TUCSON, AZ (March 27, 2024) — Allan Mendelsberg and Joey Martinez, Principals and Multifamily Specialists with Cushman & Wakefield | PICOR, represented the parties in multifamily transactions totaling $15 million.

Mendelsberg and Martinez wrote in their Marketbeat Report: “In 2024, Tucson’s MSA is set to harden its status as a robust market, sustained by limited inventory and rising demand. The evolving lending landscape, characterized by progressively lower interest rates, is expected to provide increased activity, countering the slowdown experienced in 2023. We expect investors sidelined in 2023 to be “Pencils Up” this year and actively pursuing opportunities in the Tucson market. The institutional-sized properties are expected to remain slow on a volume basis as the market adapts to adjusted cap rates and valuations. Discussions surrounding the 2024 presidential election are expected to enter real estate conversations, introducing an additional layer of unknown to the market’s evolving landscape.”

Those predictions appear to be coming to fruition, with Multifamily fundamentals doing great in Tucson!

As reported last month, The Wasko Modern Apartments sold for $6.07 million ($159,737 per unit) for 38 units, and the Riverside Suites with 33 units sold for $5.15 million ($156,064 per unit).

On March 14th, The Twenty Lofts on Tenth, LLC purchased the Alamo Apartments, a 11,189-square-foot investment property at 824 E. 10th St. in Tucson. The 20-unit property was purchased from Euclid 35 LLC for $2 million ($100,000 per unit).

The property is in the Central Tucson submarket, with studios and one-bedroom units near the UA Campus. Amenities include laundry facilities, laundry service, courtyard, grill, picnic area, and bicycle storage. Unit amenities are air conditioning, heating, ceiling fans, tub & shower, dishwasher, stainless steel appliances, vinyl flooring, and window coverings.

On March 6^th, Mosaic LLC purchased Zona Apartments, an 18,733-square-foot investment property at 305-315 N. Highland Ave. in Tucson. The 7-unit apartment property was purchased from the 2017 Gutierrez Family Trust for $950,000 ($135,714 per unit). Built in 1949, the property is located in the Central Tucson submarket it is also student housing near the UA Campus in the Rincon Heights neighborhood.

Then, in a more recent transaction, on March 25th, Stone Casitas, with 7 units and a commercial warehouse at 10 West Rillito and 2201 N Stone Avenue, sold for $820,000 ($102,500 per unit). The property was a value-add opportunity with below-market rates and sold with ten offers during a 2-week marketing process.

For more information, Mendelsberg should be reached at 520.546.2721, and Martinez is at 520.546.2730.

To learn more, see RED Comps #11190 and #11176.

TUCSON, AZ (March 26, 2024) – The two-story, multi-tenant office building at 2030 E Broadway Blvd. sold for redevelopment at $2.499 million ($103 PSF). It is located southeast of Campbell Avene and Broadway Blvd. at the southwest hard corner of Olsen Ave and Broadway.

The buyer, an affiliate of Central Barrio Development, Hector Jimenez, manager reported that the property was purchased to reposition for a mixed residential/retail use and estimates approximately 20 residential units to be developed.

Built in 1948, the property is fully solar-powered by roof panels and consists of two buildings with 24,358 square feet, a courtyard, and 60 parking spaces.

The seller was 2030 Broadway Capital Partners, LLP, Benjamin Riehle, manager, who was represented in the transaction by Chris Itule of DSW Commercial Real Estate in Tucson. The buyer was self-represented.

For more information, Itule should be reached at 520.548.4321.

To learn more, see RED Comp #11144.

TUCSON, AZ (March 22, 2024) – The Parker Tucson at 947 N Park Avenue, a luxury student housing complex with 130 units / 482 beds in 213,400 square feet living space in an 8-story LEED Silver Certified community.

The Parker Tucson sold for $132.5 million ($1.02 million per unit and $621 PSF), setting a new record sale price of over $1 million per unit and $274,896 per bed.

The transaction date was March 14, 2024.

The unit mix consists of 13 studio units (431 SF), 26 two-bedroom units (867 SF), six three-bedroom units (1,238 SF), 46 four-bedroom units (1,597 SF), 19 five-bedroom units (1,790 SF) and 20 six-bedroom units (2,205 SF). The property was 99% occupied at the time of sale.

Amenities include Private and group study rooms, an outdoor resident courtyard with a fire pit, lounge seating, and games; a social lounge with kitchen, TVs, games, and plenty of seating; a rooftop deck with a hot tub and a large pool with in-pool chaise lounge seating; poolside cabanas; large outdoor TVs; fully-equipped outdoor kitchen; yoga studio, and an on-site Chase Bank branch.  There is also a package locker system for deliveries, a gated resident parking garage, and a large fitness center. The ground floor is retail

Apartment amenities include gray wood-style flooring, a modern furniture package, valet trash service, a full-size in-unit washer and dryer, electronic key card access, Whirlpool stainless steel appliances in select units, wood cabinets, TVs included in the living room, memory foam mattresses, Walk-in closets in select units, expansive kitchen islands in select units, granite countertops, and 2-story townhouse units.

Chicago-based Sterling University Housing was the developer and acquired the land in 2019 from the adjoining Chase Bank at the southwest corner of Park Ave. and First Street. Sterling University paid $16.675 million ($470 PSF) for the land.

Jeff Casper with CBRE (Tucson), Jaclyn Fitts, Wiliam Vonderfecht, and Casey Schaefer with the CBRE Student Housing Team in Dallas represented the seller, Sterling University.

The buyer is an affiliate of Inland Prime Capital of Oak Brook, IL, and was self-represented.

For more information, Casper can be reached at 520.323.5181.

To learn more, see RED Comp #11189.