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Aerie at Tanque Verde, an 85-unit detached luxury rental community, located at 2495 N Desert Links Drive in Northeast Tucson sold for[mepr-show rules=”58038″] $12.3 million, setting a new record of $145,000 per unit in the 40+ unit multifamily category. In all fairness,  smaller properties have sold for a higher price per unit in the past, and Aerie is not your typical apartment complex, this unique class-A community is a premier single family housing community.

The gated community has free covered parking, Ramada, swimming pool and spa. Unit amenities include granite counter tops, ten foot ceilings, stainless steel kitchen appliances, wood plank vinyl flooring, two-inch horizontal window blinds, and washer and dryer in all the homes. Sophisticated, state-of-the-art floor plans feature a bright, airy atmosphere with large low-E glass windows delivering spectacular mountain views.

The seller, Alta Vista Communities is a joint venture of Karber Holdings (Roger Karber) and Brav Holding Company (Garry Brav) and affiliate of BFL Construction, the contractor for the communities.

The detached homes were built in 2012, after Alta Vista acquired the 6.3 acres of infill property for $1.6 million from the Lewis family that owned it for generations. The community consists of 1, 2 and 3 bedroom single-story rental homes ranging in size from 635 sq. ft. to 1,244 sq. ft., all with private rear yards. Monthly rents range from $819 to $1,195 per month.

The community was reported to be 100% leased at time of sale with some two year lease terms.

Aerie has three other infill rental communities in the Tucson region: Aerie4050 (built 2012) at 4050 W Aerie Drive, Marana, AZ 85741 is now renting with plans to start construction across the street from this project on Aerie Drive. Aerie1000 at 1000 W River Road, Tucson, AZ is under construction for 68-detached homes, and one month away from opening. Aerie Preserve on Orange Grove at 2501 W Orange Grove Rd, Tucson, AZ 85741 is also under construction, with six homes completed at time of publication.

Aerie is also developing in the Phoenix area, at the northeast corner of Alma School and Pecos Road there is a 112-home community, “Aerie at Alma School & Pecos East” is scheduled to open October 2013.

The buyer for Aerie at Tanque Verde is Tanque Verde Holdings, LLC of Santa Barbara, CA (Bart Clemens, Manager) that was coming out of a 1031 exchange and purchased for a hands-free investment.

MEB Management Services of Tucson, with also a Phoenix office, handles the management and leasing for all the Aerie Communities and has been retained by the new owners for Aerie at Tanque Verde.

The transaction was negotiated by Art Wadlund of Hendricks-Berkadia in Tucson for the seller.

Karber can be reached at (520) 977-5456. Brav with BFL can be contacted at (520) 882-4800. Clemens is at (805) 963-0669. Wadlund should be reached at (520) 299-7200. MEB can be contacted at (520) 620-1640 for rental information at any of the Aerie communities.[/mepr-show]

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[ismember]Sale date: 7/2/2013. Sale price $12,300,000 with $3,524,209 down payment and a loan assumption. This was the buyer’s upleg in a 1031 exchange. Exact price per unit: $144,706.

Income: GPI annualized as of May, 2013 was $1,058,734. Rental loss ($144,415), with a total GSI of $914,319. Miscellaneous income was $77,763, total collected income was $992,082. Operating expenses including $200 per unit reserves were $297,823. Property sold with an NOI of $694,259 and at a 5.64% cap rate based on annualized income at time of sale.

The unit mix is 18 (21%) one-bedroom (635 SF),  38 (45%) two-bedrooms/ 2 bath (922 SF) and 29 (34%) three-bedrooms/ 2 bath (1,244 SF). Total buildings size: 82,542 SF on 6.3 acres.

Escrow opened April 15 and closed July 2. Market time was about 60 days.[/ismember]

A new joint venture has been inked between Mark Taylor, Inc. of Scottsdale (Scott Taylor, President) and the Kitchell Development Company of Phoenix (Jeffrey Allen, President) for a new destination retail and luxury apartment complex in Oro Valley. Mark Taylor and Kitchell have partnered in the past for other Phoenix projects, but this is the first for the Tucson area.

