Tucson apartment sales were persistent through May with over $110 million in aggregate sales represented in 2,543 units transferring in 32 transactions. Cap rates trended lower this month again and are hovering at 5% average on the thirteen 40+ unit apartments and higher at around 8% average on the nineteen smaller apartment units.

Tucson-based, Holualoa Companies sold Arcadia Park Apartments at 250 North Arcadia Avenue in Tucson for $17.53 million ($60,850 per unit). The 288-unit apartment complex is located in the eastside submarket of Tucson comprised of 15 two-story buildings and a clubhouse/leasing office, with approximately 224,000-square-feet under roof on 11.49 acres. The complex was 95 percent occupied at time of sale with a one- and two-bedroom unit mix.

The property had recently been updated with new balcony/patio fencing, paint and pool area improvements. Amenities include cable ready units, walk-in closets, extra storage, ceiling fans and vertical blinds. The all electric kitchens have pantries and are fully equipped with range/stove dishwasher, garbage disposal and frost free refrigerator.

Community amenities include lush, park-like mature landscaping with picnic areas, assigned covered parking, clubhouse, laundry facilities, on-site management, seasonally-heated pool and spa; all located near Davis Monthan Air Force Base, AOL, Pima Community College, Tucson College, shopping, dining and services.

The investor was APA228 Partners, LLC of Tucson (Edward Hansen, managing member) was represented by Michael Sandahl, Tyler Anderson, and Sean Cunningham with CBRE in Tucson and Phoenix who also represented the seller in the transaction.

To learn more Sandahl should be reached in the Tucson office at 520.323.5115; Anderson is at 602.735.5557 with Cunningham at 602.735.1740 in the CBRE Phoenix office.

For additional information log in and refer to RED Comp #2956.

In a separate multifamily transaction that closed the same day, The Place at Tierra Rica Apartments I & II, at 3201-3225 West Ina Road in Tucson, sold to an affiliate of Aspen Square Management of West Springfield, MA (Harold Grinspoon, CEO) for $14.25 million ($49,479 per unit).

The 288-units are split between two sister communities with separate addresses on 11.32 acres in the northwest submarket of Tucson. The property consists of 13 two-story buildings and a clubhouse / leasing office, with approximately 207,360-square-feet under roof. The unit mix consists of one- two- and three-bedroom units that were 85 percent occupied when it sold.

Property amenities include three pools, two spas, covered parking, picnic areas with mature landscaping, fully-equipped all electric kitchens, and patios / balconies.

Art and Clint Wadlund with Berkadia Real Estate Advisors in Tucson represented the sellers Tierra Rica Properties LLC and West Ina Road Properties LLC of Tucson (Nolan Rosall, member).

To learn more Art Wadlund should contacted at 520.299.7200 and Clint Wadlund is at 520.529.9206.

For additional information log in to reference RED Comp #2957.

Carbon Cabo LLC of Huntington Beach, CA purchased the Coronado Apartments located at 402 E 9^th Street in Tucson, from Coronado Apts. LLC of Tucson (Ken Silverman, manager) for $1.4 million ($33,333 per unit). The 42-unit property consists of an approximately 15,768-square-feet apartment building on an approximately 6,519-square-foot lot in the Central Tucson submarket. George H Amos III of Tucson Realty & Trust in Tucson represented the investor in this all cash transaction and seller was self-represented.

To learn more Amos can be reached at 520.577.7000.

For additional information log in and refer to RED Comp #2958.

Copper View Apartments at 2559 N Tucson Blvd. in Tucson was sold to an investment group, 2559 BBH LLC from Parker, Colorado for $1.025 million ($39,423 per unit). This 26-unit complex is a mixture of one- and two-bedroom units in a 15,502-square-foot building on a 29,544-square-foot lot in Central Tucson submarket.

Tony Reed with Long Realty of Tucson represented the seller, DLG Copper View LLC of Tucson (John De Lorenzo, manager) who bought the property in 2013. The investor was represented by Johanna Roberts also with Long Realty of Tucson.

To learn more Reed can be reached at 520.577-7400 and Roberts can be contacted at 520.404.8352.

For additional information see RED Comp #1311 for 2013 sale and #2962.

During the month of May, the Northwest submarket had 188 total platted lot sales, the southern submarket had 37-SFR lots and in the southeast there were 55 tentative lots, totaling 280 lots for the month.

NORTHWEST SUBMARKET

Meritage Homes of Arizona (Briana Rader, acquisitions) has purchased 120-platted lots at the southwest corner of La Cholla and Naranja in Oro Valley for $5.82 million ($48,500 per lot). The final plat was approved on May 6 for 55’ and 70’ wide lots being called The Estates at Capella, located adjacent to Ironwood High School. The unique property will incorporate the natural arroyos into the corners of the subdivision and incorporates natural site landscaping into the plan.

The seller, La Cholla 331 Property LLC of Tucson (Herbert Kai, manager) was represented by Greg Wexler with Wexler & Associates in Tucson. The buyer was self-represented in the transaction.

To learn more Wexler can be contacted at 520.744.8500 x 101. See also RED Comp #2934.

