Colorado Investor Expands Arizona Portfolio with Multifamily Property

Phoenix,  Arizona –  A Colorado investor has purchased the Raintree apartment community at 6450 E. Golf Links Rd. for $12.475 million ($34,272 per unit).  The company acquired the property as an expansion of its existing Arizona real estate portfolio.

“This property offers the abundance of on-site amenities that today’s tenants are seeking,” says Trevor Koskovich, senior vice president with Colliers International in Greater Phoenix.  “The quality of the property and its incredible location near Davis-Monthan Air Force Base position the asset for outstanding appreciation in value.”

Colorado-based SPL Real Estate and Management Company purchased the community from Summit Raintree, LLC, a Delaware limited liability company.  Koskovich, Bill Hahn and Jesse Hudson of Colliers International in Greater Phoenix handled the sale transaction.

Raintree was built in 1983 and was 96 percent occupied at the time of the sale.  Situated on 10.18 acres of land, the community features 20 two-story buildings of apartment homes.  The property contains 364 units ranging from 327-square-foot studios to 928-square-foot two-bedroom apartments.  Raintree offers a total of 145,456 square feet of space.

The gated community provides residents with a swimming pool and spa, fitness center, basketball court, sand volleyball, racquetball court, dog park, jogging track, television lounge and 24-hour laundry facility.    Apartment units feature walk-in closets, pantry, vaulted ceilings in upper units and dishwashers.

Raintree is located in a popular area of Tucson, just north of Davis-Monthan Air Force Base.  The area features a variety of shopping destinations and is surrounded by strong elementary schools and higher education institutions.  Comcast recently announced the future hiring of 1,175 employees for its call center, just 20 minutes from Raintree.

To learn more see RED Comp #5020.

TUCSON, Arizona — As we look back over the 782 commercial transactions to-date for Tucson in 2016, with the help of our RED Comps database, the ‘Deal of the Year’ stands out as being the highest retail sale of the “trophy asset” Wilmot Plaza. Purchased in September 2016, by DSW Wilmot Plaza LP, an Arizona-based investment group DESCO Southwest, managing director Michael Sarabia along with partner James Hardman believe strongly in the fundamentals of this recently redeveloped 139,000-square-foot multi-building neighborhood center.

The center has a long history of being a landmark retail center in the central-east corridor of Tucson. The substantial visibility from both Broadway and Wilmot roads, access to this major arterial intersection, and close proximity to Park Mall (General Growth Properties) and the St. Joseph’s Hospital and medical office complex all benefit the center.

Wilmot Plaza sold for $47.3 Million ($340 PSF) from BP Wilmot Plaza (Don Bourn, manager) a Bourn Companies’ destination retail re-development. Bourn had fully redeveloped the center with an all-star tenant line up including:  TJ Maxx, Dicks Sporting Goods, Nordstrom Rack, Payless Shoes and AT&T and sold fully leased.

Bourn had acquired the property in July 2013 for $6.2 million, seeing the potential when it was still 60-70% vacant. Renovations began in 2014, razing the north half of Wilmot Plaza, at the northeast corner, and completely remodeling the buildings that weren’t razed while tenants remained open. Through redevelopment efforts Bourn transformed the 10-acre property into a first-class shopping center.

Built in 1956, the property consists of relatively large buildings grouped along the northern and eastern edges of the site. The Tucson General Plan defines the area as a regional commercial activity center that includes Park Place Mall and several shopping centers along Broadway Blvd, a high-density office and residential node northwest of the intersection and the St. Joseph’s Hospital and medical office complex. The General Plan also encourages redevelopment and expansion of strip commercial development to improve traffic flow, pedestrian circulation and safety, and streetscape quality, providing primary access from arterial streets away from residential uses.

Toufic Abi-Aad (CFO Bourn Companies) handled the disposition for the seller, and Michael Sarabia and James Hardman (DESCO Southwest) represented DSW Wilmot Plaza LP. Tim Storey with Newmark Capital in Phoenix assisted with financing for the acquisition.

The acquisition reflects DESCO’s continued investment strategy in the Arizona marketplace where Michael Sarabia, managing member of DSW Wilmot Plaza LP and DESCO Southwest, has been an active participant for the past 16 years. Sarabia stated at time of sale, “When looking at submarkets we take into consideration several mitigating factors such as household income, growing population, quality of building, tenant mix, term of leases and strategic location of asset.  Don Bourn and his team have been able to source high profile sites and develop signature projects in irreplaceable locations, we are pleased to be able to work with them on this acquisition.”

The acquisition is part of DESCO’s continued investment strategy in the Arizona region, a market where they own/manage over 500,000-square-feet of retail and office.

Congratulations to DESCO Southwest and Bourn Companies!

For more information, Sarabia and Hardman should be reached at 520.297.8929 and Abi-Aad can be contacted at 520.323.1005. Storey can be called at 602.374.7854.

To learn more, see RED Comp #4163.

TUCSON, AZ — An experienced investor, SVP Holdings of Oro Valley (Vishal Patel, manager) purchased the Mark Hall Apartments, a 29- unit apartment building located 3 blocks from the University of Arizona sold for $2 million ($68,965 per unit) to be repurposed into student housing, located at 814 E 9^th Street in Tucson, AZ.

Apartment complexes in this area rarely come on the market. Well-built of brick construction and under rented (by approximately 20%-30%) the property is in a prime location between downtown and the U of A, and only 4 blocks to 4th Ave. shops and restaurants.

The unit mix consists of twenty-four 850-950 square-foot 2 bedroom units, two studios, two-one-bedroom units and one 1,075 square foot three bedroom / two bath units.

Property amenities include a community pool & owned laundry. Units are individually metered for gas & elec. Property is master metered for water and has two central hot water boilers.

Jade Bossert with Tierra Antigua Realty handled the transaction for both buyer and seller, a private Trust in Tucson.

The Bank of Tucson handled the financing.

For more information, Bossert can be reached at 520.544.2335.

To learn more, see RED Comp #4201.