colliers International in Phoenix represented the lender and investor in the transaction. According to Sherman, the property was sold for rehab and estimated the cost to cure as approximately $7-$9,000 per unit. The buyer has relatives in Tucson that will handle the rehab for him.

This concludes the tale of these two multi-family properties, different investment strategies for different folks, both found within blocks of one another on the same street in Tucson, AZ and selling just one day apart.

Canterman can be reached for more information at (858) 720-0229. Malott is at (520) 977-0145. Mendelsberg should be contacted at (520) 546-2721 and Sherman at (602) 222-5109.