Pulte Home Corporation bought 68-platted lots in Dove Mountain for $2.054 million ($30,206 per lot) for the next phase of the Del Webb at Dove Mountain Active Community in Marana. Pulte has acquired 265-lots of this 650-lot rolling option of 208 acres here. The Del Webb at Dove Mountain Community is located southwest of the Ritz Carlton Resort off Dove Mountain Blvd and reportedly consists of a mixture of 40′, 50′ and 60′ lots.

Cottonwood Properties through affiliate, DM Phase IV Investments LLC (David Mehl, CEO) was the seller and represented by Bob Hadd of the Hadd Company in Oro Valley.

To learn more Hadd should be reached at 520.403.2812. For additional information see RED Comp #2941.

SOUTHERN SUBMARKET

Richmond American (Jim Gaulin, Director of Land Acquisitions) acquired 37-SFR lots for $1.26 million ($34,000 per lot) at Los Arroyos in Sahuarita, the southern submarket of Tucson. Los Arroyos is a 503-lot subdivision. The transaction included 70’x 115’ and 40’x 115’ lots. The seller, Kaufman Capital of El Segundo, Calif was represented by Brian Rosella with DTZ in Phoenix. There were no options involved.

To learn more Rosella can be reached at 602.224.4468. For additional details see RED Comp #2885.

SOUTHEAST SUBMARKET

Crown West Realty (Dean Wingert, VP) bought 47-acres at Santa Rita Ranch III in Vail from Arizona Equity (Eric Abrams, managing member) for $220,000 for development of 55-tentative lots ($4,000 per lot). The property sold with a tentative plat submitted but unapproved for (55) 70-foot lots. This is the second and final takedown of an option agreement between buyer and seller that started in 2013. In phase 1, Crown West has platted 275-lots, 50 ft. / 60 ft. by 110 ft. lots, for a total of 330 lots being developed her by Crown West.

The area has been designated by Pima County as a prime growth area, as Tucson continues to expand. Via Interstate 10, Santa Rita Ranch MPC is approximately 15-30 minutes from Tucson International Airport, Downtown Tucson, the University of Arizona, the U of A Science & Technology Park and Raytheon. Future residents of Santa Rita Ranch III will send their children to schools within the Vail School System, the highest ranked school district in the Tucson M.S.A.

There were no brokers involved in this transaction. For additional information see RED Comps # 1612 and #2887.

As revitalization of Downtown Tucson continues, we are beginning to see some revitalization spill over into a Tucson midtown area that involves an exciting luxury infill project. Potter Place LLC, a group of local investors formed by Miramonte Homes of Tucson, recently purchased 3 acres from the Arizona Inn Company for $1.35 million ($10.33 PSF) for an infill project of luxury homes in midtown Tucson.

Walkability when a reality and not just a euphemism for having Starbucks on the corner, is indeed a valuable commodity. It means that people can live in a location within the inner city that gains in value from its real-life proximity, time- and aggravation-saving through its nearness to things, people and urban attractions that draw people to them. All the reasons Downtown Tucson was revitalized in the first place and what we have all been waiting to see for so long.

The Potter Place infill project promises to be just that kind of walkable upscale, luxury development. Located across from the historic Arizona Inn, one of the most beautiful properties in Tucson, within walking distance to UMC and the modern streetcar with all that Downtown Tucson has to offer, this project would never have been conceived of prior to a few years ago.

The developer purchased the property for land value and plans to demolish the dilapidated (circa 1930) buildings that were left vacant for 25 years. Once removed, 11 detached semi-custom SFRs are to be constructed on the site. Final design for the project is still under development and pending plat approval, but so far we know that it is like nothing Miramonte has done before. Great effort is being taken to keep the property’s mature landscaping that makes it invisible to the street behind an Oleander wall. Each home will be single story and range in size from 2,600- to 3,000-square-feet on 8,000-square-foot lots. Keeping with the Mission Revival Style associated to the historic Arizona Inn, the project promises high end luxury. Home prices are to range from $800,000 to $1 million, depending on amenities; this is not your typical Tucson neighborhood.

But developers believe the time is right for such an upscale urban neighborhood in Tucson. We spoke with one of the partners, Bob Gugino, who said, “We’re excited about this project and expect it to set a new standard for infill development in Tucson. There is no other place for people to buy new, high-end semi-custom luxury homes within the City, and many people are interested in urban living near our downtown for many reasons.”

“There is definitely something to be said for being within walking distance to the streetcar and minutes to get downtown, without having to park, to maybe just get an ice cream at The Hub or to  have dinner and a show,” Gugino continued. “Many of us came from cities where we could walk or take public transportation everywhere and would love to experience some of that city-style living here.”

This project is located between Blenman/Elm and Catalina historic neighborhoods, two beautiful upscale, older neighborhoods. The option of buying new construction with the maintenance of an older home is not an unreasonable notion for many.

By building all 11 homes at the same time, and not staggering the construction in stages, the impact to the neighborhood will be minimized. Construction is to start by the end of this year, with a Q4 2016 completion goal.

Jose Ceja of EXA Architects in Tucson is lead architect for this fresh new project,  the first to reach beyond the Rio Nuevo District and Downtown, opening opportunities for a larger city revitalization that brings with it access to the all the amenities we want. Infills don’t get more exciting than this one! We’ll do our best to keep our readers informed of its progress.

For additional information on this sale log in to see RED Comp #2897.