Culver’s at 40 South Broadway Place in Tucson sold in an investment sale to MYXSTOP 4 and Kyrene & Elliot Place LLCs (James Zuckerman, manager) for $2.865 million ($646 PSF). This was the buyer’s upleg in a 1031 exchange.

The 4,436-square-foot building was built in 2011 on 1.02 acres and sold as a triple net investment deal in a sale leaseback agreement.

The property was in Culver’s top five producing locations in Arizona, boasting sales well above the franchise average store sales. It is well located on a hard corner on East Broadway Boulevard and South Prudence Road, in a strong retail corridor anchored by The Home Depot, Kohl’s, Sprouts, La-Z-Boy and PetSmart. The area is densely populated with over 224,000 people within a five-mile radius.

Brian Klancke and Matt Hazelton with Marcus & Millichap in Minneapolis, MN represented the seller MN Broadway Group of Prior Lake, MN (David Greischar, manager).

For more information, Klancke can be contacted at 952.852.9732 and Hazelton is at 925.852.9700.

Login for cap rate and to learn more, see RED Comp #4029.

[mepr-show rules=”58038″]Property sold in a sale leaseback to Culver’s with a 15 year absolute triple net lease rate and an NOI of $192,000 or a 6.7% cap rate.[/mepr-show]

Villa Pacifica Apartment at 4650 E 29^th Street in Tucson was purchased by AWI VP, LLC an affiliate of Sullens & Associates of Scottsdale, AZ (Jordan Fisher, manager) for $5.48 million ($31,136 per unit). Property sold as a value-add transaction.

Built in 1986, Villa Pacifica is 10 buildings on 4.46 acres, all two and three level apartments with a good mix of 176—units in one-, two- and three-bedroom units.  The 112,749-square-feet construction is wood frame and stucco with balconies, Spanish tile pitched roofs and pleasant landscaping and courtyards.  The property has seen improved operating fundamentals in 2015 after management began addressing deferred maintenance issues, cleaned up.

The seller, Villa Pacifica Apartments of Sherman Oaks, a private investor, had owned and operated the property for over 10 years and while being well maintained, the property has not been updated and will benefit from more aggressive management.

Common areas including the club room, leasing office, laundry room, pool area and workout room were clean but dated. Unit interiors also need some moderate upgrades to light fixtures, ceiling fans and other amenities. The efforts to update property will help to raise rents, improve occupancy and improve cash flow. Due in part to the owner addressing some deferred issues in the past six months, the property has seen improved occupancy and net operating income and sold with 85% occupancy.

Located at the intersection of 29th Street and Swan Road, Villa Pacifica is well located in the center of Tucson. Nearby employment centers include Park Place Mall, Car dealerships and retailers along 22nd street and Broadway, Davis Montham Air Force Base, The Williams Center office buildings and more.  Nearby attractions include El Con Mall and Park Place Malls, Reid Park, Randolph Park Golf Course, Reid Park Zoo and University of Arizona Athletic events.  Major shopping centers are located on 22^nd Street one half mile north of the property and along Swan Road.

Bob Kaplan with Marcus & Millichap of Denver represented the seller in the transaction.

For more information, Kaplan should be reached at 520.271.2304.

To learn more, see RED Comp #4038.

The Tucson market has become a particularly attractive area to invest in multifamily including student housing, with a declining vacancy rate, increasing rental rates and significantly higher cap rates on properties than most areas.

The Reeve Family Trust of Los Osos, California (Don Reeve, manager) recently purchased four separate student housing projects with an aggregate of 90-beds and $6.5 million ($72,222 average price per bed) in a bulk purchase.

• four buildings with a 32-bed student housing facility (built 2015) located at 50 N. Mountain Ave. in Tucson, from 10^th Street Rentals, LLC for $2.25 million ($70,313 per bed);

• four buildings with a 22-bed student housing facility (built 2015) located at 1533 E. 12^th in Tucson, from 124 S. Cherry St., LLC for $1.5 million ($68,182 per bed);

• four buildings with a 20-bed student housing facility (built 2014) located at 720 E. Lester St. in Tucson, from 720 E. Lester St., LLC for $1.4 million ($70,000 per bed);

• two buildings with a 16-bed student housing facility (built 1953) located at 1730 N. 1^st in Tucson, from 1730 N. First Ave., LLC for $1.35 million ($84,375 per bed).

The property at 1^st Avenue had formerly been a private pre-school to grade 5 school, known as International School of Tucson, that seller purchased in 2013 for redevelopment.

The seller was various investment groups formed by Jarrett Reidhead, managing member, for all four properties.

Allan Mendelsberg, Investment Specialist with Cushman & Wakefield | PICOR, represented the buyer and Jarrett Reidhead with Tucson Integrity Realty, LLC, represented the seller in these transactions.

For more information, Reidhead can be contacted at 520.331.8050 and Mendelsberg should be reached at 520.546.2721.

To learn more, see RED Comp # 4086, #4087, #4088 and #4089.