The project deemed “San Dorado” will be at 10706 N Oracle Road in Oro Valley, located at the southeast corner of First Ave and Oracle, backing up to La Reserve and Pusch Ridge views on approximately 25 usable acres. On this site, Kitchell will be building a unique, walkable shopping destination on the southerly portion of the property, while Mark Taylor is developing a 275-unit luxury apartment complex to the north.

Chris Brozina, Vice President at Mark Taylor, Inc. said, “We are very pleased to be partnering with Kitchell on another venture. The retail portion of this project will be upscale, like nothing Oro Valley has seen before, with resort-style landscaping and pavers that lead to fountains at the entry. It will be very exclusive with smaller boutiques, and a destination shopping center for the region.”

Kitchell, an employee-owned company, was established in 1950. During the past decade, it has built more than five-million-square-feet of retail space, both as a developer of community and neighborhood shopping centers and as a builder of large regional malls and lifestyle centers.

Mark-Taylor is an award-winning company excelling in apartment development, building, and management. The privately-held Arizona-based company was established in 1990. To date, it has developed more than 15,000 apartment units in Arizona and Nevada where its communities deliver a lifestyle as well as beautifully appointed apartment homes.

As with all of Mark Taylor’s apartment homes, the San Dorado will be a gated community with such luxury amenities as a lagoon pool, gym, granite counter tops, clubhouses and a sand volleyball area. The rental units will have attached garages and be housed in two- and three-story buildings, designed for each unit to take full advantage of the Pusch Ridge views. The unit mix will be one- two-and three-bedrooms ranging in size from 770 sq. ft. to 1,420 sq., ft., and on average, 1,100-square-feet. The Oro Valley complex will be similar in design and floor plans to the recently competed ‘San Capella’ in Tempe.

The whole project has been in the works with the Town for over a year, between rezoning and approvals needed. “Today,” Brozina told us, “we received the grading permit to proceed with the project and if all goes as planned we expect to be preleasing by January 2014, with first building ready for occupancy sometime in May.”

This is not the first development in the area for Mark Taylor. It developed San Ventana Apartments, now called Veranda at Ventana Condominium at 5751 N Kolb Road, at Kolb and Sunrise, back in 1996. Built as rentals, the property was a condominium conversion in 2005.

Brozina says the company will act as its own general contractor on the project and hiring locally for management when complete. The company is also open to more development opportunities in the Tucson region.

Brozina can be reached at (480) 991-9111.

[ismember]Non-arm’s length transfer was 7/10/203 Brozina reported that it has been 18 months working with the Town of Oro Valley to reach permit stage. Mark Taylor acts as its own General Contractor and will manage property itself. Kitchell transferred the 27.82 gross acres of land at a $2 million value ($1.65 PSF) into the joint venture entity, Villas at San Dorado, LLC in a non-arm’s length transaction. [/ismember]

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Tucson – July 3,2013- Lex McGraw of Tucson Cactus & Cattle Company and Tucson Cactus & Cattle Co., Inc. of Vail retired after 25 years operating the McGraw Cantina and Steakhouse at 4110 S Houghton Road in Tucson. The property with business sold to a long-time friend of McGraw, Brian Cummings of Cummings Land & Cattle, LLC of Tucson. The sale price was[mepr-show rules=”58038″]$540,000 ($233.77 PSF) for the 2,310 square foot building on 50,530 square feet (1.16 acres) of land.

Cummings has prior restaurant experience as owner of O’Malley’s on 4th Avenue and bought the property for a change of pace and “a more leisurely environment” he told us. Cummings is still a partner of O’Malley’s and asked that we not publish this transaction until he is ready for the re-opening of the restaurant. It will continue under the same name, McGraw’s Cantina & Steakhouse.

There was $65,000 estimated value of equipment and other personal property recorded in the sale, making a net sale price of $475,000 ($206 PSF). Buyer put $86,000 down and financed the balance with a new loan.

No brokers were involved the buyer and seller were long-time friends.

Cummings is reachable at McGraw’s Cantina & Steakhouse (520) 885-3088.[/mepr-show]